Optional Accident Benefits in Auto Insurance

RIBO is working with the Financial Services Regulatory Authority of Ontario (FSRA) and industry representatives to clarify expectations and provide greater confidence around Ontario’s upcoming auto reforms.

Below are some key resources and strategies to support broker readiness and increase customer awareness ahead of the changes.

Communication to Customers

As the upcoming auto reforms will impact all customers as of July 1, 2026 and vary the terms of all auto insurance contracts at once, all customers (not just renewing customers) should be provided enough time to be informed about the changes and their impacts to make sure they have the right coverage.

RIBO and FSRA expect insurers and brokers to clearly and transparently inform customers to build awareness about upcoming changes before the July 1, 2026 reform effective date. Insurers are encouraged to use efficient, cost-effective methods for communication, such as digital channels and coordinated messaging with distributors. These communications should be in addition to reform communications included in the policy renewal package.

Industry FAQ and Communications Toolkit

The Industry FAQs (English and French) available on RIBO’s website have been designed to support preparation for the changes coming next year.

FSRA, in partnership with RIBO and industry representatives, has prepared an Industry  Communications Toolkit which includes template letters to customers. Additionally, the Self Assessment Checklist and Customer Scenarios are available on FSRA’s website. The toolkit is available for insurers to use in full or in part to support customer education and communication.

Education

Adequate education, training, and preparation are key to successfully implementing the changes to Statutory Accident Benefit Schedule (SABS) in your workflows and navigating potential challenges.

Ahead of July 1, 2026, licensees should:

• Refer to Principal Broker and brokerage policies for guidance when they are unsure;
• Understand the changes and what they mean for customers;
• Understand the OPCF 47R: Optional Accident Benefits Coverage & Priority of Payment form; and,
• Know your licence limitations.

Principal Brokers and brokerages should:

• Understand how the changes will impact workflows;
• Offer and identify training opportunities and establish clear policies for your licencees;
• Ensure that licensees know the scope of their licence and when to refer to Accident & Sickness advisors; and
• Work with your quoting tool providers to ensure that the tools support compliance.

Online Training

In January 2026, the Insurance Brokers Association of Ontario (IBAO), the Insurance Institute of Canada (IIC) and the Ontario Mutual Insurance Association (OMIA) are launching a 2026 Ontario Auto Reform: Introduction to Accident Benefit Changes course that will provide a comprehensive overview of the new optional benefit regime including licence limitations.

The course will be free for the first six months of 2026 and will be RIBO-accredited. The course is expected to take an estimated 1.5 to 2 hours to complete.

Reminder About Changes to the SABS Effective July 1, 2026

Some brokers have requested further clarification about what is changing in the regulation as of July 1, 2026:

• Changes apply to all customers: The changes to accident benefits apply to all new and existing customers as of July 1, 2026, irrespective of renewal date.
• Definition of covered persons: The new definition of covered persons for optional accident benefits applies to all policies on July 1, 2026, irrespective of policy renewal date. For optional accident benefits, definition of covered persons will be:
  • The named insured;
  • The spouse of the named insured;
  • The dependants of the named insured and of the named insured’s spouse; and
  • The persons specified as drivers of the insured automobile.
• Existing policies must renew with the same coverages and limits: Policies must renew with existing coverages and limits unless the customer requests a change in writing.
• Mid-term changes: Customers can opt out of optional coverages at any time after July 1, 2026, irrespective of policy renewal date.
• First Payor for Medical and Rehabilitation: Insurers will be the first payor for medical and rehabilitation expenses (excluding medication) as of July 1, 2026.