Large auto rate hikes approved in Q1

SOME OF the largest auto insurers in Ontario had significant rate increases approved in the latest round of changes reported by the province’s regulator.

Twenty-three insurers, representing roughly 57% of the market based on premium volume, had rates approved by the Financial Services Commission of Ontario in the first quarter of 2019.

The combined approved rates represent an average 2.7% increase over the previous quarter when applied across the total market.  This follows an average increase of 3.35% for rate changes approved in the fourth quarter of 2018 compared to the period before.

The first-quarter rate changes include a 9.92% increase for Desjardins-owned Certas Home and Auto Insurance Co., which includes business formerly underwritten by State Farm Canada and represented 8.53% of the market in 2017 (the latest year available for the FSCO figures).

An overall increase of 11.4% was approved for Economical Mutual Insurance Co., which held a 6.29% market share in 2017. A 5% increase was approved for Co-operators General Insurance, which had a 5% market share, and an increase of 7.62% was granted for Travelers-owned Dominion of Canada General, which had a 4.02% share.

Wawanesa Mutual, with a 3.35% market share, had a 4.98% average increase approved in the quarter. And Royal & SunAlliance Insurance Co. (1.07% market share) had a 6.46% increase approved.

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