Michael Williams, chair of the Canadian Association of Independent Life Brokerage Agencies (CAILBA) hopes the industry will not roll back the relief measures it offered during the COVID-19 crisis.
The most popular measures include increasing the amount of insurance that can be purchased with no medical exam, and extending the grace period for premium payment deferrals.
CAILBA says it is working closely with the advisor associations Advocis and the Independent Financial Brokers of Canada (IFB) in Ontario to convey the concerns of MGAs and associations to the Canada Life and Health Insurance Association (CLHIA).
“The regulators call us the G4!” says Williams, who is also CEO of MGA BridgeForce Financial Group.
Insurers are increasing the maximum life insurance amounts that can be purchased without proof of health, because paramedical services cannot go to customers’ homes to collect body fluids, CAILBA notes. “When these restrictions are lifted, we don’t want the companies rolling back these non-evidence maximums (NEMs). Manulife has raised their NEMs up to $2M without fluids for applicants between 18 and 50 years,” Williams explains.
CAILBA and its partners are also waiting for an answer from the CLHIA about the extension of the grace period for premium relief programs. “Some companies are offering 60-day deferrals and others are offering 90 days…The concern we have is, what happens on day 61 or 91 and the client still can’t afford to pay the premium?” he continues.
Groups are also wondering how insurers plan to recover these premiums when clients return to work. To date, iA Financial Group, Canada Life and ivari have replied, Michael Williams says. Customers can choose to pay the premiums in one lump sum or extend the reimbursement over a 12-month period.
He sees this offer as sign that companies are listening.
