Proposed guidance to strengthen corporate
governance and manage operational risks
TORONTO, April 17,
2024 /CNW/ - Ontario's financial services regulator (FSRA)
is releasing two pieces of guidance for consultation aimed at
protecting insurance consumers and promoting a sustainable
insurance sector.
These guidance documents, centred on corporate governance and
operational risk and resilience, will help elevate industry
standards while ensuring the long-term sustainability of
insurers.
"Insurers that demonstrate sound corporate governance practices
in line with FSRA's proposed Corporate Governance Guidance are more
likely to achieve long-term sustainable business performance and
safely meet the needs of their policyholders, members, and
subscribers," said Mehrdad Rastan,
FSRA's Executive Vice President, Credit Union and Insurance
Prudential. "FSRA's Operational Risk and Resilience Guidance will
support the Insurers' ability to effectively identify, mitigate,
and manage operational risks and continue to operate when faced
with adverse events, ultimately protecting policyholders, members,
and subscribers, and contributing to public confidence in the
sector."
To support the proper oversight, management and practices of
Insurers, FSRA's proposed guidance sets out clear principles and
desired outcomes for both sound corporate governance and
operational risk management and resilience.
The proposed guidance is aligned with FSRA's principles-based
approach and allows for flexibility and applies proportionality
when assessing the effectiveness of Insurers in achieving the
intended outcomes.
The two pieces of guidance aim to:
- provide FSRA's interpretation of corporate governance,
operational risk management, and resilience requirements and set
out common industry practices for Insurers;
- promote effective corporate governance, operational risk
management, and resilience for Insurers; and
- highlight FSRA's approach for assessing how effectively
Insurers achieve the intended outcomes.
Call for Stakeholder Engagement
FSRA invites stakeholders to actively participate in the
consultation process. With a 60-day consultation period,
stakeholders are encouraged to provide feedback, ensuring that the
guidance reflects diverse perspectives and industry insights. The
consultation period will close on June 17,
2024.
Learn more:
- Proposed Corporate Governance Guidance for Ontario-incorporated Insurance Companies and
Reciprocal Insurance Exchanges
- Proposed Operational Risk and Resilience Guidance for
Ontario-incorporated Insurance
Companies and Reciprocal Insurance Exchanges
- Consultation on Corporate Governance and Operational Risk and
Resilience Guidance
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.
FOR MEDIA INQUIRIES:
Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: ashley.legassic@fsrao.ca
SOURCE Financial Services Regulatory Authority of Ontario