RIBO warns of ‘market blocking’

Ontario’s broker regulator, the Registered Insurance Brokers of Ontario (RIBO), is cautioning brokers about a practice commonly referred to as “market blocking.”
“In short, this involves the practice where a broker, in advance of an upcoming commercial renewal, sends out a request for quotation to a number of markets to lock the account,” RIBO says in an advisory published in its Summer 2009 newsletter.
The effect of this, the advisory continues, “is to prevent other brokers from obtaining quotations from that market.”
In some circumstances, a broker may be blocked from obtaining a quote on behalf of the very same client who is represented by the broker engaged in the blocking.
“Brokers are reminded that the consumer’s interest is their first priority in market conduct,” RIBO says. “Brokers must deal candidly and honestly with their clients and in a manner that will command respect and confidence and is compatible with the integrity and effectiveness of the vocation.”
Brokers must honour the wishes of their client, the RIBO advisory says. “If requested by another broker to release a market, by authorization of the client, brokers will be expected to comply in a timely manner.”