Effective July 23, Assumption Life will no longer offer its products Odyssey Universal Life, Whole Life and Whole Life Junior, T-10 term life insurance and Guaranteed Economic Life. This decision follows a thorough analysis and review of the company’s market strategy.
In 2003, Assumption Life was a pioneer insurance company by offering simplified insurance products through an online application system. Any new products developed since then have been integrated into this electronic platform. The four products in question were not among them.
“We have come to realize that these products no longer fit our business model and have therefore decided to simply withdraw them from our product line,” says Jacques Pinet, Vice-President, Business Development. “It’s important that we remain profitable and be able to offer products that meet the needs of our clients and brokers. We openly acknowledge that the uncertainty of the markets and low interest rates also influenced our decision. We prefer to invest and channel our resources into our niche, quick-issue products, rather than modify products that will drive up the cost of premiums for clients and turn away our brokers. Our sales force appreciates our quick and personal service; therefore, we want to maintain our competitive edge by focusing on our simplified products.”
In addition, the Assumption Life team is in the process of modifying a number of its online products to make them more competitive, and this fall it will launch a tool for accepting electronic signatures.
Assumption Life will continue to offer its term insurance products FlexTerm and FlexOptions (15-, 20- and 25-year terms), its participating whole life insurance product (ParPlus), the quick-issue whole life Golden Protection products and Total Protection, and its life insurance products for children, Youth Plus and ParPlus Junior.
Assumption Life has always had a different sales pattern unlike the majority of the industry. In 2011, universal life insurance accounted for just 7% of sales in placed premiums, whole life 2%, T-10 2% and guaranteed economic life about 1%. This streamlining therefore does not compromise the company’s insurance sales, which to date stand at 168% of the annual target.
Assumption Life is in excellent financial health, with a solvency ratio of 244% as of March 31, 2012, and an A- (Excellent) rating from A.M. Best for the 13th consecutive year.
The final date on which Odyssey Universal Life, Whole Life and Whole Life Junior, T-10 term life insurance and Guaranteed Economic Life will be sold is Monday, July 23, 2012. Applications must be signed by clients no later than July 23, 2012, and received at head office by July 25, 2012. No applications will be accepted after that date. You may then destroy the inventory of paper applications remaining on your shelves.
You will receive further communications in the coming days answering any questions about converting T-10 and the illustration system for example.
If you have any questions, comments or concerns, please contact your Assumption Life marketing representative.