Desjardins Financial Security Life Assurance Company has entered into a 10-year strategic partnership with CanAssistance that includes the sale of Assistel, its in-house assistance services subsidiary, in what both organizations describe as one of the most significant agreements of their respective histories.
Under the agreement, CanAssistance will acquire Assistel, which has managed assistance services within the Desjardins ecosystem since it was founded as Sigma Assistel in 1997. Desjardins has decided to outsource its assistance services rather than retain them in-house, making CanAssistance its exclusive provider for the next decade.
The 10-year partnership is valued at several million dollars annually, and the transaction is expected to increase CanAssistance's travel assistance volume by 20 to 25%.
"Our ambition is clear: to build a leading Canadian assistance platform capable of supporting major partners such as Desjardins and their clients at moments that are often critical," said Sylvain Charbonneau (pictured), president and CEO of Canassurance Hospital Service Association.
The combined capabilities of CanAssistance and Assistel will span travel assistance, roadside assistance, legal and estate assistance, concierge services, and certain services related to health, home and claims.
CanAssistance, which had previously focused primarily on travel assistance, gains significant diversification through Assistel's roadside, legal and health assistance capabilities, with Desjardins becoming its largest client. Existing clients already include Beneva, iA Financial Group and National Bank.
Meanwhile, Desjardins Group reported surplus earnings before member dividends of $3.81 billion for fiscal 2025, with total assets of $510.2 billion and group insurance premiums of $4.5 billion. With more than 7.5 million members and clients, the assistance volumes transferring to CanAssistance are substantial.
The decision to outsource reflects a broader trend in Canadian insurance toward focusing on core underwriting and distribution while delegating specialist service delivery to dedicated platforms. According to KPMG's 2026 insurance trends outlook, Canadian insurers are accelerating investment in third-party service providers and technology partners as AI-powered operating models intensify demand for external expertise.
Charbonneau cited rising foreign medical costs as a key driver, noting that costs abroad are rising far faster than inflation.
A hospital visit in the United States can cost over $10,000 per day, while emergency evacuation can exceed $50,000, with both continuing to rise in 2026. The Canadian travel insurance market generated US$784.3 million in 2024 and is projected to reach US$2.17 billion by 2030 at a CAGR of 18.5%.
Demand is also being shaped by shifting travel patterns. A March 2026 CAA survey found that more than half of Canadians say geopolitical and economic factors, including global instability and rising travel costs, are now influencing where they choose to travel.
That shift away from the US toward more varied international markets increases the complexity and cost of assistance coordination, reinforcing the need for consolidated specialist platforms over in-house operations.
Beyond travel, the roadside and legal assistance components of the deal address two growing areas of insurer-client interaction.
Motor insurance accounts for the largest share of roadside assistance market provision at 32.5% in 2026, owing to the convenience of bundling assistance with mandatory ongoing coverage, with insurers benefiting from increased customer retention and cross-selling opportunities when roadside services are embedded as policy add-ons. Legal assistance services are also increasingly appearing in Canadian group benefit plans as employers seek to broaden their value-added offerings.
By consolidating all three assistance lines under a single dedicated platform, CanAssistance is positioning itself to offer insurers a fully integrated assistance proposition that reduces operational complexity and strengthens the customer experience at precisely the moments that determine long-term member loyalty.
