|Rising regulatory pressures mean Quebec’s MGAs need to begin working together to rebuild an association for themselves or join CAILBA as a Quebec chapter, said panellists at The Insurance and Investments Convention on Nov. 9 in Montreal.|
During the summer of 2009, Quebec’s MGA organization, Association des cabinets gestionnaires de services financiers (ACGSF) disbanded due to a lack of interest from members.
Since then, increasing compliance demands have raised concerns throughout the distribution channel and have spurred the Canadian Association of Insurance Life brokerage Agencies (CAILBA) to take an increasingly active and visible role in representing its 50 members. However, only two of this association’s MGA members, Copoloff Insurance Agencies and Force financière Excel, are Quebec-based firms.
During a panel discussion at the convention, James McMahon, President and CEO of Force financière Excel, commented that the most important issues facing Quebec MGAs are of national significance, which means Quebec MGAs would benefit by working together with CAILBA. He suggested that they get together and form a Quebec chapter of CAILBA.
“I think we should have a CAILBA Quebec chapter. When we have problems in Quebec, we will resolve them. When we have problems at the national level, we will resolve them with CAILBA.”
CAILBA’s President, Peter Lamarche, also addressed the issue of Quebec participation in CAILBA. He welcomed the idea of a Quebec chapter. “I agree with my panel members that there are national issues with regulators and there are national issues with insurers. So, obviously if there were a Quebec association…we could put the two forces together and have a tremendous impact on regulators and insurers who are our partners.”
Panellist Guy Duhaime, President of Groupe Financier Multi Courtage also called on Quebec MGAs to regroup, either by forming a new Quebec MGA association or a CAILBA chapter. He was one of the founders of the now defunct association, but he hopes that the province’s MGAs will realize that they need to have representation with regulators who are increasing compliance pressure on MGAs.
Life & Health Insurance