By: Luke Jones, Published on February 25, 2018 05:12 PM, Last Update on February 25, 2018 02:13 PM
A professional broker association from Quebec has issued a stark warning to insurance companies and brokers. Speaking about an upcoming change to regulations in the province, the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ) says customers will still need the help of insurance brokers.
Bill 141 would introduce several changes to Quebec’s insurance regulations. One significant change will give consumers the power to purchase home and auto insurance online without needing a broker.
The legislation could prove disastrous for the brokers industry in Quebec, but the RCCAQ insists customers will still be best served by working with a professional. The association says customers could face financial problems and could be confused by online deals if they do not have advice from an insurance expert.
“In 2016, a Leger survey1 showed that 76% of Quebecers regarded P&C insurance as complex,” said RCCAQ chair Christopher Johnson. “Although they may make for dry reading, riders, exclusions and other insurance policy provisions constitute essential information that brokers are able to explain to their clients. Our role is to work on consumers’ behalf and defend their interests when claims are submitted to an insurer.”
Customers could be out of their depth and the RCCAQ even suggests consumer bankruptcies could happen if brokers are removed from the insurance buying equation.
“The government should ensure that consumers have access to a distribution model offering the highest possible levels of protection. For many people, a home, a car and a cottage are among their most valuable financial assets,” remarked Johnson.