Toronto-based insurance company ivari has agreed to retain an independent monitor to review and assess its compliance system.
Having a monitor “validate that [ivari] has a system in place that is reasonably designed to ensure that its agents who distribute its products are in compliance with regulatory requirements” is one of the conditions imposed by the Financial Services Regulatory Authority of Ontario (FSRA) in order for ivari to maintain its insurance licence.
As stated in an order issued Thursday, FSRA requires the monitor to review the selling practices of the managing general agencies (MGAs) that recruit and supervise agents selling ivari’s insurance products.
“The independent monitor will also assess whether ivari has effectively addressed issues previously identified by FSRA, and implemented commitments previously made to FSRA,” the regulator said, without referring to the nature of those issues.
Ivari was purchased by Sagicor Financial Company Ltd. in 2023.
FSRA closed a consultation in February on proposed targeted guidance for insurers, life agents and MGAs.
The proposal, which clarifies the conduct FSRA considers when determining licensing suitability, was issued following regulatory examinations that exposed an array of troubling business practices.
The proposal clarifies, for example, that MGAs are responsible for ensuring their directors, employees and agents comply with all regulations.