Strengthening protection for life and health insurance consumers in Ontario

FSRA seeks public feedback on proposed rule for life and health managing general agents (L&H MGAs)

TORONTO, Jan. 28, 2025 /CNW/ - Ontario's financial services regulator (FSRA) is proposing a new rule to better protect consumers and strengthen oversight of life and health insurance managing general agents (L&H MGAs).

It will also help ensure consumers are treated fairly and coansistently and they are receiving advice from well-trained and properly supervised agents. 

"Our proposed rule will improve protection for Ontarians by ensuring they receive life and health insurance advice and product recommendations from well-trained and properly supervised agents," said Huston Loke, Executive Vice President of Market Conduct at FSRA. "Our supervision uncovered troubling practices in the MGA distribution channel and this new proposed rule will help ensure that consumers are treated fairly and consistently." 

The proposed rule builds on recent amendments to the Insurance Act creating a separate licensing class for L&H MGAs in Ontario. It establishes clear licensing, compliance and agent oversight requirements for businesses performing certain regulated L&H MGA activities related to the sale of life and health insurance. The proposed rule also enhances accountability for L&H MGAs and insurers by clarifying roles and responsibilities in agent supervision and introduces requirements for agents who work with L&H MGAs.  

The proposed rule is part of FSRA's six-point action plan to correct troubling practices in the life and health insurance sector which are harming consumers. 

FSRA encourages stakeholders to submit feedback on the proposed rule, open for consultation until March 31, 2025. 

Learn more: 

• Consultation on proposed Rule 2025-001 – Life and Health Insurance Managing General Agents 
• Insurance Act 
• FSRA's past supervisory reviews   

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.

FOR MEDIA INQUIRIES:

Russ Courtney 
Sr. Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: russ.courtney@fsrao.ca 

SOURCE Financial Services Regulatory Authority of Ontario