The RCCAQ team attended the Insurance Day event held in Montreal on April 16. The team members also took in the presentation entitled "Online insurance sales and insurance brokers: what should we expect in 2019?" given by Frédéric Pérodeau, Superintendent, Client Services and Distribution Oversight at the AMF.
Since industry processes are undergoing major changes, it was essential for the team to attend this presentation on the AMF's future regulatory approach.
Online insurance sales: regulations will be issued in the next few weeks
In addition to noting that the goal was to issue regulations governing alternative distribution channels (online insurance sales and distribution without certified representatives) in the next few weeks, Mr. Pérodeau reiterated the underlying guiding principles, including the need to ensure "the same level of consumer protection" whichever distribution channel is selected.
Certified representatives' advisory role was also addressed. Although the AMF has stated that "objective data collection" (without providing advice) can now be handled by non-certified individuals, certified representatives will be responsible for the information gathered, based on which they will advise their clients.
The AMF is currently working on a document designed to give representatives information on the benchmarks for this specific point. Prior to publication of this document, you are advised to proceed with caution. Indeed, making a hasty business decision in this regard could have an adverse impact.
Brokerage distribution: regulatory efforts are ongoing
In the second part of his presentation, Mr. Pérodeau took up the issue of brokerage distribution and the regulatory efforts tying in with these provisions of Bill 141.
Since the discussions in this regard are much more recent than those involving online insurance sales, many questions still remain. The AMF is still in the process of putting together an effective regulatory framework, in collaboration with stakeholders, including the RCCAQ.
As regards insurance quotes, the specific provision stipulating that quotes must be obtained from at least three companies offering personal insurance will be retained. In this regard, being affiliated with a banner will be regarded as an appropriate solution meeting the new requirements. The AMF is expected to provide additional clarifications when the regulations are issued (no publication date has been set).
Against that backdrop, the RCCAQ is actively pursuing its collaboration with the AMF with a view to establishing a regulatory framework that will benefit consumers as well as the brokerage sector.
