By RCCAQ

André Roy

André Roy, CEO of PMT ROY Assurances et services financiers, is a man of strong passions. After receiving his bachelor's degree in business administration, he kicked off his career by joining the insurance firm operated by his father, Rémi Roy. The son soon fell in love with the sector, focusing his efforts on understanding the subtle differences between certain products and on forging trust-based relationships with his clients—an essential step!

After working for years as a broker as well as in a managerial capacity, Mr. Roy acquired an in-depth understanding of the sector. But while leafing through the AMF's annual report on the insurance industry some three years ago, he came across a diagram showing that the market share of auto insurance brokers (passenger vehicles) had shrunk by 5% over the previous decade (2004-2014), benefiting the direct insurers. As a result, premiums fell by 12% over the same period.

Mr. Roy found that statistic highly disturbing, particularly since his firm's payroll had risen by nearly 30% over the same period. “I realized we were faced with a fundamental problem. If premiums keep going down industry-wide while the cost of doing business goes up gradually each year, you have to wonder about the future viability of the brokerage sector!”

Brokers' advisory role

Mr. Roy and his team set out to analyze the situation. Convinced that the brokerage model is essential and that consumers are better served by this distribution method, they sought to determine why brokers were losing ground. Here’s what they came up with: “Consumers have a hard time distinguishing between insurance agents and brokers; they see each group as equal in value,” says Mr. Roy. “But growing numbers of consumers want immediate answers to their questions, rather than having to wait for an appointment with their usual broker.” He adds, “You also have to keep in mind that the world is getting more complex, as are consumers' insurance needs."

Kaizen approach: the focus of client experience initiatives

The Kaizen approach forms the basis of every transformation that PMT ROY has embraced. Originating in Japan, this philosophy is based on a continuous improvement process placing considerable emphasis on employee involvement. It consists of a series of simple and cost-effective steps that can be implemented on an ongoing, day-to-day basis.

“This initiative really transformed our way of operating,” notes Mr. Roy. “But you have to be willing to question certain practices that might seem cast in stone. For example, to boost our availability, we extended our business hours and are now open from 8:00 AM to 8:00 PM. We had to switch from a compartmentalized mode of operation to a team-based approach. That also included a top-to-bottom review of our compensation practices.”

Four-part philosophy based on community involvement

Mr. Roy and his team have put together a four-part client experience that guides their business decisions:

• Availability, so we're there whenever clients find the time to discuss their insurance needs.
• Competence, so our brokers have the knowledge they need to give clients the best possible advice.
• Efficiency, so the process for clients is as short as possible.
• Dedication, so clients really feel we're doing as much as we can to safeguard their assets.

According to Mr. Roy, although management is delighted with the firm's progress, much work remains to be done. “Throughout this series of transformations, we've kept on investing in technology. But I'm convinced we will have to pick up the pace in this regard. If we don't have state-of-the-art technological tools at our disposal to serve young clients, they'll quickly find other alternatives. The way I see it, we clearly have to adapt. That's where the future lies!” He adds: “The same goes for training. Along with other firms, we've made a huge investment in a 48-week training program focusing on the client experience. Every one of our personal insurance employees completed that training in 2016 and we hope to adapt it to commercial insurance in 2018.”

With 15 offices across Quebec, PMT ROY has a strong presence province-wide, with management seeing deep community ties and regional involvement as essential attributes. In Rimouski, for example, PMT ROY provides financial support to Maison Marie-Élisabeth, a palliative care facility, and employees are personally involved in the organization's fundraising march each year. “We have to give something back to each community in which we do business. It's a sign of gratitude and respect. It's also a way of thanking people for placing their trust in us,” says Mr. Roy.