The AMF published a report entitled "Internet insurance offerings in Quebec" on April 2, 2015. The report provides orientations on issues raised by the online distribution of insurance products.

You can access the full text of the report using the following link: http://www.lautorite.qc.ca/files/pdf/reglementation/distribution/
avis/2015avril02-rapport-assurance-internet-en.pdf

Results of the public consultation and orientations

In 2012 and 2013, the AMF held a public consultation on Internet insurance offerings in Quebec. A total of 20 briefs were submitted by various insurance industry stakeholders. After reviewing the briefs, the AMF pursued its examination of the issues with the stakeholders in order to understand their concerns better, observe the development of the technology and express its opinion as to the adequacy of the current regulatory framework and how best to treat Internet insurance offerings.

The AMF has now published the results of this consultation. The report contains 11 orientations that, in the words of the president and CEO of the AMF, "aim to find an appropriate balance between the orderly development of electronic insurance sales and the protection of the public." [translation]

However, these orientations do not change the current legislative and regulatory framework, as, according to the report:

"The government might decide that regulatory amendments are necessary in order to implement these orientations."

Involvement of a certified representative (or not)

The AMF indicates in one of its orientations that the purchase of insurance products on the Internet might not require the intervention of an insurance representative provided certain conditions are satisfied, including the following:

  • consumers have access to self-assessment tools that allow them to identify their insurance needs;
  • insurance application forms are designed to provide sufficient information for consumers to answer the questions properly;
  • consumers must personally use the tools made available to them without the intervention of an uncertified third party;
  • consumers must have access to an insurance representative, if necessary, at every step in the insurance purchasing process;
  • consumers are informed of the importance of obtaining advice.

These conditions are in addition to the other orientations published by the AMF, namely, the disclosure of essential information, the delivery of contract documents, the reliability of transactions and the protection of personal information, distribution other than through a representative, comparison shopping websites, advertising and social media.

In other words, the message conveyed by the AMF in this report is that technology may replace the intervention of an insurance representative provided it offers consumers the same level of information, advice and protection required for consumers to give their informed consent and provided consumers do not feel the need to consult a certified representative.

At this stage, while the report makes a useful contribution to the discussion, it does not change the current legislative and regulatory framework, which is the prerogative of the legislator.

In keeping with the goal of harmonizing practices across Canada, the AMF's orientations are in line with the position paper adopted by the Canadian Council of Insurance Regulators (CCIR) in October 2013 and are inspired by it on several issues.

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