Who's Watching the FARM?

From the author's perspective, the re-design of Facility Association and the recommendation of risk-sharing pool expansion both contradict the aim of the Insurance Bureau of Canada, as well as the goal of other industry associations, to build and maintain a competitive, open market for property and casualty insurance products in Canada -- particularly in private passenger auto coverage. Without question, competition in any industry drives a certain level of market volatility in both product availability and price. The role of the Facility Association (FARM) is to provide availability of compulsory insurance to individuals who cannot find insurance in the competitive marketplace. Provinces with large FARM populations can be characterized as those trying to achieve broader public policy objectives through insurance regulation. Provided the long-term goal is to maintain an available and affordable private insurance market, industry representatives should actively pursue the formation of an Insurance Market Monitoring Board comprised of insurance industry executives, regulators and consumer group representatives.