Although regulation proposed by Quebec regulator, the Autorité des marchés financiers, on the sale of insurance products over the Internet does not specify the products that can be offered on the Web, some industry stakeholders say they are satisfied with this first draft.

In addition, all of them who were contacted by FlashFinance, a sister publication of The Insurance and Investment Journal, said they intend to contribute their comments to the consultation on the draft regulation, entitled Regulation respecting Alternative Distribution Methods. The 60-day comment period will end on Dec. 10, 2018.

The regulation consisting of nearly forty articles focuses mainly on the information and documents that insurers must provide to their customers when concluding an insurance contract.

Among these, insurers and firms will have to show the following information on their digital platforms at all times: the firm’s name and contact information; each sector in which the firm is registered with the AMF, and the manner in which the client can request the intervention of one of the firm’s representatives.

The information presented on the platform about products and services must also be written "in language that is clear, readable, specific and not misleading, so as to highlight the essential elements for informed decision-making and not cause confusion or misunderstanding.”

Welcomed by the industry

In general, those industry stakeholders contacted by FlashFinance reacted positively to the draft regulation.

Pierre Babinsky, Director Communications and Public Affairs at the Insurance Bureau of Canada (IBC), said that the organization will review the proposed regulations and provide comments to the AMF. IBC is in favor of selling over the Internet. "For the IBC, oversight of this activity must enable insurers to innovate, meet the needs of consumers and adapt to technological changes, while ensuring a positive experience for all stakeholders."

The Quebec branch of the Canadian Life and Health Insurance Association (CLHIA-Quebec) says it finds that the advisor retains a "very important" role in the sale of insurance products over the Internet and that the draft regulation goes in this direction.

"Insurers will want the law to be respected and the consumer who needs it to get the best advice possible. Because ultimately, it is in the insurer’s interest that the consumer receive all the advice they need, if they indicate they are interested," says Suzie Pellerin, Director of Governmental Affairs at CLHIA-Quebec.

To learn more, consult the draft regulation.