Toronto, ON, October 29, 2025
Starting July 1, 2026, Ontario’s auto-insurance system will undergo a major transformation. Introduced by the Government of Ontario and implemented through the Financial Services Regulatory Authority of Ontario (FSRA), this Reform mark the most significant update to the province’s auto-insurance framework in decades.
Under the new model, only a core set of Statutory Accident Benefits will remain mandatory. These include:
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
All other coverages — such as income replacement, caregiver, visitor expense, and funeral benefits — will become optional add-ons.
While this reform gives policyholders more flexibility to tailor their coverage, it also introduces new complexity. Brokers will play a critical advisory role in helping clients understand what opting out could mean for their protection and long-term financial stability.
From a premium-financing perspective, this reform may affect how clients spread and manage their payments. With optional benefits, there could be greater variability in premium amounts and payment schedules — making financing solutions more tailored. Brokers and lenders alike will need to evaluate how declining certain coverages changes the risk profile of financed policies.
IPFS Canada is positioning itself to support brokers through this shift, helping them guide clients, adapt payment plans and maintain premium-financing strategies that align with the evolving market.
