Ontario budget seeks to modernize insurance regulation

Ontario plans to update how the Financial Services Commission of Ontario (FSCO) regulates the insurance industry as part of an effort to “transform public services.”

In the provincial budget tabled Mar. 27, Finance Minister Dwight Duncan said the government will “strengthen the oversight of the auto insurance system in particular” and “further enhance the effectiveness of FSCO regulation of the insurance sector.”

Specifically, the Liberals plan to review the automobile insurance dispute resolution system and give the Superintendent of Insurance new powers regarding the Unfair or Deceptive Acts or Practices regulations and rate and risk classification approvals.

The government also wants to work with insurers to explore voluntary usage-based auto insurance policies, harmonize the timing of statutory auto insurance reviews and improve solvency supervision of Ontario insurers.