TORONTO, March 22, 2002 – The Canadian Council of Insurance
Regulators (CCIR) has completed development of a nationally accepted set of standard
insurance classes that will make it easier for insurance companies to develop and
introduce new products into the marketplace.
Through a committee chaired by Jim Hall, Superintendent of
Insurance for Saskatchewan, CCIR started working on the streamlining project as one way of
promoting increased harmonization in provincial and territorial insurance regulation. CCIR
worked closely with the insurance industry to develop the new system.
“This initiative represents a substantial decrease
from over 50 classes of insurance that currently exist in some jurisdictions to 16
harmonized classes of insurance, and 15 in Quebec,” said Winston Morris, Chair of
CCIR and Superintendent of Insurance for Newfoundland and Labrador. “Once
implemented, the new system streamlines the licensing process for insurers.”
“To better meet consumers’ needs, insurers are
developing new products that do not always fit neatly into traditionally defined classes
of insurance. “This is why,” added Mr. Morris, “a key component of this new
system is the creation of the ‘other approved products’ class.”
To expedite the process of adding new business to an
existing licence or creating a new insurance product, insurer guidelines were developed.
These guidelines came about as a result of extensive consultation with the industry and
have been endorsed by the majority of property and casualty insurers. As the process
evolves, it may be possible for all insurers to endorse common guidelines that would apply
across all insurance sectors.
Most jurisdictions expect to have the new classes substantially operational
for industry use within three years.