Aviva Canada enters critical illness insurance market

By Alain Thériault | May 10 2018 11:30AM

Photo: Freepik

Aviva Canada has launched a group critical illness insurance product that will be offered to businesses. The property and casualty (P&C) insurance company is also planning to launch an individual critical illness insurance product.

Called Aviva Group Critical Illness Insurance, this is the second product in Aviva’s Accident and Health portfolio. It covers up to 24 critical illness conditions. Aviva Commercial Accident was launched last fall.

The new group critical illness product is for employers, associations and unions. It provides coverage for employees, members and their spouses.

Survival period of only 14 days

Plan members can have basic coverage and complementary coverage. The program provides for a lump sum benefit after a survival period of only 14 days. The product provides protection in case of a serious illness, such as a heart attack, cancer, or stroke.

With this launch, Aviva is continuing its strategy of introducing accident and health products in the Canadian market. The company plans to introduce new related products in Canada, leveraging its global presence and expertise. "Globally, Aviva is very well known and extremely well respected for its Accident and Health portfolio," said Terri Mitchell, Executive Director of Accident and Health, Aviva Canada. “Our plan is to leverage this experience to deliver a comparable breadth of product offering here in Canada, diversifying our business and offering a holistic suite of products for our brokers."

Aviva distributes its group critical illness insurance program through the property and casualty insurance brokerages with a group insurance subsidiary, as well as through independent group insurance firms, Mitchell told, a sister publication of The Insurance and Investment Journal in an interview last week.

Aviva Canada also revealed that it has plans to introduce Accident and Health insurance for personal lines, including an individual critical illness insurance product. The risk will be fully underwritten by Aviva Canada, Mitchell said.

The launch of individual life insurance products may seem unusual on the part of a P&C insurance company. "Aviva has a license to offer accident and sickness insurance in all jurisdictions," Mitchell noted.

Aviva does not rule out the idea of distributing individual product outside its usual network. "The product we are developing is a natural fit for our personal lines customers, and we are targeting our existing distribution channel," said Mitchell. We also hope to attract new brokerage partners, because of our initiative."

One-stop shop ... and digital

Aviva Canada says its “goal is to be a one-stop for the personal and professional insurance needs of Canadians.” Aviva, the second largest P&C brokerage insurer in Canada, also says it is committed to making these products accessible by digital means. It offers brokers an end-to-end digital solution, "making it easy to leverage and engage with this new product line as it develops."

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