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A regulatory framework that would allow the sale of insurance products online in Quebec will officially come into effect next year.
Bill 141 is an act that amends several financial sector laws; chief among the changes is a framework that would allow the purchase of home and/or auto insurance online without the aid of a broker or agent.
According to Article 741 of Bill 141, the regulatory changes will come into effect June 13, 2019 – at around the same time as the new Act respecting insurers. Additionally, new brokerage provisions – which include a requirement for brokerages to have distribution agreements with at least three different insurers – will come into effect December 2019.
In the months leading up to the implementation of the regulation, the Autorité des marchés financiers (AMF) was tasked with setting up the foundations of the framework.
AMF has told The Insurance and Investment Journal that in order to establish the regulatory framework without issue, it would hold a consultation on the matter; further details regarding the consultation will be revealed during the fall.
Some brokers have raised concerns that allowing people to purchase insurance online without professional guidance could leave consumers vulnerable to exploitation.
AMF president and CEO Louis Morisset, in an earlier statement, offered assurances that consumers will be properly guided by a representative throughout the purchasing process.
“ … Only a certified representative will be able to accompany the consumer in the buying process [if the consumer requests an agent’s assistance during the process],” Morisset said. “It is, therefore, simply wrong to claim, as some people continue to do, that anyone can now advise Quebec consumers in the insurance sales process.”
