Choosing a new insurance broker is a common step for Canadians who feel their current broker has stopped keeping pace with their needs, whether that shows up as slow callbacks, a policy that has not been reviewed in years, or simply moving and wanting someone local. The good news is that changing who services a policy is usually a straightforward administrative step, separate from shopping for new coverage entirely.
This article walks through how to switch insurance brokers in Canada: the reasons people typically make the move, what actually happens behind the scenes, and what changes versus what stays the same on an existing policy.
What Is Switching Insurance Brokers?
Switching insurance brokers means moving the servicing of an existing insurance policy, whether personal or commercial, from one licensed broker to another, without necessarily changing the insurer, the coverage, or the premium. It is different from switching insurance companies, which involves ending one policy and starting a new one with a different insurer.
Most switches happen through a broker of record letter, a short signed document that tells the insurer to recognize a new broker as the authorized contact on a policy. The letter redirects servicing and commission going forward; it does not, by itself, touch the underlying policy.
Why People Switch Insurance Brokers
A handful of reasons come up repeatedly when Canadians decide to change brokers.
- Slow or inconsistent service. Long waits for a callback, a certificate of insurance, or an answer to a coverage question are among the most common triggers.
- A policy that has not kept up with life changes. A new vehicle, a renovated home, or a growing business can outgrow coverage that has not been reviewed in years.
- A move to a new city or province. Some clients prefer a broker with local market knowledge in their new location.
- A referral from someone trusted. A friend, accountant, or lawyer recommending a broker they work with is a common prompt to compare options.
- Wanting access to more markets. A broker with relationships across more insurers can sometimes shop a risk more widely, particularly for harder-to-place commercial accounts.
Price is often part of the conversation too, though a broker of record change on its own does not automatically change what a policy costs. Any premium difference generally comes from remarketing the account to different insurers, a separate step a new broker may offer to take on.
How the Switching Process Works
Moving from one broker to another typically follows the same sequence, whether the policy is a personal auto policy or a commercial package.
- Talk to a new broker. Most people start by having a conversation with a broker they are considering, reviewing their current policy details and what they are looking for.
- The new broker prepares a broker of record letter. This document names the insurer, the policy or policies affected, and an effective date, and is usually drafted by the new broker for the client to review.
- The client signs the letter. Since the letter is the policyholder's own instruction to the insurer, only the named policyholder, or someone authorized to sign for a business, can execute it.
- The letter goes to the current insurer. The new broker generally submits the signed letter directly, sometimes copying the outgoing broker.
- The insurer updates its file. Once processed, future renewals, endorsements, and correspondence route through the new broker.
A deeper look at this document, including typical timelines and what it does and does not change, is covered in what a broker of record letter does in Alberta, which applies to the same mechanism used across the country.
What changes and what stays the same
| Generally changes | Generally stays the same | |
|---|---|---|
| Broker of record letter | Which broker is the authorized servicing contact | The insurer, the coverage, the limits, and the premium already in place |
Coverage varies by policy and insurer, so anything beyond who services the account is a separate matter to confirm directly with a licensed broker.
Benefits of Switching Insurance Brokers
Moving to a new broker gives a client a way to reset the service relationship on an existing policy without starting the underwriting process over or risking a gap in coverage. Because the change is generally administrative, it also tends to move faster than shopping for an entirely new policy. For someone who has been frustrated by unreturned calls or a broker who never revisits their file, that reset alone can be worth the short paperwork step.
A broker of record change can also open the door to a broader review. Many new brokers use the opportunity to look at whether existing limits, deductibles, and endorsements still fit the client's situation, even when the insurer stays the same.
Where You'll Come Across Broker Switching
Broker of record changes tend to surface at a handful of recognizable moments rather than as routine, unprompted paperwork.
- After a frustrating claim or service experience, when a client decides they want a different point of contact going forward.
- Near renewal, when a client compares how their current broker has performed over the past year against other options.
- After a move, when a client wants a broker with knowledge of their new city or province.
- Following a referral, when a trusted contact's broker seems like a better fit.
- During business growth, when a company outgrows the capacity or specialization of its current broker.
Talk to a Licensed Broker About Switching
Whether switching brokers makes sense for a specific policy, and what a broker of record change would and would not affect, is worth reviewing directly with a licensed professional before signing anything. An insurance broker can also explain how a switch interacts with an upcoming renewal or a policy that has not been reviewed recently.
A MyBrokers broker can walk through what to expect if you are considering a change, including for a growing operation's business insurance program. Start a commercial insurance quote to connect with an independent insurance broker.