According to Statistics Canada, a record 13.7 per cent of the population of Canada has reached retirement age. With people living longer and the number of baby boomers also preparing to retire, that number is expected to double in the next 25 years. This dramatic shift in demographics is driving a growing interest in low risk products, especially those that offer guarantees. One such product is segregated funds.

Segregated funds are investment funds that pool together the assets of investors with similar objectives who want to diversify their investments, reduce their risk and lower their investment costs. Because segregated funds are sold by life insurance companies, they

can offer additional benefits, such as guarantees at death or maturity.

Empire Life is currently one of 24 life insurance companies using the FundSERV network to distribute products to the hundreds of segregated fund dealers and mutual fund dealers licenced to sell insurance, who are also on the network. "We joined the network because we wanted to remain competitive in the investment fund industry. And now our products are distributed by other life insurance firms as well as by mutual fund companies," says Brenda Moore, manager of investment product marketing at Empire Life.

Moore is no stranger to the benefits of FundSERV services. Before joining Empire Life, she'd had direct and indirect interaction with FundSERV. When the system infrastructure wasn't in place at the insurance company where she was working, they employed a third-party service provider, which provided access to the features and functionality of FundSERV.

"That partnership highlighted the potential efficiencies of scale that the FundSERV network could offer," says Moore. "And the experience eventually translated into the organization updating its investment system to facilitate FundSERV transactions directly between the manufacturer, the dealers and the intermediaries."

On the administration side, "it makes life a lot easier for everyone," says Moore, "At head office, we now have much less paper work being submitted for routine transactions, such as purchases, withdrawals and switches, and non-financial updates. More importantly, though, the distributors have access to far more products with the assurance of accurate information and the ability to place, reconcile and net settle orders electronically."

To take it to the next level, Empire life is now targeting advisors who have never sold segregated funds and those who are still completely paper-based. "We've come to realize that many of them are unaware of the many additional benefits they can offer their clients with seg funds, such as lower MERs, death and maturity benefit guarantees, and potential creditor protection," says Moore.

"Those who are still running paper-based businesses just don't realize how much faster and more efficient it is for them to operate electronically. They aren't aware of the high level of security and data integrity the network can provide. There is a learning curve, but once they come on board, there's just no turning back."

Established in 1923, Empire Life is a subsidiary of E-L Financial Corporation Limited. Based in Kingston, Ontario, the company has service and individual and group sales and marketing centres across Canada. In June 2007, Empire Life ranked ninth in the National Post Business FP500 Top 20 Life Insurers based on revenue.