Montréal – The Autorité des marchés financiers (the "AMF") today released an issues paper on managing conflict of interest risk in relation to incentives paid by insurers to firms, independent representatives, independent partnerships and certified representatives in the insurance of persons and damage insurance sectors.
"This issues paper is a new step in the process begun in 2013," said Louis Morisset, AMF President and Chief Executive Officer. "The aim is to further discussions on the risk of certain incentive categories negatively impacting the fair treatment of consumers, the control and supervision mechanisms that insurers should implement to mitigate this risk, and the competitive imbalance that these incentives can create."
The issues paper is related to the implementation of the Sound Commercial Practices Guideline, published by the AMF in June 2013. To gain an overview of insurers' progress in applying the Guideline, in May 2014, the AMF sent a self-assessment questionnaire to 219 insurers and, in July 2015, released a report (pdf - 658 KB)This link will open in a new windowUpdated on 16 July 2015"Rapport, pratiques commerciales,autoévaluation, 2015" presenting the results of this exercise.
At that time, the AMF announced that it would examine the areas of vigilance identified, including the management of insurance incentives. Therefore, in recent months, the AMF analyzed all documents gathered through the self-assessment, during meetings with members of the insurance industry and as part of its supervisory work.
Insurance stakeholders are invited to submit their comments and observations about the points raised by the AMF in its issues paper by October 15, 2017.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
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