Canada Life signs deal to buy employer health, dental services provider ClaimSecure
WINNIPEG — The Canada Life Assurance Co. has signed a deal to buy ClaimSecure Inc., a company that provides health and dental claim management services to Canadian employers.
Canada Life says the acquisition grows its role as a third-party payer and third-party administrator, which provide a variety of services for employers that offer benefits.
Canada Life executive vice-president Brad Fedorchuk said the company isn’t disclosing financial terms of the transaction but he said it offers potential for growth.
“Canada Life has not had as big a footprint in the third-party payer and third-party administrator space, so this will give us significant growth in that market channel,” Fedorchuk said.
ClaimSecure’s customers are about 7,000 employers with providing benefits for about 1.125 million Canadians, including 400,000 employees plus their dependants.
“There would be little if any duplication of customers within that base,” Fedorchuk said.
“The customer base that ClaimSecure already has (is) going to be a significant amount of growth for Canada Life right out of the gates,” he said.
ClaimSecure will also continue to operate under its own identity, he said.
In addition, he said, there’s a chance for Canada Life to use ClaimSecure’s expertise to expand the type of service it can offer to its own customer base.