Ontario’s insurance regulator is planning a review of the suitability of life insurance products in the year ahead.
The Financial Services Commission of Ontario (FSCO) published its draft statement of priorities for the year ahead, which includes a pledge to undertake product suitability reviews of life insurance and mortgage broker products. FSCO says that it plans to assess how agents/brokers respond to the financial literacy needs of their clients, and to evaluate the processes used by agents and brokers to provide advice to consumers.
Its other major initiative for the life sector is to participate in efforts to develop a harmonized national life agent licence qualification standard. FSCO says that it will support the efforts of the Canadian Insurance Services Regulatory Organization and Canadian Council of Insurance Regulators to come up with harmonized standards for life insurance licence qualification.
Among a variety of other things, it’s also expecting to work with the Ministry of Finance to review insurance company solvency regulation, to implement proposed changes to the dispute resolution system, and on various initiatives in the pension sector (including the introduction of Pooled Registered Pension Plans (PRPPs)). It also says that it will support the government as it considers establishing an Ontario Pension Plan.
FSCO also says that it will implement an anti-fraud engagement strategy, and engage consumers in financial literacy and fraud prevention; and, it pledges to work with regulators in other parts of the industry to identify emerging trends and risks, look for harmonized approaches, and provide solutions and guidance applicable to multiple jurisdictions.
Comments on its priorities are due by May 30, in anticipation that its final priorities will be submitted to the Minister of Finance in June.