Supporting the Next Generation of Brokers

The Insurance Brokers Association of Canada (IBAC) is preparing to support the “next generation” of brokers through technology, education and marketing initiatives, says new president Keith Wilson.

Wilson, a self-confessed “Trekkie”, took over the captain’s seat to lead “the voyages of the brokership IBAC” at the association’s annual general meeting in Regina recently. He says the “next generation” theme highlights IBAC’s work on the Centre for Study of Insurance Operations (CSIO) insurer-broker Internet portal, as well as other initiatives “to position the broker as the most educated, recognized and efficient method of distribution in the world”.

POSITIONING BROKERS

The association’s AGM was a chance to launch the new broker identity program (BIP) television commercials created around the “blanket” theme. Immediate past president Ken Orr introduced the ads, which are meant to tug emotional heartstrings and play off the security offered by brokers. Orr says that, in the currently highly tumultuous insurance environment, where public confidence is low and governments have put insurance “under the microscope”, “the broker has been the one constant” for consumers.

“The almost overnight transition from a prolonged soft market to the extremes of an incredibly hard market cracked the industry’s credibility,” comments IBAC CEO Dan Danyluk. A main function of the executive in the coming year will be to restore public faith in the insurance industry and brokers specifically. To this end, more money is being directed to the BIP campaign. As well, IBAC is at work on a CD-ROM toolkit, which will allow brokers to print off their own material on a variety of insurance issues for clients.

POLITICALLY ACTIVE

IBAC will also look to position brokers in a positive light with legislators, building on an active year of lobbying. The past year has seen the association speaking to federal legislators and local representatives on a host of issues including insurance premiums, cross-pillar mergers and its annual pre-budget submission.

Political action committee chair Jeff LeGrow says IBAC was successful in seeing many of its issues reflected in the federal budget. “They included an acceleration in the planned increase in the SME (small to medium sized enterprise) deduction limit, and an extension of the Education Tax Credit to those who pursue work-related education,” he reports. Wilson notes that insurer support for brokers was heightened by this increased political activity.

IBAC did take a step back from one involvement, being the “Joint Forum of Financial Market Regulators” project on “practice standards”. However, the association subsequently drafted a code of conduct for property and casualty brokers which was submitted to the forum, as well as member brokers, this summer.

PORTAL PROGRESS

Wilson says one of the prime objectives of the coming year will be development of the CSIO portal, to bring brokers into the 21st century of “cyberspace”. He adds, “we have to have the resolve to make the CSIO portal an environment every broker can take advantage of”.

“The establishment of the portal is to our industry what the building of the national railway was to our country. The portal will be a significant conduit for commerce and communication,” adds Danyluk.

But, the portal has not been without its challenges, explains technology committee chair Danny Craig. “We can safely say we will achieve the broker take up required to meet the [portal’s] revised business plan, but the cashflow projections are not within plan.” CSIO’s broker and insurer representatives are looking at alternatives to get the portal “back on track”. Craig remains confident that the portal will continue to progress. “IBAC and our insurer partners are optimistic that phase-II is around the corner and within reach.” Orr shares his optimism. “The portal is on the ground and running. It’s going to be the technology solution we need it to be.”

“ENTICING” PLANS

On the education front, the past year has seen record sales of IBAC’s professional development products. The Canadian Professional Insurance Broker (CPIB) program is near full completion, with September marking the pilot launch of the “advanced commercial lines” course, as well as the review of the “business strategy” course. In November, IBAC will be looking at concepts for branding all of its professional development products.

The association is also looking into ways to bring new people into the broker profession. A “career path” was recently established, which includes not only enticing new entrants into the industry, but educating instructors, and focusing on education from new brokers and all the way through to advanced brokers, including principals. A committee has been struck to come up with concrete plans for making insurance the “career of choice” for young job seekers.