Insurable Interest Canadian Insurance Blog

New critical illness product designed to protect all Canadians from financial crisis due to a critical illness Toronto, ON (Nov. 9, 2020) – Foresters Financial™, the 146-year-old fraternal life insurer, today announces the launch in Canada of Live Well Plus and Live Well, critical illness insurance products focused on the needs of under-served everyday Canadian families. The two offerings represent a comprehensive refresh of critical illness insurance at Foresters with new pricing and expanded benefits. With face amounts of $25,000 to $2,000,000 for terms ten, twenty, and to age 80, Live Well Plus covers a broad range of 25 critical illnesses, modernized to reflect the most current Canadian Life and Health Insurance Association (CLHIA) standards. One or a combination of these affect over 340,000 Canadians per year.[1] Designed for middle-aged Canadians, Foresters is the only insurer in Canada to offer non-medical underwriting to age 65 for coverage up to $100,000 and is unique in its term coverage to age 80, with no additional policy fees applied. Additional advantages of Live Well Plus include a built-in Return of Premium at Death benefit, along with three optional riders (Waiver of Premium, Return of Premium on Surrender or Expiry, and a convertible Juvenile...

New York, NY (Nov. 3, 2020) – Marsh has released its Global Insurance Market Index for the third quarter of 2020. The increase, the largest since the index was launched in 2012, follows year-over-year average increases of 19% in the second quarter and 14% in the first quarter. The average composite price increase of 20% was driven principally by property insurance rates and financial and professional lines. Among other findings, the survey noted: Global property insurance pricing was up 21% and global financial and professional lines were up 40% on average, both greater than the increases reported for the second quarter. Casualty pricing was up 6% on average, a slight drop from the 7% increase reported for the prior quarter. Composite pricing in the third quarter increased in all geographic regions for the eighth consecutive quarter. All regions, except Latin America (9%), reported double-digit pricing increases, led by the UK (34%), Pacific (33%), and the US (18%). Pricing changes in all regions were equal to, or greater, than increases reported for the second quarter. Public company directors and officers (D&O) coverages continued to see large increases. D&O pricing in the UK and Australia was up more than 100%, while pricing in the...

Intact possible offer for RSA — Update and Investor Presentation PREVIOUSLY RELEASED IN THE UK NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE. Toronto, ON (Nov. 9, 2020) – On 5 November 2020 RSA announced that it had received an approach from Intact and Tryg A/S (“Tryg”) (together the “Consortium”) regarding a possible cash offer by the Consortium for RSA at a price of 685 pence per RSA share (the “Proposal”). Under the Proposal RSA shareholders will receive in addition the announced interim dividend of 8 pence per RSA share. Further information regarding the Proposal was announced by RSA and the Consortium later on the same day. Intact today provides further information regarding its proposed participation in the Consortium and its plans for the RSA businesses in its Canada and Specialty lines segments, as well as the opportunities in the UK &...

New SMA Blog by Mark Breading, Partner, Strategy Meets Action — Artificial intelligence technologies are everywhere. The great leap forward in AI over the past decade has come along with an explosion of new tech companies, AI deployment across almost every industry sector, and AI capabilities behind the scenes in billions of intelligent devices around the world. What does all of this mean for the personal lines insurance sector? SMA answers this question in a new research report, AI in P&C Personal Lines: Insurer Progress, Plans, and Predictions. The first step toward answering this question is to understand that AI is a family of interrelated technologies, each with its own potential use cases and insurance implications. The key technologies relevant for P&C insurance are machine learning, computer vision, robotic process automation, user interaction technologies, natural language processing, and voice technologies.[1] It’s a challenge to sort through all these technologies, the InsurTech and incumbent providers that offer AI-based solutions, and where each insurer will benefit most from applying AI. The overall value rankings indicate that user interaction technologies fueled by AI are at the top of the list for personal lines insurers. Every insurer has activity underway, mostly by leveraging chatbots...

A new Aite Group report explores what carriers can learn by listening to the voice of the agents Boston, MA (Nov. 5, 2020) – The recent pandemic has elevated consumers’ awareness of mortality risks and the necessity for protection as well as heightened their concern over their financial needs. Customers are expecting a holistic review of their financial planning needs and products and services that will create a path for their overall wellness. An agent’s input can be a valuable source of benchmarking for carriers and help their product, distribution, operations, and technology leaders understand this competitive landscape. The latest Aite Group report, U.S. Life Insurance Carrier Performance: The Agents’ Perspective, aims to help insurance carriers, agency owners, and solution providers to gain an understanding of the criteria agents consider important when planning life insurance business. “In the last few months, agents have played a critical role in deploying carriers’ response to the pandemic, such as facilitating remote applications, underwriting without fluids, and communicating digitally with customers,” says Manoj Upreti, senior analyst at Aite Group. “The carriers are learning that friction in the agent experience can ultimately lead to difficulty meeting consumers’ needs and failure to deliver the value they...

Lauren Bailey | November 9, 2020 Magna International Inc. is using data to personalize its wellness program, increase employee engagement and reduce costs. In 2012, the Canadian automobile parts manufacturer established its own internal health and wellness team. At first, the program focused solely on disseminating basic educational materials, such as quarterly newsletters, posters and handouts, said Dr. Krista Markew, manager of health promotion at Magna, during the 2020 Group Insurance and Pharmaceutical Committee conference last week. Speaking during the virtual event, she said the program has grown in scale and scope to include seven co-ordinators who travel to each of the organization’s 42 divisions in Ontario to provide health screenings, coaching and yearly followups to its 20,000 employees monthly. In-person programs were put on hold due to the coronavirus pandemic but Magna is planning to hold some events virtually next year. Read: Next steps for data analytics in disability and benefits plans The team targets wellness initiatives through four steps: data analytics, research and design, implementation and assessment. The first step is a collaboration with the company’s benefits team to examine claims data, industry trends and employee feedback, said Markew, adding division leadership values the claims data because they want to know what costs the most and find...

Amid a resurgence of cases of COVID-19 infection and prospects of further economic and financial pain, consumers are showing more confidence than ever in the life insurance industry, according to a new survey from LIMRA. In the latest edition of its Consumer Sentiment Survey, the organization found that 41% of Americans reported having “extreme” or “quite a bit” of confidence in life insurers, marking a record high. It found a similar uptrend in sentiment for financial professionals, with 33% of consumers expressing that level of confidence in insurance agents and brokers, and 37% with respect to financial advisors. “Other research we have done throughout the pandemic has shown how much insurers and financial professionals have done to adapt and offer digital solutions to help their customers virtually when they couldn’t meet face-to-face,” said Alison Salka, Ph.D., senior vice president and head of LIMRA Research. Another supportive trend, Salka said, has been a growing understanding of the value of insurance coverage among consumers. Fifty-seven per cent of Americans that LIMRA surveyed in October reported feeling an increased need for life insurance. Part of the heightened awareness surrounding life insurance has been spurred by concerns around the pandemic. However, the survey revealed...

Staff | November 6, 2020 Arthur J. Gallagher & Co. is acquiring integrated talent management firm Optimum Talent Inc. With this acquisition, the Quebec-based company will gain access to Gallagher’s resources, enabling it to further enhance its plan sponsor offerings, noted a press release. As well, the merger will allow Gallagher to expand its reach in the benefits and human resources consulting industry across Canada. Read: Gallagher expands presence in Atlantic Canada with SBW Employee Benefits acquisition “The Optimum Talent team will introduce our Gallagher Better Works organizational well-being strategy to the many clients that they support, expanding our senior management relationships across Canada and creating additional opportunities for capabilities discussions and consulting engagements,” said J. Patrick Gallagher, Jr., chairman, president and chief executive officer of Gallagher, in the release. The Optimum Talent team will continue to operate from their current locations under the direction of Melanie Jeannotte, CEO of Gallagher’s benefits and HR consulting division in Canada. Read: Gallagher acquiring Toronto-based Accompass Read the full article at BenefitsCanada.com

Staff | November 6, 2020 The Caisse de dépôt et placement du Québec is entering a US$300 million warehouse financing agreement with Titan Aircraft Investments Ltd. The warehouse facility will provide debt capital to finance Titan’s acquisition of freighter aircraft leases. The Caisse and BNP Paribas are joint lead arrangers and lenders in the transaction. “This investment is well-aligned with our capital solutions strategy to create tailored solutions backed by high-quality assets in great demand by strong counterparties, such as global freight aircraft lessors and to achieve attractive risk-adjusted returns,” said Martin Laguerre, managing director of capital solutions at the Caisse, in a press release. Read: Caisse investing further in electric vehicle charging network In other investment news, the Ontario Teachers’ Pension Plan’s teachers’ innovation platform is leading a US$267 million round of investment in Pony.ai, a company specializing in driverless vehicles. Other investors in this round include Fidelity China Special Situations, 5Y Capital, ClearVue Partners and Eight Roads Ventures. “We see a significant global opportunity for autonomous vehicle technology,” said Olivia Steedman, senior managing director of the innovation platform at Ontario Teachers’, in a press release. “Pony.ai’s leading technology and deep, strategic understanding of the sector have helped to position the...

New partner’s payment technology helps eliminate manual entry of payment data and its associated costs, while reducing recording errors Toronto, ON (Oct. 28, 2020) – ClearPay, a leader in payment automation solutions for P&C insurers, and Guidewire Software, Inc., the platform P&C insurers trust to engage, innovate, and grow efficiently, have announced that ClearPay has joined Guidewire PartnerConnect as a Solution partner. ClearPay streamlines the payment process for insurers by automatically transferring funds and remittance data in a standardized format from agencies to insurers. ClearPay’s Ready for Guidewire integration will enable Guidewire users to receive standardized policy and payment information within Guidewire BillingCenter. “Insurers are continually looking to automate repetitive processes, enhance profitability, and make it easier for agencies to do business with them,” said John Knotek, chief executive officer, ClearPay. “ClearPay’s automation, delivered to users through their integration, will provide a long-desired solution for insurers, without having to impose any changes on their valued agency partners.” “We are thrilled to welcome ClearPay as our latest Guidewire PartnerConnect Solution partner,” said Becky Mattick, vice president, Global Solution Alliances, Guidewire Software. “Their Ready for Guidewire integration will soon enable insurers to eliminate the manual handling and entry of payment receipts, policy...