Brokerage Industry: Driver of the Quebec Economy and a Creator of High-Quality Jobs

LONGUEUIL, QC, March 25, 2015 /CNW Telbec/ - A study on the brokerage insurance industry in Quebec, sponsored by BMO Bank of Montreal and carried out by the firm Raymond Chabot Grant Thornton on the initiative of the Regroupement des cabinets de courtage d'assurance du Québec (RCCAQ), shows that the sector supports more than 10,356 jobs while delivering significant benefits to all Quebec regions.

To gain a clearer understanding of all facets of the brokerage insurance industry in Quebec, including the changing market, economic benefits and job prospects, senior RCCAQ executives commissioned Raymond Chabot Grant Thornton to provide an overview of Canada's largest insurance market: damage insurance (fire, accidents and various risks), which represents 55.4% of the total market value, compared with 44.5% for personal insurance.

Key conclusions

• In Quebec, the brokerage sector is the primary distribution model for damage insurance, representing 52.28% of the Quebec market or $4.48 billion in premiums.
• The annual economic benefits associated with the industry amount to $657 million and are supported by 10,356 direct and indirect jobs.
• The brokerage insurance industry offers high-quality jobs in all regions of Quebec.
• Unlike direct insurance companies, brokerage firms are present in all regions of Quebec.
• The Quebec government takes in approximately $392 million in tax revenues while the federal government collects more than $34 million.

Key findings

In view of the study's key findings, this market single-handedly directly creates 7,610 jobs, in addition to 2,746 jobs supported indirectly by brokerage insurance firms across Quebec. Although the Montreal, Quebec City and Montérégie regions represent the largest employment pools for this sector, a total of 338 firms, with nearly 2,300 employees/certified owners, help to keep the regional economies flowing.

In addition, the brokerage industry offers high-quality jobs province-wide. In light of the very low unemployment rate, a higher average salary than the Quebec average (+$45,000) and the pressing need for labour in the future (due to the expected aging workforce), the broker profession still ranks among the most promising career choices.

"We're hearing the same message from the Coalition [pour la promotion des professions en assurance de dommages]," says RCCAQ chair Vincent Gaudreau. "According to a survey commissioned by the Coalition in 2013, a total of 1,452 posts must be filled in 2015 and 2016. The opportunities associated with the broker profession make it a guaranteed career choice."

Supporting entrepreneurship

The broker profession may also lead to entrepreneurship. According to figures compiled by Raymond Chabot Grant Thornton, 67.5 % of brokerage firms have 1 to 4 certified employees/owners. "Most brokerage firms are small or medium-sized businesses. Also, your broker is probably an entrepreneur," says Vincent Gaudreau. "Brokers are passionate and determined. They know how to seize the initiative and create dynamic opportunities. They are professionals who love to engage with people. Most importantly, they care about their work."

Working for consumers

Although the brokerage insurance industry is a high-job-potential sector with benefits for all regions, the market is constantly changing. "We have to remain vigilant," says Mr. Gaudreau, who maintains that brokers have fared well thus far while the brokerage sector has seen numerous challenges and major changes in recent years. "Thanks to the technological evolution and new consumer habits, we have seen major changes in our processes, although we are working tirelessly to renew our approach in keeping with our clients' expectations and needs. Brokers are involved in their communities and are always working on consumers' behalf."

About the RCCAQ

The RCCAQ is a professional association dedicated to promoting and defending the socio-economic interests of its member firms. It represents 4,200 brokers in some 600 firms and branch offices across the province of Quebec.

SOURCE Regroupement des cabinets de courtage d'assurance du Québec

Nadine Bourgeois, Director, Communications and Public Affairs, RCCAQ, [phone], [email protected]