December 4, 2002 by Canadian Underwriter
Despite the introduction of new legislation to deal with some of the issues plaguing Ontario’s auto insurance market, and the decision not to open up B.C.’s auto market to competition, auto remains a top priority for the Insurance Bureau of Canada (IBC) in the year ahead. At the IBC’s annual general meeting, CEO Stan Griffin noted that most provinces are currently reviewing their auto insurance legislation. “Much of it, I am pleased to say, is being driven by the efforts of IBC,” says Griffin. “We recognize that product reform is critical to keeping costs down and governments are now beginning to agree.”
Health care and road safety initiatives within the realm of auto insurance are also key areas, particularly with the recent launch of the IBC’s three-year headrest adjustment campaign.
Also, a study on the claims experience of medically-at-risk drivers is underway.
And auto theft is a target, with a current study being undertaken on the link between auto theft, organized crime and terrorism. “Stolen cars have become one of Canada’s leading exports. To help put a stop to it, we are negotiating additional international agreements that will lead to more and more stolen vehicles being recovered.”
Regulation, as always, will be a focus, including encouraging further harmonization among provinces and with the federal system. “That’s one reason IBC is now developing a model provincial regulatory regime with a uniform framework that can be applied in every province,” says Griffin.
He adds that the IBC is working with the Office of the Superintendent of Financial Institutions (OSFI) on international capital requirements. As well, the upcoming implementation of privacy laws to the insurance industry will be a topic of discussion, including ensuring harmonization among potential provincial legislation and the federal act.