Protecting life and health insurance consumers
A new report by Ontario’s financial services regulator, FSRA, suggests that the life and health insurance industry has more work to do to protect consumers.
Between 2022-2024, FSRA reviewed 319 agents through its Life Agent Misconduct Report and proactive supervision programs.
FSRA identified certain agent behaviours that are not in the best interest of consumers:
- providing false or misleading information to insurers and consumers
- engaging in coercion
- fronting for unlicensed individuals
- not providing written disclosure of conflict of interest
- not adhering to best business practices
FSRA took the following top three actions:
- issued a business practice letter in 57 cases
- escalated for further investigation in 55 cases
- closed with no concerns in 15 cases
Insurers are responsible for the conduct of their agents, including agents contracted with their distribution partners, and FSRA expects everyone in the sector to put customers’ interests first.
Going forward, FSRA will prioritize working with the industry to improve the quality of Life Agent Misconduct Reports received and share trends. This will enable FSRA to focus its supervision efforts on the areas of highest risk to consumers.
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.