Each year, Quebec's Autorité des marchés financiers (AMF) issues a report on financial institutions. This report includes a wide range of data, some of which is insurance-related. our attention was namely drawn to the most recent figures for replacement insurance, which offer encouraging news for brokers.

Number and value of policies issued

• Replacement insurance policies sold by agents or brokers were up 4.8% in 2015 (number of policies) and 6.8% (written premiums).
• Auto dealerships' replacement insurance sales were down 11.7% (number of policies) and 9.2% (written premiums).
• Overall, the number of replacement insurance policies sold was down 8.8% in 2015.

Average premiums

• As regards policies sold by auto dealerships, the average premium written for replacement insurance was $1,832 in 2015 (up from $1,781 in 2014).
• The average premium for policies written by agents or certified brokers was $1,107 in 2015, up from $1,086 in 2014.

Premium difference between auto dealerships and certified representatives

• The difference between premiums for replacement insurance policies sold by dealerships and those sold by agents/brokers continued to increase, with an average difference of 66% (up from 64% in 2014).
• The average increase in premiums also shows the difference between both distribution models:
  • Premiums written by dealerships were up 2.9% in 2015, while premiums written by agents/brokers were only up 1.9%.

As you no doubt remember, the RCCAQ has done a good deal of lobbying in connection with replacement insurance to ensure that consumers' interests are protected. Although progress has been made, we have some distance to go before we can say that consumers are being properly advised when purchasing these products and that they are paying a fair price for them.

 To consult the AMF's report in full, please click on the following link (in French only). The insurance-related sections are on p. 138 and p. 222 (auto insurance rates). Click on the following link.