Insurable Interest Canadian Insurance Blog

Chicago, IL (June 2, 2020) – Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, is collaborating with The Climate Service to help clients understand and manage climate risks today and into the future. Financial regulators across the world, including in Canada, the European Union, Hong Kong, Japan, Singapore and the UK, are setting guidelines to manage the effects of climate change on financial stability and build on the work of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFD). This further compels businesses to measure and manage climate risk but often they do not have the tools to quantify the key parameters. The novel coronavirus (COVID-19) has tested the resilience of economies and is providing a good example of how systemic changes can impact financial, economic and social stability. To better prepare companies across all sectors for the impact on climate, Aon has entered into an exclusive broker relationship with The Climate Service (TCS) that combines science and technology to measure, monitor and manage the financial impacts of climate on business and investments. The combined service brings together complementary analytics with a climate focus and comprises: Scenario Analysis: Firstly,...

Staff | June 10, 2020 Global Montreal employees have overwhelmingly rejected a final offer from their employer Corus Entertainment to renew their collective agreement, over concerns around their pay, benefits and pension plan. According to a release from the Canadian Union of Public Employees, nearly 90 per cent of members from Local 4502 participated in the electronic vote, with 91 per cent of them voting to reject the offer. Anne Leclair, president of Local 4502, said the union plans to file a request for conciliation with the federal ministry of employment and social development in the coming days. Read: Saskatchewan NDP calling for binding mediation to end Unifor, Co-op pension dispute In its offer, Corus offered a four-year wage increase that would begin with a lump-sum payment in the first year, followed by a 1.5 per cent increase for each of the following three years. The CUPE asserted the increases would have been “funded largely by the employees themselves, agreeing to reductions in the pay structure” and were possibly below the inflation threshold. “The employees of Global Montreal are united in their determination, as demonstrated by the result of the vote,” said Leclair . “Their union negotiating committee has a solid mandate to protect...

Staff | June 10, 2020 While the majority of Canadian employees said they remain loyal to their employers, they’re divided when it comes to returning to the workplace, according to a new survey by ADP Canada Co. The survey found nearly a third (28 per cent) of respondents said their loyalty to their employer has increased because of their company’s response to the coronavirus pandemic. Interestingly, women were more likely (33 per cent) to cite increased loyalty toward their employer than men (23 per cent). Loyalty to employers also remained strong among unemployed Canadians, with nearly half (47 per cent) of those respondents who lost their jobs due to the coronavirus anticipating returning to work with their previous employers. Read: 41% of Canadian businesses have laid off staff due to coronavirus: Stats Can The survey also found tangible impacts on workplace operations. Employees said their workplaces have increased access to health and safety measures (74 per cent) and new technology (38 per cent), but nearly half (46 per cent) also reported seeing an increase in their workloads. In addition, more than half (51 per cent) said the coronavirus has negatively impacted company revenue and 36 per cent said it’s decreased the number of employees at their...

While consumers’ confidence in the economy has flagged over the past few months, their attitudes toward life insurance companies and financial professionals have surged to record levels. According to a new study from LIMRA, only 21% of Americans surveyed in May hold a favourable view of the economy, compared to the 25% reported in March and the January record of 56%, which represented the most bullish sentiment on the economy since LIMRA started tracking in 2008. Two thirds of consumers interviewed said that the U.S. economy is likely or extremely likely to fall into recession this year; the National Bureau of Economic Research has confirmed that the U.S. actually crossed that line in February. “LIMRA’s most recent consumer sentiment survey shows, while the level of concern has fallen from March, a considerable number of Americans are worried about the impact of this recession,” said Jennifer Douglas, research director, LIMRA Research Quality and Performance. Douglas noted that in spite of the 10-plus years of economic growth that the U.S. has achieved, many Americans face obstacles to their financial goals. Previous research suggests just 40% of Americans consider themselves on-track in terms of retirement savings, and many are worried about their mortgage...

Orion Travel Insurance, a CAA-owned company, has achieved a Canadian first by offering Virtual Emergency Medical Assistance for vacationers choosing to stay in their home province. “We felt it was important to add Virtual Emergency Medical Assistance to in-province travel, to help travellers preserve as much of their vacation as possible if faced with a medical emergency,” said Kellee Irwin, vice president, Orion Travel Insurance. Irwin noted that coronavirus-induced restrictions have highlighted gaps in the coverage available for in-province travel compared to international and inter-province travel. Already included as part of Orion’s emergency medical coverage for out-of-province and international travel, the company’s Virtual Emergency Medical Assistance is now also embedded into Multi-Trip Annual Plans and Multi-Trip Annual Vacation Package Plans for travellers within province. Under existing and new annual plans, travellers can benefit from up to four virtual visits through CAA Assistance provided by licensed doctors within Canada. Travellers with Orion’s Annual Travel Plan can use the new feature by contacting CAA Assistance, who will then triage the planholder’s situation and connect them with a Canadian doctor. “As COVID related restrictions begin to ease, we anticipate more people will be staying closer to home and choosing travel options within their...

Staff | June 9, 2020 Almost half of Canadians have now accessed a physician using virtual-care options and are highly satisfied with the results, according to a new survey by the Canadian Medical Association. The poll, conducted by Abacus Data between May 14 and 17, found those who’ve connected with their doctor virtually during the coronavirus pandemic reported a 91 per cent satisfaction rate — 17 points higher than in-person emergency room visits. Moving forward, almost half (46 per cent) of Canadians who had the opportunity to use virtual care since the pandemic outbreak said they’d prefer a virtual method as a first point of contact with their doctor. Read: How OPG is leveraging virtual care to improve health access “Physical distancing measures designed to keep Canadians safe during our fight against COVID-19 have led to the adoption of virtual care out of necessity,” said Dr. Sandy Buchman, president of the CMA, in a press release. “We need to build on this momentum. Canadians should be able to access health care in a timely and convenient fashion.” The survey also found half of Canadians believe virtual care could impact the cost of our health-care system, as well as improving access to specialists (45 per cent) and...

A new LIMRA study finds just 21% of Americans have a favorable view of the economy, down from 25% in March 2020 and falling to less than half of the 56% reported in January 2020. The January figure marked the highest consumer sentiment about the economy since LIMRA began tracking it in 2008. The study, conducted in May, shows 2 in 3 consumers believe the U.S. economy is likely or extremely likely to enter a recession this year (Note: The National Bureau of Economic Research announced yesterday that the U.S. economy entered a recession in February.) While concern about a recession has decreased and its perceived impact has lessened from March when there was so much uncertainty about the pandemic, a significant portion of consumers continue to have concerns about specific financial priorities. “Despite the 10-plus years of economic growth, many Americans struggle to achieve their financial goals,” said Jennifer Douglas, research director, LIMRA Research Quality and Performance. Prior LIMRA research indicates 40% of Americans believe they have enough saved for retirement and many express concerns about paying their mortgage and monthly bills. LIMRA’s most recent consumer sentiment survey shows, while the level of concern has fallen from March, a...

Martha Porado | June 9, 2020 When the coronavirus pushed equity markets off a cliff, Canadian defined benefit pension plans had to mobilize to address a number of concerns. The Canadian National Railway Co. pension recently shifted towards a more defensive investment strategy, said Marlene Puffer, president and chief executive officer for the CN investment division of the company, at a webinar hosted by the Association of Canadian Pension Management last week. As a highly mature plan, with about $18 billion under management, it pays out around $1 billion each year, she noted. “Being a corporate plan that’s federally regulated, solvency matters. So we were well positioned for this kind of situation. Obviously, we didn’t predict the pandemic, but we were concerned about equity valuations. And we were concerned about interest rates falling further, so we shifted our asset mix to have additional interest rate hedging in place. And we also had in place a sophisticated downside protection program related to the equity markets . . . and shock absorbers within almost every asset class that we have. And with that, we came through this period quite strongly.” Read: Where can pension funds find returns in a low interest rate environment? After making it through a...

Staff | June 9, 2020 Just half of Canadian employers said they’ve adopted a formal policy to clearly communicate their approach to disability benefits in the event of a conflict, according to a new survey by Aon. The survey, which was conducted before the coronavirus pandemic, asked Canadian employers about the disability benefits they’re offering to their employees and how those benefits are funded and administered. It found 52 per cent of respondents said they have a policy to address benefits during periods of disability. Looking at specific benefits, 95 per cent of survey respondents said they offer long-term disability benefits, 49 per cent offer short-term disability, 45 per cent offer salary continuance and 17 per cent offer weekly indemnity. Read: How will the coronavirus impact long-term disability claims? In addition, where employers offer LTD benefits, 51 per cent offer the same benefit to all employees, while 49 per cent offer a benefit that differs by employee group. For STD benefits, this breaks down into 46 per cent and 54 per cent, respectively. The survey also found 45 per cent of employers require employees to contribute to health and dental plans, with disabled members contributing at the same dollar amount as active employees. About...

Lipman also named Attorney-in-Fact for Lloyd’s Underwriters Toronto, ON (June 5, 2020) – Specialist (re)insurer Lloyd’s has appointed Marc Lipman the new president of Lloyd’s Canada, and Attorney-in-Fact (AIF) for Lloyd’s Underwriters. Marc assumes the role of AIF from Lisa Duval, who stepped in last year on an interim basis and now returns to Lloyd’s International Regulatory Affairs in London. Marc brings to Lloyd’s a wealth of industry experience and a deep understanding of the Canadian (re)insurance sector. Marc joins Lloyd’s from AIG Insurance Company of Canada, where he held a series of senior leadership roles over a span of more than 14 years.  Most recently Marc was Chief Operating Officer and acted as AIG Canada’s innovation officer, with responsibility for leading the company’s transformation efforts. He also previously served as Vice President, General Counsel & Secretary and as AIG’s Chief Legal & Regulatory Officer, working across their property, casualty, reinsurance, life, and mortgage insurance entities. In his new role, Marc will report to Hank Watkins, Regional Director & President of Lloyd’s, Americas. In addition to representing Lloyd’s before provincial and regulatory bodies, Marc will work closely with Lloyd’s distribution partners in Canada and London to facilitate the development of...