On December 7, 2017, the RCCAQ set out its positions before the parliamentary committee studying Bill 141. The topics we raised included the dual regulatory system for insurance representatives, distribution without representatives and online insurance sales. I would like to update you on the latter point, which is one of the key issues facing the parliamentary committee (its work wraps up today, January 18).

Online sales put your clients at risk

The Internet is no way to ensure our client advisory role. If Bill 141 is adopted in its current form, whenever our clients go to buy insurance products online, they will inevitably be left to their own devices while being faced with multiple sources of complex information. Without the involvement of a certified insurance representative, the Internet offers no guarantees that clients will understand what they are doing and, consequently, no guarantees that their financial well-being will be protected.

In addition, we are all well aware that, unlike standard consumer goods, insurance products are so complex that brokers need to be certified and have to update their knowledge on a regular basis. Why would anyone think that with this bill uninformed consumers would be adequately protected if they wanted to purchase insurance products online by themselves? Simply asking the question sheds light on the answer...

So here's what we're telling the government… and what you can tell your MNAs!

In our view, it is essential that clients receive equivalent advice at all times—and this goal cannot be achieved if certified representatives are not involved in transactions alongside consumers, regardless of the distribution model. Therefore, the RCCAQ has recommended to the government that a certified representative should be involved in all online transactions in order to provide a solid measure of protection for consumers and their financial well-being.

What you need to know about online sales:

• Insurance products are complex.
• Dramatic consequences stemming from improper coverage pose a high risk for consumer protection, including their financial assets.
• It is essential that a certified representative be involved in all online transactions.

A tool to convince your MNA

We regularly let you know that we need you to help us carry out our initiatives. More specifically, here is some content that you can use when contacting your MNAs about the importance of these key issues.

Other major issues are on the table

Online sales are not the only issue on the table. The provisions in Bill 150 concerning us are another matter that will require significant lobbying efforts. In this legislation, the government's commitment to clarifying the definition of a brokerage is laudable. However, the RCCAQ continues to have doubts about the measures being promoted to reach this goal. We will be taking every opportunity in the coming weeks to hammer home the following messages:

     - Minimum number of insurers
Requiring brokers to supply the names of at least four insurers when providing clients with a quote would be very difficult to put into practice. While we would maintain the government's goal of clarifying brokers' role in dealings with consumers, the RCCAQ proposes that each brokerage should have contracts in place with at least two different insurance companies at all times (personal as well as commercial insurance).

     - Brokerage firm shareholders
In our view, the proposed measures in this regard should be withdrawn; instead, the current legislation and regulations should be enforced. Under the current system, a financial institution's ownership interest cannot exceed 20% of a firm's voting shares or 50% of the participating non-voting shares.

A busy year for the RCCAQ

Our lobbying efforts on these major issues are on top of the day-to-day work we do to assist you with the running of your firms. We are here to help in any way we can if that means making your business more profitable! Please feel free to contact us if you have any questions.