Finance Ministry drafting rules for bank Internet sales

The federal government is looking for ways to strike a balance between insurers and banks over the sale of insurance products on the Internet.
Finance Minister Jim Flaherty told a meeting of life insurance professionals at the Advocis conference in Toronto that he is drafting rules to support a level playing field.
“We’ve had some very good discussions between my departmental officials and banks and the insurance brokers to try to figure out where one draws the line,” he told reporters after a speech.
“I suspect that soon, we’ll be able to announce where we draw the line.”
Last fall the government urged the banks to stop promoting insurance on the Internet. Mr. Flaherty said at the time he hoped banks would change their website offerings voluntarily.
Lorne Perry, president of the Insurance Brokers Association of B.C., said brokers thought the line was drawn last October when the minister warned banks not to sell insurance through their websites.
Brokers’ associations have been hearing of strong opposition from banks to the website ban — and stepped-up pressure from the banks on Mr. Flaherty.
“We’re hoping that it’s not going to get watered down.”
More in our January 25, 2010 edition