B.C.'s Insurer Code of Market Conduct

As part of BCFSA’s mandate to enhance confidence in B.C.’s financial services sector including the insurance segment, BCFSA released the Insurer Code of Market Conduct (“the Code”). Per sections 94.1, 158, 189, and 192 of the Financial Institutions Act (“FIA”), all B.C. authorized insurers must adopt and comply with the Code by April 1, 2024. This requirement applies to all B.C. incorporated insurance companies, extraprovincial insurance corporations, societies deemed under section 191 of FIA, and mutual fire insurance companies. Reinsurers, reciprocal exchanges, and captive insurance companies are excluded.

The Code reflects the Canadian Council of Insurance Regulators’ (“CCIR”) Conduct of Insurance Business and Fair Treatment of Customers (“FTC”) guidance. The Code uses the 12 expected outcomes from the CCIR’s FTC guidance as principles that insurers in B.C. are required to follow. The 12 expected outcomes ensure that insurers treat customers fairly throughout the product lifecycle, from product development to the point at which all obligations under a contract have been satisfied.

The Code was developed after the 2019 introduction of amendments to the FIA that requires insurers to adopt and follow a Code of Market Conduct established by BCFSA.

Insurer Code of Market Conduct   (will open in a new tab)

ResourcesPermanent link to this section

• Insurer Code of Market Conduct, Regulatory Statement
• Insurer Code of Market Conduct Information Session July 20, 2023
• BCFSA Consultation on Insurer Code of Market Conduct
• Consultation Summary Report

• Financial Institutions Act

BCFSA relevant publicationsPermanent link to this section

• Outsourcing Guideline (Code principles #1, #3)
• Information Securities Guideline (Code principles #1, #12)
• Elimination of Deferred Sales Charges Regulatory Statement (Code principle #1)
• Home Warranty Claims and Complaints Management Guideline (Code principles #10, #11)
• Report on Insurer Oversight of Functions Delegated to Intermediaries in B.C. (Code principles #1, #3, #4, #6, #7, #9, #11)

CCIR relevant publicationsPermanent link to this section

• CCIR/CISRO Guidance “Conduct of Insurance Business and Fair Treatment of Customers” 2018
• Incentive Management Guidance 2022
• Annual Statement on Market Conduct
• CCIR Cooperative Review. Fair Treatment of Customers 2021
• CCIR Cooperative Review. Governance and Business Culture in relation to Fair Treatment of Customers 2024

Frequently Asked QuestionsPermanent link to this section

• What does it mean for an insurer to adopt and comply with the Code?Permanent link to this section

  A: Insurers should adopt the Code using their standard process of adopting a new policy. Insurers are responsible for compliance with the Code, including effectively implementing and supporting policies and procedures, and governing and overseeing compliance on a regular basis. At this point, BCFSA is not requiring insurers to confirm the Code was adopted, nor is it requiring an annual attestation of compliance with the Code. BCFSA might consider attestation on compliance with the Code in the future.

  A requirement for insurers to file Annual Statements on Market Conduct remains unchanged.

• What if an insurer cannot meet the deadline of April 1, 2024 to be compliant with the Code?Permanent link to this section

  Insurers that cannot meet April 1, 2024 deadline should contact BCFSA.

• How will BCFSA ensure alignment in its fair treatment of customers expectations with other regulators?Permanent link to this section

  BCFSA’s Code is closely aligned with CCIR/CISRO Guidance “Conduct of Insurance Business and Fair Treatment of Customers”. Also, BCFSA works closely with FSRA, AMF and other regulators to ensure alignment of expectations and recommendations.

If you have any questions about the Code, please contact [email protected]