The Approach Guidance for Ontario Private Passenger Automobile Annual Review specifies the Benchmarks for loss trend rates and reform factors  (“Benchmarks”) and other key actuarial assumptions that assist FSRA in reviewing Private Passenger Automobile (“PPA”) insurance rate filing applications based on statutory requirements.

The majority of premium an insurer collects pays for losses that its customers will incur in the future. To estimate these future losses, the insurer relies on a variety of assumptions. FSRA regulates Ontario automobile insurance rates and uses the Benchmarks to evaluate if an insurer’s assumptions are appropriate when the insurer seeks approval for changes to its rates.

Ratemaking Benchmarks are used to evaluate:

  • Fair Rates for Consumers
  • Market Competition
  • Market Health

The table below provides a quick reference to all Guidances, consultation summaries, and benchmarking reports produced since May 15, 2020.

Benchmark Effective Period GISA Data Evaluation Date

Guidance

Consultation Summary

Supporting Report

January 31, 2022

June 30, 2021

Current Guidance

N/A

Oliver Wyman Report:Ontario Selected Private Passenger Vehicles Loss Trend Rates and Reform Factors

October 20, 2021

December 31, 2020

Current Guidance

"2020-H2 Consultation Summary"

Oliver Wyman Report:Ontario Selected Private Passenger Vehicles Loss Trend Rates and Reform Factors

June 30, 2021

June 30, 2020

2020-H1 Guidance

N/A

Oliver Wyman Report:Ontario Selected Private Passenger Vehicles Loss Trend Rates and Reform Factors

September 23, 2020

December 30, 2019

2019-H2 Guidance

2019-H2 Consultation Summary

Oliver Wyman Report:Ontario Selected Private Passenger Vehicles Loss Trend Rates and Reform Factors

May 15, 2020

June 30, 2019

2019-H1 Guidance

2019-H1 Consultation Summary

Oliver Wyman Report:Ontario Selected Private Passenger Vehicles Loss Trend Rates and Reform Factors