Canadian Market (December 01, 2008)

BROKERS NEED STRONG CANADIAN REPRESENTATION AMONG THEIR MARKETS

Brokers must maintain a balanced portfolio and resist relying too heavily on European-based insurers, warned Colin Simpson, senior vice president and chief strategy officer of Kingsway Financial Services.

Simpson spoke at the Insurance Institute of Ontario’s ‘At the Forefront’ breakfast in Toronto on the need for brokers to support domestic insurers to ensure the survival of a robust broker distribution channel.

The European insurance mar- ket leaders tend to leverage multichannel platforms, but a European insurer aiming to grow Canadian business will only get this market share from one place — brokers, Simpson said.

When faced with a choice between placing a risk with a domestic company or a European company, Simpson advised, “think twice as to what that European company is ultimately going to do to your distribution channel.”