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| e-News
Bulletin |
Issue
6 - February 10, 2006 |
In
this issue:
- Group Benefits Advisors Have New Requirements for Disclosure
- Why Should Your Company Plan for a Pandemic?
Group Benefits Advisors Have New Requirements for Disclosure
About two years ago, Canadian regulators were prompted to begin surveys into insurer-advisor relationships following New York’s attorney general’s investigation into US insurance industry practices. At that time, recognizing the importance of consumer trust and confidence, the Canadian Life and Health Insurance Association (CLHIA) undertook to reinforce and enhance the measures already in place to ensure consumers are provided with the information they need to make the best decisions.
Last year CLHIA, its insurance company members, along with Advocis, the Canadian Association of Independent Life Brokerage Agencies (CAILBA) and the Independent Financial Brokers (IFB), worked together to produce guidelines for advisor disclosure. The requirements are intended to increase clients’ confidence by ensuring that they’re satisfied that their advisors are offering objective advice.
Much of the disclosure in the industry initiative is already required in regulation or codes of practice in one or more jurisdictions so the main effect of the protocol is to harmonize these standards across the country.
Key Areas for Disclosure
Group benefits advisors should disclose the following information based on the CLHIA’s guidelines:
- The insurance and financial services companies being represented
- The nature of the relationship between the advisor and an insurance company (i.e. if the insurance company has any ownership interests in the advisor’s agency)
- How an advisor is compensated and by whom
- If the advisor is eligible for additional compensation, including cash or non-monetary compensation (e.g. qualifier conferences)
- Potential conflicts of interests
An advisor should disclose these five items in writing before a transaction is completed. Advisors should have these disclosure procedures in place this year. As a plan sponsor, keep in mind that you have the right to ask for more information.
McGowan Insurance Services Ltd. ensures that its commission structure is fair and appropriate for the services that it provides its customers. Although, we have spoken to many of our clients, very shortly we will be sending you a disclosure statement that we would like you to review and sign to ensure you are fully aware of our arrangements with the insurance companies that we have relationships with. In the meantime, if you have any specific questions that you would like to discuss, please don’t hesitate to call Don McGowan at 1-800-749-7549.
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Why Should Your Company Plan for a Pandemic?
Scientific experts are convinced that a pandemic could happen at any time based on the ability of the flu virus to mutate and historical precedents learned from the 1918 pandemic that took the lives of an estimated 50 million people worldwide.
Beyond the human health concerns, a contingency plan makes good business sense. A solid plan can help minimize the impact of disruptions resulting from a pandemic. In the worst case scenario, employees will stay home, supplies will be limited, and business operations will shut down.
Managing Your Business
One of the best ways employers can plan for a pandemic is to help prepare its employees by giving them guidelines to follow in the event of an outbreak. For instance, Microbix Biosystems Inc., a virology company that develops biotherapeutic drugs and vaccines, has prepared a contingency plan that aims at protecting the lives of employees, their families as well as continued business operations.
How Can Your Company Prepare for a Pandemic?
Forward-thinking companies are starting to equip their employees with information and resources to help them plan for the possibility of an outbreak. Microbix has been leading the way by sharing their contingency plan with their employees and making it available to other companies to help them prepare. Here are some examples of the advice that Microbix offers their people:
- Employees should maintain a two to three-month supply of essentials at home (e.g. water, food, medicines, and diapers).
- Employees should minimize trips into the general public during an outbreak situation. If venturing into the community, always use prevention devices (e.g. masks) such as those made available in the ToolKit that Microbix has ordered for its employees.
- Everyone should get an annual flu vaccine to protect against normal flu infections. While this will not protect against avian flu, it can reduce the strain on the health care system and free-up resources to deal with a potential pandemic.
Microbix has posted their Pandemic Response Plan on their Web site and is encouraging other companies to access it free of charge. As part of the plan, Microbix has arranged to have VWR International, a major, international laboratory and healthcare supply company, assemble and distribute a ToolKit with supplies (e.g. masks, gloves, etc.) and step-by-step information that will help protect families and individuals from contracting the virus in the event of an outbreak. Microbix has placed an order for 200 kits to distribute to its employees.
There are four elements to Mircrobix’s Pandemic Response Plan:
- Steps employees can take to protect themselves;
- A ToolKit containing supplies needed to help minimize the risk of contracting the virus;
- Measures a company can take to manage its business during any disruptions; and
- A pledge to work with customers to minimize interruptions in the supply of products.
To access the Microbix Pandemic Response Plan or for further information on the ToolKits, go to www.microbix.com and follow the links to the Plan. Those companies wishing to copy the plan may do so with the permission of the company. Requests can be emailed to Microbix at microbix@microbix.com.
Background
What is the Bird Flu?
The deadly H5N1 influenza virus is found in many types of poultry and other bird species. To date, there have been 160 recent cases worldwide where humans have contracted the virus by infected birds. Eighty-five of those have died. As of today, there have been no known cases of human to human spread of the disease. That’s what authorities fear the most.
Is there a Vaccine to Protect against the Bird Flu?
There is currently no vaccine for this disease and it may be several years before a vaccine can be developed.
Are there drugs available to treat the disease?
There is no cure for the avian flu. Tamiflu™ Roche is the best drug available to combat the common flu, however, it has not been proven effective for the bird flu.
How quickly will the disease spread if there is an outbreak?
There is no certainty on the scale of a possible pandemic, however, given that people are most contagious a day before symptoms surface and with the extent of international travel, some predict it could be as quick as a few days to overwhelm the healthcare industry in every country affected.
If you would like some guidance on business interruption planning, please feel free to contact Don McGowan at McGowan Insurance Services Ltd. at 1-800-749-7549.
Disclaimer:
The opinions and advice in this e-News Bulletin are provided
for the general guidance and benefit of McGowan Insurance
Services Ltd. customers based on information we believe to
be accurate. We cannot guarantee its accuracy or completeness
for individual circumstances. While we strive to provide reliable,
informative material herein, we cannot account for all industry
conditions and legislative changes that occur. |
