TORONTO (October 21, 1998) -- Ontario private passenger auto insurance rates decreased during the third quarter of 1998, marking the ninth successive quarterly decrease since 1996, according to the latest rate information published by the Financial Services Commission of Ontario (FSCO).

The rates approved during the third quarter ending September 30, 1998 indicate a decrease in auto insurance rates of 1.07 per cent for the past quarter, when weighted by market share for those insurance companies with a rate change. Of the 21 rate filings that were approved, 12 dealt with rate changes, and the remaining nine dealt with matters that had no impact on the overall rate level. The rate changes ranged from a decrease of 6.69 per cent to an increase of 0.96 per cent.

The average cost of auto insurance in Ontario at the end of the third quarter of 1998 was 10.63 per cent lower than at the end of the third quarter of 1996 (the last quarter prior to the introduction of Bill 59, the Automobile Insurance Rate Stability Act, 1996).

FSCO regulates insurance in Ontario. Companies selling automobile insurance are required to submit rate filings which FSCO reviews for actuarial soundness. Projected rates must be based on solid and verifiable information, and be able to sustain a company's long-term capacity to meet its claim costs.

FSCO publishes rate information to help consumers make better choices among insurers. The information is available at its Website at www.fsco.gov.on.ca Consumers who are unclear about the prices they are paying for insurance coverage should check with their agent, broker or insurance company and/or shop around to see how their premium compares in the marketplace.

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Media contact: Kathleen Harford, FSCO (416) 590-7230

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

July 1, 1998 to September 30, 1998

Company	Market Share (1997)	Effective New Business Date	Effective Renewal Business Date	Approved Rate Change
Allstate Insurance Company of Canada	3.90%	Sep 1, 1998	Nov 1, 1998	0.00%1
Belair Insurance Company Inc.	1.36%	Aug 10, 1998	Sep 15, 1998	0.00%2
Canada Life Casualty Insurance Company	1.04%	Aug 24, 1998	Oct 24, 1998	-6.69%
Canadian Group Underwriters Insurance Company	0.18%	Sep 1, 1998	Nov 1, 1998	-0.49%
Co-operators General Insurance Company	7.64%	Aug 4, 1998	Sep 9, 1998	-0.10%
Dominion of Canada General Insurance Company	4.87%	Nov 1, 1998	Dec 15, 1998	-2.67%
Federation Insurance Company	0.74%	Jul 15, 1998	Sep 15, 1998	-3.40%
Liberty Mutual Insurance Group	3.23%	Oct 19, 1998	Dec 10, 1998	0.00%2
Liberty Mutual Insurance Group	3.23%	Oct 19, 1998	Dec 10, 1998	0.00%3
Lloyd's Non-Marine Underwriters	0.81%	Sep 29, 1998	Oct 15, 1998	0.00%1
Lombard Canada Ltd.	1.98%	Aug 1, 1998	Oct 1, 1998	-2.00%
Lumbermen's Mutual Casualty Company	1.34%	Oct 1, 1998	Nov 15, 1998	-0.27%
Personal Insurance Company	2.15%	Sep 15, 1998	Nov 2, 1998	0.96%3
Progressive Casualty Insurance Company	1.28%	Oct 16, 1998	Dec 15, 1998	0.00%2
Royal & Sun Alliance Insurance	4.03%	Aug 15, 1998	Oct 1, 1998	-0.20%
Wawanesa Mutual Insurance Company	2.56%	Sep 1, 1998	Sep 1, 1998	-0.39%
Wawanesa Mutual Insurance Company	2.56%	Oct 1, 1998	Oct 1, 1998	-0.39%
Wawanesa Mutual Insurance Company	2.56%	Nov 1, 1998	Nov 1, 1998	-0.02%
Wellington Insurance Company	0.00%	Jan 1, 1999	N/A	0.00%4
Western Assurance Company	0.57%	Aug 15, 1998	Oct 1, 1998	0.00%2
Zurich Indemnity Company	0.13%	Sep 1, 1998	N/A	0.00%2
Total Market Share	37.82%

1 These filings dealt with group rate program changes.
2 These filings dealt with rating changes with no overall impact.
3 These filings dealt with the introduction of CLEAR.
4 This filing dealt with the introduction of a new rate program and CLEAR.

Financial Services Commission of Ontario
October 1998