FSRA introduces auto insurance supervision plan
FSRA introduces auto insurance supervision plan | Insurance Business Canada
Motor & Fleet
FSRA introduces auto insurance supervision plan
It will focus on key three areas
Motor & Fleet
By
Mika Pangilinan
Ontario’s financial services regulator has released its first auto insurance supervision plan as part of its efforts to ensure the fair treatment of vehicle owners and lessees in the province.
The new plan from the Financial Services Regulatory Authority of Ontario (FSRA) is slated to span 15 months from January 2024 and identifies three key domains of supervision for auto insurers:
Sales and distribution
Underwriting
Policy servicing
The focus on sales distribution will ensure that drivers have access to competitive quotes and clear consumer information, according to a news release issued by the regulator. Meanwhile, supervisory action for underwriting will target potential discriminatory practices that might impact higher-risk customers.
As for policy servicing, FSRA said it will focus on ensuring transparency in claims processing and conducting reviews on the frequency and nature of complaints lodged against insurers.
Insurers will be selected for examination under the plan following a risk-based approach. The outcomes will also be shared by the regulator in order to “promote industry compliance with regulatory requirements,” as well as inform future supervision programs.
“Executing this plan is crucial in ensuring the fair treatment of consumers, the continued success of Ontario’s auto insurance industry, and FSRA’s commitment to regulatory excellence,” said Huston Loke, executive vice president, market conduct.
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