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Profits and sales of insurance up to Humania

by

Alain Thériault

13 April 2018 13:30

Stéphane Rochon | Photo : Réjean Meloche

In 2017, Humania Assurance has made to grow its net profit by 7.2% compared to 2016, to bring it to 4.96 million us dollars (M$). To 143,7 Million, its insurance sales in terms of gross written premiums are up 7.5 % in 2017, compared to 2016, driven both by the group insurance than individual insurance.

The insurer has also posted a solvency ratio of 219 %, a rate of return on equity of 6.7 % and an increase in assets of 11.3 %. «We’ve seen a series of remarkable achievements, given the financial and human resources of the organization. It is impressive what we can do with our little mutual of Saint-Hyacinthe «, has launched the CEO of Humania Assurance, Stéphane Rochon, opening its annual general meeting on April 12, Beloeil. The Journal of insurance attended.

To explain the good results of 2017, the CEO of Humania has stressed the emphasis on the technological shift of the insurer. In 2017, 58 % of new cases of Humania have been achieved through its technological platforms, he said.

Good growth outside Quebec

He also commended the efforts of development of Humania outside of Quebec. The sales team, outside Quebec, was also present at the meeting, accompanied by its national director of sales Michael J. Suska. «The bulk of our growth comes from outside of Quebec. All products combined, sales outside Quebec accounted for 35 % of our new sales, » revealed Mr. Rochon.

Chief financial officer at Humania, Marc Peliel , for its part, stressed that all segments had contributed to sales growth in 2017, compared to 2016. It was noted that the technology platforms of Humania, in particular that of the product, HuGO, have helped to double the sales of individual life insurance. «This is a market where we were very little present,» recalled Mr. Peliel. «In group insurance long-term disability, life and critical illness sales have increased by 55 % «, he adds.

The travel insurance sales have experienced a more modest increase. «The loss ratio is a little higher than expected, particularly in terms of the severity of the claims processed,» said Stephane Rochon. He stressed that the strategy of online sale of travel insurance was very promising.

Intense competition in collective

Mr. Rochon indicated that the portfolio under management in group insurance grew by 10 % between 2017 and 2016, whereas it had grown by 50 % between 2016 and 2015. He explained that the sales were extremely high, but that the retention rate of the business has been below expectations in 2017.

«This is a market that is extremely aggressive where players make the underpricing, said the CEO of Humania. This is not the road that we take. We decided to focus our efforts on groups that give us a perspective of profitability. «

The practice that he denounces is for an insurer to offer a group insurance program at an entry price lower than it should be according to the experience of a group of employees, to cut the grass under the feet of competitors.

Artificial intelligence reduces the price

The CEO of Humania has highlighted the accession to mass of advisors to the platform for individual insurance HuGO, who has used artificial intelligence to reduce the time of subscription of several days to 45 minutes. 45% of its advisors who have used it more than once, six months ago, this proportion increased to 63 % at the time of the meeting, he revealed. «A few days ago, this rate was 60 % (figure quoted in the annual report),» added Mr. Rochon.

More than 1,200 advisors across Canada have used the platform. The insurer has been able to conclude more than 5,400 transactions. «The product HuGo has enabled us to position ourselves in a market that we knew little : the term life insurance,» said Mr. Rochon.

According to him, the cost of emission much lower fonts allows Humania reduce its unit cost, and fight with the giants of the insurance. This reduction will allow, in his words, to rank in the top 5 of the best price offered to the customer segment of 45 years and less, for an amount of term insurance of$ 1 Million or less.

A product for the 55-75 years

In 2018, the board of directors has resolved to accelerate the digital transformation of Humania Assurance, said its CEO, who is currently working on the development of a health insurance product individual which will be for the population between the ages of 55 and 75 years of age. It will be called 5575.ca, revealed Stéphane Rochon.

«We are digitising old products to bring the flavor of the day, and open new markets to our advisors. We strongly believe in the market babyboumeurs, which represents 28 % of the canadian population. This is the group whose use of the Web-growing quickly, » says-t it.

Mr. Rochon also noted that the first cohort of babyboumeurs happens to the pension is also the first that will have been covered during its active life through group insurance, in contrast to the previous generation. «These people will want to have an extension of their collective benefits «, he adds. The delivery will take place in four successive projects, of which the dates are not determined.

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