FSRA Requires Insurers to Monitor Agent Conduct
The Financial Services Regulatory Authority of Ontario (FSRA) is reminding Life & Health (L&H) insurance companies about their role in ensuring agents meet high business conduct standards. This includes agents from managing general agencies that insurers contract with to distribute their products. Insurers must take appropriate action if an agent does not meet FSRA’s conduct and suitability requirements.
Recently, FSRA learned that certain agents altered clients’ work and study visas during the life insurance application process. The insurer’s underwriting process detected the changes and the agents were terminated. FSRA does not tolerate any activities that are illegal or intended to harm consumers and the industry. FSRA is reviewing the matter and will take action to enforce the applicable laws and regulations. The type of enforcement FSRA pursues depends on the information and unique circumstances of each case. It may include revoking or suspending a licence or administrative monetary penalties.
FSRA requires insurance companies to ensure that agents comply with the Insurance Act, regulations, and agent licence requirements. Insurers must also complete due diligence when delegating functions to managing general agencies, such as agent screening and oversight.
Fraud and misconduct costs everyone. To protect consumers and maintain public confidence in the Insurance sector, FSRA requires insurers to do their part.
- FSRA has created a Technical Advisory Committee to seek expert advice on trends and issues related to managing general agencies.
- FSRA is assessing insurer policies, processes and practices in two key areas of the sector to ensure customers are treated fairly and set clear conduct expectations of the industry.
- FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.