FSRA Stakeholder Advisory Committee for Property & Casualty Insurance

Summary of the Meeting of November 22, 2021
Via Teleconference

Stakeholder Advisory Committee members present:

Lynn Anderson – Economical
Joseph Carnevale – IBAO
Koker Christensen – Fasken Martineau DuMoulin
Kim Donaldson – IBC
Stephen A. Fuller – Travelers
Christian Jobidon – Desjardins
Marc Lipman – AIG
Julie Nolette – Intact
Karin Ots – Aviva
G. Beechey – CADRI

Board members present:

Joanne De Laurentiis – Chair of the Board
Barbara Bellissimo – Director
Kathryn Bouey – Director
Joseph Iannicelli – Director
Dexter John – Director
Stewart Lyons – Director
Lawrence Ritchie – Director
Brent Zorgdrager – Director

Management members present:

Mark White – Chief Executive Officer
Jordan Solway – Executive Vice President, Legal & Enforcement
Stephen Power – Executive Vice President, Corporate Services
Tim Bzowey – Executive Vice President, Auto/Insurance Products
Huston Loke – Executive Vice President, Market Conduct
Glen Padassery – Executive Vice President, Policy & Chief Consumer Officer
Randy Nanek, Chief Financial Officer
Judy Pfeifer – Chief Public Affairs Officer
Heather Kay – Senior Manager, Strategic Policy
Erica Hiemstra – Head, Insurance Conduct

Corporate Secretary’s Office:

Ligia Simoes – Assistant Corporate Secretary
Demola Oloyede – Board Administrator
Clint Savary – Contingent Worker

General comments

The Chair of the Board called the meeting to order and provided introductory remarks.

The Committee thanked the Board and FSRA for their willingness to engage with the Committee and industry and looks forward to continuing to build the relationship, particularly regarding industry knowledge. The Committee recognized that FSRA has had many positive accomplishments, including further rate regulation reform, consumer education and innovation regarding the regulatory regime, an area which they would encourage further enhancements.  The Committee feels there is an opportunity to make Ontario a world class auto insurance market, which will help consumers and increase industry competition.

The Committee was disappointed that there have not yet been enhancements to the Health Claims for Auto Insurance (HCAI) system to address virtual delivery of service though they are hopeful important changes will be forthcoming given initiatives noted in FSRA’s Statement of Priorities.  It was noted there has been a change from a rules based to principles based regime and members are interested to see how this will be further reflected in the regulator’s activities.

The Committee remains concerned about the high cost of insurance in Ontario.  They welcomed the growth in optionality for consumers and look forward to the Auto Insurance Products Technical Advisory Committee (“TAC”) as a way of making recommendations to improve service delivery and reduce costs for consumers, though they note that consumers are still paying for many coverages they are not aware of or do not need (particularly health).

The Committee raised the issue of Fair Treatment for Customers and highlighted the two main issues as third-party fraud and dispute resolution.  The Committee noted it would be helpful if FSRA had more authority to manage these issues.  Both are delayed by the current need for a court process, creating lengthy delays, and could be enhanced with an arbitrator or governing body.  FSRA acknowledges their authority is split between the government and regulator on this matter.

There was some discussion regarding data from a principles-based perspective.  The Committee would like to continue to work with FSRA as the agency builds data capacity.  Questions were asked about the scope of innovation and what is management’s perspective on these innovations.  The Committee also inquired about tech and how tech changes will affect the industry.

Regarding commercial insurance affordability and availability, it was noted that FSRA and the Board could facilitate productive discussions with the industry and government.  The Committee feels, and FSRA agrees, that parties trying to maintain status quo in the industry often negatively impact the industry, unconsciously or not.  The industry has offered assistance to business owners but could promote its activities better and there was some discussion regarding a joint effort from brokers and insurers.

The Committee had questions with respect to the allocation of costs for the Innovation Office, specifically how market entrants will be treated. FSRA management advised that costs are currently and will remain allocated across all sectors, although that may change in the future.