The Financial Services Regulatory Authority of Ontario (FSRA) has confirmed that insurers operating in the province have provided auto insurance customers with $685 million in premium relief through rebates and rate reductions.
The regulator also said that the province’s 4.6 million policyholders should get a reduction in premiums of around $150 on average.
“Of the 14 companies that represent 97% of insurers we now have 10 of them that are providing rebates and we are getting $685 million going back to consumers. I’d call that a good start,” provincial finance minister Rod Phillips told CTV News.
Phillips also gave a breakdown of the $685 million insurance premium relief, noting that in March and April there was insurance premium relief of $220 million. He added that there should be another $465 million in future premium relief.
The finance minister warned that companies that do not offer any premium relief could face sanctions.
“Some are participating and taking care of their customers and some are not,” said Phillips. “We are not taking anything off the table. We want to see action and we’ve seen some.”
In April, the provincial government of Ontario made changes to insurance premium rebate regulations, allowing insurers to more easily offer financial relief to customers in light of the COVID-19 pandemic. With the changes, the FSRA released a guidance advisory to help insurers and customers understand what constitutes fair premium relief measures.
