Special feature: Brokers face challenging future, industry veteran says
With independent brokers fighting off direct writers, banks and takeovers by insurers, Thompson’s asked industry veteran John McArthur for his views on their future.
The chairman of AMAC Consultants is a former president and ceo of the Canadian subsidiaries of two U.S.-based insurers. He now specializes in mergers and acquisitions and senior level executive searches.
In a page-long reply, he says among other things that he sees a very dim long-term future for truly independent brokers in the private auto provinces in delivering commodity personal lines products in the traditional manner.
The majority of personal lines-orientated brokers coming on the market in the next two years will go to insurance companies or brokers partially owned or financed by insurance companies.
Independent brokers cannot pay the current high prices using conventional sources of financing.
Brokers in three of the western provinces are protected species by government auto insurance.
Mr. McArthur makes many other fascinating predictions.
Posted: August 22nd, 2008 under Auto Insurance Quotes, auto insurance coverage, auto insurance rates, car insurance companies, car insurance rates, car liability insurance, cheap car insurance, commercial car insurance.
Comments
Comment from jeniffer
Time October 4, 2008 at 9:15 pm
this is really very important auto insurance information to know. thank a lot.
Comment from jeniffer
Time October 4, 2008 at 9:00 pm
this is really very important information to know. thank a lot.