14 June 2018 13:30
Photo : Freepik
Although they welcome the amendments to bill 141, the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ), the quebec section of thecanadian Association of insurance companies of persons (CPOMA-Québec), theAssociation of professional advisers in financial services (APCSF) and the Coalition of associations of consumers have expressed the Log of the insurance concerns facing the management of the sale of financial products via the Internet.
Bill 141, an Act aimed principally at improving the supervision of the financial sector, the protection of the money deposits and the plan of operation of financial institutions, was adopted on 13 June, two days of the end of the parliamentary session. The minister of Finance Carlos Leitão has conducted nearly 400 amendments.
Gaps still present
If the Coalition welcomes the withdrawal of the establishment of an insurance scheme for funeral expenses and the abolition of the two Chambers, it is believed, however, that gaps remain. «There are still a lot of things which one has not thought for the protection of the consumer,» said Jacques St-Amant, analyst at the Coalition. He mentions, among others, the sale of insurance via the Internet.
«Legally, the insured must disclose at the time of the submission of a police. Traditionally, there is an adviser who will help you not to forget anything. With online distribution, the insured’s obligation remains, but the assistance it provided disappears, » adds the analyst.
The RCCAQ is of the same opinion. «It is necessary to offer clear guidelines. There is still work to be done on the regulatory front. We are for the modernization of regulatory frameworks, but not at the expense of the protection of the consumer. Now that the bill is passed, all the work is going to continue on this section-there, » said the president of the RCCAQ, Christopher Johnson.
Lyne Duhaime, president of CLHIA Quebec, says he is satisfied with the draft law», which puts the consumer at the centre of the equation, particularly with the expansion of the compensation fund, the regulation of Internet sales and the requirement that only a certified representative may provide the insurance.»
It adds, however, that there are a few adjustments regulatory to do so. Ms. Duhaime provides, among other details will have to be made to certain provisions on the sale of insurance via the Internet. «The regulations will probably add and adjust some parts of the law. It is very rare that a bill of this magnitude does not go through some adjustments. The law is never perfect «, said Ms. Duhaime.
CLHIA Quebec is preparing to bring the hand to the dough. «We will continue to work to ensure that the framework gives good results for consumers, advisors, and insurers, she insisted. For that the industry operates well, all shall find their account. «
For the Coalition, the sale of insurance online has still some grey areas. «There is a lack of distinction. Purchase travel insurance for a weekend in New York this is not the same thing as buying a life insurance policy for $ 500,000. There is a lack of supervision. It has framed the insurer but not the consumer, » says Mr. St-Amant.
«We do not agreement for the sale of property and casualty insurance products via the Internet. We continue to say that it is absolutely necessary to the participation of a certified advisor, » adds Mr. Johnson.
President of the APCSF, Flavio Vani added : «We want not only to be a certified representative who sells an insurance product, but that it is also a certified representative who gives advice. Because the sale is made well before the conclusion of the transaction by a signature. It is at the moment where he receives advice that the consumer takes his decision. «
Same rules for all
The board without a licence ails the APCSF because it creates a double standard in the distribution of insurance products. «The law does not grant us the exclusive advisor and does not specify who can talk about the products,» says the president of the APCSF, whose intention is to engage with consumer groups » to bring more clarity in the distribution «.
«I’m concerned about the marketing and promotion that will be made on the Web sites for the sale of insurance, even if you can’t buy that with a certified representative. When I offer advice, I committed to my responsibility. We want that the things are clear, and that the distribution rules are the same for all «, insists Mr. Vani.
Not an electoral issue
The RCCAQ does not believe that the adoption of bill 141 will have an impact on the next provincial election in October. Rather, it is the regulations that are going to play.
The Coalition expressed respect to have clear expectations and plans to engage the various political formations in the coming months with respect to the gaps that she perceives.