3 July 2017 11:30
André Lussier takes a position in the debate around the rule that restricts the participation held by an insurer in a brokerage firm. The chairman of the board of Lussier Dale Parizeau calls for the rule of 20 % is maintained.
And his position is also that of his company, he mentioned in a dispatch for the Journal of insurance. While everyone is free to choose the business model that suits him, I am proud of the independence of Lussier Dale Parizeau and the fact that no insurer holds an ownership share in our firm or legal authority in its management «, says Mr Lussier.
«The consumer gains nothing except confusion»
He continues by noting that when the rule of 20% has been put in place in 1988, she was made to avoid that brokerage firms pass into the hands of multinational corporations. «Many will argue that this rule has not prevented some movements, but the problem is rather in the application of the rule ? The abolition of this rule is intended to control the distribution, but that is it for the consumer ? There won absolutely nothing. The advantages mentioned for the abolition of this rule are only favourable for the insurer and the firms in which insurers have equity. The consumer gains nothing except confusion «, says Mr Lussier.
«What distinguishes us»
He adds that when a consumer chooses to do business with a broker, he expects to get advice on the various products offered by several insurers. «It is precisely this that distinguishes us, compared to insurers. Our skills and expertise we continuously develop by trading freely with several insurers are one of our strengths. For this, we need to remain independent. We need to be independent also at the level of the management of our firms. The survival of a network of distribution box is the main issue. «
Mr. Lussier said, and believe that the rule of the 20 % protects the consumer. «It allows for a healthy competition. It also enables brokers to offer products corresponding to the needs of their clients, at the best price and with objectivity. «
Assume their choices
The chairman of the board of Lussier Dale Parizeau continues his letter by questioning the true motives of those who call for the abolition of the rule of 20 %. Mr. Lussier appointed, however, not in its letter. By his words, we see, however, that it is addressed to the members of theAlliance for a brokerage stronger, which demand the abolition of the rule of 20 %, but also at Intact Insurance, which is at the origin of the current consultation.
«We have made progress over the decades through numerous acquisitions funded by insurers, who have never demanded to be shareholders in our firm or to have a look on our management. This has allowed us to become the largest firm of insurance to the province while maintaining our independence. Other firms have carried out many of the transactions funded by an insurer which has required the shareholders and a right of scrutiny on management. It is their most basic right. They must assume their choices of the time «, says Mr Lussier.
To maintain its independence
He adds that it is possible for a broker to keep its independence with the support of the insurers in the current context. «The revision of the law 188 will certainly be changes and challenges that we face. Our business environment evolves and changes, but the 20% rule and the independence of the firms should remain. This rule does not exist in the other provinces since the stakes are not the same as here.
«I join my voice to those of the firms that want to remain independent and those of Aviva, RSA, The Unique and Promutuel, of the insurers that we represent and that have manifested themselves in favour of retaining the rule. These insurers, and several others that we represent offer us their support to deal with the insurers direct, both on the strategic and financial terms, and this, independently. «