The New Guidance Lesson1

This course has been created using the document Guidance: Conduct of Insurance Business and Fair Treatment of Customers issued by the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO).

The New Guidance: Lesson 1 addresses the creation of the Guidance document, its purpose and scope, as well as an explanation of the document’s impact on five key areas of the industry’s activity. The course includes quizzes that allow participants to assess their understanding of the course material.

Course Content

Includes the following topics:
Definitions of terminology used in the Guidance document
The issuing organizations (CCIR and CCRRA)
The purpose and origins of the Guidance document
Scope of the expectations
Implications for conduct of business
Implications for fair treatment of customers
Implications for business culture
Implications for relationships between Insurers and Intermediaries
Implications for relationships with Regulatory Authorities

Learning Objectives

Successful participants of the course will:

Understand the purpose and scope of the Guidance document
Be familiar with the nature and history of the organizations that created it
Be able to explain the way the conduct of insurance business is supervised
Know the importance of acting in compliance with the laws, regulations and guidelines to which representatives are subject
Know what constitute regulatory obligations of representatives
Know the function and scope of the role of intermediaries
Understand the importance of providing Customers with timely, clear and adequate information
Know the particular meaning of terms used in the Guidance document
Know what constitutes acting with due skill, care and diligence
Be acquainted with the risks that could result in unfair treatment of the client
Be able to describe the expectations for relationships with regulators
Understand the importance of protecting the privacy of Customer information
Possess the vocabulary, the understanding and the knowledge-base for explaining and discussing the issues around the Guidance document on the Conduct of Insurance Business and Fair Treatment of Customers.

The New Guidance Lesson 2

This is the second section of The New Guidance Course which deals with the joint release by the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) concerning the conduct of insurance business and fair treatment of customers. Part 1 of the course dealt with the creation of the document, its purpose and scope, as well as aspects of the insurance business discussed in the document.

Lesson of the course deals with the Customer Outcomes the industry hopes to achieve, as well as the specific attitudes and practices on the part of industry representatives which will accomplish these goals. There are twelve distinct outcomes articulated and for each of these outcomes there are behaviors which can be observed and monitored.

There are quizzes provided which will assist participants in checking their understanding of the material.

Course Content:

Topics covered in the course include the following areas of customer outcomes and the expectations for the conduct of representatives in each:

Governance and Business Culture
Conflicts of Interest
Outsourcing
Design of Insurance Product
Distribution Strategies
Disclosure to Customer
Product Promotion
Advice
Disclosure to Policyholder
Claims Handling and Settlement
Complaints Handling and Dispute Resolution
Protection of Personal Information

Learning Objectives:

Successful participants of the course will:

Understand that overall responsibility for fair treatment of Customers is at the level of the board and/or senior management, who design, approve, implement and monitor adherence to policies and procedures aimed at ensuring that Customers are treated fairly.
See the importance of relevant staff being trained to deliver appropriate outcomes in terms of fair treatment of Customers.
Be aware of the role played by remuneration, reward strategies and evaluation in achieving fair treatment of Customers.
Know the areas of risk for potential conflicts of interest as Intermediaries interact with both Customers and Insurers
Understand issues around responsibility and monitoring of outsourcing
Gain a heightened sense of the factors at play in relationships between Insurers and Intermediaries
Become knowledgeable about the ethical issues around product design
Understand the importance of representatives having adequate product knowledge in order to enable customers to make an informed decision about the proposed product.
Be clear about the limitations and responsibilities around providing various types of “advice” to customers
Be knowledgeable about issues surrounding disclosure of information in terms of changes in the policy or the customer’s needs.
Be aware of the expectations for representatives to handle claims settlement according to all the best practices listed in the guidance document with regard to fair treatment of customers
Be knowledgeable about the expectations for representatives in their handling of complaints and dispute resolution
Be familiar with the Guidance document’s creation and purpose.
Possess the vocabulary, the understanding and the knowledge-base for explaining and discussing the issues addressed in the Guidance document.