Canadian Insurer Group To Post Broker Fees On Web

By Michael Ha

NU Online News Service, Nov. 15, 3:30 p.m.EST?Reacting to the U.S. brokerage-insurer fee scandal,Canada's largest property-casualty insurers group has produced avoluntary system so members can offer greater clarity about feesthey pay brokers.[@@]

The Insurance Bureau of Canada?which boasts more than 200 membercompanies representing 90 percent of the non-government home, carand business insurance in Canada?announced that under the new plan,its association members would disclose on their Web sites variousdata concerning their broker compensation schemes.

Specifically, the member companies would make public on theirWeb sites by Jan. 1, 2005, information concerning the way theirsales intermediaries?including agents, brokers and other companysales staff?are paid.

Such data would reveal whether these intermediaries have beenpaid a salary and also show the range of potential contingentcompensation available to intermediaries that work for a giveninsurer. Other information concerning company-ownership links ofbrokerages and financing links will also be made public, theassociation said.

This disclosure plan would initially apply in Ontario, "and wewill be approaching all provincial ministers in charge ofinsurance," according to Insurance Bureau of Canada Chief ExecutiveStan Griffin.

"We recognize the need for clarity to help consumers makeinformed and confident choices when they buy insurance," said Mr.Griffin. "Regulators have always had the responsibility ofcollecting information on how insurance representatives are paid.Today's initiatives will put this information directly into thehands of consumers," he said.