Manitoba brokers brace for the banks

The new president of the Insurance Brokers Association of Manitoba (IBAM) Ron Vandenbosch says the battle against banks retailing insurance is the top concern expressed by his constituents at the recent IBAM annual general meeting in Winnipeg. Asked to list three top concerns of Manitoba brokers, he answers the bank threat, the need to further promote the bipper, and well…the bank threat. “Although we’ve heard nothing but positive feedback from Finance Minister Paul Martin, the banks are still clamouring to get into the p&c market. Manitoba brokers will not stop lobbying until official word mandates the banks stay out of our business,” he says.

The bipper — a symbol of the independent insurance broker — must be better promoted and utilized in the year ahead, adds Vandenbosch. He likens the association brokers are trying to achieve through the bipper to brand recognition of corporate logos. “When you want to find a McDonald’s, you don’t look for their building you look for the golden arches. We want people buying insurance to look for the bipper logo in storefront windows.” The association has a fund in place to promote the bipper, Vandenbosch says an advertising program will be formulated in the year ahead. Aside from branding the independent broker, the bipper promotion also serves as an example of co-operation between insurers and brokers. “We sometimes fail to acknowledge the financial support from insurers into the bipper program. If it wasn’t for their involvement, we wouldn’t be able to do a lot of the work we do with the bipper,” he says.

Banks and bipper aside, there are other fights looming for Manitoba brokers. A year ago, direct writers were poised to enter the province, this year the Co-operators General Insurance Company purchased a number of provincial brokers. Early indicators point to continuing public automobile insurance in Manitoba, that direct writers will only dent the homeowners product segment. “We have a very good relationship with Manitoba Public Insurance (MPI) and consumers are quite happy with the product — and the price.”

Ever-present is the drive to build association membership. Vandenbosch believes IBAM members span roughly 80% of the province brokers but hopes to push that figure to the 100% mark. An 18 year veteran of the industry, he hopes his reign as IBAM president will encourage more rural and small community brokers to take part in the organization. Vandenbosch is president of Saquet & Vandenbosch Insurance in Ste. Rose du Lac, a community of 2,096 residents. “I have big shoes to fill in the wake of the previous presidents of IBAM. But as a broker from a small community, I hope my involvement with IBAM will encourage rural and small town brokers that you don’t have to be a ‘big-city broker’ to actively participate in the association.”