19 September 2019 13:30
Vincent Gaudreau, Jean Bilodeau and Patrick Bouchard
Three former presidents of the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ) have expressed their opposition to the draft regulation on the brokerage in damage insurance, thefinancial markets Authority. It has been the subject of a consultation until 23 September. The regulations stating the provisions of the bill, 141 to enter into force on 13 December 2019.
“The regulations proposed by the Authority has several shortcomings which may come to undermine the protection of consumers, decrease the equity of distribution networks and, ultimately, jeopardize the very existence of the brokerage in Québec,” wrote Vincent Gaudreau, Jean Bilodeau and Patrick Bouchard in a release relayed on LinkedIn.
This is more specifically towards the agencies-in hybrids that three of the signatories have demonstrated their reluctance, stating even that ” the Authority abandons the enterprises “. During the information session held by the regulator on 5 September, it is this same aspect of the draft regulation that had the most attention and which had the more been the subject of criticism on the part of those present.
A “source of iniquity”
The authors of the letter argue that the concept of the hybrid agency, in which could co-exist of insurance agents individuals distributing exclusively the products of one insurer and brokers and traditional insurance to businesses, would be a ” source of iniquity “. The fact that some of the rules on transparency applicable to insurance brokers to individuals, but not to those insurance companies is the problem, they say.
Vincent Gaudreau, Jean Bilodeau and Patrick Bouchard criticize the “lack of coherence” of the Authority in the draft regulation.
The disclosure is also contentious
In the new provisions that are the subject of the consultation, the Authority also introduces the obligation for the brokers to disclose the percentage of their volume among the insurers with which they do business. The authors consider this proposal as ” downright insulting to [the] profession “.
They take, for example, of other trades, such as architects, engineers, and doctors, who, in their daily lives, must recommend products that are ” subject to the influence of firms or lobbyists “. “It is, therefore, to say that, in the eyes of the Authority, our code of ethics is no longer sufficient to guarantee our independence and our professionalism. No one is against transparency and disclosure, but this may not be a panacea to a code of ethics that was clear and is applied with due diligence “, hammer-they.
The authors conclude by inviting the brokers to submit their comments to the Authority through the consultation.
Meanwhile, the RCCAQ has indicated to the Journal of insurance that it will make its position known at the end of the consultation, that is, 23 September.