Insurance inspections
The AMF inspects and oversees individuals and entities registered in the following insurance sectors:
- Insurance of persons (life and health)
- Group insurance of persons
- Financial planning
- Damage insurance*
- Claims adjustment*
* Inspection of firms with 24 or fewer representatives
From 2005 to 2019, the Chambre de l’assurance dommages (ChAD) was mandated by the AMF to inspect firms with 24 or fewer representatives.
The AMF has now taken back this responsibility so as to be better positioned to accurately measure changes in products, practices, and business models and thereby assess the effectiveness of, and make any necessary adjustments to, the current regulatory framework.
Scope of inspection
The scope of the inspection may vary depending on the type of inspection. The primary goal of the inspection is to validate overall compliance with the requirements set out in An Act respecting the distribution of financial products and services and its regulations. For information purposes, the inspection focuses on:
- Supervision
- Transactions (including suitability)
- Business conduct
- Business and professional practices
- Financial situation and financial control environment
Main findings inspections
AMFs inspections across all insurance sectors have contributed to create a positive impact on the industry’s compliance culture.
For example, the areas that generated the most frequent findings by the AMF during its inspections are:
- Supervision in general (including probationary periods and representatives under supervision conditions)
- Client needs analysis, product offer and renewal and replacement procedures
- Keeping of client records, books and registers
- Confidentiality and protection of personal information
- Computer hardware security
- Business continuity plan
- Complaint examination and dispute resolution
- Representations, advertising and solicitation
- Conflicts of interest, concentration of business volume, ownership interests and disclosure obligation