IVICs, insurance contracts that allow investment in segregated funds while offering guarantees at death or maturity, have long occupied a unique space in the market. Regulators say this nationwide guidance closes longstanding gaps by clarifying conduct standards across all provinces and territories.
“Canada now has consistent national expectations for insurers and intermediaries related to IVICs,” says Louise Gauthier, Chair of CISRO and Co-Chair of the CCIR/CISRO Segregated Funds Working Group. “These expectations will be endorsed from coast to coast to coast, by each province and territory in accordance with their local regulatory regime.”
The document is the result of extensive collaboration not only among regulators but also with industry and consumer representatives.
“Many insurance industry stakeholders and passionate consumer advocates contributed their insights and expertise to the development of this consolidated national Guidance,” says Erica Hiemstra, vice-chair of CCIR and co-chair of the Working Group. “We thank all those who shared their perspectives and helped us develop consistent standards that are practical for industry while ensuring meaningful protections for customers.”
With this guidance now finalized, insurers and advisors across the country will be expected to align their practices with these new national benchmarks, ushering in heightened clarity and fairness for customers navigating segregated fund products.