“As of July 1, 2016, no further Creditor’s Group Mortgage Insurance certificates will be accepted by Industrial Alliance,” a letter from the insurance provider to brokers, which was obtained by MortgageBrokerNews.ca, says. “Our decision has been made based on a business assessment to move away from supporting Creditor’s Insurance products in the Mortgage Broker industry.”
The letter was sent by Diana Phillips, manager of creditor administration at IA, to broker Len Lane of Dominion Lending Centres
Brokers for Life.
The company will continue to support its existing clients.
“… Existing certificates will remain in force and we will contain to provide insurance coverage and support for these insureds,” the letter says. “… Effective July 1, 2016, any provincial insurance licenses sponsored by Industrial Alliance will also be terminated.”
It remains to be seen whether or not Industrial Alliance will continue to offer its other services through the broker channel.
Calls to IA have not yet been returned.
Brokers will no longer be able to send creditor insurance deals to this one channel partner.