IBAO wants brokers to explain insurance basics to Ontario political candidates
Published: May 28, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Car Insurance
Ontario’s provincial elections on June 7 will have a strong focus on auto insurance, but all insurance will be a key party battle during the campaign. A former head of the brokers’ association in Ontario says brokers in the province should prepare to explain basic concepts about property and casualty insurance to political candidates.
Rodney Hancock, CEO of McFarlan Rowlands Insurance Brokers Inc. and a former president of the Insurance Brokers Association of Ontario (IBAO), said most election candidates “don’t have any idea” about Ontario’s role in governing auto insurance price and policy wording. He says the IBAO has already asked him to meet with one candidate to offer basic information on insurance.
“What I emphasize is, the auto product is something that everybody has to buy, there is no choice about that and it’s all regulated by the government,” said Hancock, who served in 2008 as IBAO’s president.
IBAO wants brokers to meet candidates “to explain what the association does, talk about the auto product, the relationship between brokers and insurers and the Financial Services Commission of Ontario with respect to the auto product,” Hancock claimed.
The association wants a broker to meet every candidate to explain some basics of the industry. For example, candidates will be told the difference between agents, direct sellers, and brokers. It seems auto insurance will play a role in this election, but Hancock says few politicians understand the market.
Auto insurance “always seems to come up as an election issue to a certain extent,” he said. “Most people don’t understand how that process works.”
“Most people don’t know that – that the rates are filed and then the government decides what the increase or decrease is going to be,” Hancock said.