LONGUEUIL, QC, May 30, 2018 /CNW Telbec/ - With just a few days remaining before the end of the parliamentary session, the Regroupement des cabinets de courtage d'assurance du Québec (RCCAQ) believes that the efforts of the public finance committee should be supported with a view to adopting Bill 141. The credibility of the insurance sector is at stake, as is the confidence in mechanisms designed to protect consumers' financial well-being.
Clear oversight system and enhanced public confidence Quebec's insurance industry is currently subject to a dual oversight system provided by the Chambre de l'assurance de dommages (CHAD) and the Autorité des marchés financiers (AMF). This model, however, unduly adds to the regulatory burden and is creating confusion, not only for insurance professionals but also for the public.
The RCCAQ reiterates its support for Bill 141, which would create a "one-stop shop" by making the AMF a fully integrated regulator with no loss of expertise. This model would create a consistent and fair oversight system for industry actors while boosting public confidence.
The industry would thus gain in terms of clarity, coherence and efficiency.
Online insurance sales: efforts are ongoing On various occasions the RCCAQ has voiced concerns about online insurance sales and the risks they pose to safeguarding consumers' financial well-being. Despite the amendments to the bill adopted in March, the mandatory involvement of a certified representative is essential to guaranteeing optimal consumer protection, as are the advice and guidance offered by brokers in the event a claim is filed.
"Bill 141 does not go far enough in this regard," said RCCAQ chair Christopher Johnson. "Nevertheless, it does have the merit of putting benchmarks in place that will enable us to continue our regulatory work. But slowing down the legislative process and ultimately slowing down the adoption of the legislation will be of no benefit whatsoever, whether to the industry or to consumers."
Protecting consumers under new market conditions Over the past 20 years, the insurance brokerage environment has changed; as a result, the legislation governing industry professionals is now obsolete. The less-than-clear legal provisions it contains, particularly as regards technological innovations, do not adequately address new market realities and thus ultimately put consumers at risk.
Following an industry consultation process lasting more than three years, the RCCAQ believes that an updated legislative framework is essential. The RCCAQ is now convinced that Bill 141 meets those requirements and is the best way to ensure that consumers have an effective oversight system and adapted coverage.
About the RCCAQ The RCCAQ is a professional association that seeks to promote and defend the socio-economic interests of its member firms. It represents some 4,200 brokers working in 500 firms and branch offices across the province.