Echelon receives approval for a 7% rate hike

Echelon General Insurance Company, a subsidiary of EGI Financial Holdings Inc., received approval for a 7% rate increase for its Ontario personal auto business.The Financial Services Commission of Ontario (FSCO) approved the rate increase, which will apply to new business from Nov. 1, 2010 and for renewal business from Dec. 1, 2010. The rate increase will largely offset an earlier rate decrease, which became effective on Sept. 1, 2010. The earlier decrease was required under Ontario auto insurance reforms, an Echelon release says.