FSRA Announces a Common Approach to Treating Insurance Customers Fairly
TORONTO, ON – December 22, 2020 – The Financial Services Regulatory Authority of Ontario (FSRA) is releasing guidance to provide standards for the fair treatment of customers (FTC) in the Ontario insurance sector. The new guidance will come into effect on January 1, 2021.
The guidance will:
Harmonize FTC practices in Ontario with the guidelines created by Canada’s insurance regulatory bodies, the Canadian Council of Insurance Regulators (CCIR) and Canadian Insurance Services Regulatory Organizations (CISRO);
Promote the principles that support fair customer treatment throughout the lifecycle of insurance contracts; and
Reduce burden on licensees while setting service delivery expectations for insurers, agents and customers.
Helping insurers and agents treat customers fairly using a common approach in Ontario both promotes high standards of business conduct in the sector and protects the interest of insurance customers.
FSRA recently completed a consultation on the proposed guidance. Industry and consumer stakeholders expressed general support of following CCIR and CISRO’s Fair Treatment of Customers guidance. Stakeholders appreciated FSRA’s intention to clarify compliance guidelines after the industry had raised questions about the jurisdictional requirements.
FSRA is a member of CCIR, the Canadian Council of Insurance Regulators, and CISRO, the Canadian Insurance Services Regulatory Organizations. One of the goals of both national organizations is to ensure a consistent approach to consumer protection and common regulatory issues.
The mortgage brokering, credit union, and loan and trust sectors will continue to follow the Treating Financial Services Consumers Fairly guidance, created by the Financial Services Commission of Ontario (FSCO), now inherited by FSRA.
The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more @ www.fsrao.ca