May 10, 2006 by Canadian Underwriter
The existing legislation limiting Canada’s banks marketing of insurance products should be upheld by the federal government, according to chief executive of Sun Life Financial Inc. Donald Stewart.
During Sun Life Financial’s recent annual meeting, Stewart commended the new Conservative government’s election platform, which promises to “maintain the current regulations governing insurance marketing by the chartered banks.”
Maintaining the current legislation is integral if the financial services market is to stay competetive, Stewart adds.
In lieu of the upcoming Bank Act review, the Canadian Bankers Association is pushing for the right to market their insurance products in their branches.
While banks are currently entitled to participate, advertise and sell insurance, they are only allowed to do so when a consumer contacts them via phone or the Internet. Under current legislation banks cannot promote their insurance product internally at branches in any way.
Stewart promotes these rules saying they support “independent insurance advisers in maintaining choices for Canadians in a country that has the world’s second most concentrated bank sector.”