Insurable Interest Canadian Insurance Blog

Staff | June 11, 2020 For institutional investors, the debate still rages over whether to divest from a company they find to have problematic practices where environmental, social and governance issues are concerned or to remain invested and engage with the company to try to push it in the desired direction. A new paper by smart beta platform provider Scientific Beta is suggesting there’s evidence that both strategies actually achieve the sought-after effect and can go hand in hand, rather than investors being required to choose just one option. There are several ways that divestment and engagement can mingle to strengthen the clout of an investor, the paper found. Collaborative engagement campaigns, where both current and potential shareholders come together to push a message to a company, demonstrate that an investor doesn’t need to be invested to express its views in a powerful and relevant way. As well, shareholders of a company have to maintain the possibility of divestment in order for their engagement to carry its full potential weight. Read: Head to head: Is carbon divestment becoming obligatory for pension plans? “A shareholder who engages with a company without signalling a willingness to draw a red line — by exit in case engagement fails — will enter the negotiation...

MetLife Inc. has agreed to pay $84 million to settle an eight-year-old class-action lawsuit filed by shareholders who claim the insurer underreported its liabilities via claims to deceased policyholders. Plaintiffs claim that MetLife failed to include data from the Social Security Administration’s “Death Master File” in tabulating its Incurred But Not Reported reserves. The SSA database includes all known deaths and is used by insurers to distribute benefits. By failing to include SSA death data, and associated pending payouts, plaintiffs claim MetLife presented an inaccurate financial picture during quarterly reports to shareholders. MetLife also failed to disclose regulatory investigations into its misuse of the SSA death database, plaintiffs allege in court documents. “Lead Plaintiff alleges that when the true facts concerning the nature, scope and financial impact of these alleged misrepresentations and omissions were revealed, the Company’s stock price declined and Members of the Classes suffered damages,” settlement documents say. MetLife admits to no wrongdoing in the settlement documents. “For Defendants, the principal reason for entering into the Settlement is to eliminate the uncertainty, risk, costs, and burdens inherent in any litigation, especially in complex cases such as this Litigation,” settlement documents say. “Defendants have concluded that further conduct of...

Staff | June 11, 2020 The Canadian Life and Health Insurance Association is appointing Jean-François Chalifoux, chief executive officer of SSQ Life Insurance Co. Inc., as the new chair of its board of directors. Chalifoux took on the top job at SSQ in 2015. Previously, he held several executive roles at Canadian insurance companies, including most recently at Desjardins Insurance, where he first headed up the group insurance department and then moved on to manage individual insurance. Chalifoux is a fellow of the Canadian Institute of Actuaries and the Casualty Actuarial Society. Read: Blue Cross, SSQ latest sponsors of digital mental-health program Read the full article at BenefitsCanada.com

Agtech leader digitally transforms insurance businesses by pairing field-centric data with intelligent automation and predictive analytics, cultivating new service-driven revenue streams Virden, MB (June 9, 2020) — Farmers Edge, a global leader in digital agriculture, today announced a wave of new insurance agency partnerships with 25 companies in the United States, spanning the Mid-Atlantic to the Pacific Northwest. Farmers Edge is steering the evolution of crop insurance by equipping each agency with access to a vertically integrated farm risk management platform—FarmCommand®—that digitizes core insurance services and creates a superior data-driven experience for growers and agents alike. FarmCommand includes a suite of digital tools to enhance data management for growers, giving them the option to share information with their agent to automate acreage reporting and claims. Powered by in-field sensors and artificial intelligence, the platform integrates all data into one place and transforms it into actionable insights. FarmCommand is equipped with severe weather forecasting, hail detection technology, highly accurate predictive crop models, digital scouting tools, Daily Satellite Imagery, and crop health change notifications, enabling users to optimize crop production and easily monitor an unlimited number of fields from anywhere. Additionally, the platform includes Smart Claim™ and Smart Reporting™, bridging the gap...

Slight increase in claim frequency offset by decline in average claim size from 2018 to 2019 Chicago, IL (June 11, 2020) – Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, is pleased to announce the release of the fifth edition of its U.S. Cyber Market Update. The annual report covers the cyber insurance industry’s 2019 performance, aiming to equip insurers that currently offer cyber, and those looking to offer it, with insights and performance benchmarks. The 2019 U.S. Cyber Insurance Profits and Performance report analyzes 192 U.S. insurers that reported direct cyber premiums to the National Association of Insurance Commissioners (NAIC) in 2019 – up from 184 insurers in 2018. Notably, U.S. cyber premiums grew to USD2.26 billion in 2019, an 11 percent increase from the year prior. Some 90 insurers wrote more than USD1 million and 41 wrote more than USD5 million. Overall, the top 10 cyber insurers accounted for 69 percent of direct written premium, slightly down from 70 percent last year. However, the insurance industry experienced the impact of the increase of ransomware attacks in 2019. Losses were spread across companies of all sizes, especially the small...

Virden, MB (June 11, 2020) — Andrew Agencies is pleased to announce its acquisition of Saskatoon Insurance Agencies, effective June 1, 2020. Saskatoon Insurance Agencies operates two locations in Saskatoon and has been serving the community with insurance services for over 50 years. The acquisition will boost Andrew Agencies to 20 branches across Western Canada, including nine in Saskatchewan. Elva and Peter Bennett, owners of Saskatoon Insurance Agencies, will be retiring. The current Saskatoon staff will remain and will be supported and complemented with existing product specialists from Andrew Agencies. “We are delighted to have Saskatoon Insurance Agencies join Andrew Agencies,” said Clint Smith, COO of Andrew Agencies. “Elva and Peter and their dedicated team share our values for integrity, excellence and professionalism. We look forward to serving Saskatoon and the broader community.” “It has been a pleasure serving our clients insurance needs for so many years,” said Peter Bennett. “We had wanted to retire with the comfort of knowing we had found just the right fit for both our clients and our team – and we have done that with Andrew Agencies.” About Andrew Agencies Ltd. Andrew Agencies Ltd. was established in 1913 as a general insurance and travel...

New solution provides insureds with a more convenient way to pay Toronto, ON (June 9, 2020) — APRIL Canada’s new direct billing solution leverages SNAP’s innovative technology to allow brokers to facilitate a cash-flow friendly, 11 equal payments option on every policy. Boosting the client-broker experience “We’re always looking for ways to bring greater value to the Insured” – says Kent Pitkin, National Director of APRIL Canada Insurance. “Partnering with SNAP has allowed us to offer multiple payment solutions to insureds and distinguish ourselves from others in an increasingly competitive marketplace”. APRIL’s new, convenient billing solution leverages SNAP’s technology to provide insureds with the option to pay for their premium in one full payment or monthly using either debit or credit card. This reduces the obligation for brokerages to collect the premium from clients themselves and frees up time for what mattes most; building long-lasting relationships with insureds. “APRIL sought a partner who could help provide greater value and options to the insured through a frictionless process for their brokers.” – says Sumeet Sharma, SVP of SNAP Premium Finance. “With our platform, their broker network can seamlessly integrate new, innovative features into their current workflow and offer even greater value...

Staff | June 11, 2020 Canada’s pension regulations have been designed to govern defined benefit plans and are a bad fit for target-benefit and multi-employer pension plans, according to a new report by the C.D. Howe Institute. The report, authored by Barry Gros, a retired actuary and chair of the University of British Columbia staff pension plan, argued that the regulation of these plans should reflect the pension promise they make to members, which is different than traditional DB plans. It said regulators should take a principles-based approach to financing standards that focuses on these plans’ long-term sustainability, rather than focusing on generic funding requirements. Principles-based regulations focus on targeted outcomes and are written with the objective of being simpler and easier to comply with, which Gros argued allows for innovation and for regulators to keep up with ongoing improvements to industry best practices. Read: An update on MEPPS, JSPPs and PRPPs “Because target-benefit plans and multi-employer pension plans are different than defined benefit plans, they need their own policy and pension standards that are focused on clear outcomes,” said Gros, in a press release. “Principles-based regulation allows plan sponsors to focus on the risks inherent in their plan rather than having to comply with generic rules...

Staff | June 11, 2020 The Alberta New Democratic Party’s labour and immigration critic is attempting to reverse the provincial government’s plan to transfer teachers’ pensions to the Alberta Investment Management Corp. Christina Gray, an NDP member of the legislative assembly for Edmonton-Mill Woods, introduced Bill 203, called the Pension Protection Act, on Monday. The legislation, if passed, would undo a portion of the United Conservative Party’s Bill 22, which mandated that the Alberta Teachers’ Retirement Fund transfer its assets to the AIMCo’s management. The omnibus bill, passed in November, also prevents any public sector plans from withdrawing from the AIMCo’s management. Gray’s bill would require a current or future government to consult with pension holders before making any changes to the plans’ administration. It would also prevent Alberta from withdrawing from the Canada Pension Plan, which the province is considering under its so-called Fair Deal panel. Read: Proposed Alberta Pension Plan has underwriting, political risks: report “The UCP, the party of the free market, is choosing to force all Albertan pensioners to use AIMCo rather than allowing them the opportunity to have competition within the market,” said Gray at a press conference. “They are creating a monopoly.” In the legislature, she said the government’s changes had “terrified tens of thousands of...

Business Wire MADISON, Wis.–(BUSINESS WIRE)– National Guardian Life Insurance Company (“NGL”) today announced an agreement to sell certain closed-block businesses to Prosperity Life Assurance Limited (“Prosperity Life”). The subject businesses have combined net statutory reserves of approximately $400 million and consist of life, annuity and A&H lines. “This transaction is a significant milestone for NGL in executing our strategic capital optimization plan and is aligned with our objective of continually improving our return on surplus and risk-based capital position,” said Knut A. Olson, NGL’s President & CEO. Proceeds from the sale will be utilized consistent with NGL’s strategic capital optimization program, including investing in our core preneed business and enhancing the services and products provided to our nationwide base of policyholders. “This reinsurance transaction with NGL launches Prosperity Life Assurance Limited as an emerging provider of customized and innovative reinsurance solutions to the life insurance and annuity industry,” said Nicholas von Moltke, CEO of Prosperity Life. “We are very proud to work with NGL as this transaction supports its desired capital management objectives.” The transaction is expected to close in mid-2020, subject to regulatory approval and the satisfaction of other closing conditions. Financial terms of the transaction were not disclosed....