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Group insurance is one of the products more transparent, said the study of CIRANO


Andrea Lubeck

8 September 2017, 07:00

Photo : Freepik

The Association québécoise des pharmaciens propriétaires (AQPP) is to use the study that it has paid at CIRANO to raise the lack of transparency of insurers.

The results of a survey, Leger Marketing, conducted within the framework of the study, are struggling to demonstrate that the customers of private insurers believe this lack of transparency.

The CIRANO referred to the obligation of transparency between insurers, brokers and customers. The results of the survey reveal that more than 80 % of insurers have an obligation to disclose the amount of the benefits by type of protection offered [… and] to provide explanations when the amount of the premiums will change «. Also, 60 % of respondents said that their contract provides for the disclosure of the percentage of premiums for administrative costs. With respect to the compensation of the broker-dealers, 53 % of them reveal the percentage of commission on the total premiums that is offered to them as compensation. Nearly 40 % of respondents don’t know the mode of payment for their dealer.

On the other hand, the pollsters have queried respondents on the specific information contained in their contract. When asked if they knew the total amount of premiums paid for group insurance, 33 % of respondents were unaware of, and this rate rises to 76 % when it comes to total benefits.

«Despite this gap, most respondents consider that they have sufficient information to understand the group insurance contracts «, concluded the authors of the report on the data. They are surprised that over 50 % of employers consider themselves to have sufficient information about their collective insurance.

«The Leger Marketing survey conducted in the framework of the study reveals that clients, employers, say they have enough information, and that they did not have the answer to a specific question about numbers. Their analysis is that the respondents misunderstand the plan, it is a thing separate [that the fact of not revealing the figures of the regime]. This is not because a human resources representative or the president of a company does not know what is his coinsurance that does not mean that he was not told or that the information is not accessible to them, » says Lyne Duhaime, president ofCLHIA Quebec.

She adds that insurers are required to produce documents showing the experience of the plan. They state, among other things, an increase or not of the premiums.

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