Foresters Financial and Canada Protection Plan have announced an amalgamation that promises to benefit their customers, advisors, and employees.
The union will amplify the strengths of each organization – including Forester’s healthy capitalization as well as Canada Protection Plan’s industry-leading sales and marketing power – which promises to forge “the most innovative customer-, member- and advisor-centric life insurer in Canada,” according to a statement proclaiming the move.
“We’re thrilled to make our longstanding partnership with Canada Protection Plan official,” Foresters Financial President and CEO Jim Boyle said in a statement. “Foresters is strongly committed to its life insurance business in North America and this agreement fits perfectly with our long-term goals.”
In an email to Life and Health Professional, Boyle said that Foresters Financial has been the exclusive life insurance underwriter for Canada Protection Plan since 2008. The two organizations have collaboratively brought out many product innovations over the years, including a groundbreaking suite of non-medical products introduced in 2016.
He said that the agreement represents a continuation of Foresters’ strategy to be the best fraternal life insurer in North America.
“The middle market has traditionally been ignored by the big life insurers who focus on the affluent and ultra-affluent. Similarly, Canadian citizens with less than perfect health, or who live with chronic diseases such as diabetes, have traditionally been ignored,” Boyle told Life and Health Professional. “Both Foresters Financial and Canada Protection Plan are united in their focus to help Canadian citizens in these demographic groups.”
Both organizations plan to maintain their headquarters in Toronto as they share best practices and leverage their mobile and technology-enabled operations. Innovations such as Canada Protection Plan’s end-to-end digital platform for advisors and their clients, Boyle said, will take on increasing importance given the shift to doing business in a contactless environment.
“This is … a significant investment in the future of Canada Protection Plan and is the next step on our shared goals of driving growth in the Canadian market,” said Canada Protection Plan Chief Distribution Officer and Co-President Michael Aziz. “Joining with Foresters is a logical evolution for our company.”
The status of employees at both organizations will not change. For its part, Canada Protection Plan said it will continue to provide advisors with the same strong sales support and innovative service they’ve historically received, including direct contact with Underwriting to fast issue times.
Similarly, the status of existing certificate and policy holders will remain the same. Moving forward, the amalgamation promises to allow for a broader range of products along with improved sales, marketing, and service technology.
“This next step of our longstanding partnership with Foresters holds significant potential product and service synergies to meet the ever-changing needs of our customers,” said Canada Protection Plan Co-President Henry Auyeung.
The transaction is subject to customary regulatory approval, but the two organizations will begin to join forces immediately.