Has the COVID-19 pandemic taken a toll on the number of group insurance programs in Canada?
Not yet, Great-West Lifeco says.
A presentation used in a conference call for financial analysts following the release of its fourth quarter 2020 results reports “very limited plan terminations due to business failures or bankruptcies” in Canada due to the pandemic.
The Insurance Portal contacted the holding company to learn more about its vision. Spokesperson Diane Grégoire said Great-West Lifeco recognizes that employers continue to want to offer their employees a wide range of benefits.
“Any pandemic-related impacts to Canada Life’s group business have been modest to-date, and we’re confident in our business’ resiliency and ability to manage future challenges,” Grégoire said.
Great-West acknowledges that many SMEs are struggling to stay afloat under public health restrictions as the pandemic continues. “In response, we have and will continue to look for opportunities to provide financial and mental health supports to small business owners, whether or not they are existing customers. And as always, we’ll continue to monitor trends and remain closely connected with our customers,” Grégoire continues.
Other effects of the pandemic
Great-West Lifeco’s presentation also lists other impacts of the pandemic on its business in Canada in Q4 2020. The holding company reports that its individual sales are close to pre-pandemic historical levels. However, sales by industry groups are lower.
The company has also revised its pricing in 2020, on both the individual and group sides for the Canadian market, which have had “a positive impact on profitability.”
Health and dental claims remain slightly below historical levels. Disability experience improved in the fourth quarter of 2020, Great-West Lifeco adds, “with both new cases and terminations more favourable than expected.”
Outlook for 2021
The company also shared some outlooks on its business in Canada for the coming months. The Great-West Lifeco executives expect the volume of individual insurance applications to return to pre-COVID levels, although limited capacity in paramedical services may hinder sales. All the same, the holding company's business activity is likely to return to historical levels in the medium term, the executives say.
Health and dental claims are likely to remain below historical levels in short-term due to lock-downs, but they will probably increase in the medium-term as the economy re-opens, the presentation says, adding that disability experience continues to be closely watched for mental health claims.
