At its annual meeting in Vancouver today, TD Bank Financial Group CEO Ed Clark stated the bank is turning its attention from mergers to improving the banks’ access to the insurance industry.

In his opening address, he defended the idea of mergers as a legitimate business strategy, and indicated that if they were to be allowed, “TD would definitely be at the table”.

However, Clark allowed that the banks have not explained to Canadians how they would benefit from mergers. As a result the issue has been politically untenable — and the banks have faced a prolonged period of merger uncertainty.

Clark indicated that TD has heard from the government that bank mergers and bancassurance deals are not part of its agenda, and that the government will indicate when they are;

So in the meantime, the banks can focus on other issues, such as seeking more access to the insurance business. However, Clark stressed that TD is not looking to sell insurance in its branches. Rather, he indicated that the bank only wants approval to provide information about insurance to clients in its branches when clients ask for it, to send information to clients that “need it”, and permission to refer clients to an insurance professional.

He argued that this would not hurt the business of insurance agents, “Insurance agents are our customers too, and we have no desire, or intention, to weaken the insurance agent industry,” he said.

Instead, he argued that Quebec’s experience shows that when it opened the market to the caisses populaires, allowing them to sell insurance in their branches, there was an overall increase in business, with insurance agents doing more business and customers having more options.

“We’ve seen this phenomenon in lots and lots of marketplaces,” Clark noted, “Allow more participants, and the whole market grows. Everyone benefits.”