Canada’s largest province removes UBI surcharge restriction

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.

Ontario regulators will allow insurers to increase customer premiums based on their telematics data

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.

Read more here https://www.canadianunderwriter.ca/technology/telematics-surcharges-arrive-for-ontario-auto-1004203474/