The coronavirus pandemic has already had an impact on the broking industry in Canada, with brokerages moving to remote work, relying more on digital tools than ever before, and helping their clients navigate the crisis. However, the outbreak will also likely have impacts on brokerages over the long-term as well as the insurance industry more broadly, though it remains to be seen how these impacts will play out.
For instance, the switch to remote work and the digitization of services may have been an enforced move for some businesses, but has it also potentially opened opportunities and cost savings? How has the crisis redefined the broker-insured relationship or revealed areas for further development, such as providing education on what's actually covered under policies like business interruption?
Executives at the Insurance Brokers Association of Ontario (IBAO) recently provided their predictions on the long-term impacts of the coronavirus. Here are their thoughts:
Joseph Carnevale, President
“This pandemic has sped up the pace of change. The uptake on consumers downloading broker apps and communicating in creative ways has increased substantially, and brokers have been handed an opportunity to deliver on these changes. Some brokerages will excel and some won’t. Some will chase the consumers demanding these changes and some will maintain status quo. Some will reach out to their clients in a proactive manner of service delivery wherever possible and some won’t.
“These are the same challenges we saw pre-pandemic, but they’ve advanced five years. Brokerages need to take the opportunity to reflect and ask themselves a few key questions: Did I deliver what my clients were looking for when they were in need? Can I improve our delivery model? Are my current clients enough, or do I need to expand my client base to grow?”
Jeff Gatcke, Chair
“It’s different for every brokerage depending on the degree they rely on digital presence to drive growth. Having staff work remotely is a big challenge for rural brokerages whose employees don’t necessarily have consistent access to high speed internet. At the same time, this experience has cracked open the door for more staff to work remotely, which allows for further expansion without investment in bricks and mortar. The key will be to balance our business strategy of face-to-face meetings with this new reality of working remotely.”
Monica Dale, President-elect
“Through all of this, it’s become very evident that further development is required on a technology strategy for the insurance industry. A tech solution has been on the wish list a long time, with some interest and activity taking shape over the years. Moving forward, making this solution an absolute priority would be the most beneficial activity the industry could undertake – the time and cost savings that could be afforded are invaluable and crucial for the promising future of the broker channel.”
Greg Kruk, 1st Vice president
“The pandemic has made it even more evident how important it is to support the people that support our businesses, many of which have had to reduce their offerings or close their doors altogether. As a brokerage focused on numerous communities across the province, we try to support our clients as much as possible. If our clients have to close their businesses, we no longer have a brokerage to operate. So, we’re finding new ways to support them including:
Brett Boadway, Chief operating officer
“If done well, the post COVID-19 world provides an opportunity to attract a wave of contemporary talent to the broker channel. Many economies (hospitality and gig come to mind) will experience employment loss, and these individuals will be looking to join industries with stability. Brokerages willing to position themselves as attractive work environments for creative and innovative talent should capitalize on the availability and inevitable supply.”
