Quebec brokerage industry driver of economy, new study says

Quebec’s brokerage industry is the driving model for damage insurance, said a new study released on Wednesday.

The study was sponsored by BMO Bank of Montreal and carried out by firm Raymond Chabot Grant Thornton (RCGT). Senior executives with Quebec’s broker association, the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ) commissioned RCGT to provide an overview of Canada’s largest insurance market: damage insurance (fire, accidents and various risks), which represents 55.4% of the total market value, compared with 44.5% for personal insurance.

Key findings of the study included the following:

• In Quebec, the brokerage sector is the primary distribution model for damage insurance, representing 52.28% of the Quebec market, or $4.48 billion in premiums;

• The annual economic benefits associated with the industry amount to $657 million and are supported by 10,356 direct and indirect jobs;

• The brokerage insurance industry offers high-quality jobs in all regions of Quebec;

• Unlike direct insurance companies, brokerage firms are present in all regions of Quebec; and

• The Quebec government takes in approximately $392 million in tax revenues while the federal government collects more than $34 million.

In view of the study’s key findings, this market single-handedly directly creates 7,610 jobs, in addition to 2,746 jobs supported indirectly by brokerage insurance firms across Quebec, RCCAQ said in a statement. Although the Montreal, Quebec City and Montérégie regions represent the largest employment pools for this sector, a total of 338 firms, with nearly 2,300 employees/certified owners, help to keep the regional economies flowing.

The broker profession still ranks among the most promising career choices. “We’re hearing the same message from the Coalition [pour la promotion des professions en assurance de dommages],” said RCCAQ chair Vincent Gaudreau in the statement. “According to a survey commissioned by the Coalition in 2013, a total of 1,452 posts must be filled in 2015 and 2016. The opportunities associated with the broker profession make it a guaranteed career choice.”

However, the market is constantly changing. “Thanks to the technological evolution and new consumer habits, we have seen major changes in our processes,” Gadreau said.

The RCCAQ is a professional association that represents about 4,200 brokers in some 600 firms and branch offices across Quebec.

RT @rccaq: L’industrie du courtage d’assurance de dommages: moteur de l’économie québécoise et créateur d’emplois http://t.co/u6DKMgeadp

— Vincent Gaudreau (@v_gaudreau) March 25, 2015