Federally regulated companies must, however, also be licensed in each province and territory in which they undertake insurance activities. Provincial and territorial governments have responsibility for the terms and conditions of insurance contracts as well as the licensing of agents, brokers and independent adjusters. Federal, provincial and territorial regulators meet on a formal basis twice a year through their membership on the Canadian Council of Insurance Regulators. One of their continuing activities is the harmonization of licensing and other requirements. Additional efforts towards harmonization are being made by the Atlantic provinces.
Insurers compete with regard to rates, terms and conditions of insurance policies.
Canadians are also permitted to purchase insurance from insurers not licensed in Canada. However, the extent to which these unlicensed insurers can solicit business in Canada from Canadians is strictly limited and monitored by the regulatory authorities. As in other jurisdictions, marine insurance is exempt from federal regulation in Canada. Ontario is the largest private auto insurance market in Canada, and the industry has focused on recent changes to Ontario's legislative framework. Ontario introduced a system of no-fault auto insurance in 1990 in which accident victims receive compensation regardless of fault, with limited recourse to courts for further compensation.