Insurable Interest Canadian Insurance Blog

Toronto, ON (Oct. 5, 2020) – FIRST Insurance Funding of Canada (FIRST Canada), the industry leader in insurance payment solutions, and Vertafore Canada are proud to announce their strategic partnership. Vertafore Canada and FIRST Canada will once again redefine the customer experience, now with an efficient payment solution embedded within SIG. Using existing broker-centric workflows, SIG users will soon be able to provide financing quotes and payment plans along with the policy proposal, directly from within the broker BMS, SIG. “Payment plans are of critical value to the broker offering, now more than ever,” said Stuart Bruce, CEO of FIRST Canada. “Together with Vertafore Canada, we’re providing a streamlined way for brokers to improve their client experience, operational efficiencies, and cash management.” “This partnership with FIRST Canada marks another important step in Vertafore Canada’s commitment to helping our customers simplify their business processes, as well as another step forward in our vision of being Canada’s leading ecosystem-friendly InsurTech provider,” said Dimitrios Argitis, GM and VP Vertafore Canada. About FIRST Insurance Funding of Canada FIRST Insurance Funding of Canada (FIRST Canada) provides the Canadian Insurance Market with comprehensive payment solutions. Brokers, MGAs, and carriers can partner with FIRST Canada and expand...

Blake Wolfe | October 21, 2020 Despite the chance for a surprise Donald Trump victory in November’s U.S. presidential election, the country’s markets are locking in pricing on the assumption of a Joe Biden win, according to a webinar hosted by Franklin Templeton Investments Corp. on Tuesday. For Canadian institutional investors, the biggest impact of a Biden administration could eventually be felt in the energy sector, with a candidate seen as more amenable to green energy in the White House, said Julien Scholnick, portfolio manager at Western Asset Management Company. “Under Biden, we think that focus will change, but the landscape won’t be radically altered in the short term. Over a longer time period, given the changing demand from some institutional investors and increasing focus on environmental, social and governance factors, there’s a lot of reasons why there’s a shift in moving from fossil fuels toward cleaner energy. It’ll take longer, but the trend is already in place and it would certainly be accelerated under a Biden administration.” Read: Institutional investors own large chunk of Canada’s fossil fuel sector: report Similarly, while it’s assumed a Biden administration would reverse course on the low taxes and deregulation of the Trump era, Scholnick said these changes would...

Melissa Dunne | October 21, 2020 TMX Group Ltd.’s robust communications campaign for its long-standing employee share purchase plan led to a win in the benefits plan communications category at Benefits Canada‘s 2020 Workplace Benefits Awards on Oct. 16. In April 2020, the financial services company branded its ESPP with the slogan “Think like an owner, be an owner,” encouraging an ownership mentality among staff. The plan, which was introduced in 2002, also aims to provide meaningful financial rewards and engage employees with the financial markets in which the company operates. “We’ve been really thoughtful and deliberate about how often we speak about the program [and] who promotes it,” says Karin Adams, interim senior vice-president and group head of human resources at TMX Group. “This program has significant senior leadership support, so it isn’t just a program [human resources] is launching — our [chief executive officer] talks about it extensively; it’s featured in our all-employee meetings; our CEO has been doing video messages throughout the pandemic and spends a whole section talking about the ESPP and its advantages.” Read: Back to basics on employee share purchase plans All permanent full-time and regular part-time employees are eligible to participate. They can join the plan during any trading window by...

MassLive.com A majority of MassMutual employees impacted by selling of retirement plan business to Colorado-based Empower Retirement will receive new offers to join the Colorado company. “MassMutual recently reached a definitive agreement to sell our retirement plan business to Empower, which includes approximately 2,000 employees associated with the business,” Laura Crisco, head of media relations said in a statement to MassLive. “Empower has notified more than 90% of those employees that they will be receiving offers to join Empower when the transaction closes later this year, pending regulatory approvals.” The Springfield-based insurance giant and Empower Retirement announced in September that Empower has agreed to buy MassMutual’s retirement business for $3.35 billion. Crisco had said at that time that overall job numbers would change and that the company will assess how that impacts plans to bring jobs to Massachusetts while discussing it with the “appropriate parties.” About 160 employees are being laid off in the transition, which isn’t happening until the transaction closes later this year. Advertisement Those individuals will be receiving severance and outplacement services, as well as transition support, guidance and resources. They can also apply to one of the 250 open positions at MassMutual, the company said. None...

UPI Top News The United States Army has ruled that Spc. Vanessa Guillen died “in the line of duty” and that her family is entitled to receive military benefits. Texas’ Fort Hood, where Guillen was stationed, announced the determination of her death in a statement on Tuesday, saying it was made following an investigation. “This investigation concluded that Vanessa’s death was ‘in the line of duty,’” the statement read. “The Army conducts a line of duty determination for all Soldier deaths.” The benefits available to her family include compensation for expenses, a funeral for Guillen with full military honors, life insurance and final pay allowances, the statement said. Guillen’s remains were found dismembered and burned in late June, months after she was reported missing from the base on April 23. Advertisement Her death sparked outrage and prompted the Army last month to expand its investigation into her killing to include the chain-of-command at Fort Hood. Spc. Aaron David Robinson, who was also stationed on the base, died by self-inflicted gunshot as he was being pursued as a suspect in Guillen’s death. Prosecutors accused Robinson of killing Guillen with a hammer on the base and then disposing of her remains. Cecily...

The Canadian Life and Health Insurance Association (CLHIA) is urging the Ontario government to avoid putting unnecessary tax and regulatory pressure on the life and health insurance industry as it continues to provide an essential service in the midst of the COVID-19 pandemic. In its 2020 provincial budget submission to Ontario Finance Minister Rod Phillips, the association acknowledged the province’s need to find ways to rebalance its budget post-COVID. However, it emphasized that the life and health insurance space is the only sector that is subject to premium tax, retail sales tax, corporate income tax, and capital tax, all together resulting in more than $2.8 billion in revenue to the provincial economy. “Any additional tax burdens will put significant pressure on our members to continue to fulfil their current mandate of providing for the health and financial well-being of all Ontarians,” CLHIA said. It said the province’s two per cent tax on life, health, and disability insurance premiums and corresponding contributions to uninsured benefit plans results in nearly $600 million in premium taxes, while an eight per cent retail sales tax that Ontario applies to group insurance premiums and uninsured benefits plan contributions costs employers more than $1.6 billion annually....

Canadian travellers such as snowbirds who may hesitate to fly due to coronavirus concerns may now get a measure of security from Canada’s largest insurance provider. Manulife Financial is offering a COVID-19-related travel insurance product for Canadians taking trips domestically and internationally, including to countries where a level 3 travel advisory – which urges avoidance of all non-essential travel – is in effect. “As the largest travel insurance provider in Canada, we understand that some Canadians may have family, business and other important reasons for travelling,” Wally Thompson, head of Distribution, Affinity, Manulife said in an emailed statement to Life and Health Professional. “For those who do decide to travel, Manulife supports the health and safety of Canadians by offering specialized travel insurance for COVID-19.” The Manulife COVID-19 Pandemic Travel Plan, available until October 31, includes $5 million of non-COVID-19 emergency medical coverage, and $200,000 of coverage for cases of COVID-19. The policy will also provide coverage for quarantine-related expenses amounting to $150 per person or $300 per family for up to 14 days. The product also provides some coverage linked to trip interruptions or cancellations in the event of quarantine. In case a level 3 advisory is upgraded to...

Canadian travellers such as snowbirds who may hesitate to fly due to coronavirus concerns may now get a measure of security from Canada’s largest insurance provider. Manulife Financial is offering a COVID-19-related travel insurance product for Canadians taking trips domestically and internationally, including to countries where a level 3 travel advisory – which urges avoidance of all non-essential travel – is in effect. “As the largest travel insurance provider in Canada, we understand that some Canadians may have family, business and other important reasons for travelling,” Wally Thompson, head of Distribution, Affinity, Manulife said in an emailed statement to Life and Health Professional. “For those who do decide to travel, Manulife supports the health and safety of Canadians by offering specialized travel insurance for COVID-19.” The Manulife COVID-19 Pandemic Travel Plan, available until October 31, includes $5 million of non-COVID-19 emergency medical coverage, and $200,000 of coverage for cases of COVID-19. The policy will also provide coverage for quarantine-related expenses amounting to $150 per person or $300 per family for up to 14 days. The product also provides some coverage linked to trip interruptions or cancellations in the event of quarantine. In case a level 3 advisory is upgraded to...

Associated Press RALEIGH, N.C. (AP) — A North Carolina insurance magnate and prolific political donor has started serving a federal prison sentence for corruption-related convictions. Greg E. Lindberg was in custody on Tuesday at a minimum-security prison in Montgomery, Alabama, according to Scott Taylor, a spokesman for the Federal Bureau of Prisons. A judge on Monday denied a second request by Lindberg’s lawyers to delay his Tuesday reporting date. Lindberg, 50, was sentenced in August to more than seven years in prison after being convicted of attempting to bribe North Carolina’s insurance commissioner to secure preferential regulatory treatment for his insurance business. Lindberg is appealing his convictions. Lindberg had given more than $5 million to state and federal candidates and committees since 2016, favoring Republicans but also giving to Democrats. John D. Gray, a consultant for Lindberg’s company, was convicted of charges similar to Lindberg’s. But Gray, 70, didn’t have to report to a West Virginia federal prison on Tuesday as initially required to begin his 2 1/2-year sentence. U.S. District Judge Max Cogburn on Monday granted Gray’s request to delay his starting date until Jan. 1, citing the defendant’s age and history of heart-related issues as elevating his risk...

Although overall adoption is still modest, telematics-based offerings are increasingly seen as enhancing customer-engagement: Novarica Boston, MA (Oct. 20, 2020) – Telematics-based products and services are becoming an important segment of the personal and commercial automotive and fleet insurance markets. While overall penetration is estimated at about 6-8% of insurers’ books, some insurers’ penetration rates have reached 30-35%. In a new report, Telematics in Insurance: Overview and Key Issues, research and advisory firm Novarica examines the current state of telematics in personal auto insurance, including insurer activity, adoption rates, common program features, and the design of telematics-based insurance products. “Telematics doesn’t have to become dominant to affect consumer expectations around price, convenience, and service,” said Harry Huberty, Chief of Staff at Novarica and author the new report. “Insurers taking a ‘wait-and-see’ approach to telematics should be mindful of the effect that expansion of telematics may have on their books of business as less safe drivers ‘attrition out’ of their competitors’ telematics programs.” Among the key findings of the report are: Overall penetration is about 6-8% of insurers’ books, with some up to 35%. Telematics won’t become dominant in the near future, but some insurers are having substantial successes. Value-added services and...