Insurance regulators are moving more of their licensing procedures online in an effort to make obtaining insurance licences and keeping licensing information up to date easier for individuals. The changes represent a long overdue shift away from paper and toward greater efficiency.
Most recently, New Brunswick’s insurance regulator, the Financial and Consumer Services Commission (FCNB), announced the imminent launch of a new online insurance licensing portal intended to replace the FCNB’s existing paper-based system. The decision to launch the new portal was prompted in part by insurance industry complaints about the lengthy licensing process, says Rick Hancox, CEO of the FCNB, based in Saint John.
“The process that’s in place now is predominately paper-based, so a lot of it is submitting forms, chasing down paper, and so forth,” says Hancox. “The insurance industry was interested in steps we could take to improve our licensing system.”
The new system, which is expected to launch at the end of October, will enable applicants to complete their applications, submit all of the required supporting documentation and pay their fees using a single, online portal instead of having to mail in documentation.
“This speeds up the process,” Hancox says. He adds that the system also will allow the FCNB to spend less time chasing down paperwork and more time reviewing applications to ensure new insurance agents have all of the necessary qualifications.
“Obviously, we need to balance being efficient with making sure that we’re performing our regulatory function, and making sure that folks who are getting into the industry are those that are qualified,” Hancox says. “This allows us to concentrate on suitability and qualifications, and so on.”
The online portal is the first component of a multi-phase project, with different services that will be brought online over time, Hancox says. Next, the FCNB will create capabilities for agents to renew their licences online.
Several provinces already have adopted online licensing and licence renewal systems; however, some are still largely paper-based.
The Financial Services Commission of Ontario (FSCO), for one, launched its online licensing system almost 15 years ago. FSCO has tweaked its online registry in recent months to give insurance agents the ability to update their errors and omissions (E&O) insurance information online rather than mailing or phoning in the information.
That makes meeting ongoing licensing requirements easier for advisors, says Susan Allemang, head of regulatory and policy affairs with Mississauga, Ont.-based Independent Financial Brokers of Canada.
“It used to be that people just updated their E&O information when they renewed their licence, but now [FSCO is] requiring them to update it on an ongoing basis,” Allemang says. “This way, you can do it at any time of the day – you can just go online and it’s done.”
Brian Shumak, certified financial planner and owner of Brian Shumak Financial Services in Toronto, says the changes are welcome. “It’s about time,” he notes. “It’s so nice when you can just do it all online.”
Shumak is licensed in multiple provinces As a result, he says, managing his licensing requirements in each jurisdiction can be an onerous task. He applauds any initiative that makes the process more efficient: “When you can’t pay online and you have to send paper, it’s a pain. There is no reason that something that is so simplistically automated in today’s world, isn’t.”
The only caveat, Shumak says, is privacy. As regulators shift their licensing systems online, he adds, it’s vital to take the steps necessary to keep the information secure.
© 2015 Investment Executive. All rights reserved.