Can you imagine what the impact might be if P&C insurance sales were legally permitted online WITHOUT a certified representative being involved in the process? Consumers' financial well-being would be at risk; and in the event of a claim, insureds would be on their own to deal with the insurer. That is a realistic picture of the situation: in connection with the Bill 141 review, the door has been left wide open to the prospect of insurance sales. And that's why we must act. Today!
Modernization and protection should go hand in hand
We're not talking about trying to roll back progress; the Internet is here to stay. The legislative framework for the financial sector should be modernized, though, and online insurance sales should be regulated to fill the current legal vacuum. However, there are valid reasons to conclude that consumers could benefit from a few safety features along the Internet highway...
Insurance is a complex business, no matter what people might say!
A 2016 Leger survey revealed that 76% of Quebecers find P&C insurance to be complex—and they're 100% right! If the situation were so straightforward, why would the broker designation involve meeting stringent conditions aimed at protecting consumers? Why do we have to pass the AMF exams and complete our continuing education requirements if not to offer the very best advice and guidance? Mindful of the impact of these issues on consumers, we know that our profession is regulated to ensure their protection. So how can we be sure that not-so-savvy consumers will end up with the proper coverage if they're buying insurance online alone?
A few clicks could wind up costing a lot
According to the available data, we also know that over 50% of insureds do not read their contract from beginning to end. No matter how dry the language, insurance policy riders, exclusions and provisions are essential information that brokers are able explain to consumers. Our role is to provide advice and get involved when a claim is filed. It is also to protect consumers' property, which often accounts for much of their financial wealth. And because P&C insurance is mandatory, lots of people could be tempted by the speed of online sales without the involvement of a certified representative. They certainly could, although the fall from grace may well be long and very costly for clients who enter into a contract after a few minutes of research and a few mouse clicks. When the time comes to file a claim, they will be left to their own devices with no back-up! So that's why we're asking you to be prepared.
Are you ready?
Each bill introduced in the National Assembly follows an established process. When the final draft is adopted, it's too late to change the legislation! Our role as brokers, i.e. serving as a safety net for consumers, stands to be adversely affected. So how can we ensure that our voices are heard by as many elected representatives as possible? By securing your commitment to our cause. We recently asked you to visit your MNA and to bring this briefing document with you. You will also be receiving information on other simple steps to take in support of our actions. Let's all be prepared! The protection of consumers' financial well-being is at stake.
