The recent acquisition of JLT’s Quebec network by GPL Assurance offers a solution for insurers how to better tap into a market that has been traditionally difficult to crack.
“The Quebec market has always been a struggle for international companies,” says Louis-Thomas Labbé, president and CEO of GPL Assurance, obviously because of the language barrier, the civil code – the legal framework scares some organizations.
GPL, which was founded by the Proulx family some 46 years ago, announced last week that it had acquired the Quebec business of Jardine Lloyd Thompson Canada, allowing GPL to become JLT’s exclusive broker in Quebec and a Member of The JLT International Network.
For GPL is offers an opportunity to tap into JLT’s international client base, while growing JLT’s Quebec book – which like other insurers not native to Quebec, struggles with a market that can be inward-looking.
“We have a different culture and mentality in Quebec,” Labbé told Insurance Business. “To be successful in Quebec, you have to be well-entrenched, with the local community and some organizations – not only in our business, but in other types of industries too. A lot of companies trying coming into Quebec fail to recognize that. They try to build on an incremental basis, which is extremely difficult.”
The negotiations between JLT and GPL had been going on for about a year-and-a-half, says Labbé, (continued.)
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“With the deal, JLT now has critical mass in Quebec to succeed,” he says.
JLT is one of the world's largest providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT owns offices in 39 territories with some 9,000 employees, supported by the JLT International Network.
David Richards, CEO of JLT Canada, says that the deal makes sense for both his company and the clients.
“GPL has been operating for more than four decades and they truly know and understand the unique Quebec market place,” says Richards. “Our clients will be well served by a firm with a strong market presence in Quebec and they will still have full access to The JLT International Network.”
The potential for growth should be there, as GPL has seen near-exponential growth within the Quebec market, says Labbé.
“We’ve had consistent double-digit growth, and we’ve almost tripled our size in seven years,” he says. “I expect us to be the leader in the next five years in Quebec.”
