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Saskatchewan unveils changes to insurance regulation

2014-12-08


The Saskatchewan government is introducing the first major revision to legislation governing insurance in five decades, a move meant to modernize requirements and bring provincial law in line with Alberta and British Columbia.

The Insurance Act, which replaces The Saskatchewan Insurance Act, seeks to modernize the insurance industry and strengthen consumer protection, notes a statement late last week from the provincial government. The proposed changes include the following:

  • permit insurance agents to adjust insurance claims to a prescribed amount;
  • require insurers to point to specific clauses in a policy where there are limits on the amount payable;
  • require insurance companies to recommend and screen those applying to be intermediaries, as well as supervise them once approved; and
  • update licensing categories and requirements, including licensing employees that sell insurance as insurer’s representatives, which requires the same level of training as insurance agents.

Citing many changes over the years, particularly with respect to technology, Justice Minister and Attorney General Gordon Wyant notes in the statement that “the new act will give the insurance sector the flexibility it needs to evolve in a rapidly changing environment, strengthen consumer protection, and move toward harmonizing insurance legislation with Alberta and B.C.”

Although other provincial and national projects on insurance and financial services were compared and reviewed, the province reports that the model used in Alberta was deemed to best fit Saskatchewan’s needs.

“Alberta’s legislation is similar to that in B.C., meaning Saskatchewan will share similar insurance regulation with all provinces in the New West Partnership Trade Agreement,” the statement adds.

 

Article Source: http://www.canadianunderwriter.ca/news/saskatchewan-unveils-changes-to-insurance-regulation/1003384589/