Jim Flaherty: “Banks Won’t Be Able to Sell Insurance Online.”

393px Jim Flaherty 2007
Jim Flaherty has rubber
stamped the fact
that banks can no longer sell
insurance on their websites.

Canadian Finance Minister Jim Flaherty has made it official.

Under new regulations instituted on October 11, 2011, banks are no longer allowed to promote or sell “unauthorized” insurance products online.

“We want to ensure the Bank Act reflects the new reality of online banking, to avoid attempts by banks to do on their web sites what they are prohibited from doing at their branches,” said Ted Minister Menzies, Minister of State for Finance. “We must make sure there is a level playing field where small businesses can compete, thrive and create job.”

Under the former Bank Act, banks were unable to sell insurance within their branches but websites were not prohibited. Unfortunately, in pursuing the right to sell insurance online, Canada’s banks caught the ire of independent insurance brokers, who took the issue to the finance minister’s office in 2009.

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