The Canadian Council of Insurance Regulators (CCIR), together with the Canadian Insurance Services Regulatory Organizations (CISRO), has released guidance to help insurers and intermediaries not only conduct their business, but also ensure that their customers are treated fairly.
The principles-based joint guidance provides insurers and intermediaries with “the necessary latitude to determine how best to achieve the expected customer outcomes based on the nature, size and complexity of their activities,” a release said.
Notably, the joint guidance was written with all insurance market participants in mind, across all segments.
A release said that the joint guidance was modelled after international standards for insurance regulation developed by the International Association of Insurance Supervisors. The difference is that CCIR/CISRO’s guidance takes into account the nuances of the Canadian market.
With each jurisdiction in Canada having its own regulatory approach to insurance, CCIR and CISRO consulted with other regulatory partners and industry stakeholders to create the guidance – to “increase regulatory and supervisory harmonization.”
“Fair treatment of customers is a key focus of financial services regulatory authorities in Canada and abroad,” said CCIR chair Patrick Déry. “This joint guidance confirms that regulatory partners and industry stakeholders can work collaboratively to achieve common goals in the insurance sector.”
“Our mandate as insurance regulators is to ensure that all market participants have a focus on treating customers fairly. This guidance document outlines the key principles that we expect those market participants to engrain into their daily practices,” added CISRO chair Ron Fullan.
The joint guidance is a part of CCIR’s strategic plan for 2017-2020. The council last year identified a number of action plans for the period, which included encouraging the fair treatment of consumers and prioritizing harmonization among industry stakeholders to address specific issues.
