As the sole official voice of Québec’s damage insurance brokers, the RCCAQ is continually focused on its mission to promote and defend its members’ socio-economic interests and to support their development. Sometimes, it’s a good idea to provide an update on lobbying efforts and other issues, as well as the results for our member firms.
A great example of success and direct impacts for brokerage firms
Just over a year ago, an RCCAQ member firm contacted us to obtain our support in a tax matter involving Revenu Québec. Although the matter was of direct concern to the member, there was also a potential major impact on all insurance brokerage firms. To make a long story short, after making enquiries and verifying the matter with Québec’s finance ministry, it turned out that the ministry was claiming $375,000 for uncollected taxes on fees charged to the member’s clients.
Mindful of the potentially huge impact on Québec-based brokerage firms, the RCCAQ team got down to work. We consulted with our legal advisors and engaged in lobbying to demonstrate that the activities in question were not administrative or preparatory services, but rather financial in nature. Thanks to our intervention and lobbying, the claim was withdrawn by Revenu Québec.
Based on our quick calculations, we concluded that brokerage firms in Québec saved themselves several tens of millions of dollars!
Access to the Fichier central des sinistres automobiles
In the fall of 2021, the RCCAQ saw its efforts rewarded with respect to lobbying over the Fichier central des sinistres automobiles/FCSA (Québec’s auto claims database).
Thanks to our efforts, insurance brokers now have direct (and legal) access to the FCSA. In addition to benefiting consumers, this access will boost the efficiency of brokerage firms’ business practices.
To reinforce this access, the RCCAQ team is continuing its efforts in this regard, in particular with the AMF and the Groupement des assureurs automobiles.
Bill 96: the RCCAQ is recognized and supported
Tabled on May 13, 2021, the An Act respecting French, the official and common language of Québec (Bill 96) was approved unanimously on first reading in the National Assembly (121 votes in favour, zero against and no abstentions). Since then, specific consultations were held, leading to the filing of a report in October 2021. On November 4, 2021, the bill was adopted in principle in another unanimous vote (116 votes in favour, zero against and no abstentions). The process leading towards final adoption continued with the detailed study in committee (March 15, 2022) and the filing of the committee’s report on April 26.
Needless to say, the RCCAQ felt duty-bound to intervene, as we previously announced, since Bill 96 deals in part with the requirement to provide French-language contracts. In this regard, the RCCAQ’s lobbying efforts were recognized. Various meetings were held with government officials, in part to make clear the realities facing brokers in Québec with respect to the commercial market.
Although the RCCAQ fully supports the goals of Bill 96, it emphasized the myriad difficulties encountered by Québec entrepreneurs when trying to find adequate business coverage. The RCCAQ also stressed the need to find accommodations so as not to exacerbate the current crisis.
Thanks to our lobbying, the Bill was amended and certain contracts were exempted. This is very good news for insurance brokerage firms. Currently, discussions are ongoing with regards to enhancing the draft legislation in other ways.
Regulatory action
The RCCAQ is also very active when it comes to taking action on regulatory aspects governing insurance brokerage’s business practices. Here are a few examples:
- Following the publication of the AMF’s incentive management guidelines, the RCCAQ pointed out that the current regulatory framework remains a powerful tool for preventing conflicts of interest and that brokerage firms are fully able to manage incentives properly, focusing primarily on the needs of their clients.
And there’s more!
RCCAQ members benefit not only from our lobbying efforts on governmental, legal and regulatory matters, etc.), but also from specific programs and initiatives:
- In line with compliance, the RCCAQ rolled out an advisory offer for business practice improvements. This move has proved highly popular! Various options are now available to firms, including a summary assessment of their business practices, the implementation of a supervision or audit plan and inspection support. Plus RCCAQ members receive an exclusive 10% discount on all contracted services!
- In keeping with its dynamic approach, the RCCAQ undertook various initiatives aimed at helping brokerage firms to meet their strategic challenges. In this regard and in connection with the Québec government’s Digital Transformation Offensive, the RCCAQ submitted a proposal designed to support brokerage firms and their digital transition.
Our efforts were not in vain! In January 2022, the government awarded the RCCAQ a $3.7 million grant. Needless to say, this is a major step forward!
These funds will be used to raise brokerage firms’ awareness of the importance of the digital transformation and, most importantly, to provide them with individualized assistance throughout this process. Amounts are also earmarked to facilitate change management and to support training efforts. The team is currently busy getting ready for the awareness campaign and crafting the approach that will be used.
- Here’s another example of concrete action: the RCCAQ acquired a brokers’ professional liability insurance portfolio to boost its market share. As a result, RCCAQ Insurance is now playing a leadership role with some $1.2 billion in coverage. It should be noted that all revenues from the RCCAQ’s insurance subsidiary contribute to carrying out our mission while making our lobbying efforts possible on various issues.
The above summary is worthwhile in that it spotlights the RCCAQ’s progress on many fronts, including its impacts on the insurance broker profession and its vital importance as a professional organization.
The RCCAQ invites all Québec insurance brokerage professionals to join forces with us! That way, we will continue to have a strong voice—and this in turn will enable us to pursue our efforts to defend and promote brokers’ interests.
