Atlantic Canada requires aid in risk management initiatives

The Atlantic Task Force on Insurance Availability and Affordability recently released its final November 2005 report, which recommended that risk management strategies should be made available to small businesses and volunteer-based operations in Atlantic Canada as this will help improve the availability and affordability of insurance in the area.

The Insurance Bureau of Canada (IBC) chaired the task force, established in February 2005, which includes representatives from the business and voluntary sectors, the insurance industry and all four Atlantic governments, who held observer status.

The task force’s mandate was to develop recommendations to improve insurance availability and affordability for commercial and non-profit organizations in Atlantic Canada and to foster a greater mutual understanding between insurers and their commercial clients.

In the risk management area, the task force recommended insurers make information available about how consumers can reduce their risk of having to make a claim. Another recommendation urges insurance consumers to put insurers’ information into practice using a risk management education tool developed by the task force. The risk management tool is now available on the IBC website at www.ibc.ca.

“Making risk management strategies available, especially to smaller operators, was very important,” Ral Robichaud, the executive director of the Tourism Industry Association of New Brunswick and member of the task force, says. “Obviously, this is one way for our members to reduce their insurance costs. The task force has done a good job of identifying others.”

The task force called on government to work with insurers and the voluntary sector to help non-profit organizations find the right insurance at the best possible price.

Jamie Ferguson, CEO of Sport Nova Scotia, represented sporting and recreational organizations on the task force. “We are pleased to be a part of the important work of this Task Force,” he says. “The sporting sector was hit hard the last time the insurance market took a downturn. I think involving all parties in this process has lead to recommendations that could help minimize the impact if another downturn was to occur.”

Other recommendations in the report include a call on governments to reduce the tax burden on insurance consumers and look at potential legislative changes that have reduced insurance costs in other jurisdictions.