Scotiabank aims to deepen its presence in the Canadian life insurance market. Its first step was to create a new division: ScotiaLife Financial.
Mark Cummings, senior vice president and head, Insurance Canada, at Scotiabank, says he sees enormous potential in life insurance. He told The Insurance Journal that he wants his company to become a niche player in the Canadian market.
ScotiaLife Financial will apply a twofold promotional strategy: via direct marketing and the Internet. "We will offer our clients simple, affordable and practical products. We are not selling complex products such as $20 million policies," Mr. Cummings points out.
Its first life insurance product, ScotiaLife Term 1, is available to individuals, but is priced on a group basis.
Coverage ranges from $50,000 to $1 million. ScotiaLife Financial also offers credit, travel and health insurance. The company plans to launch four to six products within the next two years, Mr. Cummings says.
The rookie insurer has set development targets, but did not disclose them. "We will be aggressive and we want to increase our presence in the life insurance market significantly," he continues.
The newcomer also plans to harness the Internet. ScotiaLife Financial will introduce an online quote tool that will provide consumers with quotes and premiums.
Although the insurer is concentrating on direct distribution for now, it is not ruling out working with financial advisors or managing general agents in the future. This option is being weighed, but no decisions are expected in the short term.
Mr. Cummings says that Scotiabank has made insurance a strategic priority. A foray into property and casualty insurance (P&C) is not out of the question. "We'll decide one way or another by the end of the year. The P&C market is heavily regulated and very competitive, but we're looking at the possibility of leaping in."
