October 29, 2024
Colin Simpson—CEO, IBAO
It’s no secret that in 2024, Ontario Brokers have felt the impact of regulatory change. Brokers have always existed in a regulated environment, but there are distinct differences we’re seeing today.
Although certain changes have been imposed by RIBO, pressure’s being felt more strongly from the flow through from your business partners. This change is likely to intensify over the next few years. So when it comes to your own strategic planning, don’t assume the regulatory environment will remain static.
2024 Regulatory Changes
Ontario Auto Reform
Ongoing discussions with Ontario’s Ministry of Finance, industry partners and regulators has been a constant when it comes to the Auto product. An Ontario Auto Reform announcement’s been made, but at the time of writing, no changes to current regulations have been formally tabled.
Fair Treatment of Consumers
As more regulatory pressure is placed on our industry under the FTC umbrella, coordinating a collective response to ease some of the burden is a constant priority.
CCIR/CISRO Natural Catastrophes
In partnership with IBAC and IBC, we’re making good progress with the proposed action plan expected to be drawn up by mid-October this year. Our first goal is to implement carrier and broker education and training on the changing climate affecting us all.
RIBO
Assisting brokers with their questions about Mandatory Disclosures Guidance is a key focus of IBAO.
Exams & Licensing
The third edition of our Broker Launchpad textbook is ready, re-written to support RIBO’s new exam launching January 2025. Over 50 content additions were identified to bring the textbook in alignment with RIBO’s new Level 1 broker competency profile.
MGAs
There’s been industry-wide discussion on whether there needs to be regulation for MGAs, and if so, what it should look like. Our Board of Directors endorsed IBAO President Dario Battista to attend government meetings as the broker voice in this dialogue, with key messages sent to the Ministry of Finance on behalf of Ontario Brokers.
Current Trends
Many regulatory bodies are turning their focus to non-auto and the cascade of risk through our supply chain. FTC guidance is clear, as are other industry regulatory publications—insurance companies are responsible for FTC throughout the life cycle of the insurance product, as it’s the insurer who is the ultimate risk carrier. The fair treatment of consumers is clearly a joint responsibility, but the market conduct framework on how this can be monitored and measured is still in its infancy. Any proactive business understands its responsibilities and accountabilities, but how these will be viewed, monitored and recorded by our regulatory bodies is still evolving. This evolution is already taking shape in the form of a number of thematic reviews including Take All Comers, MGAs and Property Insurance claims. There will be others, no doubt.
Our role, on behalf of Ontario Brokers, is to keep abreast of these changes and proactively engage with stakeholders to facilitate the effectiveness of proposed regulatory change and ensure brokers are supported in the changing environment. Our goal is to ensure brokers not only are able to comply with new regulatory guidance, but to provide you with the necessary training, guidance and tools to do so while enhancing your role as consumer advocates.
How Brokers Can Engage with IBAO
- Join a committee when we put out a call for volunteers—thank you to the 10+ brokers who joined our Ontario Auto Reform committee this year.
- Speak as a single voice by using IBAO messaging when meeting locally with your MP and MPP.
- Participate in our advocacy days at Queens Park and on Parliament Hill.
- Join your local Affiliate or IBAO’s Board of Directors.