The United States’ decision to impose trade tariffs has prompted Canadian officials to re-examine internal trade barriers, with a particular focus on labour mobility. This shift has significant implications for the property and casualty (P&C) insurance sector, especially regarding the ability of adjusters to operate across provincial borders.
According to the Insurance Bureau of Canada, complex and inconsistent licensing requirements prevent adjusters from moving freely between provinces, delaying claims processing and disaster response efforts.
Addressing these regulatory hurdles has become more pressing amid concerns about a potential Canada-US trade dispute that could restrict access to American adjusters. In a recent op-ed, Anita Anand, Minister of Internal Trade, highlighted “lengthy certificate recognition and licensing processes [that] delay regulated workers from going where they are needed most.”
Governments across Canada are now seeking input from industry stakeholders on obstacles that hinder the movement of goods and labour within the country.
In response, a coalition of eight P&C associations has renewed its call for reforms to Canada’s adjuster licensing framework. In a Feb. 10 letter to the Canadian Insurance Services Regulatory Organizations (CISRO), the coalition urged policymakers to address licensing requirements that vary by province.
These differences prevent adjusters from operating across provincial borders without regulatory approval. The industry is advocating for a system of reciprocity, where a license issued in one province would be recognized nationwide.
Efforts to improve adjuster mobility have been underway for decades. In 1990, federal, provincial and territorial governments introduced the Agreement on Internal Trade (AIT) to support the free flow of trade and labour.
In 2011, financial service occupations, including insurance adjusters, were designated for inclusion under Chapter 7 on labour mobility. Amendments to Chapter 7 came into effect in 2021.
In 2017, the Canadian Free Trade Agreement (CFTA) reaffirmed these provisions, establishing a framework for reciprocity. In 2014, CISRO launched a pilot project to streamline licensing recognition, acknowledging the need for insurers to deploy adjusters efficiently after disasters. However, the pilot did not progress to a permanent framework.
Calls for adjuster licensing reforms have gained urgency for two reasons: first, a potential Canada-US trade dispute may limit access to American adjusters, placing additional pressure on Canadian adjuster capacity; and second, the increasing frequency and severity of extreme weather events are testing domestic resources.
The coalition has pointed to other jurisdictions that have adopted reciprocity. In the US, most states recognize adjuster licenses from other states, with exceptions in New York, California and Hawaii. The coalition has also noted the similarities in licensing requirements across Canadian provinces, arguing there is no significant policy reason to prevent national recognition of licenses.
When asked whether interprovincial barriers could be addressed within 30 days – the duration of the US administration’s tariff pause – Anand responded: “The short answer to your question is yes.”
As Canadian governments consider measures to improve trade and labour mobility, the P&C industry continues to engage with policymakers and regulators to advance licensing reforms. The industry argues that removing barriers to adjuster mobility could improve claims handling efficiency and strengthen Canada’s ability to respond to severe weather events.
