In an increasingly competitive environment for independent insurance brokers, the CEOs of four Canadian insurance companies underscored their commitment to continue supporting brokers as a distribution channel on Thursday.

At a panel discussion during the annual Insurance Brokers Association of Ontario’s annual convention, the CEOs launched into a heated debate on current issues facing the insurance industry.

Much of the discussion was dominated by the status of the broker distribution channel in the current changing market — a topic very relevant to the packed audience of brokers present. The panelists pointed to market research showing that advice in purchasing insurance is highly demanded among Canadians.

“Canadians want independent advice and choice in terms of the purchase decisions for the products we sell,” said George Cooke, president and CEO of The Dominion of Canada General Insurance Company.

This is true despite the increasing role of the Internet as a source of information for customers, said Jean-Francois Blais, president and CEO of AXA Canada. “Very few people buy online; they want help,” he said. “The business belongs to the broker, 100%.”

Personalized advice is a key advantage that the broker channel has over direct delivery of insurance products, according to Kevin McNeil, president and CEO of Gore Mutual Insurance Company.

A key message from all the panelists is that brokers and insurance companies need to work more closely together to attract customers and enhance service.

“We need to start working collectively,” said Derek A. Iles, president of ING Insurance Co. of Canada. He added that the company is working on making it easier for brokers to deal with ING. “We’ve got to find a way to seamlessly pull in customers, and pull them in through the broker channel.”

A key aspect of enhancing customer service is utilizing better technology that allows brokers to provide clients with information more efficiently, according to Kevin McNeil, president and CEO of Gore Mutual Insurance Co.

“In terms of improving competitiveness in the channel, what’s really important is going to be technology,” he said, adding that utilizing better technology could help brokers surpass direct sales as a delivery method. “We can have their technology, but they can’t have our customer service capabilities.”

By working more closely with brokers, insurance companies can also play an important role in building the business of brokers, according to Cooke. He said as the customer service representative that works directly with clients, brokers should be using every opportunity to market their brand, rather than the brand of the insurance company.

On the topic of the credit crunch, the CEOs asserted the strength of the Canadian financial system and the advantages it has proven to have through the turmoil.

“We’re going to weather the storm,” said McNeil. He added that while the insurance industry is sure to face challenges in the economic downturn, it will continue to perform well given the resilient demand of insurance among consumers.

For brokers and consumers concerned about the financial health of an insurance company, McNeil said the most important factor to consider is its minimum capital ratio.

Iles asserted that ING Canada is in strong financial shape, despite the Dutch government’s move to bailout its parent company. He said the publicly listed domestic entity is completely separate from its European-based parent.

“We’re in very good shape,” he said, noting the company’s lack of debt and positive cash flow.

AXA Canada, meanwhile, has taken actions to make itself essentially immune from global financial market turmoil, said Blais. This included such measures as hedging all its equities and repositioning assets. “We are pretty much immune,” he said.