Banks cannot sell online

Can a bank sell insurance onlne? No, the banks cannot.

Here is the text from the IBAA announcement:

1) Federal Minister of Finance, Jim Flaherty announced today that the Government of Canada intends to change the regulations in the Bank Act to include the same prohibitions for on-line retailing of insurance that are currently in force for branches. The Minister has written to the Insurance Brokers Association of Canada (IBAC) to confirm the intent of the new provisions. The Minister also wrote all the chartered banks making it clear that bank websites will become subject to the same insurance restrictions that apply to branches. IBAC states that Minister Flaherty has essentially asked banks to stop selling insurance on-line.

2) Quebec Liberal MP Alexandra Mendes tabled a private members bill yesterday with the goal to prohibit all insurance promotion by banks. If the bill were to pass, no branch could promote the sales of insurance policies anywhere - including from adjacent premises, on-line and on ATMs.

So you will no longer see the advertising in your bank to check for rates online.