Canadian regulators publish report on the fair treatment of customers

Published July 17, 2024

The Canadian Council of Insurance Regulators (CCIR), a national body made up of provincial and territorial insurance regulators, has released a report as an accompaniment to the Guidance on the Conduct of Insurance Business and the Fair Treatment of Customers.

The report builds on the Guidance to help fill in gaps to increase consumer protection and fair treatment of customers such as acting in good faith, exhibiting ethical behaviour and eliminating abusive practices. In 2022-2023, CCIR members reviewed the governance and business culture of insurers across Canada in relation to the fair treatment of customers. This data was then analyzed and areas of improvement were identified in the report with recommendations for insurers.

CCIR noted that business culture – a set of values, beliefs and customs that shape the environment of an organization – plays an integral part in the practice of fair treatment of customers. A business culture that centres around the fair treatment of customers is more likely to have policies and procedures in place that diminishes consumer harm. The report offers some concrete examples of how companies can incorporate good governance and business practices through the development of a code of conduct and policies, as well as identifying roles and responsibilities of senior management and board of directors.

CCIR expects all insurers to read the report and adopt recommendations that would ensure the fair treatment of customers. Insurance intermediaries also have a role in the fair treatment of customers and can gain valuable insight through the report in fostering customer confidence by exhibiting a consumer-centric culture in the workplace.