The Financial Services Regulatory Authority of Ontario (FSRA) has imposed conditions on ivari’s insurer licence.
The conditions to which Ivari consented include the establishment of an independent monitor to evaluate its compliance system.
The review will encompass the materials and selling practices of the managing general agencies that distribute ivari’s insurance products through agents hired and supervised by the MGAs. It aims to ensure that ivari has a robust system to guarantee that its agents adhere to regulatory requirements and FSRA guidelines.
Additionally, the monitor will determine if ivari has effectively resolved previously identified issues and fulfilled commitments made to FSRA.
“The insurance licence (licence #768) issued to ivari is hereby amended, on consent, to include conditions for the reasons set out in the Notice of Intent issued on May 30, 2024,” reads part of the regulator’s final order.
“FSRA is committed to protecting consumers and ensuring public confidence in the insurance sector,” stated Huston Loke (pictured), executive vice president of market conduct at FSRA.
“Insurers must have a system of compliance to reasonably ensure that all agents selling their products comply with the law regardless of the structure of their distribution system.”
In a separate development, MGA World Financial Group Insurance Agency of Canada (WFGIA Canada) recently agreed with the FSRA to form an independent supervision team aimed at assessing agent compliance.
The agreement was reached due to WFGIA Canada's shortcomings, including the lack of formal proactive agent reviews and direct agent monitoring.
Loke said at the time: “FSRA continues to take action to protect consumers and ensure public confidence in the insurance sector. These measures strengthen agent oversight and help to ensure agents are selling products that meet their customers’ needs.”
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