CADRI unclear on FSRA accreditation guideline (Copyright Thompson’s World Insurance News. Not to be redistributed by individual recipients.)
The Financial Services Regulatory Authority of Ontario is advancing its new Automobile Insurance Rating and Underwriting Supervision Guidance, but insurers say key details remain unclear.
In its submission to FSRA on Chapter 4 of the proposed guidance, Geoffrey Beechey, chair and CEO for the Canadian Association of Direct Relationship Insurers, said the association supports.
FSRA’s insurer accreditation program, which offers key benefits, including streamlined filings, faster rate change approvals and the retirement of outdated rules.
“The promise of a one business day turnaround for insurers who have accreditation and fast-track processes for rate changes is transformational,” Mr. Beechey said.
These comments are further to comments the association made in November on Chapters 1-3 of the proposed guidance.
FSRA’s proposed accreditation system allows insurers to voluntarily demonstrate adherence to ‘fair consumer outcomes’ and sound governance standards.
CADRI supports accreditation but argues it must deliver clear advantages to justify the investment. It calls for streamlined filings in at least 90% of cases rather than the proposed 50%.
The association also opposes using profitability as a fairness measure, warning it could deter participation and conflict with principles-based regulation.
CADRI said that while Chapter 4 is a step forward, it lacks critical details on fast-track filing criteria and documentation, which FSRA indicates will be housed in a filing manual. Chapter 4 frequently references the filing manual as complementary, yet the industry has not had an opportunity to review it.
“An absence of understanding about the filing manual creates some uncertainty for the insurance industry. For instance, we expect that the eligibility criteria for the fast-track filing process, which is likely set out in the filing manual, would reflect the comprehensiveness of FSRA’s guidance, including Chapter 2 on operations, controls and governance.”
February 10, 2025 CADRI approves FSRA’s moves to fast-track accreditation for qualifying insurers and streamline rate filing processes
