Omar Wakil on Canada’s Competition Act and its impact on insurers responding to natural disasters

As the federal government looks to revamp its Competition Act, the Insurance Bureau of Canada (IBC) has raised concerns that the nation’s competition law has become an obstacle in addressing the urgent needs of Canadians affected by natural disasters. IBC argues that insurers can’t respond quickly to claims in fear of potential sanctions due to competitor collaboration.

In a discussion with The Logic, partner and co-chair of the firm’s Competition and Foreign Investment Review practice Omar Wakil noted that sections of the act may not be “well suited to handle extraordinary events or policy issues that exist outside of competition law”—particularly the sections that are intended to deal with competitor collaborations that harm consumers.

“Competitors may want to get together to talk about ways to protect the environment that might impact their pricing,” he said.

When considering a solution to this pressing issue, Omar suggests an emergency ruling approach that can be assessed on a case-by-case basis.

“There ought to be a government override to say that in certain circumstances, you should be able to call up a minister or someone else and get a quick green light to do something,” he added.

You can read more about our Competition and Foreign Investment Review work on our practice page.

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