31 July 2018 07:00
After two years to present the combined ratios beyond the bar 100 %, Serge Lavoie, CEO of Echelon, says he is confident that his company will return to profitability by 2018.
He points out that the insurer has transformed key areas of its organisation in the course of 2017. The first change which he makes mention in his letter to shareholders published in the annual report of the company pertaining to actuarial science.
“Under our new management team, we have increased and strengthened our team actuarial. We do not outsource this most critical function. We have the capacity and expertise to implement new actuarial practice, including predictive modeling, which will help us to ensure a consistent profitability of our products, ” said Mr. Lavoie.
On the technology front, Mr. Lavoie says that Echelon has accelerated its migration to its new portal, named Passport. He added that 14 of the 17 products commercialized by Echelon are treated. This portal manages all facets of the life of an insurance contract, from pricing to underwriting, through to billing and claims, in addition to improving the connectivity with brokers.
A volume in growth
Echelon also reported a growth in sales of 31 %. It went from $ 178 million (M$) in 2016 to$ 243 Million in 2018.
Mr. Lavoie said that he was particularly pleased to have balanced the ratio of the company’s business. In 2016, 71 % of written premiums-by-Step were in personal insurance. This proportion is now 66 %.
“A portfolio that is better balanced, will bring greater stability to our results. It will also help to better support the consistency of our profitability, in addition to helping dealers to present a better distribution of their risks and thus be less dependent to the regulation of rates. ”