U.S. Property Insurer Enters Canada With Coverage Aimed at Wealthy Homeowners
U.S.-based property and casualty insurer PURE Insurance is expanding into Canada, offering coverage to affluent homeowners with properties worth more than $2-million.
PURE Insurance announced its first move outside the United States with the launch of a Toronto office that will begin offering home insurance policies to Ontario residents this month.
PURE’s entrance into Canada gives insurance brokers and affluent homeowners another option, which could have particular appeal for those with second homes in the U.S.
Canadian members who own properties or assets in the U.S. will benefit from an established presence in the U.S. market. What’s really important is that we can offer them a seamless insurance experience across the borders.– Chris Sevdalis, Head of Canada Branch
“It’s the same claims-reporting process regardless of where risk is located,” continued Sevdalis.
Unlike more traditional or publicly traded insurers, PURE is a “reciprocal” insurance company—meaning it is owned by its policyholders, also known as members. As an owner, members have a voice in the governance of the company and are eligible to receive annual contributions to a Subscriber Savings Account.
PURE Insurance‘s chief executive Martin Leitch said this type of member-owned model allows him to manage prices more easily as he doesn’t have to “balance the interest of shareholders” and can pay back members if there is a year where premiums were set higher than needed to cover liabilities.
If underwriting profits are made, we return those profits to the membership through their Subscriber Savings Accounts.– Martin Leitch, Chief Executive Officer
“So you have this alignment that you want to charge the fair price but you don’t have to find that breaking point. So it’s just hugely powerful,” Leitch added.
