RBC Insurance Class Action

Cove has been engaged in ongoing discussions with RBC Insurance (RBCI) about the management of the cash value of our clients’ RBC Security Fund policies (RBC SF). Our conversation with RBCI began with an intention of gaining clarity around the dramatic decrease in the credited rate to the policy for 2023. It began in November of 2022 when RBCI disclosed the credited rate that would apply to RBC SF policies for calendar year 2023. The aim of our enquiry was to gather relevant information, that accurately reflected RBC Insurance’s practices around the management of policy cash values and share it with you.

Our first request for information sent directly to RBC Insurance was on March 27, 2023. Our requests for information were made consistent with RBCI’s obligation to disclose information as outlined by the Canadian Council of Insurance Regulators Guidance Conduct of Insurance Business and Fair Treatment of Consumers guidelines. We felt that RBCI was not meeting their responsibility because of their unwillingness to provide clear and satisfactory answers to our enquiries regarding the management of our clients’ policies. Since this initial enquiry our focused shifted from the management of the underlying funds to the undisclosed fees charged against the policy accounts that came to light during our enquiry. You can find more information about the content of our discussions here.

On May 23, 2024, a client of Cove Continuity Advisors filed a Notice of Civil Claim with the Supreme Court of British Columbia against RBC LIFE INSURANCE COMPANY doing business as RBC INSURANCE and ROYAL BANK OF CANADA.

This is an intended class action in which the proposed class is comprised of holders of RBC Security Fund policies sold and managed by RBC Life Insurance Company (“RBC Life”). Full details of the action are contained in the Notice of Civil Claim which can be viewed here.

This class action is being undertaken on behalf of all RBC Security Fund policy holders by the representative plaintiff. There is no further action required by you if you belong to the class. You may opt out of the action, as permitted in British Columbia, but you do not need to do anything to be included. You are automatically included in the class action if it is certified by the court, but you offered the option to opt out at the time it is certified. And if you have any questions, you are always free to call us.

Legal counsel representing the plaintiff are David Rosenberg and Dulcie Jones of Rosenberg Law. David has extensive experience in litigating complex cases at all levels of the courts. In addition, he was appointed Chairman of the BC Task Force on Bank Mergers by the BC Provincial government to report on and provide recommendations on proposed bank mergers. Rosenberg Law is highly qualified to provide expert representation on behalf of the plaintiff in the claim against RBC. You can read more about David, Dulcie and Rosenberg Law here.

Cove Continuity Advisors is committed to supporting clients by providing transparent and accountable products and services. To that end Cove will provide expert testimony and advice to the plaintiff and their counsel in this matter as requested. As a Certified B Corp, we are committed to upholding the highest standards of business practices and ethics. This action speaks directly to the need of strong legislation and regulation directed at increasing transparency and accountability within the Canadian life insurance industry. Our hope is that there will be lasting positive outcomes resulting from this action that will benefit all Canadians in addition to repairing the damage done to RBC policy holders.  Cove is a signatory to and champion for the 21^st Century Better Business Act initiative spearheaded by Senator Julie Miville-Dechêne.

To follow further developments relating to this action visit our dedicated webpage here.