Insurable Interest Canadian Insurance Blog

Staff | October 9, 2020 A third (33 per cent) of institutional investors that haven’t yet incorporated environmental, social and governance factors into their investment decisions said they’re considering it, according to a new survey by investment consulting firm Callan.  The annual survey, which polled 102 U.S. institutional investors this summer, found the percentage is the highest rate of ESG interest in the survey’s history and nearly three times the result from 2019. “We believe the move toward more ESG incorporation is consistent with the long-term investment approach of institutional investors,” said Tom Shingler, senior vice-president and chair of Callan’s ESG committee, in a press release. Read: Most Canadian institutional investors engaging in ESG issues: survey Indeed, 42 per cent of institutional investors said they already incorporate ESG factors into investment decisions, which mirrors the 2019 survey result but is nearly double the finding of 22 per cent from Callan’s first survey in 2013. Meanwhile, public plans have incorporated ESG factors into investment decisions at a slightly higher rate (36 per cent) than their corporate counterparts (32 per cent). For all investors, endowments remained the top ESG incorporator, with those surveyed increasing their adoption rate to 63 per cent in 2020, compared to 58 per cent in 2019....

PolicyMe, an online life insurance platform and advisor, has released a new survey suggesting that Canadians are being sold the wrong life insurance coverage. In an online poll of roughly 1,000 Canadians with life insurance, PolicyMe said 49% of Canadians that bought their policy through an advisor got a permanent policy. The results varied across age groups, with 40% of advised policyowners aged 18 to 34, 41% of those aged 35 to 54, and 62% of those aged 55 and above having a permanent policy. When asked whether they’re sure they made a good decision, 86% of policyowners with permanent life coverage expressed confidence that they had the right fit. But according to the co-founder and CEO of PolicyMe, there’s reason to question that confidence. “There’s an elephant in the room when it comes to life insurance,” says Andrew Ostro, Co-Founder & CEO of PolicyMe. “Many Canadians seem to believe they need permanent coverage, but the reality is that permanent life insurance is a very specialized product that only meets the needs of a very small percentage of the population — most people are sufficiently covered with the more flexible and affordable term life insurance.” PolicyMe cited a handful of...

Missing even a single paycheck can put a major dent in many families’ finances, and combining this with medical bills can be a double whammy. If you’ve suffered a disabling injury and are wondering when to file for long term disability insurance benefits, you’re not alone. Many disability insurance claimants may worry about either filing too soon or waiting…

Staff  | October 8, 2020 Morneau Shepell Ltd. is expanding into the growing telemedicine market to provide Canadian benefits plan members and their families with more convenient access to digital health-care services. Through its LifeWorks’ business, the company is launching a unified telemedicine service that will provide Canadians with quick access to medical practitioners such as doctors, nurse practitioners and other clinical professionals across the well-being spectrum. Read: Head to head: Is telemedicine the right route to employee health care? “Telemedicine will shape the future of health care through consumer-grade platforms that unify and simplify the end-to-end patient experience, marrying digital scale with human personalization,” said Neil King, president of LifeWorks and executive vice-president of Morneau Shepell, in a press release. “Today, millions of employees and their families turn first to Morneau Shepell for support on a wide range of well-being issues. We have a unique opportunity to support their needs with a new generation of unified telemedicine solutions. It’s a natural fit in our total well-being portfolio.” Accessed via the LifeWorks’ platform, the new service aims to provide faster access to care for patients, a simplified experience, access to multiple consultation approaches and integration into a continuum of care spanning multiple health-care modalities. Read the full article at BenefitsCanada.com

Staff  | October 8, 2020 While the Association of Canadian Pension Management is urging the Newfoundland and Labrador government to introduce legislative amendments to facilitate pension unlocking in cases of financial hardship, it also suggests this move should include plan sponsors. In response to the provincial government’s questionnaire on the topic, the ACPM recommended that locked-in retirement accounts, life income funds and locked-in retirement income funds be eligible for unlocking provisions. In addition, it said unlocking provisions be permitted in defined benefit pension plans, an option not included in the questionnaire, with the caveat that this shouldn’t be an unfettered right, suggesting “any unlocking should only be if the sponsors to such plan amend the plan to permit any unlocking.” Read: Sounding Board: Governments must ease burden on pension plans in era of coronavirus The association noted that unlocking under financial hardship is contrary to its general principle that funds remain locked in until pension plan members reach retirement age, but it also acknowledged the policy rationale for offering this exception. It also referred to other jurisdictions — British Columbia, Alberta, Ontario and Nova Scotia — which permit unlocking due to financial hardship. “Therefore, this change would provide harmony with other jurisdictions, which would be supported by...

Staff  | October 8, 2020 To recognize frontline, hourly employees for their service during the coronavirus pandemic,  Lowe’s Canada is paying a discretionary bonus to all eligible full-time, part-time and seasonal staff. Full-time hourly associates will receive $300, while part-time and seasonal associates will receive $150. The October bonus is in addition to the discretionary bonuses paid to all eligible hourly employees in March and August, as well as the special $2-an-hour wage premium paid on hours worked throughout the months of April, May, June and July. Read: Canadian employers planning to hold the line on pay raises in 2020: survey “Since March, our teams have worked tirelessly to meet the needs of our customers and communities, showing tremendous dedication and resilience along the way as we continue to face a situation that is changing the way we work and support one another,” said Tony Hurst, president of Lowe’s Canada, in a press release. “As we enter the second wave of the pandemic, we are pleased to award this discretionary bonus to thank our frontline associates for their continued commitment and hard work.” Read the full article at BenefitsCanada.com

Philadelphia Inquirer (PA) Oct. 8–Even for a hardworking nail salon operator, Lisa McElhone is doing well. At least on paper. She’s worth almost $800 million, or so she reported in a financial statement made public Wednesday. As McElhone herself wrote in an email attached to the 2020 statement: “This is impressive!!!” Her statement listed her $8 million jet, as well as a Porsche, a Bentley, a Mercedes, and a Chevy Tahoe, worth a total of $790,000. There were dozens of properties worth $59 million. Mostly, she reported owning a raft of businesses — most notably Par Funding, the small-business lender based in Old City that is the subject of a sweeping SEC fraud case. She says it’s worth $250 million. She also says she has stakes worth more than $300 million in Colorado marijuana growing and processing operations, Wyoming coal mines, and other private companies that Par funded. Advertisement McElhone, 41, was previously known about town as the owner of Lacquer Lounge, a hip nail salon that was the subject of local magazine profiles. But lately, she’s been getting less welcome attention as an owner of Par. In a civil lawsuit filed in July, the U.S. Securities and Exchange Commission...

Ontario-based P&C and employee benefits business Hub’s latest acquisition Chicago, IL (Oct. 8, 2020) – Hub International Limited (Hub), a leading global insurance brokerage, announced today that it has acquired the property and casualty and employee benefits businesses of Mumby Insurance Brokers Incorporated (Mumby Insurance). Terms of the transaction were not disclosed. Located in Waterloo, Ontario, Mumby Insurance has decades of expertise in working with professionals throughout Canada, with special focus on architects, landscape architects, engineers and specification writers. Douglas Pinnell, Vice President of Mumby Insurance, will join Hub International Ontario Limited (Hub Ontario) and report to Matt Lievers, President of Employee Benefits in the region. Anthea Mumby, President of Mumby Insurance, will remain directly involved in the business as a consultant and will report to Gerry De Lauro, President of Personal Insurance, Hub Ontario. 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...

Staff | October 8, 2020 Quebec is one step closer to allowing employers to introduce target-benefit pension plans.  On Wednesday, Eric Girard, Quebec’s minister of finance, tabled Bill 68, which was initially introduced in November 2019. The bill draws inspiration from a report by the expert panel on the future of the Quebec retirement system, which was published in 2013. “Quebec is taking an additional step to foster private savings, a cornerstone of our retirement income system,” he said, in a press release. “The bill will offer a new retirement plan option adapted to today’s conditions for the benefit of workers and employers.” Read: Quebec to introduce bill allowing target-benefit pension plans In Quebec, only certain companies in the pulp and paper sector are currently permitted to offer target-benefit plans to their employees. In 2016, Ottawa introduced Bill C-27 to allow the plan for employers under federal jurisdiction, but it was suspended.  The Quebec bill also proposes amendments to the Quebec Pension Plan to more broadly support parents who benefit from the supplement for disabled children requiring exceptional care during the period when they take care of their child. Read the full article at BenefitsCanada.com

Staff | October 8, 2020 More than two-thirds (67 per cent) of working Canadians said they’d use video chat, web or telephone-based health support to consult with a mental-health practitioner, up 17 percentage points since 2019, according to a new survey by RBC Insurance.  The survey, which polled 1,001 employed or recently laid-off Canadians in July, also found the percentage of working Canadians who said they’d use video or telephone counselling also rose significantly, up 15 percentage points to 60 per cent this year. While there was a rise in people open to using virtual tools to support their mental health, many of those surveyed said they were using free options, given the financial uncertainty caused by the ongoing coronavirus crisis. Read: Mental health firmly in the spotlight due to impacts of coronavirus, says report Almost half (46 per cent) of respondents said they were talking to friends or family, while an equal percentage said they were getting outside or going for a walk and 29 per cent said they were exercising, doing yoga or practicing meditation. In comparison, only three per cent said they were using paid options such as a meditation or wellness app. The majority (62 per cent) of survey respondents ranked their mental...