Quebec broker association’s wish list for province’s government

Quebec’s broker association is working and speaking with the provincial government on a number of files, including rising climate-related losses, floodplain mapping, cyber risk and maintaining a strong independent brokerage network.

Government support is critical for insurability and sustainability in Quebec and across Canada, says Lucie Fréchette, president of the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ).

“It’s no longer isolated incidents; it’s now a fact of life,” Fréchette says in an interview with Canadian Underwriter. “So, government support is incredibly important in increasing the sustainability of the insurability of the market by fostering…encouragement to sustainable building practices.”

RCCAQ even asked the government to implement a government subsidy for consumers and businesses that choose to rebuild in a sustainable fashion, such as through home renovations and better insulation, she adds.

Fréchette spoke with Canadian Underwriter after Quebec Premier François Legault announced on Jan. 14 that he would resign following the election of his successor. CU asked what the Coalition Avenir Québec (CAQ) leader’s resignation means for provincial brokers and consumers, and which files the broker association is working on with CAQ.

Fréchette says RCCAQ has very good working relationships with various government officials and expects continuity. “The RCCAQ through the years has worked with successive governments for decades, and so our approach is consistent.”

As for files, the broker association is also asking the provincial government to move forward on creating standard floodplain maps. This is reportedly in progress, and there is collaboration with the federal government on floodplain maps.

“We want the government to come in and actually implement policies, so land use, building policy alignment [and] clear disaster compensation rules,” Fréchette says. “For every dollar that you spend in prevention, you reduce public spend after.”

Increasing education for companies and consumers on the importance of cyber risk is also on RCCAQ’s radar. “Everywhere, it’s one of those things that people think won’t happen to me, for some reason,” she says. Only when there is a breach in an industry in which a client knows somebody do people seem to realize a breach can happen to them, Fréchette adds.

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“Another file that’s incredibly important to us is the maintaining of a strong, independent brokerage network in Quebec,” she says.

“It’s good, not only for the broker network, but also for Quebec’s economy as a whole, because brokerages are small businesses that are implemented in all regions of Quebec…and they are good corporate citizens,” she adds. “They offer good jobs in their communities, and they offer access to independent, impartial insurance advice for their local communities and their local businesses.

“Quebec is the only region where an insurance company cannot own 100% of a brokerage and we are keen on maintaining that.”

Quebec’s next provincial general election is set for Oct. 5.

“Regardless of who forms the next government, we’ll continue to advocate for stable regulation and a strong independent brokerage sector,” Fréchette says. “So, our focus is really going to be on continuity with whatever government comes into place later in the fall.

“The government is more than just its leader.”

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That said, RCCAQ has had a constructive relationship with the Legault government, which has been responsive on several industry issues, Fréchette reports.

For example, CAQ granted RCCAQ a $3.7 million subsidy to help brokerages invest in and digitize their operations with new technology tools. This allowed the broker association to build a technology knowledge base within the province and RCCAQ member firms.

RCCAQ also worked with the provincial government to get direct broker access to things like DASH (Driver and Auto Search History), MVR (Motor Vehicle Records) and claims information.

Previously in Quebec, brokers had to go through an insurer to gain access to the central motor vehicle accident database. “So now there is a mechanism for brokers to be able to get approved to get direct access…That increases broker efficiency and service quality.”

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.