The Insurance Brokers Association of BC (IBABC) has acknowledged the results of a recent report which measures the economic and social impact of P&C insurance brokers across Canada.
The report was published by the Insurance Brokers Association of Canada (IBAC), with Deloitte Canada tapped to help analyze the economic contribution of the insurance brokering industry to both the national and provincial economies.
According to the report, insurance brokers that are members of the IBAC contributed about $5.4 billion to the national GDP. Of that amount, approximately $3.3 billion was contribution to labour income. The national brokerage industry also sustained an estimated 58,300 FTE (full-time equivalent) jobs, which meant every dollar spent on broker business activities generated about $1.49 in total GDP in Canada’s economy.
The report also went into detail regarding insurance brokers in British Columbia. Brokers in the province were nearly on par with the national average, with an estimated $1.43 of value-added to BC’s economy for every dollar spent on capital and operating expenses by member brokerages.
In addition, the report found that the average annual wage in BC’s insurance brokerage sector was $49,000, compared to the national average of $58,300.
IBAC’s report discovered that brokerages in BC were among the highest-ranked in Canada when it came to social benefit statistics. BC brokerages spent an average of $59,798 on direct donations and sponsorships and generated an average $17,662 of charitable donations through fundraisers in 2017.
“Brokers already know the amazing value they bring to their communities and the economy,” said IBABC president Shawn Fehr. “Our member brokers’ involvement in their communities extends much further than the offices where they give customers insurance advice or help with a claim. It’s nice to have that value confirmed by the evidence in this survey.”
Fehr added that customer service is a major part of being an insurance broker, especially in BC – where brokers compete on service, convenience, and expertise.
“Being involved and getting to know the people in your community means you can better help them when they need to come in as a customer,” he said. “I’m proud to see that what we do makes a positive difference in our communities.”
