January 17, 2006 by Canadian Underwriter
The Financial Services Commission of Ontario (FSCO) has approved an average fourth-quarter rate decrease of 2.56% for 12 companies representing almost a quarter of the Ontario private passenger auto insurance market.
Average rate decreases for the first, second, and third quarters were 1.12% (representing 7.5% of the market), 1.62% (representing 45.79% of the market) and 1.62% (representing 61.82% of the market), respectively.
Rate changes approved for the entire market averaged a decrease of 10.6% in 2004, FSCO announced recently on their Web site. In 2005, approved rates declined by 2.43% for the entire market.
“The rate changes posted reflect cost savings measures arising from recent reforms to the automobile insurance system, which are being passed on to consumers in the form of lower rates,” FSCO posted on its Web site.
“The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.”
State Farm Mutual Automobile Insurance Company, representing a market share of 10.62%, led the way with an approved rate decrease of 4.2%.
Other approved rate decreases, listed in order of a company’s market share (highest to lowest), were:
– Dominion of Canada General Insurance Company – 1.02% decrease
– Royal & SunAlliance Insurance Company 0.36% decrease
– Farm Mutual Reinsurance Plan 2.8% decrease
– CAA Insurance Company (Ontario) 0.70% decrease
– Western Assurance Company 1.0% decrease
– Western Assurance Company (Implentation of CLEAR update) no decrease or increase.
– Pembridge Insurance Company Ltd. 1.24% decrease
– Motors Insurance Corporation 1.6% decrease
– Farmers’ Mutual Insurance Company (Lindsay) 2.3% decrease
– CUMIS General Insurance Company 4% decrease
– Ascentus Insurance Ltd. 0.19% decrease