Ontario’s New Insurance Regulator FSRA
As of June 8, 2019, the province of Ontario has its new property and casualty insurance regulator running the show – the Financial Services Regulatory Authority of Ontario (FSRA). The FSRA took over duties from the Financial Services Commission of Ontario (FSCO) as well as the Deposit Insurance Corporation of Ontario (DICO). This shift to the FSRA was one of the recommendations of the 2017 Marshall report on auto reform.
Here are some facts and information to help you understand the shift…
What you need to know about the FSRA take over
~ It is hoped that the new regulator will be more flexible than the FSCO and that it will be easier for insurance providers to get auto insurance rate changes approved.
~ It is also hoped that the FSRA will be in a better position to address trends in the insurance industry, as well as shifting consumer needs. The decision to move away from the FSCO stemmed in part from its lack of resources, governance structure and accountability to actually effect the changes required to fulfill its mandates.
~ One of the FSRA’s key mandates is to address fraud and deception, something seen to be at the root of the ever rising auto insurance rates in the province. (For more on this, check out this blog post: Why Is Ontario Car Insurance so Expensive Relative to Other Provinces?)
~ The FSRA is self- funded and is overseen by an independent board of experts.
~ The FSRA is not just taking over insurance regulation duties from the FSCO. Nearly all financial services in Ontario, such as pensions and credit unions to name a few, now fall under the jurisdiction of the FSRA.
For more information about the shift to the FSRA, check out: FSRA takes over Ontario insurance oversight from FSCO – Canadian Underwriter
It will be interesting to see how this change in auto insurance regulation in Ontario will play out. If you have any questions about auto insurance in Ontario, get in touch with one of the insurance specialists on our team. Or go here to get an auto insurance quote online.
Image source: FreeDigitalPhotos.net | Vichaya Kiatying-Angsulee