IBAC Supports Conservative Platform (Canadian Election)

Canadian Underwriter ^ | Friday, January 13, 2006

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The Insurance Brokers Association of Canada (IBAC) has voiced its support of the Conservative Party's recent platform announcement, which outlined a decision to maintain current regulations regarding banks and insurance.

IBAC says it is urging other party leaders to follow suit with Stephen Harper on this issue so that "fair and healthy competition" within the insurance industry can be maintained. The banks, represented by the Canadian Bankers Association, have been lobbying to have increased powers within the insurance market and aggressively seeking permission to use their immense branch network to directly market insurance. IBAC says this move would "quash healthy competition by ultimately giving them (banks) an unfair advantage over other players."

"What's at stake here is consumer interest – that's something the Conservative Party understands and supports," Dan Danyluk, CEO of IBAC, says. "Canada's banks have a track record of swallowing up independent small businesses that serve Canadians in every community across this country. Insurance brokers provide a personalized professional service to their clients, and the Conservative Party understands that Canadians should expect no less."

IBAC says its major concern is that consumers will face increased costs, and less choice if banks are allowed to dominate the market.

If the banks come to dominate the insurance industry, IBAC warns, Canadians will also likely see higher premiums and less personalized service. Another Conservative ideal that IBAC supports is its interest in protecting small businesses in Canada. "This policy recognizes the role that small businesses play in our economy, and the benefits they bring to Canadians," Danyluk says.

Currently, IBAC says consumers have access to a milieu of products offered by over 200 insurers that is distributed by service-oriented independent insurance brokers and this network could potentially dwindle if banks win the insurance retailing battle.