"If the insurance industry wants to find out why it has lost the trust and respect of consumers it should read the investigative report just released by Quebec’s insurance regulator,” said Mr. Bruce Cran, President of the Consumers Association of Canada. This report by Quebec’s Autorite des Marches Financiers agency has found clear evidence of commercial practises in that province that are not in the interests of consumers.

“The agency’s report is nothing short of startling,” said Mr. Cran. It reports insurance industry practises such as block transfers of insurance policies from one insurer to another. In these cases consumers are treated like cattle sold to the highest bidder at auction. Why? The motivation is not always lower costs or better services for consumers but financial benefit for brokers,” said Mr. Cran.

In Quebec many brokers are so financially tied to insurance companies that the agency is planning on banning certain practises because of the financial harm these practises do to consumers. “In Quebec, the majority of insurers currently pay secret commissions and few brokers provide open disclosure to consumers,” said Mr. Cran.

“The good news for Quebec consumers is that they have the benefit of a regulator who has formally investigated the insurance industry and soon will be taking strong action to protect consumers from industry practises,” said Mr. Cran.

“Meanwhile in Ontario and Alberta it's business as usual with no action from the regulators to protect consumers from the same industry practises that will soon be banned in Quebec,” said Mr. Cran. "The practises of this industry over the last few years have resulted in massive record profits while negatively impacting hundreds of thousands of Canadian consumers," said Mr. Cran.

For further information: Mr. Bruce Cran, President
Consumers' Association of Canada, Tel. (613) 291-7999