Manulife Financial has entered into a travel insurance agreement with RBC Insurance.
Under the agreement, Manulife will reinsure the travel coverage sold by RBC through travel agencies. Also, the sales and distribution support of the bank’s travel agency insurance business will be transferred to Manulife.
As part of the deal, travel agencies will be offered the chance to renew their agency agreements with Manulife upon the expiration of their current contracts with RBC. Manulife will also make employment offers to the majority of RBC’s insurance division employees who provide sales support directly to travel agencies.
Sine the arrangements aren’t subject to regulatory approval, they’re expected to commence during the third quarter of 2013. Financial terms of the business arrangements haven’t been disclosed.
“This transaction [allows us] to reinforce our position in the Canadian travel insurance business,” says Brian Gooding, senior vice president, affinity markets, Manulife Financial. “The travel agency channel is an important part of our strategic growth plan.”
In 2009, Manulife assumed the business of PS Travel Insurance Brokers, and has since been looking for opportunities to expand its travel insurance offerings.