Bill 216 was passed by the Government of Ontario on November 6th, 2024. Once proclaimed in force, Life and Accident & Health Insurance Managing General Agencies in Ontario will need to:
Obtain a separate license: Issued by the Financial Services Regulatory Authority of Ontario (FSRA).
Elevate compliance standards: Establishing robust compliance systems, appointing designated compliance representatives, and adhering to rigorous record-keeping and reporting requirements.
Insurers will also face additional obligations:
Notify FSRA promptly: Informing the regulator within 30 days of entering into or terminating MGA agreements.
Strengthen compliance systems: Ensuring that MGAs they partner with adhere to regulatory standards.
Preparation for these significant changes and layered oversight obligations will help smooth the transition, while also avoiding gaps, overlaps and unnecessary costs. Preparations should include:
Clarifying accountabilities: by re-defining roles and responsibilities within the MGA-insurer relationships, to meet expectations, while avoiding gaps or overlaps.
Reviewing contracts and policies: and identifying updates necessary to align with the new requirements.
Appointing a compliance representative: to provide adequate oversight and the development of a compliance program, ensuring adherence to regulatory requirements.
Ethidex offers software and regulatory content (including for MGAs) to support Regulatory Compliance Management. Ethidex also offers consulting support and can assist with changes to Frameworks, Policies and Compliance Programs.
If you would like to discuss further how we might help, please reach out.
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