Troy Woodland

CAFII held a webinar on mental health issues in the workplace on 30 March, 2023 with Paula Allen, Global Leader, Research & Total Wellbeing, TELUS Health; and Nigel Branker, Chief Executive Officer of Securian Canada, and a CAFII Board member.  This is the second webinar on this issue that CAFII has held.   

Paula Allen started the webinar off by citing research that indicates that there was a massive negative mental health impact in the beginning of 2020 due to the pandemic, which produced conditions that the human mind does not like; and that since those increases in high risk were noted in 2020, there has not been an improvement.  In 2019, 19% of workers were categorized as “high risk”; that number jumped to 35% in February of 2023. 

Nigel Branker noted that he was a former colleague of Paula Allen’s at Morneau Sobeco/LifeWorks (predecessor to TELUS Health) and was very pleased to be on a panel with her.  He noted that mental health issues were a primary driver of lost hours in the workplace, and that the workplace is a critical space to help people with mental health issues.  Paula Allen noted that productivity improvements require attention to mental health issues in the workplace. 

Nigel Branker said that organizations need to look at root causes of mental health issues, as opposed to just having programs to help people who have fallen through the cracks.  Workloads have to be looked at, as well as workplace flexibility including working from home.  Commutes are long in Toronto and elsewhere in Canada, and that has an impact on people’s quality of life.  Some people are also not comfortable with returning to the office because of inclusivity issues. 

Progress has been made, Mr. Branker said, in removing the stigma around mental health issues, but much more needs to be done, and many employees do not take advantage of existing programs out of a concern it could impact on their career prospects.  Paula Allen said that stigmatizing people is harmful, and prevents people from seeking help.  Also concerning is that young people have more concerns around mental health issues damaging their careers than older workers.  As well, senior leaders disproportionately feel that revealing mental health issues would impact their careers, and that the values of the company around supporting employees do not apply to their level of seniority. 

Nigel Branker said that someone in the organization who is a high performer but not aligned with the organization’s values can do a lot of damage, and that an organization should not tolerate behaviours that harm other employees.  He added that there are a lot of systemic issues in the workplace that can be addressed.  Paula Allen said that managers need to be trained in these issues so that they can be better prepared to handle them when they arise.  Nigel Branker added that executives give very tangible sales and other targets to employees, and that a similar discipline is required around supporting employees’ mental health in the workplace.

Paula Allen noted that women are more likely to want to work from home, and that the commute for younger people and new Canadians may be longer, as they may live further from where the business is located.  This could result in a less diverse group being in the office physically; and that, in turn, could have impacts on networking and career prospects for those who work from home. 

Paula Allen and Nigel Branker said that financial uncertainty in the economy at this time is also leading to additional stress and mental health issues.  Nigel Branker agreed that financial stress is one of a large number of contributors to mental health issues today.  Both panelists concluded with a call to action by employers to continue to commit to doing better around addressing mental health issues in the workplace. 

There were attendees at the webinar from allied industry associations CLHIA and THIA, and from regulator and policy-maker organizations including:

• The Financial and Consumer Services Commission of New Brunswick, or FCNB;
• The Canadian Council of Insurance Regulators, or CCIR;
• the Insurance Councils of Saskatchewan, or ICS;
• the Alberta Insurance Council, or AIC;
• the Government of Alberta;
• Alberta Treasury Board and Finance, or ATBF; and 
• the British Columbia Financial Services Authority, or BCFSA.

The poll results can be found here:

https://www.cafii.com/wp-content/uploads/2023/04/CAFII-Webinar-March-30-English-Poll-Results.pdf

CAFII Holds a Webinar on “Travel Trends and Travel Insurance Implications As Society Emerges From the COVID-19 Pandemic” 

CAFII held a 3 November, 2022 webinar with four expert panelists: Eliot Draga, from the Travel Health Insurance Association of Canada; Sheila Burns, from the Canadian Life and Health Insurance Association; Katia Umotonuwase, from Manulife and the Chair of the CAFII Travel Insurance Experts Committee; and David Moorcroft, travel blogger and host of “The Business of Blockchain” podcast.   

David Moorcroft said that travel is still recovering, with only half the travel globally in January to May 2022 relative to 2019.  Elliott Draga said that travel spend in Canada is about 75% in Q4 2022 relative to 2019, so that is another indication that there is still more recovery to occur.  Sheila Burns also noted that some of the Canadian travel may be due to use of travel vouchers, so the numbers may not even be as good as they seem.  Katia Umutoniwase agreed that there is definitely a recovery in place, and hopefully things will return to normal in 2023.  

Another factor is that people are thinking of cutting back on travel due to inflation and higher interest rates.  On the other hand, people have accumulated significant savings over the past few years during COVID.  Snowbirds are also less likely to be affected by inflation than other Canadians.  Older Canadians who wanted to travel but could not due to COVID are likely to spend what is needed to get the experience they want, no matter the cost.    

The panel spoke about some of the challenges at airports and with obtaining passports.  There are definitely significant service delays as governments and airlines try to adopt to heightened delays, mostly due to a staffing problem.  This is the same situation with the surge in demand for passports, with the government not anticipating the level of demand that occurred in a short span of time.   

The panel was asked about how travel has changed, and Katia Umutoniwase said that clients are now initiating questions about travel insurance.  There is an increase in people taking large, complex trips, she added.  Elliott Draga said that there are definitely more travel insurance policies being issued, and people are paying more attention to the terms and conditions of their insurance.   

The panel spoke about the adjustments that have been experienced in other areas, such as the shortage of pilots, the chip shortage, and the challenges in the car rental business.  There was also reference to some issues with the system for easier passage across the Canada-United States border, called Nexus.   

It was noted that now that there are lower level advisories regarding COVID, it is now covered in regular travel insurance for most policies, without the need for purchasing additional coverage or riders for COVID.  It is still very important for consumers to do their research and determine exactly what a policy covers, and what it does not.   

Most panelists felt that the next time a pandemic occurs, governments will be better prepared and will use a more scientific approach to some of their requirements.  The population may be better educated about the best response to take individually including more willingness to be vaccinated.  However, every situation is different and it is hard to predict how such a situation will unfold in future.  

Some polling questions were asked during the webinar and the results can be found here:  

https://www.cafii.com/wp-content/uploads/2022/11/CAFII-Webinar-Nov-3-English-Poll-Results.pdf

In attendance at the webinar were representatives from allied industry Associations the CLHIA and THIA, and from the Regulatory and Policy-Maker community:  

The British Columbia Financial Services Authority (BCFSA);  

Alberta Treasury Board and Finance;  

The Alberta Insurance Council; 

Insurance Council of Manitoba;  

the Financial Services Regulatory Authority of Ontario;  

Quebec’s Autorité des marchés financiers, or AMF;  

The New Brunswick Financial and Consumer Services Commission, or FCNB;  

The Office of the Superintendent of Insurance, Government of Nova Scotia;  and 

The Office of the Superintendent of Financial Institutions, or OSFI.  

CAFII Holds a Webinar with Pollara Senior Vice President Lesli Martin on Consumer Preferences and Product Development Trends

CAFII held a 5 October, 2022 webinar with Lesli Martin on Consumer Preferences and Product Development Insights–Emerging From Recent Research In Financial Services and Relevant Comparator Industries.  Ms. Martin, a Senior Vice President at Pollster Pollara Strategic Insights, presented a deck on “Consumers in the Post-Pandemic World.”  Her presentation noted that out of the pandemic, there were heightened mental health struggles for many Canadians, including higher than usual levels of anxiety and depression.  The worries that people struggle with ran the gamut from health concerns, economic worries, and learning how to do things differently.  Ontario has the highest level of mental health issues in Canada; Quebec has the lowest, but it is higher than usual everywhere in the Canadian. 

Canadians are also learning new ways of doing things, including increased digital sales, with Canadians conducting more e-commerce sales than ever before.  Work had changed as well, with many Canadians working from home.  As the pandemic appears to recede, new issues are now confronting Canadians, including high inflation, high interest rates, and international instability.  Two-thirds of Canadians expect inflation to rise in the coming months, and remain high for at least one year.  Canadians also do not believe that their wages will keep up with inflation. 

Pollara has also started a “rage index” which measures Canadians anger around six issues: the federal government, the provincial government, the Canadian economy, their own personal  financial situation, the types of changes happening in Canada, and the latest stories in the news.  An average of 49% of Canadians are annoyed or angry about these six topics, and 14% are very angry about the six topics.  On the other hand, while 25% of Canadians feel exhausted and burnt out, almost two-thirds are hopeful about the future.

Pollara has also noticed that Canadians are changing their behaviours due to inflation, with 73% buying cheaper brands of groceries, 68% spending less money on vacations this year, 72% eating out less at restaurants, and 67% delaying major purchases.  These trends are being observed in all parts of the country, and the impact is the same in urban and rural Canada.  But the impact is being felt most by lower income Canadians.

One of the impacts that Pollara has tracked is that both credit protection insurance and travel insurance are more likely now to be purchased online as opposed to before the pandemic.  However, consumers still want the ability to talk to someone, even if making an online transaction.  In general, the pandemic caused Canadians to be more comfortable with online banking than ever before. 

Post-pandemic, many Canadians want to continue to be able to work from home at least part-time, especially women.  Almost half of women say they are likely to quit their jobs if asked to return to the office full-time.  Most Canadians say that they will return to pre-COVID patterns of in person arrangements for loans and buying insurance. Getting the interaction right with customers around financial transactions is important, as over half of Canadians report feeling stress when interacting with the financial services sector.

A poll of participants asked: “Have you cut back on important purchases due to inflation?”   Of respondents, 20% said they had significantly cut down due to inflation, and 44% said they had cut back moderately; 37% said that they had not cut back at all.  Ms. Martin said that this was very aligned Pollara’s own research. 

Another poll of participants asked: “Tell us where you are in terms of a return to working from the office: just like before the pandemic?; still only working from home?; or hybrid, working from the office sometimes, but not every day.”  From respondents, 95% said they are only working from home or working in a hybrid model. 

There was excellent regulator and policy-making participation in the webinar, with the following organizations registered:

• the Financial and Consumer Services Commission of New Brunswick, or FCNB;
• the Nova Scotia Department of Finance;
• Quebec’s Autorité des marchés financiers, or the AMF;
• the Financial Services Regulatory Authority of Ontario, or FSRA;
• the Ontario Ministry of Finance;
• the Government of Alberta;  and
• the British Columbia Financial Services Authority, or BCFSA.

CAFII Holds Webinar on Deloitte Research Project on Best Practices in the Digitization of Credit Protection Insurance (June 2, 2022)

Deloitte Partner Melissa Carruthers and her colleague Marc Lewis presented to regulators, policy-makers, and government officials on 2 June, 2022 the high-level findings of their CAFII-commissioned research study on the best practices in the digitization of credit protection insurance.  There was excellent representation from regulators and policy-makers with the following registering for the webinar:

• The Alberta Insurance Council;
• The Autorité des marches financiers, or the AMF, in Quebec;
• The Insurance Council of BC;
• The British Columbia Financial Services Authority, BCFSA;
• The BC Ministry of Finance;
• The Government of Alberta;
• The Canadian Council of Insurance Regulators, CCIR;
• The Government of Yukon;
• The Nova Scotia Office of the Superintendent of Insurance;
• The Nova Scotia Department of Finance & Treasury Board;
• The Ontario Ministry of Finance; and
• The Financial Services Regulatory Authority of Ontario, FSRA.

The webinar covered the background on the purpose of the research, noting that it intended to identify best practices for CPI firms to adopt digitization, and drew on the March 2021 Pollara research study on the preferences of Canadians around digitization.  It noted that industry has experienced an accelerated shift towards digital purchasing and servicing following the events of COVID-19, however the insurance industry has also been historically slow at transforming its traditional business models to be more customer centric.

The presenters noted that the methodology for the research included interviews with CAFII members along with Deloitte’s own digitization models and knowledge.  The key findings were that:

• Digitizing CPI is a strategic priority for Canadian financial institutions;
• Relative to other insurance industries, Canadian CPI has unique challenges with regards to its digitization, accentuated by the multiple stakeholders involved;
• The CPI digital experience offered is highly dependent upon the lending journey (i.e., mortgages, lines of credit);
• The regulatory environment surrounding CPI can be perceived difficult to navigate digitally, especially for national organizations offering CPI across provinces;
• Several CPI distributors and underwriters have taken a leadership position by relatively investing more in digital over the past years;
• Adoption from representatives as well as clients in digital experiences continues to be an inhibitor to realizing the benefits of digital investments;
• Successful digitization of CPI extends beyond client-facing experiences, and includes back / mid-office operations;
• Digital experiences enabled by automation across the value chain with partners (e.g., underwriting, claims) were the most cited friction points;
• Collaboration across Distributors, Underwriter and Regulators will be key to delivering “Best-in-Class” experiences.

It was noted that the factors driving a move towards digitization in CPI were heightened customer expectations; an increasingly competitive landscape; pressure on back-office operational efficiency; and the availability and ability to activate data. Deloitte spent time explaining their ideal digital model and how to move from expectations to actually delivering, noting that the key attributes of successful digital insurers were:

• an articulated strategy and digital ambition;
• user centric digital experiences;
• being hyper focused on operational efficiency;
• sophisticated data, analytics and insights;
• scalable technology architecture;
• and digital talent and culture.

Deloitte also noted that there are unique challenges to digitization in CPI, including the evolving and regional regulatory environment; group underwriting in CPI; the strong ties of the product to lending; the multiple stakeholders; and eligibility practices.

CAFII Holds Webinar on “Principles-Based Regulation (PBR); The Emergence of Rule-Making Authority; and How They Work Together: A Complementary, Harmonious Fit Or “Dynamic Tension” For Canada’s Insurance Regulators.”

On 3 May, 2022 CAFII held a well-attended webinar on “Principles-Based Regulation (PBR); The Emergence of Rule-Making Authority; and How They Work Together: A Complementary, Harmonious Fit Or “Dynamic Tension” For Canada’s Insurance Regulators.”  Two leading Canadian experts participated in the panel discussion: Dr. Cristie Ford who is a full tenured Professor at the Peter A. Allard School of Law, University of British Columbia; and Stuart Carruthers who is a partner at Stikeman Elliott and a member of their Insurance & Reinsurance, Financial Products & Services, and Mergers & Acquisitions Groups, and a lawyer with whom CAFII has worked in the past.

Over 100 people registered for the webinar, including over 45 regulators and policy-makers, including 14 registrants from FSRA.  In total, the following regulators registered for the event:

• The Government of the North-West Territories;
• The British Columbia Financial Services Authority, or BCFSA;
• The British Columbia Ministry of Finance;
• The Insurance Council of BC;
• The Government of Alberta;
• The Alberta Ministry of Finance ;
• The Alberta Insurance Council;
• The Financial and Consumer Affairs Authority of Saskatchewan, or FCAA;
• The Insurance Councils of Saskatchewan ;
• The Financial Services Regulatory Authority of Ontario, or FSRA ;
• The Ontario Ministry of Finance ;
• The Autorité des marches financiers, or the AMF ;
• The New Brunswick Financial and Consumer Services Commission, or FCNB;
• The Canadian Insurance Services Regulatory Organizations, or CISRO; and
• The Office of the Superintendent of Financial Institutions, or OSFI.

Professor Ford began the webinar by stating that principles-based regulation ) (PBR) could be viewed as a “changed approach” to regulation, and she identified four characteristics of such an approach.  The first was that more of the regulatory rules would be at a higher level of generality to allow for flexibility.  An example of this would be not to say “do not drive over 50 kilometres and hour” (which is a rule) but rather to say “you should drive in a manner that is prudent and reasonable” (which is a principle).  Furthermore, when a new requirement comes about, the first approach should not be to develop a new rule, but rather to see if existing rules can cover that situation. 

Second, principles-based regulation makes sense in an environment where there is more change or complexity, and where one set of rules will not cover everything. In this sort of environment, regulators can struggle to get the rules right and to get the information they need to build rules that are effective and able to adopt to constantly changing circumstances.  In a principles-based regulatory environment, on the other hand, the regulator sets out the overall context, and industry fills in the details. 

The third feature is that principles-based regulation works most effectively where it is outcome-oriented and data-driven.  This involves ongoing consultation and dialogue with industry to ensure that the principles are understood and being met.  Fourth, cooperation is critical to the success of this model, but there has to be an enforcement capability that regulators can use if they need to.  Overall this model is more effective in many cases than developing a rule, to which industry may try to find a loophole, which the regulator then tries to close.  Principles-based regulation is more about industry and regulators working together towards a common objective.  Professor Ford said that the development of the FSRA Unfair or Deceptive Acts or Practices (UDAP) rule is an example of principles-based regulation, in that the rule is only 8-pages long and is based on broad, open concepts.

Stuart Carruthers commented on PCR and its relation to the fair treatment of customers (FTC) and said that FTC was the logical outcome of a principles-based regulatory regime.  This regime has its source in developments that begin in the United Kingdom coming out of the global financial crisis.  A critical source of insurance principles is the work done around insurance core principles (ICPs) by the IAIS (International Association of Insurance Supervisors), in particular ICP-19, which establishes core insurance market conduct principles.  This principle looks at a product across its entire life-cycle.

Christie Ford said that PBR and enforcement capability are not at odds, but rather they are complimentary.  Rules can have benefits as they can produce certainty and clarity, but they can also be restrictive and arbitrary.  The challenge for the regulator is to get the balance right.  The key here is proper implementation of the mix of tools the regulator has at its disposal. Dialogue with industry is necessary to fill in the areas of vagueness. 

Stuart Carruthers said that the benefit of rules-based authority is to give regulators the ability to respond to developments more quickly.  Principles-based regulation should allow for a more efficient system, letting industry apply expectations in a way that makes sense for their organization, while allowing regulators to focus on a risk-based approach that emphasizes the largest regulatory issues they need to look at.  A drawback of PBR is that it can lead to more ambiguity, which in turn can lead to more work and a requirement for more resources.  For smaller firms with fewer resources in particular, rules-based approaches can be easier to deal with.

Cristie Ford said that PBR does require a mental shift in terms of the approach taken to regulation.  PBR is an ongoing, evolving regulatory approach that requires confidence and transparency.  Regulators may need to provide support for smaller firms that have fewer resources.  Christie Ford added said while PBR can produce more innovation, not all innovation is necessarily good—and the financial products that led to the financial crises is an example of that.  Stuart Carruthers felt that a PBR-regime fosters more innovation because it is more flexible and adapts better to change.

Stuart Carruthers felt that Canada does not have a PBR-regime throughout the country, with different provinces at different stages down this path, but that there is a general trend toward principles-based regulation.  On the issue of the Canadian insurance industry having 17 regulators and therefore a need for harmonization, Stuart Carruthers mentioned CCIR and CISRO as an example of an effort to coordinate activity.  But there are also siloes where different provinces are going in different directions.  More provinces are providing their regulators with rule-making authorities, and there is a tendency for regulators with rule-making authority to use it. 

Cristie Ford said that rule-making authority for regulators is better than relying on the legislature to shift rules where necessary, which is a very time-consuming process.  But that does not mean rules should be developed unless they are absolutely necessary, and unless existing rules cannot manage the outcomes the regulator is seeking. Stuart Carruthers said that some of the work that FSRA is doing is the high-water mark in Canada around principles-based regulation.

Stuart Carruthers said that a rules-based approach leads to compliance departments being like referees; PBR leads to compliance departments being more like coaches.  On the issue of how to demonstrate a FTC culture, Cristie Ford said it was difficult to measure but ongoing dialogue and transparency can help show that the regulated industry is doing the right thing.  

Stuart Carruthers said that Canada was a world leader in PBR and Canadian regulators have better relationships with their regulated entities than is the case in many other jurisdictions.  Canada does not suffer from the problems other jurisdictions have where the regulator is focused on fines for revenue-generation, and where regulatory leaders are  politically-appointed and use those positions as a stepping stone to political careers.

CAFII Holds Webinar on 7 March, 2022 on Mental Health Issues and Challenges in the Workplace, At Home, and In Society: Coping With the Persistent Pandemic’s Impact

On 7 March, 2022 CAFII held a webinar on “Mental Health Issues and Challenges in the Workplace, At Home, and in Society: Coping with the Persistent Pandemic’s Impact.” Participating in the webinar were three leading experts on these issues: Paula Allen, Global Leader and SVP, Research and Total Wellbeing, LifeWorks, the successor to the business formerly know as Morneau Sobeco; Irene Keller, Director, Group Benefits Product and Solutions, Sun Life; and Shawna Oliver, AVP, Head of Global Benefits, Manulife, working out of its Boston office.

Panelists all felt that the COVID-19 pandemic had definitely had an impact on mental health issues for Canadians.  Paula Allen said that the impact had been greater than many realized. Change, uncertainly, risk, and isolation had all been introduced into peoples’ lives in the past two years, and these are all stressors.  LifeWorks has surveyed pre-pandemic and current levels of mental health and wellness, and has found that there has been a massive decline in the mental health status of people.  This has resulted in major increases in mental health risks, including one-third of Canadians being at risk of mental health issues.  Taking another measure, risky levels of alcohol intake has moved from 2 percent of the working population to 8 percent of the working population during the pandemic. 

Irene Keller added that mental health issues were a big issue before the pandemic, and this has now been accelerated by the past few years, especially for the under-35 population.  Paula Allen noted that there are more vulnerabilities and challenges for younger people, and the pandemic has added to the already existing stress for this more vulnerable population.  This is also an age where isolation is more challenging and that has made the pandemic worse for this younger population.  Shawna Oliver said that working mothers are another vulnerable group, and that the impact of stressors over the past two years are going to manifest themselves at some point in time. 

The panelists spoke next about workplace culture, and the importance of creating a safe, supportive environment.  Many employees still associate a stigma with mental health issues, are many will not want to share any such issues with their employers.  Employers have to take this on a critical priority, and the right tone has to be set throughout the organization. 

The right tools and resources are critical, but the cultural environment is even more important. It was also noted that employees should not have to choose between physical and mental health—they are not separate issues, they are linked, and both need to be part of the equation for employees.  The panel also noted that “one size fits all” does not work for mental health issues, and employees need to offer employees options. 

The session included good representation from regulators across the country, with the following regulators registered for the session:

• The Alberta Insurance Council;
• The British Columbia Financial Services Authority, or BCFSA ;
• The Financial and Consumer Services Commission of New Brunswick;
• The Government of Alberta;
• The Insurance Council of Manitoba; and
• The Insurance Councils of Saskatchewan.

The webinar included some live polls that demonstrated that 100% of attendees had faced, or knew someone who had faced, mental health challenges; but the polls also revealed that nearly a third of attendees would not want to reveal to their employer that they were dealing with a mental health issue.

Kathryn Kitchen, VP Head of HR at Manulife, posted a link to the webinar on LinkedIn:

LinkedIn Posting on CAFII Mental Health Issues Webinar