Ontario's regulator highlights agent misconduct and calls for improved compliance
Ontario’s Financial Services Regulatory Authority (FSRA) released a report highlighting areas where the life and health insurance industry needs to improve consumer protection.
The findings are based on a review of 319 agents conducted between 2022 and 2024 through FSRA's Life Agent Misconduct Report and proactive supervision programs.
“While the 319 agents we reviewed don't represent the entire sector, some of their behaviours raise consumer protection concerns,” said Huston Loke, executive vice president, Market Conduct at FSRA.
He encouraged insurers to examine their compliance systems and ensure that agents are selling insurance products that meet their clients’ needs.
FSRA found certain practices among agents that do not align with consumer interests, including:
- Providing false or misleading information to insurers and consumers
- Engaging in coercion
- Acting as a front for unlicensed individuals
- Failing to provide written disclosure of conflicts of interest
- Neglecting to follow best business practices
The regulator took several steps to address these issues. It issued business practice letters in 57 cases, escalated 55 cases for further investigation, and closed 15 cases where no concerns were identified.
FSRA stressed that insurers are responsible for the conduct of their agents, including those contracted through distribution partners.
The regulator expects all industry participants to prioritise the best interests of consumers.
Looking ahead, FSRA plans to work closely with the industry to enhance the quality of Life Agent Misconduct Reports and share trends observed during its reviews.
According to its press release, this initiative aims to help the regulator direct its supervision efforts toward areas of highest risk to consumers.
