Ongoing auto insurance projects figure prominently in FSCO’s 2012 draft priorities

Auto insurance comprises a large chunk of the Financial Services Commission of Ontario (FSCO)’s priorities for 2012.

Certainly within the auto insurance file, FSCO has a lot of irons in the fire right now. These include steps to reduce auto insurance fraud; steps to affirm regulatory compliance with the 2010 auto insurance reforms; the development of a new evidence-based Minor Injury Treatment protocol; a new definition of catastrophic impairment; a review of the current benchmark return on equity (ROE) level and profit provisions in the rate filing process; a closed auto insurance claims study of bodily injuries; and implementing Administrative Monetary Penalties (AMPs).

FSCO’s Draft Statement of Priorities and Strategic Directions, issued in April, outlines anticipated timelines for the following priorities:

• Ontario’s Auto Insurance and Anti-Fraud Task Force is currently assessing the scope of auto insurance fraud and developing recommendations to prevent and reduce it. The task force is expected to release its final report by fall 2012.

• FSCO will be this year completing its first cycle of follow-up activities associated with the 2011 attestation on Statutory Accident Benefits Schedule controls. The annual attestation process will be reviewed with the industry and amendments made as necessary. “This review will also include additional assurance on compliance with approved rates,” FSCO notes.

• The new Minor Injury Treatment Protocol is expected to take two years. (i.e. not before 2014).

• FSCO issued a request for proposals in January 2012 for consulting services to conduct a closed auto insurance third party liability bodily injury claim study. FSCO expects to award a contract in the spring of 2012, with a completion date in winter 2013.