October 24, 2006 by Canadian Underwriter
Ontario has approved an average rate decrease of 0.46% for private passenger auto insurance during the third quarter of 2006, the Financial Services Commission of Ontario (FSCO) has reported.
Almost 80% of the Ontario market had rate changes approved during the third quarter of 2006. The rate decrease during 2006 Q3 represents the smallest average quarterly decrease of the year.
By contrast, “the average rate change approved for the first quarter of 2006 was -0.71%, when weighted by 2004 market share (representing 41.09% of the market), and for the second quarter of 2006, was -1.42%, when weighted by 2005 market share (representing 46.67% of the market),” FSCO noted in a posting on its Web site.
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 change in approved rates for 2004, 2005 and the first, second and third quarters of 2006 is -14.35%.
The rate changes approved in the third quarter of 2006 become effective in the third quarter of 2006 or later for renewal business.
Notable rate changes in 2006 Q3 include the Farmers’ Mutual Insurance Company (Lindsay) (a 6.5% rate decrease), The Dominion of Canada General Insurance Company (a 0.52% decrease), the Farm Mutual Reinsurance Plan Inc. (a 3.7% decrease), the Personal Insurance Company (a 2.1% decrease), RBC General Insurance Company (a 1.03% decrease) and The Wawanesa Mutual Insurance Company (a 1.7% decrease).
Several companies reported no rate changes in 2006 Q3, including the ING Insurance Company of Canada, Kingsway General Insurance Company, Royal & SunAlliance Insurance Company, State Farm Mutual Automobile Insurance Company, TD Home and Auto Insurance Company, York Fire & Casualty Insurance Company and Zenith Insurance Company.