In personal lines property and casualty insurance, brokerage now represents only a third of the local market in Quebec, and this share has been steadily declining for several years due to the rapid growth of direct sales models, notes KPMG in a recently published French-language white paper.

“This evolution is putting increased pressure on a segment characterized by lower margins and limited differentiation,” explain the authors, all members of KPMG’s Strategy & Operations team: Geoffrey Barthelot, Céline DePalma, Jim Forget, and Josiah Anzenberger.

As a result, brokerage firms are focusing on auto- and home-based personal insurance portfolios. This frees up more time and resources to concentrate efforts on commercial insurance lines of business, where the broker’s advisory role is crucial.

Entitled, Assurance de dommages par courtage 2026 (Property and Casualty Insurance Brokerage 2026) the authors of the document aim to answer the following question: How are brokers expected to evolve as the linchpin of the relationship between insurer and client?

The key findings of the white paper are based on a mixed-methods approach that combines quantitative surveys and qualitative interviews with various industry stakeholders.

Evolving customer needs, the adaptation of cybersecurity products, and the digitization of business processes are all structuring forces that will weigh on the market over the next five years, according to respondents to the KPMG survey.

The significant investments required by brokerages are occurring “within a context of increased pressure on premium volumes, combined with an increasingly demanding regulatory and compliance framework.” This equation contributes to accelerating market consolidation “where achieving critical mass is becoming a key factor in competitiveness,” the authors add.

In collaboration with the RCCAQ

Over the years, consulting firms have published numerous analyses and discussion papers concerning the property and casualty insurance sector and the future of brokerage distribution. The white paper published by KPMG adds another piece to this puzzle.

Its unique feature? The RCCAQ, the Regroupement des cabinets de courtage d’assurance du Québec (Quebec Association of Insurance Brokerage Firms) participated in the study. Éric Manseau, the RCCAQ’s Executive Director, and Brigitte Guay, Director of Communications and Public Affairs, are listed as contributors to this white paper.

The RCCAQ contributed to the document's dissemination by publishing an entry in the toolkit section of its website on June 5. The organization summarizes the main points of the white paper without, however, indicating how the document could be used.

When contacted by the Insurance Portal, Éric Manseau clarified by email: “The RCCAQ did not commission the study in question. It was an initiative of the firm KPMG, with which we collaborated, notably to facilitate contact with certain brokerage owners/brokers and to conduct a preliminary review of the report.”

He added: “Since the topic is central to the daily lives of our members, this collaboration seemed a natural fit. In this context, without KPMG's leadership, this study would never have seen the light of day.”

At the time of writing, only a French version of the white paper was publicly available.

The study’s scope

The authors note that the property and casualty insurance brokerage market “is an ecosystem based on strong interdependence between brokers and insurers. When this collaboration is seamless, it becomes a powerful driver for the entire value chain, but when it becomes fragmented, it hinders performance and the end-customer experience.”

However, the document does not provide a clear assessment of the degree of seamlessness of this collaboration between brokers and insurers in the Quebec market.

Customer expectations and strategic priorities

The expectations of commercial clients have also evolved, KPMG points out. Three main expectations of brokers were mentioned by survey participants.

First, clients want more efficient handling of requests and claims.

Second, they want personalized interactions with their broker.

Third, clients are looking for more competitively priced products. They want a better balance between the coverage offered and the cost of the product.

To enable the sustainable growth of brokerage firms, three strategic priorities are mentioned in the white paper:

  • Specialization is becoming a differentiating factor, creating a more targeted relationship and greater proximity to clients.
  • Growth through acquisitions must be accelerated due to insurers' premium volume requirements.
  • Technology helps increase productivity, allowing brokers to focus on support, advice, and key moments in the client relationship.

Three solutions

The authors indicate that collaboration between brokers and insurers will need to be strengthened to better meet client expectations. To evolve the partnership to improve the client experience, the authors propose three approaches.

Supporting brokers at key moments in the customer journey: Interactions between insurers and clients occur during claims prevention and management. Interviews reveal that this claims stage "is a major point of friction in the customer experience." Brokers want better support at this stage through simplified processes, in order to strengthen the relationship of trust between the client and their broker.

Supporting prospecting through tailored marketing collaboration: Implementing joint campaigns and providing access to specialized tools should contribute to generating leads. In interviews, brokers emphasize the importance of preserving their autonomy and their central role in the client relationship. "Effective marketing collaboration relies on complementarity and respect for the brokers' code of ethics," the authors explain.

Innovating together to transform the customer relationship: Pilot projects conducted jointly by insurers and brokers should aim to evolve practices and interactions with clients. Experimenting with new approaches helps with adapting products and services to the constantly evolving needs of clients.

“By providing concrete and targeted support at key moments, insurers contribute to the sustainable performance of the brokerage model, in which client trust and loyalty are strengthened,” the authors explain.