LIFE AND HEALTH INSURANCE INDUSTRY WELCOMES CHANGES TO FINANCIAL SERVICES LEGISLATION
News ReleaseRelease Date: 11/23/2011 Staff Reference: Wendy Hope
(Toronto) -- The Canadian life and health insurance industry welcomes the Financial System Review Act released by the federal government today.
"It is important that legislation be periodically reviewed so that it keeps up with the changing environment," says Frank Swedlove, President of the Canadian Life and Health Insurance Association (CLHIA). "We are pleased that the government appears to be on schedule to meet the sunset deadline of April 20, 2012."
The industry welcomes a number of measures outlined in today's announcement. In particular, it is pleased to see commitments to:
- reducing the administrative burden for federally regulated insurance companies offering adjustable policies in foreign jurisdictions;
- permitting mutual funds controlled by insurers through segregated fund investments to hold market-indexed shares in managing life insurance companies; and
- changing the priority status of segregated fund policies in insolvency situations to facilitate timely transfer.
The Canadian life and health insurance industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance, to about 26 million Canadians. Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business.
Media enquiries: Wendy Hope, Vice President, External Relations – (613) 230-0031