Canada’s insurance regulators have launched a consultation on insurance agents’ best practices for managing conflicts of interest.

The Canadian Council of Insurance Regulators (CCIR) has initiated an online questionnaire to assess the practices of insurance agents in managing conflicts of interest in the marketplace.

Completion of this questionnaire is mandatory for agents selected as part of a random sample. These agents are required to complete the questionnaire by July 27.

The Financial Services Commission of Ontario and other members of CCIR have agreed on three principles for managing actual or potential conflicts of interest. These principles are supposed to promote consumer confidence in the insurance industry by outlining best practices for managing these situations when they arise.

The principles are: client’s interests come first; consumers must receive disclosure of any actual or potential conflict of interest that is associated with a transaction or recommendation; and, products recommended must meet the needs of the consumer.