March 13, 2018 07:00
Michel Laurin | Photo : Denis Méthot
Even if Michel Laurin presides over a direct insurer, it does not hide that he sees a value added to the role of the broker. It has made their praise on the parliamentary commission on bill 150.
«The models of distribution through brokers or by direct both have their place in the market,» said the president of the Corporation of the insurers direct de dommages du Québec (CADD) in front of the Committee on public finance and to the Quebec minister of Finance Carlos J. Leitão. Mr. Laurin is also the chief operating officer ofiA Auto and home.
«There are clients who do business with brokers. It is perfectly legitimate, says Mr. Laurin. They will still want to get the value-added of a broker. It recognizes it, it is in the right in the market. «
After the flowers, the pot. Mr. Laurin stated that the broker must be transparent. He continued by extolling the benefits of the model of direct distribution, but also those of the broker.
«The advantage of direct, it is the operational efficiency. The downside, is that it presents the product of a single insurer. The advantage of the broker, it is insurers, potential, likely to a operating efficiency a little lower, but value added in the shopping. «
«Brokers will continue»
There are customers for both models, he concluded on this issue. «Both are noble, and they will continue. Please note, however, that the two models are transparent and clear to the consumer and that there is no perception of shopping while there isn’t a side. It will just bring back the same level of play for both sides «.
The CADD is, however, opposed the argument advanced by groups representing the brokerage that bill 150 would give a competitive advantage to be too great for the insurers, and that its main beneficiaries would be the large players in the industry.
«As written, the proposed law has as its primary beneficiary is the consumer. Not direct insurers, » said Mr. Laurin.
According to the latter, the rules of the game are not the same for all players in the industry. Direct insurers, he reminded the elected officials, have the obligation to disclose to their customers the fact that the agent represents only one insurer and can only offer the products of only one insurer.
«Our members are clear and transparent. When a customer does business with a broker, his expectation is that this is an intermediary who shop from multiple vendors to provide multiple options, » said Mr. Laurin.
Ask for the butter and the butter’s money
For the CADD, the bill brings transparency to a fair level between direct insurers and for insurers to brokers or dealers themselves. «Wanting to maintain the status quo is to ask for the butter and the butter’s money. It wants to present itself as an intermediary that shopping around with different insurers and on the other hand, have the operational advantage to only deal with a single one. We think that, on the contrary, the rules are now unfair to the detriment of insurers «.