More than two-thirds of Alberta’s drivers report feeling “in the dark” about their insurance policies, and about half are unaware how a collision or infraction would impact premiums, according to a new survey conducted by Esurance Canada.
But while the online direct-to-consumer insurance provider believes that its online tools can offer the solution needed to bridge this knowledge gap, industry professionals are skeptical that a website could act as a substitute for the multitude of roles that brokers play in educating and advocating for consumers.
“I think this does a disservice to both the independent agent market and to consumers,” said Linda Operle, account executive and broker, The Insurance Source, Inc. “It gives a false sense of what they’re buying and how easy it should be, when in reality, there’s so much more to it.”
Operle notes that she not only studied for years to excel in her position, but that the learning process continues on a daily basis as markets and coverages evolve. Clients who sidestep brokers often miss out on these valuable insights, and then walk away with inadequate policies.
“It’s scary for consumers, who buy a product and then have a loss and realize, ‘oh I didn’t know I needed to have coverage for that’ or ‘I didn’t know that’s what it meant’ or ‘That’s what I thought I bought,’” Operle continued. “They often think that anything that could possibly go wrong with a car or home will be covered by their insurance policies.”
In addition, Operle believes that one of the services her policyholders appreciate most is one a website could never provide: lobbying on their behalf against “the big bad insurance companies.”
“They tell me, we could have called ourselves, but we don’t know what we’re talking about and we don’t know how to fight them or stand up for ourselves,” she said.
She also doesn’t believe that “Millennials” will take the time to educate themselves about insurance online, nor will consumers who are overwhelmed by family and work responsibilities.
Operle doesn’t disparage technology, however. She just believes it should complement broker services - not replace them.
“We all partner with products, services and delivery methods, but it’s a partnership,” she said. “I want to see more messages from tech companies who seek to partner with independent agents and brokers to deliver faster and more streamlined products, not tech companies who try to educate the public and sell their own policies. That’s a bad message, but partnership is a good one.”
