What system covers more than 80% of all property and casualty insurance in Canada?

The independent brokerage system is a key component of the property and casualty insurance market in Canada, as it allows insurance brokers to represent multiple insurance companies rather than being tied to a single insurer. This system enables consumers to access a wider range of insurance products and to receive tailored advice and quotes from various carriers, which can lead to better pricing and coverage options.

Brokers in this system have a fiduciary responsibility to act in the best interest of their clients, helping them find the most suitable policies to meet their specific needs. The flexibility inherent in this model has contributed to its widespread adoption, resulting in the independent brokerage system accounting for more than 80% of all property and casualty insurance transactions in Canada.

This dominant position of the independent brokerage system reflects its effectiveness in serving consumers and its adaptability to market changes, as brokers can quickly evaluate different options as insurers adjust their offerings. In contrast, the other systems mentioned—like direct writing, mutual insurance companies, and stock insurance companies—represent different organizational models that do not provide the same level of access and personalization that independent brokers do. Thus, the independent brokerage system stands out as a critical player in the Canadian insurance landscape.