Big changes afoot for life agents?

Investment Executive

1 May 2016

BY MEGAN HARMAN

 

Big changes afoot for life agents?

 

Proposals aim to make the advice channel more consumer-friendly

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Life insurance agents across the country could face new harmonized standards related to proficiency, conduct and sales practices as a result of changes to the advice channel being proposed by the Canadian Life and Health Insurance Association Inc. (CLHIA).

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The sweeping set of recommendations, which aim to improve customer protection, would mean greater compliance responsibilities and fewer sales incentives for advisors.

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Although some of the proposals would be a challenge to implement, the overall pursuit of creating a more transparent and consumer-friendly distribution channel is being well received by advisors such as Cameron Foley, financial advisor with Hartry Foley Financial of Oakville, Ont., which operates under the umbrella of Markham, Ont.based Worldsource Financial Management Inc.

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“These recommendations were made from the perspective of what’s best for the client,” says Foley. “It might mean more paperwork or more hoops to jump through, but, at the end of the day, if it’s best for the client, it’s going to be best for the industry.”

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The CLHIA’s recommendations are outlined in a recent report entitled Insurance Distribution in Canada: Promoting a CustomerFocused System. The report is based on a review of distribution practices, motivated by the growing focus on market conduct among insurance regulators around the world, says Leslie Byrnes, vice president, distribution and pensions, at the CLHIA.

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“This was a proactive [step], recognizing the general environment out there,” says Byrnes.

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The recommendations range through basic proficiency standards (such as the adoption of an industrywide code of conduct and continuing education (CE) criteria) and mandatory errors and omissions (E&O) insurance coverage for insurance agents Canada-wide to specific requirements as part of the sales process.

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For example, the CLHIA recommends that insurance agents in all jurisdictions be required to conduct a needs analysis prior to recommending an insurance product to a client. Agents should provide clients with a copy of this analysis, the report states, as well as a one-page written explanation of why the recommended product is appropriate for the client.

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Many insurance agents already conduct needs analyses regularly; however, Quebec is the only Canadian jurisdiction with regulations requiring agents to complete this step. Expanding this rule across the country would ensure all insurance advisors understand of their clients’ circumstances before recommending products, according to the CLHIA.

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“I think there is recognition that these are best practices,” says Byrnes. “Many advisors do this. They may not all document it as well as they could, so this [proposal] will really contribute to better documentation, and consumers will end up having a much clearer written record of what they bought and why, and how it meets their needs.”

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Those requirements will mean extra paperwork, which will be an adjustment for insurance agents who aren’t in the habit of taking these steps already, says Eric Wachtel, national chief compliance officer with IDC Worldsource Insurance Network Inc. in Mississauga, Ont., and regulatory director with the Canadian Association of Independent Life Brokerage Agencies.

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“For some advisors, particularly those who have been in the business for decades, if they find themselves having to do this, it can be a bit bumpy at the beginning,” Wachtel says. “There can be a little bit of a learning curve back to fundamentals.”

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Despite the additional work, Foley says, the needs analysis and additional documentation are beneficial for advisors and clients alike.

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“The paperwork is necessary,” he says. “Once you make it a part of your procedure, it becomes a habit.”

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The prospect of these types of standards being harmonized across the country is an element of the proposals that also will be beneficial for advisors, says Susan Allemang, head of regulatory and policy affairs with the Independent Financial Brokers of Canada in Mississauga, Ont.

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“People are licensed in more than one jurisdiction in a lot of cases,” says Allemang. “Having harmonized standards would be nice, so that you don’t have things that vary from jurisdiction to jurisdiction.”

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The CLHIA also proposes changes to the industry’s regulatory structure. Specifically, the report recommends that all jurisdictions adopt an insurance council model of regulation, like those in Alberta and B.C. Under this model, Byrnes says, regulators have dedicated resources and strong industry expertise.

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“In some jurisdictions, making sure that [regulators] have dedicated resources to the licensing and standards and disciplinary oversight of advisors can be difficult,” she says. “With an insurance council, you know that you have those dedicated resources.”

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The prospect of completely revamping the regulatory structure in many provinces across the country, however, will not be a simple undertaking, says Allemang: “These regulators already exist. Do you start upending everything? I’m not sure how realistic that is.”

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The CLHIA also suggests enhancing the powers of provincial regulators in situations involving client complaints against insurance agents. Specifically, the CLHIA recommends that in addition to ordering sanctions, regulators should be able ask insurance agents to pay restitution to consumers when appropriate.

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E&O insurance already provides a mechanism for consumer restitution, however. Allemang says further study is necessary to determine the need for an additional source of restitution.

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“Independent advisors already pay for their own E&O at a fairly considerable cost,” she says.

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In Wachtel’s opinion, greater amounts of restitution are best left to the courts. “In many minor cases, these situations are dealt with at the carrier level,” he says. “For the big offenders, if there was a large restitution ordered by a council, and the advisor had ill intent, collecting might be hard outside the court system.”

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Other topics addressed in the CLHIA’s report include: segregated fund disclosure, with a recommendation that the insurance industry develop more detailed disclosure of seg fund costs; the issue of access to advice or service in the years after a client has bought a insurance policy, with a recommendation that regulators work with the industry to develop a guideline for ensuring clients have access to ongoing advice and the right to appoint a preferred advisor; and perceived conflicts of interest associated with sales incentive trips. (See story at right.)

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The CLHIA has presented its proposals to the regulators, and plans to work with other industry players to explore next steps.

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A PERSONAL NOTE:

WATCHDOG SEEKS BETTER INVESTOR PROTECTION IN CANADA

http://www.pressreader.com/canada/toronto-star/20160429/282626031877113

 

 

 

 

 

The invisible thread that unites all Jews

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By Edgar M. Bronfman

April 24, 2016

The Canadian Jewish News

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In an excerpt from a new book, the late Edgar Bronfman looks back on his life and considers why Judaism has survived for 4,000 years 

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One who teaches his son Torah, it is considered as if he taught his son, his son’s son, and so on to the end of generations.

~The Talmud, Kiddushin 30a

Honour your Father and Mother.

~Exodus 20:12, Deuteronomy 5:16

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One of the things I treasure most about Judaism is its emphatic insistence on the importance of family. In Judaism, we constantly find the message that life should be led within the community’s embrace, not in isolation, and that family is at the centre of the community. My own home growing up was quite formal – I mostly feared my father and my mother was often remote – but the Jewish emphasis on family was nonetheless a sacrosanct value.

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This value resonated with me during one of the most moving moments in my life: when I received a last blessing from my maternal grandfather. Throughout my childhood Gramps and I had been very close. He was tall with a goatee and though religious, he was not overly serious; he had a carefree manner and was always advising everyone to “take it easy.” This attitude came through in everything about him. On the eve of my sister’s wedding, for example, an uncle died. As an educated, religious Jew, Gramps was asked to rule on whether or not the wedding should go forward.

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Consistent with his character, Gramps ruled in favour of the mitzvah that stated joy should overcome sadness.

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I also remember how Gramps would take me, my brother, and cousins to a tiny, hole-in-the-wall deli called Ben’s and on mountains walks. As we noshed on smoked meat sandwiches or strolled through the crisp air, Gramps would quietly share his experiences with us, easily moving from the personal to the philosophical. But whatever the topic, he never instructed.

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He just talked and gave us the space to arrive at our own conclusions.

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When I was in my early 20s, I went to see him. I somehow I sensed this would be the last time we would meet (and it was) so I asked him for a blessing. I can still see him wrapping himself up in his blue and white prayer shawl, striking up a match, and lighting a candle.

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As he recited the ancient words, I felt moved to my marrow. I could almost physically feel an invisible thread joining us – first me to him, and then the two of us to our ancient forebears. With this, I stepped into a cycle of existence far greater than anything I could ever know or hope to understand, something I found immensely reassuring. To this day, whenever I recall the sensation of his hand gently resting on my head and hear the musical sound of his soft Hebrew in my memory, I am overwhelmed by an indescribable sense of loss and longing.

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Sadly, the bond I felt then to my Jewish heritage did not further develop, and shortly thereafter I abandoned it all together. Part of this, I’m sure, is that despite my closeness to my grandfather, my connection to Judaism was weak. My parents, for whatever reason, failed to instill much-needed Jewish pride in their children. Though they gave us some Jewish education and contributed generously to Jewish causes during the war, my father seemed extremely conflicted about his Judaism; I would go so far as to say he harboured animosity. The contradictory ways in which the Judaism of my parents expressed itself created a deep ambivalence in me. One area in which this ambivalence played itself out was their choices for my education.

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Because Father was a real Anglophile – he loved everything English – my brother, Charles, and I did not attend Jewish schools, but were sent to the Selwyn House School, a place that enrolled few Jewish boys. This arrangement resulted in us having two sets of friends: the Protestants at Selwyn House, and the Jewish kids from the synagogue, a place we viewed with less than enthusiasm.

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I don’t think my parents ever understood how confusing this arrangement was for their children and how in my eyes, it automatically reduced our Jewish friends to the status of second-class companions. Even now, decades later, I am not clear on why I thought less of my Jewish friends than of my elite Protestant companions. I am afraid it’s because I was reflecting my parents’ feelings on the subject.

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My parents’ ambivalence about their Jewishness also showed up when I procured a golf caddy job at the Alpine Inn. There was a man from New York, a Mr. Kenny, who insisted on an English-speaking caddy. Unless he got one, Mr. Kenny would take his business elsewhere. As English-speaking caddies were rare, I sensed a negotiating opportunity and in the end not only got the caddying job, but succeeded in getting to play golf for free in the afternoon.

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When I got home, I proudly told Mother of my employment victory. When she heard my story, her face took on a worried expression, and she informed me that I wasn’t strong enough to caddy. Since my mother wasn’t a typical Jewish mother, this response struck me as unusual. But when I hotly contested her assessment of my abilities, she offered no explanation. Instead, she offered to pay me what I would make in the morning if I agreed not to caddy in the afternoon.

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What I didn’t know at the time was the Alpine Inn was restricted – Jews were not welcome. Rather than tackle the topic of anti-Semitism head on, Mother avoided it. In fact, she bought me off.

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In the end, this was all very confusing to a 15-year-old boy.

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The Judaism of my parents and the Judaism of my own generation was not a joyful Judaism. It was one forged in the fires of pogroms in Russia from which my grandparents fled, and deepened by the horror of the Holocaust. Although we were safe in Canada, the pain of the millions of Jews being murdered in Europe rested heavily on our shoulders.

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There was a vague, haunting sadness to being a Jewish child in the 1940s, even in the relative safety of North America. The calamity happening overseas was never discussed in our home, but we all knew anyway. Anti-Semitism during my youth, albeit less dramatic than the evils in Europe, was nonetheless damaging to the Jewish psyche. It wasn’t just the physical manifestations of anti-Semitism: it was also an injury to the sense of self.

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Despite their immense wealth, my parents did not escape this pain. On the one hand they were clearly Jews, but on the other, they were empire builders who longed to be bona fide members of the non-Jewish power elite, the majority of whom were not welcoming of Jews. Though they never said so, my guess is that if others had allowed them to do so, they may have cast off their Jewish identity at the first opportunity.

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My lack of pride in my Jewishness might explain why I didn’t protest my first wife’s custom of celebrating Christmas, something not unusual for highly assimilated German Jews of that generation. I am sure that if I had voiced opposition Ann would have given up the holiday and would have also agreed to give the children as much Jewish education as I wanted. But I didn’t object because it wasn’t important to me. So for many years, we hung stockings by our fireplace and set up our fir tree, a grand and glittering affair that made no pretense at masquerading as that odd American invention, the Chanukah bush.

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On Christmas morning the air would fill with the excited squeals of our five children as they emptied their stockings and tore open their presents. I was not completely comfortable with all of this, especially receiving gifts from my in-laws, Petey and John Loeb, but since I lacked any real connection to my Jewishness, I dismissed my feelings as unimportant.

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Looking back, I believe that had my parents consciously instilled Jewish pride in me during my formative years I would not have been so woefully indifferent to my Judaism. But I can’t really blame them, because I followed in their footsteps, and failed to give my own children even the very basic Jewish education I’d received. If there is anything I regret, it is that as my children grew up, I gave them no Jewish tradition in our home. There was no Friday night meal to welcome the Shabbat, no observance of the holidays, and no Jewish learning.

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This failing still haunts me. It is one of the reasons I spearheaded the Bronfman Youth Fellowships in Israel, a training program for young leaders. It’s also why I have thrown myself and my resources into the revival of Hillel houses on campus and into the creation of MyJewishLearning.com, a website that offers information about Judaism from the most basic questions to advanced study and inquiry. And it’s why I am so thrilled when Bronfman Fellowships alumni, like Rabbi Daniel Smokler, who is now director of education at the Bronfman Center at New York University, commit to bringing Jewish learning and text study to other young people in a way that is joyful and personal. Still, while initiatives and programs are much-needed, love of Judaism begins with family, at home.

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After the destruction of the Second Temple in 70 CE, our sages determined that the home would become the new Temple, calling it a mikdash ma’at, or little sanctuary. As one midrash explains, “When the Temple stood, the altar offered atonement for Israel. Now, one’s table offers atonement” (Brachot 55a). The Jewish home – or any home – should be more than a shelter: it should act as the centre of meaning, beauty, and connection to forces larger than ourselves.

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In Jewish tradition, it is in the home that many of life’s significant milestones, from the birth of a child to death and mourning, take place. As pointed out by Rabbi Andy Bachman, a well-known communal leader and dear friend, Judaism has rituals for all those aspects of life – birth, transition, marriage, death – in which people cry out for meaning. He believes, and I think I agree, that these life-sanctifying rituals, along with Shabbat, are one of the main reasons that Judaism has stayed alive for nearly 4,000 years.

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Excerpted from Why Be Jewish? A Testament by Edgar M. Bronfman. Copyright 2016 Edgar Bronfman. Published by Signal, an imprint of McClelland & Stewart, a division of Penguin Random House Canada Limited. Reproduced by arrangement with the publisher. All rights reserved.

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Matthew Bronfman on his father’s Jewish journey

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By Sheri Shefa, Staff Reporter –

March 31, 2016

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http://www.cjnews.com/living-jewish/jewish-learning/matthew-bronfman-on-his-fathers-jewish-journey

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Edgar M. Bronfman, Sr.

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http://www.nytimes.com/2013/12/23/business/edgar-m-bronfman-who-brought-elegance-and-expansion-to-seagram-dies-at-84.html?_r=0

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A PERSONAL NOTE:

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THE CRUCIBLE FOR SUCCESS IS NOT A CORPORATION

IT IS A FAMILY’S CULTURAL VALUES

IT TEACHES THE IMPORTANCE OF MOVING FROM ‘ME’ TO ‘WE’

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Dan Zwicker

Toronto

Canada

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WHAT PERSONALITY QUALITIES DO PROFESSIONAL ENGINEERS HAVE?

What Personality Qualities Do Engineers Have?

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by Auston Matta

Demand Media

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The products you use in everyday life are all designed. The development and construction of these products have a specific plan, and engineers are responsible their creation. Even the seemingly simple packages of food you purchase at the grocery store often require a packaging engineer to ensure freshness and safety. Mechanical engineering has been around for quite some time, but dramatic improvements in technology since the 20th century have given rise to new fields like biomedical and computer engineering. Even with all the differing disciplines of engineering, commonality exists between the personalities of those who work in the field.

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Critical Thinking

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Engineers are problem solvers. They are the people who figure out how to make your smartphone smaller, laptop faster and car more fuel-efficient. For example, in order for a smartphone to become thinner, an electrical engineer must determine how to redesign existing electrical components. Once the concept is developed, a manufacturing engineer must determine how to mass produce the new components for the consumer market. These new iterations of products and processes require engineers to solve problems and think critically about possible solutions.

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Resourceful

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Engineers must be resourceful. They must rely upon the concepts they learned in school or other training programs. They must reference textbooks or engineering guides to better understand the concepts related to the problem they are solving. For example, when facing a thermal design issue, a mechanical engineer may not necessarily know the unit conversion from British thermal unit — or Btu — to watts, but he must know where to look for the information. The field of engineering is not about memorization or completing repetitive tasks but knowing where to find the information required in order to solve the problem at hand.

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Inquisitive

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Most engineers you encounter are highly inquisitive. Engineers are often fascinated by how things work and the science behind the operation. As children, many engineers dismantle their toys just to figure out how to put them back together. This inquisitive nature becomes very handy in the field of engineering, because engineers must understand how the current product or process works prior to making an improvement or fixing an issue.

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Cooperative

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An engineer needs to be effective at working together with his colleagues. Teamwork among engineers is almost always required to complete a job. Teamwork is especially important in engineering because most jobs require several engineers to complete. A simple package of coffee beans, for example, may require five engineers to design the package, test the performance and manufacture the final product. A complex product like a laptop computer could require hundreds or thousands of engineers to support the development. Northwestern’s McCormick School of Engineering, for example, has specifically designed an entry level-course named Design Thinking and Communication, which requires engineering students to work in groups throughout the six-month course.

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A PERSONAL NOTE

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BY DR. CHARLES GOSHEN M.D.

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A DIPLOMATE OF THE AMERICAN BOARDS OF PSYCHIATRY AND NEUROLOGY.

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THE ENGINEERS’ MOST OBVIOUS CHARACTERISTIC IS HIS PRECISION, HIS METICULOUSNESS, HIS ATTENTION TO DETAIL AND ACCURACY  –  HIS PERFECTIONISM.

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ANOTHER STRIKING QUALITY IS HIS INTELLIGENCE.

 

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