Managing conflict of interest
Provincial insurance regulators have endorsed three principles for managing actual or potential conflicts of interest. These principles promote consumer confidence in the insurance industry by outlining best practices for managing these situations when they arise. They are:
- Priority of the client’s interest. To achieve this principle, the agent or broker must place the interests of policyholders and prospective purchasers of insurance ahead of his or her own interests.
- Disclosure of conflicts or potential conflicts of interest. To achieve this principle, consumers must receive disclosure of any actual or potential conflict of interest that is associated with a transaction or recommendation.
- Product suitability. To achieve this principle, the recommended product must be suitable for the needs of the consumer.
Our company has adopted a Code of Business Conduct for Brokers and Agents as well as a Code of Business Conduct for Employees and Directors which provide further details as to what is expected to better achieve the principles. Each year, our brokers, agents, employees and directors reiterate their commitment to comply with the Code. Further, the regulators assess the implementation of these principles by insurers.
If you feel that our representatives are not following the principles mentioned above, please let us know.