Strengthening oversight and accountability of the life insurance sector
The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to better protect consumers in the market for life and health insurance.
To correct troubling business practices, many of which are outlined in two new reports, FSRA has begun implementing a six-point action plan, which includes:
- an enhanced sector supervisory approach
- a new regulatory framework, including a new Rule
- an enhanced and targeted Guidance
- enforcement
- whistleblower protection
- a consumer education campaign
As part of FSRA’s enhanced sector supervisory approach, today FSRA is releasing two reports: Life Agent Thematic Examinations: Tiered-Recruitment Model MGAs and Observed Practices in the Distribution and Sale of Universal Life Insurance.
In these reports, FSRA uncovered some troubling practices in the life and health insurance sector which are harming consumers. For instance, many agents are not properly trained and supervised, and customers are being sold Universal Life insurance policies they don’t need.
FSRA will continue to review this area, including reviews of insurers where appropriate, and continue to take enforcement action so consumers ultimately get policies and products that are right for them and their families.
Learn more:
- Life Agent Thematic Examinations: Tiered-Recruitment Model MGAs
- Observed Practices in the Distribution and Sale of Universal Life Insurance
- FSRA’s September 2022 review of three MGAs: CCIR cooperative MGA-focused thematic review – Consolidated observations report
- Related enforcement action:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.