Registered insurance brokers offer independent advice and Property & Casualty (P&C) insurance products from a variety of companies. Brokers must be licensed by the Registered Insurance Brokers of Ontario (RIBO). All RIBO licensees must carry an errors & omissions policy, as well as a fidelity bond, which is designed to provide customers coverage in the unlikely event that a broker mishandles their premiums. RIBO licensees are required to follow the RIBO Code of Conduct, which establishes rules and standard of professional conduct.
As a customer, you have the right to professional advice from a broker who is well informed about the products they are selling. You have the right to be treated with fairness and integrity.
How Insurance Works – You have the right to be informed about how your insurance premiums are calculated. You have the right to access your policy and be clearly informed about the coverage and the claims settlement process.
Broker Compensation – You have the right to ask how a broker is paid, the insurance companies they represent, and be informed about any potential conflicts of interest the broker may have. All RIBO licensed brokers must disclose commission information at the point of sale which outlines how they are paid.
Understand Your Insurance Needs – You should consider your insurance needs and prepare relevant questions before you talk to a broker. Ask yourself if there have been changes in your personal or business life that could impact your insurance needs. Make sure you provide a detailed and accurate explanation of your circumstances to your broker so they can provide informed recommendations that meet your needs.
Insurance Quotes – When obtaining a quote, your broker should always present the best value products available based on your current needs, and document why certain coverage and product options, including lower cost options, which may or may not be appropriate for you. Brokers are also expected to comply with the Take-All-Comers rule. For more information on buying auto insurance and the Take-All-Comers rule, visit here
Personal Information – You have the right to understand how your personal information is used and protected. Ask for a copy of the privacy statement from your broker and the insurer.
Customer Obligations – You need to ensure that you know and understand your obligations under your insurance policy. For example, your policy will require you to provide updates to your broker and insurer regarding any material changes in your circumstances.
Insurance Claims – If you need to file a claim, you have the right to be informed about the procedures and typical timelines for settling your claim, and you may inquire about the status of your claim throughout the process. If your claim is denied, you have the right to an explanation as to why it was denied. Your broker is your advocate as you work through your claim with the insurance company and will liaise as required.
Making a Complaint – You can submit a complaint to RIBO if you believe your insurance broker failed to comply with the Registered Insurance Brokers Act, its regulations, or RIBO by-laws. File a complaint here
OmbudServices – In the event you have an insurance claim, your broker will provide you with information about the insurer’s claims process. For any unresolved disputes with an insurer, you may contact the insurer’s Ombudsman, who will attempt to resolve the conflict. If the conflict is not resolved, you will be referred to the General Insurance OmbudServices for P&C insurance.
Convincing someone that they could have more coverage than they do now – often for less money – should be a slam dunk. Right? That’s exactly what personal umbrella policies offer. So why aren’t they more popular? Let’s break it down and review tips for how to talk to your clients about the importance of personal umbrella coverage.
The definition
A personal umbrella policy provides additional coverage when a client’s base liability coverage is exhausted. It covers legal fees and loss of income associated with liability claims – even for incidents that occur outside of Canada.
The challenge
Coverage that protects property is an easy concept for clients to buy into. It’s straightforward to understand and is often mandatory. The need becomes less clear when it comes to coverage that protects against legal action.
Many clients associate liability with businesses or high-income earners. The reality is that most of us are targets for legal recourse, even when going about our regular, low-risk lives. Pet owners, social media users, people who do volunteer work… wealthy or not, these people are all vulnerable.
Trends suggest that Canadians are becoming more litigious, and court cases are resulting in larger payouts. And while lawsuits don’t directly result in the loss of the ‘things and stuff’ protected by standard personal insurance policies, people could indirectly lose assets if they need to come up with the cost of an unexpected settlement.
Finally, when you consider the modern hazards that impact our safety (e.g. texting while driving), it’s hard not to appreciate how unpredictable an everyday task can be – or how far a resulting lawsuit can go.
Start with a conversation
Get to know your clients. Sincere engagement does wonders for customer loyalty, and it has the side effect of revealing important insights. For example, do they:
•Have children?
•Have hobbies?
•Do volunteer work?
•Travel frequently?
•Own rental properties?
•Use social media?
Clients who answer ‘yes’ to any of these questions are candidates for personal umbrella coverage. What’s holding them back? Awareness is a major factor. But once you resolve that…
Overcome the “it won’t happen to me” mentality
There’s a misconception that court battles are the stuff of TV dramas. In many people’s minds, their ‘boring lives’ are enough protection. Here are four relatable scenarios to share with your clients to demonstrate how a personal umbrella policy could save the day:
1.Social Media. Personal umbrella coverage protects against libel, slander and breach of privacy. The level of confidence internet users feel when posting from ‘behind the keyboard’ makes it too easy to broadcast messages to hundreds or thousands of people. All it takes is one person to retaliate; whether it’s the proprietor of a restaurant who receives a defaming review, or the parent of a child whose photos are shared.
2.Teenagers. They’re maturing and finding their independence, which is exciting for parents to see. What can be concerning is the fact that they don’t fully understand the scope and potential impact of their behaviour. And if a dependent is responsible for a damaging action or breach of privacy, the parent may be responsible.
3.Mandatory or not, auto accidents are so common that it’s undeniably smart to have this coverage. But base policy limits are relatively low considering the potential damages. When someone is at fault for a collision involving multiple vehicles – especially if any of the victims experience loss of future income or require long-term care – their standard coverage gets eaten up quickly.
4.Hosting events. Small get-togethers involving close friends and family appear low-risk at first glance. However, unpredictability increases when you add variables like alcohol, pets, or small children. We hope our loved ones wouldn’t sue, but in cases where compensation is needed, the decision to pursue legal action becomes less personal and more about necessity.
A personal umbrella policy is often more affordable than increasing liability on each individual base policy, and it protects the actions of your clients and their families wherever they are in the world. As sensibly as we might go about our lives, we are all subject to the unpredictability of other people’s actions.
The bottom line for your clients; our world is evolving, so the way we protect ourselves must change too.
Ontario approves electronic proof of auto insurance Canadian Underwriter Ontario approves electronic proof of auto insurance
Ontario’s Minister of Finance, Rod Phillips (centre), announces the approval of electronic pink slips in Ontario
The approval, announced Thursday morning by Ontario’s Minister of Finance, Rod Phillips, follows the lead of Alberta, Newfoundland and Labrador and Nova Scotia. Nova Scotia was the first province to approve electronic pink slips in January 2018, followed by Newfoundland and Labrador in July 2019 and Alberta last month.
Speaking at a press conference at a CAA South Central Ontario store in Markham, Phillips said there will be a one-year phase-in period, during which time insurers will continue to issue paper versions as well as electronic versions for customers that request that option.
“This period will also [allow] consumers, regulators, insurers and law enforcement – all groups that we’ve consulted with extensively on this – [to] see if there are any changes that are necessary to make this program better,” Phillips said during the press conference. “Rummaging through your [glove compartment] for your little pink slip is not something that should be necessary in 2019.”
The electronic pink slips in Ontario will feature “sophisticated safeguards,” Phillips said. “They can’t be edited or altered. Features cannot be included to enable anyone to track your location or collect, use or disclose your data without explicit permission from you.”
The approval of electronic pink slips in Ontario was a long time coming.
As early as December 2015, Fasken Martineau DuMoulin LLP and the Centre for Study of Insurance Operations (CSIO) advocated for EPAI in the eSlips Advisory Report: E-Delivery of Motor Vehicle Insurance Cards. In the wake of that report, the Canadian Council of Insurance Regulators launched consultations in the spring and summer of 2016 regarding the adoption of EPAI.
In the interim, some brokers were already offering versions of EPAI, even though Ontario had not yet created a regulatory framework for them. CSIO had an industry-based solution ready to launch in June 2017.
After Nova Scotia approved EPAI in January 2018, Canadian Underwriter approached the provincial regulator – the Financial Services Commission of Ontario, and now the Financial Services Regulatory Authority of Ontario – for regular updates on the EPAI file. When last contacted in early August, FSRA said that it was continuing “to work with the government and stakeholders to enable the use of electronic pink cards for consumers. We have no further updates at this time.”
Ontario’s budget in April 2019 indicated that it would bring EPAI to Ontario drivers and allow for “more competition in the auto insurance market.” Earlier this year, the government commissioned a poll of Ontarians about ways to make auto insurance more accessible, more affordable and more convenient, Phillips said. Fifty-one thousand people provided comments, including 68% who said that they believe insurers needed to provide them with more options in terms of online and digital tools.
Ontario has become the fourth province in Canada to approve the use of electronic proof of auto insurance (EPAI) for drivers, effective immediately.
Phillips said the government needed to work with insurers, consumer groups such as CAA, law enforcement, and officials and experts in privacy. It also consulted with the other provinces that approved EPAI. “It took us that time to make sure it would be done right.”
Insurance Bureau of Canada welcomed the news. “Being able to provide digital documents to today’s tech-savvy consumer is a baseline expectation of service we are thrilled to now be able to provide,” Kim Donaldson, vice president of IBC’s Ontario region, said in a press release. Most U.S. states also allow digital proof of insurance, “and we anticipate more provinces will follow suit in the near future.”
Canada’s largest insurer, Intact, announced Thursday an enhanced digital proof of insurance (pink card) on the Intact Insurance and belairdirect apps. The digital pink card can be used in Quebec, Alberta, Newfoundland and Labrador, and Nova Scotia, and “in Ontario following review of the regulations released today,” Intact said.
Aviva Canada, Canada’s second-largest insurer, applauded the government’s decision to approve the use of electronic pink slips and talked of moving onto the next phase. “We continue to meet with other governments and regulators in order to advance eSlips approval in their provinces,” said Phil Gibson, managing director of personal insurance at Aviva Canada.
“Offering a paperless option is the next step in modernizing the auto insurance industry and a move welcomed by CAA and its members,” said Matthew Turack, president of CAA Insurance. “In a recent survey conducted for CAA Insurance, nearly two-thirds of respondents expressed interest in having access to electronic proof of their auto insurance coverage.”
Added CSIO president and CEO Catherine Smola: “The recent announcement of the Ontario government’s decision to approve the use of eSlips is what consumers have been waiting for and we are thrilled with this news. The benefits of eSlips are tremendous and now carriers and brokers can give their customers the experience they expect, allowing them to access their proof of insurance on their phones, anywhere, anytime.”
