Insurable Interest Canadian Insurance Blog

Alberta-based independent P&C insurance agency Hub’s latest acquisition Chicago, IL (Sept. 2, 2020) – Hub International Limited (Hub), a leading global insurance brokerage, is pleased to announce that it has acquired Elevate Insurance Brokers (Elevate Insurance). Terms of the transaction were not disclosed. Based in Grande Prairie, Alberta, Canada, Elevate Insurance is a locally owned, independent insurance agency that provides property & casualty products, including home, auto, recreational vehicle and business insurance. Pierce Krol, President, and Otilja Majewski, Partner at Elevate Insurance, will join Hub International Insurance Brokers, a division of Hub International Canada West ULC (Hub Canada West), and report to Doug Lyall, Chief Sales Officer, Vice President of 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...

Customer growth and funding validate ProNavigator’s unique ability to increase productivity within insurance brokerages and carriers Toronto, ON (Sept. 2, 2030) – ProNavigator, an insurance technology (InsurTech) company that helps leading carriers and brokerages overcome information barriers, announced today that it has closed a CAD $5.6 million financing round. This latest round was co-led by new investor Luge Capital and existing investors GreenSky Capital and MaRS IAF, who were joined by iNovia Capital, BDC, and CIBC Innovation Banking, and brings the company’s total amount raised to CAD $7.8 million. The new capital will be used to hire key resources to power expanded operations in the U.S. and Canada, and to extend ProNavigator’s product line. This announcement comes on the heels of significant momentum for ProNavigator. Founded in 2016, the company’s solutions have been implemented by industry heavyweights HUB International, Wawanesa and TD Insurance to deliver superior customer service and to more effectively seize revenue opportunities, and earlier this year ProNavigator was the only Canadian company selected by the U.S.-based consortium of insurance players, BrokerTech Ventures, to deliver innovation into the U.S. insurance broker industry. “Information is the lifeblood of insurance, but too often it doesn’t flow fast enough to meet...

First fully digital employer-sponsored RESP helps employees advance long-term savings goals during COVID-19 Winnipeg, MB (Sept. 2, 2020) – The back-to-school season may look a little different this year thanks to COVID-19, but some things never change, like the need to save for children’s post-secondary education. Employers can show their support for working parents during this difficult time with Canada Life’s new self-directed registered education savings plan (RESP) employee benefit. Not only do employees gain access to traditional RESP advantages like applicable government education grants and tax-sheltered earnings on contributions, they also enjoy Canada Life’s low investment fees, convenient payroll deduction and ease of a fully digital experience. According to Statistics Canada, tuition for undergraduate programs for Canadian full-time students was, on average, $6,838 in 2018/2019, up 3.3% from the previous academic year.[1] More than half (57%) of students graduating from post-secondary studies in 2018 said they relied on financial support from parents, family or their spouse.[2] And about half reported having education-related debt, owing on average $28,000.[2] “Tuition and student debt are only going to go up,” says Ryan Weiss, Vice-President Product and Experience, Group Customer, Canada Life. “RESPs are without a doubt the best way to save for...

Staff | September 2, 2020 Nearly half (45 per cent) of working Canadians said they’d prefer to work remotely at least three days a week, while more than a quarter said they’d prefer to work flex hours, according to a new survey by ADP Canada Co. and research firm Maru/Blue. The survey, which polled more than 1,500 working Canadians, also found 55 per cent of respondents said their employers have continued to allow remote and flexible working throughout the coronavirus pandemic. While the findings show strong support for flexible and remote working options, 69 per cent of respondents said they aren’t willing to accept reduced compensation for the changes. In addition, only four per cent of respondents said they’d consider accepting reduced compensation to work reduced hours — for example, a four-day work week. About half (45 per cent) of respondents said they feel remote workers have equal opportunity for job promotion and career advancement. Read: Remote working, distributed workforces could be part of new normal post-coronavirus “It’s clear that employees want to choose how and when they work,” said Heather Haslam, vice-president of marketing at ADP Canada, in a press release. “Employers that embrace flexibility within their culture may improve employee engagement, retention and performance. However, flexible...

Staff  | September 2, 2020 Canada Life Assurance Co. is introducing a self-directed registered education savings plan to help employers support their employees’ varying financial priorities. Employers can add the RESP to their employee benefits plan at no addition cost, while plan members can choose either the family or individual plan, where they can contribute as much or as little as they want through payroll deduction, pre-authorized debit or online banking payment. Contributions are then placed into a fund designed to automatically lower the risk of potentially decreasing in value as students get closer to starting post-secondary education. Read: Just 6% of Canadians cite retirement saving as top financial priority in 2019: survey Employees are also prompted to access any applicable grants, including the Canada Education Savings Grant, which kicks in $1 for every $5 an employee contributes, or the Canada Learning Bond, which is aimed at low-income Canadians and provides a $500 initial grant to a maximum of $2,000, just for opening an RESP account. “Tuition and student debt are only going to go up,” said Ryan Weiss, the insurer’s vice-president of product and experience for group customer, in a press release. “RESPs are without a doubt the best way to save for education, but...

As the world continues to fight through the COVID-19 crisis, various thought leaders and policymakers have suggested that recovery efforts be taken as an opportunity to “build back better.” And according to the co-founder and CEO of Breathe Life, a software-as-a-service provider catering to the North American life insurance space, carriers have the chance to do just that. “We always say life insurance is sold not bought, yet the people who are selling don’t have the tools they need to sell in 2020,” Ian Jeffrey told Life and Health Professional. “When we talk about the different offerings that we’ve launched as a platform, we have this vision of a one stop e-commerce enterprise solution.” Under the gun to go digital Ever since it raised $4.5 million from investors early last year, the venture-backed technology firm has launched several modules to support the insurance sales process. In May 2019, it launched a direct-to-consumer (D-to-C) module for insurance carriers, which also offers the ability for agents to earn commissions for sales that come through landing pages they have set up; that August, it launched an advisor experience module that enables a unified experience and data model. This past April, the company announced...

Recently, the Supreme Court of Canada upheld federal legislation that prevents third parties from demanding genetic information from individuals. Those third parties include insurance companies, which effectiveky face prospective prosecution unless they take appropriate precautionary measures. In a recent article, Bernice Karn, Katie-May O’Donnell, and Gordon Goodman of legal firm Cassels explained that under the Genetic Non-Discrimination Act, it is a crime to force an individual to get genetic testing, as well as collect, use, or disclose results of genetic testing without the individual’s written consent. As defined in the act, a “genetic test” is one that “analyzes DNA, RNA or chromosomes for purposes such as the prediction of disease or vertical transmission risk, or monitoring, diagnosis or prognosis.” A breach of the act can result in a fine of up to $1 million, prison time of up to five years, or both. The authors said that insurance legislation in each jurisdiction of Canada requires prospective insureds to fully disclose facts material to the insurance, including medical history, when they apply to life insurance companies for coverage. If they don’t disclose the information, their contract could be rendered voidable by the insurer. “Following the Decision, the courts will now need...

Courtesy of LIMRA One thing that the COVID-19 pandemic has made clear is that life is fragile and a person’s financial situation can change very quickly. Yet, despite the fact that people generally recognize the value of life insurance, LIMRA research shows 46% of Americans are uninsured and many more do not have enough coverage. Before the pandemic, nearly 1 in 3 families said they would face financial challenges within a month if the primary wage earner died. Every September, the industry — led by Life Happens — comes together to sponsor Life Insurance Awareness Month (LIAM). This campaign is designed to educate consumers about the importance of life insurance. “LIMRA is proud to support LIAM and help raise consumer awareness about the vital role life insurance plays in protecting families’ financial security,” said Gina Birchall, chief operating officer, LL Global. “Our research shows life insurance ownership has declined over the past 10 years. Campaigns like LIAM help ensure consumers understand the value of life insurance and take steps to obtain the coverage they need.” Advertisement According to LIMRA’s July consumer sentiment study, life insurance owners are more likely than non-owners to worry about having adequate coverage (64% versus 51%)...

The life/annuity industry’s net income fell by 66% in the first half of 2020, compared with the year-ago period, A.M. Best reported today, driven by a major reinsurance agreement inked between Jackson National and Athene. This financial review is detailed in a new Best’s Special Report, titled, “First Look— Six-Month 2020 Life/Annuity Financial Results.” Although some life insurers provided COVID-19-related premium refunds to policyholders, the primary reason for the steep premium decline was Jackson National’s ceded coinsurance agreement with Athene Life Re, the report concluded. The deal had the effect of moving approximately $27 billion of premium out of the U.S. statutory industry population and into Bermuda. Total expenses for the industry increased 1.1%, as a 5% decline in surrender benefits, a 13.3% decline in general and other expenses and $11.6 billion less in transfers to separate accounts offset an 11.4% increase in death benefits. Advertisement In addition, the premium decline and minimal expense increase resulted in a drop in net operating gain of 95.3% from the prior-year period, to $1.6 billion. Despite the reduction in net income and a 50% decline in unrealized gains, capital and surplus increased by 4.1% to $440.8 billion over the six-month period. The data...

Staff  | September 1, 2020 The British Columbia Investment Management Corp. is investing in an Indian telecommunications tower company alongside Brookfield Infrastructure Partners and its institutional partners. The transaction totals an equity commitment of about US$3.4 billion, with the investors buying a 100 per cent stake in the company from Reliance Industrial Investments and Holdings Ltd., a wholly-owned subsidiary of Reliance Industries Ltd. “For BCI and our clients, this investment is well-aligned with our long-term strategy of investing in high quality companies and assets that fulfill essential needs of the communities in which they operate,” said Lincoln Webb, executive vice-president and global head of the BCI’s infrastructure and renewable resources program, in a press release. Read: Caisse investing in data centre operator, telecom infrastructure “Data services are increasingly critical to societies and economies in today’s world, promoting both opportunity for individuals and potential innovation for local communities. BCI is excited by the opportunity to invest in infrastructure that will play a vital role in enabling India’s continued economic growth.” The investment includes a portfolio of about 135,000 recently constructed communication towers throughout India, with about 40,000 more in the works. In other investment news, Greystar Real Estate Partners is joining the Canada Pension Plan Investment Board and Cyrela Brazil Realty in a joint...