Insurable Interest Canadian Insurance Blog

Martha Porado | August 7, 2020 Cognitive bias exists in the very fabric of the business world and is a key element holding back its progress, according to Sudhir Roc-Sennett, head of thought leadership and environmental, social and governance for Vontobel Asset Management’s quality growth boutique. He says companies and the institutional investors analyzing their potential should be concerned with the myriad ways in which bias can hinder optimal outcomes. Bias can create scenarios whereby factors play into business processes where they aren’t relevant, says Roc-Sennett, referring to a study performed in 1952 with the Boston Symphony Orchestra, which was predominantly comprised of men at the time. Instead of the conductor selecting new members, the orchestra began holding blind auditions, which led to a significant increase in the number of women who were picked to join. The study was a landmark example of how factors that are totally irrelevant to a candidate’s abilities can lead to their being discounted. Read: Unconscious gender bias preventing women from leadership roles: survey Looking at hiring practices, Roc-Sennett points out it’s extremely rare for the people responsible for seeking out new talent to have taken any training where race or other potential points of bias are concerned. This blind spot can create a reality...

Jennifer Paterson | August 7, 2020 Canada could experience a 2.6-fold increase in visits to mental-health practitioners and up to a 20 per cent increase in antidepressant prescriptions due to the impacts of the coronavirus pandemic, according to a new report by Deloitte. The report explored the human and social impact of natural disasters and periods of economic hardship — such as the 2016 Fort McMurray, Alta. wildfires and the 1990 and 2008 recessions — and how these events have contributed to people’s mental health once the public-health and economic crises have subsided. In addition to several other social and economic factors, these past events led to increased incidences of mental-health issues. Indeed, stress from the pandemic’s lockdown combined with long-term unemployment are likely to cause heightened levels of mental-health distress among Canadian employees. Read: What is the role of benefits programs in supporting Fort McMurray victims? The Canadian and wider global economies are in the midst of the worst recession since the Great Depression, the report said, with the collapse in economic output and spike in unemployment swifter than ever before. Indeed, in both the 1990/91 and 2008/09 recessions, it took more than a decade for the long-term unemployment levels ratio to return...

Staff  | August 7, 2020 Digital benefits company myHSA and virtual health-care organization EQ Care are entering into an agreement to expand access to telemedicine. Through the agreement, EQ Care will be added to myHSA’s Benefits Bucket suite, so plan members can access on-demand health-care support by experienced medical professionals who have received in-depth training on the coronavirus. Read: Sun Life partnering with EQ Care to launch virtual medical evaluation service “We are pleased to offer EQ Care to members of our community, particularly because they have the experience and institutional knowledge to offer innovative solutions in a time of great need,” said Tim Kane, chief executive officer of myHSA, in a press release. “Partnering with a company that broke ground in the telemedicine sector in Canada is a logical step for myHSA as we continue building the benefits industry’s premiere digital marketplace.” Read the full article at BenefitsCanada.com

In response to a growing need borne out of the COVID-19 pandemic, Manitoba Blue Cross has augmented its offerings to members with a new digital service. Under a partnership with virtual health care provider EQ Care, members with individually purchased health coverage are now able to get free 24/7 digital access to a care manager, physicians, referrals to specialists, and more. “In this exceptional time, we want to give our members the best suite of tools available,” Brenda Slikker, interim president and CEO, Manitoba Blue Cross said in a statement. “By partnering with EQ Care to offer virtual health care services, we’re evolving to meet our members’ needs while also aligning with our mission to improve the health and well-being of Manitobans.” With a successful service-first approach, EQ Care has a record of health care experience that spans more than three decades. Aside from a remote-medicine model built upon a cornerstone of empathetic human interactions, the company is said to have a unique formula that leverages keen judgment from a multidisciplinary team of health care professionals empowered by a proprietary and secure technology platform for supportive and compassionate care. “Now, members who purchase our personal health coverage can quickly and...

Staff | August 6, 2020 The Ontario Teachers’ Pension Plan is taking part in a US$1.78-billion financing round for Epic Games Inc., a U.S. video game and software developer. In addition to Ontario Teachers’ and other asset managers’ contributions, Sony Corp. is contributing US$250 million to the financing round. The fresh financing brings Epic Games to a valuation of US$17.3 billion. Tim Sweeney, its current chief executive officer, will maintain control of the company. Read: How institutional investors can capture the return potential of 5G tech “Having the support of leaders in the financial community accelerates Epic’s efforts to build a new kind of digital ecosystem using real-time 3D technology, services that connect hundreds of millions of people and a digital storefront that offers a fair business model,” he said, in a press release. “We are delighted to have them as part of the Epic family.” Read the full article at BenefitsCanada.com

Staff  | August 6, 2020 North American institutional investors are catching up to other global regions in their interest in sustainable investing, according to a new survey by FTSE Russell. Nearly half (42 per cent) of North American asset owners surveyed before the coronavirus pandemic said they’re interested in sustainable investing, up from just 17 per cent in 2019. This remains a notable lag when compared to investors in Europe, the Middle East and Africa, with 81 per cent saying they’re interested this year, up from 73 per cent in 2019. Larger asset owners, managing US$10 billion or more, were more likely to express interest, with 80 per cent either already using sustainability factors in their investment strategy or evaluating doing so. However, 65 per cent of asset owners managing less than US$10 billion said the same. Read: BCI publishes ESG strategy More complex sustainable or environmental, social and governance strategies are gaining ground. Interest in sophisticated approaches like re-weighting based on sustainability or ESG factors grew among asset owners to 55 per cent in 2020, from 36 per cent in 2019, while basic strategies like negative screening became less popular, dropping to 48 per cent from 64 per cent. For specific asset classes,...

Staff  | August 6, 2020 The ongoing impact of the coronavirus pandemic, coupled with the increased awareness and societal response to anti-Black racism, is continuing to affect Canadians’ mental health, according to the latest mental-health index by Morneau Shepell Ltd. With a score of negative 10, a very slight improvement on negative 11 last month, the index measures the improvement or decline in mental health from the pre-2020 benchmark of 75. It also tracks sub-scores against the benchmark, measuring the risk of depression (negative 12.4), anxiety (negative 12.3), optimism (negative 11.4), work productivity (negative 11.1) and isolation (negative 11). While the sub-scores remain low, all areas have improved when compared to each previous month, noted a press release. Read: Canadians’ mental health remains low even as country reopens from coronavirus lockdown “July marks the fifth month since COVID-19 was declared a global pandemic and Canadians began experiencing a collective mental-health crisis,” said Stephen Liptrap, the organization’s president and chief executive officer, in the release. “While many businesses, amenities and public spaces have reopened and a slight sense of normalcy has started to emerge across the country, our [index] shows that improving mental well-being takes time. In addition to restarting the Canadian economy, it’s...

Prudential took another beating at the hands of historically low interest rates in the second quarter, and executives said they expect life insurance and annuity sales to drop further. But the insurer is continuing to shake up its product mix to find the right combination, Vice Chairman Rob Falzon said. “We’ve implemented pricing and product actions to simplify and de-risk our business mix, while protecting profitability,” he explained. For example, Prudential took “aggressive pricing actions” to “significantly reduce sales” of its High Daily Income variable annuity, and launched FlexGuard, a buffered annuity product in late May. The moves “support our product mix shift to less sensitive, less interest rate sensitive solutions,” Falzon said. In response to annuity losses, the insurer has “repriced almost our entire product line,” said Charlie Lowery, chairman and CEO, and is looking at alternative books of business that are more profitable. Overall, Prudential posted a net loss of $2.41 billion, compared with net income of $708 million a year earlier. The loss was mainly due to a decline in the value of its derivatives holdings due to tightening credit spreads. Suspended Sales On the life side, Prudential suspended sales of its single life guaranteed universal life...

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