IBAC sets sights on brokerage ownership and control

With the issue of the Bank Act officially retired as of early this year (for another five years, at least), the Insurance Brokers Association of Canada (IBAC) is now setting its sights on what brokers do when they choose to retire.
Specifically, IBACs new president, Danny Craig, told delegates at the associations 2007 annual general meeting in Whistler, B.C., that brokerage ownership was one among several challenges brokers face in a post-Bank Act world including perpetuation, education, competition and technology.
Before ever selling our business to a company, or even to other brokers, we must take a serious look at the legacy we leave behind for our way of business and life, Craig said. That being said, we must respect the rights of individual brokers to make decisions in the best interests of their own businesses.
[But] I would ask you all to ponder these questions: Is it really in your long-term interest to sell your livelihood? Are there other options? What compelling strategies exist to reinforce the existing strength of our distribution channel?
Think carefully about your future. The great Yogi Berra once said: If you dont know where you are going, you might end someplace else.
In listing the essential broker values (independence, choice, advice and local presence), Craig invoked the importance of keeping brokers within the broker channel when it comes to selling their business.
IBAC has already started working on the broker perpetuation issue, the association noted in its 2007 annual report. It notes that Larry Kozakevich, while he was president of IBAC in 2006-07, launched the Broker Perpetuation Strategies Group to investigate the mechanics and economics of brokerage continuity. The groups mandate is to:
review current challenges facing brokers regarding perpetuation of their brokerages
recommend actions to assist brokers in succession and perpetuation planning, and
provide advice to associations on how to handle the broker perpetuation issue