RIBO AGM: U.S. broker allegations “ripple down” to Ontario

While the past year had seen the situation improve on many fronts for brokers, the events of the past few weeks in the U.S. are now taking their toll on Ontario’s brokers, noted Rod Finlayson, outgoing president of the Registered Insurance Brokers of Ontario (RIBO).
At the self-regulatory body for broker’s annual general meeting in Toronto late last week, Finlayson said, “Up until a few weeks ago, I was going to report that it has been a fairly uneventful year As most of you can imagine, recent allegations in the U.S. have had a ripple down effect here.”
He refers to investigations of broker compensation issues in the U.S. and the filing of a civil suit against Marsh by New York Attorney General Eliot Spitzer, who accuses the broker of bid-rigging, as well as conflict of interest relative to the acceptance of contingent commissions.
Finlayson notes that RIBO is now working with the Financial Services Commission of Ontario (FSCO) to look into a range of practices between brokers and insurers he says the focus of the investigation is beyond contingent commissions to include overall market practices.
He adds that RIBO CEO Jeff Bear is on the joint committee established by the Canadian Council of Insurance Regulators (CCIR) and Canadian Insurance Services Regulatory Organizations (CISRO).
Reflecting on the past year, Finlayson points to several achievements by the broker regulator:
– starting to update the broker-database system;
– a review of RIBO’s continuing education requirements which resulted in an increase in the number of hours required from six to eight for brokers and 7.5 to ten for principals; and
– holding the line on fees, and offering early renewal discounts.