NEWS |
November 29, 2024 Thompson’s News Article: Allow credit scores in auto policies, CADRI urges FSRA The Canadian Association of Direct Relationship Insurers has called on the Financial Services Regulatory Authority of Ontario to rethink its stance on allowing the use of credit scores in auto insurance ratings. In its feedback on FSRA’s proposed Guidance for Automobile Insurance Rating and Underwriting Supervision, CADRI supported the move toward an accreditation process but underscored the need to lift the prohibition on credit scores as a rating factor. CADRI argued that credit scores are a reliable and fair predictor of insurance claims, offering potential savings to Ontarians with strong credit histories. The organization pointed out that provinces like New Brunswick already permit the use of credit scores in auto insurance calculations and called for Ontario to follow suit. The association further urged FSRA to publish findings from the regulator’s Pinnacle Actuarial Resources study on credit scores, suggesting this transparency could pave the way for regulatory changes. CADRI noted in its submission that Ontario consumers can consent to the use of their credit information when negotiating p&c insurance in the province, which has been the case for decades. “Most Ontarians have good credit histories and could benefit from a discount on their premiums,” the association said in its submission. In its submission, CADRI emphasized the significant investments insurers must make to align their processes with FSRA’s framework. To justify these efforts, the organization called for clear benefits for accredited insurers, such as streamlined rate review processes and minimized disruptions to accreditation status unless there are significant changes to business practices. CADRI raised concerns about FSRA’s approach to fair consumer outcomes, particularly in balancing pricing accuracy with accessibility and the regulator’s inclusion of profitability as a measure of fairness. CADRI argued that profitability metrics are inconsistent with a principles-based regulatory framework and could discourage competition, ultimately reducing consumer choice. ────────── (Copyright Thompson’s World Insurance News.) November 15, 2024 October 7, 2024 CADRI supports expanded options for use of electronic communications in Ontario
CADRI flags unintended consequences of Manitoba’s proposed new agency/firm licence
Direct insurers are asking the Ontario government to give companies greater control over how they design and offer auto coverages to their customers. “However, we are concerned with the prescriptive approach that the government is taking in the presentation of those options to existing clients versus new clients,” Mr. Beechey said in a submission to the province’s Ministry of Finance in response to a request for feedback on proposed amendments to Insurance Act and Ontario Regulation 34/10 of the Statutory Accident Benefits Schedule. (Copyright Thompson’s World Insurance News.) September 10, 2024 We ask for a less prescriptive approach to allowing Ontarians to choose benefits packages that best suit their needs and budgets September 9, 2024 Insurance companies seek reforms to allow insurance adjusters to more easily work in other provinces after disasters READ THE GLOBE AND MAIL ARTICLE – if you have a subscription September 5, 2024 CADRI joins other industry leaders calling for licensing reform in light of new extreme weather norms June 24, 2024 We continue to call for over-arching reform of the auto insurance system in Alberta READ THE SUBMISSIONMay 31, 2024 CADRI supports recommendations by the AIRB that would lead to the simplification of Alberta’s Grid Rating System May 22, 2024 CADRI urges Manitoba council to rein in feesThe Canadian Association of Direct Relationship Insurers has concerns about the Insurance Council of Manitoba’s proposed fee increases for examination fees, general licences for individuals and agencies and the list of agents. (Copyright Thompson’s World Insurance News.) |
May 15, 2024
We ask Manitoba to ensure licencing fee increases contribute to better services for customers
March 18, 2024 The p&c sector should be treated separately from other financial institutions, the association representing direct marketers told Ontario’s regulator on protecting vulnerable consumers. In its March 8 submission to the Financial Services Regulatory Authority of Ontario, the Canadian Association of Direct Relationship Insurers suggested a definition change. “Although FSRA’s proposed approach to strengthening protection of vulnerable consumers covers all its regulated sectors, CADRI submits that FSRA should recognize that the risks facing property and casualty customers are different than those facing life and health customers, mortgage broker clients or deposit-taking credit union members.” CADRI said that its members have already implemented policies to ensure that all customers are treated fairly, having embraced the Canadian Council of Insurance Regulators’ fair treatment of customers guidance, and subsequently FSRA’s adoption of it. In its submission, CADRI said auto and home insurance products are similar from company to company and easier to understand than more complex financial instruments with multi-year commitments. And the risk of harm is more limited when considering p&c, the association said. “This insurance is a risk mitigation tool; the risks associated with vulnerable consumers might be not getting the right coverage or needing to pay over a period,” CADRI’s submission said. “There are no assets or funds that someone with malicious intent may seek to access. This distinguishes p&c from other financial sector products.” The association recommended against creating a stand-alone technical advisory committee for people who need more support. CADRI also said the current FSRA definition of a vulnerable consumer as “someone who is at higher risk of experiencing financial mistreatment, hardship, or harm due to various factors and personal circumstances” may be too broad. Some would say that “all of Ontario’s 10 million drivers would have found themselves captured by the definition at least once in their lives,” CADRI said. “It should be generally up to the customer to signal the need for additional support.” (Copyright Thompson’s World Insurance News.) |
March 13, 2024 |
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February 9, 2024
Our pre-budget consultation submission asks government to let Ontario customers allow insurers to use their credit ratings when calculating rates