The Ontario Broker - October 2019 - 12

LET'S TALK PAYMENT
WHY DON'T BROKERS WANT TO
ASK FOR PAYMENT?

Brokers are passionate about protecting and
providing excellent service for their clients,
but often shy away from asking for payment.
I think the industry's made it difficult for
brokers-not by design, but by evolution.
WITH STUART BRUCE
CEO
FIRST INSURANCE FUNDING OF CANADA

For brokers, the quote or policy typically
comes from the carrier or MGA; that leaves
a disparate process for the broker to seek
payment, which can be awkward. When a
client is ready to pay, brokers often have
separate processes and accept different
payment methods via direct bill vs agency
bill. It's a lot of work for brokers and it's
confusing for clients.

And it's why we present all payment options
on one form and have developed technical
solutions so it can be included at the point
of sale with the policy or quote. It's the same
streamlined process every time. It's a much
more inclusive way of offering choice, and
it eliminates the need to ask for payment
separately and reduces friction for both
clients and brokers.
HOW HAVE PAYMENTS CHANGED?

In the early days, clients paid with cash
and cheques. Cash became less frequent,
especially for commercial insurance due to
increasing premium size, but a lot of brokers
still rely heavily on these same payment
methods.
At the other end of the spectrum we have
payment innovations like online debit and
credit cards, contactless payments, email
transfers or P2P payments similar to PayPal.

BROKERS ARE
MISSING A KEY
TOUCH POINT TO
DIFFERENTIATE THEIR
SERVICE WHEN IT
COMES TO PROVIDING
INNOVATIVE PAYMENT
METHODS.

OCTOBER 2019

12

I think those without innovative payment
methods and a streamlined process will be
left behind. Clients compare us to everyone
else they do business with and benchmark
our service to new norms. In theory, the
big companies should be slow to adapt and
change due to their large infrastructure
and brokers should be nimble and quick to
adopt new technology. Brokers are missing a
key touch point to differentiate their service
when it comes to providing innovative
payment methods-today's and more
importantly, tomorrow's clients are looking
for simplicity, speed and convenience.

WWW.IBAO.ORG
http://WWW.IBAO.ORG
The Ontario Broker - October 2019

Table of Contents for the Digital Edition of The Ontario Broker - October 2019
