Alberta’s auto insurance troubles are a call for brokers to exercise their role as advisors for both consumers and the government, a Navacord leader has told Insurance Business.
“Every province approaches insurance differently,” said Melanie Muise, recently appointed president, personal and travel insurance, at Navacord.
“I think as brokers, and even carriers, we must help government officials understand that insurance shouldn’t be a political tool. It should be a tool to help to help communities be resilient and grow and prosper.”
The changes in Alberta are noteworthy, according to Muise, who is stepping into a newly created role.
“I think the most important thing is to focus on speaking with the carriers that we work with, where we see representation in Alberta, and making sure we understand their strategy,” she said.
Last month, Alberta’s finance ministry revealed that an auto insurance carrier had signalled its intention to withdraw in November, citing the government’s ongoing rate pause as the reason for its pullout.
The unnamed company holds less than 0.5% of market share in Alberta, which means up to 16,000 drivers would be left without coverage. Several major players have since expressed their continued commitment to Alberta’s auto insurance market despite lingering concerns over the rate freeze.
While the province’s broker association has warned of a potential domino effect among other carriers, Alberta premier Danielle Smith told media she isn’t worried about more exits, but said her government would revisit reforms to ensure the market remains “competitive.”
For Muise, the turbulence is an opportunity for brokers to advocate for clients and understand the current market’s dynamics.
“Luckily, the carrier that’s exiting is not one of the larger ones, and so not creating too much disruption. But there are some clients who are going to be looking for a new home,” she said.
“Every client should be able to find insurance in some way. Helping consumers find their product, and understanding the push and pull between the government, the direct writers, and the broker channel, is going to be important.”
Muise is transitioning to her new role after having served as Navacord’s chief operating officer for the past four years. The creation of the role signals Navacord’s intention to focus on growing its personal lines business, she said.
“I’m excited to dive in and see where I can add my voice,” Muise told Insurance Business. “But I think there’s lots of great voices championing that in Alberta right now, and it’s certainly not an easy subject.”
As COO, Muise was primarily focused on modernizing and digitizing Navacord’s business and is a strong advocate of technology that can help personal lines customers mitigate risk and lower premiums.
“There are some interesting, innovative tools coming out that you can add to your car, such as anti-theft devices and so on,” she said. “That’s certainly an area where claims are impacting clients.”
Larger brokers such as Navacord can help improve the personal lines market across Canada, according to Muise.
“Any big broker that’s coast-to-coast can find ways to reach clients and advocate for the whole industry,” she said. “I think we have an obligation to all Canadians and all brokerages to try to elevate everybody.”
Do you agree with Muise’s perspective on Alberta’s auto insurance market? Sound off in the comments.
