Canadian regulators seek input to new guidance for incentive arrangements in the sale of insurance products

Published March 3, 2022

The Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) – the two national organizations for Canadian insurance regulators – are seeking input for the development of its proposed Incentive Management Guidance. The guidance sets out expectations for insurers and intermediaries that pay compensation and/or design incentive arrangements related to the sales and servicing of insurance products.

The Incentive Management Guidance is intended to complement CCIR-CISRO’s Guidance: Conduct of Insurance Business and Fair Treatment of Customers (FTC Guidance). The proposed guidance aims to ensure incentive arrangements align with the principles in the FTC Guidance and support fair customer outcomes by providing direction in devising strategies, policies and controls for pay compensation in the sale of insurance products.

Following the publication of the FTC Guidance in 2018, CCIR and CISRO met with insurers and intermediaries on its implementation. The result of the meetings called for further direction by stakeholders and questioned some incentive practices that may pose a risk to consumer protection. In response, CCIR and CISRO developed the Incentive Management Guidance to address the issues presented in these stakeholder meetings.

If you are interested in providing feedback to the Incentive Management Guidance, email your comments to by April 4, 2022.

For more information, visit the CCIR website or CISRO website.