July 10, 2024 – All brokers licensed by the Registered Insurance Brokers of Ontario (RIBO) are expected to take steps to comply with the updated mandatory disclosures guidance, published on April 17, 2024. While RIBO encourages all licensees to implement the guidance immediately, RIBO will begin enforcing it on October 1, 2024.
The guidance states that licensees must provide clients with the mandatory disclosures no later than at the time of quote. Licensees must supply clients with written confirmation of their discussions, including confirmation of all mandatory disclosures. Additionally, licensees must draw their clients’ attention to the matters being disclosed.
There are many ways to provide mandatory disclosure, and the appropriate method depends on how the transaction is conducted. In cases where quotes are provided over the phone, licensees must provide clients with written confirmation of their discussions after the telephone quote.
Below are three situations to help you determine the best communication strategy for your brokerage.
Example 1
During a phone call, explain the requirement to disclose key information relevant to the recommendation you plan to provide. After the call, supply written confirmation of the discussion and disclosure.
Sample phone call script
As a RIBO-licensed broker, I’m required to inform you that the brokerage I work for is owned by one of our insurance markets, ABC123 Insurance Company. I’m telling you this because the best price I found for you today is with ABC123 Insurance Company.
Sample follow-up email
During our conversation, I mentioned my professional obligation to disclose certain information. For example, I disclosed the commission ranges that ABC123 Insurance Company provides and that ABC123 Insurance Company has a financial interest in our brokerage. Here’s a link to the details, including information on how the brokerage is compensated. Contact me if you have any questions.
Example 2
Provide the disclosure in an email before providing quotes and then written confirmation afterwards to document that you had a conversation about disclosure with the potential client.
Thanks for your interest in obtaining an insurance quote. Our brokerage is licensed through the Registered Insurance Brokers of Ontario (RIBO), and our staff are individually licensed brokers. We are required to disclose our professional duties and obligations to you as a potential client.
Learn how we are compensated by the insurers and Managing General Agents we represent by reading the below, and reviewing our privacy policy, all of which are attached:
- CISRO Principles of Conduct for Insurance Intermediaries
- Fact Sheet About Your Registered Insurance Broker
- Broker Compensation Disclosure.
To ensure we provide you with an accurate quote, we may need to obtain information and/or records pertaining to those listed on your policy.
If you agree to this, please reply and let us know if you’d prefer us to contact you by phone or email.
(Then, after having the conversation with the potential client, send an email documenting the conversation about disclosure that you had with them.)
Example 3
If the transaction is partially online, provide the disclosure after receiving the information online (such as a web form) and before providing quotes.
The web form should include a link to the disclosure, including commissions information, and an acknowledgement that the potential client has reviewed and understood the disclosure.
Alternatively, if your business model involves a telephone call or email to confirm the quote or lead, the approaches in Examples 1 or 2 can also be adopted.