Report concerning the sale of insurance products by dealers

MONTRÉAL, June 3, 2020 /CNW Telbec/ - The Autorité des marchés financiers (AMF) today published the 2016–2018 Insurer Disclosure Analysis Report – The offering of insurance products by automobile and recreational and leisure vehicle dealers in Québec.  Using the picture of practices provided by this report, the AMF will, over the coming months, be able to measure the effects of new actions aimed at enhancing existing commercial practices in this market.


The data collected by the AMF exposed four main issues related to commercial practices:

  • Concerning levels of remuneration for the distribution network
  • Limited added value for consumers in the case of Q.P.F. No. 5 products owing to the high price paid in the dealer distribution network
  • A high claim denial rate for debtor life, health and employment (DLHE) insurance products
  • Issues related to the premium refund in the event of policy cancellation

"The AMF has undertaken efforts in recent years to bring this sector into line, including publishing multiple notices, establishing a round table and imposing penalties on specific dealers and an insurance firm," said AMF President and CEO Louis Morisset. "Based on the data collected by the AMF, those efforts have not yielded the desired results. Now that it has a more accurate picture of the market, the AMF is going to continue to strengthen its actions to correct persistent improper practices."

Actions to be taken

Planned actions will focus on four objectives:

  • Offer consumers, through dealers, products that have a similar added value to that of comparable products currently offered through the traditional distribution network
  • Require remuneration practices that promote the fair treatment of consumers
  • Pursue initiatives to educate and improve disclosures to consumers
  • Have an effective deterrence effect with respect to improper sales practices

The AMF will continue to closely monitor the market for insurance products offered by dealers. Annually collected data will be analyzed in order to track developments in this market.

A reminder to consumers

The AMF wishes to remind consumers that: 

  • They should always take the time to shop around for insurance products and check whether they are not already covered
  • They are under no obligation to purchase an insurance product offered by a dealer

The Autorité des marchés financiers is the regulatory and oversight body for Québec's financial sector.


Media only: 
Sylvain Théberge: 514-940-2176

Information Centre: 
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337

Twitter: @lautorite
Linkedln: Autorité des marchés financiers (Québec)

Report concerning the sale of insurance products by dealers (CNW Group/Autorité des marchés financiers)


Cision View original content to download multimedia: