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Policy Issues
These are CADRI’s views on current policy issues, reflecting our mission to support an innovative, dynamic and competitive insurance marketplace and create better experiences for our consumers.

Risk Variables in Insurance

Insurance is important to protect individuals and families when an unexpected event occurs such as water damage in a home or an automobile accident. Insurance premiums paid by many are collectively used to pay for claims experienced by few. In short, this means that those people who do not have to make a claim pay for those that do.

To make insurance as fair as possible, insurers set premiums based on the likelihood that an individual will make a claim, such that each client will pay a premium commensurate to the risk they represent. Insurers use a variety of sophisticated and objective tools to help them evaluate this risk:

  • Property insurance tools: To determine property insurance premiums, insurers look at factors such as location of the house, age of the roof and responsible personal credit management.
  • Automobile insurance tools: To determine automobile insurance premiums, insurers consider factors such as accidents and convictions, age and gender of the driver and where the driver lives. Insurance companies are also now exploring or using innovative telematics technology as a more accurate way of assessing risk and setting automobile insurance rates. Telematics involves the use of a GPS tracking device in cars that record how people drive, including such things as speed, acceleration and braking. Consumers can reduce their insurance rates by demonstrating good driving habits.

Learn more

  • ​CADRI brochure – Insurance and risk classification, April 2014 {in the process of being revised}

    An overview of how insurance premiums are set and the importance of innovative risk classification tools to provide better solutions to consumers.

Digital and Emerging Technologies

Canadian consumers are driving growth and change in the use of the Internet. In the insurance sector, consumers are using the Internet for research purposes, for online quotes, to compare prices and to buy insurance. These trends are all on the increase. For example, consumers are using the Internet to research insurance with more than half choosing online as their preferred method. Sales resulting from online quotes are increasing as a percentage of overall sales.


For direct relationship insurers, online interaction with customers has become a significant part of the business. The growing sophistication of online technology has allowed companies to respond to consumer demand for convenient and accessible service. While online transactions are most common, mobile interaction is becoming more and more popular.


As electronic commerce thrives and continues to evolve, CADRI believes that:

  • Consumers should be able to compare and access insurance products that meet their needs using the delivery channel and mode of interaction of their choice.
  • The regulatory framework should focus on the quality of consumer outcomes regardless of the mode of interaction or the delivery channel. In this regard, we advocate a principles-based regulatory framework that is flexible to the changing landscape and can be more easily harmonized across jurisdictions.

Learn more


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