According to the Financial Services Regulatory Authority of Ontario (FSRA), auto insurance customers in the province were eligible to receive nearly $1 billion in premium relief in response to COVID-19.
The figure represents an increase of over $300 million (45%) since the regulator last reported on auto insurers’ premium relief efforts in late May.
FSRA also said that the insurance premium information of the province’s 13 largest insurers is being shared publicly to provide greater transparency and inform consumers.
“Our government took immediate action to make the required regulatory changes so that consumers could benefit from the change in driving behaviour during the pandemic,” said Ontario finance minister Rod Phillips. “We made it very clear to insurers that drivers deserved more, which resulted in auto insurers making available almost $1 billion in relief for Ontario drivers.”
Phillips also said that he has asked the FSRA to continue monitoring insurers and how they are providing premium relief to ensure that their customers’ needs are met as the pandemic situation evolves.
A statement from the FSRA noted that the nearly $1 billion in consumer relief is equivalent to 7.1% of total annual auto insurance premiums. The premium relief measures were made available to more than 90% of the 6.6 million auto insurance customers in Ontario, representing an increase of over 1.5 million consumers since April.
“Our focus is on the fair treatment of consumers and helping them make choices by sharing information and resources,” said FSRA executive vice-president of auto/insurance products Tim Bzowey. “We will continue to monitor whether the promised relief is provided and evaluate whether insurers’ rates remain just and reasonable.”
