I take on the role of Chairperson of the Insurance Council of British Columbia at a time when the streamlining of the regulatory structure for licensees is falling into place. Council’s objective is to create a regulatory model that is not intrusive or burdensome for licensees carrying on the proper business of insurance in the province. Council is satisfied it has developed a licensing model that keeps its regulatory footprint to a minimum, thereby allowing it to focus attention on issues that create potential risks to the public or are detrimental to the insurance industry.

Council has now completed its second year of annual filings which were due on May 31, 2009. Over 26,000 reminders were mailed to licensees in March, 2009, with over 24,000 licensees submitting their annual filing by the filing deadline. The filing process ran smoothly and, from feedback received, it appears to have been well-accepted by the industry. Over the next few years Council will work at further improving services to its licensees with the implementation of an electronic filing system.

Council’s regulatory model is now designed to allow it to focus resources on issues related to insurance practice, public protection and education. We plan to expand the role of the Regulatory Services Department, which was established three years ago. In its initial years, Regulatory Services focused on random inspections and visits to insurance agencies and adjuster firms. Council plans to refine this process by identifying where risks may exist and focusing resources in these areas.

The success and strength of the insurance industry is built, in part, on the public having faith in the industry people they rely upon. For the most part the insurance industry has had few serious problems and Council is working to ensure this trend continues. Attention on issues such as ethics and appropriate conduct will be Council’s main focus over the upcoming years.

One area that is causing Council concern is the number of breaches in confidentiality it has encountered over the last 12 to 18 months. Licensees handle and have access to a large amount of confidential information and their clients depend upon their discretion when providing such information. Council has seen an increase in licensees who have accessed confidential information for personal gain or benefit. Council has a zero tolerance regarding any breach of confidentiality. In every case Council has reviewed, the licensee involved had his or her licence terminated. Council believes there is no room for this conduct, and it will continue to deal with breaches in a very strong manner. Going forward, Council plans to continue improving its service both to the industry and the public and, as Chair, I am always open to hearing your comments on how we can improve on our services.

J. Graham Calder, CFP, CLU, CH.F.C., RHU
Chairperson September 2009