FSRA’s First Proposed Insurance Rule Released for Public Consultation – the Unfair or Deceptive Acts or Practices (UDAP) Rule
TORONTO, December 18, 2020 - The Financial Services Regulatory Authority of Ontario (FSRA) today launched a public consultation seeking feedback from insurance consumers, industry and other interested stakeholders for its first proposed insurance rule.
The proposed UDAP rule is aimed at making the supervision of insurance more transparent, dynamic, and flexible. The draft rule also focuses on the need for stronger consumer protections by clearly defining outcomes that are unfair or otherwise harmful to consumers.
“We have heard clearly that the current regulation defining an unfair or deceptive act or practice under the Insurance Act is outdated, too prescriptive and a barrier to innovation,” said Tim Bzowey, Executive Vice President, Auto/Insurance Products. “FSRA will use its rule-making authority in this area to better protect consumers and deliver more effective and efficient regulation by taking a principles-based approach.”
The new rule, if approved, would better enable innovation, competition and choice. For example, the new rule would allow insurers to offer their customers incentives including rebates or rewards that meet certain criteria.
FSRA continues to monitor the insurance system and take steps to address misconduct. The UDAP rule applies to insurers, brokers, intermediaries, adjusters and providers of goods and/or services engaged in the insurance sector. It applies to, but is not limited to, health service providers, tow truck operators, vehicle repair shops and automobile storage facilities.
FSRA is holding a 90-day consultation on its proposed rule and is seeking feedback from the general public and all stakeholders. For more information, please visit: FSRA’s First Proposed Insurance Rule Released for Public Consultation – the Unfair or Deceptive Acts or Practices (UDAP) Rule.
Learn more: FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.
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Senior Communications Officer, Corporate Communications
Financial Services Regulatory Authority of Ontario