Canadian Underwriter

Auto insurance reform among FSCO priorities

April 17, 2003   by Canadian Underwriter

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With the release of the Financial Services Commission of Ontario’s (FSCO) “statement of priorities” for consultation, insurers can take heart that among the list is to “increase enforcement addressing abuse in the automobile insurance system”.
With the passage of Bill-198 and its impending implementation through regulation, auto insurance issues are high on the province’s agenda, and sections of the FSCO statement are clearly aimed towards this. Paralegals will also face a regulatory process, according to FSCO plans. And the dispute resolution system will be updated to “address marketplace pressures and legislative/regulatory changes”.
Another priority proposed is the enhanced monitoring and evaluation of the designated assessment centers (DAC) system. FSCO plans to update and develop new DAC guidelines, and implement a self-audit program for DACs, which has been in the pilot project stage. It also wants to covert DAC reporting to a web-based system.
The priorities also include a review of auto insurance risk classification and underwriting rules, and an update of the Automobile Statistical Plan and Ontario Statutory Accident Benefits Statistical Plan. FSCO hopes to implement the Automated Rate and Classification Technical Information Communication System (ARCTICS) for electronic filing, which has been in the pilot project stage.
And the new Auto Insurance Standard Invoice (AISI) will be a priority, with work towards a database, something the Insurance Bureau of Canada has sought.
Over the past year, FSCO says many initiatives have been accomplished, many of which were geared towards the upcoming implementation of Bill-198.
FSCO will be receiving feedback on the draft statement of priorities until June 6, 2003.

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