The Canadian Life and Health Insurance Association (CLHIA) has postponed the implementation of its new Guideline G19, Compensation Disclosure in Group Benefits and Group Retirement Services, by six months for new contracts to Jan. 1, 2019.
The delay follows feedback from the advisor community, CHLIA says in a news release issued Monday.
The goal of the new guideline is to be more customer focused and transparent in compensation disclosure by establishing industry standards in this area.
All insurers will be required to disclose to group contract holders (i.e., employers and other organizations offering group benefits and retirement services) all direct, indirect and in-kind forms of compensation paid or provided by insurers to intermediaries.
“Advisors are valuable partners in delivering group benefits and retirement services to Canadians and their views on the new proposed standards and how to implement them are key. Consultations began earlier this year and we are listening to their views. That is why we took the immediate step of pushing back the implementation date,” says Stephen Frank, CLHIA president and CEO, in a statement.
CLHIA is currently on a cross-country tour, meeting with advisors to explain the new guideline and gather their views and recommendations on how best to implement it. Advisors who cannot make it to one of these locations will also have the opportunity to participate in a webinar, in the official language of their choice, scheduled for Feb. 22.
CLHIA is also creating an advisory committee of advisors and insurers to provide their guidance. “We need the help of advisors to ensure successful implementation and we are committed to partnering with them on the new standards,” adds Frank.