Echelon motors into motorcycle insurance

Echelon General Insurance Company, a wholly-owned subsidiary of EGI Financial Holdings Inc. (TSX: EFH), has entered the Ontario motorcycle insurance market with a $5 million brokerage agreement with Riders Plus Insurance.
Riders Plus, the Ontario-based motorcycle insurance brokerage, will place $5 million of motorcycle insurance premiums with Echelon in the first 12 months following the scheduled January 15, 2006 commencement of sales under the agreement.
Riders Plus brokerage commission terms under the agreement will be paid with an expense allowance on new policies, as compensation for their expanded internal underwriting processes.
“Our agreement with Riders Plus marks Echelon’s first major move in Ontario into a broader range of vehicle types, while staying within our specialty auto niche,” Douglas McIntyre, chief executive officer of Echelon, says.
Mike Babineau, president of Riders Plus, says that Echelon’s understanding and responsiveness to Riders requirements will allow them to provide appropriate coverage and premiums to the growing market of mature motorcyclists.
The Financial Services Commission of Ontario (FSCO) approved Echelon’s Ontario motorcycle insurance rules and rates on January 6, 2006.