Despite the headline, RBC is playing catch up here. 

Royal Bank in March began allowing Canadians across the country to buy home and auto insurance online. And while it has been possible to get a variety of insurance quotes online, there is an expansion underway in the types of policies that can actually be purchased over the Net.

Source: TheStar.com – RBC sees Internet potential

Canadian banks find themselves in the quirky position that they can sell insurance provided they do so online.  This is a government regulation.

Earlier this summer, Canada’s banks lost an appeal of a decision that prevents them from using their branches to sell or promote insurance in their branches, though they can sell policies through separate firms.

Meantime this remains a fabulous opportunity to both maximise share of wallet, and lever Internet.

As long as the federal government maintains the restrictions in the Bank Act, selling insurance online appears to be an obvious alternative route for the banks to boost business.

Studies suggest that nearly 70 per cent of Canadians bank online.

That last stat seems high to me.  I thought Canada was more like 55 – 60% of internet users, which makes it closer to 50% of Canadians banking online.  In any event its a large number, and growing.

RBC began selling insurance online in March, and BMO started approximately 2002/3.

tags: insurance, online+banking