Restrictions prohibiting Canadian consumers from accessing insurance product information through bank branches have never made sense and they don’t make sense now. That is the message that Raymond Protti, president and CEO of the Canadian Bankers Association (CBA), delivered this morning in a speech to a joint meeting of the National Press Club of Canada and The Economic Club of Ottawa in Ottawa.

In the Speech from the Throne, the federal government committed to a comprehensive review of the Bank Act, and last week’s federal budget set out a timeframe for the review, with the release of a white paper this spring and legislation tabled in the fall.

While information on insurance products is available from bank financial groups through advertisements, by mail, on the phone or through their websites, current legislation prevents customers from getting the same information at a bank branch.

“This is counter-productive public policy that works against the interests of consumers. Despite what some in the insurance industry would claim, this is not protecting consumers,” said Protti. “Giving consumers access to insurance product information where and when they want it is a straightforward, good sense public policy initiative.”

During his speech, Protti outlined the proposed simple changes that would give Canadians more access to insurance information by allowing consumers to:

  • Get insurance product information, such as a brochure, at a bank branch;
  • Give permission to have insurance product information tailored to their specific circumstances sent to them if they wish;
  • Get a referral from bank branch personnel to a qualified insurance professional outside of the branch. This could be a referral to a bank-owned agency, a call-centre, an independent agency or a third party insurance corporation with which the bank has a relationship; and
  • Ask to have relevant information referred to an insurance affiliate to make it easier for the consumer to obtain information about a product they are interested in.



“Insurance is an important product,” said Protti. “The more opportunity consumers have to learn about insurance products, the better the chance there is that they will access the product,” he added.

Gary McLeod, chairman of Advocis, questioned the banks’ motives, following Protti’s speech.

“The banks say all they want to do is inform consumers. But what they’re calling for is more access to the consumer’s personal information so they can market more of their products,” McLeod said.

“Mr. Protti says the prohibitions on the sale of insurance in branches ‘don’t make sense.’ We say, along with Canadians and small business owners, that because of real concerns about the privacy of health and medical information and aggressive selling and sales pressure, they make all the sense in the world.”

“The current protections were put in place to ensure consumers’ interests come first. Why would anyone want to change that?” McLeod concluded.