What Group Insurance Brokers Need to Know to Survive Bill 141
The introduction of Bill 141 is causing a lot of turmoil in the Quebec financial sector. Since its adoption in June 2018, the insurance and financial services industry has been preparing for an unprecedented technological revolution.What will be the impact of Bill 141 on your group insurance brokerage firm? Here’s how your business can leverage the coming change :
The adoption of Bill 141
As of June 13, insurers will be able to sell their financial products online without a representative, since the AMF (Autorité des marchés financiers) will not impose any constraints on the nature of insurance products distributed online. Companies will thus be able to bypass brokers by submitting their group insurance needs directly to insurance companies.
“The industry players who will benefit from this law will be those with the financial capacity to quickly develop high-performance technological tools.”
In order to provide companies with the information they need to choose group insurance, insurers will have to implement new technological tools. This will bring about a technological shift in the Quebec group insurance industry. According to Norton Rose Fullbright, the industry players who will benefit from this law “will be those with the financial capacity to quickly develop high-performance technological tools.”
What does the new law mean for group insurance brokers?
The competitive environment for group insurance is expected to intensify as of June 13, 2019. Not only will the main competitors of brokers—the insurers—be able to do business over the Internet, but businesses will require faster and more technologically advanced services.The era of storing customer data in file cabinets is therefore coming to an end. Your customers’ expectations will grow as the competition takes the technological lead. Many brokers are concerned about their future: without an intermediary, sales will represent significant savings for insurers.
What is the purpose of Bill 141?
The primary goal underpinning the new legislation is to modernize the Quebec insurance industry and encourage key players to adapt to market demands. It will change InsurTech in the province and bring new technologies to the market.
How can XRM Tandem help you?
Optimizing your brokerage productivity and the quality of your customer service will be essential when your suppliers—the insurers—start selling directly online. Now is the time to capitalize on your own technological shift as the industry evolves.XRM Tandem manages all aspects of a group insurance broker’s operations. From managing your prospects to creating your insurance policies, our unique platform covers all your needs.[caption id="attachment_8001" align="aligncenter" width="406"]
Brokers who integrate a management system see their revenues increase by 156%.[/caption]Our customers report that its adoption leads to a reduction of over 50% in data entry time, and your customer data will be stored in a single place. This will greatly speed up your response time to customer requests and questions.
How advanced technology can benefit your brokerage:
• 50% reduction in time spent on administrative tasks• 40% increase in information accuracy• Automated contract creation in a single day[caption id="attachment_8008" align="aligncenter" width="417"]
Brokers who adopt a management system spend 50% less time on clerical work.[/caption]Speak with Dina, a technology expert for the financial services industry, about all the benefits of leveraging the latest technological advances to optimise your performance.
- Who? Insurers across all industries (including group insurance)
- What? New section in Bill 141 of the Insurance Act
- October 5, 2017: Quebec Finance Minister Carlos Leitão introduces Bill 141
- 400 amendments made at the request of the Chambre de la sécurité financière and the Chambre de l’assurance de dommages
- June 13, 2018 : The National Assembly of Québec adopts Bill 141: An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions
- October 17, 2018: SThe AMF holds a public information session on the proposed framework for the distribution of financial products via Internet
- December 10, 2018: End of the public information session held by the AMF
- June 13, 2019: Start of online sales of insurance products