Ontario NDP, CAC say Sorbara in conflict over broker commissions

The Consumers Association of Canada (CAC) wants to see Ontario Finance Minister Greg Sorbara to “step aside as regulator of the insurance industry”, saying he is in conflict over the issue of broker commissions.
The call comes after New Democrat MPP Peter Kormos accused Sorbara of having a conflict of interest over insurance issues because of his minority stake in his family’s brokerage, Adriatic Insurance Brokers Ltd. Sorbara put his assets in that business, as well as others, into a blind trust, when he assumed office.
CAC president Bruce Cran says Sorbara should remove himself from overseeing the insurance industry, and accuses Sorbara of avoiding investigating the issue of brokerage commissions in Canada as is being done by insurance departments and Attorneys General. “It will be impossible for the Ontario Government to restore consumer confidence in the insurance industry when the Minister in charge may have a financial interest in an insurance brokerage himself,” says Cran.
The Minister is expected to receive a report on the industry’s status relative to brokerage commissions and other market conduct issues in the near future, when results of a Financial Services Commission of Ontario (FSCO) survey of insurers is completed. Insurers are currently responding to the survey, which industry insiders call “comprehensive”, with their responses due by November 15.