Three weeks into his new role as president of managing general agency (MGA) Financial Horizons, Sean Downey says he’s not planning radical overhaul at the Kitchener-based firm, which has been in business since 1990.
“My role here is to be a steady hand to drive this business forward. It’s not to come in and make a bunch of changes to a model that’s successful today,” he said in an interview.
Financial Horizons was bought by Great-West Life in 2017 and is now owned by Great-West subsidiary Canada Life. It offers insurance solutions from more than 20 carriers to about 6,500 advisors and life agents, Downey said. Those carriers include Manulife, Sun Life and Industrial Alliance. Financial Horizons works with life-only licensed agents and advisors whose businesses include both insurance and wealth components.
“Canada Life has a place on our shelf, but earns the right to business the same way every other carrier does on an MGA platform,” Downey said.
“We’re quite proud of the autonomy and the independence we have because advisors are looking for partners that value their independence,” he said. “What we do here at Financial Horizons is ensure that advisors have an independent platform, free from any influence. They can pick and choose who they do business with.”
Downey has spent 23 years in the financial services sector, most of it focused on helping advisors grow their business. He comes to Financial Horizons after a six-month stint as vice-president, advisor growth and succession, at Investment Planning Counsel. Before that, he was at Canada Life/Great-West Life for more than 14 years, most recently as vice-president of wealth distribution platforms.
There are big challenges ahead for the industry, including changes in technology and regulation, Downey said.
“Financial Horizons’ core business is about driving advisor success,” he said, adding advisors are looking for innovative tools that will help them easily onboard clients and run their business in the most efficient, cost-effective and compliant way.
Downey said he believes the firm is on the right technology path, even if they’ve only begun studying potential applications for artificial intelligence (AI).
“AI is obviously transforming the way technology is being leveraged in business, I’d say very specifically on the service side of the business, but it’s premature now to talk about where AI is playing in the MGA technology space,” he said.
Downey’s also keeping abreast of potential regulatory changes ahead for MGA licensing.
“Our industry is constantly evolving,” he said. “We are constantly looking for opportunities to ensure both the business and advisors are properly supported through that change and ultimately bring the right market-facing opportunity support network from a compliance perspective.”
He sees opportunities for both organic and merger-and-acquisition growth for Financial Horizons, despite the highly competitive acquisitions environment that’s endured for the last six years.
“If you followed Financial Horizons’ path to where it is today, it’s been a blend of organic and inorganic growth,” he said. “There are a number of opportunities inorganically in the marketplace, and we are always open and looking for ways to scale up.”