(September 7 – 10:10 ET) – Bank of Montreal today launched an innovative package of banking services for Quebec-based insurance brokers. It will help fund the industry’s consolidation and maintain its independence.
The program, which is available to brokers who belong to Regroupement des Cabinets de Courtage d’Assurance du Québec (RCCAQ), is being pitched as a method of giving brokers the financing they need. It intended to allow them to remain independent from the insurance companies they otherwise depend on for their survival.
BMO will value brokers’ books as a method of setting financing terms, both for acquisition and simple operating financing.
BMO will also offer preferred rates on trust fund deposits, and the usual slate of corporate banking services: operating accounts, a 25% discount on monthly banking fees, Group RRSPs, payroll, and assorted other services.
Gilles Jarry, senior vice-president Quebec Division at BMO, says, “This program will value a brokerage’s book of business, by recognizing the value of the client list, and utilize that value to facilitate the provision of financing.”
-IE Staff
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