CCIR And CISRO Release Proposed Incentives Management Guidance

On February 17, 2022, the Canadian Council of Insurance Regulators ("CCIR") and the Canadian Insurance Services Regulatory Organizations ("CISRO")  released proposed guidance ("Draft Guidance") on compensation and incentive arrangements that are linked to the sale and servicing of insurance products. The Draft Guidance, which applies to insurers and intermediaries, complements and supplements the  Fair Treatment of Customers Guidance ("FTC Guidance") issued in by CCIR and CISRO in 2018 and is similar to  draft guidance issued by Québec's AMF in November 2021. (For more information, see our commentaries on  the FTC Guidance and  the AMF's draft guidance.)

The Draft Guidance reflects CCIR/CISRO consultations with insurers and intermediaries, respecting incentives, since the release of the FTC Guidance. It is open for public comment until April 4, 2022.