Now that the Ontario Liberals have a majority government, they reportedly plan to re-table a budget in which they proposed to prohibit credit unions from promoting auto and home insurance online and to develop an office dedicated to investigating and prosecuting “serious fraud,” including fraudulent auto insurance claims.
Meanwhile, the provincial insurance brokers’ association is calling on Premier Kathleen Wynne to re-introduce legislation that would, among other things, allow only licenced health care providers to be paid directly by carriers for auto claims and to require towing firms to disclose any interest they have in auto repair or storage facilities….
…that measure would protect consumers “who are vulnerable at the point of lending from an obligation to purchase an important insurance product under duress,” the Insurance Brokers Association of Ontario (IBAO) said in a press release after the budget was tabled.
IBAO noted at the time that insurance products require “different competencies” than wealth management services. So forbidding credit unions from promoting home and auto coverage online would protect consumers “from cross-selling tactics from persons not properly trained to provide insurance advice,” IBAO stated at the time.
Greg Meckbach – Canadian Underwriter.ca – June 13, 2014.