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Munich Re withdrew from the market long-term care because of anaemic sales

by

Alain Thériault

4 January 2018 13:30

Munich Re has confirmed to the Newspaper of the insurance will be withdrawn from the market of the insurance of long-term care in 2017. The reinsurance company said they took the decision because of weak sales that it produces, despite more than 20 years of the promotion.

This withdrawal discrete, which occurred in the beginning of the year 2017 has resulted in the end of the year the defection of insurers such as Manulife and Desjardins financial Security (DFS) of the market less lucrative. Others were already passed to the action in the previous years. DSF plans to withdraw from this niche market by June 2018.

«The long-term care insurance accounted for less than one per cent of insurance sales people in Canada. The sales were not really at the rendez-vous, and their growth remained low, as the interest of the sales force «, revealed in an interview to the Journal of insurance Cédric Thibault, senior director, business development, reinsurance individual of Munich Re.

More research and development

It is not a sign of rejection or of an official withdrawal of this market, continued the principal director, even if he does not return in the near future.

The reinsurer has rather decided to concentrate its efforts in research and development. It will redirect its efforts and resources to predictive modeling, risk selection, automated, big-data «and other initiatives that are likely to lead the growth,» explained Mr. Thibault.

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