Ontario auto rates decrease during 3Q

Ontario private passenger auto insurance approved rates decreased during the third quarter of 2005, the Financial Services Commission of Ontario (FSCO) has reported.

“The rate changes posted 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,” FSCO says on its Web site. “FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.”

During the third quarter of 2005 (between July 1, 2005 to September 30, 2005), for the 61.82% of the market that had rate changes approved, the average rate change decreased 1.62% when weighted by market share.

Overall, the combined decline in approved rates for 2004 and the first three quarters of 2005 is 12.42%.

FSCO’s report includes a list of approved auto rate decreases for individual companies. Among them, the following companies – each of which controlled 3% or more of the market share in 2004 – reported the following, third-quarter decreases in their private passenger auto rates:

* Allstate Insurance Company of Canada (2.48% decrease)

* ING Insurance Company of Canada (1.2% decrease)

* Personal Insurance Company (2.4% decrease)

* Pilot Insurance Company (1.93% decrease)

* Security National Insurance Company (1.4% decrease)

* Traders General Insurance Company (1.93% decrease).