Insurable Interest Canadian Insurance Blog

Toronto, ON (Nov. 23, 2020) – FIRST Insurance Funding of Canada (FIRST Canada), the industry leader in payment solutions, is pleased to announce the launch of Interac e-Transfer® Bulk Receivables in collaboration with AcordPay. FIRST Canada is the first in the insurance industry to offer its brokers the ability to request payment with Interac e-Transfer. Now FIRST Canada brokers banking with Royal Bank of Canada can offer their clients the convenience and security of Canada’s most popular real-time funds transfer service, Interac e-Transfer. FIRST Canada brokers have the ability to integrate Interac e-Transfer into their Payment Options Form, providing brokers and their clients with one streamlined and efficient process. Interac e-Transfer Bulk Receivables also makes reconciliation easier by providing the option to include policy or client identification, and deposits the funds directly into the brokers’ trust account. Brokers requesting payment via Interac e-Transfer improve their operations by receiving payments faster, improving their cash flow, and reducing their receivables. “We invest significantly in innovating payments in Canada,” said Stuart Bruce, CEO of FIRST Canada. “In collaboration with AcordPay, now our broker partners can improve their operations while delivering an exceptional client experience.” “AcordPay is proud to facilitate a new level of...

HSB Canada’s Applied Technology Solutions Are Transitioning Insurance to Connect and Protect IoT-based program alerts customers to potential water leaks and frozen pipes An early warning system for insurers and commercial insureds Sensor Systems by HSB sends alerts to help prevent costly damage Hartford, CT (Nov. 18, 2020) – HSB Canada, part of Munich Re, has introduced Sensor Systems by HSB, a turnkey solution to help insureds reduce common property claims. The program monitors, predicts and alerts customers to risk events associated with water leaks, pipe freezing and critical temperature changes. “Water is the ‘new fire’, with billions of dollars paid out in commercial water damage claims each year,” said John Mulvihill, president and chief executive officer of HSB Canada. “HSB Canada is on a mission to drastically reverse this trend, using its extensive equipment data and experience with IoT-based systems to offer an early warning system for insurers and insureds.” HSB Canada offers its IoT services through insurers and risk pools, installing sensors at commercial locations to monitor for conditions that pose risks. First launched in the USA, Sensor Systems by HSB has saved customers millions of dollars in potential losses by mitigating property damage from water and frozen...

Hamilton, Bermuda (Nov. 17, 2020) – Enstar Group Limited  (“Enstar”) and Stone Point Capital LLC (“Stone Point”) are pleased to announce they have signed definitive agreements to sell StarStone Underwriting Limited (“SUL”), the Lloyd’s managing agency, together with the right to operate Lloyd’s Syndicate 1301, to Inigo Limited (“Inigo”), a new specialty re/insurance holding company. Enstar, Stone Point and Dowling funds will receive $30 million of consideration from the sale of SUL in the form of Inigo shares upon closing. In addition, Enstar and Stone Point will commit to invest up to $27 million and $18 million respectively into Inigo. Inigo is led by founders Richard Watson, Russell Merrett and Stuart Bridges and will operate as a Lloyd’s specialty insurer writing a streamlined portfolio of insurance and reinsurance risks and will receive certain transitional services and staff from Enstar. In conjunction with the transaction, Enstar, Stone Point and Dowling Capital will retain the economics of Syndicate 1301’s 2020 and prior years’ underwriting portfolios as this business runs off. The Inigo investment is expected to close in late 2020 and the SUL sale is expected to close in the first half of 2021, subject to regulatory approvals and satisfaction of customary...

AGCS analysis of more than 1,700 cyber claims: External events such as “DDoS” attacks result in the most costly cyber losses but internal incidents like human error or systems failure occur more often, albeit with a lower financial impact. Business interruption is the main cost driver of cyber claims. Inability to access data or services can have a significant impact on revenues, given growing reliance on online sales. Rise in ransomware attacks, the cost of larger data breaches and the Covid-19 working landscape present significant future cyber risks. New York, NY (Nov. 19, 2020) – External attacks on companies result in the most expensive cyber insurance losses but it is employee mistakes and technical problems that are the most frequent generator of claims by number, according to a new report from Allianz Global Corporate & Specialty (AGCS), Managing The Impact Of Increasing Interconnectivity – Trends in Cyber Risk. The study analyzes 1,736 cyber-related insurance claims worth EUR 660mn (US$ 770mn) involving AGCS and other insurers from 2015 to 2020. “Losses from incidents such as distributed denial of service (DDoS) attacks or phishing and ransomware campaigns account for a significant majority of the value of cyber claims today,” says Catharina Richter,...

Toronto, ON (Nov. 23, 2020) – Apollo Insurance Solutions Ltd. is pleased to announce that Tracey Swain has joined the APOLLO leadership team as Chief Financial Officer (CFO). Swain brings over twenty years of experience in progressive accounting, audit, and finance roles for global companies. Most recently, Swain served as CFO for O2E Brands, a privately held and parent company of 1-800-Got-Junk?, founded out of Vancouver, BC. Previously, Swain served as Vice President of Internal Audit for Lululemon (NASDAQ: LULU) and was Vice President of Corporate Finance for Adidas (XTRA: ADS). “Tracey couldn’t have joined APOLLO at a better time,” said Jeff McCann, CEO of APOLLO Insurance. “With her extensive financial and public markets experience, she will be instrumental in scaling APOLLO’s aggressive growth into 2021.” Swain’s mandate will include building and leveraging financial systems, processes and controls to support APOLLO’s strategic and operational plans. “I am excited to join the APOLLO team. APOLLO is poised for rapid expansion, and I look forward to leading a finance team that will be a strong partner to both our internal business leaders and our industry partners.” Tracey completed her Bachelor’s of Commerce in Accounting from the University of British Columbia and is...

Blake Wolfe | November 23, 2020 As more companies integrate diversity, equality and inclusion strategies into their workplaces, listening and leadership are among the keys to a successful program, according to a webinar hosted by Mercer Canada on Thursday. The company held a series of special listening sessions for staff following the deaths of Black civilians during police encounters in the U.S., said Jaqui Parchment, chief executive officer at Mercer Canada, noting the sessions revealed a “huge gap in understanding” among some staff and emphasized the importance of listening to how these events have affected the workforce. Read: Starbucks tying executive pay to diversity targets “I know there’s many caring individuals who aren’t part of the Black community who want to share their thoughts about how they’re not part of the issues that we’re seeing today. But it’s really important to pause and just hear. Otherwise, you won’t learn as much and you risk turning off the people you’re trying to engage.” The company’s diversity strategy has also involved an examination of its entire human resources approach to correct embedded bias, she said, citing the example of extensive requirements in a job posting and the potential effect it may have on candidates. “We...

We live in an age of personalization and innovation. Today, we can customize just about every product or experience that we buy, and life insurance is no different.  Millennials are taking note of what older generations are currently dealing with and are trying to mitigate those situations for themselves. They want to be equally proactive as their parents, but in a simpler and more personal approach. During these past several months, many individuals have taken a long hard look at their financial goals and current levels of protection. In fact, according to a recent Life Happens survey conducted earlier this spring, more than two-thirds of Americans said that the events of this year have caused them to reexamine their finances. Whether people are eying an early retirement, building more protection or creating a financial stability strategy for their loved ones, the insurance industry saw an uptick in individuals proactively seeking protection for themselves and their families. However, many of the products available to provide that desired outcome may also be too expensive at their current stage in life. Younger generations, particularly millennials, are often saddled with substantial debt like student loans, while also already saving for their own children’s college...

Those choosing to avail of whole and term life insurance from Empire Life may now get added protection from a new disability rider. Launched last week, the Empire Life Disability Credit Protect is available on most term and whole life insurance plans offered by the company. Through the benefit, policyowners can get financial protection in the event of a life-altering disability that prevents them from working. They can receive funds to use for different purposes such as replacing their income, covering short-term expenses or rent, and making mortgage or car payments. “Now more than ever, Canadians are looking for ways to protect their finances and preserve their family’s lifestyle when the unexpected happens,” said Mike Stocks, vice-president and chief marketing officer, Retail. According to stocks, using Empire Life Disability Credit Protect in conjunction with the insurer’s Solution 25 term life insurance coverage offers an “attractive, competitively-priced alternative to mortgage insurance offered by the banks.” In the case of mortgage life and disability insurance bought from banks, the benefits go directly to the lender and are used to pay off the policyowner’s mortgage; individual life insurance benefits, on the other hand, are paid to the beneficiary, who can use the funds...

Staff | November 20, 2020 The Office of the Superintendent of Financial Institutions and the Financial Services Regulatory Association of Ontario have selected members for their new joint advisory committee on defined contribution pension plans. The committee will review the regulators’ approaches to supervising DC plans and, where possible, enhance regulatory efficiency and effectiveness by finding opportunities for harmonization. Read: OSFI, FSRA forming committee to collaborate on DC pension plans The members are: Susan Bird, the Multi-employer Benefit Plan Council of Canada; Michael Dodd, the Co-operators Group Ltd.; Jo-Ann Hannah, pension and benefits consultant; Lisa Jankov, the Pension Investment Association of Canada; Zaheed Jiwani, Eckler Ltd.; Roman Kosarenko, George Weston Ltd.; Michelle Loder, Morneau Shepell Ltd.; Corienne Logan, Many Nations Co-operative Ltd.; Roger Maguet, Canada Life Assurance Co.; Brett Marchand, Manulife Financial Corp.; Tim Mark, the Royal Bank of Canada; Martin McInnis, the Co-operative Superannuation Society pension plan; Alex McKinnon, the United Steelworkers; Joe Nunes, the Canadian Institute of Actuaries and Actuarial Solutions Inc.; Todd Saulnier, the Association of Canadian Pension Management; Susie Taing, Sun Life Financial; David Vincent, Canadian Benefits Law; and Paul Webber, Cowan Insurance Group. Read: FSRA issues new guidance for pension plans transferring commuted values, purchasing annuities  Read the full article...

The Canadian Press, with files from staff | November 20, 2020 The Canadian Federation of Independent Business is asking the federal government to hold Canada Pension Plan premiums at current levels next year when they’re scheduled to rise, as employers and employees struggle with the ongoing coronavirus pandemic. According to the organization, approximately one third of small businesses are currently losing money and higher payroll taxes will limit their ability to hire and pay employees, who could also see their take-home pay fall when CPP premiums go up. Read: ‘Exciting time for retirement’ as CPP deal signals premium boost to 5.95% “Let’s not forget that the premium hike hits employees too, ensuring that every working Canadian will see a drop in their take-home income unless their employer is able to give them a larger raise on Jan. 1,” said Dan Kelly, president of the CFIB, in a statement. “Given the difficult situation many smaller firms are facing simply trying to hold on to their staff, now is not the time to raise taxes.” The organization has long opposed a plan to gradually raise premiums for the CPP and its Quebec counterpart over several years to improve retirement benefits for employees over the long...