With concerns that Manitoba Public Insurance’s (MPI) move to allow online insurance transactions could push brokers out of the picture, the insurer has issued a statement saying it would never try to replace the role brokers play.
MPI media relations coordinator Brian Smiley explained that buying insurance online or working with a broker is still entirely up to customers, and that MPI is not taking that option away.
“Online delivery wouldn’t be exclusive with MPI,” Smiley told Pembina Valley Online. “We know brokers are extremely valuable in our business transactions, they’re the frontline counter who meet our customers and we know some of these transactions can be complex.”
Smiley added that instead of replacing brokers, MPI wants to augment their services through offering online transactions, especially after many customers have said that they want to purchase insurance online. The addition of online services will also allow customers to change their deductible or buy rental car insurance when out-of-province.
The Insurance Brokers Association of Manitoba (IBAM) still has reservations about how online transactions will be handled, and is of the belief that the online option may bypass brokers. IBAM CEO Grant Wainikka even reasoned that without brokers, customers might potentially make poor insurance decisions.
“Our research tells us that most Manitobans don’t have a very thorough understanding of things like third-party liability or maximum insurable value or things of this nature,” the CEO said. “It takes a professionally-trained and licensed broker to make sure the decisions that Manitobans are making are the correct ones for them.”
Smiley offered assurances that any changes the MPI makes, including the launch of online transactions, would be made in partnership with brokers.
“MPI is not looking to do this exclusively, we want to do it in partnership with the autopac agents,” Smiley explained, adding that brokers are helpful in guiding customers when it comes to terminology and complex services.
The insurance representative added, however, that “other customers have educated themselves and are able to make that transaction online.”
Smiley conveyed that MPI remains committed to working together with autopac agents “for the betterment and, most importantly, the convenience of our customers.”
