This section focuses on the identification of major Canadian insurance programs administered by government agencies and insurance industry organizations. The candidates are expected to have an understanding of the objectives, operations, and effectiveness of several programs.
What you should know:
- Describe the origin and purpose (why have coverage?)
- Describe the operations and risk transfer process (how does it work? what is involved?)
- Evaluate the effectiveness of such a program (or what would make it effective?)
You may have to discuss active programs and/or proposed programs (flood). The process is the same in either case – just imagine what the answers would be if the program was operational (what if Canada had a flood program?).
Due to limited content regarding bullet point #3, many questions focus on points #1 & #2.
- Agricultural Insurance
- Employment insurance, Workers compensation insurance, Health care insurance
- Flood insurance
- Guaranty funds (PACICC)
- Residual personal insurance markets, e.g., auto, property
- Terrorism Risk Insurance
Reasons & Evaluation
- Necessary: Filling insurance needs unmet by private insurance
- Necessary: Compulsory purchase of insurance
- Efficient / Accepted: Convenience
- Efficient / Accepted: Greater efficiency
- Welfare: Social purposes
Level of Government
The government (either state or federal) can be involved in three levels as either
- exclusive insurer,
- partner with private insurers or
- as a competitor to private insurers.