LOGiQ³ Corp. (LOGiQ³), provider of life insurance and reinsurance outsourcing and consulting services is currently working with key Canadian life insurance industry stakeholders to investigate an industry Advisor Screening, Contracting, and Monitoring Model.
The Canadian life insurance industry is a well regulated industry which tends to be described as principals-based. The industry works constructively with regulators and develops its own standards and practices that support the outcomes set out by the regulators. Independent advisors, distributors and carriers agree that this approach has served the industry and its consumers very well over the years. They also agree with the Canadian Council of Insurance Regulators’ Agencies’ Regulation Committee (ARC) that as distribution has changed from a career sales force driven model to one that is now predominately occupied by independent advisors using managing general agencies (MGAs) to access various carriers, that working together as an industry with our regulators and being progressive in adapting to change is valuable to all stakeholders.
Having seen the industry and regulators all agree that there is room for change and improvement, LOGiQ³ has been investigating a potential independent life advisor screening, contracting and compliance monitoring model. The model would provide independent advisors, MGAs and carriers with an industry standard service model that could provide more effective and efficient processes and at the same time address some of the recommendations from the recently released ARC position paper. A good number of MGAs, representing a significant share of the Canadian distribution market are key stakeholders who have been involved in helping LOGiQ³ investigate the feasibility and viability of this model along with a significant number of carriers. In addition to this, LOGiQ³ is providing briefings to and seeking input from the life insurance industry and advisor associations.
Industry standard approach
The model being investigated would allow an industry standard approach, identifying which parties are responsible for which functions and provide a verifiable and auditable process, addressing industry needs and some of the recent ARC paper recommendations. This investigative model would also provide economic benefit for all stakeholders today and into the future as the model matures. For carriers and distributors, the elimination of current duplication of processes should result in overall savings and deliver superior risk management results. While for advisors, the standardized approach will result in reduced disruption to their business, better service standards and a locked down, private and secure web page for them to keep all their professional practice information in one place and a place to receive and store valuable best practice information and education.
"LOGiQ³ is pleased to have key members of the industry involved in this investigation," says
LOGiQ³ anticipates the first gate of the investigation to be completed in the first quarter of 2013, and at that time the key parties will collectively decide with all stakeholders involved if the model is viable, meets the needs of the various stakeholders and will be implemented, or, if it needs more investigation, or, if the model needs to be completely revamped and reinitiated.