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Capital withdraws from the market of the insurance of replacement

by

Hubert Roy

15 August 2017 07:00

Photo : Freepik

The purchase of the PPP Group by iA financial Group has resulted in the withdrawal of The Capital of the general insurance market-insurance replacement.

It is in autumn that the PPP Group has passed into the hands of the ai. DPI was the administrator of the insurance program of replacement of The Capital. PPP was in particular the relations with the car dealers for the account of The Capital.

This change has forced The Capital to engage in a reflection on its presence in the insurance market of replacement, tells François Dumas, vice-president, actuarial, insurance, and business intelligence. «To continue, we would have to develop our own policy management system. It was a great investment, especially considering that the average duration in the insurance replacement is five years and can go up to eight years. We have chosen to invest in other projects «, he explained in an interview in the Journal of the insurance.

All contracts will be respected

The Capital will honour all the contracts it has sold over PPP, » said Mr. Dumas. «We are in run mode-off. We had to build a system to manage the process. It has asked an investment to put this system in place. However, this is not to compare with what he would have had to invest to stay in the market for replacement insurance. Our recent contracts have been sold in march «, said Mr. Dumas.

The Capital was in the market for replacement insurance since 2010, that is, from the time it has been considered an insurance product. The insurer was also present since 2006 in the market of the replacement guarantee, the predecessor of the replacement insurance. Mr. Dumas believes that the market share of The Capital in the insurance market of replacement in Quebec was about 20 %.

The Capital will also maintain its position with the automotive dealer. This market is however the preserve of its affiliates, that establish agreements with the car dealers.

«The Capital not interfering itself as such. It keeps a lot of dealings with dealers, in particular at the level of the body, » says Mr. Dumas.

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