Quebec's Autorité des marchés financiers (AMF) is currently looking into the regulatory framework that will accompany the legislation governing online insurance sales. Prior to the publication of these regulations and the subsequent round of consultations, the RCCAQ would like to play a leading role by setting up a member advisory committee. Would you like to take part? Please let us know if you are interested. Once the AMF has published the regulations, you can have your say and share your points of view!
Reminder about online insurance sales
As we have often noted in the past, the legislation governing online insurance distribution had to be updated in order to fill a dangerous legal void that had been hampering efforts to protect consumers. Thanks to the new legal provisions, adopted in June 2018 in the form of Bill 141, that grey area has now been resolved (the provisions are scheduled to take effect in June 2019).
However, a number of other issues are still unresolved. Since online insurance sales have been authorized without the mandatory involvement of a certified representative, certain doubts have arisen. For example, in the event of a claim, how do we ensure that consumers do not have to shoulder 100% of the responsibility for their purchase? How do we ensure that price is not the only selection criterion? And how do we ensure that obtaining sound advice continues to be a key part of buying insurance?
Certain obligations are incumbent on insurers or firms wishing to engage in online distribution; these obligations are set out in the new law. They are aimed at limiting certain issues by ensuring that consumers will always be aware that they can talk to a certified representative and can obtain the right advice for their situation. These measures, however, may not be enough. As a result, the regulatory process will be an important step in which the RCCAQ intends to play an active role.
Setting up an advisory committee: a shout-out to RCCAQ members!
With a view to bringing a group of brokers representing all member firms around the same table, the RCCAQ has mapped out the process it will follow once the new consultation is launched.
Setting up an advisory committee to give RCCAQ members a chance to share their ideas, concerns and comments about the new regulatory framework is the first step in that process. If you would like to get involved, please email us (tletertre@rccaq.com).
In your email, please provide the following information:
- First/last name
- Name of your firm
- Specify whether you are 35 years old or younger
The deadline for applications is October 11 (the number of places is limited). Once all of the applications have been received, we will ensure that our entire membership is represented by setting up an effective working group slated to meet later this month. The goal is to share the opinions of brokers representing firms of different sizes, regions and business models, and to identify their main concerns with respect to the new proposed regulations.
Based on the outcome of the committee's discussions, the RCCAQ will reflect on these issues further. We will then put together an official position and submit it to the AMF.
Revising the legal framework was the first crucial step in in the process of updating the rules that govern our industry. But our involvement in the regulatory process will be just as crucial! Therefore, we are counting on your participation and your interest. Please come and share your perspectives as we craft a regulatory framework designed to foster the development of our firms.
