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Strengthening protection for life and health insurance consumers in Ontario

FSRA seeks public feedback on proposed rule for life and health managing general agents (L&H MGAs)

Ontario’s financial services regulator (FSRA) is proposing a new rule to better protect consumers and strengthen oversight of life and health insurance managing general agents (L&H MGAs).

It will also help ensure consumers are treated fairly and consistently and they are receiving advice from well-trained and properly supervised agents. 

The proposed rule builds on recent amendments to the Insurance Act creating a separate licensing class for L&H MGAs in Ontario. It establishes clear licensing, compliance and agent oversight requirements for businesses performing certain regulated L&H MGA activities related to the sale of life and health insurance. The proposed rule also enhances accountability for L&H MGAs and insurers by clarifying roles and responsibilities in agent supervision and introduces requirements for agents who work with L&H MGAs.

The proposed rule is part of FSRA’s six-point action plan to correct troubling practices in the life and health insurance sector which are harming consumers. 

FSRA encourages stakeholders to submit feedback on the proposed rule, open for consultation until March 31, 2025.

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.

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