Ontario auto rate decreases slowing down in 2006 1Q

The Financial Services Commission of Ontario (FSCO) approved Ontario private passenger auto insurance rates decreases that averaged -.071% during the first quarter of 2006.
In contrast, the average rate changes approved for the first, second, third and fourth quarters of 2005 were -1.12% (representing 7.50% of the market), -1.62% (representing 45.79% of the market), -1.62% (representing 61.82% of the market), and -2.56% (representing 23.77% of the market), respectively.
In 2004, rate changes approved for the entire market averaged -10.60%. For 2005, approved rates declined by 2.43% for the entire market. The combined decline in approved rates for 2004, 2005 and the first quarter of 2006 is 13.32%.
The 2006 1Q averages reflect 41.09% of the Ontario market that had rate changes approved. They are weighted according to market share.
Some highlights of FSCO’s quarterly report:
ING Insurance Company of Canada, which represents the largest 2004 Ontario market share of the companies that requested rate changes, decreased its rates by 3.49%.
Allstate Insurance Company of Canada, representing a 2004 Ontario market share of 3.27%, asked for and received an approved rate decrease of 2,8%.
Royal & Sun Alliance Company reported no change to its auto rate in the first quarter of 2006. Royal had a 2004 Ontario market share of 1.8%
Aviva Insurance Company of Canada, with a 2004 Ontario market share of 1.54%, received an approved rate increase of 1.99%
Axa Insurance Canada received approval for a rate decrease of 0.5%. In 2004, the company represented a 2.05% share of the Ontario market.
“The rate changes approved in the first quarter of 2006 become effective in the first quarter of 2006 or later, for renewal business, and include decreases to some drivers under 25 years of age,” FSCO notes. “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.”