CLHIA says sales practices could be improvedRelease Date: 03/30/2016 Source: The Insurance & Investment Journal Staff Reference: Brent Mizzen
“Travel rewards could contribute to “perception of a conflict of interest”
The Canadian Life and Health Insurance Association (CLHIA) has conducted a review of how individual insurance is sold. It is recommending a number of changes which, if implemented, could change the way some advisors do business and the travel rewards they receive.
On Feb. 26, the CLHIA released a report on insurance distribution in Canada. The association reviewed sales practices across the country, and it came up with a list of things regulators could change to better protect insurance consumers.
First of all, the paper recommends that all jurisdictions both establish continuing education criteria for life licensees and require all advisors to carry errors and omissions coverage. As for who should monitor and enforce these and other standards, the CLHIA says that the regional council method fosters closer ties between regulators and both advisors and customers, and is preferable to a national self-regulatory organisation.