Ontario Auto Reform

Ontario’s auto insurance system is shifting in a major way. Starting July 1, 2026, several Statutory Accident Benefits (SABS) that are currently mandatory will become optional.

Every broker will need to guide clients through these choices, especially at renewal.

This webpage provides an overview of:

  • What is changing
  • What it means for brokers and their clients
  • The tools available to support brokers’ conversations.

These reforms give clients more choice, but they also create more complexity. Brokers will play a critical role in helping Ontarians understand the new landscape and select coverage that fits their needs.

RIBO, industry partners, and the Financial Services Regulatory Authority of Ontario (FSRA) will continue to provide tools and training to support you through the transition.

Beginning July 1, 2026:

  • Several benefits will become optional, including Income Replacement, Caregiver, Housekeeping/Home Maintenance, Dependent Care, Death, Funeral, and others.
  • Medical, Rehabilitation, Attendant Care, and Cost of Examinations remain mandatory.
  • Insurers must offer a full suite of optional benefits and show clear pricing for each.
  • Insurers will become the first payor for most medical and rehab expenses (except medication), even when a client has workplace benefits.

These changes apply to all auto contracts, including personal and commercial.

For customers with pre-July 1 contracts, insurers must renew with the same benefits unless the client chooses to make changes.

These reforms shift the risk-advisory role onto brokers.

Brokers will need to:

  • Explain that many benefits that clients have had automatically will soon require an active choice
  • Help them understand the impact of opting out of certain coverages.

Renewal conversations will likely become longer, especially in the first year, and you may need to update your internal scripts, workflows, and processes to reflect the new structure.

You should also be prepared to support digital transactions where optional benefits must be clearly itemized.

Your guidance will shape how clients navigate these decisions and help prevent gaps in their coverage.

Brokers are still required to provide auto insurance quotes in accordance with the Take-All-Comers Rule. Read the RIBO Licensee Requirements and the Take-All-Comers Rule guidance.

Consumer Awareness: Preparing Clients Ahead of July 1, 2026

RIBO and FSRA expect brokers and insurers to take an active role in building early customer awareness. This is not a “wait until renewal” change. Policyholders should start hearing about the reforms well before July 1, 2026.

Key expectations include:

  • Clear and transparent communication about:
    • What is changing
    • Why it is changing
    • How it affects the client’s upcoming renewal.
  • Early awareness, not just renewal point messaging. Customers should have enough time to understand the range of optional benefits and prepare questions.
  • Use of efficient and cost-effective communication methods, such as email, digital brochures, online portals, and coordinated messaging between insurers and brokerages.
  • Communication beyond the renewal package. Renewal notices alone are not enough. Additional proactive communication is encouraged.
  • Thorough documentation of client conversations and decisions. This will be crucial for advice continuity and for managing E&O exposure as more coverage decisions shift to the client.
  • Encouraging staff to complete the 2026 Ontario Auto Reform: Introduction to Accident Benefit Changes course, along with any insurer-developed training on bundled options or other company-specific changes, to ensure advisors are aligned and prepared to support customers.

These actions will help clients make informed decisions and reduce last-minute confusion at renewal while ensuring brokers are equipped to navigate the new coverage environment confidently.

Key Messages to Share with Clients

When speaking with clients, keep the messages simple and clear so they can easily understand what is changing. Explain that more accident benefits will become optional, giving them greater control over their coverage.

Medical and rehabilitation benefits will remain mandatory, but benefits like income replacement and housekeeping will no longer be automatically included.

Encourage clients to review their workplace or private disability plans, since those coverages will matter more when deciding what to opt out of, if any.

Suggest they start early conversations with their A&S advisor and workplace benefits provider to understand what protection they already have.

Reassure clients that they can keep the same level of coverage they have today if it still meets their needs. These messages work well across emails, renewal calls, and brokerage newsletters.

Impact on Policyholders

Clients will face more decisions at renewal.

These are the most common challenges you can expect:

  • Confusion about which benefits they currently have
  • Uncertainty about whether workplace benefits provide similar protection
  • Difficulty understanding the financial impact of opting out of income replacement or caregiving benefits
  • Assumptions that ‘mandatory’ means ‘automatically included.’

Many clients will need help comparing their current coverage to the new options. The shift to optionality means more personalized advice and a greater need for brokers to translate the choices into plain language.

Roadmap for Readiness

RIBO has created readiness roadmap PDFs for industry partners, which outline each phase, so you can prepare accordingly:

Industry Q&A and Take-All-Comers

RIBO has prepared a comprehensive Q&A (English and French) that covers mandatory benefits, optional benefits, renewals, documentation, and digital quoting requirements. It is designed to be your day-to-day reference as you prepare for the reforms.

Brokers are still required to provide auto insurance quotes in accordance with the Take-All-Comers Rule. Read the RIBO Licensee Requirements and the Take-All-Comers Rule guidance.

Free Industry Course

A standardized 2026 Ontario Auto Reform: Introduction to Accident Benefit Changes course, developed collaboratively by the Ontario Mutual Insurance Association (OMIA), the Insurance Institute of Canada (IIC), and the Insurance Brokers Association of Ontario (IBAO), launched in January 2026.

This is free for the first six months. Training course fees may be set by education providers in the future. The sector-wide course gives brokers, agents, and frontline staff a consistent foundation to understand the new SABS structure ahead of the July 2026 changes.

While not mandatory, it is strongly encouraged for anyone advising clients, and brokerages and insurers are expected to support staff in completing it.

The course provides a clear overview of the reforms, including:

  • The new structure of mandatory and optional accident benefits
  • How renewals, quoting, and mid-term changes will work under the new rules
  • First-payor changes and their impact on client and claims conversations
  • Practical customer scenarios with step-by-step guidance
  • Best practices for helping clients understand and select appropriate optional coverages.

To set appropriate expectations, the course does not cover:

  • Insurer-specific products, bundles, underwriting rules, or pricing
  • Any workflow tools, brokerage systems, or distribution-specific technology
  • Sales, marketing, claims handling, or insurer operational practices
  • Workplace benefits, disability plans, or E&O-related guidance.

These areas remain the responsibility of individual insurers and brokerages to address through their own training and resources.

Course Details

  • Format: Online, on-demand
  • Access: Through the IBAO, IIC, and OMIA websites
  • Accreditation: RIBO-accredited for 2 Technical Hours
  • Cost: Free for the first six months

This training is a highly recommended first step for anyone preparing for the reforms. It supports industry-wide consistency and reduces misinformation.

Brokers are encouraged to complete the course early so they are prepared for renewal conversations throughout 2026 and are able to confidently guide clients through the new accident benefits landscape.

RIBO is not delivering or administering this course. All questions about the course should be directed to the education provider offering it.

FSRA Consumer Resources

FSRA has developed a dedicated online hub containing everything related to the auto reform. This centralized page includes consumer-focused materials such as fact sheets, key messages, sample letters, plain-language explanations, and scenario-based examples that brokers can share directly with clients. It also houses industry guidance, insurer materials, and all updated forms impacted by the changes.

This webpage is the primary source of information for the industry especially around technical updates, helping ensure consistent and accurate messaging across the entire distribution channel. Brokers are encouraged to reference it regularly as they prepare for renewal conversations and client outreach.

IBAO Brochure for Brokers

IBAO has created a ready-to-use brochure that highlights key updates and makes client conversations more informed:

How the Reforms Will Be Reflected in RIBO Exams

RIBO exams will begin incorporating auto reform content as early as January 2026.

Because accident benefits fall under core broker knowledge, every candidate (whether they are entering the profession for the first time or completing an equivalency exam with experience from another jurisdiction) will need to demonstrate an understanding of the updated framework.

This includes:

  • Knowing which benefits remain mandatory
  • Which become optional
  • How these choices affect client conversations, renewals, and coverage decisions.

Reform SABS content will appear across all relevant RIBO examinations, where appropriate. The intention is to ensure all candidates are prepared to advise clients accurately and consistently under the new accident benefits structure.

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