IBC weighs in on CISRO’s adjuster mobility principles

A principles-based approach to improving adjuster mobility following natural disasters released Aug. 13 by the Canadian Insurance Services Regulatory Organizations (CISRO) may not tick every box on the industry’s wish list, sources tell CU.

The document is the result of lengthy engagement and feedback from a coalition of industry associations, including Insurance Bureau of Canada (IBC), they say.

And, IBC notes, CISRO’s ‘Principles for Adjuster Authorization During Natural Catastrophes and Disasters’ does adopt several recommendations from that coalition related to streamlining and clarifying temporary licensing processes, making improvements to mobility during disaster events, and harmonizing catastrophe declarations.

But, as issued, the principles may not go far enough.

“While these measures represent welcome progress toward a more responsive regulatory environment in times of crisis, they do not offer the structural reforms needed to establish a permanent mutual credential recognition regime or to remove persistent barriers that slow adjuster deployment,” IBC tells Canadian Underwriter in a statement. 

“In light of the stated objectives of Canadian governments to remove interprovincial trade barriers as they pursue a ‘single Canadian economy,’ we are hopeful – and will continue to advocate – for mutual credential recognition regimes for independent adjusters and other insurance professions.”

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Related: Can ‘principles’ ensure adjuster mobility?

Last week’s press release from CISRO says the new principles can “enhance responsiveness of adjuster licensing for catastrophe and disaster events across Canada’s insurance sector.”

And CISRO’s principles document says that “while licensing language and structures vary across jurisdictions, there is substantial practical alignment in natural catastrophes and disaster licensing practices.”

The first of seven principles outlined in the document says regulator response to NatCats “should prioritize timely service to policyholders and minimize procedural delays that could hinder recovery efforts.” As examples, CISRO cites stakeholder coordination to minimize service disruptions so consumers get timely support, and that decisions around catastrophe and disaster licensing prioritize consumer protection and responsiveness.

In its comments, IBC tells CU: “While CISRO has offered a framework that enhances disaster-specific responsiveness, it ultimately leaves broader labour mobility and licensing modernization as unfinished priorities.

“IBC looks forward to continuing to engage and work collaboratively with CISRO and governments on solutions that ensure consumers are served faster and more efficiently following catastrophic weather events.”

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.