July 6, 2018 11:30
Photo : Freepik
The framework for selling insurance through the Internet will officially come into force on 13 June 2019. In the meantime, thefinancial markets Authority will have to establish the regulatory framework for Quebec to purchase their insurance coverage online.
These dates are listed in the article 741 of bill 141. Paragraph 4 of this article provides that the provisions of the Act respecting the distribution of financial products and services (distribution ACT) which will apply to firms that will offer insurance products without the intervention of a natural person, including through the Internet, will enter into force on June 13, 2019, or at the same time that the new Law on insurers.
The provisions regarding brokerage, including possessing distribution agreements with three different insurers, will come into force in December 2019.
Consultation in the autumn
The financial markets Authority has confirmed to the Journal of insurance, a consultation will be held. The terms surrounding it will be announced during the autumn, provides for the regulator.
Indeed, in a speech on 22 may in Quebec city, Louis Morisset, president and CEO of the financial markets Authority, announced that this consultation would be ongoing. He was speaking to an audience composed of industry leaders and members of the Faculty of administrative sciences of theLaval University.
He then said that the consumers have to be protected as well in trading on the Internet as they are when they deal with a representative in flesh and bone «. In addition, he said that the consumer will never be «forced» to obtain insurance through the Internet. It will be just a new option, which will add to its choice, has specified M. Morisset.
«I also reiterate that in the entire process of sales through the Internet, only a certified representative may accompany the consumer in his buying process, if the need arose. Therefore, it is simply false to claim, as some still do, that anyone will now be able to advise the consumer in québec, within the framework of the sale of an insurance product. «