Insurance Industry in Canada

Regulation of the Insurance Industry in Canada For many people, insurance protects them and their families against financial readership or potential catastrophic losses resulting from death or illness. Because the insurance industry is so Important to many people, Insurance companies occupy a special postal 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’ (lone 44).

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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” (lone 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 (OSPF) in Ottawa is the federal regulator (Principles 12). The federal Insurance Companies Act, which took effect In 1 992, 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 other countries, must comply with the provisions of the Act” (Stone 27). Provincial Regulation. Each province and territory has enacted laws regulating insurance within that province. The insurance laws of a province are usually contained in that province’s Insurance Act and are enforced by an administrator usually known as the Superintendent of Insurance” (Stone 29). Provincial insurance laws also license all insurers and all insurances agents doing business In the province. Self Regulation. This third component of regulation Is a body of Insurance Industry standards and guidelines. It complements the federal and provincial regulation. “Guidelines do not have the force of law, but insurers are expected to abide by them” (Stone 29).

The Canadian Council of Insurance Regulators is a committee of provincial insurance regulators. “The Call looks at emerging industry and business trends and works toward harmonize legislation through model codes and standardized reporting requirements. The Council’s efforts help The Insurance Bureau of Canada “Established in 1964, Insurance Bureau of Canada is the national industry association presenting Canada’s private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada” (BBC).

Bib’s Mandate is to provide “a forum for its member companies to resolve issues that are important to achieving the P&C insurance industry common vision” (BBC). It is supported by insurers throughout the diverse property and casualty insurance industry in Canada. The vision recognizes that by serving the needs of its customers and by being competitive, the industry will be healthy and profitable. BBC’ Responsibility is to be active on behalf of its members. BBC defines its role on its website.

BBC does this by: forecasting and responding to issues that may arise in the industry, anticipating opportunities to identify, shape and influence change in support of members’ business needs lobbying the federal and provincial governments to secure changes in public policy and in the business-operating environment that will benefit insurance companies and their customers. BBC works on a number of fronts to increase public understanding of home, car and business insurance (BBC). For example, Insurance Bureau of Canada developed HCI in order to fight auto insurance fraud.

The fight against fraud is essential to consumers who are finding the cost of coverage is becoming unbearable” (Dad 52). Type of Insurance Insurance has been divided into three major categories in the textbook of Principles and Practice of Insurance. Social Insurance is “provided through the state which acts as the insurer while the citizens are the insured” (Principles 6). The typical examples are hospitalizing and medical plans, unemployment insurance benefits and workers’ compensation.

Life and Health Insurance is “dominated by the major life insurers which provide life, accident, sickness and disability insurance, pension and there financial services for individuals or group” (Principles 6). It is mostly provided by life insurers. General Insurance/Property and Casualty Insurance is “today usually referred to as property and casualty insurance. In includes all insurance not covered in the other two categories mentioned” (Principles 6). Enclosed are the annotated bibliographies with short summarized evaluation for the five secondary sources.

I would appreciate to have your approval before Mar 1, 2012 so that I can prepare for the further investigation. Dad, James. “Fraud Detection. ” Canadian Underwriter 78. 5 (2011):52-55. Business Source Premier. Web. 10 Feb.. 2012 As a Senior Writer at Insurance Bureau of Canada, Dad is also a Reporter and Columnist at Toronto Star. This article was published on Canadian Underwriter magazine in May 2011, Ontario. Dad discusses the potential role of Health Claims for Auto Insurance (HCI) in Canada against auto insurance fraud. Dad distributes his writing in the field of personal finance, pensions, tax, insurance, business and the economy.

Rather than a common magazine, Canadian Underwrite is a trade magazine focus on Canadian Risk and Insurance industry with the audiences seeking professional information. Dad’s presented HCI as a tool plopped by Insurance Bureau of Canada helps fight insurance fraud as the government plans. In order to investigate Insurance Bureau of Canada, this article searched from website of Business Source Premier linked to Seneca Library Database is a valuable source as an example of Bib’s responsibility. BBC. Insurance Bureau of Canada, 2012. Web. 10 Feb.. 012 BBC is the official website of Insurance Bureau of Canada. The website was updated in 2012 and presents timely professional information. Insurance Bureau of Canada is the national industry association representing Canada’s private home, car and business insurers. On the basis of introduction of BBC, the website presents the mandate of Insurance Bureau of Canada and where the responsibility of BBC addresses. BBC website works insurance. As an official website, BBC provides authorized background and roles of Insurance Bureau of Canada. It is the initial source for me to investigate BBC.

Insurance Institute of Canada. Principles and Practice of Insurance. Toronto: Insurance Institute, 2008. Print. The Insurance Institute of Canada was formed in 1952 with network of 21 provincial Institutes and local Chapters. This textbook Principles and Practice of Insurance is the 008 edition after the first edition was published in 1995, Canada. The Board of Governors of The Insurance Institute of Canada brought it into new edition text. The two operating divisions of the Insurance Institute of Canada are the Academic Council and the Chartered Insurance Professionals’ Society.

Both divisions report to the Board of Governors. All Institute courses and programs are designed to meet very high standards. As a designation-granting institution, the Insurance Institute holds qualifying examinations and elects graduates as Sips and Fps. Insurance, functions and categories of insurance, government regulations and the tactical system. For taking the first step, this book enables me to have a fully understanding and basic knowledge of insurance industry. Jones, Harriet E and Steven R. Silver. Principles of Insurance.

LOAM 280 Course Portal Principles of Insurance is part of the Associate, Life Management Institute (ALMA) and Fellow, Life Management Institute (FILM) programs. In order to investigate the Regulation of the Insurance Industry in Canada, the connection between the regulations in the United States and Canada discussed in Principles of Insurance is helpful to understand the background. Stone, Gene. Insurance Company Operations. 2000. Print. Insurance Company Operations is the text designed for Lama’s FILM Course 290 examination. It was published in 2000 and printed in the United States.

This book presents a substantive, meaningful discussion of each insurance company operation as a part of an ongoing process. Rather than discussing Insurance Regulation across the worldwide, this text presents the Regulation of Insurance Companies in both of the United States and Canada. It also describes how insurance companies in the United States and Canada carry on their businesses. For the investigation of the Regulation of the Insurance Industry in Canada, Insurance Company Operations provides more detailed and valuable sources.