{"id":1244,"date":"2024-01-29T23:40:11","date_gmt":"2024-01-29T23:40:11","guid":{"rendered":"https:\/\/financeify.ca\/?p=1244"},"modified":"2024-01-29T23:40:11","modified_gmt":"2024-01-29T23:40:11","slug":"insurance-regulators-publish-guidelines-on-unfair-inducements","status":"publish","type":"post","link":"https:\/\/financeify.ca\/index.php\/2024\/01\/29\/insurance-regulators-publish-guidelines-on-unfair-inducements\/","title":{"rendered":"Insurance regulators publish guidelines on unfair inducements"},"content":{"rendered":"

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Insurance regulators published new guidance on Wednesday to provide greater transparency around incentives and conflicts of interest.<\/p>\n

Canadian Council of Insurance Regulators (CCIR) and Canadian Insurance Services Regulatory Organizations (CISRO) tips on motivation management<\/a> aims to complement the 2018 Fair Treatment of Customers (FTC) Guidelines.<\/p>\n

Since the FTC’s issuance, industry participants have asked for greater clarity regarding compensation and conflicts of interest, as stated in the CCIR and CISRO release.<\/p>\n

Regulators have concluded that some incentive practices may pose risks to the fair treatment of customers, leading to the issuance of new guidance.<\/p>\n

The guidelines state that insurers and intermediaries must \u201cddevelop policies, procedures and controls that integrate FTC results with, among others:<\/span>incentive arrangements\u201d and identify the risk of unfair consequences for customers. <\/span><\/span><\/p>\n

It also calls on management to \u201ceestablish appropriate consequences or deterrents to actively discourage behavior” that could harm customers.<\/span><\/span><\/span><\/p>\n

The guidelines list elements of incentive contracts that may harm clients. They include:
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