The number and amount of achieved sanctions in the life insurance sector make it the second-most active sector overseen by the Financial Services Regulatory Authority of Ontario, based on the regulator’s first-ever enforcement annual report, released on Monday.
Across the sectors it oversees, FSRA imposed 80 unique sanctions in fiscal 2024–25, the report said — up from 54 the previous year. Of the 80 sanctions, most were in the mortgage sector (43).
However, over one-third (27) were in the life insurance sector — up from 15 the year before and 21 two years ago. The 27 sanctions included the revocation or refusal of 13 licences, the report said.
Across sectors, the regulator imposed $1.2 million in administrative monetary penalties, compared to $1.6 million the previous year (when penalties in the auto insurance sector were up) and more than $580,000 two years ago, according to the report.
The mortgage sector accounted for most of the 2024–25 penalties (more than $860,000), in part because of higher maximums under the mortgage brokers and lenders act, the report said.
About 20% of the total 2024–25 penalties — $232,000 — was attributable to the life insurance sector, up from about 12% of penalties, or $186,000, the previous year. Two years ago, sanctions in the life insurance sector were more than $385,000, or about 66% of penalties, according to the report. The timing coincides with FSRA’s increased focus on life agent reviews.
In addition to changes to the mortgage brokers act, 2024–25 enforcement results were driven by a more “robust” supervisory framework, stronger statutory authorities and rules, and enhanced reporting of unsuitable agents, including through life agent misconduct reports in the insurance sector, the report said.
FSRA launched an online portal in March 2023 to facilitate insurer reporting of potentially unsuitable life agents. The regulator’s latest supervision report related to life and health insurance agents reported a 22% year-over-year increase in misconduct reports filed (2024–25).
As of June 30, 2025, FSRA licensed 71,680 insurance agents.