The Financial Services Regulatory Authority of Ontario (FSRA) made an announcement May 31, that ivari, owned now by Sagicor Financial Company Ltd., will be subject to conditions on its insurance license in the province going forward. Among the conditions, the company must retain an independent monitor to evaluate its agent compliance systems. 

“FSRA is committed to protecting consumers and ensuring public confidence in the insurance sector,” says Huston Loke, executive vice president of market conduct with the regulator. “Insurers must have a system of compliance to reasonably ensure that all agents selling their products comply with the law regardless of the structure of their distribution system.” 

Following a multi-jurisdictional review of managing general agencies (MGAs) using multi-level marketing tactics conducted in 2022, ivari was specifically named at the time as an insurer the regulator planned to investigate. The most recent announcement does not specify what issues the regulator wants the insurer to address but does point out that ivari uses MGAs to distribute its products. These MGAs, in turn, recruit and supervise agents.

“These licensing conditions will require, among other things, that ivari retain an independent monitor to review its compliance system to validate that it has a system in place that is reasonably designed to ensure that its agents who distribute products are in compliance with regulatory requirements and FSRA’s rules,” the regulator states in its most recent announcement. “Materials and selling practices of MGAs will be part of the review.”