Ethics in Property & Casualty Insurance:
Professional Standards for Brokers

Table of Contents
Chapter 1: Foundations of Broker Ethics	1
Introduction	1
Why Ethics Matter in Property & Casualty Insurance	1
Ethics serve several key purposes:	2
The Privilege of Self-Regulation	2
Code of Conduct	2
Public Trust and Fiduciary Duty	3
Case Callout: The Ripple Effect of Misconduct / Lesson	3
Evolution of Ethical Standards in Canadian Insurance	4
Consumer Protection Movements (1980s – 1990s)	4
National Harmonization / Technological Change	4
High-Profile Cases of Misconduct	4
Shift Toward Outcomes-Based Regulation	4
Core Ethical Themes in Property & Casualty Brokerage	5
Real-World Illustration	5
Case Study: Misrepresentation of Market Access (Ontario)	5
Regulatory Outcome: / Lesson:	6
Building on the Foundation	6
Legal vs. Ethical Duties	6
The Client-First Obligation	7
Integration of Fair Treatment of Customers (FTC) Guidance	8
Commercial Interests vs. Client Interests	9
Case Callout: The Undisclosed Incentive / Lesson:	9
Confidentiality and Protection of Client Property	10
Real World Illustration	11
Case Study: Discouraging a Legitimate Claim (Saskatchewan)	11
Regulatory Outcome: / Lesson:	11
The Broader Social Role of Brokers	11
Ethical Gray Areas	12
Bundled Sales / Social Media Marketing / Referral Fees	12
Why These Gray Areas Matter	12
Case Call out: The Gray Zone in Action: / Outcome / Lesson	13
Building on the Foundation – Final Segment of Chapter 1	13
Enforcement of Ethical Standards	13
Alberta (AIC / Alberta Insurance Council)	13
Manitoba (ICM / Insurance Council of Manitoba)	14
Ontario (RIBO / Registered Insurance Brokers of Ontario	14
Ontario (FSRA / Financial Services Regulatory Authority of Ontario)	14
Saskatchewan (FCAA / Financial and Consumer Affairs Authority)	14
Consequences of Misconduct	15
Reputational Damage / Civil Liability / Professional Isolation	15
Industry Impact / Why Proactive Compliance Matters	15
Case Callout: Industry Repercussions / Lesson	16
Shared National Alignment	16
Real World Illustration	17
Case Study: Failure to Remit Premiums (Ontario)	17
Regulatory Outcome / Lesson	17
Professional Courtesy and the Broader Community	17
Case Callout: Delayed Transfer (Ontario) / Outcome / Lesson	17
Professional Courtesy Checklist	18
Building a Culture of Ethics	19
Key Elements of an Ethical Culture	19
Regulatory Expectations Across Provinces	19
Case Callout: The Leadership Gap / Lesson	20
Why Culture Matters	20
Real World Illustration	20
Case Study: Inadequate Disclosure of Contingent Commissions (Saskatchewan)	20
Regulatory Outcome / Lesson	20
Why Ethics Must Evolve	21
Digital Marketing and Online Tools / Cybersecurity and Client Data	21
Climate Change and Catastrophic Events	21
Emerging Exposures: Gig Economy and Shared Services	21
Why Staying Current Matters	21
Key Takeaways from Chapter 1	23
What’s next? Preparing for Chapter 2	23
Chapter 2: The RIBO Code of Conduct (Ontario)	24
Introduction	24
Integrity as the Foundation	24
Case Callout: Integrity Under Pressure / Lesson	25
Competence as a Professional Duty	25
Case Callout: Overlooked Equipment (Saskatchewan) / Lesson	26
How Integrity and Competence Work Together	26
Quality of Service	27
What Does Quality of Service Look Like in Practice?	27
Timelines / Practical Application	27
Renewal Vigilance / Accuracy / Diligence / Accessibility	28
Regulatory Lens: Standards of Service Across Jurisdictions	29
Ontario (RIBO) / Saskatchewan (FCAA) / Alberta (AIC) Manitoba (ICM)	29
Case Callout: The Missed Renewal / Outcome / Lesson	29
Where Brokers Slip on Service	30
Best Practices for Service	30
Candor and Honest Communication	30
Case Callout: The Misleading Renewal / Outcome / Lesson	31
What Candor Requires in Practice	31
Example of Candor in Renewal	32
The Overlap Between Service and Candor	32
Case Callout: The Silent Change (Ontario) / Outcome / Lesson	32
Confidentiality	33
Case Callout: Improper File Disposal / Lesson	33
Safekeeping of Client Property	34
Case Callout: Misuse of Trust Funds (Ontario) / Outcome / Lesson	34
Conflicts of Interest	34
Case Callout: Exclusive Auto Arrangement (Alberta)	35
Outcome / Lesson	35
Professional Courtesy	35
Examples of Courtesy in Practice	35
Case Callout: Delayed File Transfer (Ontario) / Outcome / Lesson	36
The Interconnection of These Duties	36
Case Callout: The Multi-Breach File (Manitoba) / Outcome / Lesson	36
Practical Lessons for Brokers:	37
Regulatory Lens: Shared Expectations Across Provinces:	37
Ontario (RIBO) / Saskatchewan (FCAA) / Alberta (AIC) Manitoba (ICM)	37
Cooperation with Regulators	38
Case Callout: Ignored Audit Requests (Alberta) / Lesson	38
Reporting Misconduct	38
Case Callout: Silent Partner (Ontario) / Lesson	38
Advertising and Public Representations	39
Case Callout: Misleading Ad (Ontario) / Lesson	39
Fee Transparency	40
Case Callout: Hidden Admin Fee (Manitoba) / Lesson	40
Accountability and Professional Culture	40
Case Callout: The Defensive Broker (Ontario) / Lesson	40
Integrating the Duties / Practical Lessons	41
Cooperation / Reporting	41
Advertising / Fees / Accountability	42
In Conclusion / What’s next? / Preparing for Chapter 3	43
Chapter 3: Saskatchewan Standards & the Fair Treatment of Customers (FTC)	44
Introduction	44
Outcomes-Based Regulation / Suitability of Advice	44
Disclosure and Transparency / Managing Conflicts of Interest	45
Fair Claims Handling	46
Case Illustration: Suitability / Lesson	46
Case Illustration: Conflicts of Interest / Lesson	46
Case Illustration: Claims Handling / Lesson	47
Enforcement in Saskatchewan / Disclosure and Transparency	47
Explaining Coverage and Exclusions	47
Market Access and Limitations / Timing and Clarity of Disclosure	48
Case Illustration	48
Suitability of Advice	48
Conducting a Needs Assessment / Matching Products to Needs	48
Documenting the Recommendation / Case Illustration	49
The Link Between Disclosure and Suitability	49
National Alignment / Summary of Key Points / Conflicts of Interest	50
Common Types of Conflicts / Why Disclosure Matters	50
Practical Example	51
Managing, not Just Disclosing	51
Claims Handling / The Broker’s Role in Claims / This role is not optional	51
FTC Expectation of Fairness	51
Case Illustrations: Discouraged Claim / Delayed Submission	52
Advocacy and Professionalism	52
The Connection Between Conflicts and Claims	52
Enforcement and Accountability / Summary	53
National Alignment and FTC Integration	53
Comparative Enforcement: Ontario (RIBO)	54
Comparative Enforcement: Alberta (AIC)	54
Comparative Enforcement: Manitoba (ICM)	54
Common Threads / Case Comparison	55
Building a Culture of Fairness	56
In Conclusion / What’s next? / Preparing for Chapter 4	57
Chapter 4: Case Studies and Practical Scenarios	58
Introduction	58
Case Study 1: Integrity Under Pressure (Ontario)	58
Regulatory Outcome: / Lesson: / Compliance Example:	58
Case Study 2: Suitability of Advice (Saskatchewan)	59
Regulatory Outcome: / Lesson: / Compliance Example:	59
Case Study 4: Conflicts of Interest (Alberta)	60
Regulatory Outcome: / Lesson: / Compliance Example:	60
Case Study 5: Claims Handling (Manitoba)	60
Regulatory Outcome: / Lesson: / Compliance Example:	60
Case Study 6: Professional Courtesy (Ontario)	61
Regulatory Outcome: / Lesson: / Compliance Example:	61
Case Study 7: Confidentiality Breach (Saskatchewan)	61
Regulatory Outcome: / Lesson: / Compliance Example:	61
Advertising and Marketing Practices	62
Case Illustration: Misleading Price Guarantee (Alberta)	62
Regulatory Outcome: / Lesson: / Compliance Example:	62
Renewal Obligation	62
Case Illustration: Missed Renewal Notice (Ontario)	62
Regulatory Outcome: / Lesson: / Compliance Example:	62
Fee Disclosure	63
Case Illustration: Undisclosed Service Fees (Manitoba)	63
Regulatory Outcome: / Lesson: / Compliance Example:	63
Unauthorized Practice of the Vocation	63
Case Illustration: Unlicensed Assistant Acting as Broker (Saskatchewan)	63
Regulatory Outcome: / Lesson: / Compliance Example:	63
Professional Courtesy and Transitions	64
Case Illustration: Delayed File Transfer (Ontario)	64
Regulatory Outcome: / Lesson: / Compliance Example:	64
Key Themes Across Scenarios	64
Confidentiality in Practice	65
Case Illustration: Improper File Disposal (Saskatchewan)	65
Regulatory Outcome: / Lesson: / Compliance Example:	65
Safekeeping of Client Property	66
Case Illustration: Misuse of Trust Funds (Ontario)	66
Regulatory Outcome: / Lesson: / Compliance Example:	66
Curtesy in Relations with Insurers	66
Case Illustration: Disparaging an Insurer (Manitoba)	66
Regulatory Outcome: / Lesson: / Compliance Example:	66
Cooperation with Regulators	67
Case Illustration: Ignoring Regulator Requests (Alberta)	67
Regulatory Outcome: / Lesson: / Compliance Example:	67
Interconnection of Duties	67
Case Comparison Across Provinces	68
Complex Scenarios in Brokerage Practice	69
Case Study 1: The Renewal Package (Ontario)	69
Regulatory Outcome: / Lesson: / Compliance Example:	69
Case Study 2: The Flooded Farm (Saskatchewan)	69
Regulatory Outcome: / Lesson: / Compliance Example:	69
Case Study 3: The Auto Referral (Alberta)	70
Regulatory Outcome: / Lesson: / Compliance Example:	70
Case Study 4: The Mishandled Claim (Manitoba)	70
Interconnected Ethical Principles	71
Comparative Lessons Across Jurisdictions	71
Practical Guidance for Brokers	71
In Conclusion / What’s next? / Preparing for Chapter 5	72
Chapter 5: Best Practices, Tools, and Conclusion	73
Introduction	73
Building a Culture of Ethics	73
Leadership Responsibility / Written Policies	73
Training and Reinforcement / Accountability and Monitoring	73
Documentation as a Safeguard	74
Practical Tools: Checklists and Templates	74
Disclosure Checklist / Needs Assessment Template	74
Claims Support Log	75
Communication as an Ethical Skill	75
Plain Language / Active Listening / Written Summaries	75
Case Illustration: Embedding Ethics in Daily Practice	75
Managing Conflicts of Interest	76
Best Practices for Disclosure / Management / Case Example	76
Ethical Advertising and Marketing	77
Best Practices for Advertising	77
Example of Compliant Wording / Internal Safeguards	77
Renewal Practices / Best Practices for Renewals	77
Case Illustration / Lesson	78
Claims Handling and Advocacy / Best Practices for Claims Handling	78
Case Illustration / Lesson	78
Integrating Best Practices / Introduction to Practical Tools	79
Disclosure Templates	79
Sample Commission and Fee Disclosure Statement	79
Needs Assessment Forms / Sample Personal Lines Assessment	80
Sample Commercial Lines Assessment	80
Renewal Discussion Notes / Sample Renewal Note Template	81
Claims Assistance Logs / Sample Claims Logs	81
Compliance Checklists / New Client Onboarding Checklist	82
Renewal Checklist / Advertising Checklist	82
Scenario-Based Training	83
Chart	83
Technology and Compliance Tools	83
Best Practices for Technology Use	83
Case Illustration: Tools in Action	84
National Consistency in Ethical Standards	84
Integrating Best Practices into Daily Operations	85
Policies and Procedures / Supervision and Accountability	85
Training and Culture / Documentation and Audit Trails	85
The Broker’s Role in Public Trust	85
Practical Takeaways	85
Case Reflection Exercise / Discussion Questions	87
The Future of Ethical Standards	87
In Conclusion	87

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