January 11, 2013 – LOGiQ3 Corp., provider of life insurance and reinsurance outsourcing and consulting services, is currently working with key Canadian life insurance industry stakeholders to investigate an industry Advisor Screening, Contracting, and Monitoring Model.
The Canadian life insurance industry is a well regulated industry which tends to be described as principals-based. The industry works constructively with regulators and develops its own standards and practices that support the outcomes set out by the regulators. Independent advisors, distributors and carriers agree that this approach has served the industry and its consumers very well over the years. They also agree with the Canadian Council of Insurance Regulators’ Agencies’ Regulation Committee (ARC) that as distribution has changed from a career sales force driven model to one that is now predominately occupied by independent advisors using managing general agencies (MGAs) to access various carriers, that working together as an industry with our regulators and being progressive in adapting to change is valuable to all stakeholders.
Having seen the industry and regulators all agree that there is room for change and improvement, LOGiQ3 has been investigating a potential independent life advisor screening, contracting and compliance monitoring model. The model would provide independent advisors, MGAs and carriers with an industry standard service model that could provide more effective and efficient processes and at the same time address some of the recommendations from the recently released ARC position paper. A good number of MGAs, representing a significant share of the Canadian distribution market are key stakeholders who have been involved in helping LOGiQ3 investigate the feasibility and viability of this model along with a significant number of carriers. In addition to this, LOGiQ3 is providing briefings to and seeking input from the life insurance industry and advisor associations.
Industry standard approach
The model being investigated would allow an industry standard approach, identifying which parties are responsible for which functions and provide a verifiable and auditable process, addressing industry needs and some of the recent ARC paper recommendations. This investigative model would also provide economic benefit for all stakeholders today and into the future as the model matures. For carriers and distributors, the elimination of current duplication of processes should result in overall savings and deliver superior risk management results. While for advisors, the standardized approach will result in reduced disruption to their business, better service standards and a locked down, private and secure web page for them to keep all their professional practice information in one place and a place to receive and store valuable best practice information and education.
“LOGiQ3 is pleased to have key members of the industry involved in this investigation” says Chris Murumets, CEO of LOGiQ3. “Involving the key industry players in building out solutions to improve processes is the approach we like to take with every opportunity we explore, and having all the parties at the table for this initiative will be what makes it more likely to be successful,” he adds.
Doug Paul, the Managing Consultant at LOGiQ3 that initiated and leads this project comments, “The investigation has been underway for a number of months now. We started with a number of prominent MGAs and have expanded the investigation and briefings to include most of the major carriers, industry and advisor associations, some regulators, and some suppliers to the industry. I really appreciate the involvement from key industry groups and associations as their collective feedback are critical in getting this project to the next phase, and in a manner that creates a beneficial solution for all stakeholders.”
LOGiQ3 anticipates the first gate of the investigation to be completed in the first quarter of 2013, and at that time the key parties will collectively decide with all stakeholders involved if the model is viable, meets the needs of the various stakeholders and will be implemented, or, if it needs more investigation, or, if the model needs to be completely revamped and reinitiated.
For more information on this initiative, visit Insurance Distribution at the LOGiQ3 website.
LOGiQ3 is the expert provider of life insurance and reinsurance consulting and outsourced services. LOGiQ3 delivers long-term strategic solutions and short-term tactical support across Underwriting, Reinsurance Administration, Claims and Audit. LOGiQ3 supports clients across the life insurance service chain from agent to retrocessionaire from its offices in Toronto, Canada, and Cardiff, UK. www.LOGiQ3.com.
Source: LOGiQ3 – This blog post has been republished with permission. The original can be seen here.