Insurable Interest Canadian Insurance Blog

Telematics systems create ways for carriers to control claims exposures and increase engagement Boston, MA (Aug. 12, 2020) – The commercial vehicle insurance market has been facing strong headwinds for the last few years and is finding it increasingly difficult to manage risk while controlling costs and improving customer interactions. Carriers have looked to telematics systems as a partner in this fight for many years, but technology advancements have created new opportunities for carriers to leverage these systems throughout their commercial vehicle segments. As the commercial vehicle insurance market continues to evolve, can these solutions help the industry manage current risks and prepare for future changes? This report outlines key commercial insurance market trends and presents a telematics feature function roadmap. It discusses what lies ahead for the market and profiles 12 vendors: Amodo, Arity, Azuga, CMT, DriveQuant, IMS, OCTO, SpeedGauge, Telematicus, The Floow, Verisk, and Verizon Connect. This report’s analysis is based on 25 interviews of global telematics companies and other insurance industry executives and influencers conducted during Q1 and Q2 2020. This 56-page Impact Report contains eight figures and eight tables. Clients of Aite Group’s P&C Insurance service can download this report, the corresponding charts, and the Executive...

Strategic Underwriting Managers, Inc. is a leading Managing General Agent and expands One80’s footprint into the Canadian insurance market Boston, MA (Aug. 11, 2020) – One80 Intermediaries, a national wholesale broker, program manager, and insurance aggregator headquartered in Boston, is pleased to announce that it has acquired Strategic Underwriting Managers, Inc. (SUM), a Canada based Managing General Agent for property, casualty and other specialty insurance products. Dowling Hales served as an advisor to Strategic Underwriting Managers; terms of the deal were not disclosed. With offices in Toronto, Montreal, and Lachine QC, SUM works collaboratively with best-in-class insurers and reinsurers to design, underwrite and deliver market leading insurance products to brokers throughout Canada. “One80 has rapidly expanded throughout the United States and we look forward to establishing an international footprint with Strategic Underwriting Managers,” said Matthew F. Power, President of One80 Intermediaries. “SUM and One80 uphold a similar entrepreneurial culture and strategic long-term vision. With that we are confident that together, we will further support our brokers on both sides of the border.” SUM is empowered with broad, in-house binding authority on behalf of the world’s highest quality insurance carriers. This allows SUM to provide coverage to the most challenging insurance...

New York, NY (Aug. 9, 2020) – Marsh has released its Global Insurance Market Index for the second quarter of 2020. The increase, the largest since the index was launched in 2012, follows year-over-year average increases of 14% in the first quarter and 11% in the fourth quarter of 2019. As with the first quarter, average price increases were driven principally by increases in property insurance rates and financial and professional lines. Among other findings, the survey noted: Global property insurance was up 19% and global financial and professional lines were up 37%, while global casualty pricing was up 7% on average. Composite pricing in the second quarter increased in all geographic regions for the seventh consecutive quarter. The US (18%), UK (31%), Continental Europe (15%), and Pacific (31%) regions all had double-digit pricing increases. Pricing increases in these regions were largely driven by increases in property and directors and officers (D&O) coverages. Certain D&O markets saw large increases. For example, US public company D&O prices were up 59% on average, with more than 90% of clients experiencing an increase. In the UK, D&O pricing increases average over 100%. A similar situation exists in Australia, where a lack of competition has...

Staff | August 17, 2020 Active membership in Canadian registered pension plans topped 6.4 million in 2018, up about 85,000 members or 1.3 per cent from 2017, according to a new report by Statistics Canada. Female members reached another all-time high at 3.24 million, rising by 49,200, with 35,500 males joining plans, coming to 3.17 million in 2018. In addition, public sector plans saw an increase of about 65,000, with women making up more than twice as many new members as men. Public sector plan membership also accounted for more than half (52.9 per cent) of total registered pension plan members. Private sector plans grew in membership but not by as much, adding more than 15,000 men and just over 5,100 women. Read: 2020 Top 100 Pension Funds Report: How have Canada’s DB pensions changed over the last decade? The report noted 2018 saw a significant increase in overall registered pension plan membership, with a 0.4 per cent rise in the pension coverage rate — the proportion of all paid workers covered by a registered pension plan in the country, which sits at 37.5 per cent as of 2018. While this represents the largest rise in the coverage rate since 2009, it remains lower than the numbers seen in the 1970s through the 1990s, which were consistently above...

Staff | August 17, 2020 Manulife Financial Corp. is appointing Sarah Miller Wright as head of Canadian operations. Miller Wright’s role will be to continue Manulife Canada’s work to reimagine how it interacts with its customers across all channels, improve the customer experience and drive business effectiveness. Read: Manulife sending employees’ kids to virtual camp She joins the insurer from Shaw Communications Inc., where she held a series of senior leadership roles, most recently senior vice-president of digital, product and service delivery. She also previously worked in leadership roles at Virgin Mobile Canada Ltd. and BCE Inc. “Sarah is passionate about creating a high-performing culture through the development of strong talent,” said Manulife in a press release. Read the full article at BenefitsCanada.com

Staff  | August 17, 2020 Guardian Capital Group Ltd. is acquiring a 70 per cent interest in U.S.-based investment management firm Agincourt Capital Management. The acquisition, which is expected to add almost US$7 billion to Guardian’s assets under management, aims to further diversify the firm’s assets under management by geography and investment solutions. “We’re very pleased to partner with the Agincourt principals and to continue to grow our presence in the United States,” said George Mavroudis, president and chief executive officer at Guardian. “They have an excellent pedigree, time tested and proven over the more than 20 years they have been in business. It’s clear that our firms share many of the same cultural values and that adding a firm of this quality to Guardian’s group of companies supports our strategic intent. Read: Willis Towers Watson to acquire Canadian investment manager “The purpose and execution of this transaction has very strong parallels with Guardian’s acquisition of a majority interest in Salt Lake City, UT-based Alta Capital Management early in 2018. The success of that partnership and the same alignment we see in joining with Agincourt gives us confidence in advancing our U.S. strategy.” Patrick O’Hara, managing director of Agincourt, said the firm is excited...

Transamerica announced today that it is now offering a new funeral concierge benefit at no direct cost for qualifying life insurance policyholders. Transamerica developed this new benefit, the Concierge Planning Rider, to provide grieving beneficiaries valuable resources to help plan the funeral of the insured person. This new benefit provides access to a third-party service provider, Everest Funeral Package, LLC. Services include 24/7 access to an expert consultant who assists with planning the funeral and negotiating funeral expenses, as well as online tools for creating a will and other estate planning documents and an online secure location for storage of these documents. The rider is available at no direct cost to policyholders for qualifying Financial Foundation IUL (2017CSO) policies. “Transamerica is providing this service to help families through one of their most difficult times. This new benefit lifts some of the burden from grieving families. Expert help is available 24/7 to help plan the funeral and save money on funeral costs,” said Blake Bostwick, Chief Executive Officer of the Individual Solutions division at Transamerica. “We are always looking for ways to support our policyholders better. End of life discussions are difficult, and this new rider can help facilitate those conversations...

When it comes to life insurance, some buyers may prefer to buy term life, as paying less on premiums would give them more financial room to invest. Others may be advised to get permanent life insurance that allows them to “be their own bank,” or use other strategies that would supposedly make it the only investment they’ll need. But one middle-ground option may prove to be interesting and beneficial to consumers: return-of-premium term insurance. “You have life insurance coverage for some term (20 or 30 years) and if you survive that entire term, … you get all of your premiums back,” explained Derek Tharp, assistant professor of finance at the University of Southern Maine and founder of Conscious Capital, in a piece for the Wall Street Journal. Premiums for such policies, he added, tend to be higher than those for a comparable term-life insurance policy. While return-of-premium policies offer relief from the sting of potentially paying for a product you wind up not using, some say those premium payments still represent a lost opportunity. Even if the premiums are returned, critics argue, it’s still money that has missed out on years of compound interest. But Tharp countered that since the...

Berkshire Eagle, The (Pittsfield, MA) CORONAVIRUS NerdWallet The coronavirus pandemic continues to disrupt the U.S. economy as businesses big and small cut back, close and declare bankruptcy. Consequently, a reported 16.3 million Americans were unemployed in July, compared with just over 6 million the previous year, according to the Bureau of Labor Statistics. In addition to losing their paychecks, many Americans also have lost their workplace benefits like life insurance, which can offer peace of mind in the event of an unexpected death. If you find yourself without coverage due to unemployment, you might be wondering what your options are. The terms of your current or most recent policy, as well as your health, long-term financial plan and employment status, all play a part in deciding what to do next. Advertisement CONSIDER YOUR INSURANCE NEEDS Start by asking yourself why you want to continue or replace your coverage. In general, life insurance is only necessary if your death would place a financial burden on others. If you are the high-income earner or sole earner for a young family, you should assess your situation with a financial planner to make sure your family is protected during your unemployment, says Scott Holeman,...

Research An insured whose dependent children receive Social Security Survivor Benefits is fighting with Cigna over a potential application of an offset related to the dependent benefits. Is Cigna Seeking To Offset Disability Benefit by Social Security Survivor Benefit? Q&A – Applying for Benefits What does it take to get approved for disability insurance benefits?…