Aviva Canada is urging Quebec’s provincial government to continue limiting insurance brokerage ownership to 20%.
The insurer claims the limit reduces the potential for conflicts of interest and enhances consumer confidence in the insurance industry.
“It is the responsibility of the Quebec government and the insurance industry to work together to ensure consumers are protected and treated fairly,” said Aviva senior vice-president, Quebec Region Martin-Eric Tremblay.
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“The 20% ownership limit provision enables the Quebec government to achieve these objectives without hindering a robust and competitive insurance marketplace that offers widespread consumer choice and protection.”
Tremblay added: “We are calling for laws and rules which maintain the 20% ownership limit as well as promoting fairness, transparency and confidence in the marketplace. A change to this rule could reduce the number of insurers, impact the variety of products made available to consumers in Quebec and unduly increase premiums.”
Aviva Canada recommended a three-point plan to ensure the province’s customers are protected and treated fairly:
- The 20% ownership limit rule should be maintained and further revised so that the ownership stake is calculated based on the total ownership by all affiliated or associated companies of a particular insurer.
- Brokers should be required to disclose to consumers at the time of quotation or renewal any factors that may influence the broker’s choice of insurer. This would include, for example, ownership, incentives, financing arrangements, percentages of the broker’s business placed with the insurer and the number of insurers canvassed before offering a quote.
- An intermediary that holds itself out as independent should be required to give a consumer quotes from at least three unaffiliated insurance companies so that the consumer has a real choice to make. Furthermore, business titles should adequately describe an intermediary’s independence. The distinction between agent and independent broker should be maintained.
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