Insurable Interest Canadian Insurance Blog

Staff  | August 5, 2020 While a majority (55 per cent) of North American employers said they expect most of their furloughed workers will return to work by the first quarter of 2021, just 16 per cent said they expect to rehire laid-off employees by then, according to a new survey by Willis Towers Watson. It also found respondents expect the proportion of their workforce who are full-time employees working from home (19 per cent) will be less than half of current levels (44 per cent) but nearly three times what it was last year (seven per cent). Despite the expectations of more employees working from home, many employers haven’t taken steps to address this shift. Just 19 per cent said they’ve changed policies to encourage more remote work, although 60 per cent said they’re planning or considering doing so. Only 20 per cent said they’ve provided tools and resources to employees who may work remotely long term, with 66 per cent saying they’re planning or considering doing so. And just 10 per cent said they’ve acted to offer employees subsidies to manage costs of working remotely, while nearly 29 per cent are planning or considering doing so. Read: Remote working, distributed workforces could be part...

Staff  | August 5, 2020 The federal government is seeking applicants for the positions of commissioner for employers and commissioner for workers in its Canada Employment Insurance Commission. The commissioners will be responsible for representing the views and positions of organizations and individuals that are clients of, or affected by, Employment and Social Development Canada’s programs and services, particularly the EI program, according to a press release. With the legislated mandate to monitor and assess the program annually, the CEIC has included representation from business, labour and the government for more than 75 years. Read: Could the pandemic prompt employment insurance reforms? “We look forward to receiving applications from diverse and qualified individuals for the Canada Employment Insurance Commission positions,” said Carla Qualtrough, minister of employment, workforce development and disability inclusion, in the release. “Our commissioners play an important role in overseeing the EI program and ensuring that the views of Canadian workers and employers are reflected in decisions regarding the EI program.” Interested individuals are encouraged to apply by Aug. 19, 2020, via the governor in council appointments website. Read: Feds loosening restrictions on EI as number of coronavirus cases rise Read the full article at BenefitsCanada.com

Kelsey Rolfe | August 5, 2020 The children of Manulife Financial Corp. employees can take a virtual visit to the International Space Station, create their own ice cream in a bag and design a toy boat during a virtual summer camp put on by the insurer. Camp Manulife is running for four weeks in late July and early August, with the goal of supporting employees and their families. More than 3,000 children are participating, about 70 per cent of whom are in Canada. “Recognizing that these are pretty unusual times and the whole family is impacted — not just our direct employee — we’ve been trying to think outside of the box for different things that we can do,” says Pamela Kimmet, chief human resources officer at Manulife. Read: Goldman Sachs using virtual programs to support workers, kids during coronavirus Camp Manulife was born out of a successful early-pandemic initiative that hosted lunchtime virtual sessions for employees and their families, where children were able to ask questions to an astronaut about outer space and health experts came on to discuss parents’ concerns. An employee group, focused on building resilience and optimism in the workforce during the pandemic, had the idea to turn the sessions into something bigger. “One of the things...

A years-long extension of low interest rates around the world is now a foregone conclusion, which will present challenges to life insurers for the foreseeable future, according to DBRS Morningstar. In a commentary released last week, the ratings firm acknowledged that life insurance companies are well-capitalized, but may face challenges to future earnings. It highlighted the substantial weighting to investment-grade fixed income that largely characterizes insurers’ investment portfolios, making it difficult for them to generate sufficient income given low interest rates. “Life insurers are particularly vulnerable to declining interest rates due to the long-term nature of the business,” Komal Rizvi, Vice President, Insurance, said in a statement. DBS expects the greatest impact for insurers with a high proportion of long-dated products featuring high guarantees. Lower-risk business areas such as group insurance may see more intense competition, it said, as well as the trend of insurers wading into non-insurance businesses. Considering the negative impact of persistently low interest rates, Rizvi said that the life insurance industry has taken measures such as calibrating the product mix and lowering the level of guarantees they offer. “In the future we may see insurers increase their debt levels as financing charges remain low, or invest...

With summer officially in full swing and lockdown restrictions easing, many Canadians may be considering going on a much-needed vacation outside their province. That would mean getting personal insurance coverage to supplement what their province covers – and when it comes to travel insurance right now, tourists have to ask a lot of questions. “The first thing anyone should do is speak with a travel insurance professional before they travel, and before they purchase a policy,” said Anne Marie Thomas, an expert at InsuranceHotline.com. “They want to make sure they’re buying what they need for their particular situation.” One prime example, according to Thomas, concerns people with pre-existing medical conditions. For such cases, she said insurers may not be willing to provide coverage without a period of stability, which can vary from carrier to carrier. While the average consumer might understand the principle, they might not appreciate how it’s implemented. “People need to understand what instability means to their insurance company,” she said. “Their travel insurance may exclude particular health situations for something as simple as a change in the dosage of their medication, or the addition of a new drug to their treatment regimen.” Canadians who choose to scale...

Staff | August 4, 2020 Consulting firm BenefitsConnect Inc. is purchasing Kingston, Ont.-based Strategic Benefits & Insurance Services Ltd. Through the acquisition, BenefitsConnect is seeking to enhance its service offerings to Kingston and the surrounding area. Read: Gallagher expands presence in Atlantic Canada with SBW Employee Benefits acquisition In a press release, Paul Crossdale, president of BenefitsConnect, praised the Strategic Benefits’ team, including its founder, Debra Dobing, for the company’s high standard of service. “We are glad to have them as part of our team at BenefitsConnect.” Read the full article at BenefitsCanada.com

Staff | August 4, 2020 Strong public market performance helped Canadian defined benefit pension plans reverse their first-quarter losses, according to a new report by BNY Mellon Asset Management Canada. The median second quarter return for the 84 Canadian corporate, public and university pension plans in BNY Mellon’s Canadian master trust universe was 9.23 per cent, up from the first quarter median return of negative 7.23 per cent. As of June 30, 2020, the one-year median return was 5.1 per cent and the median 10-year annualized return was 8.57 per cent. “Despite ongoing pandemic concerns, public markets rebounded with significant positive returns in the second quarter,” said Catherine Thrasher, head of strategic client solutions and global risk solutions for CIBC Mellon and BNY Mellon. “Canadian plan sponsors benefitted with positive performance results, led by equities from all regions.” Read: Canadian DB plans see upsurge in second quarter: report Within the BNY Mellon universe, U.S. equities led the pack with a return of 15.11 per cent, slightly underperforming the S&P 500 index’s return of 15.35 per cent. Canadian equities within the universe posted a median 14.11 per cent return, falling behind the S&P/TSX composite index return of 16.97 per cent. While non-Canadian equity reported a 13.5 per...

Staff | August 4, 2020 The Ontario Teachers’ Pension Plan and the New Zealand Superannuation Fund are each taking on a 50 per cent stake in New Zealand-based pathology business Asia Pacific Healthcare Group. Healthscope, a national private health-care provider in Australia, is selling the business in a deal valued at more than NZ$550 million, subject to customary approvals. Healthscope’s sale of the business is part of its strategy to realign its focus to Australian hospital operations. Read: Ontario Teachers’, partner acquire ownership stake in Australian water company “We are excited about the opportunity to invest in APHG alongside our partner the NZ Super Fund and working together with the company as it transitions to a stand-alone entity,” said Ben Chan, regional managing director for Asia Pacific at Ontario Teachers’, in a press release. “Ontario Teachers’ has an extensive track record of investing in leading health-care businesses including in the pathology sector and we look forward to putting this expertise to work to help support APHG’s next stage of growth while ensuring they continue delivering world-class pathology services to New Zealanders.” Read the full article at BenefitsCanada.com

The Canadian Press | July 31, 2020 Prime Minister Justin Trudeau says the government plans to move out-of-work Canadians into the employment insurance system and provide parallel support for millions set to exhaust emergency pandemic aid who don’t have EI to fall back on. The $80-billion Canada Emergency Response Benefit is set to wind down over the coming weeks, with those who are EI-eligible to start drawing assistance that way. Speaking on Friday morning, Trudeau said many people who don’t qualify for the program, such as gig or contract workers, will gain access to a transitional, parallel benefit that is similar to EI. It will also include access to training and the ability to work more hours without having as steep a clawback in benefit payments, he said, noting more details will be unveiled at a later date. Read: Coronavirus emergency response benefit doesn’t go far enough, say gig workers The most recent figures on the CERB showed that, as of July 26, the government had paid out $62.75 billion in benefits to 8.46 million unique applicants since its launch. About half those costs have gone to EI-eligible workers, leaving millions who don’t pay into EI unable to access the program once the emergency benefit ends....

Staff  | July 31, 2020 The Caisse de dépôt et placement du Québec is appointing Marc-André Blanchard as executive vice-president and head of CDPQ Global, effective Sept. 8, 2020. In the new role, Blanchard will have direct responsibility for the Caisse’s three main regional hubs outside of Canada: the United States/Latin America, Europe and Asia/Pacific. He will lead activities in the organization’s international offices and will be supported by Anita George, executive vice-president and deputy head of CDPQ global, whose expanded mandate will now cover all geographies. Read: Caisse appoints two executives to key functions “After building multidisciplinary teams in Asia, Latin America, the United States and Europe, and increasing our international exposure by over $140 billion in five years, moving toward a more integrated structure is the natural next step in our evolution,” said Charles Émond, president and chief executive officer at the Caisse. “Under Marc-André’s leadership, and with Anita’s support, this new structure will allow us to continue diversifying our portfolio and go to market with a cross-functional and global view, backed by strong leadership in Montreal and strengthened responsibilities in our key regional hubs and satellite offices. “With his experience in leading roles on the international stage, Marc-André is the ideal person...