January 29, 2003 by Canadian Underwriter
Ontario’s insurance regulator is giving p&c insurers a year’s time to get their books in order for the new claims discounting practice. In a bulletin this week, the Financial Services Commission of Ontario (FSCO) says that the reporting of claims discounting is optional for 2003 quarterly reports and will not become mandatory until 2003 yearend reporting.
The federal regulator, the Office of the Superintendent of Financial Institutions (OSFI), is requiring such reporting from the beginning of 2003. While Ontario wants to take a harmonized approach in requiring discounting, FSCO says it is “fully cognizant of the fact that financial reporting changes need to be made in an orderly fashion”.
Insurers have protested against claims discounting from the outset, noting that such reporting is not standard in financial markets.