FSCO confirms 1-Q auto rate declines

The Financial Services Commission of Ontario (FSCO) says that auto insurer rate filings at the end of the first quarter of this year show an average year-on-year price drop of 7.5%. In comparison, approved auto insurance rates for the first quarter of last year rose on average by 7.8% compared with rates in effect for the same period in 2003. Notably, the average increase in first quarter rates for 2003 came in at just over 19%, FSCO observes.The auto insurance rate applications approved by FSCO during the first quarter of 2005 indicate an average decrease of 1.1%, the regulator notes. FSCO’s rate calculation is based on the renewal effective dates of the rate changes. "The rate changes [for the first quarter of 2005] reflect cost saving measures arising from recent reforms to the automobile insurance system, which are being passed on to consumers in the form of lower rates," a FSCO statement says.