Global collaboration crucial for insurance regulators: CLHIA

Canadian Council of Insurance Regulators’ Strategic Plan 2017 – 2020 calls for greater collaboration across borders

Global collaboration crucial for insurance regulators: CLHIA
Canada’s regulatory system for insurance is due an overhaul, according to industry veteran Lyne Duhaime. As president of Quebec Affairs and SVP Distribution with the CLHIA, she believes the provinces need to come in line regarding regulation, and has welcomed The Canadian Council of Insurance Regulators’ (CCIR) Strategic Plan 2017 – 2020. The document outlines the industry’s priorities over the next three years, specifically:
  • Build upon cooperative supervision in aligning with best international practices to enhance consumer protection.
  • Work collaboratively with regulator partners to grow and leverage national regulatory capacity.
  • Partner with industry stakeholders to identify opportunities to increase regulatory and supervisory harmonization where practicable and appropriate.
The CCIR is made up of provincial regulators in the life, health and P&C fields, including the Financial Services Commission of Ontario (FSCO) and Quebec’s Autorité des marchés financiers (AMF). Its members also form part of the International Association of Insurance Supervisors, and cooperation across international borders is a major part of the Strategic Plan. Greater collaboration between provincial partners should be another priority, as Duhaime explains.

“Harmonization is needed among provinces,” she says. “Sometimes there are different rules in the West, or in Quebec, or the Maritimes. That’s not the best situation for an insurance company that operates nationally. We need the regulators to work together, and this is something the CLHIA appreciates from this Strategic Plan.”

With the formation of a new national regulatory body, the Financial Services Regulatory Authority, Canada is entering a new legislative era. While extra red-tape isn’t something welcomed by many of those working in insurance sales, ultimately these moves are to protect the public, explains Duhaime.

“What we are talking about is the fair treatment of the consumer,” she says. “That means many things; but in insurance it is about industry practises relating to compensation. There also needs to be transparency of information available to consumers. Both the CLHIA and the regulators have been putting a lot of focus there.”

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