20 June 2017 07:00
Teachers Life, an insurer targeting the plans of a group of Ontario teachers, the availability on the Web to develop. And it will offer its expertise to insurers who want to.
Its CEO Doug Baker describes Teachers Life as a start-up, 78-year-old, who has seen the light of day in 1939. The company relies on direct distribution.
The insurer has the licence to practise in all provinces, including Quebec, since 2012 in the latter case. The insurer was, however, not begun to subscribe to the risk. It could, however, do so as early as 2018, said Mr. Baker.
Teachers Life is predominantly present in Ontario, but also Alberta and British Columbia. It also begins its efforts of marketing in New Brunswick and Nova Scotia.
4 products offered
And in all cases, Teachers Life will leverage the Internet to grow, » said Mr. Baker. «It is believed that this is something that could become popular with the time «, lance-t-il at the joke.
Mr. Baker also notes that these are all the age segments that are joined by the Internet. Not only the young people as one could believe, » he said.
«Consumers expect to be served this way. With a policy of temporary insurance, we can serve them with a Web-based product. «
For the moment, Teachers Life offers four products via its Web site. The first is a police temporary with a duration of 10 to 40 years, which is done without a medical exam, with coverage of up to $ 500,000. Then comes a renewable term coverage of up to one million dollars (M$), but that can be lowered in the course of the road, at any time. It is available with terms of 10, 20 or 25 years.
Teachers Life also offers a T-100 called PermaTerm, since it can cover the entire life of an individual. It offers a coverage of up to $ 500,000. His income never decreases. The last insurance coverage is an insurance coverage of serious diseases, the primary purpose of which is to cover the salary during the remission. The coverage can vary from 25 000 $ to 250 000 $ and covers 16 diseases.
And the issue of the policy is done quickly. Once the client has accepted its protection, it receives in an average time ranging from 13 to 15 minutes, in full force and effect.
Teachers Life does not offer protections for more complex. According to its CEO Doug Baker, it is best to leave this playing field to financial advisors. «There is a need in the marketplace for the commission for more complex products. For our part, we concentrate on the products that we can bring directly to consumers. «
Teachers Life, prioritizes the market for teachers. Its investment on the Web, ensure that the company sells its platforms to companies wishing to acquire them. What are the six organizations that have acquired the rights of use of the various Web platforms of Teachers Life, including two other small life insurers. Firms of financial services were also acquired, including a firm in the area of employee benefits and other in the field of education.
Teachers Life is set to market a robot-adviser (see our article in English), said Mr Baker in the Journal of the insurance. «Basically, we are an insurance company that uses the technology. Sell our platforms is an opportunity for further growth. «
Why other insurers do not follow not the path of the Web ? Mr. Baker identifies some of the reasons. He stresses that his company is a small size. «We have the ability to react quickly. Have a large size, gives several advantages but also some disadvantages. One of them is that they may come into conflict with their distribution networks, depending on the way that large companies are trying to go on the Web. We see, however, some who go there, such as «Manulife Financial» with its Vitality programme. «
Teachers Life is itself in its infancy in terms of sales on the Web. It shoots at 10 %. Within three years, its CEO would like to see this percentage rises to between 25 % and 30 %.
The insurer currently has a premium volume of$ 15 Million, with approximately 33,000 policies in force across Canada. The average age of the customers of Teachers Life is 37 years. They protect themselves from the insurer with blankets, medium-sized, ranging between $ 225,000 and $ 300,000 (the face value).
«Reach new customers is a difficult task, said Mr Baker. Having this link with the community of teachers helps greatly. They attached, therefore, via the social networks, in particular, because we have a connection and affinity with them «, he said.
Teachers Life invests between 7 % and 10 % of its annual budget in technology. He says that it is superior to what is done in the industry, its in-house research demonstrating that its competitors will invest approximately 5 % of their annual budget.