Protecting Life and Health Insurance Consumers in Ontario

FSRA strengthens oversight and accountability of the life insurance sector

TORONTO, Oct. 3, 2023 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to better protect consumers in the market for life and health insurance.

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.

"To correct troubling business practices, many of which are outlined in two new reports we released today, we developed an informed, evidence-based and transparent course of action to address these regulatory risks and challenges. It's our six-point action plan designed to enhance the protection and fair treatment of consumers," said Huston Loke, Executive Vice President, Market Conduct at FSRA

FSRA's six-point action plan includes:

1. An enhanced sector supervisory approach;
2. A new regulatory framework, including a new Rule;
3. An enhanced and targeted Guidance;
4. Enforcement;
5. Whistleblower protection; and
6. A consumer education campaign.

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

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.

Links

• 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 issues notice of proposal against World Financial Group Insurance Agency of Canada Inc.
  • FSRA issues compliance order against Greatway Financial Inc.

FOR MEDIA INQUIRIES:

Russ Courtney
Sr. Media Relations and Digital Officer
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario