In the fall of 2017, the provincial government of Quebec introduced two bills that could usher in major reforms for the local insurance industry.
Bills 141 and 150 would allow insurance firms operating in the province to offer products and services online – without the assistance of a broker or agent.
Clyde & Co reported that it is unclear whether the requirement will apply to all types of policies (whether they are property & casualty, life, and/or health policies). Regardless, the new rules will provide consumers the right to a 10-day grace period, during which they can cancel insurance policies contracted online.
The new rules would also levy stiffer demands on brokerage firms that deal with damage insurance. Firms will be required to offer policies from at least four different insurers, each belonging to different financial groups. If they cannot, they will have to show regulators that they made every effort to do so. Failure to accomplish this will force the firm to change its registration to that of an insurance agency.
Another change the new bills are proposing is that damage insurance agencies and brokerage firms will have to disclose the name of the insurers for whom they offer insurance products on their websites and in all communications with their clients.
The bills also allow group insurance for property & casualty policies.
The proposed legislative changes are expected to become law sometime around 2018.
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