Ontario auto rates increase marginally in 2006 Q4

Approved Ontario auto insurance rates for 2006 Q4 increased ever so slightly, FSCO reported in a posting on its Web site.”Based on the entire market, the average rate change for the fourth quarter of 2006 was +0.05%,” FSCO noted in its posting.Ontario auto rate changes have steadily declined between 2004-06, although the pace of the decline has slowed somewhat over the past two years.For example, rate changes approved for the entire market in 2004 averaged a decrease of 10.6%. For 2005, approved rates declined by 2.43% for the entire market, and for 2006, approved rates declined by 1.27%. The combined change in approved rates in 2004-06 is a decrease of 14.3%. During 2006 Q4 (for the 28.51% of the market that had rate changes approved), the average rate change was an increase of 0.16% when weighted by 2005 market share.The average rate change approved in 2006 Q1 was a 0.71% decrease, when weighted by 2004 market share (representing 41.09% of the market). In 2006 Q2, the average rate decreased 1.42% (representing 46.67% of the market). The average rate decrease in 2006 Q3 was 0.46%, when weighted by 2005 market share (representing 79.93% of the market).In 2006 Q4, AXA Insurance (Canada), AXA Pacific Insurance Company and Sovereign General Insurance Company received approval for rate decreases of 3.4%, 3.2% and 3.9% respectively. COSECO Insurance Company received approval for a rate increase of 7.3%, while the Gore Mutual Insurance Company received approval for a 3% rate increase.