Regulators release final paper on electronic commerce

The Canadian Council of Insurance Regulators has released its final position paper on the use of electronic commerce in insurance products, stressing the need for consumers to have access to more information on their coverage.

The CCIR began its look at electronic commerce in the industry in January 2012. Last May, the group released its first position paper and requested feedback from industry and consumer stakeholders.

The final report, released Nov. 15, does highlight a divide between brokers and insurers, in terms of how consumers should receive information online.

“Generally, brokers and intermediaries are of the view that a licensed agent should be involved in each insurance transaction,” the report says.

While insurers support consumer choice and the option of using an intermediary, they also “generally believe that the Internet allows for the same level of advice as other methods of interaction,” the paper suggests.

The CCIR committee that produced the paper suggests that “the level of advice provided could be tailored to the nature of the product offered,” adding that consumers need access to clear, straightforward advice at all times.

Consumers must also be made aware that they are dealing with a regulated entity, the paper notes. It is critical to have information such as the legal name of the provider, its regulator registration number and type, and contact information available on a provider’s website, the report suggests.

The position paper also notes the importance of insurance providers having strong technology infrastructure (to avoid information not being transmitted or transactions not completed), as well as secure systems to protect consumer information.