Toronto, ON (Dec. 31, 2024) – A new report by Ontario’s financial services regulator, FSRA, suggests that the life and health insurance industry has more work to do to protect consumers.
Between 2022-2024, FSRA reviewed 319 agents through its Life Agent Misconduct Report and proactive supervision programs.
“While the 319 agents we reviewed don’t represent the entire sector, some of their behaviours raise consumer protection concerns,” said Huston Loke, Executive Vice President, Market Conduct at FSRA. “We strongly encourage insurers to review their compliance systems and ensure their agents are selling insurance products that meet their clients’ needs.”
FSRA identified certain agent behaviours that are not in the best interest of consumers:
- Providing false or misleading information to insurers and consumers
- Engaging in coercion
- Fronting for unlicensed individuals
- Not providing written disclosure of conflict of interest
- Not adhering to best business practices
FSRA took the following top three actions:
- Issued a business practice letter in 57 cases
- Escalated for further investigation in 55 cases
- Closed with no concerns in 15 cases
Insurers are responsible for the conduct of their agents, including agents contracted with their distribution partners, and FSRA expects everyone in the sector to put customers’ interests first.
Going forward, FSRA will prioritize working with the industry to improve the quality of Life Agent Misconduct Reports received and share trends. This will enable FSRA to focus its supervision efforts on the areas of highest risk to consumers.
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About FSRA
FSRA is an independent regulatory agency created to improve consumer and pension plan beneficiary protections in Ontario.
FSRA was established to replace the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO). The agency is flexible, self-funded and designed to respond rapidly to an evolving commercial and consumer environment. In this capacity, FSRA will:
- Promote high standards of business conduct;
- Foster a sustainable, competitive financial services sector;
- Respond to market changes quickly;
- Promote good administration of insurance and pension plans; and
- Encourage innovation.
Learn more about FSRA and our approach to achieving safety, fairness and choice in non-securities financial services at www.fsrao.ca.
SOURCE: Financial Services Regulatory Authority of Ontario (FSRA)
Tags: Financial Services Regulatory Authority (FSRA), Life Insurance
