Regulators say there is a ‘concerning trend’ of insurance agents working without a valid licence

Ontario’s financial services regulator is warning the public about a “concerning trend” of insurance agents who are completing hundreds of transactions without a valid licence.

Officials say some insurers have self-reported these cases to the Financial Services Regulatory Authority of Ontario (FSRA) and corrective action has been taken. In a statement issued on Monday, the agency claims the unlicensed activity occurred “because of a lack of proper controls in systems, processes or administration.”

“There is a real risk of consumer harm if insurance agents disregard the law and forget or knowingly fail to renew their licence in time,” the FSRA added.

The agency says insurance policies sold by unlicensed agents could be voided, cancelled or cause damage to an individual’s insurance history, leading to higher fees.

“FSRA strongly encourages all insurers to proactively assess and regularly monitor their internal controls to ensure they are robust enough to detect and prevent unlicensed activity,” officials said in a statement. “If unlicensed activity is identified, insurers must report it to FSRA and also take immediate corrective action to protect the affected clients.”

The FSRA works to improve consumer protections in Ontario and is in charge of issuing licences to insurers and agents.

Last week, the agency warned about Andi Efovia, an unlicensed insurance broker who was working out of The West Mall in Etobicoke and advertising his services on social media.

“We recommend consumers avoid purchasing insurance, including auto insurance, from Efovia,” officials said in a statement.