Despite a provincial budget promising auto insurance industry reforms, Ontario’s insurance regulator has approved a series of rate hikes.
The rate increases affect 21 insurance companies in Ontario, representing some 40% of the province’s motorists. The Financial Services Regulatory Authority approved the move, which could lead to customers’ premiums going up by about 1.6 per cent across the market.
Ontario is among the most expensive provinces in which to insure a car. During the presentation of his budget last year, then Finance Minister Vic Fedelli said the provincial insurance industry is broken and Ontarians deserved “transformative change”. Ontario’s no-fault insurance system is fraught with fraudulent claims, costing the industry about $1.3 billion annually.