The BRIDGE Vol 1 2019 | Director's Corner with Louie Tsafkopoulos
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Anxious Anticipation
I have spoken before about the current state of the insurance industry and the challenges both insurers and brokers are facing. We continue to believe strongly in the health of this industry and all of its stakeholders and are anxiously watching to see what changes may come as a result of the recently released Ontario Budget.
The suggested changes announced by the government are good news and the proposed reforms attempt to address many items that the Insurance Bureau of Canada (IBC) and our industry have been advocating to improve upon for several years.
It is important to note that this is a multi-year plan, and the proposal includes a number of initiatives that need greater clarity. The government states they will work closely with IBC and the industry to clarify the details of these initiatives before they are implemented. During this process, all stakeholders need to come together and have a voice that speaks loud enough that government and regulators hear about the work that needs to be done.
All over the country we are seeing auto insurance reviews and talk of reform as part of political platforms. We are keeping involved in collaboration with the IBC and I was pleased to see the recent study that IBAC commissioned with Deloitte, which showed the importance of Property and Casualty Insurance on the Canadian economy. Here are a few key points from the study:
- The industry employees 126,000 people and generates a net written premium of $47Billion
- It is estimated that annually Brokers contribute over $5 billion to Gross Domestic Product and $484 million to government taxes
- Brokers employ over 58,000 people and pay over $3 billion in income
These are numbers that cannot be ignored by government. Strong insurance carriers and a healthy Broker network are key drivers and enablers of a strong economy. I am thrilled to be a part of this ecosystem and anxious to see what changes that may come from the Ontario government that will influence the ever-evolving landscape of our business.