FSCO identifies consideration of administrative monetary penalties as priority

The Financial Services Commission of Ontario (FSCO) has made implementing administrative monetary penalties a priority.
In its Statement of Priorities & Strategic Directions, FSCO said it will work with the Ministry of Finance to enhance regulatory effectiveness by considering the enforcement tool of administrative monetary penalties in insurance.
Such a system would allow the regulator to levy fines, for example, without having to proceed by way of a quasi-criminal tribunal, as is now required by legislation.
Other priorities identified by the regulator include:
•conducting market conduct audit reviews of compliance with the 2010 auto insurance reforms, including Statutory Accident Benefits;
•working with stakeholders to identify measures addressing fraud and abuse in auto insurance industry;
•undertaking long-term initiatives extending from the 2010 auto insurance reforms – including a new Minor Injury Treatment Protocol, a new catastrophic impairment definition and a closed claims study; and
•performing market conduct review of suitability of product recommendations for insurance.
FSCO said it would be working with the auto insurance industry to conduct a study of closed auto insurance claims.
“Many existing data sources do not provide a detailed breakdown of claims costs,” the report says. “The results of the study will assist industry and government actuaries in properly assessing the impact of past and future auto insurance reforms.”
The market conduct review will determine how the insurance industry is ensuring that consumers are empowered to make informed decisions and are presented with suitable product recommendations.
“The focus of the review will be to understand and assess the process agents use in making recommendations to consumers and the processes in place at insurance companies when developing and distributing products,” the report says.