Troy Woodland

On October 26, 2023, CAFII hosted a webinar on inclusive language in the workspace titled Words Matter. The webinar was led by Elissa Gurman, who is a principal at MacPhie Consulting (a management consultant company). She specializes in organizational development, strategic facilitation, and inclusive communication. E. Gurman earned a Ph.D. degree from the University of Toronto and a Diversity, Equity, and Inclusion certificate from Cornell University.

Co-Executive Director Keith Martin began the webinar with an acknowledgment of those in attendance. In addition to the many representatives from CAFII’s 15 member companies and nine associates, in attendance from allied industry associations were:

• The Canadian Life and Health Insurance Association (CHLIA);
• The Travel and Health Insurance Association (THiA);
• The Canadian Banker Association (CBA);
• British Columbia Financial Services Authority (BCFSA);
• Insurance Counsel of British Columbia;
• Alberta Treasury Board and Finance (ATBF)
• The Insurance Counsels of Saskatchewan (ICS); and,
• The Financial Services Regulatory Authority of Ontario (FSRA).

This Words Matter webinar is a part of a larger course offered through MacPhie on inclusive language. E. Gurman began her presentation by discussing the importance of language in the workspace, including the necessity of proper definitions of certain buzzwords – diversity, equity, and inclusion, or DEI. What do these terms mean?

Diversity means, simply, difference. It means both visible and invisible dimensions that result in individual and communal differences in our working habits and workplace experiences. Equity means a recognition of individual and/or group differences that may result in barriers within the workplace and society at large. Many confuse equity with equality, but they are not the same. Equality means we all have the same outcomes and are working towards one common goal; equity means working towards fair outcomes for people or groups by treating them in ways that address their unique barriers. Inclusion is a feeling. Where diversity acknowledges our differences, equity responds to these differences in a way that allows all employees to thrive; inclusion is the thriving in which all employees feel they can succeed. Inclusion is what allows for diversity and equity to find expression and permanence.

Understanding DEI leads us to inclusive language. The goal of inclusive language is to help others feel seen and respected. It is an ever-evolving practice since language is continuously changing. To practice inclusive language is to always be mindful and open to changing our language habits to be empathetic to others.

There is a lot of fear around inclusive language. This speaks to cancel culture, which turns inclusive language into a conversation about personal discomfort rather than the feelings of those around us. Therefore, inclusive language asks that, instead of only worrying about ourselves as the interlocutor, we must think about our listeners.

E. Gurman went on to give some key rules of conduct or pointers for a few specific categories:

• Disability & Illness: Use people-first language. This means putting people-first language to empower rather than limit someone to their disability and/or illness. An example is survivor versus victim; one implies strength and perseverance, while the other implies something done to someone.
• Race & Culture: Be specific. If you are going to talk about someone’s race or ethnicity, be specific. For example, when writing about people of Asian ancestry, say if they are Chinese, for example, or Malaysian. Another example is the use of the words African American. African America is not always interchangeable with Black and has been misused as an umbrella term for people of African ancestry worldwide, obscuring other ethnicities or nationalities.
• Gender & Sexuality: Remember that not everyone is a straight, cisgender man. English, like other languages, assumes the norm is straight and male; therefore, we should cater our workplace language habits towards more gender-neutral wording. Instead of using he as the default pronoun, use they or them. Instead of saying sexual preference, say sexual orientation; one implies choice, while the other implies nature.

The aforementioned rules and their examples are just a few of the many that E. Gurman provided for each of the above categories. She also provided historical and societal insights into each to contextualize many of the words, idioms, expressions, and habits we use or have that are rooted in an offensive history. For more information, please check out E. Gurman’s comprehensive course on Inclusive Language.

Before concluding the webinar, E. Gurman mentioned two more important points for inclusive language, which were:

• Be direct – avoid idioms and expressions that may be rooted in discrimination and bias.
• Consult with, respect, and defer to people with lived experiences. When someone tells you of their lived experience, listen to them.

There were many questions posed during the webinar. One person asked when it is appropriate or necessary to “call someone out” for using an outdated or outright offensive term. She suggested using your judgment; if the term is a slur, then calling this out immediately is right and necessary; however, it is up to your discretion to call out an idiom or expression that could be offensive. One such example is someone using a term like “grandfather;” often, people do not know the racist history behind this word and, therefore, do not intend it to be racist. It is up to your judgment (and dependent on your relationship with the individual) to gauge if, when, or how you want to let them know that that term is offensive. If you yourself are called out for using an offensive term, listen and be appreciative. Though it may feel like an attack or be embarrassing, it is not; this is a learning opportunity and a way to show your commitment to DEI.

The presentation made can be found here:

https://www.cafii.com/wp-content/uploads/2023/11/Selected-Slides.pdf

On September 26, 2023, CAFII hosted a webinar and virtual fireside chat with Glen Padassery and Stuart Wilkinson. In addition to representatives from CAFII’s 15 member companies and 9 Associates, representatives from the following allied industry Associations attended:

• Canadian Life and Health Insurance Association, or CLHIA;
• the Travel Health Insurance Association, or THIA;
• the Insurance Bureau of Canada, or IBC;
• The British Columbia Financial Services Authority, or BCFSA ;
• The Insurance Council of British Columbia ;
•  Alberta Treasury Board & Finance, or ATBF; 
• The Alberta Insurance Council, or AIC;
• The Alberta Auto Insurance Rate Board ;
• The Financial and Consumer Affairs Authority of Saskatchewan, or FCAA ;
• The Financial Services Regulatory Authority of Ontario, FSRA ;
• Quebec’s Autorité des marchés financiers, or the AMF;
• The Financial and Consumer Services Commission of New Brunswick, or FCNB ;
• The OmbudService for Life and Health Insurance, or OLHI. 

In attendance as keynote presenters from FSRA were Glen Padassery, Executive Vice President, Policy & Chief Consumer Officer, and Acting EVP, Auto/Insurance Products at the Financial Services Regulatory Authority of Ontario or FSRA); and by Stuart Wilkinson, FSRA’s Chief Consumer Officer.

As Executive Vice President, Policy & Chief Consumer Officer; and Acting EVP, Auto/Insurance Products at FSRA, Glen Padassery is responsible for working across core regulatory areas to develop rules regulating a myriad of sectors. In addition to leading FSRA’s strategic policy function, Mr. Padassery also has responsibility for the Innovation Office and the Consumer Office roles within the organization. He has spent over 20 years within the public sector, with extensive policy, program design, and consumer protection experience, most recently as Assistant Deputy Minister of Consumer Protection with Ontario’s Ministry of Government and Consumer Services.

Mr. Padassery’s colleague Stuart Wilkinson has spent over a decade working in public policy with a focus on financial services regulation in Ontario. He has held several different roles at FSRA, including Senior Manager of Strategic Policy on the Authority’s pre-launch transition team; Director of Auto / P&C Insurance Policy after FSRA launched, and most recently as Chief Consumer Officer. As Chief Consumer Officer, Mr. Wilkinson is responsible for leading FSRA’s Consumer Office. Before joining FSRA, Stuart Wilkinson worked in the P&C insurance industry and at the Ontario Ministry of Finance, where he provided advice to the government on financial services regulation, including reforms to the province’s auto insurance system and the government’s response to the expert panel that originally recommended the creation of FSRA.

After brief introductory remarks by Glen Padassery, the fireside chat began with Stuart Wilkinson explaining the history of the Office of the Consumer, including why it was created and its main functions. In 2016, the Ontario government hosted an expert panel review of three regulatory agencies and concluded that a new regulatory authority should be created – FSRA. The panel also suggested the creation of the Office to give voice to Ontario consumers of various financial products across the Ontario insurance industry. Therefore, when FSRA and the Office began, it had the panel’s recommendation for a Consumer Office, a refreshed consumer-focused mandate from the government, and a regulator down the street in the Ontario Securities Commission that had already created a strong Investor Office. At its inception, the Office’s purpose was to give voice to Ontario consumers where there has, historically, been a lack of such a voice. This remains its core focus.

Funding for the Office, like FSRA, is derived from fees and assessments collected from FSRA regulates. The Office is a common cost centre in FSRA, and as such, each section regulated by FSRA bears a portion of the Office’s cost. Cost assignment is largely determined by size.  FSRA has always been and will continue to be transparent about its use of funds. With government approval, FSRA has the authority to retain its proceeds from enforcement action, although there are stipulations on the proper use of these funds. Soon, FSRA will be publishing its revised approach to the use of these funds to show its commitment to transparency in the sector.

Early in 2023, FSRA’s enterprise-wide strategy function was moved into the Office, which prompted a re-evaluation of the Office’s objectives. With the top priority continuing to remain amplifying the voices of Ontario consumers, the Office also identified a few other key areas. They are:

·         Strategic foundations: this relates to the foundational frameworks and processes that support and sustain FSRA. The flagship responsibility with this objective is to effectively lead FSRA’s enterprise-wide strategic and business planning process.

·         Policy leadership: the Office will identify and address issues and opportunities that are multi-sectorial, allowing FSRA to broaden its reach and understanding of Ontario consumers.

An important caveat was noted: the Office does not deal with consumer inquiries or complaints directly – FSRA has a separate centre for that. The Office is also not responsible for the delivery of FSRA consumer educational activities.

Stuart Wilkinson then highlighted the Office’s achievements to date. In terms of consumer-focused endeavours, the Office created a Consumer Advisory Panel whose main function is to inform FSRA of consumer perspectives and provide feedback on a variety of industry-specific topics.  The Panel is now in its fourth year of operation and has allowed for a high quality of engagement between FSRA and its members. The Panel not only generates interesting discussions but it provides important and insightful feedback from industry stakeholders. The Office’s research efforts have also been successful, and it is now generating insightful publications summarizing consumers’ voices. Each publication also includes a responsive plan-of-action on how the Office plans on using or acting upon its findings.

Regarding its strategic foundation objectives, the Office is a few weeks away from publishing its proposed Statement of Priorities for feedback. Finally, in terms of policy leadership, the Office is responsible for some FSRA publications, including a framework for complaints resolution and a recent consultation draft of guidance on IT risk management. It also has also created an internal framework for the use of disclosure as a consumer protection tool, which has been shared with and presented to many of its regulator peers. This has helped the Office to take a more thoughtful approach as an organization to how and when it thinks of disclosure as a viable tool for achieving positive consumer outcomes.

Stuart Wilkinson then touched upon the ways in which the Office impacts CAFII members, the primary and perhaps most immediate impact being that CAFII members now have a regulator actively trying to work alongside them to understand Ontario consumers. This increasingly collaborative environment also indicates an industry shift in thinking towards a more consumer-centric model. That being said, there is still much work that needs to be done. Stuart Wilkinson identified two specific items: sharing consumer research and improving its external-facing processes. These are top priorities because the Office wants interactions with stakeholders, such as CAFII members, to be more efficient and informed. One such way FSRA and the Office have made efforts to improve their external-facing process is by making this the longest consultation period to date for their priorities.

Keith Martin mentioned that protecting consumers can be challenging because as a group they are not organized, not funded, and do not have one focused perspective.  Stuart Wilkinson said that he completely agreed, and he said that insurance protection was critically important to Ontarians.  A consumer-centric approach already exists within the insurance sector, and FSRA is aligned with that focus.  A focus on vulnerable consumers is particularly important for FSRA going forward.  Keith Martin noted that the insurance relationship with consumers is entirely based on trust, and what FSRA wants and what the industry is foundationally based on is completely aligned, and Stuart Wilkinson said that he was completely in agreement on that: “There is really strong alignment between all parties.” 

Finally, the virtual fireside chat concluded with a brief explanation of the Office’s plans for the rest of 2023 and beyond. Of continued interest, the Office’s objectives include transforming its strategy and business planning process; publishing final guidance on IT risk management; launching its new approach to using proceeds from enforcement; and continuing to conduct and publish research results. However, aside from those objectives, Stuart Wilkinson indicated that one of the future goals for FSRA and the Consumer Office is to increase understanding and efforts around the treatment of vulnerable consumers across sectors. FSRA and the Consumer Office will be reaching out to CAFII members to ask for input and insight on this topic.

Anthony G. Ostler, President & CEO of the Canadian Bankers Association (CBA), spoke at a CAFII Reception on 6 June, 2023, following the Association’s 2023 Annual Meeting of Members and first meeting of its newly appointed 2023-24 Board of Directors.

Mr. Ostler gave an overview of the key priorities of the Canadian banking sector, noting that Canada benefits greatly from a stable, innovative financial services environment. 

He noted that the banking industry accounts for almost 4% of Canada’s GDP, employs nearly 300,000 Canadians, accounted for more than 10% of the country’s total corporate income tax in 2021, made annual dividend payments of more than $22 billion to millions of Canadians last year, and has extended $1.7 trillion in credit to Canadian businesses, including small and medium-sized enterprises.

Mr. Ostler called out the tendency of the federal government to levy special taxes upon the banking and insurance sectors.  Over the past year, he noted, the federal government has levied more than $9.4 billion in new taxes on banks and insurers.  He emphasized that such special, additional taxes put those industries at a competitive disadvantage and run counter to prudent public policy, noting that “The cumulative impact of these discriminatory actions will deter the flow of capital into the financial system, resulting in slower growth, less job creation and diminished productivity.”

Climate change was another major theme Mr. Ostler highlighted, which he described as a very real crisis real that has produced complex challenges for society.  He emphasized that Canada’s banks are committed to responding to this crisis, noting that they “are helping Canada realize its net-zero ambitions while also helping to meet interim energy demands in a volatile global context (…)”

Extending his message on the banking sector’s responsiveness, Mr. Ostler reported that Canada’s banks have continuously innovated, providing Canadians with extensive and trustworthy digital solutions. The sector has also made considerable investments in digitization to meet evolving consumer expectations.  In that connection, however, Mr. Ostler expressed serious concerns about the lack of regulator scrutiny of non-bank payment service providers, an oversight gap which creates a material risk for the entire sector.  Similarly, he also emphasized the importance of reviewing the reasoning behind creating a retail Central Bank Digital Currency, and questioned if such a currency is truly necessary.

Mr. Ostler concluded his remarks by underscoring the critical importance of the banking sector’s employees to its success and, in turn, to Canada’s success as a nation. He highlighted the sector’s related commitment to diversity, equity and inclusion so that all employees can thrive, noting that “Our industry has embraced action plans against systemic racism, exceeded benchmarks for women on boards and in executive positions, made meaningful progress on Indigenous reconciliation, and championed the rights of all Canadians.”

On 27 May, 2023 CAFII held a webinar with Romy Proulx, Associate, Stikeman Elliott and Paul Prosterman, Senior Partner, Norton Rose Fulbright.  Romy Proulx noted that Bill 96 builds on the original Quebec Charter of the French Language, which was adopted in 1977 to protect the status of French in Quebec.  That original Charter  provides that French is the official language of the province of Quebec.  However the new Charter amends the charter in many ways, including the language of insurance policies.  The Charter is very recent and there are scant regulations or guidance, leading to many grey areas.

Paul Prosterman said that the rules governing the language of insurance policies is impacted due to new requirements around “contracts of adhesion.”  Such contracts currently may be drawn up in English if that is the express wish of the parties.  Bill 96 will change that by requiring parties to a contract of adhesion to be drawn up in English can only be bound by such a contract if they are provided with a French version of the contract before they enter into the contract.  At a minimum, a French version of the policy must be available to the insured before entering into the contract.  As well, Romy Proulx noted that pleadings must now be made in French.  Filings may be in English, but a French version by a certified translator must be attached.

Paul Prosterman says that the contract of adhesion is one party draws up a contract that is non-negotiable.  Generally, insurance contracts are contracts of adhesion.  Certainly, even if a master policy is negotiated and not therefore a contract of adhesion, that is not true for individuals who are covered by the master policy and issued certificates.  So for credit protection insurance and travel insurance, a French version of the contract must be provided to the individual first. 

Romy Proulx agreed that the Charter is filled with untested elements and ambiguity.  She added that asking the Office of the French Language questions could lead to answers that are not optimal.  There are guidelines on the website of the Office that are quite helpful. 

Both panelists felt that further constitutional challenges of the Charter were possible.  It was noted that these rules in the Charter apply to call centres and interactions on the phone.  If a customer is bound on the phone to an insurance policy, that policy must be presented in French first to the customer. 

In addition to CAFII members, there were attendees from the Canadian Life and Health Insurance Association, or CLHIA; the Travel Health Insurance Association, or THIA; from the Canadian Bankers Association, or CBA; and from insurance and financial services regulators and policy-makers from across Canada, including the following:

• Quebec’s Autorité des marchés financiers, or the AMF;
• The Government of Nova Scotia; and
• Alberta Treasury Board & Finance.

The presentation made can be found here:

https://www.cafii.com/wp-content/uploads/2023/06/Presentation-Bill-96-May-2023.pdf

Summary of Webinar with Nicholas Herbert-Young, Senior Relationship Manager to the International Association of Insurance Supervisors (IAIS), on International Regulatory Trends & the Work of the International Association of Insurance Supervisors (IAIS).

CAFII held a webinar on 27 April, 2023 with Nicholas Herbert-Young, who is a member of the UK Financial Conduct Authority’s International Department, where he has a focus on global institutions, and where, as part of his FCA responsibilities, he is also Senior Relationship Manager to the International Association of Insurance Supervisors (IAIS).  Mr. Herbert-Young was recommended as a webinar speaker by FSRA CEO Mark White, who is the Chair of the Market Conduct Committee of the IAIS, which Committee Mr. Herbert-Young sits on.

Mr. Herbert-Young said that the UK Financial Conduct Authority is one of two regulators in the UK, with a focus on market conduct.  Mr. Herbert-Young’s role is to ensure that the FCA is properly represented at the IAIS and engages on the issues where it can add value.  The IAIS exists to ensure that supervision creates fair and safe outcomes for consumers, along with a focus on financial stability.  The key focus for the FCA on the IAIS is the Market Conduct Committee, which Mark White chairs and which the AMF also has representation on.  The IAIS produces issues papers on matters of interest. 

IAIS has over 200 jurisdictions which represents 90% of the world’s premiums.  Other international organizations are also involved in it, such as the National Association of Insurance Commissioners.  The IAIS sets up layers of principles, standards, and guidance which are agreed between the members.  There are also systems of review so that members can be assessed.  It does not have enforcement capabilities, but review exercises are very important and impactful.  Insurance Core Principles including ISP19 on the conduct of business are also fundamentally important. 

The IAIS has 35 staff members supporting its activities, and there is a paid Executive Director.  There is an agreed five-year plan with stated objectives, and the organization has become more worldwide as opposed to being driven by developed countries only.   Funding comes from the members and is based on premium income for the jurisdictions they represent.  A variety of committees provide input on specific issues.  The head office is located in Basil, Switzerland but meetings are held in different locations, and virtual meetings are now much more common.  There is also an Annual General Meeting each year in November, which is hosted by a member.  The Market Conduct Working Group has over 30 members. 

Nicholas Herbert-Young said that the main contributors to the market conduct work of the IAIS have been the AMF, and more recently FSRA. Key regulatory trends of the IAIS in the market conduct area has been on culture and diversity, equity, and inclusion (DEI).  The work on culture has been done with the Governance Working Group, and has led to some working papers.  The DEI work has focused on vulnerable populations and their treatment by insurers. 

Keith Martin noted the importance to CAFII members of principles-based regulation, and Nicholas Herbert-Young said the IAIS seeks to accommodate that approach.  The IAIS is based on standards and does not take a prescriptive approach, but members may have their own approach.  Mr. Herbert-Young noted that often those who request a principles-based approach follow up with a request for more clarity and detail, which is he said completely understandable. 

The IAIS is also exploring vulnerable populations and financial resilience, with some of this work being explored by the DEI Working Group.  In terms of the challenges caused by COVID-19, the FCA pivoted very quickly to a virtual model.  There was also discussion of the mortality and health impacts of climate change, and the resultant impact on the life and health insurance sector.  This is something that the IAIS is turning more attention to.  The IAIS has a fintech forum and is also monitoring the impact of technology developments on insurance and insurance regulation.  Another topic was operational resilience, which the IAIS has a Task Force on.  Firms need to be able to serve their customers properly, and to overcome financial crises. 

Among the big issues that need to be tackled were the cost of living crisis and the impact it has on vulnerable populations.  Management of risk was another broad bucket that was critical, including in the context of global warming.  International cooperation was another critical requirement going forward. 

In addition to CAFII members, there were attendees from the Canadian Life and Health Insurance Association, or CLHIA; the Travel Health Insurance Association, or THIA; and from insurance and financial services regulators and policy-makers from across Canada, including the following:

• The Financial and Consumer Services Commission of New Brunswick, or FCNB;
• Quebec’s Autorité des marches financiers, or AMF;
• The Financial Services Regulatory Authority of Ontario, or FSRA;
• The Insurance Councils of Saskatchewan, or ICS;
• The Alberta Insurance Council, or AIC;
• The Government of Alberta;
• Alberta Treasury Board and Finance, or ATBF;
• the Financial and Consumer Affairs Authority of Saskatchewan, or FCAA;
• the Government of British Columbia;
• the Insurance Council of British Columbia;
• the British Columbia Financial Services Authority, or BCFSA; and
• the Government of Nova Scotia.

The IAIS Website can be accessed here: https://www.iaisweb.org/

Links to Relevant Resources:

IAIS:

IAIS Year in Review 2022

IAIS Year in Review 2021

DEI stakeholder session, 9 February 2023

IAIS Stocktake on Diversity Equity and Inclusion (iaisweb.org)

Issues Paper on Insurer Culture, November 2021

Application Paper on the Use of Digital Technology in Inclusive Insurance, November 2018

Issues Paper on Increasing Digitalisation in Insurance and its Potential Impact on Consumer Outcomes, November 2018

Issues Paper on the Use of Big Data Analytics, February 2020

FCA:

FCA’s Consumer Duty

Sustainable Insurance Forum:

Sustainable Insurance Forum

At a reception following CAFII’s 4 April, 2023 Board meeting, held in-person in Toronto, Kartik Sakthivel, Global Chief Information Officer, LIMRA and LOMA, made a well-received presentation on broad technology trends. He emphasized looking not at what technology can do, but the customer experience and what customers want.  He repeatedly emphasized that output from data is worthless if the underlying data are not accurate and correct.  He also noted that younger generations have a great facility with technology and there is a need for businesses to recalibrate their approach to these customers, and to realize that they will face social media backlash if they do not perform up to expectations.

Kartik Sakthivel also emphasized that IT and data are not just technology department priorities, they are business-wide priorities.  The amount of data available to analyze is massive, and new developments in artificial intelligence have the capacity to disrupt businesses.  ChatGPT is the fastest growing consumer application in human history, and reached one million users in 5 days, and 100 million active monthly users in January 2023, just two months after its launch.  He noted the dangers to this new technology, however, and cited the example of two AI programs that mutually invented a new language that only they could understand.  The creators of those programs literally had to unplug them in order to contain the potential threats this development posed.

But returning to a constant theme, Kartik said that a great AI platform with bad data will lead to an awful AI experience.  Business leaders need to enhance their skills at what he described as “data literacy.”  He identified five steps to data literacy:

1. Make data an enterprise priority;
2. Communicate from the CEO on down;
3. Think global, act local;
4. Train and educate employees;
5. Engage and empower employees.

The presentation has been posted on the CAFII website and can be found here:

Download Presentation (PDF)