FSCO outlines priorities for 2006

Developing principles concerning conflict of interest, developing a model for privilege and whistle-blowing protection and streamlining agent and broker licensing in Ontario are among the Financial Services Commission of Ontario (FSCO)’s priorities for 2006.
Section 11 of the FSCO Act requires the commission to deliver to the Minister of Finance and publish a statement setting out the proposed priorities of the commission for the fiscal year.
As posted on its Web site, FSCO’s priorities for 2006 are to:
Continue its work with the Canadian Insurance Services Regulatory Organizations (CISRO) to finalize the development of principles on the management of conflicts of interest, and continue to monitor the achievement of these principles in the insurance industry.
Implement a reliance reciprocal licensing model to streamline agent and broker licensing across Canada. The reliance model would build on harmonization in three areas: application forms, continuing education and errors and omissions insurance.
Continue to work on a model for privilege and whistle-blower protection for documents created as part of insurer risk self-assessments and persons who volunteer information about an insurer, insurance agent, insurance broker or insurance adjuster engaged in wrongdoing.
Develop and put into place risk-based examination processes for mortgage brokers and insurance companies. The objective of these assessments is to evaluate the safety and soundness of companies to enhance consumer protection and identify ways to improve market efficiency.
Evaluate the Statutory Accident Benefits Schedule, which determines accident benefits that can be claimed from an insurance company for injuries sustained in an automobile accident, as part of a five-year review of the current automobile insurance system.
Support the development of the Health Claims for Auto Insurance (HCAI) database, an electronic system that allows for the electronic exchange of health claim information between health care providers and insurance companies, supporting the need for access to timely, accurate data to monitor the auto insurance system.
Review Regulation 283/95, Disputes Between Insurers, to ensure that claimants are appropriately protected and have access to statutory accident benefits where two or more insurers are disputing which one has the responsibility to pay accident benefits.
Review and work with the Facility Association to develop proposals outlining possible changes to residual market or risk-sharing pool mechanisms.
Develop proposed “Prudent Portfolio” rules to provide increased flexibility to provincially incorporated insurers in their investment decisions, while at the same time maintaining adequate protection for the public.
Develop a single online destination for the processing of licensing applications and renewals from mortgage brokers and insurance agents.
Conduct additional training for auto insurers on the use of the ARCTICS system to facilitate the submission of more auto insurance filings by electronic means.