November 29, 2024 – The Registered Insurance Brokers of Ontario (RIBO), the Ministry of Finance, and the Financial Services Regulatory Authority of Ontario (FSRA) have been consulting with key industry stakeholders to prepare for upcoming changes in auto insurance that take effect on July 1, 2026.
These changes aim to offer greater choice to consumers through increased optionality. Stakeholder feedback received to date demonstrates the broker industry’s commitment to ensuring a successful transition for consumers following the reforms.
An industry working group for auto reform implementation, including representatives from RIBO, and other key stakeholder groups will soon be launched. Further details about the new working group will be shared in the coming weeks.
On November 28, 2024, FSRA communicated and clarified the intent of the government’s auto reform changes. They also outlined the practices that would be supported as part of implementing these reforms across the industry, while ensuring the fair treatment of customers. Supported practices include, but are not limited to, providing consumers with the option to purchase new coverages individually; and existing policies must renew with the same coverages and limits, unless the consumer agrees to changes.
Brokers are reminded of their obligations under the RIBO Code of Conduct to understand consumer needs and provide suitable product recommendations. RIBO will work with industry associations and education providers to ensure that brokers understand their obligations and are well supported and prepared as the reforms are implemented. Brokers are also prohibited from engaging in misconduct as outlined in the RIBO Code of Conduct and FSRA’s Unfair or Deceptive Acts or Practices Rule.