Fintech platform Pineapple Financial has rolled out Pineapple Insurance. The new business line is designed to position Pineapple in Canada’s multi-billion-dollar insurance market while enhancing its suite of financial services.
The new offering is designed to integrate insurance products into mortgage transactions, aligning with the fact that Canada issues over 700,000 new mortgages each year, with 47% expected to renew over the next three years. The integration creates an opportunity for Pineapple to cross-sell insurance, driving higher revenue with each mortgage deal.
Pineapple Insurance’s launch is supported by strategic capital from Pineapple’s initial public offering last November. The IPO allowed Pineapple to expand its product portfolio by introducing life, creditor, and disability insurance – an important step in tapping into Canada’s insurance market, which Pineapple highlighted generated $122 billion in premiums in 2022.
“We’ve been building towards this launch for over a year, and we’re beyond excited to finally share it with our investors and clients,” said Pineapple president and chief operating officer Kendall Marin.
“We believe Pineapple Insurance is a game-changer. By offering in-house life, creditor, and disability insurance, we’re not only meeting a regulatory requirement but enhancing the value we provide to clients – while adding a potential highly lucrative revenue stream for our business.”
With client retention rates already above 70% in its mortgage portfolio, Pineapple anticipates an increase as clients engage with multiple products.
“We promised our investors that the proceeds from our IPO would be deployed thoughtfully to accelerate growth and enhance shareholder value,” added Pineapple chief executive Shubha Dasgupta. “With Pineapple Insurance, we believe we’ve done exactly that.
“This division has been in development for a long time, and its launch signifies the beginning of a new era of profitability and scalability for our company.”
What do you think about this story? Share your thoughts in the comments below.
