Montréal - The Autorité des marchés financiers (the "AMF") released the results of a self-assessment by 219 insurers licensed to operate in Québec on various aspects of their commercial practices further to a request for information sent by the AMF in May 2014. The objective of the request was to gain an overview of insurers' progress in meeting the expectations of the Sound Commercial Practices Guideline (pdf - 341 KB)This link will open in a new window published by the AMF in June 2013.
"The self-assessments generally confirm the implementation of sound practices in the insurance industry," said AMF President and CEO Louis Morisset. "However, weaknesses in insurers' commercial practices were identified which we will focus on in the coming months. We will soon be rolling out initiatives and consultations with industry," he concluded.
These weaknesses stem principally from the lack of formalized control processes and measures, specifically with respect to incentives management, design and marketing of products, governance and corporate culture.
It should be noted that the report contains insurers' answers received as part of the self-assessment exercise; it is therefore not an assessment by the AMF of the quality of commercial practices in the Québec insurance sector.
Based on the principles and expectations set out in the Sound Commercial Practices Guideline (pdf - 341 KB)This link will open in a new window, insurers must develop strategies, policies and procedures commensurate with their nature, size and complexity. Moreover, under the AMF's Financial Institutions Supervisory Framework, commercial practices are an integral part of an insurer's risk profile.
The AMF wishes to emphasize that insurers' commercial practices must encompass the fair treatment of consumers at each stage of a product's life cycle.
The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial sector.
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