FSRA Takes Steps to Safeguard Ontario's Insurance Consumers

Proposed guidance to strengthen corporate governance and manage operational risks

TORONTO, April 17, 2024 /CNW/ - Ontario's financial services regulator (FSRA) is releasing two pieces of guidance for consultation aimed at protecting insurance consumers and promoting a sustainable insurance sector.

These guidance documents, centred on corporate governance and operational risk and resilience, will help elevate industry standards while ensuring the long-term sustainability of insurers.

"Insurers that demonstrate sound corporate governance practices in line with FSRA's proposed Corporate Governance Guidance are more likely to achieve long-term sustainable business performance and safely meet the needs of their policyholders, members, and subscribers," said Mehrdad Rastan, FSRA's Executive Vice President, Credit Union and Insurance Prudential. "FSRA's Operational Risk and Resilience Guidance will support the Insurers' ability to effectively identify, mitigate, and manage operational risks and continue to operate when faced with adverse events, ultimately protecting policyholders, members, and subscribers, and contributing to public confidence in the sector."

To support the proper oversight, management and practices of Insurers, FSRA's proposed guidance sets out clear principles and desired outcomes for both sound corporate governance and operational risk management and resilience.

The proposed guidance is aligned with FSRA's principles-based approach and allows for flexibility and applies proportionality when assessing the effectiveness of Insurers in achieving the intended outcomes.

The two pieces of guidance aim to:

• provide FSRA's interpretation of corporate governance, operational risk management, and resilience requirements and set out common industry practices for Insurers;
• promote effective corporate governance, operational risk management, and resilience for Insurers; and
• highlight FSRA's approach for assessing how effectively Insurers achieve the intended outcomes.

Call for Stakeholder Engagement

FSRA invites stakeholders to actively participate in the consultation process. With a 60-day consultation period, stakeholders are encouraged to provide feedback, ensuring that the guidance reflects diverse perspectives and industry insights. The consultation period will close on June 17, 2024.

Learn more:

• Proposed Corporate Governance Guidance for Ontario-incorporated Insurance Companies and Reciprocal Insurance Exchanges
• Proposed Operational Risk and Resilience Guidance for Ontario-incorporated Insurance Companies and Reciprocal Insurance Exchanges
• Consultation on Corporate Governance and Operational Risk and Resilience Guidance

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.

FOR MEDIA INQUIRIES:

Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario