January 15, 2018 07:00
The general trend of consolidation in the industry, whether through brokers or insurers, also affects the insurance market of medium-sized companies (mid-market).
A phenomenon that has noticed Dean Grigoruk, vice-president, Quebec and the Atlantic provinces, in the NAC. «For the past three years, among all firms with whom we do business, 17 of them have taken part in activities of a merger or acquisition. Of these 17 firms, only seven remain today. «
All the mergers and acquisitions of brokerage firms prove to be a double-edged knife for the NAC. «Sometimes, this leads to a loss of volume, sometimes gain, and sometimes there is no change,» said Mr. Grigoruk. This is neither good nor bad for us. However, there is no shortage of capacity or of players on the market. «
Mr. Grigoruk also indicates a high concentration of volume in two or three insurers, a peculiarity of the quebec market, » he said. Something that is not found elsewhere in Canada.
«The independent brokerage is different in Québec than in Canada. There are far fewer brokers truly independent, » he adds.
Paul Lucarelli, vice-president, commercial insurance, RSA Canada, claims that the insurers take back to the corporate mid-market by storm. «The ability for insurers to direct us in the market are present. This will not happen in the immediate future. The limits will begin to become unclear and the industry will grow in the direct of our side. We are excited to grow our expertise in the sector. We believe that brokers are the best to serve medium-sized businesses. «
Mathieu Gagnon, broker and vice president at Vézina Assurances, points out that insurers begin to leave the market of small businesses, and explore that of large enterprises by increasing their premiums. «They position themselves and make a choice. The market is split in two, and the number of insurers that are on the two markets is less great. «