CCIR wants to start dialogue on risk-based regulation

The Canadian Council of Insurance Regulators (CCIR) is looking to foster dialogue between regulators and stakeholders on the basic approaches to risk-based market conduct regulation (RbMCR) in Canada. RbMCR means directing regulatory efforts to the most significant issues that either have the greatest potential for consumer harm or that could weaken public confidence if left unchecked, the CCIR says in its paper, “An Approach to Risk-based Market Conduct Regulation.”

In a risk-based approach, regulators prioritize issues based on their potential impact to achievement of desired regulatory outcomes.

The CCIR is working toward a mutually agreed-upon framework so that, where regulators choose to do so, a riskbased approach can be adopted efficiently, according to the paper.

“The development of a mutually agreed-upon framework should minimize the potential for differences in regulatory approach between jurisdictions and increase the opportunities for regulatory collaboration.”

As well, within any jurisdiction, provincial or federal, the adoption of riskbased methods for assessing market conduct is not an all-or-nothing proposition, the CCIR adds.

“There will be circumstances where risk-based approaches work best and situations where more traditional methods are a better fit. It will be up to individual regulators to decide what methods work best in a given situation.” access the white paper and comment on it, visit: www.ccir-ccrra.org.