While credit scoring was the primary debate of a deeply divided panel, other issues topped the agenda during the 89th annual Independent Brokers Association of Ontario CEO panel.
Sloppy Regulation is Damaging
Intact’s Charles Brindamour argued that the use of credit scoring was complex and that vague regulations lead to sloppy use.
“There are concerns over privacy and consent that need to be addressed. As well, it should never be used to exclude coverage, and it shouldn’t be used with negative consequences.”
Blais, and a number of other panel participants, also praised Canada and it’s regulatory system, for the ability to weather the economic storm and to ensure the solvency of the nation’s financial sector pillars.
However, the Dominion’s George Cooke expressed concern over the lack of regulator action when it comes to market conduct. “I think we fall short on this front.”
Cooke said that many of the rules, outlined by regulators, are “less than clear, enforcement is less than consistent and the expectancy of transparency [placed upon the carriers] is not adhered to by regulators.” Cooke added that “we are better off without market conduct regulation, as practiced today, if there are no amendments.”
Bickering Hurts Consumer Confidence
But it was AXA Canada’s Jean-Francois Blais who was to express concern over the public fight between brokers and insurers over credit scoring. The debate, which is making its way from boardroom, to Bay Street to Main Street is damaging consumer confidence in the industry as a whole, said Blais.
“The more we can get together and discuss the problems and find a solution we all agree on the better.”
Considered to be the one of the highlights of the three day IBAO conference—held at the Royal York in Toronto, Ont., between Oct. 21 and 23, 2009—the moderated CEO panel offered brokers an opportunity to hear what top decision-makers thought about pressing issues, including regulation and compliance, the role of the Insurance Bureau of Canada, solvency, insurance to value, Ontario’s auto product and credit scoring.
Originally published on CITopbroker.com on October 23, 2009