The Financial Services Regulatory Authority of Ontario (FSRA) on June 16 published its property and casualty (P&C) supervision strategic plan (SSP) for insurance market conduct.
“Under the SSP, FSRA will identify and assess risks to better protect consumers and maintain public confidence in the sector,” the regulator states in its announcement about the new framework for market conduct supervision. “After identifying risks, FSRA may address conduct issues through thematic reviews, inquiries, examinations, surveys or other methods.”
FSRA adds that the SSP will be implemented in phases. At first, the regulator plans to use existing information and data, such as annual statements on market conduct, or data from other supervision initiatives to date. Once the SSP is fully operational, they add, FSRA will consider whether further information is required for accurate risk assessments.
The regulator also intends to conduct a sector-wide risk assessment. “Risks from both the assessments of regulated entities and sector-wide assessments will be viewed together as FSRA establishes its market conduct supervision plans each year,” they write. The regulator also says it will publish the outcome of its work, including observations and any next steps.
Developed throughout 2024 and 2025, the SSP, they add, is grounded in existing regulatory requirements and expectations. FSRA first announced that it was making supervision of the P&C sector a priority in June 2023.
“To efficiently direct FSRA’s resources towards addressing the most significant risks and issues impacting Ontario consumers, it is essential to have a comprehensive understanding of market conduct risk within the P&C sector,” they write.
