Can adjuster labour mobility find a way forward?

Canada’s insurance industry has been asking regulators to address inter-provincial labour mobility for decades, and the progress so far is disappointing, says Geoffrey Beechey, chair and CEO of Canadian Association of Direct Relationship Insurers (CADRI).

His comments are in response to questions from Canadian Underwriter about the Canadian Insurance Services Regulatory Organizations’ (CISRO’s) recent Principles for Adjuster Authorization During Natural Catastrophes and Disasters.

He notes CISRO’s principles result from lobbying by a broad industry coalition that started in in 2023.

“Our coalition is disappointed in the lack of innovative action on the part of CISRO, but we are prepared to continue the dialogue and will focus our attention to the provincial politicians who have expressed interest in reducing barriers to labour mobility,” he says.

Initially a group of six, and now eight, industry trade associations asked for full adjuster licensing reciprocity across all Canadian jurisdictions, saying this “would enhance the industry’s ability to efficiently allocate resources and more effectively serve policyholders in times of heightened need,” Beechey tells CU.

Related: Can ‘principles’ ensure adjuster mobility?

“While the coalition started with an urgent request for change to facilitate our response to the increasing number of natural disasters, the trade war and the subsequent political momentum to reduce/eliminate interprovincial trade barriers gave us hope that we could finally achieve licensing reciprocity across Canada, not just for natural catastrophes and not just for adjusters, but for brokers and captive agents.”

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He adds the P&C insurance industry “continues to respond to an increasing number of NatCats nationwide despite the existing protocols and red tape.” As such, promises to improve efficiency are welcome and the coalition will continue advocating for a consistent pan-Canadian process.  

Referencing recent memorandums of understanding between Ontario, Alberta and Prince Edward Island, Beechey notes a potential solution could be as simple as:

• An adjuster in province A registering her/his name, contact details, and license copy with the regulator in province B to begin work, or
• Reciprocal recognition by province B of credentials in province A and the continued responsibility of the sponsoring company.

“This should not be dependent on a NatCat being declared,” Beechey says. “IBC has documented the rise of NatCats both in frequency and severity. The coalition first sought the attention of CISRO by highlighting that if we struggle to respond to a moderate hurricane like Tropical Storm Fiona, we will be ill-prepared in the event of a big earthquake in British Columbia.

“We need to be efficient for every NatCat, wherever it happens in Canada.”

Related: IBC weighs in on CISRO’s adjuster mobility principles

He says the coalition’s recommended solution of license reciprocity avoids the problem of having to establish threshold levels for NatCats, adding conventional measures such as the volume of claims or a combination of volume and severity “ignore the varied concentration of risk that insurers may have, or their pool of available resources.”

Reliance on measurable triggers also overlooks “the impact of pandemics, which can trigger a need for labour mobility in a region even when a NatCat has not occurred,” Beechey says.

To that end, he adds, the idea of relying on condition assessments from people in an area affected by a NatCat, “makes more sense than the conventional thinking of regulators.”

CADRI is a member of a coalition of Canadian insurance industry advocates including the Canadian Association of Mutual Insurance Companies, Canadian Independent Adjusters Association, Canadian Insurance Claims Managers Association, Corporation des assureurs directs de dommages, Insurance Brokers Association of Canada, Insurance Bureau of Canada, Omnia Adjusters Cooperative and Licensing Coalition.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.