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2018

Life Insurance Agents Compliance Report: 2017/18 Examination Results

 

2017

 
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Prior to 2017

 
As a regulator, it is important for FSCO to understand what is occurring in the marketplace and to take a more proactive approach to market conduct regulation, rather than waiting for problems to arise. In the second half of 2013, FSCO completed a product suitability review to understand the processes and practices that life insurance agents use, at the point of sale, to determine suitable life insurance options for clients.  The review also considered the actions that life insurance agents take to support the financial literacy of their clients.
 
FSCO consulted with industry insurer and intermediary stakeholders in order to obtain a benchmark and a clearer understanding of the best practices for determining product suitability during a typical individual life sales process with a potential client. A random sample of 1,348 Ontario licensed life insurance agents were selected to complete a mandatory online questionnaire. In order to validate the questionnaire responses, FSCO met with fifty life insurance agents who had completed the questionnaire to discuss and verify their responses. FSCO also held face-to-face individual discussions with a small sample of agents about their approaches and best practices.
 
The Life Insurance Product Suitability Report[PDF Document]Size: ## kb ffprovides a summary of the findings of the review. 
 
In 2015/16, FSCO undertook 214 on-site examinations of life insurance agents. The findings from those examinations were compared to the results of the Life Insurance Product Suitability Review to verify practices and whether there were any improvements.
 
The Life Insurance Agents 2015/16 Compliance Report ([HTML Document] Size: ## kbHTML  | [PDF Document] Size: ## kb PDF Size: ## kbprovides a summary of findings and comparison to the results of the Life Insurance Product Suitability Review.

 

In 2004, FSCO adopted a risk-based approach for the regulation of the SABS. This approach examines Ontario automobile insurance companies’ SABS processing mechanisms as well as fundamental elements found in corporate governance practices.  In consultation with stakeholders, FSCO developed and conducted a risk-based market conduct assessment questionnaire focusing on the SABS.