Company Service of Clients

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A national position paper by IBAC.

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COMPANY SERVICE OF CLIENTS

National Position Paper


Whereas some insurance companies endeavour to service personal lines clients directly or through
regional service centres;

And Whereas this arrangement often leads to loss of customer contact resulting in reduced sales
opportunities;

And Whereas this arrangement often leads to a loss of or reduction in renewal commissions to the
broker, and gives rise to errors and omissions potential;

And Whereas the insurance companies cannot guarantee market availability sufficient to allow the
broker to prosper on first year commissions;

Be It Resolved Therefore That the Insurance Brokers Associations of Canada hereby
expresses its strong concern that direct insurance company service to the clients of independent
property and casualty insurance brokers -- with the exception of claims service centres, either from
existing branch offices, toll-free telephone call centres or regional service centres -- is in conflict
with brokers tradition of and esteemed reputation for providing professional advice, service and
choices of alternative markets to their clients.


















September 2001

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