35% of review cases escalated for further investigation
The Financial Services Regulatory Authority of Ontario (FSRA) reviewed more than 100 life agents as part of its first Life and Health Insurance Agent Supervision report released today.
The results suggest standards need to improve. Of the 115 higher-risk life agents reviewed, FSRA escalated 35 percent of cases for further investigation, issued a business practice letter in 23 percent of cases, and closed 21 percent of cases with no concerns.
The report also includes outcomes from 61 agent suitability complaints received through Life Agent Reporting Forms (LARFs) in 2021-22. FSRA closed 57 percent of these LARF cases and escalated 43 percent of cases for further review.
In a press release, FSRA said the outcomes of these examinations suggest the life agents reviewed need to improve their overall business practices, and that insurers need to review their life agent compliance oversight programs to better monitor and report unsuitable agents.
“Insurance provides critical protection for individuals, families, and businesses and these customers deserve insurance that meets their needs,” said Huston Loke, Executive Vice President, Market Conduct. “Through our supervision and enforcement efforts we want to ensure consumers are fully protected and that insurance professionals can review and improve their market conduct.”
To better protect consumers, FSRA is making it easier to report life agents who may be unsuitable.
