The Financial Services Regulatory Authority of Ontario (FSRA) is consulting on two draft guidance documents—on corporate governance and operational risk and resilience—that aim to protect insurance consumers while promoting the industry’s sustainability.

“To support the proper oversight, management, and practices of insurers, FSRA’s proposed guidance sets out clear principles and desired outcomes for both sound corporate governance and operational risk management and resilience,” the regulator said.

“The proposed guidance is aligned with FSRA’s principles-based approach and allows for flexibility and applies proportionality when assessing the effectiveness of insurers in achieving the intended outcomes.”

Industry stakeholders are encouraged to provide feedback during the 60-day consultation period until June 17.

FSRA executive vice president for credit union and insurance prudential Mehrdad Rastan (pictured) said: “Insurers that demonstrate sound corporate governance practices in line with FSRA’s proposed Corporate Governance Guidance are more likely to achieve long-term sustainable business performance and safely meet the needs of their policyholders, members, and subscribers.

“FSRA’s Operational Risk and Resilience Guidance will support the insurers’ ability to effectively identify, mitigate, and manage operational risks and continue to operate when faced with adverse events, ultimately protecting policyholders, members, and subscribers, and contributing to public confidence in the sector.”

The proposed guidance documents can be accessed here.

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