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BC Financial Services Authority (“BCFSA”) has completed its consultation on the draft Insurer Code of Market Conduct (“the Code”) and the draft Guideline to the Code that will apply to all insurers authorized to conduct insurance business in B.C.
The Code embeds fair treatment of customers principles into BCFSA’s market conduct supervision and oversight, delivering on its mandate of enhancing consumer protection and strengthening public trust and confidence in the insurance sector.
In fall 2019, the B.C. government introduced a series of legislative amendments aimed at modernizing BCFSA’s approach to market conduct supervision and oversight.
This included a new provision, Section 94.1 of the Financial Institutions Act (“FIA”), establishing the requirement that insurers1 adopt and follow a Code of Market Conduct established by BCFSA.
As authorized by the Order in Council (“OIC”) no. 0079_2022, Section 94.1 of the FIA will come into force in June 2022; however, the legislation will only apply to insurers authorized to conduct insurance business in B.C. once BCFSA has established its Code following the consultation process and the Code’s finalization.
The requirement to bring forward the Code has been included on BCFSA’s regulatory roadmap, which set outs regulatory priorities over the near-term.
The period for giving feedback has now closed. Feedback received during the consultation will be reviewed and summarized and responses will be published on the BCFSA website. BCFSA values the feedback it receives during consultations and input will be used as appropriate to clarify and strengthen the draft Insurer Code of Market Conduct.
1 Sections 94.1, 158, 189 and 192 of the FIA includes all B.C. incorporated insurance companies, extraprovincial insurance corporations, societies deemed under section 191, and mutual fire insurance companies; reinsurers, reciprocal exchanges and captive insurance companies are excluded.