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Lussier Dale Parizeau acquires Karma Insurance

by

Alain Thériault

,

Hubert Roy

5 August 2019 13:00

Isabelle Bouchard, Martin Bailey, André Lussier | Photo : Réjean Meloche

Lussier Dale Parizeau acquired all of the shares of Karma Insurance. The company was 50% owned by the general agent Aurrea Signature and by the founders Isabelle Bouchard and Martin Bailey, who each owned 25 % of the shares. Isabelle Bouchard and Martin Bailey were the only two employees of Karma Insurance at the time of the transaction.

Launched jointly by its founders and Aurrea in September 2017, Karma Insurance allows Canadians to compare prices from multiple insurers and buy their life insurance online with the support of certified consultants on the site karmaassurance.ca.

“While the platform could compare products from a dozen suppliers, it can now do so with a quatorzaine,” revealed Martin Bailey, the Journal of insurance.

Acquire talent

CEO of Lussier Dale Parizeau, André Lussier said to have acquired Karma Insurance for its two creators : Martin and Isabelle. He said see Karma as a tool to generate leads (lead generator) in individual life insurance among its clients in the property and casualty insurance for both individuals and businesses, including group insurance.

“Our customers will be able to make a head that can cost a premium individual life insurance by simply browsing the website of Karma “, says Mr Lussier.

The CEO of Lussier Dale Parizeau stresses that such an approach is much less expensive than buying names for $ 35 per unit on Google. “If by Karma, we are able to develop a good rate of penetration, we have already come a long way “, he adds.

For his part, Martin Bailey has pointed out that Isabelle Bouchard and himself will retain a role as strategic advisors and technology in Lussier Dale Parizeau.

“With this transaction, we leave the role of manager for us to focus on our strengths in strategic vision and technology innovation. We will have the role of expanding the supply of services of Lussier Dale Parizeau to individual life insurance, in connection with the group insurance associations, for example “, he explains.

The transaction is accompanied by synergies that will help advance the platform of Karma Insurance. “The strategy of cross-selling is the one that presents the most synergies : the nerve of war is the marketing,” says Mr. Bailey. The transition to Lussier Dale Parizeau will allow Karma to concentrate on this point, he adds.

Better to Lussier Dale Parizeau

For his part, the CEO of Aurrea Signature, Christian Laroche, reported in the Journal of insurance have had carte blanche to its sole shareholder, Humania Insurance, to steer the negotiations. “The board of directors of Aurrea is independent of Humania and makes its own decisions. In the present case, we have initiated discussions a few months ago, only to realize that Karma lent itself better to the model of cross-selling Lussier Dale Parizeau as that of our company, ” he says.

Mr. Laroche said that Karma Insurance was going very well, but that Aurrea wanted to focus her energy on the generation of names of potential customers from Pro-Spect, a 100% subsidiary under the control of Aurrea.

“If I had a clients without a huge, the model of Karma Insurance would have been ideal, but this is not our goal “, slice the CEO of Aurrea. The customer, an orphan represents the existing customers of a firm for which no advisor is assigned.

The agent-general now wants to focus on organic growth, assisted by Pro-Spect. “Aurrea develops with counselors, we want to help in the sales at a distance. I may be more of interest to develop Pro-Spect. Karma Insurance has a platform that has not yet reached its limits. It represents a lot more potential for Lussier Dale Parizeau “, ahead of Laroche.

The platform of Karma Insurance had not generated a large number of folders under Aurrea, reveals Mr. Laroche. A situation admitted by Mr. Bailey, adding that Karma remains a beautiful platform.

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