TORONTO, Dec. 19, 2024 /CNW/ - A new report by Ontario's financial services regulator, FSRA, suggests that the life and health insurance industry has more work to do to protect consumers.
Between 2022-2024, FSRA reviewed 319 agents through its Life Agent Misconduct Report and proactive supervision programs.
"While the 319 agents we reviewed don't represent the entire sector, some of their behaviours raise consumer protection concerns," said Huston Loke, Executive Vice President, Market Conduct at FSRA. "We strongly encourage insurers to review their compliance systems and ensure their agents are selling insurance products that meet their clients' needs."
FSRA identified certain agent behaviours that are not in the best interest of consumers:
- Providing false or misleading information to insurers and consumers
- Engaging in coercion
- Fronting for unlicensed individuals
- Not providing written disclosure of conflict of interest
- Not adhering to best business practices
FSRA took the following top three actions:
- Issued a business practice letter in 57 cases
- Escalated for further investigation in 55 cases
- Closed with no concerns in 15 cases
Insurers are responsible for the conduct of their agents, including agents contracted with their distribution partners, and FSRA expects everyone in the sector to put customers' interests first.
Going forward, FSRA will prioritize working with the industry to improve the quality of Life Agent Misconduct Reports received and share trends. This will enable FSRA to focus its supervision efforts on the areas of highest risk to consumers.
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FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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