FSRA shares new data on life and health MGAs in Ontario
The Financial Services Regulatory Authority of Ontario (FSRA) is sharing the results from the first phase of its life and health managing general agent (MGA) intelligence questionnaire.
The questionnaire was sent to eight life and health insurers representing approximately 65% of the market to better understand insurer-MGA relationships, product distribution, compliance, oversight practices, and controls over delegated activities.
Key findings:
- FSRA found no correlation between the size of an insurer and the number of MGAs used. A small insurer may use multiple MGAs, and a large one may use a few.
- All insurers delegated, in some form, recruiting, screening, training, and monitoring of agents to MGAs. However, oversight practices varied, with less than 75% conducting formal reviews of their MGAs and agents.
- Term life and whole life were the most widely offered products and were standardized across each insurer’s MGA distribution network.
FSRA will launch the next phase of the questionnaire this fiscal year, and insights will continue to inform FSRA’s licensing, policymaking, supervision, and work with the Ministry of Finance on Ontario's proposed licensing framework for MGAs.
Learn more
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.