Dear Brokers:

In its 2016 annual report on financial institutions, Quebec's Autorité des marchés financiers (AMF) revealed that the market share held by auto dealerships is shifting back in favour of certified representatives.

Brokers can now focus on their advisory role

For the fourth year in a row, certified representatives increased their total number of policies sold and premiums written by 29.1% and 33.9% respectively. Meanwhile, auto dealerships recorded a 28% drop in their total number of policies sold and a 26% drop in premiums written.

The replacement insurance market remains largely dominated by insurers using the "distribution without representatives" model. However, we cannot ignore the correlation between when we started lobbying on the issue of replacement insurance and when brokers began regaining their market share.

Reminder concerning the RCCAQ's positions and lobbying activities

As you already know, since 2011, the RCCAQ has focused its efforts on reporting the illegal business practices of some auto dealerships and on the issue of consumer protection. The RCCAQ also paid tribute to the AMF's vigilance following the announcement of penalties imposed on various dealerships.

In its efforts to protect consumers, the RCCAQ has lobbied for a more equitable regulatory framework. In this regard, the RCCAQ believes that the "distribution without representatives" model should be phased out. The RCCAQ also believes that all distributors, particularly auto dealerships, should be registered as insurance brokerages; employees selling insurance products should be registered as certified representatives with the AMF. Only certified representatives can advise consumers properly.

We have provided our broker members with an information document for clients on the topic of replacement insurance and replacement cost insurance. Many of you downloaded this document and distributed it to your clients, who are now aware that replacement insurance premiums are 60% more expensive on average when purchased from an auto dealership.

Solidarity brings success

There is one thing we would all do well to remember: the RCCAQ's tireless lobbying is paying off and your involvement as a member is helping us to create positive impacts for the brokerage sector. We should take pride in the efforts we are engaged in each and every day. Working together, let's continue to defend our industry and to ensure that consumers have access to the best possible products and services.

If you would like to share any comments with us, please email us (communications@rccaq.com).

Kathleen Ann Rake
RCCAQ Chair