Insurance is a highly regulated industry and recently there’s been an increased focus on driving transparency in insurance sales and practices. We asked Nicole Benson, CEO for Valeyo her thoughts on what is driving this industry change and what financial institutions can do to support transparency in insurance sales for its staff and consumers.
Who or what is driving industry changes around transparency in sales?
Given the pace of change we have seen over the last several years in the financial services industry – with the advancements in technology, artificial intelligence, and the sharing and access to information – I believe a number of forces have influenced this change, key amongst them a change in expectations from consumers and regulators.
Consumers have grown to expect value, choice, flexibility and a superior service experience whilst regulators have increased their expectations aimed at fostering high standards of responsible and professional conduct in the interests of financial consumers as well as strengthening public trust and consumer confidence in our industry.
How can institutions respond to regulatory changes?
Institutions can start by placing the interest of the consumer at the centre of all business decisions and work within their own organization and with their core providers to set out requirements and expectations that help to establish trust in the market place by ensuring the fair treatment of every consumer.
As an organization that works with financial institutions across Canada, Valeyo has a vested interest in the financial wellbeing of our client’s and their consumers as well as a shared sense of responsibility to support transparency, ethics and compliance in the way we conduct our business.
Our Insurance Compliance Program, for example, was developed to help our clients meet and surpass the industry set regulatory requirements and is just one example of the programs we are developing to proactively address the risk of unfair, deceptive or abusive acts or practices, by taking measures to prevent, detect, and remediate issues that might arise. Customers must be empowered to understand the products being offered, the value and their choice to purchase.
How will the end consumer benefit from strong regulations and oversight?
Regulations give consumers a voice and they hold financial institutions accountable to delivering a broader range of solutions with transparency. This presents greater opportunity for everyone. At the end of the day, we are all consumers and we should all want to be empowered to understand our choices.
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