New Ontario Financial Services Regulator is Needed Says Shop Insurance Canada

November 22, 2016 - Two weeks ago, the Ontario government released its 2016 Ontario Economic Outlook and Fiscal Review. One key component of the annual report was a commitment from the government to create legislation for parameters that would establish the Financial Services Regulatory Authority (FSRA). The new service will replace the Financial Services Commission of Ontario (FSCO).

Shop Insurance Canada, home to a leading quote engine and authoritative information on the Canadian insurance market, says this is a welcome decision.

"The insurance market requires a level of flexibility that the FSCO does not currently provide. It is hoped the creation of the FSRA will hopefully give companies more freedom to create dynamic solutions. More importantly, providers need to move to a more consumer-focused model, a new regulatory body could ease the transition."

The Insurance Bureau of Canada (IBC) has also applauded the government's decision to create legislation for the new financial services regulator.

In the report, FSRA is described as "a new independent and flexible regulator of financial services and pensions that, once established, would be more consumer-focused and improve protections for consumers, investors and pension plan beneficiaries."

Initial plans were revealed in the summer, when the IBC backed a call from an expert advisory panel for a new organization to be formed that will take the duties currently performed by the FSCO. Now that the formation of the FSRA has been confirmed, the bureau is praising the government for listening to industry experts.

"Canada's insurers are pleased that the government is reforming the way Ontario regulates insurance," Kim Donaldson, vice president for Ontario with IBC, said in a statement on Monday. "Today's Economic Outlook outlines a process for establishing a world-class insurance regulator that can adapt to changing consumer needs and industry trends."

"A new Financial Services Regulatory Authority (FSRA) should be established, and it should exercise both prudential and market conduct functions in a coordinated but distinct fashion," an Ontario government-appointed panel said in the Review of the Mandates of the Financial Services Commission of Ontario, Financial Services Tribunal, and the Deposit Insurance Corporation of Ontario.

The government says that a detailed plan for implementing the FSRA will be put in place once legislation is prepared. This will include naming the first ever board of directors for the new regulatory group.

"IBC encourages the government to quickly introduce enabling legislation, and to work closely with the property and casualty insurance industry as it shapes the new regulator's mandate," the statement added. "An area of importance for automobile insurers will be the ability of the new regulator to modernize Ontario's rate regulation process; the current system stifles innovation and prevents the benefits of a competitive market from being fully realized."

About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.

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