Ontario’s Financial Services Regulatory Authority (FSRA) removed its UBI Guidance late last year. As a result, insurers are free to leverage telematics data to increase the rate for drivers who demonstrate a higher risk.
Until now, Ontario insurers, as per most regions, were only allowed to use telematics data to decrease rates. The inequality has often been quoted as a drawback of usage-based insurance has only been used to lower rates. This change could go a long way in allowing more tailored products, and possibly create safer drivers.