France Dallaire boasts years of experience working in Quebec's insurance industry (mainly in the property and casualty insurance line of business). We decided to sit down with France, Senior Vice President, Operations - Quebec, to discuss the nature of the province's insurance market. France shared insights into Quebec's particular market, why she chose to work with NFP and what NFP has to offer its clients in the region.
Editor's note: This interview has been edited for clarity and brevity.
NFP: What's the P&C insurance market like in Quebec? How does it differ from the rest of Canada?
France Dallaire: The main difference in Quebec, compared to other provinces, is the consolidation of the market. In fact, 65 per cent of personal insurance is concentrated on direct insurance companies. And, 80 per cent of the Quebec market is concentrated around four Quebec insurers. Another interesting fact; Quebecers gravitate towards buying locally. So, we need to do things differently to stand out.
NFP: Why are consumers in Quebec more likely to favour direct insurance companies as opposed to brokers? Does this have to do with the market?
France: Direct insurance companies have been present in Quebec for a very long time. Also, they have extensive marketing tactics - they are everywhere in the media.
When it comes to brokers, the clientele is very different. It's usually clients with more personal assets, more vehicles, and more houses. On the direct insurance side, it's often new clients with new rental property or a new vehicle.
NFP: In terms of regulations, how are things different in Quebec in comparison to the rest of Canada?
France: The first difference is the Charter of the French language. We are the only province with this type of charter and it's very important in the business environment - and everywhere in Quebec. The Charter is designed to help maintain the French culture. If a business has 50 employees or more, you need to be registered to the Office Quebecois de la langue francaise.
That means you need to follow the rules with French prioritized everywhere. If a company has 100 employees or more, it needs to develop a committee to ensure that French is being promoted in the company. Therefore, it's a big challenge for an English-speaking company to come to Quebec because you need to implement francization of all your tools and communication. Working with NFP is great because NFP is very engaged in this process. There are many people involved to ensure we respect those regulations. If we're looking to grow in various cities in Quebec, we need to be able to present all our services in French.
The other important thing to note is the Autorité des marchés financiers.. It's the organization responsible for all the financial services. They are very strict in Quebec. For example, when a brokerage owns more than 20 per cent of voting rights, they are obligated to disclose their revenue to the client. they need to disclose 20 per cent of their shareholdings to the clients. The same rules applies if 60 per cent of the volume of a line of business is concentrated with an insurer. So, an independent broker will try to do everything not to be in this situation. However, with all the consolidation we have in the market, the situation has been difficult for independent brokers.
Additionally, it's important to present ourselves to the client in the right way. For example, we need to present our titles in a way that doesn't create confusion for the client. This means creating consistency and clarity at every touchpoint with the client from the business card to the email communication to all documentation.
Also, Quebec's regulations are not linked to the common law. The provincial regulations are aligned with the Civil Code of Quebec and the Automobile Insurance Act. This results in variations in the way a policy is interpreted and the processing of claims, especially with automobile accidents. The government covers bodily injuries when there's an automobile accident, which means premiums are much lower here. Additionally, when considering the premiums earned by the insurance policy, it needs to be measured based on risks per head count rather than volume per head count. Moreover, the Civil Code is different in terms of liability resulting in different premium amounts for insurance policies.
NFP: Yes, that makes sense. You mentioned there's opportunity for brokers to grow in Quebec. What makes NFP stand out in the province?
France: There are many opportunities for NFP in Quebec. We have access to many carriers who aren't available to many brokers. Also, NFP has a broad spectrum of financial services available to clients, so it gives clients more options when shopping for insurance. We have group benefits, life insurance, complex risk solutions and international risk and more. So, the opportunities for cross selling are unlimited. This enables NFP to create a strong partnership with a client that can be maintained for a long period of time. We have exclusive programs at all lines of business that can respond to our clients' needs. Finally, we have a strong Mergers & Acquisitions team. There are some independent brokers in Quebec that are struggling now because they have a smaller market with less succession capacities.
An interesting point about certain carriers in Quebec like Desjardins, Beneva and Promutuel is that they are cooperatives or mutual insurance companies. This is a model that is very popular in the province of Quebec. This model enables clients to feel like they are part of a company, so clients are considered members of the company and can profit from the revenue of the company.
Also, it has to do with physical presence in the province. Insurance companies in Quebec have offices in all regions of the province. In fact, the carriers who are most successful in Quebec have the most offices across the province.
It is also beneficial for recruitment to have satellite offices across the province because you would be able to connect with great talent in the region.
NFP: Why would you recommend NFP to a prospective client? Is it the range of offerings available to clients?
France: There are two things: First, is the range of financial services available to clients. Second, the people. From the initial contact I had with the vice-president of Human Resources, Jennifer Barker, and Chief Operating Officer John Belyea, I noticed everyone in the company wants to help. Everyone wants to succeed. Everyone wants to provide the best experience to the client. For me, a People First approach is the best offering to a client. That in essence is the purpose of a broker; it's about offering the client the best service, the best product at the best rate possible.
A company that embodies a people-centric approach will always be mindful of the relationships we build with our clients externally and internally as well.
For me personally, I also enjoy the challenge of introducing NFP in Quebec. I'm also looking to grow my experience in the brokerage side of the insurance business because my experience has been predominantly with direct insurance carriers. I can confirm that making the leap to NFP is one of the most important decisions I have made in my career. I am happy with my choice and proud to be part of this great family.