Regulator Defends Use of Territories for Rating Auto Insurance
Ontario’s auto insurance regulator is allowing insurers to explore different ways to rate for territories, but it won't ban them.
Mark White, CEO of Ontario’s Financial Services Regulatory Authority (FSRA), addressed a question about territorial rating for auto insurance in the 2024 FSRA Exchange.
“FSRA recently opened a test-and-learn environment that allows insurers to examine ideas and innovate around the topic of territory rating, but why not just ban territory rating altogether?”
The discussion moderator, Globe and Mail financial affairs journalist Clare O’Hara, asked White this question, alluding to the use of postal codes as an auto insurance rating factor.
Author's summary: Regulator defends territorial rating for auto insurance.