FSRA Urges Companies to improve their Home
Insurance Claims Handling Processes
TORONTO, June 25,
2024 /CNW/ - Ontario's financial services regulator, FSRA,
believes companies providing home insurance can improve their
claims handling processes to better support the fair treatment of
consumers. This was the conclusion of FSRA's first Home Insurance
Thematic Review of 20 property and casualty (P&C) insurers in
the province.
Market intelligence suggests that consumers have been
experiencing service delays in the adjustment and settlement of
home insurance claims. At the same time, there has been increased
pressure on P&C insurers due to rising claim costs, inflation,
and supply chain issues. For these reasons, FSRA initiated the
thematic review with a focus on home insurance claims to better
understand the customer claim journey.
"Catastrophic events are increasing in frequency and severity,
so fair and timely home insurance claims handling is more important
to Ontario consumers than ever,"
said Beata Morris, Director,
Property and Casualty Insurance, Market Conduct at FSRA. "Our
thematic review identified areas of potential risk to consumers,
and we urge insurers to review and continue to improve their claims
handling practices."
Although FSRA believes that overall insurers are working to
provide fair resolutions to consumers with home insurance claims,
the review did identify the following areas of potential risk to
consumers:
- Different insurers take different amounts of time to settle
claims.
- The proof of loss form policyholders submit to their insurers
to make a claim is not used and tracked consistently.
- Some insurers cannot demonstrate that they are properly
overseeing adjusters.
- Some insurers do not sufficiently track and report the reasons
claims are denied.
- In some cases, communication with customers does not happen
regularly or sufficiently.
FSRA urges insurers to use the report as a point of reference to
improve their claims practices and align their policies and
procedures with industry standards and FSRA's documented
expectations.
FSRA encourages consumers to protect their property through
well-informed insurance decisions and read FSRA's advice on
navigating property insurance.
The outcomes of FSRA's review will inform the development of
FSRA's Market Conduct Supervision Framework for P&C Insurance,
announced last summer. P&C insurers will be subject to
proactive supervision under the Framework, enabling FSRA to be more
efficient and effective in identifying and addressing potential
consumer risks.
Learn More
FSRA continues to work on behalf of all
stakeholders, including consumers, to ensure financial safety,
fairness, and choice for everyone. Learn more at www.fsrao.ca.
Links
- Home Insurance Thematic Review Report
- How to Resolve a Property and other Insurance Complaint
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: russ.courtney@fsrao.ca
SOURCE Financial Services Regulatory Authority of Ontario