Last April, in Quebec City, Phil Marsillo called on Canadian managing general agents (MGAs) to rally around the Canadian Association of Independent Life Brokerage Agencies (CAILBA) to build a unified voice to address the challenges facing independent life insurance distribution.
Eight months later, CAILBA’s President revealed that the message was heard as the association recruited 18 new members. They come from Ontario, Quebec, British-Colombia and from the national accounts in the securities network.
On top of being CAILBA’s President, Marsillo is President of IDC Worldsource Insurance Network Inc.
While in Drummondville, Quebec, on December 7, Marsillo reiterated the importance of getting involved in the association, as without this action, there would be no more CAILBA nor representation of agencies in independent distribution issues in the industry. In each case, he said, it is better to participate at the beginning of conversations between parties to ensure that developments do not create conflicts in independent distribution.
Having a greater regional presence was on CAILBA's board agenda. The association's meeting took place in Drummondville, halfway between Quebec City and Montreal. In October, the association also held meetings in Toronto and Vancouver. Each of these meetings welcomed approximately 50 people.
Marsillo reiterated his April message: the board's governance rules need to change. "We need to welcome more diversity and more stakeholders." By accepting companies that play a complementary role in the network, Marsillo acknowledged that, at times, the association would take positions that are not necessarily unanimous. According to him, 74% of distribution in Canada is carried out by general agents and national accounts, which are insurance branches in securities networks.
Among the current issues that CAILBA is addressing are the abolition of deferred fees, a project to have a contract that binds manufacturers, distributors, and sellers, and cybersecurity. Phil Marsillo added that the latter point represents a major risk in the network.
"Distribution is no longer what it used to be; it is more regulated," Phil Marsillo explained. Nevertheless, the industry must work for consumers. We are not a union, but we must promote independent distribution."
When asked by the Insurance Portal about the number of policies sold in Canada, which, according to LIMRA, decreased from 700,000 in 2010 to 600,000 in 2022, Marsillo countered with the benefits that the industry provides. In 2022, 16.1 billion dollars (CAD) were paid out to individual life insurance policyholders in compensation. In the group insurance sector, 43,9 billion dollars (CAD) were paid out. In 2021, 14.3 billion dollars (CAD) were paid out for individual life insurance, while group insurance plans disbursed 40.8 billion dollars (CAD) to policyholders. For Marsillo, this demonstrates that the industry keeps its promises.
