November 1, 2002 by Canadian Underwriter
Applications by Ontario private passenger auto insurers for rate increases in the third quarter 2002 were up 8.33% on average, compared with average increases of 5.9% in the second quarter.
At September 30, 2002, the average cost of auto insurance was 11.99% higher than at the end of the third quarter 2001, adds the Financial Services Commission of Ontario (FSCO), the body which approves rate applications. Compared with November 1, 1996, just prior to the introduction of Bill 59, intended to stabilize auto rates, premiums are up 6.9%.
Among the largest average increases are Belair Direct (part of ING) at 15.4%, ING Novex at 15.4%, Optimum Frontier at 15.03%, Coachman at 14%, Kingsway General at 13.8%, TD General at 13.5% and RBC General at 13.2%.
Many of the smaller increases come from companies writing the smallest marketshare, although Pilot, which last year had 5% of the market, had no rate increase for the quarter.