Continuing Impact Of The Internet On The Competing Banking And Insurance Sectors In Canada

An earlier issue of E-TIPS® “Canadian Banks and Finance Minister on Conflict Over Online Insurance Marketing” October 21st 2009, Vol 8, No 9, raised the question whether if banks were to be regulated in selling insurance on their web sites, in reciprocal fashion should insurance companies be similarly regulated vis-à-vis the selling of banking services on insurance web sites? Recently it emerged that, according to the Finance Minister, Ottawa is indeed planning such an initiative. As quoted in news reports in April 2010, the Finance Minister intends to tell Canadian insurance companies that similar rules will apply to them and that they too will have to alter their web sites to provide some element of separation in providing services in these sectors to consumers, although the details of how this separation is to be carried out are yet to be announced. The goal is to continue to make it clear to consumers that there is a division between the two sectors of banking and insurance, even though modern information technology has operated to reduce the gap. For the news report, see: http://tinyurl.com/22qgyu3 Summary by: Richard Potter