The Independent Financial Brokers of Canada is calling for mutual reliance in life licensing.
In a submission to Canadian Council of Insurance Regulators, the trade group notes that life insurance brokers and agents have clients and do business in many provinces in Canada, and that it is time consuming and difficult to maintain the different licenses required across the country.
The IFBC asks that “consideration be given to establishing a mutual reliance system for obtaining life insurance licenses, both personal and corporate.” It says that a mutual reliance system would provide for cost savings for both the regulators and the applicants for licensing.
The IFBC also recommends removing the requirement for insurance company sponsorship to obtain a life insurance license. “As the distribution marketplace has moved away from single company representation, insurance companies that receive only a small portion of an agents written business sponsor many life licenses. This is an additional licensing requirement that is an impediment that is unnecessary and burdensome in today’s distribution marketplace,” it says.
Finally, it recommends that regulators give consideration to establishing a vehicle to provide consumer protection, rather than requiring brokers to carry errors and omissions insurance. It notes that it supports the goal of E&O insurance protection, but is concerned about its cost and availability.