70 percent of TD’s insurance clients bank with the company | Canadian Insurance

70 percent of TD’s insurance clients bank with the company

Brokers should look for cross-selling opportunities too, Aviva president suggested

Eighty percent of TD’s banking customers expect the company to offer insurance, executive vice-president Kenneth Lalonde said at the Canadian Retail Investors Day last month. And 70 percent of its insurance clients also bank with the company, creating a lot of cross-sell opportunities.

“And what we also know, is that customers of insurance and banking are more tenured and more profitable to TD,” Lalonde said.

The benefits of cross-selling haven’t escaped the broker side of the business either. Aviva is “certainly seeing a lot of interest for those brokers who can embrace the larger product offering than simply home and auto, and consider life and health and wealth management products,” president Sharon Ludlow told Top Broker in the summer.

Lalonde added affinity customers—whom the bank attracts through their alumni, employer or professional networks and whom make up 75 percent of TD’s insurance clients—“would provide a customer profile that is attractive to TD overall.”

Responding to an investor’s question about Ontario auto loss ratios being above industry levels, Lalonde pointed out insurers decreased rates by an average six percent, while “we actually took rates up five percent.”

Coming up, TD is looking to invest in its tech platforms, sell more simple term life insurance, launch a telematics program in 2016 and look into commercial insurance for SMEs.