Insurable Interest Canadian Insurance Blog

Leading-edge life risk modelling suite now available in Life Risk Navigator Boston, MA (July 20, 2020) – Verisk, a leading data analytics provider, today announced the release of Life Risk Navigator™, an innovative, cloud-based stochastic risk modeling platform that offers in-depth portfolio analytics which can enhance risk selection, quantify changes in mortality rate, improve hedging strategies, and drive better financial decision-making. The cutting-edge analytics provided by Life Risk Navigator are driven by Verisk’s Life Risk Models, a comprehensive set of probabilistic risk models that simulate mortality trends, causes of death, and excess mortality events at a granular level. “As the life insurance industry undergoes a digital transformation, the demand for modern analytics platforms has grown significantly,” said Maroun Mourad, president, global underwriting at Verisk. “Life Risk Navigator brings together a robust modeling suite and allows organizations to streamline their pricing, ERM, and portfolio optimization workflows into a single platform.” The web-based Life Risk Navigator was built to consider the workflows of life insurers, annuity providers, and reinsurers. It enables insights across a full probability distribution of risk, capturing uncertainty and offering insight into correlations between policies and portfolios. This full range of tail risk metrics enables portfolio benchmarking, optimization, and...

By Greta Albright As financial professionals continue to navigate underwriting changes in today’s pandemic environment and anxiously await the possibility of releasing some of the temporary restrictions placed on life insurance underwriting, life insurance underwriters are continually asked, “How can foreign nationals and foreign residents obtain life insurance?” We know that during this time, due to special pandemic rules and restrictions, life insurance for those who travel abroad or live abroad is often difficult, or impossible, to obtain. While we continue to navigate the challenging world of foreign national and foreign resident underwriting, we must remember that we also have a separate group of prospects who we see quite frequently in underwriting – those who have temporary or immigrant visas. Do some of the recent headlines indicating that visa holders will be pushed out of the U.S. give us the entire picture of the present situation for visa holders and applicants? Will our pool of clients suddenly diminish, or worse, be removed from consideration due to the new temporary order or the implied threat of deportation? Based on a review of the executive order recently signed by President Donald Trump banning work visa holder entry to the U.S., as a...

Staff | July 27, 2020 British Columbia’s ministry of labour is introducing a new online portal to help the government process applications for temporary layoff extensions more quickly. In late June, the province extended the time period for temporary layoffs related to the coronavirus pandemic to a maximum of 24 weeks — up from 16 previously — expiring Aug. 30, following calls from opposition parties and businesses, which said many small organizations could go out of business if suddenly forced to pay out severance. Employers wishing to extend their layoffs beyond the end of August must apply to the government’s employment standards branch for permission for a so-called variance of employment standards legislation. The online portal, launched last week, aims to expedite those applications. Employers must first obtain support from more than 50 per cent of their employees and document the consent in their applications, which are due by Aug. 25 to ensure they’re processed before Aug. 30. Read: Ontario amending employment standards to make temporary layoffs part of new emergency leave “Government recommends that employers submit their variance applications early to avoid the potential of permanent staff layoffs and compensation for length of service to eligible workers upon the expiry of the COVID-19 emergency layoff period,” said the ministry in a press release. The portal also aims to...

Chubb has integrated its North America Accident and Health (A&H) businesses in a bid to better address the needs of middle-market and large corporate clients. “This integration of our A&H businesses reinforces our commitment to the marketplace, where we see tremendous opportunities to further serve our partners and clients,” said Marr Merna, senior vice president, Chubb Group and division president, Chubb North America Major Accounts. “This new structure will provide our distribution partners and clients with greater resources and better access to products and services that are designed to meet the unique challenges of workplace and travel risk for individuals, employees, as well as a variety of organizational entities,” Merna added. In connection with the integration, Chubb has announced an expanded role for Chris Martin from president of Chubb Workplace Benefits to division president of Chubb North America Accident and Health. In his new position, Martin will have overall operating responsibilities for the North American A&H insurance businesses, as well as oversee areas such as the division’s strategy, profit and business development, and underwriting operations. Aside from reporting to Merna, Martin will have a matrixed reporting line to Joe Vazquez, senior vice president, Chubb Group and head of the company’s...

State insurance regulators found little agreement Thursday on language to address proxy discrimination in artificial intelligence. The Innovation and Technology Task Force is the latest panel to work on the Principles for Artificial Intelligence document. The Artificial Intelligence Working Group voted unanimously to adopt the principles last month, including the phrase “AI users should proactively avoid proxy discrimination against protected classes.” The end goal is final adoption by the National Association of Insurance Commissioners’ Executive Committee, laying the groundwork for national AI standards for insurance. But sensitive issues around discrimination is making a consensus hard to reach. Iowa Insurance Commissioner Doug Ommen supports substituting language provided by North Dakota that would allow for different variables to be taken into account. He used the example of hypertension. While there is a proven link between hypertension and race, science also shows us other links, for example, between hypertension and smoking. “I expect there also is a correlation between race and premium,” Ommen said. “At the same time, that premium is not the causation of the disparities. … There are inequities in our society, which we need to carefully look at and examine, but at the same time, I think we need to...

Staff | July 24, 2020 Canadian defined benefit pension plans recovered some of their losses from the start of 2020 in the second quarter off the back of strong public equity gains, according to the Northern Trust Canada universe. With stimulus spending to tackle the economic impacts of the coronavirus pandemic taking effect in many countries, stock markets rebounded with double-digit gains for the second quarter. “Despite the level of volatility witnessed over the last several months, Canadian pension plans are tracking in a positive direction, with the median plan in the Northern Trust Canada universe generating a solid 9.9 per cent gain for the second quarter,” said Katie Pries, president and chief executive officer of Northern Trust Canada, in a press release.  Read: Canadian DB plans return negative 7.1% in first quarter “Although there still remains a heightened level of uncertainty in the current environment as the pandemic continues to run its course, plan sponsors continue to persevere as they navigate on a path to sustainability.” The gains made during the quarter represent a quick turnaround from the dismal losses seen by DB pensions during the first quarter of the year, when Northern Trust’s universe found plans posted a negative 7.1 per cent. The...

Staff  | July 24, 2020 Among Canadian expatriates who said their future plans have been affected by the coronavirus pandemic, 53 per cent said their health and well-being is now a greater priority, while 48 per cent cited family as the biggest priority, according to a new survey by Allianz Care. The survey, which polled expats living in Canada, France, Singapore, the U.K. and the United Arab Emirates, found 73 per cent also said the health and well-being of their family is now a crucial consideration in deciding whether to stay abroad or move back home. When it comes to the reasons for originally moving abroad, nearly half (46 per cent) of respondents said they moved abroad for personal development, while 40 per cent said they did so in search of a better work-life balance. Read: 75% of global workers feel employers are looking after their well-being during coronavirus Indeed, the pursuit of a good work-life balance was a key influencing factor for 70 per cent of expats in terms of deciding whether to stay abroad or move home. Among that group, 60 per cent said they have a better work-life balance living abroad than they did at home. That figure rose to 72...

Texas-based insurer Globe Life estimates $2 million in life insurance claims per 10,000 lives lost to the COVID-19 pandemic. Frank Svoboda, chief financial officer for Globe Life, revealed the projection Thursday during the company’s second-quarter earnings call. The insurer estimates $45 million of COVID-related life claims for 2020, nearly double its first-quarter projection. These additional claims are expected to cut Globe Life’s 2020 earnings per share by $0.33, Svoboda explained. “While we do expect higher COVID-related life claim payments over the course of the year, these higher claims are expected to be largely offset by higher premium collections and lower health claim payments,” Svoboda added. Globe Life is one of the first life insurance companies to report second-quarter earnings. The quarter offers the first glimpse at how well insurers are countering the financial impacts of the worldwide pandemic. Recent indications are favorable, with many insurers lifting age restrictions on life underwriting. Insurers entered 2020 with “very strong balance sheets,” said Doug Meyer, managing director and head of life insurance at Fitch Ratings, which is helping companies withstand the weakened economy and ultra-low interest rates. Advertisement In the big picture, companies were helped by the mostly strong liquidity throughout the pandemic,...

Staff | July 24, 2020 The Canada Pension Plan Investment Board is updating its policy on sustainable investing to reflect an increased conviction in the importance of environmental, social and governance risks and opportunities. “ESG considerations are inextricably linked to our ability to successfully achieve our investment objectives,” said Richard Manley, managing director and head of sustainable investing at the CPPIB, in a press release. “Our policy reflects the growing body of evidence showing that companies that integrate consideration of ESG-related business risks and opportunities are more likely to preserve and create long-term value.” Read: BCI publishes ESG strategy The updated policy outlined the CPPIB’s specific support for companies tailoring their reporting with the sustainability accounting standards board and the task force on climate-related financial disclosures. It also highlighted the importance of asset owners engaging with companies on issues of sustainability. “We believe active ownership through constructive engagement can enhance and sustain returns over time and significantly reduce investment risks,” said Manley. “As a supplier of patient, engaged and productive capital, we are able to work with companies to bring about change, helping them deliver enduring value-building growth.” Read: What’s keeping ESG rankings so convoluted? Read the full article at BenefitsCanada.com

Staff | July 24, 2020 Quebec has published new draft regulations aimed at helping the administrators of supplemental pension plans to navigate the coronavirus pandemic. The proposed regulations would allow plan members to maintain their active membership in a supplemental plan even if they’re experiencing a temporary suspension in accruing benefits, as long as that suspension began in 2020 and doesn’t last longer than 12 months from the date accrual stopped. As well, noted the regulations, the suspension would apply only to the accrual of benefits as of July 15, 2020, when the draft regulations were published. The measure would apply to all supplemental pension plans and simplified pension plans but not to voluntary retirement savings plans. Plan administrators can apply to Retraite Quebec to take advantage of the option but must also file an actuarial valuation that reflects the amendments. Read: An overview of Canadian DB pension relief measures during coronavirus The regulations would also eliminate the need for pension plans with funding levels under 90 per cent as of Dec. 31, 2019 to file an actuarial valuation as of Dec. 31, 2020. However, these plans would have to file an actuarial valuation by Dec. 31, 2021. The draft also includes other temporary relief measures previously announced by Retraite Quebec. Supplemental and...