The next great battle for insurance brokerage was expected to take place in 2019 with the review of the Bank Act. But Bill C-74, which received Royal Assent last month, delayed this review until 2023. This means that the existing separation between banking and insurance has been maintained.
Last week, the Insurance Brokers Association of Canada (IBAC) praised Parliamentarians for this delay.
Safeguards interests of insurance consumers
“By upholding our position that insurance should not be sold at the point of granting credit, the government has demonstrated their commitment to consumer protection and safeguarded the interests of insurance consumers for the next five years,” said Peter Braid, IBAC CEO in a July 17 statement.
IBAC says that maintaining this separation continues to be necessary as the government prepares to develop regulations for the fintech sector. “The historical separation between banking and insurance must continue to be preserved. It will also be important to guard against unintended consequences that could weaken consumer protection and privacy,” said the association in its statement.
IBAC adds that it will continue to remain vigilant on fintech regulations and it will be keeping an eye on related issues such as open banking and privacy legislation.