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The instability of night rates to the profitability of the largest insurance companies

by

Justine Montminy

24 July 2018 07:00

Ron Pavelack, Sébastien Gabez | Photo : Réjean Meloche

The industry is often its own worst enemy in business insurance. As soon as she made a little money, the premiums are to depart downward.

This is one of Ron Pavelack, vice-president, Québec, ofStep. «Consumers do not always understand. We do not have consistency in our approach to underwriting and pricing, » he says.

Sébastien Gabez, head of finance ofApril Canada, also saw this phenomenon. «The rates have to adapt in order to that this type of insurance persists. The fare conditions will restrict. The scope of coverage is restricted. Brokers must exercise pedagogy to clients and explain why the premium increases. This is not easy. «

However, the tightening of the insurance market companies involves a lot of extra work, consent of the insurers interviewed by the Journal of insurance. «Brokers should work more and more. It becomes more difficult to keep their accounts «, said Mr. Pavelack.

The first vice-president, Quebec region, of Northbridge, Jean-François Béliveau, is of the same opinion. He also believes that the brokers have the advantage to turn to digital in order to attract the attention and arouse the interest of the client. «Customers are now connected 24 hours on 24. Communications are evolving. If we were a store, the social media would be our window. «He adds that the digital world is changing the approach of brokers to clients, without changing its role.

In order to help brokers to address these challenges, several insurers have chosen to give them more autonomy. They are well trained in this regard.

This is the case in The Single general insurance. When a contractor contacts a broker, the latter can give him a premium that is specific to the end of the conversation, while sending the conditions relating to the contract, » explains Bruno Perrino, vice-president, business insurance.

In Aviva Canada, we are inviting brokerage firms to invest in technical training. «It is like this that they can identify the needs of the client and especially to understand the extent of the guarantees and exclusions provided in the various products «, said Claude Leboeuf, vice-president, underwriting, Canada.

On the side ofIntact Insurance, more than 1,000 people have been trained at the launch of its line of Latitude Business. «We wanted to ensure that dealers have everything they need to properly present the product and sell it. We have created a lot of material marketing that we provide to brokers. It is necessary to work hand in hand with brokers to create products, but also to promote the distribution then, » says Natalie Morin, senior director, business insurance, Intact.

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