Industry trade group the Canadian Life and Health Insurance Association (CLHIA) is warning the Ontario government against allowing life settlement companies to set up shop in the province.
In its pre-budget submission to the government, the CLHIA covered a number of issues, including taxes on life and health insurance premiums, pension innovation and the ongoing development of rules for the use of financial planner and advisor titles.
It also warned the government against allowing life settlement contracts in Ontario, noting that a private member’s bill would revise insurance legislation to “permit trafficking in life insurance policies.”
The CLHIA said this would expose a vulnerable segment of the population — generally low-income seniors and people with health concerns — to possible financial abuse.
“In the context of Covid-19, life settlement companies are anxious to open up markets in Ontario and Canada as more Canadians are struggling financially, providing more opportunities for financial exploitation,” the group said in its submission.
The trade group warned the government against allowing this activity in Ontario, arguing that there are better options for insurance customers.
In the same submission, the CLHIA also recommended that the government reconsider proposed rules on financial planner/advisor titles that would require the holders of basic life agent licensing, the LLQP, to boost their qualifications to meet the titling standards.
The trade group also called for an end to taxes on insurance premiums and encourages access to new types of annuities.