AMF seeks consultation on regulating sale of insurance online
February 27, 2012 by Canadian Underwriter
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The Autorité des marches financiers (AMF) has launched a consultation paper on the regulation of the sale of insurance products through the Internet.
“Some industry participants see the current framework as restricting online transactions, whereas others view it as more permissive and interpret it liberally,” the AMF said in its paper, Internet Insurance Offerings in Quebec. “Since this framework was not developed at a time when online transactions were common practice, it only seems logical that it be clarified.
“The AMF is of the view that it would be preferable to adapt its regulations to allow the development of online insurance offerings, while ensuring that the public is protected.”
As such, the AMF has identified some risks and areas of vulnerability for consumers who wish to use the Internet in order to obtain information or to purchase insurance online.
One of those vulnerabilities is what the AMF refers to as a knowledge imbalance between the insurer and the consumer. If a provider is offering insurance products on the Internet, consumers should be able to contact a certified representative at any time — whether to counter the imbalance in information, or to analyze the suitability of a product, the AMF said.
“However, the intervention by a certified representative may not be essential at every step of the buying process when it is carried out via the Internet (for example, it is probably not necessary that a representative personally collect information about the consumer),” the report says. “Still, the AMF believes that the representative should be involved when the time comes to give advice to clients and ensure that the products they have chosen suit their needs.”
The AMF proposed that stakeholders should have input in determining the role of certified representatives in online insurance offerings.
The paper can be viewed in its entirety at http://www.lautorite.qc.ca/en/consultations-insurance-pro.html. Stakeholders may submit comments until May 24, 2012.
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