Industry to respond to disclosure issues

In a press conference set for Friday, the Canadian p&c insurance industry is set to announce its plans for improving disclosure and transparency with consumers.In a joint event, representatives of the Insurance Bureau of Canada (IBC), Insurance Brokers Association of Canada (IBAC) and the Insurance Brokers Association of Ontario (IBAO) will announce plans which respond to recent controversy in the U.S. about the issue of broker compensation systems. Also in attendance will be State Farm senior vice president and IBC chair Bob Cooke, as well as The Dominion of Canada General Insurance Co. CEO George Cooke.IBAO and IBAC recently released responses to the issue of broker compensation, denouncing any form of bid-rigging, but insisting that compensation systems, including contingent commissions, are valid if proper disclosure is achieved.Several groups, including the Ontario Trial Lawyers Association, Consumers Association of Canada, and Ontario NDP MPP Peter Kormos, have called for investigation of compensation issues. The Financial Services Commission of Ontario (FSCO) is in the process of compiling a survey of insurers on compensation and other market conduct issues.