The Financial Services Regulatory Authority of Ontario has launched a public consultation on a proposed rule to strengthen consumer protection and regulatory oversight of life and health insurance managing general agents (L&H MGAs). The proposal would set licensing and compliance expectations for firms that perform regulated L&H MGA activities and tighten requirements around agent supervision to support more consistent consumer outcomes. Building on recent amendments to Ontario’s Insurance Act that created a separate licensing class for L&H MGAs, the draft rule would establish clear licensing, compliance and agent oversight requirements for businesses involved in the sale of life and health insurance. It would also clarify the respective roles of L&H MGAs and insurers in supervising agents, enhance accountability, and introduce requirements for agents who work with L&H MGAs. FSRA frames the initiative as part of its six-point action plan to address troubling practices in the life and health insurance sector that are harming consumers. The consultation is open until March 31, 2025.
Financial Services Regulatory Authority of Ontario 2025-01-28
Financial Services Regulatory Authority of Ontario consults on proposed rule to license and strengthen oversight of life and health managing general agents
The Financial Services Regulatory Authority of Ontario has initiated a public consultation on a proposed rule to enhance consumer protection and regulatory oversight of life and health insurance managing general agents (L&H MGAs). The proposal outlines licensing, compliance, and agent supervision requirements, clarifying the roles of L&H MGAs and insurers. This initiative is part of FSRA's action plan to address harmful practices in the sector.