Quebec’s financial regulatory body warns against peer-to-peer insurance

All companies offering insurance in the province must be licensed with the AMF

Quebec’s financial regulatory and oversight body is warning the public against peer-to-peer risk sharing platforms.

Read: Peer-to-peer insurance is changing the broker’s role

The Authorite des marches financiers hasn’t yet decided on the compliance of risk-sharing apps and websites, but points out customers may lose money if the risk pool isn’t sufficiently funded or other participants refuse to pay claims.

“…In the event of insolvency,” the AMF said in a statement, “losses would not be covered under current compensation regimes, since they only protect consumers who have taken out insurance from an insurer licensed with the AMF.”

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