This article was created in partnership with Unica.
With the rollout of the new Statutory Accident Benefits Schedule (SABS) slated for July 1, 2026, the Ontario auto insurance industry is preparing for its most significant regulatory shift in decades. Unica Insurance is urging its brokers to educate themselves so they can best support their clients through the unprecedented policy overhaul.
“Have a proper plan to communicate to clients the crucial points, to highlight the value you provide, and to meticulously document discussions you’ve had,” explained Mark Fonseca, senior director of litigation at Beneva, Unica’s parent company. Stressing that due diligence in documentation that meets the expectations of the Financial Services Regulatory Authority of Ontario (FSRA) is especially critical, he said: “That includes explaining how benefit limits may vary between insurers, how optional coverages are bundled, and what those choices mean for each client’s needs.”
“Failing to prepare properly for the new regime exposes brokers to significant Errors & Omissions (E&O) risk, especially if a client claims they were not properly advised or did not understand their coverage options,” he added. “Brokers must act now to protect their clients - and themselves.”
Starting July 1, 2026, SABS will shift from a comprehensive, one-size-fits-all package of benefits to a largely à-la-carte model. Nine of the 12 coverages will be optional after that date, with the government continuing to mandate coverage only for what it deems critical: medical, rehabilitation, and attendant care.
The balance - including income replacement, non-earner, and caregiver benefits, visitor, housekeeping, and home maintenance expenses, and coverage for damage to personal items as well as death and funeral benefits - will be sold under a FSRA-approved endorsement at an additional premium.
Crucially, these changes apply to new auto insurance policies purchased on or after July 1 next year, or when an insured makes changes to their coverage after that date. For these new or changed policies, clients must actively opt in and pay the additional premium to receive any of the now-optional benefits. However, when a policy issued before July 1st renews, all existing coverages will continue unless the consumer agrees in writing to remove them.
“Under the new coverage framework, it’s still mandatory for insurers to offer all of the coverages that were previously in place, but it’s optional for the consumer to purchase the majority of them,” Fonseca added. “The point is to empower Ontario drivers with increased consumer choice, giving them control over which benefits they require.”
Another change brokers need to be especially aware of is how the updated policy narrows eligibility for the optional benefits. They’re now only available to the named insured, the spouse and/or dependants of the named insured, and listed drivers specified in the policy. This means, for example, a young adult living away from home who doesn’t have their own policy and isn’t listed on the policy of his or her parents (and who is not a dependant of their parents) would be left without many coverages after an accident.
There will also be a major shift in how claims will be handled under the new regime, where fewer claims will be automatically covered under SABS. If the optional benefits weren’t purchased, not at-fault or partially at-fault accident victims may pursue compensation through the tort system, meaning more lawsuits against at-fault parties. This is expected to increase litigation and could drive up premiums for liability coverage, even as SABS premiums may decrease for those who opt out of optional benefits.
Additionally, auto insurers will become the first payor for the mandatory medical, rehabilitation, and attendant care benefits as opposed to claimants having to first exhaust workplace or private health plans. While this simplifies the process for consumers and reduces the risk that supplementary health benefits are depleted for accident-related expenses it is expected to increase costs and change claims handling for insurers.
The changing regime puts brokers in the hot seat, making it incumbent on them to educate themselves on the shift in the system. There’s ongoing, industry-wide preparation led by key stakeholders - including the Insurance Bureau of Canada (IBC), Registered Insurance Brokers of Ontario (RIBO), Insurance Brokers Association of Ontario (IBAO), Canadian Association of Direct Relationship Insurers (CADRI), and leading insurers - to collaborate on education, technology, and communications.
Specialized work streams are developing standardized forms, consumer education materials, and broker training programs, while insurers such as Unica are doing their part by leveraging regular broker-focused educational seminars to tackle the looming changes, the nuances of their implications, and best practices - including the risk of E&O exposure if clients aren’t fully informed or if documentation is lacking.
While brokers must access the support available and keep up to speed with their evolving responsibilities, Fonseca’s best piece of advice for brokers is smaller in scale: nothing replaces on-the-ground, face-to-face, deep-dive conversations with clients.
“It’s more important than ever for brokers to truly get to know their clients, who’s in the household, who’s driving, what their needs are, and how their circumstances may change,” Fonseca said.
The revamped SABS system will shine a light on brokers and highlight the benefits of using one to place insurance. Fonseca stressed that brokers are dealing with people who rely on them as professionals to secure the right coverage, not the cheapest.
“They’re not driven solely by price; they want to be properly covered,” he added. “Without the benefit of a broker, consumers may not get the same personal, tailored advice that is critical moving forward.”
With less than a year left before the sweeping changes, now is the time to step up as trusted advisors: master the new policy changes, educate your clients, and document every step. Clients are counting on you, your own professional liability is on the line, and the clock is ticking.
