In order to address some of the emerging delivery models in Quebec auto insurance, the Autorité des marchés financiers (AMF) has released some new provisions outlining its stance on the online marketplace.
In it, the agency clarifies that agents and brokers should be accessible to consumers who wish to obtain coverage online, but no explicit consultation needs to be made before any purchase.
“The role of the AMF is to protect the public. However, it is not up to the AMF to dictate to
consumers the manner in which they should purchase insurance,” the AMF put forth in its April 2015 report Internet Insurance Offerings in Québec Presentation of Consultation Findings and Orientations.
The AMF justified its position by arguing that the Internet is too recent and transformative a development to be overseen as a standalone entity, but will fall under the same regulatory framework as traditional delivery modes when safeguarding consumers.
In addition, the AMF made such recommendations to online insurance vendors as:
- Insurance companies should provide detailed background materials regarding what they’re selling, who they’re targeting, and product options so consumers have adequate information when making purchasing decisions.
- Consumers have the option of canceling policies within a reasonable time period following a purchase
- All language should remain clear, straightforward, and succinct, so as to not purposely obfuscate internet users
- Companies should forbid advertisements on any web pages containing the online application
- A copy of the binding contract should be sent to the consumer either digitally or by paper, whichever the client prefers
“We present 11 guidelines that aim for a fair balance between orderly development of e-commerce in insurance and public protection,” AMF CEO Louis Morisset told
The Insurance and Investment Journal. “It is up to the government to decide whether regulatory amendments must be made to give these guidelines full effect.”
Many brokers have already expressed dismay over the report, as they hoped AMF would have been more diligent about setting firmer guidelines for online market regulation.
"Our position is that we need to have a certified representative involved in the transaction, not necessarily at the buying moment, but... in the few days before or after the transaction, there should be a certified representative involved in the transaction," Vincent Gaudreau, chair of Regroupement des cabinets de courtage d'assurance du Quebec (RCCAQ), told
Canadian Underwriter. "We (should not) just say, 'It was the website algorithm, there was nobody involved and it's a robot's fault.’"
