IBAC commends government for new regulations extending consumer protection to Web sites

The Insurance Brokers Association of Canada (IBAC) says the federal government’s draft Bank Act regulations, which prohibit banks from promoting unauthorized insurance services on their Web sites, provide consumers “with clear protection from coercion by banks when it comes to insurance.”
IBAC represents more than 33,000 property and casualty insurance brokers across Canada.
“This is a great move for the insurance consumer in Canada,” said IBAC CEO Dan Danyluk in a press release. “The government is to be commended for standing up for consumer choice and clarity in the insurance decision making process. These regulations extend online the consumer protection consumers have off-line.”
In a press release, IBAC reiterated its longstanding position that consumers are most vulnerable at the point where they apply for credit, and at that point they should not be asked about any insurance products.
“These rules would transpose the consumer protection regime that applies in physical branches to bank’s Web sites,” IBAC says. “The government asked banks to voluntarily adopt this practice 16 months ago. Most chartered banks have not complied, and these regulations mandate them and will provide the federal regulator with authority to adjudicate on their compliance.”