NEWS

October 7, 2024

CADRI supports expanded options for use of electronic communications in Ontario

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September 26, 2024

CADRI flags unintended consequences of Manitoba’s proposed new agency/firm licence

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September 13, 2024

Thompson’s News Article: CADRI seeks changes to proposed Ontario reforms

Direct insurers are asking the Ontario government to give companies greater control over how they design and offer auto coverages to their customers.

Geoffrey Beechey, chair and CEO of the Canadian Association of Direct Relationship Insurers, said they support reforms proposed earlier this year that will give consumers more choices when purchasing insurance, including benefit levelss.

“However, we are concerned with the prescriptive approach that the government is taking in the presentation of those options to existing clients versus new clients,” Mr. Beechey said in a submission to the province’s Ministry of Finance in response to a request for feedback on proposed amendments to Insurance Act and Ontario Regulation 34/10 of the Statutory Accident Benefits Schedule.

CADRI said it would prefer that the government take a principles-based approach, rather than using a strict rules-based system, to allow organizations to innovate and meet regulatory goals at a lower cost.

The association also highlighted the importance of prioritizing consumer benefits to promote affordability, innovation and competition in the marketplace.

“The government is proposing a policy that directs insurance companies to make their existing customers, who may wish fewer accident benefits, opt out of the more comprehensive insurance benefits package they may have, in order to enjoy more optionality,” CADRI said in its submission.

“On the other hand, the government is proposing that an insurer’s new customers be required to opt into benefits that are additional to those in a basic or standard accident benefits package.

“It is unusual for the government to take such a prescriptive approach to how insurers present optional coverage. Currently, the government does not dictate how insurers present the various limits for liability protection or the often-purchased collision and comprehensive.”

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(Copyright Thompson’s World Insurance News.)

September 10, 2024

We ask for a less prescriptive approach to allowing Ontarians to choose benefits packages that best suit their needs and budgets

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September 9, 2024

Insurance companies seek reforms to allow insurance adjusters to more easily work in other provinces after disasters

READ THE GLOBE AND MAIL ARTICLE – if you have a subscription

September 5, 2024

CADRI joins other industry leaders calling for licensing reform in light of new extreme weather norms

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June 24, 2024

We continue to call for over-arching reform of the auto insurance system in Alberta

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May 31, 2024

CADRI supports recommendations by the AIRB that would lead to the simplification of Alberta’s Grid Rating System

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May 22, 2024

CADRI urges Manitoba council to rein in fees

The Canadian Association of Direct Relationship Insurers has concerns about the Insurance Council of Manitoba’s proposed fee increases for examination fees, general licences for individuals and agencies and the list of agents.

In a recent letter, CADRI acknowledged the council’s status as a self-funded agency, noting that 44% of licence fees, 15% of examination fees and 100% of disciplinary fines are remitted to the government of Manitoba quarterly.

CADRI also recognized that the council’s fee schedule has remained unchanged for 20 years.

The association urged the council to review its budget and reconsider the planned fee increases.

“We encourage the council to be transparent about the benefits that agent and insurer fees contribute to ensuring that Manitobans receive insurance advice from reliable, qualified agents,” association chair and CEO Geoffrey Beechey said. “We would be pleased to explore our position in further detail and consider other options the council may be considering.”

CADRI said in the letter that it appreciated the council’s decision to decrease fees for amending, transferring or reinstating a licence. However, it pointed out that the proposed fee increases would place Manitoba at the higher end of the fee spectrum compared to similar agencies across Canada.

CADRI members, comprising national and international companies, employ licensed agents across Canadian jurisdictions. These agents often secure initial licences in their home province and then obtain and renew licences in other jurisdictions, incurring various fees.

The proposed fee increases would result in higher costs for CADRI members serving insurance customers in Manitoba, costs that insurance consumers would ultimately bear, the association said.

(Copyright Thompson’s World Insurance News.)

May 15, 2024

We ask Manitoba to ensure licencing fee increases contribute to better services for customers

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March 18, 2024

Thompson’s News Article: CADRI to FSRA: P&C needs separate regulation

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

We suggest to FSRA that existing guidance on fair treatment of individuals needing additional assistance is sufficient for P&C customers

READ THE SUBMISSION

February 13, 2024

Thompson's News article: CADRI asks to use credit scores for Ontario auto

The Canadian Association of Direct Relationship Insurers wants its members to be allowed to use credit scores in auto insurance ratings in Ontario.

In its pre-budget consultation submission, the association said lower credit scores would translate into lower insurance costs for Ontario drivers.

“We seek automobile insurance that is priced fairly for Ontario’s drivers and a system that sustains competitive insurers to provide Ontario families with greater choice,” the association said in its submission. “To achieve these goals, we recommend a regulatory framework for auto insurance which is principle-based, outcome-focused and efficient.”

CADRI acknowledged that the Financial Services Regulatory Authority of Ontario has been revising its portfolio of rules to ensure that they are consumer-friendly, but pointed out that the provincial government, in its 2019 budget, recommended that ‘drivers should have the choice to lower their premiums by allowing insurers to consider their credit history.’

“We support the Ontario government moving to the next stage in its strategy and providing Ontario drivers with this opportunity.”

The association said that how an individual manages their finances is more predictive of whether they’ll make an insurance claim than other traditional risk variables.

“Credit scores are widely recognized as valid tools to predict insurance claims,” it said.

In provinces like Alberta and Nova Scotia, where credit information can be considered in auto insurance pricing, consumers typically have the option to consent to its use. However, if consumers decide not to provide consent, they won’t be refused insurance coverage.

(Copyright Thompson’s World Insurance News.)

February 9, 2024

Our pre-budget consultation submission asks government to let Ontario customers allow insurers to use their credit ratings when calculating rates

READ THE SUBMISSION

CANADIAN ASSOCIATION OF DIRECT RELATIONSHIP INSURERS (CADRI)

301-250 Consumers Road
Toronto, Ontario M2J 4V6

Phone: 416 773-0101 Fax: 416 495-8723

Email: coordinator@cadri.com