14 August, 2018 07:00
Patrick Couture | Photo : Denis Méthot
It is a spring cleaning that The Capital city has made in removing nine products to the sale on 9 July, said its vice-president Patrick Couture.
By this gesture, The Capital has also decided to pull out of two markets : the universal life insurance and long-term care. For the universal life, the insurer is considered not to have the systems required to maintain its bid. The insurer, however, maintains its police term to 100 (T100), which is similar to a permanent.
For long-term care, it is the low sales were because, despite the quality of the product. “It’s been 20 years that we said that we have an extraordinary product. It’s been 20 years that we do not sell “, said Mr smith in an interview in the Journal of the insurance.
The removal of the main reinsurer of the market of long-term care, Munich Re, has also influenced the decision of The Capital to withdraw. “We do not have the financial resources to support this product without reinsurance,” says Mr. Couture.
It is estimated that the withdrawal of these nine products represent approximately 20 % of the products that The Capital had on its shelves. According to Mr. Couture, it was all of the products whose sales were not significant. The issue of profitability is also coming into play, so that actuaries must dedicate time to maintain them.
Bridge the gap and aim for the target market
The Capital account now concentrate on what Mr. Couture-called quick wins (rapid gains). Announcements have also been made in this direction on 9 July. Adjustments have been made to products, in particular those of series Mainstay.
The Capital account also fill her delay that she believes to have on some of its competitors, including HuGo, ofHumania, in terms of digital products. “We want to be more agile in the next few years. It is also aimed at profitability, ” said Mr. Couture.
By this withdrawal, The Capital city also wants to refocus on its target market. Mr smith says it is aware that for many, The Capital is identified in the public service. It is, however, the market family as a whole as referred to the insurer.
“We are able to provide the couple of engineers who derives an income of $ 300,000 per year. The couple of surgeons who earns three million dollars a year, one is aware that it will not come to us, ” said Mr. Couture.
The products removed by The Capital on July 9, 2018
Permanent life insurance
- Universal Life-Fructivie
- Payments limited to 10-15 years of the series Advantage
- The option of protection in cases of serious illness (available only with the protection 100 % pure)
- Protection Time
Term life insurance
- Source The supplementary Source is still available for sale)
- Protection 20.10
- Component of income replacement for a disability pension
- Promotion customer Capital