Why are Canadian insurers truly afraid of an organized life settlement market?

The text is now available at: http://consumerights.ca/wp/2015/04/why-are-canadian-insurers-truly-afraid-of-an-organized-life-settlement-market/

 

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4 comments

  1. Seamus Kavanagh
    Investment Consultant

    Richard-you are 100% right in your position. I believe Phoenix Life in the US tried a number of things in their efforts to “battle” the life settlement industry and, in most cases they lost not only the legal battle but also larger and larger chunks of their own reputation as they mistreated policy holders in their efforts to prohibit the exercise of their contractual right to change ownership. Today carriers continue to hold up valid change forms and they use other tactics to try and change the rules in their favor but it’s not working. Recent legislative efforts are beginning to take hold such that in some states carriers may soon have to advise policy holders about the option to settle their policy.

  2. Richard Proteau
    Founder Financial Services Consumer Alliance

    Tks Seamus. When you read the claims against Pheonix, I believe that Pheonix would have engage in the same practices whether or not a life settlement market existed. They needed to get these toxic life insurance policies off the book. However as a market guardian, the life settlement market provided an organized response… I will soon be making an announcement regarding a software tool and and mobile app to allow advisors to meet this duty of disclosure by informing client of the FMV of their policy and life settlement options available. Also a basic mobile app will be made available to the public to educate them of the true value of their policy. I am on target for end of april for the software tool for advisors and mobile app to the public by end of may. This will be available in US and Canada.

  3. Richard Proteau
    Founder Financial Services Consumer Alliance

    Daniel, in Ralph Nader, you just named my hero. If I achieve half of what he has done, i’ll be very proud. I agree that not all life settlements players are white knights but the insurers in Canada have portrayed them as all being evil. Frauds occurs at the same rate at the life settlement level than at the insurer level. We don’t prohibit insurers from doing business just because 1 insurer did a fraud. If we apply the logic of Canadian insurer we should close down all insurers because of the actions of Phoenix… this is the logic they are applying to the life settlement market

  4. Richard Proteau
    Founder Financial Services Consumer Alliance

    Daniel, just one last comment. We will be proceeding with a private legal action under section 36 of the Federal Competition Act. To save money, as I would prefer spending the money for legal representation when we get into court, I will be writing the action. While the action is making the claim of a pricing conspiracy on lapse supported product, it will touch on life settlement because it is one of the methods used by insurer to control pricing of a product. My approach will be very public with the claim being online and anyone will be welcome to offer corrections or comments. Also we will be raising money through a crowd funding campaign which will at the same time raise awareness of the illegal practices employed by insurers to reach their pricing objectives

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