The property and casualty (P&C) insurance industry is urging Canadian regulators to address barriers to labor mobility across provinces, a move seen as key to bolstering the nation’s ability to respond to catastrophic events and global trade uncertainties.
The appeal comes amid concerns over a potential trade dispute with the US as a new administration prepares to take office. Margot Whittington, senior policy advisor at the Insurance Bureau of Canada (IBC), highlighted the urgency of these measures in a recent statement, pointing to the strain on adjuster capacity as catastrophic weather events increase in frequency and severity.
According to Whittington, Canada’s P&C industry has faced its most challenging year on record, with insured losses from catastrophic weather events exceeding $8 billion in 2024 - triple the annual average over the previous decade. A summer marked by unprecedented natural disasters, including the Calgary hailstorm, Jasper Wildfire Complex, and widespread flooding in Quebec and Ontario, led to nearly 250,000 insurance claims within weeks - a surge typically seen over an entire year.
This strain on the industry’s claims capacity highlighted a need for flexible labor mobility, Whittington noted. Temporary regulatory measures allowed out-of-province, and even US-based claims adjusters, to assist in responding to the crisis.
In response to the catastrophes, provincial regulators implemented emergency measures to expedite claims processing. Alberta, for instance, approved accelerated licensing for out-of-province adjusters, while Quebec’s Autorité des marchés financiers (AMF) eased restrictions on the use of non-resident adjusters and raised the claims value threshold for unlicensed adjusters from $7,500 to $30,000. Similarly, Ontario’s Financial Services Regulatory Authority (FSRA) temporarily permitted adjusters with out-of-province licenses to operate within the province.
These interventions accentuated the benefits of labor mobility and also revealed inefficiencies in Canada’s fragmented regulatory framework.
The P&C industry is now advocating for a permanent solution through a licensing reciprocity regime, allowing adjusters licensed in one province to work seamlessly across the country. Currently, adjuster licensing requirements vary by province, despite minor differences in regulatory standards.
A coalition of P&C insurance associations noted “this fragmented approach is a disservice to consumers, especially during severe weather events when timely claims processing is critical.” The industry points to the US as a model, where 47 states offer adjuster licensing reciprocity.
As severe weather events are expected to increase in frequency and intensity, the P&C industry is underscoring the importance of broader resilience measures. These include investments in resilient infrastructure, updated building codes, and the implementation of the long-awaited National Flood Insurance Program.
A recent Leger poll found that one-third of Canadians are already feeling the direct impacts of extreme weather.
The P&C industry has pledged to collaborate with governments and regulators to remove inter-provincial barriers, streamline claims processes, and improve Canada’s overall resilience to climate-related challenges.
“As we head into 2025, the P&C industry stands at the ready to work constructively with governments and regulators to remove barriers to labour mobility, improve the claims landscape, and ultimately make Canada a more resilient country,” said Whittington.
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