Oct. 6, 2025 — Ontario’s financial services regulator is overhauling how it supervises auto insurance by introducing a new model designed to improve fairness, transparency and consumer protection while giving insurers more room to innovate.

The Financial Services Regulatory Authority of Ontario said earlier this fall that it has finalized its automobile insurance rating and underwriting guidance, which will replace the province’s long-standing prescriptive rules with a more principle-based, outcome-focused approach.

An effective date for the new model has not been determined.

With the new framework, FSRA has also defined what fair treatment of consumers involves for auto insurance. The model is designed to ensure that premiums are actuarially justified and reflect a driver’s actual risk, protecting consumers from unfair discrimination or bias in rating and underwriting, and requiring clear, timely communication so policyholders can make informed decisions.

The new model also focuses on access. Practices that could limit the ability of Ontarians to obtain required auto coverage will not be permitted.

“This new approach is about instilling greater fairness and transparency into auto insurance while creating space for insurers to modernize and respond to consumer needs,” the regulator said.

A central feature is a new accreditation process for insurers. Insurers that can demonstrate they are consistently delivering fair consumer outcomes will qualify for fast-track filing privileges, allowing them to adjust rates more quickly in response to claims trends.

Insurers that do not pursue or achieve accreditation will continue to file under a traditional approval process, with ongoing FSRA supervision. Accreditation can be revoked if standards are not maintained.

The new framework also outlines new filing requirements for both accredited and non-accredited insurers, with an emphasis on actuarial justification, data governance, model risk management and oversight controls. The regulator said this will reduce regulatory lag, align premiums more closely with claims costs and improve consumer outcomes over time.

The updated model follows extensive consultation with industry on FSRA’s draft statement of priorities and is aligned with international fair-treatment principles. FSRA said it will continue to work with insurers as they transition to the new framework before it takes effect. 

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