CLHIA DELAYS IMPLEMENTATION OF NEW COMPENSATION DISCLOSURE GUIDELINE BY SIX MONTHS
News ReleaseRelease Date: 02/05/2018 Staff Reference: Wendy Hope
(Toronto, February 5, 2018) – In response to feedback from the advisor community, the Canadian Life and Health Insurance Association (CLHIA) has postponed the implementation of its new Guideline G19, Compensation Disclosure in Group Benefits and Group Retirement Services, by six months for new contracts to January 1, 2019.
"Advisors are valuable partners in delivering group benefits and retirement services to Canadians and their views on the new proposed standards and how to implement them are key. Consultations began earlier this year and we are listening to their views. That is why we took the immediate step of pushing back the implementation date,” explained CLHIA President and CEO, Stephen Frank.
The CLHIA is currently on a cross-country tour, meeting with advisors to explain the new Guideline and gather their views and recommendations on how best to implement G19. Advisors who cannot make it to one of these locations will also have the opportunity to participate in a webinar, in the official language of their choice, scheduled for February 22. Further, the CLHIA is creating an advisory committee of advisors and insurers to provide their guidance. "We need the help of advisors to ensure successful implementation and we are committed to partnering with them on the new standards," concludes Mr. Frank.
Group benefits and group retirement services are important to the financial well-being of Canadians. The goal of the new Guideline is to be more customer focused and transparent in compensation disclosure by establishing industry standards in this area. All insurers will be required to disclose to group contract holders (i.e., employers and other organizations offering group benefits and retirement services) all direct, indirect and in-kind forms of compensation paid or provided by insurers to intermediaries.
About the CLHIA
The CLHIA is a volunteer association whose member companies account for 99% of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to more than 28 million Canadians. It also holds over $810 billion in assets in Canada and employs nearly 155,000 Canadians.
Wendy Hope, Vice President, External Relations