L’Financial Markets Authority launched on June 15, 2022 a consultation on the group insurance offered to members of student associations.
Concerned among other things by breaches of the obligation of informed consent of the member, the Authority had taken measures to plug the loopholes. They were to apply in September 2022. The Quebec regulator then withdrew them, due to the concerns they had raised.
The AMF is now counting on the ongoing consultation to find the best balance between maintaining access to insurance products for students, and ensuring that they are adequately protected by these products.
The consultation will end on October 17, 2022. After the consultation period, the regulator will make public the comments submitted, and will produce a report to the Minister of Finance. From October 18 to December 16, 2022, the Autorité will analyze the responses received.
In April 2022, the Autorité revealed to theInsurance Portalto want to consult a very large public, and that all stakeholders interested in the file will be able to be heard.
In addition to students and their associations, the AMF’s consultation document mentions that parents, educational establishments, insurers and firms are invited to participate. The consultation specifically targets insurance plans offered to college and university students.
Automatic membership in question
In its consultation document, the AMF explains that students subscribe to group insurance plans by paying an insurance premium at the same time as the student contribution, through an invoice from the educational institution.
The regulator wants to know if the process of automatic enrollment with the right to withdraw is working properly, and if it can be improved. It also asks when the student is informed of the existence of the insurance plan, and of its main characteristics.
Withdrawal and affordability
The AMF is also probing the participants as to the student’s right to withdraw from the insurance plan. What are the good practices, the disadvantages? Can this process be improved?
Regarding access, the AMF wishes to explore avenues that would allow access to these insurance plans at the best possible cost for the student. The regulator also inquires about suggestions for a simple and effective handling of complaints.