Insurers issue Ontario rate decreases

The Financial Services Commission of Ontario (FSCO) today confirmed insurers have filed the required 10% lower auto insurance rates mandated by the provincial Liberal government.During the first quarter of 2004, the average rate drop was 10.15%, weighted by insurer marektshare. This compares with average increases of 7.32%, 8.48% and 8.22% in the first three quarters of 2003 (during the last quarter of the year, the Liberal-imposed rate freeze was in effect).In fact, the only rate increase came for Trafalgar Insurance Co. of Canada, at 4.5%. And, the newly-licensed S&Y Insurance Co. of Canada, for which Aviva Canada Inc. received a license last August, was not subject to a decrease as its rates were filed for the first time in the last quarter of 2003. FSCO had said it would take the financial position of each company into account when determining the appropriateness of the rate decrease so that no solvency concerns would be created.Among the biggest average rate decreases in the first quarter were ING Insurance and ING Novex, at 12.4% and 12.6%, respectively. Many insurers decreased rates slightly more than the required 10%.