March 16, 2006 by Canadian Underwriter
The Insurance Brokers Association of Canada (IBAC) and the Canadian Federation of Independent Business (CFIB) have agreed to work together to present a united voice on issues affecting both small businesses and insurance brokerages.
“Looking back, both organizations recognize the huge challenges that the last ‘hard market’ placed on small businesses concerning insurance availability and pricing, while at the same time placing brokers in a very difficult position vis–vis the carriers and their small business clients,” IBAC noted in a press release.
“With that in mind, both organizations are pleased to work together on a series of initiatives that will hopefully improve our joint ability to cope with the next hard market, and strengthen the small business and insurance brokerage communities.”
IBAC says it will be working with the CFIB to produce a joint handout that would provide CFIB members “with a better understanding of how insurance products affect them, how the industry determines pricing, and how the industry works in cycles and the subsequent impact on all consumers.”
Both IBAC and CFIB are in favor of the new Conservative government’s position on the raising of the small business corporate income tax threshold from $300,000 to $400,000, as well as the eventual lowering of this tax rate from 12% to 11%.
On the Bank Act review issue, based on previous member votes, CFIB has taken the position that banks or credit unions should not be allowed to sell insurance directly out of bank branches. “Both our organizations believe that credit-granting institutions should not be allowed to easily cross-sell insurance products with other banking products,” IBAC announced. “This would put even more undue influence on banking consumers and increase the preponderance of tied-selling.”