There have been many reactions in the Quebec insurance industry following last week’s tabling of Bill 141, An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions.
Among other things, the 488 page omnibus bill proposes to abolish two self regulatory organizations in Quebec, the Chambre de la sécurité financière (CSF) and the Chambre de l'assurance de dommages (ChAD). These organizations were the first to react to the bill.
“We have deployed enormous resources over the past two decades to maintain citizens’ trust in the financial sector. We must not lose this by reforming this legislation too quickly,” says Marie Elaine Farley, president of the CSF.
Maya Raic, President and Managing Director of the ChAD, says the government is mistaken by rejecting organizations which have proven that they ensure consumer protection.
Weakens protection for consumers
“The bill weakens the priority given to protection of the public by abolishing the main defence for property and casualty insurance consumers,” says Raic. “During their discussion and reflection, we invite the Members of the National Assembly to consider the relevance, the competence and the efficiency of these public protection organizations, which oversee the professionalism of individuals working in this sector.”
But other organizations, such as Desjardins Group, as well as direct insurers, applauded the tabling of the bill.
Modernizes Quebec’s framework
The President and CEO of Desjardins, Guy Cormier, stated that the bill will make Quebec’s legislative framework one of the most modern in the world.
A Quebec association of direct insurers, the Corporation des assureurs directs de dommages du Quebec (CADD), also supported the bill. "The tabling of the bill is very good news for the property and casualty insurance industry. The modernization of the current regulatory framework had been expected by the industry for several years, says Michel Laurin, President of CADD.