FSRA releases its second Resident Reference Panel on Automotive Insurance
As part of its ongoing commitment to include consumers in the policymaking process, FSRA has launched its second Resident Reference Panel on Automotive Insurance.
Over multiple sessions, the panel focussed on rate regulation and data & analytics related to auto insurance.
- Rate Regulation: continuing the work of the previous panel, this panel went deeper into the subject of fairness in auto insurance rates with a focus on the issue of cross-subsidization. Overall, panelists expressed an interest in finding ‘socially fair’ balances between groups of consumers, even if it meant perpetuating higher costs for some consumers. The panelists felt that current approaches to providing consumers with information are ineffective at empowering people to shop, compare, and make good decisions that fit their needs.
- Data & Analytics: discussion about big data analytics (BDA), artificial intelligence (AI), and machine learning (ML) and how these are revolutionising auto insurance in Ontario. Through a discussion, they provided insights about data sharing, including the trade-off between the value to consumers of sharing data with different organizations and the privacy and security risks posted by increasing number of people with access to consumer data.
The consumer feedback will inform the underwriting and rate regulation reform strategy. It will also inform the auto insurance data and analytics strategy that will support FSRA’s risk-based supervisory framework and inform FRSA’s fraud strategy.
This panel was spurred by the success and learnings that emerged from the 2020 Resident Reference Panel. That panel provided a citizen’s perspective on how to make Ontario’s auto insurance system clearer, easier to understand, and more transparent. Those recommendations informed the 2021 annual business plan and outcomes.
FSRA would like to thank the panel members for their time and insights. We look forward to continued engagement.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.