NEWS

November 23, 2023

Thompson's News article: CADRI complains to FSRA about pace of auto review.

 A group of direct insurers has called on the Financial Services Regulatory Authority of Ontario to pick up the pace with its ongoing review of auto insurance rate regulation.

Commenting on the regulator’s proposed statement of priorities for 2024-25, the Canadian Association of Direct Relationship Insurers said the combined uncertainty of the strategic review’s outcome and the potential for increased regulatory interaction restrict insurers’ ability to plan, mitigate risks and balance their customers’ needs with affordability issues.

“We have concerns about the progress of this review and seek — sooner rather than later — clarity on its proposed outcomes including guidance on fairness and a supervisory framework that moves beyond rates and underwriting into governance,” CADRI CEO Geoffrey Beechey said in the association’s response.

 CADRI also cited an issue which was not included in the statement of priorities: a need for the FSRA’s leadership nationally.
The direct insurers are calling for the Ontario regulator to start a national conversation to overcome what they say is a fragmented approach to insurance regulation across the country.

They noted that the FSRA’s leadership at pan-Canadian regulatory groups such as the Canadian Council of Insurance Regulators and the Canadian Insurance Services Regulatory Organizations is well-respected.

 Mr. Beechey said that in the absence of harmonization, regulators should be comfortable relying on the approvals and licences issued by their peers across the country.