The Autorité des marchés financiers has reached an agreement with the Chambre de l’assurance de dommages that will authorize ChAD to carry out inspections of small damage insurance and claims adjustment firms.

Under the one-year agreement announced Friday, the ChAD will be authorized inspect damage insurance and claims adjustment firms consisting of 24 representatives or less, in accordance with the inspection program approved by the AMF. This doesn’t include insurers governed by solvency standards and continue to be overseen by the AMF. The AMF will continue to carry out inspections of damage insurance and claims adjustment firms with 25 or more representatives.

“This pilot project will help us boost the number of inspections with respect to damage insurance and claims adjustment,” says AMF president and CEO Jean St-Gelais. “The agreement reflects our determination to confirm compliance by firms on a regular basis and further ensure that consumers are adequately protected.”

The AMF will provide the ChAD with an annual list of damage insurance and claims adjustment firms with 24 reps or less. As well, the AMF prepare a monthly list of firms that require inspection.

The ChAD will deliver to the AMF a consolidated quarterly report on all inspections carried out and any major shortcomings that have been noted, as well as a report on action plans adopted to correct any variations.