FSRA takes action to protect consumers of Life and Health Insurance
Through market conduct supervision and enforcement activities, The Financial Services Regulatory Authority of Ontario (FSRA) is working to ensure life and health insurance agents are compliant with legislation, regulations, and that they are working to achieve fair outcomes for customers.
In 2021-22, FSRA reviewed 115 higher-risk life agents and the results are included in the first Life and Health Insurance Agent Supervision Report which is being released today. Annual reporting of life agent supervision contributes to public confidence through promoting transparency, disclosure of information, and deterring deceptive or fraudulent conduct, practices, and activities.
“Insurance provides critical protection for individuals, families, and businesses and these customers deserve insurance that meets their needs,” said Huston Loke, Executive Vice President, Market Conduct. “Through our supervision and enforcement efforts we want to ensure consumers are fully protected and that insurance professionals can review and improve their market conduct.”
The outcomes of these examinations suggest that the life agents reviewed need to improve their overall business practices, and that insurers need to review their life agent compliance oversight programs to better monitor and report unsuitable agents.
Of the 115 agent examinations, FSRA took the following top three actions:
- escalated 35 percent of cases for further investigation
- issued a business practice letter in 23 percent of cases
- closed 21 percent of cases with no concerns
The report also includes outcomes from 61 agent suitability complaints received through Life Agent Reporting Forms (LARFs) in 2021-22. FSRA closed 57 percent of these LARF cases and escalated 43 percent of cases for further review.
- 2021-2022 Life and Health Insurance Agent Supervision Report
- To better protect consumers, FSRA is making it easier to report life agents who may be unsuitable
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.