Online insurance dealer supports brokers

(March 22, 2004) In an age where technology has revolutionized the financial services industry, there have been many positive developments, making life easier for the professionals in the field.

But there has also been a downside, according to David Slabodkin, president of Canada Protection Plan (CPP). He says the direct sales model presented by the Internet poses a threat to the broker community and could eliminate up to one-third of brokers within the next five to seven years.

“Our company is built on this broker network, which I believe needs to be protected and must evolve to meet the challenges of technology and the profitability requirements of the insurance carriers,” he says. “Brokers provide a vital service to the consumer and the underwriting insurance companies. There needs to be a balance between technology, profitability and personal service.”

To that end, CPP has rolled out an online insurance brokerage which manages to keep the broker in the picture.

When a product is purchased online through CPP, the commission on the policy will be given to the broker who is geographically closest to the client, based on his postal code. In addition to this “free commission,” the broker is given the lead for free.

To qualify, the broker must be contracted with CPP and submit an average of two cases per month to CPP.

“By providing incentives such as described to brokers, we expect to increase our sales dramatically over the next 12 months while keeping what I believe to be a balance that meets the needs of all,” says Slabodkin.

For more information about the CPP, go to its new Web site at www.cpp.ca.

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