The federal and provincial governments regulate the P&C insurance industry. The provincial governments regulate market conduct, and the federal Office of the Superintendent of Financial Institutions (OSFI) is the industry’s primary prudential (solvency) regulator.
While it is impossible to pinpoint the exact costs associated with regulatory compliance by the industry, it’s estimated that they are in the hundreds of millions of dollars.
Auto insurance, in particular, is very highly regulated. The provincial governments determine the content of auto insurance policies, how claims are handled and how complaints are managed; they also administer rate approval systems. IBC is advocating for auto insurance reform in several provinces, including Alberta, Ontario, Nova Scotia and New Brunswick.
IBC advocates for effective, principle-based regulation that would permit insurers to offer the products and services that consumers need and want. Through IBC, the P&C insurance industry also engages with regulators and the federal government to ensure that new regulations balance the needs of consumers and take into consideration insurers' business models.
IBC works with governments and regulators across the country to help strike a balanced regulatory framework that protects Canadians while not stifling innovation.
IBC is committed to working with regulators to understand the issues they are trying to solve, and to making meaningful contributions to help solve those issues. IBC’s members are diverse and range from large, multi-national insurance companies to small mutual and niche insurers, offering specialized coverage to a smaller customer base. This means that effective regulatory solutions cannot be one-size-fits-all and must take into account those differences.
Market conduct
The Canadian Council of Insurance Regulators (CCIR) is an association of Canada's provincial insurance regulators. It works to regulate insurers' governance, practices and policies with respect to the treatment of consumers; this is known as "market conduct." Market conduct measures help ensure fair treatment of customers throughout the insurance sales, distribution and claims settlement cycle.
IBC engages with CCIR on behalf of its members to discuss the industry's perspectives on new or revised market conduct expectations in respect of CCIR's guiding principles. IBC also monitors global regulations to assess their potential impact on Canadian insurers. This involves ensuring that international regulations are sensitive to the domestic regulatory landscape and the particulars of the P&C insurance industry in Canada. IBC also participates in discussions led by the Global Federation of Insurance Associations, providing input into the development of the many aspects of international regulations that affect P&C insurers.
