Managing Conflicts of Interest

Questionnnaire for Insurance Companies

The CCIR is now pleased to assist in the implementation of the following fact-finding reviews for insurance companies:

• Questionnaire on Insurer Practices for Managing Conflicts of Interest :

  • Letter to Life Insurance Companies
  • Letter to General (P&C) Insurance Companies

Registered Insurance Brokers of Ontario Member Questionnaire

CCIR is now pleased to assist in the implementation of RIBO’s fact finding review :

• Questionnaire on Best Practices in Managing Conflicts of Interest
  • Registered Insurance Brokers of Ontario ("RIBO")

In the spring of 2007, the CCIR Industry Practices Review Committee (IPRC) proposed a review of the implementation of the three principles on Managing Conflict of Interest in the marketplace by surveying insurance agents.  CCIR has endorsed this proposal and together with its member agencies, has developed a process for the review, to begin in Summer 2007.

The CCIR is now pleased to assist in the implementation of the following provincial regulator's fact-finding reviews:

• Questionnaire on Best Practices in Managing Conflicts of Interest
  • Financial Services Commission of Ontario
    • Letter to Selected Agents Licensed in Ontario

Canadian Council of Insurance Regulators (CCIR) after public consultations, agreed on three principles as best practices in managing actual or potential conflicts of interest. The principles promote consumer confidence in the insurance industry by outlining best practices for managing these situations when they arise. We hope you will put them to good use.

The principles are:

• Client’s interests come first: Agents must put the interests of policyholders and purchasers ahead of their own;
• Make clear any conflicts or potential conflicts of interest: Consumers must receive disclosure of any actual or potential conflict of interest that is associated with a transaction or recommendation; and
• Ensure products are the right fit: Products recommended must meet the needs of the consumer.

Several industry associations have prepared tools to help you apply these principles. The following are links to some of those tools:

• Industry Association

• Letter to Stakeholders

On February 13, 2006, CCIR and CISRO released Managing Conflicts of Interest: A Consultation Paper on Enhancing and Harmonizing Best Practices. The consultation paper requested comments on three principle-based recommendations designed to promote consumer confidence in the insurance industry and the best means to implement the principles.

After considering the responses received, CCIR and CISRO recently endorsed the principles outlined in the consultation paper. As for next steps, CCIR and CISRO intend to focus on the consistent application of these principles across the insurance industry. CCIR and CISRO agreed to extend the mandate of the Industry Practices Review Committee (IPRC)  to monitor the implementation of these principles in the marketplace.

The IPRC has released a letter on the current status of the work of the IPRC. You may view the letter by clicking on the link provided above.

• Stakeholder Submissions

The consultation period for Managing Conflicts of Interest: A consultation Paper on Enhancing and Harmonizing Best Practices ended on March 24, 2006. The CCIR Secretariat has received 43 responses and would like to thank all respondents. The responses are currently being reviewed by the CCIR/CISRO Industry Practices Review Committee (IPRC).

You may view the responses received by clicking the link provided above.

• Letter (13 February, 2006)
• Discussion Paper

On February 13, 2006, the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) released Managing Conflicts of Interest: A consultation Paper on Enhancing and Harmonizing Best Practices. The consultation paper seeks comments on recommendations designed to promote consumer confidence in the insurance industry.

This consultation paper is the third paper released by the Industry Practices Review Committee (IPRC) on the subject of managing actual or potential conflicts of interest in the insurance industry. In June 2005, the IPRC released a consultation paper entitled Relationships Between Insurers and Sales Intermediaries to outline the findings of two market conduct questionnaires and to ask stakeholders for comments on possible policy options. In November 2005, the IPRC released a second paper entitled the Summary of Responses: Achieving Best Practices to summarize the responses to the June 2005 paper. The recommendations described in the current paper have been developed from these earlier papers and should be read in conjunction with them.