FSCO’s Rate Approval Process
Did you know that Ontario auto insurance companies must submit proposed changes to their rates to The Financial Services Commission of Ontario (FSCO) for approval? They must provide the supporting actuarial data.
FSCO and its actuaries review this data and insurers’ assumptions regarding claims costs, expenses and investment income to ensure that, as required by law, the proposed rates are: just and reasonable, not excessive, and not going to impair a company’s long-term financial solvency.
As a result of FSCO’s review, an insurance company may be required to amend its proposed rates before the rates are approved.
Insurance companies submit their proposal to FSCO at different times. Check your auto insurance rate to make sure you’re not over-paying.