👉The Financial Services Regulatory Authority (FSRA) of Ontario, Canada has proposed new conditions for Managing General Agencies (MGAs) that distribute life insurance products. According to information, the proposed conditions include stricter oversight and supervision of MGAs by insurance carriers, as well as enhanced reporting and compliance requirements.
The use of MGAs in the distribution of life insurance products has grown significantly in recent years, with MGAs representing approximately 20% of the market in 2020. The proposed conditions by the FSRA would therefore have a significant impact on the industry, particularly on the operations of MGAs and the brokers they work with.
Also cites data from a report by the Canadian Life and Health Insurance Association (CLHIA), which states that the life and health insurance industry in Ontario represents approximately 45% of the total premiums written in Canada, with premiums totaling $36.5 billion in 2020. The report also notes that the COVID-19 pandemic has had a significant impact on the industry, with claims related to the virus totaling $3.9 billion across Canada in 2020.
The proposed conditions by the FSRA are intended to promote greater consumer protection and market stability in the life insurance industry. The proposal is currently open for public comment, and if approved, would take effect in early 2024.✅
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