January 5, 2018 07:00
Lyne Duhaime | Photo : Denis Méthot
This makes twenty years that the canadian Association of insurance companies of persons (CLHIA) look closely at the management of the risk of conflicts of interest. His conclusion : the total absence of conflict is impossible.
At the Congress of the insurance and investment 2017, Lyne Duhaime, president ofCLHIA Quebec, stressed that it should not be banned in block a sales incentive. Instead, it is necessary to eliminate the inherent danger of a conflict of interest.
«Our two guiding principles : the primacy of the interests of the client and a regulation proportional to risk. For example, sales contests really are a strong appearance of a conflict of interest. We have suggested better frame. The advisors are fully aware of it, since these contests are going to be decreasing. It is also important for clients, advisors and regulators to sit together and unite their efforts in this direction. «
The example of Pierre Lortie, Ms. Duhaime believes that this issue of incentives of sale is a fundamental issue given the importance of saving for retirement. «We must ensure that we allow people to maximize the potential of their savings. For this, the consumer needs the advice of a professional. This is a complex area. We consider that councillors are concerned about the interests of their clients. It is also necessary to protect the competitiveness within the industry. «
During her speech, she recalled that the 2008 financial crisis has raised questions not only in North America, but also within the european Union. «Everywhere, the same themes recur : the conflicts of interest, fair treatment of the client, the commissions as part of… But we arrive at different conclusions. We can be inspired by what is done elsewhere, but our solutions must stick to our particular reality. «
Thus, in Québec, the insurance of persons is not mandatory. «It is also a difficult product to sell because it is to guard against the consequences of illness or death, subjects that nobody likes to address. Finally, we are talking about an investment in a product that pays in the very long term and we hope-we all, as late as possible in the case of life insurance, and never related to the disability. All this requires advisors to be proactive and maintain an ongoing relationship and personally with their client, » says Ms. Duhaime.