Consumers want insurance info, bankers’ poll suggests

By Steven Lamb | February 14, 2006 | Last updated on February 14, 2006

3 min read

That consumers be afforded access to insurance product information from bank branches
That banks be permitted to tailor insurance information to the individual
That the banks be permitted to share information, on the client’s approval, with insurance professionals
That bank staff be allowed to refer clients to external insurance professionals

The CBA says its poll supports these recommendations, with 90% of respondents wanting more insurance choices; 85% supporting in-branch information; and 83% wanting their bank to refer them to an insurance professional. Seventy-seven per cent think they should be allowed to give their bank permission to share information with an outside insurance agent.

“All we are proposing is to give the consumer access to more information when they’re shopping for insurance,” says Protti. “The decision about what to buy and from whom would still be the consumer’s alone, as it should be.”

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

(02/14/06)

Steven Lamb

Share

That consumers be afforded access to insurance product information from bank branches
That banks be permitted to tailor insurance information to the individual
That the banks be permitted to share information, on the client’s approval, with insurance professionals
That bank staff be allowed to refer clients to external insurance professionals

The CBA says its poll supports these recommendations, with 90% of respondents wanting more insurance choices; 85% supporting in-branch information; and 83% wanting their bank to refer them to an insurance professional. Seventy-seven per cent think they should be allowed to give their bank permission to share information with an outside insurance agent.

“All we are proposing is to give the consumer access to more information when they’re shopping for insurance,” says Protti. “The decision about what to buy and from whom would still be the consumer’s alone, as it should be.”

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

(02/14/06)

In what could soon be a tale of duelling surveys, the Canadian Bankers Association (CBA) has issued a report indicating Canadian consumers want easier access to insurance information in bank branches.

With the federal government currently reviewing the Bank Act, the issue is attracting more attention than ever. On Wednesday, Advocis will be releasing its own survey on consumer attitudes towards banks and insurance (be sure to check Advisor.ca for coverage of that survey).

The CBA survey, conducted by The Strategic Counsel, found that 91% of respondents agreed that it was “a good idea” to provide consumers with “as many choices as possible for information about insurance products, including bank branches.”

The same percentage said they would not feel obligated to buy insurance from a bank, just because it provided them with information or referred them to a qualified agent. This has been one of the key arguments put forth by the insurance industry against allowing the banks unfettered access to the insurance market.

“Consumers have said that they want the ability to shop around, gather information and obtain rates and features about insurance products from a variety of sources, including banks,” says Raymond Protti, president and CEO of the CBA. “Why would anyone oppose Canadians’ right to access the information they want to make informed insurance decisions? How is an informed consumer a bad thing?”

The survey also found 89% of respondents who use a broker would find it useful to have more information from outside sources before they met with that broker. And the survey suggests a certain level of mistrust directed at insurance brokers. Only 30% said they believed their broker shopped “all or most of the companies in the marketplace” before making a recommendation.

It is unclear how an insurance referral from a bank-based advisor would be any less biased toward select companies.

Aside from the marketing advantage that the banks might hold if allowed unrestricted access to the insurance market, there are other criticisms. Some have expressed concern that the commingling of insurance and credit data could adversely affect consumers.

While the CBA is not explicitly pushing for in-branch insurance sales, the group is currently putting forward four recommendations to Parliament:

That consumers be afforded access to insurance product information from bank branches
That banks be permitted to tailor insurance information to the individual
That the banks be permitted to share information, on the client’s approval, with insurance professionals
That bank staff be allowed to refer clients to external insurance professionals

The CBA says its poll supports these recommendations, with 90% of respondents wanting more insurance choices; 85% supporting in-branch information; and 83% wanting their bank to refer them to an insurance professional. Seventy-seven per cent think they should be allowed to give their bank permission to share information with an outside insurance agent.

“All we are proposing is to give the consumer access to more information when they’re shopping for insurance,” says Protti. “The decision about what to buy and from whom would still be the consumer’s alone, as it should be.”

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

(02/14/06)

In what could soon be a tale of duelling surveys, the Canadian Bankers Association (CBA) has issued a report indicating Canadian consumers want easier access to insurance information in bank branches.

With the federal government currently reviewing the Bank Act, the issue is attracting more attention than ever. On Wednesday, Advocis will be releasing its own survey on consumer attitudes towards banks and insurance (be sure to check Advisor.ca for coverage of that survey).

The CBA survey, conducted by The Strategic Counsel, found that 91% of respondents agreed that it was “a good idea” to provide consumers with “as many choices as possible for information about insurance products, including bank branches.”

The same percentage said they would not feel obligated to buy insurance from a bank, just because it provided them with information or referred them to a qualified agent. This has been one of the key arguments put forth by the insurance industry against allowing the banks unfettered access to the insurance market.

“Consumers have said that they want the ability to shop around, gather information and obtain rates and features about insurance products from a variety of sources, including banks,” says Raymond Protti, president and CEO of the CBA. “Why would anyone oppose Canadians’ right to access the information they want to make informed insurance decisions? How is an informed consumer a bad thing?”

The survey also found 89% of respondents who use a broker would find it useful to have more information from outside sources before they met with that broker. And the survey suggests a certain level of mistrust directed at insurance brokers. Only 30% said they believed their broker shopped “all or most of the companies in the marketplace” before making a recommendation.

It is unclear how an insurance referral from a bank-based advisor would be any less biased toward select companies.

Aside from the marketing advantage that the banks might hold if allowed unrestricted access to the insurance market, there are other criticisms. Some have expressed concern that the commingling of insurance and credit data could adversely affect consumers.

While the CBA is not explicitly pushing for in-branch insurance sales, the group is currently putting forward four recommendations to Parliament:

That consumers be afforded access to insurance product information from bank branches
That banks be permitted to tailor insurance information to the individual
That the banks be permitted to share information, on the client’s approval, with insurance professionals
That bank staff be allowed to refer clients to external insurance professionals

The CBA says its poll supports these recommendations, with 90% of respondents wanting more insurance choices; 85% supporting in-branch information; and 83% wanting their bank to refer them to an insurance professional. Seventy-seven per cent think they should be allowed to give their bank permission to share information with an outside insurance agent.

“All we are proposing is to give the consumer access to more information when they’re shopping for insurance,” says Protti. “The decision about what to buy and from whom would still be the consumer’s alone, as it should be.”

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

(02/14/06)

Industry

FAIR Canada applauds Saskatchewan’s OBSI bill

"Landmark" legislation is significant step forward in protecting investors, organization says

By James Langton |May 28, 2024

2 min read

Industry

Private equity firm buys maker of hockey rink boards

Reichmann Segal Capital Partners says it plans to invest in new product development and expansion

By The Canadian Press |May 28, 2024

1 min read

Industry

Scotiabank profits slip amid rising strain in auto loans, mortgages

Despite challenges, overall revenue grew

By Ian Bickis, Canadian Press |May 28, 2024

3 min read

Subscribe to our newsletters

Facebook

Twitter

LinkedIn

Industry News

Practice

Tax

Investments

Insurance

Economy

Partner Content

About

Customer Service

Advertise with Us

FAQ

Accessibility Policy

Statement of Ethics

Privacy Policy

Terms of Use

Industry News

Practice

Tax

Investments

Insurance

Economy

Partner Content

About

Customer Service

Advertise with Us

FAQ

Accessibility Policy

Statement of Ethics

Privacy Policy

Terms of Use

Subscribe

© 2024 Newcom Media Inc.

Member of:

Explore our other publications:

Explore our French-language publications:

We use cookies to make your website experience better. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy.

Read More