Desjardins Group’s independent agent network group in Quebec is now defunct. It ceased operations on Dec. 31. This network sold property and casualty insurance.
Desjardins declined to grant an interview on this topic, but spokesperson Valérie Lamarre explained the Group’s decision to the Insurance Portal by email.
Objectives not reached
The independent agent network was launched in 2012 to accelerate the growth of the Desjardins Group in some sectors of the province where market share was lagging. This network boomed, but how profitable was its growth?
“We are particularly appreciative of the work done by the network over the years,” Lamarre writes, “but we must admit that despite some growth, the efforts of the firms and those that supported them, the network did not let us achieve the business objectives we had set.”
Desjardins Insurance will now focus its efforts on its direct business model in Quebec. This decision only affects the property and casualty insurance exclusive agent network in Quebec. “Our growth strategy outside Quebec centres on the Desjardins Agent Network, resulting from the acquisition of the Canadian operations of State Farm, and we are very satisfied with the results,” Lamarre explains.
Desjardins retains the clientele
The clients of these independent agents belong to the Desjardins Group, so Desjardins Insurance will continue to serve them.
“There is no impact on our clientele,” Lamarre continues. “Clients who purchased a P&C insurance product through the exclusive agent network are already integrated in our operations. This means they are linked to the Desjardins Insurance team.”
The fate of the firms…
What will happen to the firms formed by the exclusive agents? Discussions are underway, the Insurance Portal learned. One of the best-known firms in this network is Lévis-based Tango Assurances, led by Stéphanie Landry. Landry had no comment, but she did mention that discussions with Desjardins on this topic were ongoing.
