A Definite Step Backwards for the Protection of the PublicA Definite Step Backwards for the Protection of the Publichttp://chad.ca/en/consumers/protecting-the-public/521/a-definite-step-backwards-for-the-protection-of-the-public

Montreal, October 5, 2017 – The Chambre de l’assurance de dommages (ChAD) disagrees with certain aspects of bill 141, An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions (PL-141), which was tabled today in the National Assembly by Minister of Finance, Carlos Leitão. “It is high time that we modernize the legislation in the financial sector, but the government is on the wrong track in choosing to completely reject organizations that have proven their worth as protectors of the public,“ said Maya Raic, President and CEO of the ChAD. This bill proposes, most notably, to abolish two organizations—the ChAD being one of them—that are devoted to protecting the public in matters related to insurance.

“This bill weakens the priority given to protecting the public by eliminating damage insurance consumers’ first line of defense,” Ms. Raic continued. “As they discuss and reflect on the issues, we invite MNAs to consider the relevance, ability and effectiveness of organizations mandated to protect the public and oversee the professionalism of individuals working in this sector.”

The Role of Self-Regulatory Organizations

Currently, front-line, deeply knowledgeable self-regulatory organizations are responsible for overseeing the insurance sector; they are similar to professional corporations. These flexible, highly specialized organizations ensure the protection of the public by providing insurance professionals with ethical oversight. Their contribution to strengthening the professionalism of individuals working in the sector is widely acknowledged. Indeed, the Minister of Finance stressed this fact in the Report on the application of the Act respecting the distribution of financial products and services.

What about the protection of the public?

“We see a danger that this structural debate may result in losing sight of the real issues surrounding the protection of the public, for example, the need to properly oversee the sale of insurance online. Society still needs to devote further thought to this issue,” added Maya Raic.

The bill’s 741 sections will certainly be the subject of much debate during the parliamentary commission’s consultation process. The ChAD invites the Minister of Finance to consider the possibility of dividing the bill so that aspects that have an immediate and positive impact on the protection of the public, such as sections dealing with the Fonds d’indemnisation des services financiers, can be passed more quickly. The ChAD will be conducting a detailed analysis of the bill and will issue its comments at a later date.

About the Chambre de l’assurance de dommages

The mission of the Chambre de l'assurance de dommages is to protect the public in matters related to damage insurance and claims adjustment. It oversees the compulsory professional development of over 15,000 damage insurance agents and brokers as well as claims adjusters, provides preventive oversight and enforces discipline on individuals working in these fields.

For more information, visit chad.ca/projetdeloi (in french only)

10/12/2017 6:13:43 PM