Insurable Interest Canadian Insurance Blog

With a rising acknowledgment of its impact on people and society, mental health has gone from being a taboo topic to a condition and disability that cannot be ignored. But even with this shift in perspective, there are still gaps and roadblocks that prevent Canadians from getting help when they need it. In a new survey of Canadians, RBC Insurance found that 51% of respondents view mental illness, such as depression or anxiety as a disability. But a deeper dive into the results revealed that respondents who have needed to take time off due to mental health issues were more likely to accept it as a disability. “We saw from the results as well that some still feel reluctant about admitting that they’ve had struggles with mental illness,” said Maria Winslow, head, Product Strategy and Management, Life * Health at RBC Insurance. “Fifty per cent of our respondents said that it was because they are a private person and they wouldn’t share any struggles that they were having, while 45% said it was because they were afraid that they were going to be treated differently.” While the results point to a tendency among sufferers to shut others out, Winslow said...

During the initial outbreak of the coronavirus pandemic, the life insurance industry was expected to be hit with increased death benefit claims as COVID-19 fatalities rise. But in the case of U.S. companies, actual payouts are turning out to be far less, leading many to revise their projections. “In the past few weeks, many life-insurance companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. Covid-19 fatalities,” reported the Wall Street Journal. Citing Credit Suisse stock analyst Andrew Kligerman, the Journal said that estimates have fallen by an average of 40% to 50%. One company, Principal Financial Group, estimated on March 30 that it would have to pay out US$20 million per 100,000 deaths, but has since changed that to US$10 million. Equitable initially projected payouts to fall within US$100 million to US$130 million per 100,000 deaths, but has shrunk it to US$30 million to US$60 million. Prudential Financial, meanwhile, has slashed its forecast from US$200 million to US$70 million. The rapid reduction in exposure estimates has been driven significantly by older Americans and minorities, two groups that are disproportionately impacted by COVID-19. According to the Journal, elderly Americans often have smaller policies than those...

Staff  | September 29, 2020 The Canada Pension Plan Investment Board has formally outlined its expectations for portfolio companies when it comes to environmental, social and governance issues in a new section of its latest annual report on sustainable investing. “To build trust with portfolio companies, we find it helpful to share our expectation of them with respect to considering ESG factors, as they exercise their fiduciary responsibilities to both preserve and grow shareholder value,” the report said. In particular, the CPPIB highlighted it expects companies have effective boards, align incentives, adhere to its proxy voting principles and guidelines, disclose material climate change impacts, clearly articulate how integrating ESG factors has informed strategy and enhanced returns or reduced risk and have a culture that proactively identifies emerging risks and opportunities and seeks solutions to reduce or capture their potential. Read: CPPIB sustainability report shows increased investments in renewable energy The CPPIB also noted it supports companies aligning their reporting with recommendations from the Sustainability Accounting Standards Board and the Financial Stability Board’s task force on climate-related financial disclosures. In addition, the sustainability report said the CPPIB more than doubled its investment in renewable energy companies to a total of $6.6 billion as...

New executive brief provides insights from conversations with members of Novarica’s community of high-performing insurance producers under the age of 40 Boston, MA (Sept. 22, 2020) – Forward-thinking insurers are ensuring that they understand the commonalities and differences of working with the next generation of independent agents. In a new executive brief, Young Agents: Building Partnerships and Understanding Tech Preferences, research and advisory firm Novarica provides insights from conversations with 23 young agents, conducted as part of Novarica’s profile series for members of 400 Under 40, a community of high-performing insurance producers under the age of 40. “Young agents are using technology to meet the evolving needs of their customers and establish their personal brands as risk advisors,” said Emerson Davis, Lead Associate and author of Novarica’s new report. “Insurers that can effectively accentuate the value of independent agents by providing additional transparency and quick responsiveness of underwriters will likely find themselves winning young agents’ business.” Click here for the table of contents or to access the report. Report Summary Young agents are using technology to meet the evolving needs of their customers. Insurers with an eye on the future are making sure they understand how the next generation of agents...

Globe and Mail‘s second annual ranking of Canada’s Top Growing Companies Welland, ON (Sept. 28, 2020) – Billyard Insurance Group is proud to announce it placed #63 on the 2020 Report on Business’ ranking of Canada’s Top Growing Companies. Canada’s Top Growing Companies ranks Canadian companies based on a three-year revenue growth. Billyard Insurance Group (BIG) earned its spot with a three-year revenue growth of 817%. Billyard Insurance Group is an Ontario insurance brokerage with a holistic approach to insurance offering home & auto insurance, commercial insurance, travel insurance, pet insurance, life insurance as well as financial planning services. At its inception in 1998, BIG originated as a local insurance brokerage in Welland, ON. With President Stephen Billyard and his team spearheading the way with strategic innovation, BIG has now expanded to 42 locations across Ontario. In the process, they have built a broker force of 425-strong and growing, including 80 support staff at their Head Office in Welland. The effectiveness of their growth strategy over the past few years has come from a strong focus on recruiting top talent and attracting brokers by providing industry leading training and support. While much of the insurance industry has moved to a...

Courtesy of LIMRA All over the world, consumers rely on life insurance to protect their families and provide financial security. As we highlight the importance of life insurance as we wrap up Life Insurance Awareness Month (LIAM) in the United States, here’s a look at how consumers around the globe think about life insurance. Compared to the U.S., consumers in the Asia Pacific region are far more likely to have life insurance coverage. According to a recent LIMRA study, three quarters of surveyed consumers in Hong Kong, India, Singapore, Taiwan and 7 in 10 consumers in China and Thailand say they own life insurance. However, the proportion of people who own life insurance falls below the percentage who believe they need life insurance. The study finds the primary reason for owning life insurance varies by country. For example, in South Korea, China, France and India the top reason for owning life insurance is to supplement their retirement income, whereas in Hong Kong, Japan, Malaysia, Singapore, Taiwan and Thailand, consumers are far more concerned about replacing the income of a wage earner. Advertisement In the U.S. and Brazil, consumers say they are most interested in using the benefit for final expenses...

Staff  | September 29, 2020 Three-quarters (74 per cent) of Canadians said they’d accept a slightly lower salary in exchange for a better — or any — pension plan, according to a new survey by the Healthcare of Ontario Pension Plan and Abacus Data. The survey, which was conducted online in May and June among 3,500 Canadians aged 18 or older, showed a slight drop from the 80 per cent of respondents who said the same thing last year. “This year’s findings reaffirm Canadians’ personal and societal concerns around retirement security,” said Steven McCormick, senior vice-president of plan operations at the HOOPP, in a press release. “Immediate public health and financial considerations stemming from COVID-19 have not changed Canadians’ commitment to pensions and their willingness to pay for them to ensure a better future for themselves and for everyone.” Read: 80% of Canadians would prefer pension improvements over salary increase: HOOPP In relation to the coronavirus pandemic, 57 per cent of respondents reported that their own financial situation has been harmed since March, while 62 per cent said they’re concerned about the value of their investments/savings as a result of the pandemic. In addition, more Canadians are concerned about their retirement security (55 per...

Staff  | September 29, 2020 More than a third (36 per cent) of Canadian organizations froze salaries in 2020, compared to a pre-coronavirus forecast of just two per cent, according to Morneau Shepell Ltd.’s annual salary projection survey. The trend is likely to hold true for the coming year, with almost half (46 per cent) of employers saying they’re uncertain about whether to increase or freeze salaries, while 13 per cent have already committed to doing so in 2021. For the first time since the 2008 financial crisis, the annual survey saw the national average base salary increase projection drop below two per cent, driven by the combined impact of salary freezes and economic instability due to the pandemic. Read: Employers using hiring, wage freezes to combat effects of coronavirus: survey In 2019, the average salary increase, including freezes, was 2.4 per cent year-over-year, a significantly higher number when compared to the actual base salary increase of 1.6 per cent in 2020. For 2021, survey respondents said they’re anticipating a slight recovery, with base salaries expected to increase by an average of 1.9 per cent, including salary freezes.  The survey also found that some provinces are expecting to be harder hit than others. In Alberta,...

PR Newswire Chubb announced that it has named Jeffrey Updyke Vice President, Chubb Group and Division President, Chubb Small Business. In this capacity, Mr. Updyke will have executive operating responsibility for Chubb’s retail insurance business that serves small commercial clients in the U.S. and Canada. He will oversee all facets of the business including strategy, product and business development, underwriting and service operations, and profit and loss performance. Mr. Updyke will report to John Lupica, Vice Chairman, Chubb Group and President of North America Insurance. “Over the last several years, we have made significant investments to deliver an exceptional offering for small businesses and their agents, including the introduction of an award-winning digital platform called Chubb Marketplace,” said Mr. Lupica.  “Small business will continue to be a strategic priority for Chubb and a critical part of our North America franchise.” “I am so pleased to have someone of Jeff’s caliber take on the responsibilities of leading this dynamic team of seasoned professionals that have paved the way for this fast-growing business,” he continued. “Jeff’s proven leadership and depth of experience in underwriting and understanding the needs of our distribution partners, particularly the importance of offering exceptional digital experiences, will be a...

New usage-based policy enables businesses to meet surge in demand Hamilton, Bermuda (Sept. 16, 2020) – AXA XL, in collaboration with the Centre for Risk Studies (“CCRS”) at Cambridge Judge Business School, has released a comprehensive report demonstrating the impact that (re)insurance has on the speed and quality of recovery following natural disasters. The report, titled “Optimizing Disaster Recovery: The Role of Insurance Capital in Improving Economic Resilience”, also outlines the growing economic impact of natural disasters over the past three to four decades. It notes that annual average loss from such catastrophes rose from an average of USD 27 billion in 1970-1980 to nearly USD 200 billion in 2010-2019, driven by global economic development and the increasing value of assets in hazardous areas, particularly in fast-growing regions such as Southeast Asia. Key findings of the report include: Each percentage point increase in insurance penetration (non-life premiums divided by a country’s GDP) reduces recovery times by almost 12 months. Events in countries with high insurance penetration (3% – 4% including in Western Europe, Japan, Australia, South Korea) have an average recovery rate of less than 12 months and events in countries with very low insurance penetration (Bangladesh, Haiti, Nepal, Philippines)...