Life insurance industry shake up in works

LOGiQ³ Corp. is currently working with key Canadian life insurance industry stakeholders to devise an industry standard model for advisor screening, contracting, and compliance monitoring.

It would address some of the recommendations from a recently released Canadian Council of Insurance Regulators’ Agencies’ Regulation Committee (ARC) position paper.

Read: MGA regulation covers basic issues at consumer level

The model would identify which parties are responsible for which functions and provide a verifiable and auditable process. For carriers and distributors, the elimination of current duplication of processes should result in overall savings and deliver superior risk management results.

Read: Insurance regulators spotlight suitability

For advisors, the standardized approach will result in reduced disruption to their business, better service standards and a locked down, private and secure web page for them to keep all their professional practice information in one place and a place to receive and store valuable best practice information and education.

Read: Tighter regulation for insurance?

UPDATE

In April 2013, LOGiQ³ Corp. announced the commitment of a key group of MGAs to investigate the initiative’s feasibility.

On January 16, 2014, LOGiQ³ announced the receipt of signed letters of intent from four key life insurance carriers, The Canada Life Assurance Company, Industrial Alliance, Manulife Financial, and Sun Life Assurance Company of Canada, as commitment in supporting the build of this industry service model project by LOGiQ³.

LOGiQ³ has also tapped BlueSun, a leading provider of business solutions to insurance and investment brokers in North America, as their preferred technology partner in delivering this new contracting and monitoring system for advisors, distributors, and carriers.

The next phase of the project is set to begin this month. It includes: project launch, project scope and governance, approach, timelines and project culture. For more details, click here.

Read: Tax problems with cross-border life insurance

Staff

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