Skip to content

Brought to you by

Dentons logo

Canada Insurance Law Review

Updates on key developments in Canadian insurance law by a national team of experienced lawyers.

open menu close menu

Canada Insurance Law Review

  • Home
  • About us

CISRO Finalizes Principles of Conduct for Insurance Intermediaries

By Laurie LaPalme, Derek Levinsky, Marisa Coggin, and Jesse Collins-Swartz
April 27, 2022
  • Insurance
  • Insurance regulatory
Share on Facebook Share on Twitter Share via email Share on LinkedIn

On April 6, 2022, following the consultation of industry stakeholders in the summer of 2021, the Canadian Insurance Services Regulatory Organizations (“CISRO”) published the Principles of Conduct for Insurance Intermediaries (the “Principles”) for the fair treatment of customers in the life and health, and property and casualty insurance markets in Canada.

The Principles consist of ten professional behavior and conduct expectations for the fair treatment of customers by insurance intermediaries in Canada. It is important to note that the Principles define “insurance intermediary” and “customer” quite broadly. Specifically, the definition of “insurance intermediary” includes adjusters, agents, brokers, representatives, MGAs, and third-party administrators. This includes captive agents, holders of restricted agent/agency licenses, and persons exempted from licensing requirements who are involved in the incidental sale of insurance products. Further, the definition of “customer” includes both policyholders and potential policyholders, and other beneficiaries and claimants with respect to an insurance policy.

CISRO noted that the Principles are intended to supplement, complement and build upon the intermediary elements in the Guidance on the Conduct of Insurance Business and Fair Treatment of Customers, and that the Principles are meant to align with the Insurance Core Principles of the International Association of Insurance Supervisors.

This article provides a brief overview of the Principles and their implementation by insurance intermediaries conducting life, health, and/or property and casualty insurance business in Canada.

The Principles

CISRO points out that insurance intermediaries should conduct their business following the Principles that are relevant to their business, while ensuring compliance with all applicable laws, regulations, rules, or regulatory codes within the jurisdictions in which they conduct business.

Implications for Insurance Intermediaries Conducting Insurance Business in Canada

In a questions and answers document accompanying the release of the Principles, CISRO provided some further guidance on how the Principles may be applied by insurance intermediaries in their respective businesses. CISRO indicated that:

  • Insurance intermediaries are encouraged to share and explain the Principles to its customers.
  • Provincial/territorial insurance regulators may publicly endorse or release further communications about the implementation of the Principles in their respective jurisdictions. For example, the Financial Services Regulatory Authority of Ontario has commenced a consultation period to examine the adoption of the Principles.
  • Insurance intermediaries should conduct their businesses following the Principles that are relevant to them, while ensuring compliance with all applicable laws, regulations, rules, or regulatory codes.
  • Insurers and intermediaries with contractual or regulatory oversight obligations for insurance intermediaries should ensure that (i) the relevant Principles are included in applicable education/training materials; and that (ii) the insurance intermediaries’ internal policies, procedures, codes of conduct, and other relevant documentation align with the Principles.

Insurance intermediaries conducting any insurance business in Canada should carefully review their internal procedures, policies, and practices to ensure compliance with the Principles. Prior to introducing any new promotions or programs, insurance intermediaries should also consider the structure and details of such promotions or programs in light of the Principles, including whether the insurance intermediary has sufficient oversight over any relevant employees or third parties.

Dentons Canada’s Insurance Regulatory group would be pleased to assist in this regard.

Share on Facebook Share on Twitter Share via email Share on LinkedIn
Subscribe and stay updated
Receive our latest blog posts by email.
Stay in Touch
Laurie LaPalme

About Laurie LaPalme

Laurie LaPalme leads Dentons Canada’s National Corporate and Regulatory Insurance practice and is Co-Lead of the National Insurance sector group. With more than 20 years of experience advising domestic and foreign life and general insurance companies, insurance agents and brokers, reinsurance companies on corporate and regulatory matters, transactions, corporate reorganizations, and governance issues, clients note that Laurie is “absolutely an expert and that comes across clearly in the work,” taken from a Chambers Canada client interview.

All posts Full bio

Derek Levinsky

About Derek Levinsky

Derek Levinsky (He/Him/His) is a partner in Dentons’ Corporate group and Insurance sector practice. Based in Toronto, Derek provides legal services to a wide range of clients in the insurance market, including brokers, agents, and other actors in the insurance space.

All posts Full bio

Marisa Coggin

About Marisa Coggin

Marisa Coggin is a partner in the Corporate and Insurance groups at Dentons. Marisa’s practice focuses on corporate and commercial law with an emphasis on corporate and regulatory insurance. Marisa also offers experience in, and regularly assists clients with corporate reorganizations, mergers & acquisitions and financing.

All posts Full bio

Jesse Collins-Swartz

About Jesse Collins-Swartz

Jesse Collins-Swartz is an associate in the Corporate group and Insurance sector practice at Dentons Canada LLP. Jesse’s work focuses on corporate and regulatory matters and commercial transactions, including M&A, joint ventures, corporate finance, and reinsurance.

All posts Full bio

RELATED POSTS

  • Insurance
  • Insurance regulatory

OSFI proposes new regulatory guidance concerning the management of climate-related risks: What federally regulated institutions should know

By Marisa Coggin and Taschina Ashmeade
  • Insurance
  • Insurance regulatory

OSFI Releases the Final Version of its Climate Risk Management Guideline: Actions for Federally Regulated Insurers

By Laurie LaPalme, Derek Levinsky, and Jesse Collins-Swartz
  • Automobile
  • Coverage
  • General
  • Insurance

“Any one accident” a term of art

By Katherine Martin

About Dentons

Dentons is designed to be different. As the world’s largest law firm with 20,000 professionals in over 200 locations in more than 80 countries, we can help you grow, protect, operate and finance your business. Our polycentric and purpose-driven approach, together with our commitment to inclusion, diversity, equity and ESG, ensures we challenge the status quo to stay focused on what matters most to you. www.dentons.com

Dentons boilerplate image

Twitter

Categories

  • Automobile
  • Construction and Design
  • Coverage
  • D&O and E&O Insurance
  • Environmental
  • General
  • Insurance
  • Insurance regulatory
  • Mergers and Acquisitions
  • Misc.
  • Securities/Class Actions
  • Tort Liability
Dentons logo white

© 2023 Dentons

  • Legal notices
  • Privacy policy
  • Terms of use
  • Cookies on this site