NEWS |
March 18, 2024 The p&c sector should be treated separately from other financial institutions, the association representing direct marketers told Ontario’s regulator on protecting vulnerable consumers. In its March 8 submission to the Financial Services Regulatory Authority of Ontario, the Canadian Association of Direct Relationship Insurers suggested a definition change. “Although FSRA’s proposed approach to strengthening protection of vulnerable consumers covers all its regulated sectors, CADRI submits that FSRA should recognize that the risks facing property and casualty customers are different than those facing life and health customers, mortgage broker clients or deposit-taking credit union members.” CADRI said that its members have already implemented policies to ensure that all customers are treated fairly, having embraced the Canadian Council of Insurance Regulators’ fair treatment of customers guidance, and subsequently FSRA’s adoption of it. In its submission, CADRI said auto and home insurance products are similar from company to company and easier to understand than more complex financial instruments with multi-year commitments. And the risk of harm is more limited when considering p&c, the association said. “This insurance is a risk mitigation tool; the risks associated with vulnerable consumers might be not getting the right coverage or needing to pay over a period,” CADRI’s submission said. “There are no assets or funds that someone with malicious intent may seek to access. This distinguishes p&c from other financial sector products.” The association recommended against creating a stand-alone technical advisory committee for people who need more support. CADRI also said the current FSRA definition of a vulnerable consumer as “someone who is at higher risk of experiencing financial mistreatment, hardship, or harm due to various factors and personal circumstances” may be too broad. Some would say that “all of Ontario’s 10 million drivers would have found themselves captured by the definition at least once in their lives,” CADRI said. “It should be generally up to the customer to signal the need for additional support.” (Copyright Thompson’s World Insurance News. |
March 13, 2024 |
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February 9, 2024
Our pre-budget consultation submission asks government to let Ontario customers allow insurers to use their credit ratings when calculating rates