Ontario insurance regulators are assessing whether clients are adequately informed by the insurance and mortgage brokerers.
The Financial Services Commission of Ontario (FSCO) has published its draft statement of priorities for the year ahead, which indicates that it “is conducting product suitability reviews to gather information on how insurance and mortgage brokering intermediaries make product recommendations and how intermediaries assess the financial literacy of their clients.”
The reviews, which are being carried out in parallel with the Canadian Council of Insurance Regulators (CCIR) and the Mortgage Broker Regulators Council of Canada, “aim to determine whether consumers have access to appropriate information to make informed decisions when purchasing life insurance and entering into mortgage contracts,” it says.
Additionally, FSCO says that it plans to make recommendations to the government about modernizing the disciplinary process for insurance agents and adjusters under the Insurance Act. “FSCO will consult on proposals to create a model that aligns with the modern disciplinary, licensing, and enforcement processes and standards used in the other sectors FSCO regulates,” it says.
It also pledges to support an initiative to develop a harmonized life licence qualification national standard, and indicates that it will co-chair a project to create a national database of disciplinary actions by insurance regulators across Canada, under the CCIR.
The draft also sets out priorities for the Financial Services Tribunal (FST), FSCO’s adjudicative body. It notes that it is working with the government to appoint additional members to the tribunal in view of its growing caseload. It’s also reviewing and updating its practices and procedures relating to transparency, public accountability, and the protection of personal information and privacy; developing service standards and a performance management framework; and, implementing its new risk mitigation management plan.
The draft is out for comment untl June 2.