A professional broker association based in Quebec has issued a statement on an upcoming financial regulation bill, saying that consumers still need the guidance of brokers.
The Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ) reviewed Bill 141, an act that is looking to make several key amendments in financial sector laws. If the bill is adopted in its current form, consumers will be allowed to purchase home or auto insurance online without the involvement of a representative such as a broker.
The RCCAQ considers the legislation a “looming disaster” for insurance customers who might get lost while shopping for deals because they do not have a broker advising them.
“In 2016, a Leger survey1 showed that 76% of Quebecers regarded P&C insurance as complex,” said RCCAQ chair Christopher Johnson. “Although they may make for dry reading, riders, exclusions and other insurance policy provisions constitute essential information that brokers are able to explain to their clients. Our role is to work on consumers’ behalf and defend their interests when claims are submitted to an insurer.”
The RCCAQ warns that consumer bankruptcies and costly court cases with insurers are likely to occur in the wake of the bill’s implementation.
“The government should ensure that consumers have access to a distribution model offering the highest possible levels of protection. For many people, a home, a car and a cottage are among their most valuable financial assets,” remarked Johnson.
