As I commence my fourth year as a voting member of Council, I am looking forward to the opportunity of serving as its Chair.
I commence my term at a time when all sectors of the insurance industry, life, general and adjusters, continue to demonstrate a high level of professionalism. The introduction of a continuous licensing model in British Columbia has demonstrated that insurance licensees are capable of operating in a regulatory model that places the responsibility on licensees to manage their regulatory filings in accordance with Council Rules. The success of the continuous licensing model has resulted in reduced regulation for licensees and this has allowed Council to streamline its administrative processes and reduce operating costs, which have been passed on to licensees through reductions in filing fees.
Council continues to focus on providing direction to the industry on issues relating to the usual practice of the business of insurance. A recent example is the publication of Council’s Notice ICN 11-003, Duties and Responsibilities of Life Insurance Agents Involved in the Sale of Exempt Market Securities. Council had encountered consumer complaints and determined that an increasing number of life insurance agents were becoming involved in the marketing of exempt market securities. Council took the opportunity to provide guidance to the industry when involved in the sale of these products.
Council is completing its review on proposed changes to the regulatory model involving the licensing of persons involved in the distribution of life insurance products. Council published a discussion paper in October 2010, addressing the supervision of new life insurance agents and the role that managing general agents (“MGA”) play in the distribution of life insurance products. After reviewing the industry feedback, we are currently finalizing our recommendations. On the important issue involving MGAs, I believe the direction Council is taking in developing appropriate guidelines for MGAs reflects our efforts to understand the role and business conducted by MGAs, while providing the industry with a clear understanding of Council’s expectations.
In the coming year, Council plans to develop education program(s) to address the growing number of licence applicants who are involved in the incidental sale of insurance in conjunction with other business activities. Currently, Council’s educational requirements are designed to provide training for a specific class of insurance and these are not always practical when a person is selling only one specific product. Where appropriate, Council will look at developing specific educational courses or programs that will ensure persons involved in the incidental sale of insurance receive appropriate training before being licensed.
I want to take this opportunity to acknowledge the departure of three Council members, Graham Calder, Tejinder Grewal and Colin Thompson. All three have completed their six year terms and their contributions to Council are much appreciated. Graham also served as a Council Executive, including one year as Chair. Both Graham and Tejinder had the additional challenge of having to travel to Vancouver to attend monthly meetings, hearings and other Council events.
Tejinder served six years on Council as a lay person representative and brought great insight into issues being considered by Council. Council is pleased to welcome his replacement, Dr. Eric Yung.
In closing, thanks in part to its staff, Council has built a strong organization. Of its 26 staff, 11 have more than ten years of experience and three have more than 20 years of experience. Both Council and the industry benefit from the knowledge developed by our staff and it is through their hard work that we strive to provide quality service to our stakeholders.
Council is always looking at ways to improve upon its services, and we are always interested in feedback on the quality of our service and products. I invite anyone to contact me should they have any issues, comments or opinions on a decision that Council has made or any service or product that we have provided.
Daniel Swanlund, B.Comm., CFP
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