Canadian Life And Health Insurance Guideline

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Guidelines
Recently, the Canadian Life and Health Insurance Association (CLHIA) released a new guideline concerning compensation disclosure. The proposed guideline sets out new standards when it comes to disclosing the compensation paid to intermediaries in group benefits and retirement services.

The guideline has been met with mixed reviews, particularly from insurance brokers and other intermediaries in the benefits industry. Many wonder why the guideline is necessary. Many have suggested disclosure of compensation itself is unnecessary since other industries don’t need to.

The guidelines, if adopted, could have big impacts on the insurance industry. How does it affect you as an employer offering benefits to your employees?
How Much Do …show more content…

Some, however, have noted the level of legislation worldwide. The CLHIA’s new guideline is an attempt to get out in front of the government and potential regulation in the Canadian provinces. Many feel regulation is on its way. Some want to push the government there.

It’s easy to see why disclosure is such a contentious issue. How would you feel if someone asked you how much you made? Some also note consumers are used to this level of silence. After all, you don’t get a note indicating how much a manufacturer made when you purchase their product.
Commission and Kickback Concerns
Others feel it’s important to be perfectly transparent with clients. Many consumers are now pushing back against hidden fees in the financial world, particularly in investments. It’s an open secret investment advisors are taking a cut of clients’ earnings. The question now is how big the cut is.

The same kind of thinking is affecting the insurance industry. People are curious as to how much their brokers are actually receiving when they sign them up for a particular insurance policy or benefits package. It’s something of an open secret some brokers get kickbacks when signing you up with a particular company or

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