As we all know, our industry is grappling with a number of challenges. The RCCAQ wanted to find out what the most important issues facing brokerage firms were, so we interviewed three brokers. Their concerns were broadly similar and will be taken up during seminars, workshops and discussion panels at the RCCAQ's upcoming convention.
Next generation of insurance brokers
For Lucie Fréchette, CEO of Leclerc Assurances et Services Financiers Inc., grooming the next
generation of brokers is a major challenge facing our industry. Needless to say, she intends to raise this issue with her colleagues at the RCCAQ's convention. “I always find it extremely valuable to talk with people from other firms at the conventions. The seminars shed light on industry issues from various angles, which helps keep us on track. This year, however, I will be attending with a very clear goal in mind: to discuss the next generation of leadership with my colleagues so we can put together an action plan aimed at promoting our profession more effectively, particularly since it is quite low-profile despite the many opportunities it offers,” notes Lucie. In her view, growing numbers of professions are set to experience similar problems; what we're seeing in the brokerage sector is really only the tip of the iceberg. This means that the entire industry will have to come together to tackle this issue effectively.
Technology: a top priority
Lucie is also concerned about technology: “Understanding what our firms really need in terms of technology is no easy matter," she says. "What trends should we be anticipating? What are the best strategies in this regard? At my firm, we stay on the cutting edge but you can never let yourself fall behind when it comes to technology.”
Maxime Poulin, executive vice-president and partner at Groupe Ostiguy & Gendron takes this idea even further: "Any firm with growth plans for the next 10 or 15 years has to invest in technology. It's an absolute must.”
Regulatory framework could be upended
But the topic of greatest concern to Louise Mathieu (title ) is regulatory change. For Louise, this topic covers so many separate current issues that the scope of the changes that could be involved should not be disregarded. The recent tabling of Bill 141, which is slated to replace Bill 188, is a prime example: “The minister is talking about incorporating online insurance sales into this legislation, which would have a significant effect on brokers across Quebec. There are other issues as well, including the provincial government's consultation last spring on ownership regulations for brokerage firms and the consultation underway concerning incentives. At this point, no one has any idea what the outcome will be."
Louise adds: “I'm concerned for our entire profession. I'm not so sure we're ready to deal with all the transformations that these issues could bring. What will be the impact of online distribution? Will the rule stipulating that an insurer cannot own more than 20% of a firm be changed? The proposed abolition of CHAD and the transfer of its responsibilities to the AMF will mean more changes, but what exactly? If each of these issues entails substantial changes, we face several years of upheaval before our industry returns to stability. I look forward to discussing these issues with my colleagues and the RCCAQ board members at the convention in November.”
New models for hiring brokerage managers
For Maxime, the most interesting issue is the search for the next generation of managers. This is hardly surprising for someone who acquired a major firm in 2015, together with three
other partners. “I'm seeing more and more examples of firms opting for different business succession models. In our case, the acquisition raised a good deal of interest because in 2015, there were very few examples of non-family succession. But I think we'll be seeing that more and more of that. Our industry is ideal for entrepreneurship. That's one of our strengths, by the way, and I think we should focus on that more.”
Maxime also encourages his broker colleagues to reflect on their financial models. The range of available financing continues to expand. Banks are very active, as are insurers, although other non-traditional players, such as investment funds, are also showing an interest in this area.
The issue of brokerage management is also inextricably linked to that of technology. Underinvestment in technology has other repercussions, such as greater difficulty recruiting qualified individuals. Qualified candidates have even been known to choose one firm over another because it is more technologically advanced. “Junior brokers were born with a fondness for technology," notes Maxime. "If a firm offers them out-dated systems to work with from some past generation, they won't be interested.” Given the major recruitment challenges facing the brokerage industry, technology is one issue we should all address.
See you at the convention!
Discuss this and other key industry issues with brokers and other participants at the RCCAQ's upcoming convention.
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