May 4, 2018 11:30
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The canadian Council of regulators of insurance (CCIR) and the canadian regulatory Agencies in insurance (OCRA) jointly publish a draft directive on their expectations for insurers and intermediaries regarding the conduct of insurance business and the fair treatment of customers. The objective of the consultation is to harmonize regulation and supervision.
The consultation is underway since Thursday 3 may and will end on 18 June. The committee of joint working will consider the comments received and publish the final version of the directive in the fall of 2018.
The agencies suggest that the directive will give to insurers and intermediaries the flexibility to determine the manner in which they wish to achieve the expected results for the customers according to their activities.
The directive will apply international standards of regulation of insurance developed by theinternational Association of insurance supervisors, but will be adapted to the particularities of the canadian market, say the CCIR and the OKRA. It will address all the participants of the insurance market that interact with customers.
«The fair treatment of customers has become of paramount importance for the authorities of supervision of financial services in Canada and abroad, and this draft directive will be the cornerstone in the insurance sector,» explains Patrick Déry, president of the CCIR. “The directive promotes the fruitful interaction between regulators, insurers and intermediaries on business practices.”
“Intermediaries play a decisive role in the insurance sector ; a joint directive allows you to establish clear expectations in the sector as a whole,” says Ron Fullan, chair of OCRA.