Job prospects for insurance brokers

Job prospects for insurance brokers

Job prospects for insurance brokers

Service Canada deems the job prospects for prospective insurance agents and brokers in Quebec to be ‘fair,’ noting the impact of technology may offset expected job gains due to projected growth in the province’s insurance market.   

Service Canada provides access to a wide range of Government of Canada programs and services. In addition, it provides information about job prospects in a variety of industry sectors. In an online posting, it rates the prospects of employment for insurance brokers as merely ‘fair,’ even though there are signs of growth in the province’s insurance market.

“In recent years, the number of insurance agents and brokers has remained fairly stable,” Service Canada notes. “Despite the good level of growth in the insurance market, the computerization of procedures for issuing policies and setting payment schedules has eliminated employment increase possibilities in this category. The increasing use of the Internet by the public means that employment levels should remain fairly stable over the next few years.”

The car insurance market depends mainly on changes in the number of cars on the road, Service Canada notes. In Quebec, this number doubled from 1978 to 2010, for an average increase of 2.2% per year. “This market is therefore a major source of job growth for accident and casualty insurance and should remain so,” Service Canada said in its outlook for the industry.

In addition, the aging population will point to the growth of personal insurance aver the next few years. “Insurance companies are not only seeing the strongest growth in this niche, they are also developing more and more products to meet continually increasing demands for health care,” the outlook said.

Growth will also be seen in the areas of E&O professional liability, machinery breakdown, marine, and aviation insurance.

And yet, despite the growth, technology will create more opportunities for insurers and direct writers than it will for brokers, Service Canada predicted. It noted barely half of consumer insurance in Quebec is now distributed by brokers, down from 85% some 20 years ago.

“This growth may not generate new jobs for insurance agents and brokers,” said Service Canada. “A growing number of consumers are using the Internet to shop and learn about individual insurance products, both in loss insurance and personal insurance….

“Since these consumers evaluate the insurance products themselves, they have less need for the services of brokers. This behaviour should thus favour insurance companies to the detriment of agents and brokers, and insurance underwriters more than agents and brokers.”