As price hikes and product cuts proliferate, advisors are seeking new avenues. For one, RBC Insurance’s exit from the universal life market forced one of its large distributors to look elsewhere. “RBC was our main supplier, but when it dropped its product, we moved to Industrial Alliance,” says Claude Ménard, senior vice-president, marketing for all of Canada at PPI Advisory.
He says that Industrial Alliance is the only company that still offers a product adapted to the commercial loan format of its 10-8 business solution.
Insurers are shying away from products that force them to lock-in a lot of capital, Mr. Ménard observes. Level cost universal life is one example.
Insurance companies are, however, receptive to managing general agents with good ideas. PPI intends to launch two universal life insurance products in September. These products will be backed by undisclosed insurers.
“Generally, we design, test and price the product. The insurer that agrees to back it offers us, for example, 24 months’ exclusivity. For our two future products, we have never seen this many companies interested,” Mr. Ménard says.
