Learn how IBAO is responding to COVID-19 — TAKE ME THERE
The all comers rule requires insurers to include all classes of risk in their underwriting rules and pricing. But recent discussions, outlined in FSRA’s Consultation Summary, signal that the rule could be challenged in the near future.

In October, FSRA announced a Stakeholder Advisory Committee (SAC) for P&C Insurance, which we were asked to participate in. Stakeholders submit their feedback on current market conditions for FSRA’s assessment.

The Insurance Bureau of Canada (IBC) asked for “further engagement with FSRA regarding monitoring of potential circumvention of [the] take all comers rule”. In response, FSRA said they would “… take comments regarding the take all comers rule into consideration as it develops its approach to enhancing market conduct oversight with an emphasis on the fair treatment of customers and will engage with the sector regarding any guidance developed on this topic.”

We outlined concerns on insurer conduct within today’s hard market—mainly that some insurers may be exerting pressure on brokers to move clients out of their portfolios, which goes against the all comers rule and poses a number of challenges to both brokers and consumers. As outlined in their Consultation Summary, FSRA said they’d take the concern into consideration and “encourage stakeholders with complaints about specific cases of potential non-compliance under FSRA’s supervision to bring complaints forward for review.”

Issues such as these, which affect brokers and consumers across Ontario, are one of the reasons it’s so crucial for the IBAO to have a seat at the table.