April 30, 2018 07:00
Michel Laurin and Maya Raic | Photo : Réjean Meloche
The Chamber of damage insurance would have had the power to enforce the definition of broker, said Michel Laurin, since it is responsible for the application of the ethics of the representatives certified.
She has not done this, » proclaims the president of the board of directors of the Corporation for property and casualty insurers direct du Québec (CADD). In interview to the Newspaper «insurance», it said to see an argument in favour of integrated oversight within theAuthority of the financial markets.
That being said the article 6 of the ACT
In its code of ethics, the Chamber refers to article 6 of the Act respecting the distribution of financial products and services (distribution ACT), which defines what is a broker in damage insurance.
This article reads as follows :
The insurance broker is the person who directly offers to the public a choice of various property and casualty insurance products of several insurers, or who offers a firm, an independent representative or an independent partnership of property and casualty insurance products of one or more insurers. It also acts as an advisor, damage insurance.
«Why the Room did she let him do it, no questions asked ? Ethically, it does not hold the road. In addition to that the Room is responsible for the inspection of firms from 24 certified and less. The Authority will have more «teeth» to enforce this, » said the president of the CADD.
Not an issue for inspection, said the CADD
The Authority does, does it not also turned a blind eye on this issue, then it inspects the firms of 25 certified and more ? No, » said Mr. Laurin. The Authority has not, in the moment, the mandate to enforce the ethics. This mandate is vested in the House, » he said.
«This is not a challenge inspection, he adds, but in respect of the conduct. The Chamber would have been able to see, both for the representatives certified working in small brokerage firms and those who work in the major. She has not done this work. «
The Room disagree
To the Chamber of damage insurance, we don’t see things eye to eye. Its CEO, Maya Raic) reminds us that the self-regulatory organization is, among other things, depending on the complaints it receives to the office of the trustee. As for the non-respect of the application of article 6, the Room has never received any complaints in this respect since its adoption in 1998, she says.
Ms Raic) states that the board also inspects, in prevention mode, the offices of 24 representatives or less. Among the items it checks, it ensures that brokerage firms offer the products of several insurers under section 6 of the ACT and that they disclose their business ties under the Regulation on the information to be provided to the consumer.
«Article 6 of the ACT is drafted in a broad way, hence the introduction of bill 150, which clarifies that article 6 applies to each insurance proposal. Given the current wording of article 6, no decisions were forthcoming «, said the CEO of the Chamber.
In fact, the Chamber has found that a single. It was made in 2015, by the Office of decision and review, which has since become the administrative Tribunal of the financial markets. This decision affected the firm Insurance Accomodex.
Disclosure : 1 cabinet, 3 gaps
Ms Raic adds that the Chamber, during inspections of the firms, ensures that the broker offers different products of several insurers, as is currently provided for in article 6 of the ACT. In addition, the board verifies that the business relationships are disclosed in respect of its obligations, she said.
Thus, by 2017, 33 % of the brokerage firms surveyed by the Chamber had a gap relating to the disclosure of business relationships. Its inspectors observed 13 shortcomings in this respect on the 40 firms inspected. Since then, they have all conformed, without which, the case would have been transferred to the Authority, said Ms Raic).
«We are seeing an improvement in the last few years to this part. An information sheet and a checklist in our tool box are also available to the representatives and firms. The Chamber makes every effort for a representative in damage insurance, apply their code of ethics. The Room does not have the authority to inspect the representatives contrary to the professional bodies which have this power under the Code of professions, » says Ms. Raic).