IBC 2011 priorities include responding to increased regulation, sustaining momentum of auto reforms

Canada’s private insurance companies are calling for reduced regulatory red tape, while at the same preparing to respond to a reality of increased regulation.
Responding to increased regulation is among the Insurance Bureau of Canada (IBC)’s five strategic priorities in 2011. The IBC unveiled its strategic plan at its annual general meeting in Toronto on Apr. 26.
“Regulation is a fact of life for P&C insurers,” IBC chairman Rowan Saunders said in a speech at the AGM. “All we can do is hope that governments regulate less, trust more and acknowledge the costs of regulation that it imposes on insurers and consumers alike.”
Sometimes the best regulatory approach is in fact less regulation, IBC president and CEO Don Forgeron pointed out.
“We need to remember that it was a combination of sound regulatory approaches and a Canadian financial sector with a history of acting prudently in volatile times that kept Canada’s boat afloat through the recent economic crisis,” Forgeron said. “It is within this context that IBC will work to advance risk-based and lowest-cost regulatory approaches in 2011 and beyond.”
Protecting the private sector delivery of auto insurance, with a focus on Ontario auto, is another strategic priority in the IBC’s plan.
Noting Ontario’s implementation of the September 2010 auto insurance reforms, in addition to anti-fraud and other measures announced in the provincial government’s March 2011 budget, there is definite momentum surrounding the auto insurance file, Forgeron said.
“IBC understands that we need to maintain this current momentum in order to create the affordable and sustainable system that Ontarians deserve,” he said. “To that end, we are committed to keeping elected officials focused on this file until we achieve what has eluded us for far too long.”
Other priorities identified in the strategic plan include:
• combating insurance fraud and crime;
• championing climate adaptation; and
• promoting insurance consumer education and confidence.