A recent Financial Services Regulatory Authority (FSRA) thematic review reveals systemic, industry-wide non-compliance with Take-All-Comers provisions in the Ontario Insurance Act, causing consumer harms, unfair competition, and diminished market health.
The review results were released in the form of a report entitled, Take-All-Comers Thematic Review Report, confirming intentional industry-wide non-compliance with the Take-All-Comers requirements.
An investigation following submission of 90-day reports by insurers showed that two subsidiaries of Aviva Group had repeatedly contravened Take-All-Comers requirements.
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As part of enforcement by FSRA, a settlement was reached and both subsidiaries acknowledged their lack of compliance with the Take-All-Comers requirement.
In the report, FSRA also outlines its next steps for the auto insurance sector. The regulatory authority also issued operation risk management (ORM) guidance to promote just, reasonable, and accurate rates. “It will support fair treatment for consumers engaged in the underwriting process,” says FSRA in the report.
The report concludes, saying company leadership can take personal accountability to promote effective compliance culture and set employee expectations at all levels, supporting staff if they need to speak up against wrongdoing. “It may be helpful for decision-makers to reflect objectively on the role financial incentives can play in signalling expectations to employees and distributors and motivating misconduct,” FSRA states.
“One of the things that needs to be improved is for senior management and boards of directors to better understand and act on ensuring that their organization internalizes the desired regulatory outcomes consistent with the identified principles,” says the FSRA report.
