Regulator Defends Territorial Rating for Auto Insurance
Ontario's auto insurance regulator is allowing insurers to explore alternative territorial rating methods beyond the standard postal code method.
Mark White, CEO of the Financial Services Regulatory Authority (FSRA), addressed the issue at the 2024 FSRA Exchange, stating that the regulator will not ban territorial rates.
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 was moderated by Clare O'Hara, a financial affairs journalist from the Globe and Mail.
Author's summary: Regulator permits alternative territorial rating methods.
- Territorial rating will not be banned by the regulator.
- A test-and-learn environment has been opened for insurers to explore new ideas.