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Rule of 20 % : Intact request to the government to create the even playing field for all


Mathieu Carbasse

29 June, 2017 11:30

Jean-François Desautels | Photo : Réjean Meloche

While the world of brokerage will tear around the rule of 20 %, Intact Insurance is urging the government not to encourage a distribution channel of insurance products for the benefit of another. In the memory that he has sent lately to the government of Quebec, the insurer, who has already spoken in favour of the abolition of the limit of 20 %, argues in effect for » a legislative environment where each competitor can compete on equal terms «.

Welcoming the government’s decision to launch a consultation on the future of the brokerage in damage insurance, Intact is thought that » the current situation highlights the competitive advantages available to direct insurers, which have significant resources to invest in new technologies and marketing tools versus the difficulty of the brokerage firms to take advantage of similar resources from an insurer without the risk of not being considered a broker.»

«Create a level playing field»

«It is imperative to amend the legislative framework so that the firms of brokerage are able to access the resources that make the success of their competitors and are essential to their vitality, one can read in the conclusion of the memorandum signed by Jean-François Desautels, senior vice-president, Quebec Division. This would create a level playing field where the brokerage firms, by playing their cards right, will occupy a key role in the maintenance of a diversified offer and relevant to the consumer while continuing to create quality jobs in Québec’s regions. «

The insurer argues that an entrepreneur must have the freedom to choose the business model that suits him at different stages of the evolution of his company. He said he was in favour of a modernisation of the definition of the title of broker, to ensure that it continues to evolve.

«The rule creates more barriers»

In addition, Intact reiterates its position vis-à-vis the rule of 20 % that it demand the abolition, because it thinks that it will create more obstacles in the future for the brokerage firms that are searching for the resources needed to modernise, be competitive or to ensure an inheritance for their business.

«In a more specific way, in a legislative framework, without limitation, the insurers will benefit, without reservation, the brokerage firms of many technological resources, be it mobile applications, mégadonnées, or a variety of marketing tools which are likely to enable brokerage firms to compete in a more robust and meet the needs of the consumer «, yet the memory Intact.

Facilitate succession

Finally, We think that the support of an insurer to the estate plan of a brokerage firm is often of a nature to facilitate a smooth transition in bringing stability and the necessary investments. The prospect of forging a partnership without limitation with an insurer would make the idea to resume or establish a brokerage firm, a choice much more attractive to a young entrepreneur, according to the insurer.

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