Winnipeg-based Great-West Life Assurance Co. (GWL) and its Toronto-based sister company, Canada Life Assurance Co., will be discontinuing recognition conferences that reward independent insurance agents who generate large volumes of business, the companies announced on Monday.
In communications sent to advisors, executives with GWL and Canada Life explained that the two firms will no longer host volume-based incentive conferences for advisors in an effort to ensure advisors can operate without any perceived conflicts of interest.
The conferences, which have been held in locations such as Portugal, Switzerland and Australia, remain a common method for life insurers to reward their top producers, even though this practice was banned in the mutual fund industry long ago.
The decision comes as insurance regulators focus more heavily on managing conflicts of interest in the distribution of life insurance.
“Our industry, and the regulatory landscape that governs it, is rapidly evolving,” says Nick Pszeniczny, executive vice president, individual distribution and marketing with GWL, Canada Life and London, Ont.-based London Life Insurance Co., in a statement. “Over the past decade, events in the financial markets have prompted insurers to re-examine business practices to ensure the needs and priorities of the consumer are paramount.”
The companies recently conducted a review of their incentive conferences, with a goal of ensuring advisors remain “valuable, relevant and without perceived conflict of interest, in their dealings with consumers,” Pszeniczny says.
“This review concluded we should transition from sales volume-based incentive conferences to more open eligibility events that focus on advisor development for our Great-West Life and Canada Life independent distribution channels,” he adds.
The companies are still deciding whether to continue with recognition conferences in London Life’s exclusive distribution channel, Pszeniczny notes.
Canada Life’s May 2016 conference in London, England will be the insurer’s final recognition conference, and GWL’s final conference will take place in May 2017 in Rome, Italy.
The companies plan to redirect resources toward programs focused on development and education rather than recognition, with costs shared by the advisor.