2015 Auto Insurance Reform Rate and Risk Classification Filings and Certificate for Underwriting Rules, and Endorsement Forms and Rules

No. A-07/15
Property & Casualty
– Auto
To the attention of all insurance companies licensed to transact automobile insurance in Ontario

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This bulletin outlines the requirements of the Financial Services Commission of Ontario (FSCO) for the submission by insurers of automobile insurance rate and risk classification filings reflecting the recent automobile insurance reforms.It also outlines the requirements for filing a certificate in respect of underwriting rules, and for filing of amended endorsement forms. The filings (“Reform” filings) are made necessary by the legislative and regulatory changes recently enacted by the government.
All insurers are advised that until further notice FSCO will review Reform filings only; other filings will be attended to once the review of the Reform filings has been completed.
Private Passenger Automobile Insurance Rate Filings
As a result of the reforms, and in accordance with the Automobile Insurance Rate Stabilization Act, 2003, (AIRSA), the Superintendent will be requiring each insurer writing non-fleet Private Passenger Automobile (PPA) insurance to submit to FSCO a rate and risk classification filing in accordance with the Private Passenger Automobile 2015 Reform Rate Filing Guidelines not later than October 30, 2015.

Other than Private Passenger Automobile Insurance Rate Filings

Any insurers writing Other Than PPA categories of auto insurance on a non-fleet basis must submit to FSCO a rate and risk classification system filing, in accordance with sections 410 and 415 of the Insurance Act using the Other Than Private Passenger Automobile 2015 Reform Rate Filing Guidelines not later than November 20, 2015. 


Benchmark estimates of the cost impact of the Reforms and their impact on rates have been determined by FSCO. These benchmarks include consideration of key changes made by the Ontario Government that impact automobile insurance. These benchmark factors are included with the Private Passenger Automobile 2015 Reform Rate Filing Guidelines. Insurers using the benchmark factors will be in a better position to have their filings reviewed on an expedited basis.

Certificate for Underwriting Rules and Endorsements

As a result of the new prohibition on use of minor accidents as set out in Regulation 664, insurers will need to amend their handling of minor accidents for purposes of underwriting (declination) of risks as well as their claims forgiveness endorsement rates and rules. Insurers are required to confirm their treatment of minor accidents that occur on after of June 1, 2016 by completing and sending the attached Certificate by October 20, 2015 by email to the following address ratesandclass@fsco.gov.on.ca.
Insurers are further required to review their Accident Forgiveness Endorsement Forms to determine if amendments are needed as a result of the changes to Regulation 664 and file those forms with FSCO through ARCTICS by December 1, 2015, in accordance with the Filing Guidelines for Automobile Insurance Forms.
As the above Certificate addresses the changes to Regulation 664 on an interim basis, insurers are not required to amend their underwriting rules and endorsement rates/rules through a filing based on the Filing Guidelines for Underwriting Rules and Filing Guidelines for Proposed Revisions to Underwriting Rules and Rates for Endorsements until April 1, 2016.

Filing Guidelines and Rate Profiles

The Filing Guidelines have been developed with the assistance of the Rating and Underwriting Technical Advisory Committee, an industry advisory group. 
In addition, Insurance Bureau of Canada and the Canadian Auto Insurance Rate Regulators Association worked together to standardize the rate profiles used in the Filing Guidelines. The harmonized rate profiles will simplify filing requirements. Insurers must submit the profiles to FSCO using Excel spreadsheets that are provided by FSCO.


FSCO's web-based ARCTICS system is being updated to reflect the Filing Guidelines.

FSCO Contacts

If you have any questions about the filing requirements, please contact your Rate Analyst or Team Lead in FSCO's Automobile Insurance Division.
Brian Mills
Chief Executive Officer 
and Superintendent of Financial Services
September 11, 2015


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