FSRA is continuing its work to protect consumers with the release of its first insurance rule.
The Unfair or Deceptive Acts or Practices (UDAP) Rule, which was recently approved by the Minister of Finance, applies to insurers of life & health, and property & casualty, including auto, risks, and related providers of goods and/or services. The rule will be effective as of April 1, 2022.
The UDAP Rule empowers FSRA to supervise insurance industry conduct. It enhances regulatory efficiency and effectiveness by reducing burden and barriers to innovation and protects consumers by clearly defining outcomes that are unfair or otherwise harmful.
The Rule replaces a regulation and will offer the following benefits, among others:
- facilitating improved outcomes by better protecting consumers from harm due to improper practices such as unfair discrimination, unnecessary claims delays and fraudulent activity
- reducing regulatory burden, and removing barriers to innovation for industry, by being less prescriptive
- supporting the transition to principles-based regulation by focusing on outcomes and eliminating overly prescriptive provisions
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further aligning regulation with FSRA’s Fair Treatment of Customers (“FTC”) guidance
The approved Rule is now available on FSRA’s website: