Insurable Interest Canadian Insurance Blog

Some forward-thinking insurers are making bold moves to harness the power of digital technology, partnerships and ecosystems that are redefining a new generation of affinity and program business Morristown, NJ (Oct. 29, 2020) – Majesco, a global leader of cloud insurance software, has announced the release of a new thought leadership report, A Roadmap to the Future of Insurance: Program and Affinity Business.The report, based on a joint primary research study with PIMA, found that while the affinity and program business market has seen strong growth, there is still significant untapped opportunity to expand and accelerate growth by introducing new products and leveraging new, innovative partnerships within a broader ecosystem. As expected, the research reflected the organizations are predominantly focused on traditional partners for affinity and program business, such as associations, professional organizations, and employer groups. However, today’s new buyers do not necessarily associate with many of these groups and seek to buy insurance from others such as Gig Economy groups, health and fitness organizations, large retailers, auto manufacturers and more – where the purchase is at a point of when they want it or part of a transaction with that entity, making the buying process frictionless. “What we uncovered...

Toronto, ON (Oct. 30, 2020) – The Covid-19 pandemic may be the defining event of this generation, broadly impacting the world economy as well as global physical and mental health. According to Aviva’s recent Covid-19 Consumer Behaviours Insights Study, 2020 also has seen significant shifts in the behaviour of Canadian insurance customers compared to previous years. Customers are Three Times More Likely to Shop for Insurance Over the Next Year “What we saw this year is that about 33 per cent of Canadians are shopping for insurance, compared to previous years when it was 11 per cent,” says Charlene Ramdeo, Digital Lead with Aviva’s Digital Marketing Consultancy (DMC Group). “This increase drives the need for brokers to be online and be active and responding to clients who are shopping.” According to Ramdeo, “People are more likely to shop when premiums go up. But what we don’t realize is that they are actually more likely to shop as well when premiums go down, which indicates to them they can save more money elsewhere. This is where the value of the broker comes in.” Ramdeo presented the study findings with Pam Buckley, Aviva’s Research and Insights Lead- Customer Marketing, in a live webinar titled “Changing Consumer...

Industry results begin to show effects of COVID-19, according to Verisk and the APCIA Boston, MA (Oct. 27, 2020) – Net income for the private U.S. property/casualty insurance industry dropped 26% in the first half of 2020, as the effects of COVID-19 began to hurt insurer underwriting results and investment gains, according to Verisk, a leading data analytics provider, and the American Property Casualty Insurance Association (APCIA). Net income after taxes fell to $24.3 billion in first-half 2020 from $32.8 billion in first-half 2019. Contributing to that drop was $1.4 billion in realized capital losses on investment in first-half 2020, a swing from $4.3 billion in realized capital gains a year earlier. Net underwriting gains declined to $4.6 billion in first-half 2020 from $5.4 billion a year earlier. Net written premiums grew 2.8% in first-half 2020, above the 1.0 percent a year earlier, but significantly below the 6.2% premium growth rate in first-quarter 2020. Beginning in the middle of March, the COVID-19 crisis led to large-scale disruptions of daily life and economic activities, affecting insurance premiums. For some commercial policies where the premium is determined by sales, payroll, or other activity-sensitive measures of exposure, economic events directly led to lower...

Guelph, ON (Nov. 2, 2020) – The Co-operators is pleased to announce it has purchased Linda Rioux Assurances, headquartered in Warwick, Quebec. “This is exciting news as we remain focused on strengthening our agency distribution system in Quebec,” says Patrick Décarie, Quebec region VP,  The Co-operators. “We look forward to serving our new clients and ensuring they have access to the insurance and investment products they need to achieve financial security, and ultimately, peace of mind.” The brokerage’s portfolio includes home, auto, farm and commercial insurance policies. Any existing insurance coverage will remain in effect for the current policy term. Clients will receive first-rate service from a leading national insurance co-operative and gain access to a full suite of insurance products including home, auto, life, travel and commercial. About The Co-operators The Co-operators Group Limited is a Canadian co-operative with more than $53.3 billion in assets under administration. Through its group of companies, it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products. The Co-operators is well known for its community involvement and its commitment to sustainability. The Co-operators is ranked as a Corporate Knights’ Best 50 Corporate Citizen in Canada and listed among the Best Employers in...

Alberta-based commercial & personal insurance firm Hub’s latest acquisition Chicago, IL (Nov. 4, 2020) – Hub International Limited (Hub), a leading global insurance brokerage, is pleased to announce that it has acquired Stalco Insurance Ltd. (Stalco Insurance). Terms of the transaction were not disclosed. With locations in Wainwright, Provost and Kitscoty, Alberta, Canada, Stalco Insurance is a family-owned insurance firm providing commercial and personal insurance. Stalco Insurance focuses on various industries, including agribusiness, which supports Hub’s Specialty practices by complementing and strengthening its existing capabilities. Adam Doyle, COO of Stalco Insurance, will join Hub International Canada West (Hub Canada West) and report to Sarah Cameron, Vice President of Operations for the region. About Hub’s M&A Activities Hub International Limited is committed to growing organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise. For more information on the Hub M&A experience, visit WeAreHub.com. About Hub International Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 12,000 employees in offices located throughout North America, Hub’s vast network of specialists provides peace of...

Lauren Bailey | November 4, 2020 On the heels of winning re-election in British Columbia, the New Democratic Party’s work is just beginning, particularly in delivering on its promise to extend pensions and benefits to precarious workers across the province. In its re-election platform, the party pledged to develop a government-backed, collective benefit fund for independent contractors, self-employed and part-time workers, as well as to expand access to a voluntary pooled capital pension plan for workers currently without coverage. The coronavirus pandemic revealed how many of Canada’s precarious workers are also essential workers and how important their work is to the stability of the nation and maintaining some degree of normalcy, says Armine Yalnizyan, economist and Atkinson fellow on the Future of Workers. Read: 81% of gig workers uncertain, worried about retirement: survey Although some people in precarious roles are now considered essential workers, they’re also essentially disposable at some level, she says, so the pandemic has consequently shown the need for better protections for precarious workers. “Having a response to how we deal with this type of work and provide certain protections that any other type of worker can enjoy should be on the front burner of every government. It is certainly not just...

Mirroring the conclusions of a recent analysis by the Geneva Association, a new report from the Canadian Institute of Actuaries (CIA) suggests that the COVID-19 pandemic is having a limited impact on the life insurance industry – at least for now. In a newly published report, the CIA analysed monthly claims data collected from Canadian life insurance companies including Canada Life, Sun Life, Manulife, Industrial Alliance, and nine others. All 13 companies submitted data on individual life insurance; 11 of them submitted data for both individual and group insurance. The data covered the period from January 2019 up to June 2020. The preliminary analysis, which looked at aggregate levels of life insurance claims and claims related to COVID-19, suggested that overall, claims by count following the onset of the outbreak were within the range of normal volatility, as were the aggregate claims by amount. “Even though there’s been some increase in claims in April and May 2020, they’re not significant enough amount to raise red flags or concerns for the health of the insurance industry,” said Keith Walter, chair of the CIA’s Research Council. “They’re certainly within volatility levels that are tolerable for the industry overall.” When the data collection...

Following moves from other providers, Canadian travel insurance provider TuGo has announced that it is offering COVID-19 Insurance coverage for Canadians planning to fly abroad during the pandemic. “While we recommend following the Government of Canada’s Level 3 travel advisory, TuGo also recognizes that family, business or other reasons may require some Canadians to travel abroad during the pandemic,” said TuGo Chief Customer Officer Brad Dance, who is also formerly the president of the Travel Health Insurance Association. The new product includes provisions for COVID-19 emergency medical care and quarantine expenses for up to $500,000, in cases where the policyholder tests positive for and is diagnosed with COVID-19 while on their trip. In situations where a Level 3 “avoid non-essential travel” advisory escalates to a Level 4 “avoid all travel” alert, TuGo’s COVID-19 insurance also offers a Trip Interruption benefit should the traveller opt to return home ahead of time. “For those planning to travel, they should take time to research the various COVID-19 insurance options that have come to market in recent weeks, to ensure they best fit their needs,” Dance said. Read the original article at https://www.lifehealthpro.ca/rss/

Staff | November 3, 2020 The Equitable Life Insurance Co. of Canada is enhancing its online enrolment tool for group benefits plan members. New employees will now be able to directly enter their enrolment information and designate a beneficiary, while users will also be reminded before the enrolment period expires, according to a press release. The tool was originally launched in 2019 for new groups. Read: Equitable Life introduces online benefits enrolment “Enrolling a new plan member in the benefits plan can be overwhelming — for both the plan administrator and the employee,” said Maureen Long, assistant vice-president of group claims and administration at Equitable Life, in the release. “It’s challenging to ensure plan members complete the necessary paperwork before the enrolment deadline and time consuming to manually load new members. For plan administrators, the days of chasing plan members for their paper enrolment forms are gone.” Read the full article at BenefitsCanada.com

Staff | November 3, 2020 With so many Canadian employees working from home due to the coronavirus pandemic, the Canada Revenue Agency is adding home office furniture to the list of expenses employers can reimburse tax-free. Usually, the CRA only allows employers to reimburse up to $500 of personal computer equipment so that an employee can carry out their employment duties at home, without an employee receiving a taxable benefit. But this isn’t a usual year. Read: Google to pay work-from-home allowance to all global employees “The CRA recognizes the COVID-19 pandemic has resulted in many employees having to work from home, where they may not have the necessary computer or home office equipment to perform their employment duties,” said CRA spokesperson Etienne Biram in a statement emailed to Benefits Canada.  “The [agency] decided to extend this position to include home office equipment such as desks and chairs. However, it is important to note that the $500 reimbursement amount is in respect of each employee rather than each piece of computer or office equipment purchased.” Read the full article at BenefitsCanada.com