Operations
Vehicle technology is designed to reduce crashes – or at least, the severity – but insurance brokers shouldn’t expect to be able to offer their clients any relief when it comes to their premiums. That’s because all the technology going into new vehicles to keep people safe is driving up the cost of repair. How […]
By Adam Malik | August 21, 2019
3 min read
What are the trends in brokerage commissions in the Canadian P&C insurance space? Brokerage compensation arrangements have definitely tightened, with average producer compensation closer to 33% to 35%, plus benefits, a P&C transaction advisor told Canadian Underwriter Tuesday. “This might translate to a 50% commission rate on new business and 30% on renewal,” said Mike […]
By Jason Contant | August 21, 2019
The reaction by insurers to the 5% rate cap on Alberta auto insurance is one reason Surex.com Ltd. is aggressively expanding in Ontario. “We have doubled down on Ontario because of the market out west,” said Matt Alston, co-founder and chief operating officer of Magrath, Alta.-based surex.com, in a recent interview. In 2017, the Alberta […]
By Greg Meckbach | August 20, 2019
As mergers and acquisitions ramp up in the Canadian P&C space, smaller brokerages will need to go for scale or niche to survive, brokers say. “As of late, with Wawanesa buying Western Financial, NFP buying a half-dozen really big brokers, Intact buying MGA Frank Cowan, etc., it’s non-stop mergers and acquisitions,” Adam Mitchell, president of […]
By Jason Contant | August 16, 2019
When it comes to brokerage profitability, size matters. Common characteristics of the most profitable Canadian brokerages are laid out in a recent report from P&C advisory and consulting firm Smythe Advisory. The Property & Casualty Insurance Brokerage Report 2019 analyzes the fiscal year-end results between January 2018 and February 2019 for 80 brokerages (representing over […]
2 min read
The grass continues to appear greener on the other side for Canadian workers, but disgruntled employees are not always ready to make the jump, a new survey has found. Before brokers venture off towards greener pastures, they should keep a few things in mind, some industry experts caution. A new poll from investment dealer Edward […]
By Adam Malik | August 15, 2019
Brokers looking to give their customers any positive news on rates potentially coming down shouldn’t get their hopes up. That’s because industry experts believe there’s little indication that we’ll see fewer collisions on roads despite all the safety technology found in today’s new vehicles. A driver could have a number of alarm bells go off […]
By Adam Malik | August 14, 2019
What does the current market look like for merger and acquisition (M&A) activity in the Canadian P&C brokerage space? “The current market is primarily being driven by underwriters and private equity (PE) investors,” wrote Mike Berris, partner and practice group leader with Smythe Advisory in the firm’s recently released Property & Casualty Insurance Brokerage Report […]
By Jason Contant | August 13, 2019
Legal / Regulation
A third Canadian province has been given the go-ahead for electronic proof of insurance for drivers. The Alberta government gave the OK for drivers to show their pink cards in a digital format through their smartphone this week, following the lead of Newfoundland and Labrador earlier this month and Nova Scotia last year. Just recently, […]
By Adam Malik | August 13, 2019
HR
What are some of the biggest barriers facing brokers looking to cross-sell? Access to market, high rates and underwriting practices (such as asking 30-40 questions on a renter’s policy) are the main culprits, said Jeff Roy, president and CEO of Excalibur Insurance. He spoke to Canadian Underwriter recently following a story on the topic that […]
By Jason Contant | August 9, 2019
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