Zurich launches retail plan

Peopleplus Insurance Company, a member of Zurich Financial Services Group, recently announced a partnership with Hudson’s Bay Company to launch a private label car and home insurance program. The group scheme, available exclusively to Bay and Zeller’s credit card holders, marks the latest foray by an insurer in marketing insurance to retail-chain customers. Peopleplus was established in 1996 to underwrite group and affinity programs through independent brokers.

The deal was set up by broker James Thomson of Bayview International Insurance Brokers and Bob Switzer the general manager of credit and financial services at Hudson’s Bay. Switzer says the partnership will give Bay and Zeller’s cardholders access to convenience insurance within the lower premium prices. “We considered a few other insurers when formulating the deal, but decided on Zurich because of their commitment to customer service, both in claims and non-claims inquiry situations.”

Switzer says the Bay and Zeller’s have roughly six million cardholders. “While we don’t have any real numbers to offer at this stage, early response from cardholders has been enthusiastic.” The deal between the insurer and retailer was motivated by the increasing trend of consumers toward convenience purchasing, as well as the converging financial environment where credit providers have begun offering a wider array of member services. “We will benefit from Zurich’s underwriting expertise while they will benefit from the sizeable amount of customers that flow through our stores daily.”

Zurich Canada says the move in no way signifies a departure from its broker-distribution model. According to Lynn Whitham, vice president of communications at Zurich, Thomson will still be the broker of record for all Bay insureds. The low premium costs can be attributed to the marketing and distribution savings realized through the captive customer base, she says.

Zurich and Hudson’s Bay’s entry into the group retail market comes on the heels of other prominent Canadian retailers who have partnered with insurers to market group schemes. Unlike others, such as Canadian Tire and CIBC Insurance’s partnership, the companies are quick to point out the Zurich/Bay program was created through the broker distribution channel. “[The process] has been a great team effort, from our partners at HBC to the referring broker,” comments Daphne Fitzgerald, president of Peopleplus.