Alberta Insurance CouncilStakeholder Information Session

2017

May 18 - EdmontonMay 25 - Calgary

Follow AIC on TWITTER @AbCouncil

1. Overview of Insurance Councils

2. Review of Annual Report and Financial Statements of the AIC for the year ended December 31, 2016

3. 2016 Highlights

4. Proposed Regulatory Amendments

•Insurance Agents and Adjusters Regulation

•Certificate Expiry, Penalties and Fees Regulation

5. 2017 Objectives

6. Renewal Demo

7. Question and Answer Period

AGENDA

General Insurance

Council

(8)

Life Insurance

Council

(6)

Insurance Adjusters’

Council

(4)

Alberta Insurance

Council

(5)

Council Structure

2016 Certificates of Authority

• Life Insurance Council 35,764

• General Insurance Council 15,655

• Insurance Adjusters’ Council 1,941

53,360

30% of these certificates are held by non-residents

LIC

GIC

IAC

Certificates of Authority

2016 2015 2014 2013

Life Insurance Council 35,764 33,165 29,833 28,474

General Insurance Council

15,655 14,616 13,475 12,760

Insurance Adjusters’ Council

1,941 1,450 1,407 1,366

TOTAL 53,360 49,231 44,715 42,600

• 8% increase in Certificates from 2015-2016

• 25% increase in Certificates from 2013-2016

2016 ExaminationsLIC

Module # Administered Pass Rate

Ethics & Professional Practice 2,889 89%

Ethics & Professional Practice (Quebec) 45 76%

Life Insurance 2,605 79%

Accident & Sickness Insurance 2,937 85%

Segregated Funds & Annuities 2,722 74%

Total Modules 11,208

2016 ExaminationsGIC

# Administered Pass Rate

Level 1 1,999 37%

Level 2 715 22%

Level 3 104 23%

IAC

Level 1 141 49%

Compliance Activity

New Complaints

Life Insurance Council2016

1722015

1042014

73

General Insurance Council 117 66 75

Adjusters’ Council 9 8 19

Best Practice Reviews

25 meetings with 207 Certificate

Holders 41 24

Compliance Audits

Errors & Omissions Insurance

44 insurers provided information for 536 licensees

1% non-compliance

Compliance Audits

Continuing Education

Audit candidates randomly selected from list of those agents renewing in the last week of renewal period (June 30)

150 audit candidates selected 62 suspended for failure to respond 27 licensees cautioned for late compliance

Audits will continue on an ongoing basis

2016 Financial Statements Highlights

• AIC funded entirely by insurance industry through license, assessment, examination, and continuing education accreditation fees

• No taxpayer dollars fund AIC operations

2016 Financial Statements Highlights (cont’d)

2016 Revenue (all sources) 6,235,668

2016 Manpower 3,033,734

2016 Operations 2,350,582

2016 Revenue over Expenditures 851,352

2016 AIC Revenues and Expenditures

2016 2015

Revenue 6,235,668 6,133,615

Expenditures 5,384,316 5,384,743

Net Assets 4,990,736 4,139,384

License FeesAgents and Adjusters

• AIC fees last reviewed 2004

• AIC 2015 Budget included a 5% reduction in expenditures over 2014

• AIC 2016 Budget included a 2% reduction in expenditures over 2015

• No fee increases are planned in 2017. Volume increases and expense restraints

Net Asset Study

• Recommends 1 year Operating Costs retained

• 2016 Operating Costs $5.4 million

• Accumulated Net Assets $4.9 million

Proposed Regulatory Amendment

• Certificate Expiry, Penalties and Fees Regulation

• Insurance Agents and Adjusters Regulation

2016 AIC Highlights

• National modularized LLQP implemented January 1, 2016

• New General Level 1 exams implemented January 2016

• New General Level 2 exams implemented July 2016

• General Level 3 curriculum finalized. New examinations developed for 2017 Q1 implementation

• Website redesign completed

• Audit program initiated:

Continuing Education

E&O Insurance

• Renewal focus groups conducted and systems adapted

• Renewal of 54,000 Certificates commencing May 1

2017 Objectives

• Review of classes of insurance sold under Restricted Certificates of Authority (Travel)

• Review of Audit process to improve accuracy and efficiency

• AIC will continue to pursue regulatory amendments:

o Insurance Agents and Adjusters Regulation

o Certificate Expiry, Penalties and Fees Regulation

• Finalize online applications for all stakeholders

• AIC will finalize 2017-2022 Strategic Plan

Stakeholder Meeting Administration

• CE credits added within three (3) business days

• A survey will be sent to all participants by June 9 –We want to hear from you!

• This presentation will be added to the website by June 15

• Renewal demo is up next

• Renewals close June 30

• Follow us on Twitter @AbCouncil

Q & A

QUESTIONS?

2017 Alberta Insurance CouncilLicense Renewal Process

Presented by: Janice Janz, Licensing Officer

May 18 - EdmontonMay 25 - Calgary

Follow AIC on TWITTER @AbCouncil

Logging In

Logging In

Reset Password

What’s My CIPR #?

Continuing Education Credits

Continuing Education Credits

Updating Continuing Education Credits

Completing Continuing Education Update

Choose License to Renew

Renew!

Step 1

Step 2: Confirm Address(es)

Step 3: Errors & Omissions

Step 4: Answer Questions & Declarations

Step 5: Pay

Payment Processing

Payment Confirmed

Alberta Is Not My Home Jurisdiction

Alberta Is Not My Home Jurisdiction

How to Print My Certificate of Authority

How to Print My Certificate of Authority

How to Print My Certificate of Authority

How To Print My Certificate of Authority

What If I Can’t Remember All of THIS?

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

@AbCouncil

Follow us on TWITTER

@AbCouncil

Q & A

QUESTIONS?