FSCO approves average auto rate increase of 2.57% in 2008 Q4

The Financial Services Commission of Ontario (FSCO) approved automobile rate increases averaging 2.57% in 2008 Q4, based on the entire market.In 2008 Q4, for 69.37% of the market that had rate changes approved, the average rate change was 3.71% when weighted by market share.The rate changes approved in 2008 averaged to an increase of 5.59%, compared to 0.55% in 2007, a decrease of 2.43% in 2006, and a decrease of 10.60% in 2005.Increases sought by the five auto insurers with the greatest Ontario market share among the 2008 Q4 FSCO applicants included: –    State Farm Mutual Automobile Insurance Company (11.72% market share) received approval for a 6.5% rate increase;-    ING Insurance Company of Canada (7.91% market share) did not increase or decrease rates;-    Economical Mutual Insurance Company (6.39% market share) received approval for a 4.29% increase;-    Pilot Insurance Company (5.59% market share) received approval for a 9.2% increase; and-    Dominion of Canada General Insurance Company (4.68% of market share) received approval for a 3.94% increase.Three applications for rate decreases were approved in the quarter. They include Belair Insurance Company Inc. (-2.57%); Federated Insurance Company of Canada (-2.37%); and Nordic Insurance Company of Canada (-2.56%).