Risk & Business Magazine Gifford Associates Fall 2016 | Page 7

CHANGING TIMES

BY: MATTHEW CARR, CIP
CARR & COMPANY INSURANCE BROKERS LTD.

Changing Times
Leaving Your Comfort Zone

L

et’s face it. Embracing change
is no fun. Everyone likes
staying in his or her comfort
zone. It is called a “comfort”
zone for a reason. Even the
term itself stirs up deep feelings of calm,
relaxation, and security. But eventually,
something comes along to shake us out
of it. Change happens to us all. It’s simply
a part of life, and, in our case, business.
The insurance industry is not immune
to this phenomenon either. Below are
a few topical items that are driving
the insurance conversation and how
they might affect your business or
personal insurance portfolio:

•

•

Autonomous vehicles. Due to
technological advances, automobile
deaths are down 33 percent over the
past three years. But are drivers fully
prepared to go “hands off”? While
automobile accidents accounted
for 35,000 deaths in the United
States last year, or 0.01 percent of
the population, these were mostly
due to human error. The question
of liability is raised when an
accident is caused by a computer
or manufacturer. Although it’s
too early to tell, the owner of an
autonomous vehicle will likely have
some liability, due to unforeseen
human error or a reluctance to
fully hand over the wheel. Any
premium savings from autonomous
vehicles are possibly years away.
P2P services. Across Canada,
“sharing” services like Airbnb, Uber,
and Lyft are a prominent part of

our daily lives. While these services
may also help providers earn a bit of
income, there are many challenges
that providers and consumers
may not see, including situations
which may fall into the gaps of
personal insurance policies. Most
often, these gaps are unknown as
these activities are not disclosed to
brokers or insurers. This omission
could lead to a reduction in coverage
or, worse, denial of a claim.

“CHANGE
HAPPENS TO US
ALL. IT’S SIMPLY
A PART OF LIFE,
AND, IN OUR
CASE, BUSINESS.”
•

Preferred Communication and
Customer Service. Time flies, and
often there are not enough hours in a
day, or days in a week, to accomplish
all the tasks in our busy lives.
Increasingly, consumers are moving
to direct or online insurers when they
manage their insurance portfolios.
While many believe there are cost
savings using this approach, this is
rarely the case, and consumers are
finding out the hard way. Whether
they are underinsured, don’t have all
the applicable coverages available to
them, or have policies that are too
complex, this often leads consumers

back to the broker channel. While
many brokers have yet to embrace
the full technological advances
available to them, many have and
offer the same delivery and preferred
communication methods as do
direct insurers. This added value will
save consumers time and money.

•

Mergers and Acquisitions (M&A).
Insurance industry M&A activity
has moved beyond just insurers and
brokers. Other industry vendors
such as tech companies, claims
adjusters, and restoration firms are
consolidating dominant positions
by buying companies that help
expand their service offerings. The
main concerns for clients, however,
should be the availability and
diversity of products. Brokerage
mergers strengthen brokers’ positions
with insurers, as do third-party
mergers, but insurer mergers and
acquisitions take a potential market
away from consumers. Having too
much choice can be a bad thing;
having none is worse. Our brokers
can help you make that choice an
easy one that suits your needs.

With change comes uncertainty, but
with the help of one of our professional
insurance brokers, we will be sure to look
out for your best, long-term interests. +

CARRANDCOMPANY.CA

FALL 2016

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