Ontario’s independent brokers stop bleeding off of consumers to direct channel

Ontario’s independent broker channel appears to have turned a corner in 2007, with consumers showing signs of remaining loyal to the channel despite the aggressive marketing of direct writers, according to Rodney Hancock, the president of the Insurance Brokers Association of Ontario (IBAO).
The province of Ontario was among a handful of provinces in which the number of consumers dealing with brokers did not decrease in 2007 as compared to the previous year.
“We have, as they say, ‘stopped the bleeding,'” Hancock said in a speech to delegates attending the 88th annual convention of the IBAO, held this year in Toronto.
“We are also encouraged that during the first six months of 2008, brokers’ market share in Ontario has remained steady.”
Hancock attributed the result in part to a major new marketing initiative undertaken by the IBAO earlier this year. In the spring of 2008, IBAO launched its quoting and public education Web site called myinsuranceshopper.ca, which also helps members of the public find brokers online.
Alberta and Nova Scotia’s broker associations say they looking into establishing a similar Web site quoting engine, based on presentations to them earlier this year by the IBAO.
Still, Hancock noted, for the eighth consecutive year, brokers’ share in most other provinces is down.
MSA Research president Joel Baker has noted in the past that the market share of direct-linked agencies and companies increased from 37% in 2002 to 43% in 2008.
In personal property lines, Baker noted, the market share of direct writers increased from 35% in 2002 to 46% now.
“Our goal is to recover and capture what we have lost over the past few year,” Hancock said.