The Financial Services Regulatory Authority of Ontario (FSRA) has released a new guidance for insurance companies incorporated in the province.
FSRA’s new Risk Based Supervisory Framework for Ontario Incorporated Insurance Companies and Reciprocals (RBSF-I) guidance is meant to maintain the insurance industry’s stability and offer clarity to the processes and practices that the regulator will follow when establishing supervisory plans and taking supervisory action. It was also noted that the approach is aligned with international standards and best practices.
"This is an important milestone that will strengthen the insurance sector and lead to better protection for consumers," said FSRA executive vice president, credit union and insurance prudential Mehrdad Rastan in a statement. "This initiative will promote safety and stability and enhance the reputation of the Ontario Incorporated Insurers."
According to the FSRA, the framework will support its efforts to maintain public confidence in the insurance sector, protect policyholders’ rights, foster sustainable and competitive financial services sectors, and promote the stability of the insurance sector.
The FSRA had formed a new Technical Advisory Committee (TAC) earlier this year, which aims to reform Ontario’s auto insurance system. The TAC will accomplish this by reviewing the regulator’s recommendations on reforming auto insurance rates, evaluate consumer benefits and harms in relation to policy issues, as well as provide operational and technical expertise to the FSRA, among other things.
