Insurable Interest Canadian Insurance Blog

Q&A with Zair Kamal Director, Client Development & Cyber Specialist Morristown, NJ (Nov. 30, 2023) – We’re now seeing breakthroughs in language models such as ChatGPT, due to the availability of computing power required to power them. People are naturally fascinated with how machine learning and AI are able to benefit their lives and businesses. However, with the evolution of new technology comes risk. In this Question & Answer session, Zair Kamal, Director, Client Development and Cyber Specialist, HSB Canada, provides cyber security insights. What is ChatGPT? ChatGPT is a state-of-the-art language generation model developed by OpenAI, capable of understanding and generating human-like text based on a given prompt. ChatGPT can give a complete and articulate answer to any question that is typed into it. Looking for the world’s best chocolate cake recipe? Type it into ChatGPT and you never need to search Google. How could a ChatGPT-type AI model cause harm? Language models such as ChatGPT can be used in the following ways by bad actors: Compromising sensitive data: Language models process and store large amounts of data from inputted queries. If employees upload sensitive data and confidential information into the model, data could be hacked, leaked or accidently...

Nearly half of all businesses are now struggling with low sales: Canadian Federation of Independent Business (CFIB) Business Barometer® Toronto, ON (Nov. 30, 2023) – Small business confidence kept diving in November, with the Canadian Federation of Independent Business (CFIB)’s Business Barometer® 12-month outlook index reaching a very low 45.6 points. Outside of the past three months, sub-50 index readings have only been recorded during the 2008/2009 and 2020 recessions. Almost all provinces posted drops in confidence, with Quebec (42.0) and Ontario (45.4) remaining at the bottom of the optimism scale. Among sectors, businesses in agriculture (32.4), hospitality (40.0), retail (40.5) and construction (45.8) registered low levels of optimism this month. An index level below 50 means there are more owners who are negative than positive about their own business’ outlook. “Small businesses are facing stronger and stronger headwinds as they head into the last stretch of 2023, with real interest rates choking demand more firmly and continuing to severely restrict credit conditions, while governments at all levels keep adding more fiscal and regulatory pressure on entrepreneurs and employers. Overall, business conditions have seldom been more challenging for so many businesses. Something has got to give soon if we want...

Mississauga, ON (Dec. 1, 2023) – First Onsite Property Restoration, Canada’s leading property restoration company, has opened a new branch in Regina, Saskatchewan. This branch location represents the ninth capital city location for First Onsite in Canada and a deepening connection with commercial, insurance, and residential customers in western Canada. First Onsite has been operating in and around the Regina area for years, bringing in teams and resources as necessary to handle restoration projects for national clients who rely on the company’s services. As the demand continued to increase for the company’s presence in the area, First Onsite responded to its clients’ requests for local operations by investing in the Regina facility, with satisfaction that the company is meeting a need to provide reliable, top-notch restoration services for the Regina area communities. “We are continuing with our growth strategy and opening branches in areas that make geographical sense and allow us to offer improved coverage for our customers,” said Jamie Mackie, Regional Vice President – Prairies, First Onsite Property Restoration. “Regina was the next logical step for us in western Canada and now we’re in every major city in the west. This is a great location for us given that Regina...

Aviva to acquire Optiom for consideration of c. £100m (CAD$170m)[1] Supports Aviva’s capital-light growth in attractive Canadian market Strengthens Aviva Canada’s specialty lines business and distribution capabilities San Diego, CA (Nov. 6, 2023) – Aviva plc is pleased to announce the acquisition of Optiom O2 Holdings Inc. (Optiom) from Novacap and other minority shareholders for consideration of c.£100m (c.CAD$170m)[1]. Optiom, which operates as a managing general agent (MGA), is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers. The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom’s strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers. Tracy Garrad, Chief Executive Officer of Aviva Canada, said: “The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market. We...

Aviva to acquire Optiom for consideration of c. £100m (CAD$170m)[1] Supports Aviva’s capital-light growth in attractive Canadian market Strengthens Aviva Canada’s specialty lines business and distribution capabilities San Diego, CA (Nov. 6, 2023) – Aviva plc is pleased to announce the acquisition of Optiom O2 Holdings Inc. (Optiom) from Novacap and other minority shareholders for consideration of c.£100m (c.CAD$170m)[1]. Optiom, which operates as a managing general agent (MGA), is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers. The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom’s strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers. Tracy Garrad, Chief Executive Officer of Aviva Canada, said: “The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market. We...

Start Slideshow Most Americans planning overseas vacations think twice about safety at their desired destinations — not surprising when terrorism, natural disasters and negative local attitudes toward various groups regularly make headlines. For the 2024 list of the World’s Safest Cities from Berkshire Hathaway Travel Protection, a travel insurance provider, researchers ranked 31 cities based on information from Expedia, USA Today, Forbes and other sources. In August, as part of this process, they polled travelers who had visited the cities, allowing them to rank those places on a variety of safety measures, using their first-hand knowledge as a yardstick.  The researchers supplemented the survey ratings with the most recent safe-cities index from The Economist, city ratings from GeoSure Global and the crime index from Numbeo. They weighted the numbers to arrive at a final result. See the accompanying gallery for the 15 safest cities in the world for travelers, according to Berkshire Hathaway Travel Protection. Start Slideshow

Start Slideshow While many elements of the original Secure Act were applauded by the financial services community, that was not universally the case. A limited number of the law’s provisions were accepted as unfortunate but necessary “revenue raisers” to help offset the cost of implementing the retirement-related legislation. Among these was the provision that killed the so-called “stretch IRA” — i.e., the part of the law that sharply limited the distribution options for most individual retirement account beneficiaries who inherited accounts in 2020 or later. Post-Secure, most beneficiaries must now fully distribute the IRA assets and claim the proceeds as income for tax purposes within a 10-year window. Surviving spouses, however, were carved out as one of the few enumerated groups of individuals who continue to be eligible for taking inherited IRA distributions over their life expectancy — thereby stretching the IRA. This is not a surviving spouse’s only option, though, and the choices they make will affect the rate of distributions that must be taken from the inherited IRA. Because surviving spouses have limited time to choose their approach, experts warn, it’s important to ensure that clients understand their choices and the consequences. Clearly, the rules and options for...