Newfoundland Credit Unions to Offer Life Insurance in Branches

Newfoundland has passed Bill 11 which gives credit unions the authority to offer life insurance products (including disability insurance, annuities and segregated funds) to their members. Employees of credit unions selling life insurance would be required to obtain all industry licenses. Credit unions requested the expanded business authority to provide a broader range of financial services to their members and reduce their operating costs by not having to maintain separate physical premises. They also commented that it would increase competition and choice for consumers especially for those who reside in rural communities. Credit unions have noted to the government that this proposal would level the playing field with their insurance company competitors who offer a complete range of financial services such as mortgage and consumer loans, chequing accounts, term deposits and registered plans.