Insurers must raise taxation, exempt test concerns: CAILBA

Speakers at the 2013 CAILBA Annual Meeting say insurers must inform legislators about the potential negative consequences of changing the tax regime for insurance products.

Advisor.ca is live tweeting from the event. A sample:

9:34 AM: To deal with issues like fraud, we need to work with CARP and make clients aware they should know who they’re dealing with. Early detection of people who shouldn’t be in the business is also important. #CAILBA

9:29 AM: CRA took the lead on acting against strategies they were concerned with and now Finance is listening to them. Finance has a mandate to create revenue streams without raising taxes, so closing loopholes identified by CRA is a way to do that. #CAILBA

Read: 5 types of insurance fraud

9:23 AM: In the MGA review by CCIR, there was not a lot of initial understanding of what insurers, MGAs and advisors each did. #CAILBA

9:21 AM: We need to show them the value of financial advice to the households in the provinces and across the country. They’re stunned when we show them that we put billions of dollars into people’s pockets in their jurisdictions. #CAILBA

Read: Do client policies pass the exempt test?

9:10 AM: The environment in Ottawa has changed with the majority government. There is more appetite for change on the taxation front. We have more work right now on educating people in Finance and the CRA on the benefits of insurance products. Some turnover in the ministries has made it necessary to re-educate some of the people compiling policy and legislation. #CAILBA

Read: Paring insurance offering puts Canadians at risk

9:05 AM: CALU tries to identify MPs who have influence on taxation and other issues impacting the industry and provide information. This helps them with policy decisions that are important to how we do business. #CAILBA

Read: Canadian insurers will face hurdles in 2013

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.