FSRA Stakeholder Advisory Committee for Property & Casualty (P&C) Insurance

Summary of the Meeting of November 26, 2019
At the FSRA Offices, 5160 Yonge Street, 14th Floor 

Stakeholder Advisory Committee Members Present:

Lynn Anderson – Economical
Joseph Carnevale – IBAO
Koker Chistensen – Fasken Martineau DuMoulin
Kim Donaldson – IBC
Stephen A. Fuller – Travelers
Lisa Guglietti – Cooperators
Christian Jobidon – Desjardins
Marc Lipman – AIG
Julie Nolette – Intact
Karin Ots – Aviva
Alain Thibault – CADRI

Board Members Present:

Bryan Davies – Chair of the Board
Kathy Bouey – Director
Joanne De Laurentiis – Director
Brigid Murphy – Director
Lawrence Ritchie – Director
Brent Zorgdrager – Director

Management Members Present:

Mark White – Chief Executive Officer
Glen Padassery – EVP, Policy
Stephen Power – EVP, Corporate Services
Stuart Wilkinson – Director, Auto Insurance Policy

Corporate Secretary’s Office

Alena Thouin – Corporate Secretary and Deputy General Counsel
Margaret Kingerski – Assistant Corporate Secretary

General Comments

The Committee advised that it was generally pleased with the change in culture at FSRA, its willingness to consult and to review legacy processes. It was noted that there is support for FSRA having oversight of all service providers in the auto insurance sector.

The Committee noted that climate change is of significant concern in the sector.

Feedback on F2020-2021 Draft Priorities and Business Plan

The Committee provided feedback with respect to FSRA’s F2020-2021 Draft Priorities and Business Plan. It supported the approach to guidance but would like to see a more direct consultation with industry experts. The Committee also supported FSRA’s transition towards a principle-based regulator. It was noted that consumer education is critical, particularly given the government’s commitment to auto insurance reform. Transformation is only possible if consumers understand why. The Committee also noted that the “take all comers” approach to insurance requires refinement and the issue needs to be thoroughly understood before enforcement is considered.

The Committee recognized that much work has been completed with respect to reducing inherited guidance and it would like to see more. The Committee also recommended that it have an opportunity to comment on any new guidance that is developed.

The Committee reflected its support for fraud reduction and noted that the licensing regime could be of greater assistance in this area. Health service provider colleges are perceived as slow to act respecting discipline of their members. It was also noted that tow truck and auto repair shops are another source of fraud in the sector. The Committee added that their sector is restricted in its ability to effectively investigate fraud as a result of Canadian privacy laws. The sector is interested in a “safe harbour” that would permit necessary investigation without exposure to litigation. FSRA could support this initiative.

It was noted that the budget increase of 2% was reasonable. However, the Committee would like to see more resources allocated to auto insurance.