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Internet sales : the case of Archibald ignites political debates

by

Hubert Roy

5 March, 2018 09:45

Carlos J. Leitão | Photo : Denis Méthot

The case of Samuel Archibald was echoed in the Committee on public finance, has learned of the insurance Journal. The minister, Carlos J. Leitão has not hidden his annoyance in the face of how some use this case.

On 22 February, the parliament member Nicole Léger, member of parliament for the riding of Pointe-aux-Trembles for the Parti Québécois, was read in its entirety article published on the website of the Journal of insurance the same day. For the Chambre de la sécurité financière, the case experienced by Samuel Archibald may be a glimpse of what consumers will experience when the project is of act 141 adopted.

An interpretation is «absurd» according to Leitão ; Richard Boivin abounds

The minister of Finance responded to. «It is misinformation pure. Bill 141 does not lessen the protection of consumers, he said. We do otherwise. The spirit and the contents, the consumer protection will be improved. It will be made more strong. Claim that the case mentioned is only a glimpse of what is to come, this is absurd ! «

Mr. Leitão has then invited Richard Boivin, assistant deputy minister of Finance, to respond. The latter is said to be totally in agreement with the minister.

«It is misinformation. This is not the intention of the bill and this is not what we do. The quoted comments mix different elements. Rather than try to create the trust all together, it rather creates confusion. We just undermine the work of insurers, representatives, thefinancial markets Authority and the financial sector as a whole. This is a partial read, in its entirety, » said Mr. Boivin.

Experts are concerned about the phenomenon

Even before the debate around the case of Samuel Archibald to take on such a large scale of experts in digital marketing had identified excesses that might arise in the sale of insurance via the Internet. Two of them had voiced their concerns at the last Convention of the insurance and investment, held in November.

Alex Veilleux, co-owner and chief innovation officer and strategist of products in Vooban, is one of them. Mr. Veilleux has played a central role in the launch of Ajusto, the tool of telematics in auto Desjardins Insurance.

At the Congress of the insurance and the investment, he said : «what I see it is that there is a possibility that a generation is ill-advised and end up with the wrong product. I think, for example, a spread of insurance products term life, then that is the reality of everyone is not the same «.

Simple products

Mr. Veilleux explained that the problem with the insurtechs in life insurance, it is that they offer simple products and it is often the only option which presents itself to the consumers who do shop that way 100 % digital, » says Veilleux. This is perhaps not the right product for them, he argued.

Moreover, according to the most recent figures from the research firm LIMRA, the insurance term life is now the life insurance product the most sold in Canada in terms of absolute units. Previously, whole life and universal life, which offer protection of longer duration, and more tailored to the needs of more developed, were the products most sold.

Not an answer to all the problems

At the same congress, Michel Bergeron, a partner at EY, pointed out that digital technology does not solve all the problems. «An adviser to digital-only will also meet problems,» he said.

For Mr. Bergeron, people want to be served the way they want to. «The businesses may not be in control of the channels with which consumers interact. Rather, it is they who should be «, concluded Mr. Bergeron.

To support his claims, it gives the banks as an example. At the Congress, he said, anticipating that the banks will close ever their branches. They have and will probably be a new format, was also specified. The branches are part of it, » he said.

Desjardins is volteface

At the invitation of the Journal of insurance, Desjardins group has agreed to explain the reasons which led him to agree to indemnify Samuel Archibald. Its subsidiary, Desjardins Insurance had refused to compensate him initially.

«It is in the light of new information that was not on the record prior to its re-evaluation that we have been able to inform Mr. Samuel Archibald that he was eligible for disability benefits provided for in his contract of group insurance,» said Valérie Lamarre, spokesperson for the Mouvement Desjardins, the Journal of insurance.

Of the unfortunate effects

She adds that the Movement is aware that this situation has been «unhappy effects» for Mr. Archibald. The cooperative has said it » sincerely sorry «.

«If our teams had all the information from the initial evaluation of the dossier or, in the context of a request for review, our decision would have been to pay the benefits, has also revealed Ms. Lamarre. Moreover, this process of revision is available, offered and communicated to policyholders who wish to appeal a decision. «

A rigorous exercise

She adds, in the name of Desjardins, that the examination of a record of disability remains a «rigorous exercise» that is based on medical expertise and on the data that the insurer has.

«Desjardins is particularly sensitive to the cause of mental illnesses that are at the origin of a more and more important in the case of disability. It is a societal issue that involves us all : employees, employers, health professionals and insurers. Thus, as in all our spheres of activities, we will continue to see how we can improve, » says Ms. Lamarre.

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