Not only do Canadian brokers serve as a lead driver of positive economic gains, but they also act as a “critical backbone” for many communities, serving as both consumer advocates and philanthropic leaders, according to a new study released by the Insurance Brokers Association of Ontario (
IBAO).
“We’re very active in the communities that we do business in,” said Michael Brattman, president of IBAO. “What stood out to me is that over 7.2 million policyholders are serviced through the broker channel.”
As a result, that channel is a significant contributor to provincial employment, employing 17,898 licensed brokers in the province, as well as 2,355 accompanying support staff. But the association also found that virtually all brokerages maintain some degree of active engagement with the communities in which they operate.
“Another thing that stands out is community involvement,” said Brattman. “100% of brokerages are involved in community organizations, which shows that being active in the community is another thing we do well, and that goes a long way to building relationships with clients and consumers.”
This participation extends into the philanthropic arena, with Ontario brokers committing an average of 4.4% of their annual income to charitable enterprises.
This commitment to public service has an added benefit of offering positive returns for insurance professionals. Ontario brokers experienced a 4.8% increase in market share between 2014 Q1 and 2015 Q1, which Brattman partially attributes to strengthened broker-client communication channels.
“People are seeing the value that brokers bring, particularly now that we’ve had new auto reforms introduced in the last budget,” said Brattman. “I think that’s where we add value as advocates on behalf of customers to ensure that they understand coverage options and feel secure knowing that whatever coverage they have is best for their needs and continues to be affordable.”
He does recognize, however, that the industry faces challenges relating to talent shortages and technological advancements, and hopes that IBAO members can become more competitive in providing services outside of the traditional 9-5 work hours. Still, he foresees a promising future for Canadian brokers.
“If we look at how we’ve been able to pick up 4.8% of the market share over the past year, a lot of that was through trying new things and not just being an advocate in product knowledge, but in communicating with clients in whatever space they need,” he said. “I think it’s a great time to be a broker, and our future will be bright as long as we continue to evolve, try new things and grow that channel.”
