The Agencies Regulation Committee (ARC) of the CCIR recently issued an issues paper. This first paper deals specifically with MGA and Associated General Agency (AGA) distribution models in life insurance, and, in particular, individual life insurance. Its purpose is to stimulate debate about the issues, to launch a process of consultation, and to educate and to build a common understanding of the topic and issues for both regulators and stakeholders.
Over the past two decades, the distribution of life insurance has changed dramatically including a
significant shift away from the traditional career agency model to MGA and AGA distribution models. Canadian insurance regulators, being concerned that current licensing and regulatory regimes were not developed with the type of delivery mechanism these entities represent in mind, set up ARC, with participation from members of the Canadian Insurance Services Regulatory Organization (CISRO), to identify and address risks to consumers and legislative and regulatory issues that may be arising from the activities of these entities.
CCIR encourages all interested parties to review and comment on the paper which can be fund here http://www.ccir-ccrra.org/en/init/Agencies_Reg/CCIR_ARC_Life_MGA_Issues_Paper_Feb_2011.pdf.
We ask for comments to be submitted by March 31, 2011.
Electronic submissions would be preferred. Please note that CCIR intends to publicly release all
submissions received pursuant to this consultation process by posting them on the CCIR web site.
All submissions should be forwarded to the CCIR Secretariat e-mail: [email protected]
The Canadian Council of Insurance Regulators (CCIR) is an inter-jurisdictional association of insurance regulators. The mandate of the CCIR is to facilitate and promote an efficient and effective insurance regulatory system in Canada to serve the public interest. We work together to develop solutions to common regulatory issues. More at http://www.ccir-ccrra.org