FSCO approves average auto rate increase of 2.49 per cent in 2009 Q4, based on entire market

Ontario’s insurance regulator has approved a 2009 Q4 auto insurance rate increase of 2.49 per cent, based on the entire market.

In the fourth quarter of 2009, for the 55.48 per cent of the province’s auto insurance market that had rate changes approved, the average rate change was +4.49 per cent, when weighted by market share, the Financial Services Commission of Ontario (FSCO) reported.

Rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60 per cent, -2.43 per cent, -1.27 per cent, +0.55 per cent, +5.59 per cent and +8.77 per cent, respectively, for the entire market.

A sampling of 2009 Q4 rate filings in order of auto insurers with the largest 2008 market share is as follows:

• State Farm Mutual Automobile Insurance Company: No change.

• Intact Insurance Company: 3.75 per cent increase.

• Security National Insurance Company: 3 per cent increase.

• The Dominion of Canada General Insurance Company: 7.79 per cent increase.

• Unifund Assurance Company: 9.29 per cent increase.

• Traders General Insurance Company: 15 per cent increase

• The Personal Insurance Company: 0.03 per cent decrease.