The 2017 edition of the RCCAQ's convention was heavily attended, with close to 900 convention-goers (RCCAQ members and industry stakeholders) taking part in discussions on a wide range of topics of current interest in the insurance sector.
The convention was preceded by the RCCAQ's annual general meeting, during which various members voiced concerns about the draft legislation currently under consideration by the provincial government, while others made constructive suggestions relating to the profession.
Louis Morisset shares his views on current issues
The convention kicked off with a luncheon conference at which Louis Morisset, AMF President and CEO, was the guest speaker. In his remarks, Mr. Morisset noted that the proposal to repatriate powers from CHAD to the AMF under Bill 141 is good news for the profession, as well as for consumers. In addition to streamlining the oversight process and simplifying communications with the public, the AMF will also be strengthening its role as a regulator with close industry ties. As regards the possibility that insurance products may soon be available for sale online, he said that his organization wanted to foster technological progress without hampering efforts to protect consumers. This is an important point, which the RCCAQ welcomes. Mr. Morisset concluded by noting that brokerage firm independence is very important for him and his organization.
Like securities brokers, insurance brokers can adapt!
The theme taken up by the expert panel was particularly relevant to our profession, i.e. a return to what the securities brokerage industry experienced in the late 1980s, when laws were modified to enable banks and trust companies to own securities brokerages. During the subsequent transition, the highly fragmented model made up of small brokers disappeared completely, transforming the sector.
Three experts took part in the panel discussions: Sylvie Cloutier, investment advisor; Denis Gauthier, senior vice-president and national sales manager, National Bank Financial; and Jean Morissette, consultant and investment/wealth management specialist.
The panel members began by noting that shortly after these major legislative changes, securities brokers witnessed the rise of the Internet, which profoundly affected their existing client relationships. Prior to the Internet, securities brokers enjoyed a privileged position thanks to their information monopoly, which enabled them to make the right investment decisions. In the pre-Internet era, securities brokers had access to vast amounts of information, which made them valued partners.
Securities brokers also had to deal with the rise of online brokerage sites, thanks to which consumers could carry out their own transactions unassisted.
Since so much change was in the offing, involving numerous aspects of their profession, securities brokers simply had to reinvent themselves!
All three panellists mentioned that securities brokers who really wanted to create value for their clients simply had to adapt. They also saw an opportunity to reduce the time they spent on low-value-added tasks and to focus on their expertise.
The panellists left the participants with the following advice:
1. It is essential to determine what has value for your clients and to focus on that.
2. Stay flexible and be willing to adapt!
3. Every time a major change occurs, there are huge opportunities for individuals who have the foresight and the ability to seize these opportunities!
4. Do your homework! How can you monetize the value of your portfolio? Set some time aside to reflect on these matters and to gain some valuable perspective, even if it's just an hour a day or an hour a week.
Insurer representatives state their case
The highly anticipated insurer panel did not disappoint. The representatives of the seven insurers present gladly responded to the questions posed by moderator Jean-Luc Mongrain, who is known for being unfailingly relevant and frank!
The insurers began by noting that the proposed four-quote minimum was a major issue for them as well. In their view, this proposal would mean having to handle more quote requests, even though real business volume would not change. The discussion soon turned to the strategic choice made by some insurers to reduce, in some cases significantly, the number of firms with which they maintain agency contracts.
The approaches of the various insurance companies were also the subject of various discussions, particularly as regards the real importance that each insurer assigns to the brokerage sector and to each brokerage firm's individual brand. One of the representatives admitted that the brokerage insurers had "played into the hands of the direct insurers" and had thus failed to promote brokers' value added. This comment speaks volumes: it clearly shows that the brokerage industry must recover its sense of engagement and work together to regain its rightful place.
Finance minister is open to discussion
Quebec's finance minister, Carlos J. Leitão, was the guest speaker at the convention banquet. Mr. Leitão set out the underlying reasons for the proposed modifications contained in Bills 141 and 150 affecting the oversight and operating system for the financial sector. We strongly welcome the minister's openness to discussion, which encourages the RCCAQ to continue its lobbying aimed at defending insurance brokers and, ultimately, consumers.
Talking about change
The convention also provided an ideal opportunity to discuss the topic of change as it applies to training activities. The following topics were addressed by our industry-recognized experts: catastrophes and cyber-risks; innovations and Insurtech; challenges for the commercial lines; and the collaborative economy. These activities were highly appreciated by the convention-goers, not only for their content but also for the high-energy presentations.
All in all, the convention was jam-packed with highly relevant topics, and the participants confirmed how much they enjoyed the event. See you next year on November 7-8 for the RCCAQ's 2018 convention!
All the pictures here!
