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Climate Change is Responsible for a 379% Increase in Average Annual Insurable Damages in the Last Decade in Canada 0

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Climate Change is Responsible for a 379% Increase in Average Annual Insurable Damages in the Last Decade in Canada

How Natural Disasters Impact Canadian Wallets: MyChoice Toronto, ON (Oct. 28, 2024) – In light of the devastating impact of the Milton hurricane in Florida, which by some estimates will cause anywhere in between $60-100 billion in insured damages, many Canadians are left wondering how the recent spike in natural disasters will impact the situation at home. This past summer in Canada will go down as one of the most challenging periods for homeowners and insurers alike. The Insurance Bureau of Canada recently reported record-breaking 228,000 insurance claims – representing a staggering 406% increase compared to the previous 20-year average. In light of these growing threats – MyChoice, a leading insurtech company in Canada, conducted a thorough analysis of how insurable losses from natural disasters changed over the last 40 years across Canada. Using data from the Canadian Disaster Database, the team compared the 10-year average of disaster-related annual insurable losses against the prior 30-year average, adjusted for inflation. The team also analyzed the Shelter Consumer Price Index data from the past 10 years to determine the home insurance inflation across Canada and compared it to current rates from the MyChoice quote database. Below are the key findings from the...

Neutrinos Unveils New Intelligent Automation Platform 0

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Neutrinos Unveils New Intelligent Automation Platform

New Automation Platform with 60+ Pre-Built Assets to Accelerate Insurance Industry Reinvention, Unlocking Unmatched Digital Transformation Capabilities for Insurers Atlanta, GA (Oct. 23, 2024) – Neutrinos, a technology company that automates business processes for insurance enterprises, is pleased to announce a major strategic shift with the launch of its new Neutrinos Intelligent Automation Platform. This next-generation platform represents a significant evolution in the company’s direction, moving beyond low-code to offer a comprehensive suite of intelligent automation tools designed to help enterprises—especially insurers—automate, optimize, and innovate at every level of their operations. The new platform brings together the power of an Omni-Channel Experience Layer, Low-Code Innovation Foundry, Process Automation, Advanced Decisioning, and Unified Control Management & Governance. This enhanced platform positions Neutrinos as a pioneer in intelligent automation for insurers, enabling customers to create seamless digital experiences, enhance operational efficiencies, and make data-driven decisions—all from a single, unified environment. A New Direction for Neutrinos: Empowering Enterprises through Intelligent Automation The shift reflects a commitment to catering to the evolving needs of enterprises by delivering a platform that not only accelerates development but also extends automation across every corner of the organization. This release marks Neutrinos’ entry into a new era where...

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Economic, Social Inflation Influence Drop in Commercial Auto UW Profits: Triple-I/CAS

Article 0 Comments Commercial auto insurance has struggled to achieve underwriting profitability, even before inflationary conditions affected property/casualty lines in recent years. The trend has been accompanied by steady growth in net written premiums (NWP), according to the Insurance Information Institute (Triple-I), an affiliate of The Institutes. In its “Commercial Auto: Trends and Insights“, Triple-I indicates the declines in underwriting profitability, despite relatively steady growth in premiums written, have been driven by several causes including that vehicles have become increasingly expensive to repair. Litigation trends have also had an impact, the report noted. Excessive injury and fatalities contribute to increased attorney involvement leading to higher claim-related expenses due to larger settlements and protracted litigation. Nationally, commercial auto defense and cost containment (DCC) expenses – a key measure of the impact of litigation on insurers – has nearly tripled over the past decade, the report stated. A recent study “Increasing Inflation on Auto Liability Insurance – Impact as of Year-End 2023”, conducted by Triple-I and the Casualty Actuarial Society (CAS), found that between 2014 and 2023, increasing inflation drove auto liability losses and DCC up by a range of $118.9 billion to $137.2 billion, or 9.9 percent to 11.5 percent of...

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5 Growth Strategies for Independent RIAs

Recruiting a diverse team also fosters innovation and adaptability. A workforce that combines traditional expertise with modern perspectives is better equipped to navigate industry changes. Firms should also consider implementing mentorship programs that pair experienced advisors with newer team members. This collaboration can facilitate knowledge transfer, bolster confidence and create a culture of continuous learning. 3. Lean into configurable technology and integrations. Unlike the wirehouse model, independence allows for adoption of agile technology, which advisors should prioritize. This flexibility enables RIAs to integrate solutions rapidly, enhancing efficiency and scalability. A recent survey from Fidelity shows that firms embracing tech-related best practices report higher-than-average efficiency, stronger growth, better client experiences and increased advisor satisfaction. According to the survey, tech-forward firms experienced a client growth rate of 20% compared to 8% for others and double the average assets under management growth rate (22% versus 11%). Additionally, advisors at “digitally empowered” firms reported higher career satisfaction (81% versus 59%), greater firm satisfaction (64% versus 44%), and higher average compensation ($489,000 versus $373,000). 4. Build strategic partnerships. Building strategic partnerships can enhance service offerings and remove barriers to growth. By collaborating with such specialists as CPAs, estate attorneys and other professionals, RIAs can provide...

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How an RIA Serves Ultra-Wealthy Clients by Catering to Its Advisors

It’s a very high-touch service. Your family office clients must have plenty of expectations. Correct? They do. So the sense of advisor responsibility is different for a family office. For example, with less complex clients, an expectation might be: I have a mortgage; and if interest rates come down, I’d like my financial advisor to proactively identify that issue and give me some leads on places that can refinance my mortgage and provide recommendations. Now, on the family office side, the clients want you to go out and find the best [re-fi] deal and negotiate it, fill out the paperwork and bring it to them. And that goes all the way to the administration. The distinction isn’t the strategy part or the proactive advice. It’s the administration, including filing tax returns. How much tax-related work do you do for clients that aren’t family offices? For all clients, we do tax strategy, like tax laws and what you should talk about with your tax advisor. But we don’t file the tax return. For a family office, we’re doing all the administration, preparing the documents and filing the returns. What’s Aspiriant’s organic growth strategy? Because our focus is on both our clients...

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Vanguard to Close Legacy Mutual Fund Platform by End of 2025

“But Vanguard is finally done with the nudges and incentives,” DeMaso added, noting one Vanguard investor holding physical mutual fund shares was told to return them or his shares would not be eligible for transition to the new platform. “Vanguard may call it an ‘upgrade’ on its transition website, but for anyone still holding on to a legacy mutual fund account or shares, this is an unwelcome change — and you don’t have a choice in the matter,” DeMaso wrote. For customers who do nothing, “Vanguard will simply transition your account to its brokerage platform, whether you like it or not,” he said. Investors also can take their money to a different provider, like Fidelity, Schwab or E-Trade, or can request a distribution — selling their shares, which could bring tax implications, DeMaso noted. The Vanguard Brokerage Account “is a modern investing platform for retail investors with a simplified web experience, access to Vanguard’s mobile app, and greater accessibility to a wider variety of products, including Vanguard ETFs,” Vanguard said in an emailed statement Friday. The company is working to transition customers on the legacy retail platform to a brokerage account, the Vanguard said. CityWire wrote about the transition earlier...

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Big I Illinois Announces Annual Awards

Article 0 Comments Big I Illinois, an association representing Trusted Choice® independent insurance agents throughout the state, presented awards to top agents and agencies during the association’s annual convention and 125th Anniversary Celebration held in Peoria, October 15-17, 2024. Big I Illinois presented Bennie Jones with the prestigious Charles M. Cartwright Award in recognition of his role as a longtime industry and association leader. Loman-Ray Insurance Group LLC of Urbana was awarded the Big I Illinois Agency of the Year Award in the large agency category. Rivian Insurance Services, LLC of Normal was awarded the Big I Illinois Agency of the Year Award in the small agency category. The Agency of the Year demonstrates strong growth, innovative marketing strategies, creative utilization of evolving technology, top-level customer service, and dedication to the community. Robert White of Bob White Insurance Agency, LLC in Mt. Vernon won the Agent of the Year Award, which honors the outstanding performance and achievement of an individual who is a retail agent member of Big I Illinois. Luke Hoerr of Summer & Associates, LLC: A Division of Troxell in Washington was named Young Agent of the Year, an award demonstrating exceptional service to the insurance industry, professional...

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Mississippi River Dries Up Again at Worst Time for US Farmers

Article 0 Comments The Mississippi River is suffering from low waters for the third straight autumn, a crucial time of year when American farmers rely on the route to deliver their crops to the world. Months of limited rainfall — with few chances for more during the rest of the season — have left the vital waterway so shallow that barges are starting to run aground, even after shippers started running lighter loads to prevent boats from hitting the river bottom. While the situation isn’t as chaotic as in years past, the lack of water is again creating headaches for shippers and farmers. The drying of the Mississippi over the past three years is raising shipping costs and hindering farmers’ ability to compete for markets overseas. During the best of times, nearly two-thirds of US crop exports are shipped on the Mississippi to the Gulf of Mexico. “Longer periods of low water, and increased transportation costs to get bushels to port in the US, ultimately starve off business,” said No Bull Inc. grain analyst Susan Stroud. Shipping costs are currently about 55% above the average for the past five years. While demand for American soy and corn is strong, those...

Auto thieves target Atlantic Canada as claims soar across region 0

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Auto thieves target Atlantic Canada as claims soar across region

Auto theft claims in Atlantic Canada are up nearly 13% – the largest increase in the country Halifax, NS (Oct. 15, 2024) – According to newly released data from Insurance Bureau of Canada (IBC), Atlantic Canada is becoming a hot spot for auto theft. In the first half of 2024, the region experienced a 13% spike in auto theft claims, the largest increase in the country. Over the last decade, auto theft claims have increased by 116% in the region. In addition to the surge in auto theft claims, the costs related to these claims are increasing. In the first half of 2024, claims costs increased 11.8% since the previous year. Alarmingly, auto theft claims costs have soared by 265% over the past decade in Atlantic Canada. “Opportunistic car thieves are increasingly shifting their focus to Atlantic Canada and away from provinces such as Ontario and Quebec, which have invested significantly in combating auto theft,” said Amanda Dean, Vice-President, Ontario and Atlantic, IBC. “The growth in auto theft in Atlantic Canada is putting pressure on auto premiums and compromising the safety and security of residents.” Looking at the provincial data in Atlantic Canada Nova Scotia saw the highest increase in...

Alberta leads Canada in auto insurance lawsuit costs 0

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Alberta leads Canada in auto insurance lawsuit costs

Litigation trends for auto collisions straining affordability of insurance, with the provincial rate cap worsening the situation for Alberta’s drivers Edmonton, AB (Oct. 15, 2024) – New data shows that the lawsuits and legal fees associated with insurance claims for auto collisions continue to soar in Alberta and are a key reason for the high cost of premiums. According to the latest information from the General Insurance Statistical Agency (GISA) – a statistical agency overseen by provincial insurance regulators – the cost of the average legal settlement related to auto insurance in Alberta exceeded $100,000 in 2023. This is a new record in Canada. The size of auto insurance settlements in Alberta have surged 116% over the past 10 years, according to GISA data. As a result, Alberta drivers now pay over three times more in their insurance premiums for costs associated with legal fees and litigation following collisions than drivers in other Canadian provinces. “We need to have an honest conversation about why premiums are increasing and what can be done about it,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “It’s critical that those injured in a collision receive the benefits they need to recover....