IBAC welcomes regulations banning promotion of insurance on banking Web sites

The Insurance Brokers Association of Canada is pleased with federal Finance Minister Jim Flaherty’s proposed regulations that would ban banks from promoting insurance on their banking Web sites.
Flaherty proposed the regulations on May 27, 2010.
Steve Masnyk, IBAC’s manager of public affairs, says that the proposed regulations address the issue of banks selling insurance on their Web sites completely.
“This is a win for consumers because it extends the protection that they have in branches to their Web transactions,” he told Canadian Underwriter.
“It’s clarification of the intent that the minister announced in October and we look forward to working with him and his department on developing the wording of these regulations and implementing them,” Masnyk continued.
“It’s a really strong position. It’s really modernizing and updating the rules so that they correspond with today’s marketplace.”
The Canadian Bankers Association, on the otherhand, does not share IBAC’s enthusiasm.
“Our position has always been that consumers benefit when there is choice and competition in the insurance market, and we are concerned when restrictions on that choice and competition harm consumers’ interests,” a CBA spokesperson said.
“That said, clearly the banks in Canada comply with all aspects of the government’s insurance regulations.”
He added that individual banks will be reviewing the new rules and determining what they need to do to comply with the rules.