51% of Ontario consumers opt for broker channel

About 51% of Ontario insurance consumers buy their insurance products through the independent broker channel, whereas 38% buy from agents or direct markets, according to a 2007 independent consumer survey commissioned by the Insurance Brokers Association of Ontario (IBAO).

The survey found a further 11% of Ontario consumers purchased insurance through group plan providers and 4% with a financial institution.

The survey results were presented at the IBAO’s annual general meeting in Toronto. Conducted by Navicom, the consumer study was sent to 15,000 Ontario consumers, with a response rate of 5% (or about 750 consumers).

IBAO president Steven Wagler, who presented some of the survey results to the IBAO membership, noted the survey included some of the reasons why consumers chose brokers over agents for purchasing insurance. Among them, he noted:

* brokers identify a range of insurance companies and options that best suit their needs;

* brokers are involved in their local communities; and

* brokers are perceived to be independent of the insurance company.

“The other key benefit consumers identified as a strength for brokers is that [brokers] have values consistent with their own,” Wagler noted.