The Canadian Life and Health Insurance Association will be holding information sessions in the coming weeks about its new guideline for disclosing compensation to intermediaries involved in group benefits and retirement services.
The sessions will launch on Jan. 31 in Vaughan, Ont., and continue in Quebec City (Feb. 1), Montreal (Feb. 2), Vancouver (Feb. 6), Calgary (Feb. 8), Winnipeg (Feb. 9) and Halifax (Feb. 14).
The guideline will be of particular interest to plan advisors. Under the guideline, insurers will disclose to plan sponsors all direct, indirect and in-kind forms of compensation paid to intermediaries through a written report. Insurers will provide the disclosure at least annually. For new contracts, they’ll provide the report on or before the effective date.
The association is phasing in the new approach, starting with disclosure of new sales as of July 1, 2018. For renewal business, insurers will start tracking ongoing compensation on Jan. 1, 2019, with disclosure beginning on Jan. 1, 2020.
The CLHIA says it’s taking the action in response to changing expectations of plan sponsors, regulators and other stakeholders, including when it comes to transparency around compensation in group benefits and retirement services and being proactive about market conduct risks. The association expects all of its members to conform to the guideline.