Thompson’s News: CADRI welcomes N.B. licensing alignment (Copyright Thompson’s World Insurance News. Not to be redistributed by individual recipients.)
The Canadian Association of Direct Relationship Insurers has welcomed proposed amendments in New Brunswick that would align the province’s licensing framework with other jurisdictions.
In a letter to the Financial and Consumer Services Commission of New Brunswick late last month, CADRI supported many of the changes recommended to the province’s ‘Rule INS-001,’ which governs insurance intermediaries.
The amendments include updated definitions for licence levels and references to the Canada Free Trade Agreement, both of which CADRI sees as progress in reducing internal trade barriers.
“In general, CADRI advocates that provinces and territories across Canada recognize licensing equivalencies in other jurisdictions and grant reciprocity for those other licences,” CADRI said.
“This aligns with the current national conversation regarding the elimination of interprovincial trade barriers, which is the ultimate goal. In large part, the proposed amendments are a step towards the recognition of — and reciprocity between — licences that CADRI seeks.”
The association said removing restrictions on which lines of coverage Level 1, 2, and 3 agents can offer would help create equivalency with other provinces and allow agents based in New Brunswick to serve customers across the country.
CADRI also welcomed the commission’s reference to the CFTA as a sign of openness to broader labour mobility in the insurance sector.
The association said it supports adding the Chartered Insurance Professional designation as ground for waiving certain licensing requirements and noted approval of changes to reduce supervision of Level 2 agents.
However, CADRI asked the commission to consider reducing the 12-month supervisory requirement for Level 1 agents to 90 days, aligning with practices in Quebec.
One concern was raised regarding fee inconsistencies.
While adjusters and brokers changing firms are not charged an application fee, agents changing sponsors must still pay. CADRI said that is not equitable and it has requested clarification.
The association has also recommended that privacy-related regulatory requirements, including Continued from front page those for cyberattacks, focus on intermediary entities rather than individual agents and align with federal reporting requirements already overseen by agencies like the Office of the Superintendent of Financial Institutions.
CADRI reinforced its broader call for full licence reciprocity across Canada, allowing agents licensed in one province to work in another without added licensing steps.
It encouraged New Brunswick to continue engaging with other regulators and the Canadian Insurance Services Regulatory Organizations to promote national harmonization.
April 29, 2025
CADRI approvesNew Brunswick’s support for cross-jurisdictional licensing
CADRI unclear on FSRA accreditation guideline (Copyright Thompson’s World Insurance News. Not to be redistributed by individual recipients.)
The Financial Services Regulatory Authority of Ontario is advancing its new Automobile Insurance Rating and Underwriting Supervision Guidance, but insurers say key details remain unclear.
In its submission to FSRA on Chapter 4 of the proposed guidance, Geoffrey Beechey, chair and CEO for the Canadian Association of Direct Relationship Insurers, said the association supports.
FSRA’s insurer accreditation program, which offers key benefits, including streamlined filings, faster rate change approvals and the retirement of outdated rules.
“The promise of a one business day turnaround for insurers who have accreditation and fast-track processes for rate changes is transformational,” Mr. Beechey said.
These comments are further to comments the association made in November on Chapters 1-3 of the proposed guidance.
FSRA’s proposed accreditation system allows insurers to voluntarily demonstrate adherence to ‘fair consumer outcomes’ and sound governance standards.
CADRI supports accreditation but argues it must deliver clear advantages to justify the investment. It calls for streamlined filings in at least 90% of cases rather than the proposed 50%.
The association also opposes using profitability as a fairness measure, warning it could deter participation and conflict with principles-based regulation.
CADRI said that while Chapter 4 is a step forward, it lacks critical details on fast-track filing criteria and documentation, which FSRA indicates will be housed in a filing manual. Chapter 4 frequently references the filing manual as complementary, yet the industry has not had an opportunity to review it.
“An absence of understanding about the filing manual creates some uncertainty for the insurance industry. For instance, we expect that the eligibility criteria for the fast-track filing process, which is likely set out in the filing manual, would reflect the comprehensiveness of FSRA’s guidance, including Chapter 2 on operations, controls and governance.”
February 10, 2025 CADRI approves FSRA’s moves to fast-track accreditation for qualifying insurers and streamline rate filing processes
