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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
2
General InsuranceCouncil
(8)
Life InsuranceCouncil
(6)
Insurance Adjusters’Council
(4)
Alberta InsuranceCouncil
(5)
Council Structure
3
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
4
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
5
National LLQP
• Modular Exams commenced January 2016
• Can take the modules in any order
• Fee includes one attempt per module
6
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%
7
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%
8
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
9
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
10
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$
11
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$
12
Revenue: Continuing Education (CE)
2018 2017
Accredited providers 5,500$ 6,000$ Course submissions 204,150 186,478
Total 209,650$ 192,478$
13
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
14
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
15
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
16
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
17
Continuing Education Audit - Full
Total Licenses Audited 697
Total Licensees Audited 404
Results:Total Passed 361Total Failed 43
18
E&O Restricted Certificate Holders Audit
Total Restricted Certificate Holders Audited 141
Participating Insurers/Sponsors 3
Results:Total Passed 135Total Failed 6
19
Restricted Certificate Holders Audit Verification of Sponsorship Contracts
Total Agencies Audited 425
Participating Insurers/Sponsors 13
Results:Contracts Confirmed 420Contracts Withdrawn by Insurer 5
20
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
21
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
22
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
23
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
24
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
25
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
26
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
27
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!
28
Q & A
Questions?
29
Follow us on Twitter @AbCouncil, #AICupdate