Since 1997, the Financial Services Commission of Ontario (FSCO) was the regulatory body for the insurance sector and service providers that invoice auto insurers for statutory accident benefits claims in Ontario.
That is, until now.
In an effort to modernize, reform and increase driver affordability of auto insurance in Ontario, a new, independent, self-funded regulatory agency was created – Financial Services Regulatory Authority of Ontario (FSRA).
The creation and implementation of FSRA was one part of the former government’s review on how auto insurance rates are regulated. The FSRA has the flexibility to cut red tape, be more responsive to the needs of businesses and the rule-making authority to promote strong financial services while protecting the public interest.
As of June 8, 2019, the FSRA has officially taken over regulatory duties from FSCO. FSRA now regulates the auto insurance sector in Ontario and service providers that invoice auto insurers for statutory accident benefit claims.
So, what does this mean for Ontario rehab clinics that treat motor vehicle accident (MVA) patients and for the clinic management of these facilities?
- The Ministry of Finance will administer FSCO’s Dispute Resolution Services until June 30, 2020. During the transitional period, all open cases will continue, however, no new proceedings will commence. As of July 1, 2020, any remaining cases will be extinguished, with parties able to start a new proceeding with the License Appeal Tribunal.
- The administrative responsibility of the Motor Vehicle Accident Claims Fund (MVACF), that provides compensation to accident victims involved in accidents with uninsured or unidentified drivers and are not covered under an insurance policy, will be transferred to the Ministry of Government and Consumer Services.
- FSRA already began streamlining auto insurance rate regulation by developing principles with input from top professionals, which will be tested through public consultation. With these draft principles providing guidance, FSRA are close to introducing a new standard rate filing.
- The FSRA is currently reviewing all regulatory direction, including but limited to forms, guidelines, and FAQs. Until the FSRA issues new regulatory direction, all existing regulatory direction remains in force.
As always, stay tuned and keep checking our blog for the latest in industry news.
Let us know how you think the creation and implementation of the FSRA will impact MVA service providers in the comments below.