TORONTO, May 26, 2017 /CNW/ - The deadline for insurers across Canada filing information through the Annual Statement on Market Conduct (Annual Statement) came on Monday, May 1. By the end of that day, the Canadian Council of Insurance Regulators (CCIR) reported that 90% of all insurers required to file had completed the Annual Statement on time. By the end of that week, the rate was up to 94%. If necessary, regulatory action can be taken against any noncompliant insurer.
"We were pleased with the rate of compliance," CCIR Chair Patrick Déry said. "Overall, the industry has responded positively to the new information return and collaborative approach CCIR members have adopted for information gathering," he added.
The Annual Statement was developed as a harmonized approach for the country's insurance regulators to better understand practices in the insurance market. It provides regulators across the provinces and territories with vital information on insurer operations and conduct; information that can be used to identify not only trends, but also potential risks to consumers. "The information we are collecting will help Canada's insurance regulators to be more proactive," Mr. Déry added. "We will be in a better position to see and respond to potential risks and concerns before consumers are impacted."
The provincial and territorial insurance regulators worked together through the CCIR to develop the Annual Statement as a common information return for Canadian insurers. By doing so, regulators will receive consistent information and develop a comprehensive understanding of the country's marketplace. In addition, the harmonized approach means that insurers operating in more than one province or territory file only one return, sparing them from having to respond to similar information requests from multiple regulators.
To coordinate the harmonized approach, CCIR members entered into service agreements with the Autorité des marchés financiers (AMF) to collect and manage the data on their behalf. "This is another step in the increasing cooperation and information sharing among CCIR members," Mr. Déry noted. "The Annual Statement builds upon the Framework for Cooperative Market Conduct Supervision in Canada the CCIR developed in 2015."
For the first year, the CCIR limited the number insurers required to complete the Annual Statement. Ultimately, the regulatory authorities expect that all insurers operating in Canada will be required to complete the Annual Statement. Details on the insurers that will be expected to file next year can be expected in the coming months. In addition, the CCIR has stated that the content and the information sought through the Annual Statement is expected to evolve over time. The changes expected for next year will be limited to increasing clarity as the questions and information being filed will remain the same.
Further information on the Annual Statement is available on the CCIR's website (www.ccir-ccrra.org).
About the CCIR:
The Canadian Council of Insurance Regulators is a national association of insurance regulators that traces its roots back to 1914. The mandate of the CCIR is to enhance insurance supervision and regulation to serve the public interest and to foster increased cooperative supervision and information sharing among regulatory authorities.
SOURCE Canadian Council of Insurance Regulators (CCIR)
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