The Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) released May 3 draft joint guidance for public consultation that sets out their expectations “for how insurers and intermediaries conduct insurance business and ensure the fair treatment of customers.”
The CCIR and CISRO say the proposed guidance, while modelled after the international standards for insurance regulation developed by the International Association of Insurance Supervisors, has been tailored to the Canadian insurance market.
The regulators say the proposed guidance is principles-based and will provide insurers and intermediaries with the latitude “to determine how to achieve the expected customers outcomes based on the nature, size and complexity of their activities.”
"Fair treatment of customers has become the key focus of financial services regulatory authorities in Canada and abroad and this proposed guidance will be its cornerstone in the insurance sector," said Patrick Déry, Chair of CCIR. "It aims at fostering meaningful discussions between regulators, insurers and intermediaries on market conduct."
Clear expectations for intermediaries
"Intermediaries have an important role to play in the insurance system, and having common guidance sets clear expectations across the industry," added Ron Fullan, Chair of CISRO.
The public consultation period began May 3, and will be open until June 18, 2018. The proposed guidance can be found on the CCIR’s website here and comments should be sent by email to email@example.com.
A CCIR-CISRO working group plans to review feedback from the consultation during the summer and expects to release finalized guidance in the fall.