The Government of Saskatchewan is introducing major changes that will modernize the insurance industry and strengthen consumer protection.
The Insurance Act replaces The Saskatchewan Insurance Act and is the first major revision to insurance regulation in the province in five decades.
“A lot has changed in the industry since revisions were last made to the Act, especially when it comes to technology,” Justice Minister and Attorney General Gordon Wyant said. “The new Act will give the insurance sector the flexibility it needs to evolve in a rapidly changing environment, strengthen consumer protection, and move toward harmonizing insurance legislation with Alberta and BC.”
Changes proposed in The Insurance Act include:
Better protection for consumers through market conduct standards, which identify unfair practices;
Streamlining the appeal process;
Restructuring the Saskatchewan Insurance Councils and allowing them to conduct audits and investigations;
Requiring insurance companies to recommend and screen those applying to be intermediaries as well as supervise them once approved;
Updating licensing categories and requirements including licensing employees that sell insurance as insurer’s representatives, which requires the same level of training as insurance agents;
Permitting insurance agents to adjust insurance claims to a prescribed amount; and
Requiring insurers to point to specific clauses in a policy where there are limits on the amount payable.
Work to develop the new Act involved interprovincial comparisons and review of other provincial and national projects on insurance and financial services, but the model used in Alberta was deemed to best fit Saskatchewan’s needs. Alberta’s legislation is similar to that in BC, meaning Saskatchewan will share similar insurance regulation with all provinces in the New West Partnership Trade Agreement.
A number of industry associations were consulted, including the Insurance Brokers Association of Saskatchewan and the Saskatchewan Insurance Councils and they have expressed their support for modernization of the Act.
