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Law on banks : The brokers of Canada will closely monitor the fintechs

by

Hubert Roy

29 October 2018 13:30

Chris Floyd

Theinsurance brokers Association of Canada (IBAC) is pleased that the federal government has extended until 2023, the provisions which prevent banks from selling insurance in their branches or through their Web sites.

The association does not lower the guard so far, has ensured its new president, Chris Floyd, in an interview to the Journal of the insurance. It will closely monitor how fintechs are scheduled. The ACTA account ensure that they comply with the spirit of the laws in force.

“This separation is important to the consumer, so that no one tries to sell him insurance at the same point of sale where he shared the credit. The world is changing, but the principle should remain with the emergence of blockchains and fintechs. It keeps an eye on everything that touches the notion of open banking and that could affect the separation between insurance and credit, ” said Mr. Floyd.

To hear the voice of the consumer

How ACTA will react to it if the Google and Amazon of this world and attempt a breakthrough similar to that of fintechs in the market of damage insurance ? It will all depend on how they are trying to enter, said Mr. Floyd.

“It is expected that regulators will follow this closely. We would not object to fintechs, or the arrival of tech giants in the insurance market. We want to ensure, however, that the consumer voice is heard in this conversation. “

A strategy in four pillars

Since her arrival in this position, Mr. Floyd has been working to promote the four pillars of the board of directors of the Association deems important, is the education of brokers, the technology, the identity of the brokerage and the defence of the interests of brokers with governments. A first milestone has been reached in this direction with the adoption of the new identity of the bipper, the symbol of the brokers.

“We are refocusing our strategy to remind consumers that when they contract insurance, they may have access to people who can offer them more than a choice. It invites consumers to take a break when they do their shopping for insurance and to call a professional who can explain the choices available to them. It does not change the strategy we have adopted with mps. We would like to go a step further by bringing the consumer to understand who are the brokers and what they do, ” says Mr. Floyd.

The technology and the climate among the concerns

The interview was conducted by the Journal of the insurance with Mr. Floyd took place on 19 October, while was coming to an end the convention of theinsurance brokers Association of Ontario (IBAO). Mr. Floyd points out that the dealers present had three major concerns in mind : the state of the automotive market of the province, the climate and technology.

“The brokers have not seen the market harden in this way since 2002. For many, it is something completely new, ” he says.

The particularities of Quebec

Mr. Floyd also said to regularly speak to brokers in Quebec. Their concerns are the same as their colleagues elsewhere in the country, ” he said.

“The dynamics of the market, however, is different in Quebec, with the strong presence of direct writers in personal lines and players, such as the Desjardins Movement or The Capital. It is difficult for them, but the brokers still have a very nice place. Brokers remain the first choice of the customers in Québec in terms of market share. It does not neglect this particular. It must also be remembered that Wawanesa has decided to abandon the direct distribution to focus on the brokerage, ” he says.

Brokers in Quebec will also meet with Mr. Floyd next week, then it will be present at the congress of the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ).

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