A group of property and casualty (P&C) insurance industry associations is calling on regulators to make certain temporary measures – implemented in response to the ballooning number of claims the industry is attempting to process in the wake of the summer’s four catastrophic events – recognized and protected under a permanent licensing reciprocity regime.
“Our coalition has been calling on Canada’s regulators to work together to establish a licensing reciprocity regime – meaning if an adjuster is licensed in one province, their license is recognised across the country. As it stands, each Canadian jurisdiction has its own rules and requirements for adjusters. There is simply no reasonable public policy rationale justifying this type of fragmented approach to licensing,” the group states in an open letter to the Canadian Council of Insurance Regulators (CCIR) and to Canadian Insurance Services Regulatory Organizations (CISRO).
Rapid deployment
“The ability to rapidly deploy adjusters is an increasingly vital component of insurers’ claims response. While the recent post-catastrophe allowances made by regulators are welcome, they are an imperfect system.”
In the wake of flash flooding in Toronto, the Jasper Wildfire Complex, hailstorms in Calgary and after Hurricane Debby pummeled parts of Quebec – all in the span of 24 days – regulators implemented various accommodations, including expedited adjuster licensing, increasing the amount that unlicensed claims employees may handle and allowing insurers to use claims adjusters from outside the province.
Organizations represented in the open letter include the Insurance Bureau of Canada, the Canadian Association of Direct Relationship Insurers, the Canadian Association of Mutual Insurance Companies, the Canadian Independent Adjusters’ Association, Canadian Insurance Claims Managers Association, Insurance Brokers Association of Canada and the Omnia Adjusters Cooperative.
“Our organizations remain prepared to continue to engage constructively with CISRO to find solutions that better serve the public interest,” they state. “As keen monitors of insurance market trends, regulators can play a critical role in working with the industry and government to enhance Canada’s disaster readiness.”
