Canadian Insurer Group To Post Broker Fees On Web
By Michael Ha
NU Online News Service, Nov. 15, 3:30 p.m. EST?Reacting to the U.S. brokerage-insurer fee scandal, Canada's largest property-casualty insurers group has produced a voluntary system so members can offer greater clarity about fees they pay brokers.[@@]
The Insurance Bureau of Canada?which boasts more than 200 member companies representing 90 percent of the non-government home, car and business insurance in Canada?announced that under the new plan, its association members would disclose on their Web sites various data concerning their broker compensation schemes.
Specifically, the member companies would make public on their Web sites by Jan. 1, 2005, information concerning the way their sales intermediaries?including agents, brokers and other company sales staff?are paid.
Such data would reveal whether these intermediaries have been paid a salary and also show the range of potential contingent compensation available to intermediaries that work for a given insurer. Other information concerning company-ownership links of brokerages and financing links will also be made public, the association said.
This disclosure plan would initially apply in Ontario, "and we will be approaching all provincial ministers in charge of insurance," according to Insurance Bureau of Canada Chief Executive Stan Griffin.
"We recognize the need for clarity to help consumers make informed and confident choices when they buy insurance," said Mr. Griffin. "Regulators have always had the responsibility of collecting information on how insurance representatives are paid. Today's initiatives will put this information directly into the hands of consumers," he said.
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