Insurable Interest Canadian Insurance Blog

Partnership reimagines the insurer-customer relationship Columbus, OH (Nov. 8, 2023) – Traditionally, electric vehicles (EVs) were seen as more of a novelty than a reliable means of transportation in the US. But as the technology has improved, so to have attitudes.  According to the International Energy Agency, in 2022 14% of global new car sales were EVs, a figure expected to reach 60% by 2030.  In the U.S. alone, 750,000 EVs were sold in 2022 a figure expected to jump to 1 million in 2023. This seismic shift in where people are choosing to spend their money is leading to new opportunities for both car manufacturers and insurance carriers. “All major automakers are thinking about insurance in one way or another,” said Angie Klett, senior vice president of Nationwide Corporate Development. “It’s a very active space as people try to find the right fit for their customers. To make it work, you need to meet customers where they are, give them the best experience possible, and continue to meet their changing needs.” The partnership between Nationwide and Rivian is proving to showcase a road map to success. Two different companies, one common vision The Rivian/Nationwide “carpool” began for Rivian customers...

Oldwick, NJ (Nov. 10, 2023) – The November issue of Best’s Review features a joint effort with AM Best TV to explore how artificial intelligence (AI) is impacting the insurance industry: Also included in the November issue: Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. Access to the complete content of Best’s Review is available here. About A.M. Best AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com. Copyright © 2023 by A.M. Best Company, Inc. and/or its affiliates. All rights reserved. SOURCE: A.M. Best Tags: A.M. Best, Artificial Intelligence (AI)

Recent claims data debunks perception that electric vehicles (EVs) are more often declared a total loss following a collision than their internal combustion engine (ICE) counterparts San Diego, CA (Nov. 8, 2023) – Mitchell, an Enlyte company and leading technology and information provider for the Property & Casualty claims and Collision Repair industries, is pleased to announce it has released its latest trends report, Plugged-In: EV Collision Insights. This quarter’s report examines total loss frequency for electric and ICE automobiles. In the U.S. and Canada from Q1 to Q3 2023, the EV total loss rate was 7.25% for models 2020 and newer. Luxury ICE automobiles manufactured over the same time period and with a comparable actual cash value (ACV) had a rate of 7.47% versus 8.49% for all ICE vehicles. “Many believe that auto insurers are writing EVs off as a total loss more often than their ICE counterparts of a similar model year and ACV, even with only minor damage,” said Ryan Mandell, director of claims performance at Mitchell. “Our data simply does not support that conclusion. In fact, even though an EV’s lithium-ion battery significantly increases the likelihood of a total loss outcome, we do not see these...

FSRA releases final IT Risk Management Guidance Toronto, ON (Nov. 8, 2023) – The Financial Services Regulatory Authority of Ontario (FSRA) is pleased to announce it is taking active steps to further protect consumers and their data against harmful IT risks, such as cyber threats, with the release of the final Information Technology (IT) Risk Management Guidance, following robust consultation. The Guidance will help FSRA-regulated sectors and individuals effectively manage threats to their IT systems, infrastructure and data. The Guidance includes: Seven practices for effective IT risk management A process to notify FSRA in the event of an IT risk incident Sector-specific requirements for credit unions and caisses populaires, Ontario-incorporated insurance companies and reciprocals, and pension plan administrators Regulated entities must still comply with existing requirements related to IT risk and the protection of personal information, including the requirements of the Personal Information Protection and Electronic Documents Act (“PIPEDA”). In response to the feedback gathered from January 23 to March 31, 2023, FSRA amended the proposed guidance as identified in the consultation summary. Some changes include: The effective date of the Guidance has been changed from June 2023 to April 1, 2024 The IT incident reporting timeframe has been updated to...

Start Slideshow Investors looking for the best dividend stocks to buy during this period of economic uncertainty and stock market volatility might consider adding undervalued, quality dividend stocks to their portfolios, Morningstar investment specialist Susan Dziubinski writes in a new blog post.  This is because quality companies have the stability to maintain their dividends during fraught economic periods, and price risk is reduced when investors can buy these companies’ stocks cheaply. Investors look past a stock’s yield and choose stocks whose dividends are durable and buy them when they are undervalued, Dziubinski said. To find the best dividend stocks, analysts looked to the 75 high-yielding stocks on the Morningstar Dividend Yield Focus Index, a subset of the firm’s U.S. Market Index, which represents 97% of equity market capitalization. Only securities whose dividends are qualified income are included; real estate investment trusts are excluded.  Analysts then screen companies for quality, using the Morningstar Economic Moat and Morningstar Uncertainty Ratings. Companies must earn a moat rating of narrow or wide and an uncertainty rating of low, medium or high; those with very high or extreme uncertainty ratings are excluded.  The index includes a screen for financial health with a distance-to-default measure, which...