Ontario’s SABS reform makes 9 of 12 Accident Benefits coverages optional starting July 1, 2026. Only Medical, Rehabilitation, and Attendant Care will remain as mandatory coverages. A transitional clause lets policies written before that date be amended by agreement at renewal. The reform also reorders “first payer” so that auto insurers pay eligible medical and rehab costs before supplementary health plans. FSRA has begun publishing insurer Q&A and new consumer forms ahead of the switch.
| Mandatory vs Optional | Effective July 1, 2026, Ontario retains mandatory medical, rehabilitation and attendant care benefits; all other accident benefits become optional coverages. |
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| Product Complexity | Optionality increases the number of possible benefit combinations; actuaries must price and model multiple benefit election scenarios. |
| Selection Risk | Voluntary elections introduce adverse selection potential; monitoring take-up rates (e.g., % electing optional benefits by age cohort) becomes vital. |
| Rating Specifications | Insurers must adhere to FSRA filing specifications including cost benchmarks and rating factors tailored by benefit level. |
| Reserving | Heterogeneous portfolios due to optional elections may widen reserve development variability; segmentation by benefit selections will improve actuarial accuracy. |