Government steps in as public insurer locks horns with broker association
Brokers are concerned about the impact move would have on their business
Government steps in as public insurer locks horns with broker association
INSURANCE NEWS
By Lyle Adriano
28 Mar 2019

To allay concerns regarding Manitoba Public Insurance’s (MPI) plan to allow online auto insurance purchases – which local brokers claim would hurt their business – the provincial government has issued a statement saying they have not given the Crown corporation any such directive.

However, Manitoba minister of Crown services Colleen Mayer did not completely rule out that such a directive would be offered in the future.

“What I am going to say about this matter is I encourage brokers and the MPI to work together for the betterment of Manitobans,” Mayer told the press in an announcement.

“That’s cost effective rates, that’s better service. I believe that both parties can work together to find a solution that will serve Manitobans.”

The minister approached the media following last week’s confrontation between MPI’s board of directors and the Insurance Brokers Association of Manitoba (IBAM). MPI had proposed allowing more online auto insurance transactions – something the IBAM warned could exclude local insurance agents and brokers.

IBAM’s CEO Grant Wainikka told CBC News in a previous statement that MPI’s proposed modernization plan to allow more online insurance sales “throws off” the delicate balance brokers maintain with the Crown corporation.

“Anything that is done that throws that balance off could have very serious ramifications for the broker channel in Manitoba and we’re obviously fighting that,” Wainikka said.

Read more: Worries that online move could lose brokers jobs

When asked earlier this week if IBAM is working to stall MPI’s efforts, Mayer offered assurances that was not the case.

“I want to put on the record, be very clear, that brokers are small business owners in this province, and are a key component to our economy. They’re very important in this province, and we want to ensure that all those voices are heard. That’s why I’m encouraging continued negotiation.”

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