Online sales

o Insurance products are complex. Dramatic consequences may arise due to inadequate coverage, leading to high risks when protecting consumers' financial assets.
o It is essential that a certified representative be involved in each and every online transaction.

Distribution without certified représentatives

o Auto dealerships charge higher premiums.
o Insurance products end up being sold by non-certified representatives.
o Auto dealerships charge higher commissions but do not always disclose them.
o There is no insurance termination clause in a standard auto sales contract. The RCCAQ is of the opinion that such a clause should be added.

Condominium insurance

o The RCCAQ supported the Insurance Bureau of Canada (IBC) during the consultation in August 2017.
o The RCCAQ called for brokers to be given the flexibility they need so they can properly advise clients and offer them tailor-made coverage if necessary.

Bill 150

     Number of insurers

While retaining the government's goal of clarifying brokers' role in dealings with consumers, the RCCAQ proposes that each firm be required instead to have contracts in place with at least two different insurance companies at all times (personal as well as commercial insurance lines).

     Brokerage firm shareholders

In the RCCAQ's view, the new proposed provisions should be withdrawn to ensure that the legislation and regulations currently in effect are adhered to. Under the current system, a financial institution's interest in a brokerage firm cannot exceed 20% of the voting shares and 50% of the participating non-voting shares.

Bank Act

The review of the federal Bank Act is slated for 2019. The law currently imposes strict limitations on sales of insurance products by banks, i.e. in the same place where loans are granted. In this regard, the RCCAQ will be supporting IBAC, which is calling for these limitations to be maintained.

Contingent commissions

In this regard, the RCCAQ submitted a position paper entitled Fair retribution for brokers serving consumers. Here is a summary of the main points.

Putting brokers back in control

Profit-sharing programs should once again be programs that recognize accurate risk selection; they should not provide incentives to boost business with a given insurer.

Maintaining profit-sharing programs without the incentive component

The RCCAQ believes that it is important that profit-sharing programs be maintained. However, the criteria relating to volume growth and maintaining the number of policies or premium volume should be eliminated.