November 6, 2003 by Canadian Underwriter
Auto insurance rate increases averaging 8.22% were granted in the third quarter of 2003, says the Financial Services Commission of Ontario (FSCO), the government body which regulates pricing.
The increases happened prior to the provincial Liberals’ election win, and to the announcement that they would freeze rates in the province.
Overall, the average cost of auto insurance in Ontario was 19.43% higher by the end of September, 2003 than it was a year prior, and is 27.67 higher than in the third quarter 1996, when the previous Bill 59 was introduced.
Among the biggest increases were: Ascentus Insurance Ltd. (13.7%); Motors Insurance Corp. (13%); Belair Insurance Co. Inc. (12%); and Western Assurance Co. (11.9%).
Also, the Facility Association, the industry’s pool for high-risk drivers, received a 27.2% increase for its drivers, which represents 2.07% of the market. The Facility has been applying in all provinces to increase its rates as a means of ensuring it is a market of last resort, and its rates are non-competitive with the voluntary insurance market.
Only one company received a rate decrease, Scottish & York Insurance Co. Ltd., at 0.6%. Some companies received no increase, including Personal Insurance Co., Coachman Insurance Co. and Certas Direct Insurance Co.