Insurable Interest Canadian Insurance Blog

Staff | July 28, 2020 More than half (58 per cent) of working Canadians said they feel more concerned about their financial situation due to the coronavirus pandemic, according to a new survey by the Canadian Payroll Association. The survey, which polled more than 4,000 employed Canadians, found 54 per cent said their company is facing serious economic impacts from the pandemic. While respondents haven’t been laid off, a third expressed concern about their job security. The majority (77 per cent) said they’re working from home during the pandemic, but as workplaces reopen, one in five said these worries may prompt them to go into the office even if they’re coughing, sneezing or feeling ill. Read: Federal wage subsidy to be extended to December, says Trudeau The survey respondents also expressed concerns about macroeconomic issues, with 60 per cent saying they’re worried about the state of the Canadian economy and 55 per cent about Canada’s employment situation. Almost half (46 per cent) said they’re worried about the economy performing poorly. The Canadian Payroll Association said the survey’s findings challenge the assumption that working Canadians aren’t experiencing pandemic-related financial stress because they’re still receiving a paycheque. “The repercussions of the pandemic continue to threaten our country’s return to stability,” said...

Staff  | July 28, 2020 In a letter to the Canada Revenue Agency’s registered plans directorate, the Association of Canadian Pension Management said a new draft bulletin only covers a concern attached to smaller pension plans and shouldn’t apply to larger, employer-sponsored plans. The ACPM said it recognizes the agency’s efforts in providing guidance on apportioning assets and actuarial liabilities in actuarial valuation reports for the purpose of funding the defined benefit provisions of a registered pension plan that has more than one participating employer. However, it noted this concern is “only one that attaches to smaller pension plans wherein inappropriate tax deductions or movement of funds between employers or connected persons may arise.” As a result, the letter said the bulletin should be limited to just those plans, excluding trade- and union-based, multi-employer pension plans and jointly sponsored pension plans. Read: An update on MEPPS, JSPPs and PRPPs While the bulletin outlines different methods of apportioning assets and liabilities among participating employers, it doesn’t address the policy and administrative differences among single-employer pension plans, stated the letter. “When considering the administration of a SEPP in the context of a large group of related companies, it is often the case that one company may essentially act as...

Milford, CT (July 23, 2020) – Quadient, a leader in helping businesses create meaningful customer connections through digital and physical channels, has announced that Infosys, a global provider of next-generation digital services and consulting, has become a Platinum Business Partner in Quadient’s Partner Advantage Program. Infosys will leverage and supply Quadient solutions to provide businesses with the leading omni-channel Customer Communication Management (CCM) platform and the capability to meet complex communication needs, while being aligned to their customer experience strategy. Additionally, Infosys and Quadient will jointly develop innovative solutions in the customer experience management (CXM) space, making demonstrations available at Infosys technology and innovation hubs. Infosys has an established CCM Center of Excellence with multiple Quadient success stories, as well as partnerships with leading providers of enterprise software that integrate with Quadient. The partnership between Quadient and Infosys has grown from a successful ongoing relationship in Australia, where both organizations worked together to provide CXM solutions to a large insurance company. Shaji Mathew, executive vice president, Infosys, said, “We are excited to partner with Quadient as their managed services provider and a key partner in their customer experience transformation journey. We will leverage our expertise to develop solutions to transform...

LexisNexis Risk Solutions’ innovation eliminates need for UBI trial and monitoring periods, opens opportunities for more consumers and carriers to take advantage of the LexisNexis Telematics Exchange and expanding automaker relationships Atlanta, GA (July 24, 2020) – LexisNexis® Risk Solutions is pleased to announce it has launched LexisNexis® Telematics OnDemand, a solution that seamlessly integrates telematics-based driving behavior data into insurer rating and underwriting workflows. With consent previously provided, the solution enables U.S. auto insurers to access a consumer’s existing telematics data in near-real time at point of quote in order to more accurately determine a consumer’s driving behavior pattern. Telematics OnDemand allows carriers to offer more personalized pricing to the consumer with the potential opportunity for an immediate discount. It is also offered at renewal for consumers and insurers to continue to benefit from powerful insights provided by telematics-based driving behavior data. Telematics OnDemand delivers both a rich library of attributes and world-class telematics risk scores from LexisNexis Risk Solutions. This provides insurers the benefits of adopting telematics-based driving behavior data from the LexisNexis® Telematics Exchange, while still retaining the flexibility to innovate and deploy their own telematics risk scores and analytics strategies. Telematics OnDemand is also built with...

Staff | July 27, 2020 Canadian defined benefit plan sponsors are holding an almost equal amount of fixed income and equity in their portfolios, according to the Pension Investment Association of Canada’s 2019 asset mix report. The report found the PIAC’s membership reported a total of more than $2.2 trillion under management last year, up from just under $2.1 trillion in 2018. As well, defined benefit plan sponsors held just 0.25 per cent of their portfolios in cash as of Dec. 31, 2019, coming to more than $5.6 billion. This represents a significant drop from the end of 2018 when DB plans held 1.72 per cent of their portfolios in cash. Read: Why institutional investors should consider private infrastructure projects Overall, fixed income mandates made up 31.83 per cent of DB pension portfolios. Canadian universe bonds were the weightiest category at 8.45 per cent, followed by long-term bonds (7.34 per cent), global bonds (4.68 per cent), multi-strategy debt (3.01 per cent) and real return bonds (2.18 per cent). Other forms of debt were less represented, including emerging market debt (0.88 per cent), mortgages (0.78 per cent) and high yield credit (0.43 per cent). Public equity mandates made up a slightly higher overall proportion of portfolios at 32.23 per cent....

Addition of Selectpath and ProBenefits supports strategy of building out entrepreneurial benefits practice Toronto, ON (July 22, 2020) – Navacord Corp., one of Canada’s top commercial insurance brokerages and a leader in risk management services, is pleased to announce the addition of Ontario-based brokers Selectpath Benefits and Financial Inc. and ProBenefits Consulting Inc. The two deals strengthen Navacord’s position in the Canadian benefits space, which the company has set as a priority growth area. The addition of Selectpath and ProBenefits more than doubles Navacord’s benefits revenue, while adding considerable market share, capabilities, product and service options for clients. With a strong presence in Ontario’s southwestern region, Selectpath is one of the top five group benefits consulting firms in Canada. Their team of professional financial advisors, benefit and pension experts, and client care specialists build best-in-class solutions for the Hospital and Health Care sectors, as well as for Transportation, Automotive Dealership, Technology, and Advanced Manufacturing sectors, among others. “Selectpath deepens our leadership and expertise and expands on our multi-line approach with a broader scope of products and services,” says Shawn DeSantis, Navacord President and CEO. “The Selectpath team brings significant new capabilities in financial planning, Human Resources management, HRIS and payroll...

Gold Bars 1000 grams. Concept of wealth and reserve. Staff | July 27, 2020 CPPIB Credit Investments Inc., a wholly owned subsidiary of the Canada Pension Plan Investment Board, is selling 10 million shares in Battle North Gold Corp. The shares of the Canadian gold mine developer, formerly known as Rubicon Minerals Corp., sold for $1.85 per share for a total aggregate sale price of $18.5 million. Read: Caisse buying return royalty on gold at Quebec-based mine While the sale brings CPPIB Credit’s shares in Battle North to zero, the CPPIB continues to own 9,347 shares. In total, the CPPIB’s security holding percentage in the company is down from 10.45 per cent to less than 0.01 per cent. CPPIB Credit sold the shares for “investment reasons,” according to a press release. Read the full article at BenefitsCanada.com

Holistic solution improves the resiliency of businesses in an increasingly volatile world New York, NY (July 21, 2020) – QBE North America has announced a strategic partnership with Flyreel, Inc., a leading Artificial Intelligence (AI) platform for property insurance, to help customers manage risk and prevent loss through an AI-assisted tool. Allowing customers to conduct their home inspections at their convenience and on their terms, is the best and safest way for QBE to ensure customers get the right coverage tailored to their needs. This new service offers QBE customers access to effortless self-service property inspections. Utilizing the AI-assistant tool, customers can document interior and exterior data including property features, materials and more—all while identifying hazards and risks using advanced computer vision technology. This provides a streamlined inspection process without the need of a third-party inspector entering the customer’s home. “As an early adopter to digital transformation, QBE is helping customers to easily conduct home inspections and gain insights into managing risks,” said Fred Dabney, Vice President, Affiliated. “QBE believes strongly in empowering customers with the most advanced tools available to help them obtain the right coverage for their homes. This progressive approach will help our customers even more given...

Clear HOI platform streamlines verification for insurers and mortgage lenders alike New York, NY (July 21, 2020) – Nexsys Technologies, a FinTech company that provides a suite of essential tech solutions for mortgage origination and closing, has partnered with insurance company Lemonade to simplify the homeowners insurance verification process. Using Clear HOI, Nexsys users will be able to leverage a tool which digitizes the previously manual communication between mortgage lenders and homeowners insurance companies. In the past, verifying that homeowners insurance was in force for new mortgage transactions was an inefficient undertaking, with lenders contacting insurance carriers by phone to manually confirm. Clear HOI has modernized that process by creating a digital connection between insurers and mortgage lenders – removing unnecessary delays and eliminating potential errors. Now that Lemonade has joined the Clear HOI platform, mortgage lenders will be able to use the innovative tool with even more clients. “Home financing has been totally redesigned, transforming it from a pen-and-paper system to a completely digital experience for more and more lenders. As mortgage lenders are adapting to this new reality, they are realizing sticking points where technology can be injected to clear hurdles and improve the process. Clear HOI is...

Transaction provides significant premium to Majesco shareholders who are to receive $13.10 in cash per share Morristown, NJ (July 20, 2020) – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, is pleased to announce that it has signed a definitive agreement to be acquired by Thoma Bravo, L.P., a leading private equity firm focused on the software and technology-enabled services sectors, in a transaction valuing the company at $594 million. Following the closing of the transaction, Majesco will operate as a privately held company. Under the terms of the agreement, all Majesco shareholders of record will receive $13.10 in cash for each share of Majesco common stock upon closing of the transaction. The price represents a premium of approximately 74% over Majesco’s average closing price during the 30-trading day period ended July 17, 2020. The proposed merger is subject to the approval of Majesco shareholders and the approval of the shareholders of Majesco’s parent company, Majesco Limited. Majesco’s Board of Directors has unanimously approved the merger and recommends that shareholders approve the merger and Majesco Limited’s Board of Directors has unanimously approved the divestment of Majesco and recommended to its shareholder to approve the transaction....