Labour mobility must be improved if the insurance industry is to respond quickly and efficiently to natural disasters. To help speed up claims processing during such events, Canadian regulators have issued new guidelines aimed at expediting the licensing process for adjusters during crisis situations.
In mid-August, the Canadian Insurance Services Regulatory Organizations (CISRO) released a document entitled Principles for Adjuster Authorization During Natural Catastrophes and Disasters. These principles were developed by a dedicated committee tasked with proposing solutions to promote regulatory flexibility and adjuster mobility during emergencies.
By publishing these principles, CISRO aims to “to facilitate timely deployment of qualified adjusters while maintaining oversight that protects consumers.”
The organization emphasizes the importance of technical competence among adjusters, along with a commitment to fair treatment of customers. In September 2024, a coalition of industry groups called on provincial regulators to improve interprovincial mobility during crisis periods.
Seven key principles
The principles submitted to regulators are intended to increase the capacity of claims adjusters to handle claims more effectively during catastrophes:
Consumer Outcomes: Regulatory responses should prioritize timely service to policyholders and minimize procedural delays that could hinder recovery efforts.
Clarity and transparency: To reduce confusion and administrative burden during a crisis, licensing procedures must be clear, accessible, and consistent. Supporting guides should use plain language.
Regulatory agility: Licensing protocols must be flexible enough to enable a quick response while preserving oversight. Temporary exemptions would allow faster deployment of adjusters from other provinces or territories. Depending on the circumstances, unlicensed individuals could be authorized to act under the supervision of a qualified professional.
Interjurisdictional coordination: Provinces and territories should adopt harmonized or mutually recognized criteria for declaring a natural disaster, enabling a faster collective response.
Proportional oversight: Post-disaster, the initial regulatory flexibility should be followed by appropriate review to confirm that consumer protection and regulatory compliance were upheld.
Innovation and preparedness: Continuous improvement in licensing procedures should be informed by the lessons learned from past major catastrophes, helping to redefine response strategies for future events.
Mobility: While respecting legislative differences across jurisdictions, practical coordination and mutual recognition are encouraged. Rather than seeking full harmonization, this pragmatic approach can lead to faster progress. A competency-based model for recognizing credentials is seen as a key step toward broader workforce mobility.
Brokers support more mobility
Insurance Portal reached out to members of the industry coalition that voiced its concerns in September 2024.
The Insurance Brokers Association of Canada (IBAC) continues to support efforts to ensure the most effective response possible to natural disasters. According to CEO Peter Braid, CISRO’s principles reflect many of the Coalition’s original recommendations. “IBAC welcomes the improvements to the temporary licensing process and a more consistent approach to catastrophe declarations across the country,” says Braid.
“While excellent progress is being made, there is still an opportunity for more fundamental reform by establishing a permanent, fully reciprocal licensing regime that will improve labour mobility,” he adds.
IBAC also insists that efforts to increase labour mobility should include brokerage firms. “This represents a priority for our member associations and their brokerage members, who are currently dealing with the existing regulatory and administrative burdens of obtaining multiple licences for brokers who operate in more than one province,” Braid notes.
IBAC believes that mutual recognition and reciprocity can be achieved while respecting jurisdictional differences. “Reciprocity would also reduce red tape in the administration of licensing. Considering the current geopolitical context and the emphasis that political leaders are placing on reducing internal barriers, we believe this is an unprecedented opportunity to collaborate with provincial regulators to achieve this goal. Canadian brokers would benefit from a more efficient and streamlined process in this regard,” concludes Braid.
Industry reaction
At the Insurance Bureau of Canada (IBC), spokesperson Anne Morin confirms that CISRO’s principles incorporate many of the Coalition’s recommendations—particularly those concerning the simplification and clarification of temporary licensing procedures, enhanced mobility during disasters, and alignment of disaster declaration criteria.
Despite these improvements, IBC says the principles still fall short in a crisis scenario. The Bureau advocates for “a permanent, fully reciprocal licensing system for claims adjusters across Canadian jurisdictions. We believe such a system is essential to ensuring an effective, fair and timely response for disaster victims.”
Speaking with Insurance Portal, Michael Connolly, president of the Canadian Independent Adjusters’ Association (CIAA), emphasized that independent adjusters are on the front lines during disasters and that Canadians rely on their expertise in moments of crisis. The CIAA continues to call for a permanent, reciprocal licensing framework.
Connolly says the Coalition will continue working with CISRO “to ensure that future reforms deliver not only short-term catastrophe responsiveness, but also a modernized licensing system that provides Canadian policyholders with the efficient, professional service they deserve, in times of crisis and beyond.”
