Stakeholder 2019 FinalFinal - Alberta Insurance Council...2018 Examinations 2018 2017 Life Insurance...

Stakeholder Information Session2019May 16 – Edmonton • May 23 - Calgary

@AbCouncil • #AICupdate

Agenda1. Overview of Insurance Councils2. Review of Annual Report and Financial Statements of the

AIC for the year ended December 31, 20183. Audit and Compliance Activity4. Renewal Statistics5. 2018 Highlights6. Single Financial Sector Regulator7. 2019 Objectives8. Question and Answer Period

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General InsuranceCouncil

(8)

Life InsuranceCouncil

(6)

Insurance Adjusters’Council

(4)

Alberta InsuranceCouncil

(5)

Council Structure

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2018 Active Licenses# of Active Licenses at December 31, 2018

1,941 1,808 1,809

15,655 16,502 16,579

35,764 37,570 40,107

-

10,000

20,000

30,000

40,000

50,000

2016 2017 2018Adjusters General Life & A&S

• 4.7% volume growth in Certificates• 31% of these Certificates are held by non-residents

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2018 Examinations2018 2017

Life Insurance Council (LIC) 13,483 13,703General Insurance Council (GIC) 2,692 2,893Insurance Adjusters’ Council (IAC) 179 144

16,354 16,740

0

2000

4000

6000

8000

10000

12000

14000

16000

LIC GIC IAC

2018 2017

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National LLQP

• Modular Exams commenced January 2016

• Can take the modules in any order

• Fee includes one attempt per module

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National LLQP

Pass Fail Total Pass Rate

A&S 3,063 471 3,534 87%

Ethics (Q) 10 1 11 91%

Ethics (CL) 3,174 191 3,365 94%

Life Ins. 2,661 543 3,204 83%

Seg. Funds 2,633 736 3,369 78%

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General Insurance & Adjuster Exams2018 PASS FAIL TOTAL PASS RATE

General Level 1 640 1,176 1,816 35%

Level 2 241 558 799 30%

Level 3 35 42 77 45%

Adjuster Level 1 92 87 179 51%

2017 PASS FAIL TOTAL PASS RATE

General Level 1 717 1,180 1,897 38%

Level 2 270 635 905 30%

Level 3 34 57 91 37%

Adjuster Level 1 62 82 144 43%

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2018 Financial Statement Highlights

•AIC funded entirely by license, assessment, examination, and continuing education fees

•No taxpayer dollars fund AIC operations•AIC fees were last reviewed in 2004

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Revenue 6,889,512$ 6,737,188$

Salaries & Benefits 3,187,777 3,167,811 Supplies & Services 2,301,425 2,381,854 Amortization 317,738 308,466 Total Expenses 5,806,940 5,858,131

Net Surplus (Deficit) 1,082,572$ 879,057$

Net Assets 6,952,365$ 5,869,793$

2018 Financial Statements Summary2018 2017

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Revenue: Licenses & Assessments2018 2017

Licenses Adjusters 211,040$ 208,190$ General 1,957,078 1,806,182 A & S 1,348,313 1,679,505 Life 2,104,080 1,812,436 Transfers 143,345 132,100

5,763,856 5,638,413

Assessments 164,250 158,625

Total 5,928,106$ 5,797,038$

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Revenue: Exams2018 2017

Adjusters 8,950$ 7,200$

General: Level 1 90,800 94,850 Level 2 59,950 45,250 Level 3 3,850 4,550 Total General Revenue 134,600 144,650

LLQP & A&S 491,600 523,350

Total 635,150$ 675,200$

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Revenue: Continuing Education (CE)

2018 2017

Accredited providers 5,500$ 6,000$ Course submissions 204,150 186,478

Total 209,650$ 192,478$

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2018 CE Providers and Courses Approved

23 24 22

1,843 1,834

2,210

-

500

1,000

1,500

2,000

2,500

2016 2017 2018

CE Providers CE Courses

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Compliance Audits conducted in 2018Start Date Type of Audit Number of Licenses Audited

July 2018 Errors and Omissions (E&O) 11,127

July 2018 Continuing Education (CE) – Single Course 7,853

July 2018 Continuing Education (CE) - Individuals 697

Number of Restricted Certificate Holders Audited

October/November 2018Restricted Certificate Holders (RCH)Verification of E&O Coverage and Sponsorship Contracts

566

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Errors & Omissions Audit Participating E&O Insurers 42Total Licenses Audited 11,127

Individuals unconfirmed by E&O Carriers 92

Results:

Total Individuals Audited 92Total Passed 43

Total Failed 49

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Continuing Education Audit – Single Course

Results:

Total Individuals Audited 113Total Passed 100Total Failed 13

Total Licenses Audited 7,853Participating CE Providers 76

Individuals reported unconfirmed by CE Providers

113

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Continuing Education Audit - Full

Total Licenses Audited 697

Total Licensees Audited 404

Results:Total Passed 361Total Failed 43

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E&O Restricted Certificate Holders Audit

Total Restricted Certificate Holders Audited 141

Participating Insurers/Sponsors 3

Results:Total Passed 135Total Failed 6

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Restricted Certificate Holders Audit Verification of Sponsorship Contracts

Total Agencies Audited 425

Participating Insurers/Sponsors 13

Results:Contracts Confirmed 420Contracts Withdrawn by Insurer 5

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Compliance Statistics: New Case Files opened 2018 vs 2017

2018 2017

General Insurance Council 140 102

Life Insurance Council 382 277

Adjusters’ Insurance Council 10 12

Total 532 391

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Compliance Statistics: Case Files closed 2018 vs 2017

2018 2017

General Insurance Council 143 114

Life Insurance Council 483 158

Adjusters’ Insurance Council 15 12

Total 641 284

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Renewal YOY Review (May 1 – June 30)

Year Total Certificates Renewed

Total Telephone Calls Received

Average Calls per day

2016 50,684 20,723 339

2017 55,238 12,231 201

2018 53,774 8,687 197

• 50% renewed by May 30, 2018! (Hit 50% on May 31st in 2017)• 2019 61,239 renewals eligible

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2018 Highlights

•Development of Corporate and Restricted Certificate Online Licensing Portal – Completed

•Enhanced Cyber Security and System Stability. Penetration Audit successfully concluded

•Enhancements to AIC website to promote ease of navigation for consumers and licensees

•Significant growth in audit initiatives• Increased extra jurisdictional presence

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Single Financial Sector Regulator (“SFSR”)

• In October, 2017 the President of the Treasury Board/Minister of Finance announced the Single Financial Sector Regulator (SFSR) project for the Province of Alberta

• Treasury Board and Finance favours a fully amalgamated entity

• Entities (Insurance, Pensions and Financial Institutions) currently under review for amalgamation include:

oFSRPoCUDGoAIRB

o CEAC

o Insurance Councils• AIC• GIC• LIC• IAC

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Single Financial Sector Regulator (“SFSR”)

•AIC supports a structure that preserves the independence of Councils and their quasi-judicial functions

•Project is currently on hold pending establishment of UCP government priorities

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2019 Objectives• Redesign of Compliance Management System• Comprehensive Review of E&O• General Insurance Education Data Validation and Study Materials• Harmonize General Insurance entry level educational standards

with CISRO• Increased and Enhanced Communications

oConsumerso Licenseeso Stakeholders

• SFSRoContinued discussion with Minister and government officials

• Renewal commenced May 1, 2019

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Stakeholder Meeting Administration

• CE credits added within five (5) business days• A survey will be sent to all participants no later than

June 7 – We want to hear from you!• This presentation will be added to the website by

June 14• Renewals close June 30 – Don’t delay!

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Q & A

Questions?

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