ARAG Group, the European insurance firm, has announced its expansion into Canada.
The group has launched ARAG Services Corporation, a new company that is an approved coverholder at Lloyd’s and has its headquarters in Toronto.
Peter Talacek will head up the new subsidiary of the firm as CEO, bringing with him 20 years’ experience in the Canadian insurance industry.
The company will act as an intermediary, developing legal insurance products and managing underwriting, sales and marketing activities in the Canadian market, operating at first in Ontario, British Columbia and Alberta.
ARAG Services Corporation will primarily focus on group policies for private customers and small to mid-sized companies, sold through insurance brokers as well as unions and associations, the company said in a release, which follows the distribution model for legal protection favoured in the UK market.
Paul-Otto Faßbender – the chairman, CEO and majority shareholder of the ARAG Group – said that Canada offers the company “extraordinarily interesting growth prospects, as legal insurance is largely unknown there,” adding that the international legal insurance business is a major pillar of the group’s business strategy.
ARAG recorded 7.7% growth in this segment alone, and €511.2 million in premium income last year, he said.
Talacek said the firm would be offering an “impressive combination” of products and excellent customer service in the market.
“Employment issues, defective goods, and tax matters can be very complicated and costly. We will support our customers by enabling them to assert their rights – regardless of their financial standing,” he said.
ARAG’s UK boss described the Canadian market as “much younger” for legal protection products.
He said: “It has been great supporting the launch of ARAG in Canada… we’re really looking forward to helping Peter and his team to bring the ARAG vision into a new territory.”
ARAG’s Canadian outpost launch follows the group’s expansion into Denmark last year, and the company now operates in 17 countries in Europe and North America.
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