January 17, 2018 13:30
Photo : Freepik
L’Association canadienne des compagnies d’assurances de personnes (CLHIA) will force its guideline G19 on the disclosure of remuneration paid to intermediaries for services insurance and group retirement plans on July 1, 2018 for new business and January 1, 2020 for the renewal period.
This guidance happens when a movement skill to a more fair treatment of customers is being felt in the industry.
A separate statement
Pursuant to G19, the insurers will disclose to plan sponsors in a separate statement any form of remuneration, whether direct, indirect or in-kind that they have paid or provided to intermediaries.
This is a directive from the CLHIA to its members will apply to their business insurance and group plans, regardless of the form of distribution or compensation being recommended. This disclosure should be made at least annually. For new contracts, it will have to be done at the time of the transaction or before.
The guideline reflects the fact that the tenants have greater expectations regarding transparency and disclosure of fees, commissions, explained the CPOMA, and invited the councillors to a series of information sessions on G19 across Canada, from 31 January to 14 February.
«The guideline will strengthen the industry practices regarding the disclosure of remuneration, and will contribute to a system of distribution based on the client «, explained the CLHIA on its Web site.
Not have the force of law
The CLHIA has said also respond to the fact that the regulators expect more and more insurers to identify and address the risks of conflict of interest and fair treatment of customers, rather than wait for the rules shows the way.