Insurance Industry in Canada
SUBJECT: Insurance Industry in Canada
As you requested, the following report presents briefly the Insurance Industry in Canada. It includes the Regulation of the Insurance Industry in Canada, the Insurance Bureau of Canada, its Mandate and responsibility, and types of insurance in Canada. My investigation was on the basis of five secondary sources from the Seneca library, Seneca library database and a professional association website.
Regulation of the Insurance Industry in Canada
For many people, insurance protects them and their families against financial hardship or potential catastrophic losses resulting from death or illness. Because the insurance industry is so important to many people, insurance companies occupy a special position of public trust. As a result, governments regulate insurance companies to safeguard the public interest based on two primary focuses: “to ensure that insurers remain solvent and conduct their businesses fairly and ethically” (Jones 44).
According to Principles of Insurance, “the United States has the most extensive insurance regulation in the word, and other countries often study U.S. laws as they develop their own laws” (Jones 42). In the United States and Canada, federal governments and the lower-level governments, known as state government in the United Stated or provincial governments in Canada, share governmental powers to regulated insurance.
Federal Regulation. The office of the Superintendent of Financial Institutions (OSFI) in Ottawa is the federal regulator (Principles 12). “The federal Insurance Companies Act, which took effect in 1992, sets forth federal insurance laws and the regulatory system for federally regulated life insurance companies. Federally regulated insurance companies, which include (1) all Canadian insurers incorporated by the federal government and (2) the Canadian branches of all insurers incorporated in
Cited: Daw, James. “Fraud Detection.” Canadian Underwriter 78.5 (2011):52-55. Business Source Premier Insurance Institute of Canada. Principles and Practice of Insurance. Toronto: Insurance Institute, 2008 Jones, Harriett E and Steven R. Silver. Principles of Insurance. LL Global, 2011. LOMANET