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In its 2025 Auto Supervision Interim Report, the Financial Services Regulatory
Authority of Ontario (FSRA) found that insurance companies need to adopt stronger controls, enhanced documentation, and improved oversight to ensure fair consumer outcomes and compliance with regulatory requirements.
Over the past year, FSRA conducted examinations of insurers to ensure compliance with FSRA’s expectations of fair consumer treatment. Each insurer has committed to making the required improvements.
While insurers largely met FSRA’s expectations, there were some areas that could be improved upon, including:
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Underwriting: Insurers followed approved rules and there was no evidence of unfair denials. However, additional underwriting verification may be causing processing delays. FSRA expects insurers to strengthen monitoring of this practice to support fair consumer outcomes.
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Disclosure to consumers: Insurers had limited visibility into the information brokers provide to customers when they purchase auto insurance.
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Policy Servicing: Insurers aren’t collecting enough data to analyze when and why they cancel or choose not to renew a customer’s policy. This data is important for identifying trends and ensuring decisions are fair and justified.
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Claims: Insurers who referred auto claimants to Preferred Provider Networks (PPNs) lacked documentation demonstrating that required disclosures and written consent from claimants were obtained.
The full findings are outlined in FSRA’s Auto Supervision Interim Report, as part of its ongoing Auto Insurance Supervision Plan.
To broaden its understanding of industry practices, FSRA has extended its work on the Auto Insurance Supervision Plan until March 31, 2026. A final report will be released once all additional examinations are completed.
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