Insurable Interest Canadian Insurance Blog

Underwritten by Equisoft, this new research focuses on a specific window in the implementation of a modern policy administration system to understand the tipping point for project approval and how intangible costs and benefits are weighed in the decision-making process Montreal, QC (Sept. 16, 2020) – In a new report underwritten by Equisoft, global research firm Celent presents the findings of an interview series aiming to understand how life insurers reached the tipping point in making a decision to move forward with the investment in a modern policy administration system, from the recognition of the problem through the decision to move forward. The research was conducted with selected IT and business executives at large- and mid-sized North American companies offering individual life, annuities, preneed, as well as group and voluntary products. “Many insurers are at a precipice in their need for a new core system and it will be very difficult to remain competitive while using technology that is long unsupported, in languages no longer in use, run on a complicated and expensive mainframe, and supported by people nearing or past retirement age,” explained Keith Raymond, Senior Analyst, Life Insurance and Annuities, Americas at Celent. “Our primary goal with this...

By Kevin Butler, VP – Marketing & Strategy, Goose Digital — I’m often asked what the difference is between “audience” and “prospect.” While my answer might sound like I’m splitting hairs, the distinction between the two is critical. In my mind, the difference defines engagement, department ownership, and the primary methods by which each should be marketed to. As such, it’s a difference I take very seriously. Definitions So let’s jump into it. Here’s how I define each: Audience: A contact or contacts you seek to engage but haven’t yet. Your audience is typically comprised of target organizations or contacts that fit into your ideal customer profile. Prospect: A contact that has expressed interest in you (or your business); a contact you already have a level of engagement with, and one that has a degree of familiarity with what you have to offer. Going a step further, your Audience typically represents Demand Generation targets, people who are at the start of their journey with you, and are only just beginning to become familiar with your products or services. By contrast, Prospects are typically the result of Lead Generation tactics, specific contacts with a vested interest in what you have to...

Global breach data shows rise in social engineering scams New York, NY (Sept. 16, 2020) – Specialist insurer Beazley has reported that middle market organizations have been especially hard hit by online social engineering attacks during the pandemic. In the second quarter (Q2) of 2020, cybercriminals targeted businesses that remained open during lockdown where many employees were working remotely, making them more susceptible to cyber attacks. Of all the social engineering attacks reported to Beazley Breach Response (BBR) Services globally in Q2, 60% of organizations targeted were in the middle market (defined as over $35 million in annual revenue), up from 46% in Q1. Social engineering involving a system infiltration remained at a steady rate in the first half of the year. Fortunately, in more than 80% of reported incidents, the attack is stopped before a direct financial loss occurs. Kimberly Horn, Beazley’s global claims team lead for cyber & tech, said: “Middle market organizations have been resilient in maintaining their day-to-day operations during the pandemic and, in turn, their employees are more available to be targeted. Additionally, cybercriminals are executing more sophisticated attacks and middle market organizations provide richer targets. As our global breach data has demonstrated, if an...

PR Newswire World Alzheimer’s Day – As populations continue to age globally, life insurance companies and their customers have been increasingly affected by the rising numbers of Alzheimer’s disease. To prepare for future aging populations and how to best serve them, insurers are investing for the first time in digital assessment technologies that will enable policyholders to manage and track their cognitive health. An announcement today by Neurotrack, a digital health company, and Hannover Life Reassurance Company of America (Hannover Re US), a member of Hannover Re Group, the third largest reinsurance group in the world, signals how the industry is turning to digital technology to benefit insurers and policyholders by changing the future of aging. Neurotrack is announcing a partnership with Hannover Re US to offer Neurotrack’s clinically-validated cognitive health program to the life insurance market for use by their policyholders. The partnership between Neurotrack and Hannover Re US is the first of its kind in the United States, following Neurotrack’s successful rollout with Japanese life insurers SOMPO Himawari Life and Dai-ichi Life, which offer Neurotrack’s digital cognitive assessment to policyholders as part of their new dementia insurance offering. The announcement — coinciding with World Alzheimer’s Day — supports...

Staff | September 21, 2020 The Office of the Superintendent of Financial Institutions is launching a three-month consultation on risks and other considerations regarding technological advancements impacting Canada’s financial sector. Along with a discussion paper, the consultation’s objective is to ensure federally regulated financial institutions and pension plans have solid strategies to manage non-financial risks. According to the agency, while rapidly advancing technology and digitization have been helpful to Canadian financial institutions, their swift adoption can be risky if not properly managed and understood. The paper focuses on the key technological areas of cyber security, advanced analytics and the use of third-party services like cloud computing. Read: Balancing the risks and opportunities of AI “Digital technology continues to transform the financial sector,” said Ben Gully, assistant superintendent for the regulation sector at the OSFI, in a press release. “The pace of change has only increased since the pandemic began. This consultation will help OSFI to refine its regulatory and supervisory framework in a complex, rapidly changing digital world. The contributions received and the discussions that will occur will support effective risk management and enhance resilience in the Canadian financial sector.” The OSFI is welcoming comments and submissions on the discussion paper from industry stakeholders, academics and...

In the current COVID-19 reality, insurers who have been able to conduct business digitally, rather than through the traditional face-to-face, paper-based, and wet-signature methods are generally seen as ahead of the pack. But according to one industry veteran, companies must tread carefully when it comes to the underwriting process. In a commentary published in Contingencies, a publication by the American Academy of Actuaries, seasoned life insurance underwriter Hank George said that life insurers may want to favour slow, careful underwriting to ensure they’re protected from the impact of the pandemic, reported ThinkAdvisor. To expand the base of consumers who can quickly buy life insurance coverage online using automated underwriting, many members of the academy are working with life insurers to help minimize the traditional dependence on blood tests, urine tests, and attending physician statements. In an apparent effort to underscore this industry posture, the academy included a disclaimer under George’s article, which said the views it expresses “do not necessarily represent the official views of the American Academy of Actuaries.” Maintaining that “accelerated underwriting” or “simplified underwriting” may be an ill fit for the post-COVID-19 world, he said that high unemployment rates could give rise to or exacerbate mood disorders....

Staff | September 18, 2020 Presenteeism is the No. 1 issue for employers in terms of its negative impact on the workforce and the extent to which is can be improved with counselling through an employee assistance program, according to a new survey by Morneau Shepell Ltd. The survey, which covered insights from more than 35,000 employees gathered between 2010 and 2019, found 56 per cent of respondents had an issue in their lives that made it difficult to concentrate on their work; however, this fell to 28 per cent after counselling. More than a third (37 per cent) reported dissatisfaction with life overall, indicating a level of clinical distress, which fell to 16 per cent after counselling. Further, 32 per cent said they weren’t engaged in their work, falling to 23 per cent after counselling. And just under a quarter (22 per cent) reported feelings of dread when going to work, which fell to 13 per cent after counselling. Read: Head to head: Which is more disruptive: absenteeism or presenteeism? The survey’s findings were largely consistent across employee age, sex, region, industry, the issue causing presenteeism or absenteeism, the number of counselling sessions used and for how long. They were also similar regardless of whether...

Staff  | September 18, 2020 Over the past four years, total drug costs adjudicated by HBM+ have risen from about $1.2 billion to $1.5 billion, while the number of claimants has increased from 1.7 million to more than two million. The inaugural drug trends and strategic insights report by the health benefits manager, a division of Green Shield Canada, examined drug claims and utilization data for six partner insurers and third-party administrators. Aside from 2018 — the year the Ontario government introduced the OHIP+ program, which provided drug coverage for all Ontarians aged 25 or younger — overall drug costs have risen each year, with the trend ranging from four per cent to more than 14 per cent per year. Read: How will OHIP+ rollback affect plan sponsors? The report noted the OHIP+ program resulted in a substantial reduction in costs for private plans with a large component of plan members in the province. However, in 2019, Ontario reversed the program for those who had private coverage, effectively eliminating the previously gained savings. Between 2018 and 2019, the number of claimants younger than age 25 soared by 84 per cent, contributing to a more than seven per cent rise in the total number of claimants...

Staff  | September 18, 2020 The Canadian Institute of Actuaries has selected FTSE Russell to represent the provincial and investment-grade corporate bond spread to be used for the CIA’s new market-based commuted-value calculation. The calculation is used to determine how much to pay a member of a registered defined benefit pension who leaves the plan and elects to receive their pension entitlement as a lump-sum payment. Historically based on the yields of long-term Government of Canada bonds, it will now also reflect blended spreads of provincial and investment-grade corporate bond yields. “We gave it a great deal of thought and sought feedback from across the Canada actuarial and pension community when we decided to modernize our approach to commuted-value computation,” said Michel St-Germain, president of the Canadian Institute of Actuaries, in a press release. “And when we decided to go to a more market-based approach to the determination of commuted-value interest rates, FTSE Russell Canada was the natural choice. . . . We also appreciate that FTSE Russell Canada is making the relevant index values accessible on their website to all those who need this information.” Read: Changes coming for pension plan commuted-value standards The changes to the commuted-value standard, published by the CIA’s...

Hodgen Mainda is commissioner of insurance for Tennessee. Tennessee Insurance Commissioner Hodgen Mainda delivered a simple, eloquent message for his colleagues: “This is personal.” An African American, Mainda spoke passionately about what the insurance industry needs to contribute to the national movement toward a colorblind society. He addressed regulators Thursday during the initial meeting of the National Association of Insurance Commissioners’ Special Committee on Race and Insurance. “This is upholding the dignity and sanctity of human life,” said Mainda, a native of Nairobi, Kenya, who moved to Tennessee in 1997. “And that’s the way that we need to approach it. Put the politics aside. This is about human beings and being inclusive and being accepting of people for who they are.” The two-hour meeting, held virtually, established the committee’s five work streams and the co-chairs of each work group. They include: Research/analyze level of diversity and inclusion within and access to the insurance industry and insurance products. Make recommendations on action steps. Co-chairs: Hodgen Mainda and My Chi To, executive deputy superintendent of the Insurance Division, New York. Research/analyze level of diversity and inclusion within the NAIC and state insurance regulator community. Make recommendations on action steps. Co-chairs: Kentucky Insurance...