FSCO approves average auto rate increase of 1.93% in 2010 Q4

Ontario’s financial regulator, the Financial Services Commission of Ontario (FSCO), approved an overall average auto insurance rate increase of 1.93% in 2010 Q4.For the 54.15% of the market that had rate changes approved in 2010 Q4, the average rate change was an increase of 3.57% when weighted by market share.Three insurers had rate decreases approved. They include:

• TD General Insurance Company (-0.28%);
• Farm Mutual Reinsurance Plan Inc. (- 0.24%); and
• Security National Insurance Company (-0.01%).

The five insurers with the highest market share had the following rate changes approved:

• State Farm Mutual Automobile Insurance Company (+ 6.44%);
• Intact Insurance Company (+2%);
• Security National Insurance Company (-0.01%);
• Personal Insurance Company (no change); and
• Allstate Insurance Company of Canada (+6.52%).

The five largest rate changes approved by FSCO include:

• York Fire & Casualty Insurance Company (+11.98%);
• Pafco Insurance Company (+10.03%);
• RBC General Insurance Company (+8.03%);
• RBC Insurance Company of Canada (+6.60%); and
• Allstate Insurance Company of Canada (+6.52%).