It won’t be another 50 years until the next change is made to the Insurance Act, says one Saskatchewan broker.
“I would put money on it, that two years from now we’re going to see more change,” says Dave Nussbaumer, broker/owner of Farrell Agencies and president of the Insurance Brokers Association of Saskatchewan. “With the quick change that is going on in our world, especially with the rapid change in technology; we’re heading into uncharted waters.”
The provincial government recently introduced a new Insurance Act - the first major revision to insurance regulation in the province in five decades - based on legislation in Alberta and B.C.
According to the province, the new legislation will enact major changes to “modernize the insurance industry and strengthen consumer protection.”
And the changes will keep coming, says Nussbaumer.
“They are going to come out with a set of rules, and within those rules are going to be gray areas,” he told
Insurance Business. “And the regulators are going to have to deal with that, because there will be a loophole, unfortunately. That’s how life works. But right now, the Act looks great.”
And that province’s Justice Minister and Attorney General, Gordon Wyant, echoes Nussbaumer’s sentiment on how fast change is coming to the insurance industry.
“A lot has changed in the industry since revisions were last made to the act, especially when it comes to technology,” Wyant told reporters. “The new act will give the insurance sector the flexibility it needs to evolve in a rapidly changing environment, strengthen consumer protection, and move toward harmonizing insurance legislation with Alberta and B.C.” (continued.)
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Work on developing the new act involved a review of other provincial and national regulations of insurance and financial services, and the model used in Alberta was deemed to best fit Saskatchewan's needs. As Alberta's legislation was based on that in B.C., Saskatchewan will share similar insurance regulation with all three provinces in the New West Partnership Trade Agreement.
Changes proposed in the Insurance Act include:
- Better protection for consumers through 'market conduct standards,' which identify unfair practices;
- Allowing the Saskatchewan Insurance Councils to conduct audits and investigations;
- Requiring insurance companies to screen those applying to be intermediaries and supervise them once approved;
- Requiring employees that sell insurance as insurer's representatives to have the same level of training as insurance agents; and
- Requiring insurers to point to specific clauses in a policy where there are limits on the amount payable.
And holding the agents working on behalf of the directs to the same standard as brokers is important – especially when it comes to the consumer when they are determining the true value of a policy.
“A level playing field is best for everyone – from the directs to the independent brokers,” says Nussbaumer. “Which is what it should be.
“That last few years we’ve been overwhelmed with claims, and the true worth of a broker and the expertise they bring to the table, it is not hard to realize the value of a broker and the need for brokers,” continues Nussbaumer. “The direct writers are knocking on the door and they are never going way – so we just have to continue doing our job and being knowledgeable.”
