More insurance products on the chopping block

Assumption Life has decided to drop some of its insurance products, joining a growing list of companies.

Effective July 23, 2012, Assumption will no longer offer the following products: Odyssey Universal Life, Whole Life and Whole Life Junior, T-10 term life insurance and Guaranteed Economic Life.

The decision comes on the heels of similar changes made by some insurance companies, and confirms a de-risking trend is developing concerning long-term product offerings.

Maunlife also announced today it will close deposits on two of its guaranteed income products.

Read: Future bleak for guaranteed income products

According to a document obtained by Advisor.ca, Assumption Life acknowledges the ongoing market volatility and low-interest environment have rendered these products unsuitable for the company’s business model.

“We have come to realize that these products no longer fit our business model and have therefore decided to simply withdraw them from our product line,” says Jacques Pinet, vice-president, business development, Assumption Life. “It’s important that we remain profitable. We openly acknowledge that the uncertainty of the markets and low interest rates also influenced our decision.”

He also says the company wants to focus on their “niche, quick-issue products, rather than modify products that will drive up the cost of premiums for clients and turn away our brokers.”

The company is in the process of modifying a number of its online products to make them more competitive and plans to launch a tool for accepting electronic signatures this fall.