Insurable Interest Canadian Insurance Blog

Kelsey Rolfe | May 27, 2020 Employers with registered supplemental unemployment benefit plans aren’t able to use them to top up laid-off employees who are receiving the Canada Emergency Response Benefit. In an online question and answer session on the CERB, the federal government confirmed that due to the “simplified design” of the benefit, the provisions existing under the employment insurance system that allow employers to top up workers’ EI benefits don’t apply to the CERB, which provides a flat $2,000 each month. Canadians who were laid off on or after March 15 and would have normally become eligible for EI were automatically moved over the CERB. “It has supplanted the EI system for the next several months,” says Stephanie Kalinowski, a partner at Hicks Morley Hamilton Stewart Storie LLP. “So because of that, the top-up becomes a problem. Had employees who were laid off been receiving EI as they would have in normal circumstances, the employers could have created SUB plans and had them registered with Service Canada and been able to offer some additional assistance to their employees.” Read: Feds adding $2,000 benefit for Canadians out of work due to coronavirus She says her firm had several employer clients who registered SUB plans with Service Canada in mid-March as...

If there’s one silver lining to take away from the current coronavirus pandemic, it could be the fact that more people than ever are asking important questions about their health, mortality, and financial security. And as new data from PolicyMe shows, that’s translated into an increased interest in life insurance — but not necessarily an increased need. After polling members of the Angus Reid Forum, the insurtech platform found that Canadians are thinking more about life insurance. Nearly one quarter of respondents who didn’t have coverage prior to the pandemic reported either purchasing it, or considering purchasing it, since the COVID-19 crisis began. Among those who said they just recently started thinking about getting life insurance coverage, two thirds (67%) said they were driven by COVID-19-related concerns. The top considerations relating to the pandemic were: An increased awareness of threats to life (36%); Reevaluating their financial situation amid the current economic climate (29%); Experience or threat of losing employment and, by extension, employer-provided life insurance (12%); Risk of getting sick with COVID-19 (8%); and Concerns about becoming ineligible for life insurance after getting COVID-19 (4%) According to Andrew Ostro, co-founder and CEO of PolicyMe, those concerns are driving real action....

Green Shield Canada (GSC) is wading into the world of genetics-based drug treatment with an investment in GenXys, a Canadian pharmacogenomics leader. Under the newly announced relationship, the two companies will collaborate on novel pharmacogenomics products to drive more informed pharmaceutical prescriptions, fewer adverse drug reactions, and better health outcomes for patients. The products are slated for release later this year. “We are excited to be working with the GSC team as we shape the next stages of the pharmacogenomics story,” said GenXys CEO Karl Pringle. “Our partnership opens the door to a wide range of new possibilities.” “GenXys stood out as a forward-thinking partner that shared our commitment to solving complex health challenges,” added David Willows, EVP, Digital, Innovation and Brand Experience at GSC. The investment in GenXys follows a study conducted by GSC and HBM+, GSC’s health benefit management solutions provider, which explored how pharmacogenomics influenced outcomes on over 200 outpatients diagnosed with depression, anxiety, and other major mental health conditions. Among the study’s results, which will be shared later this summer, is that patients receiving pharmacogenomics-guided treatment reported markedly greater improvements over a six-month period. That applied to a variety of clinical measures, including severity of depression...

Three industry organizations are partnering on a joint mortality experience study that will compare individual life mortality involving COVID-19 now and into the near future. LIMRA, the Society of Actuaries (SOA) and TAI are currently working on an inaugural report to release later this summer. “This study will help our members understand the effect of the COVID-19 pandemic on mortality, and identify the market segments that are most likely to see the greatest impact from the disease,” said Marianne Purushotham, corporate vice president and head of LIMRA Data Sciences and Center of Excellence in Analytics. “This data may also help our industry predict potential outcomes from future pandemics, enabling life insurers to conduct more effective scenario planning and preparations.” This experience study will make use of the individual life insurance data stored in the TAI Reinsurance Administration system, which includes over 90 percent of the top 50 life insurers in North America. Leveraging this data will help provide a faster and more consistent data collection process and will reduce the burden on insurers to find resources to compile data. “This joint research project will provide a deeper understanding of the current state of mortality in the individual life insurance industry,”...

Staff | May 26, 2020 Green Shield Canada is investing in Canadian pharmacogenetics company GenXys Health Care Systems. The two companies will be collaborating on new pharmacogenetic products, which are set to launch later this year, with a focus on driving more informed prescribing, fewer adverse drug reactions and better health outcomes for patients and plan members. “GSC has a long history of measuring the value of health benefits spending and we look forward to exploring the role of pharmacogenomics in maximizing patient health outcomes and advancing the specific value of drug spend,” said David Willows, the insurer’s executive vice-president of digital, innovations and brand experience, in a press release. Read: Does pharmacogenetic testing have a place in long-term disability programs? The investment comes on the heels of a study conducted by Green Shield Canada and HBM+ on the impact of pharmacogenetics on more than 200 outpatients who had been diagnosed with major mental-health conditions, including depression and anxiety. While the full study results will be shared later this summer, the press release noted one key finding stands out: those patients receiving pharmacogenetics-guided treatment reported significantly greater improvements over a six-month period across a range of clinical outcome measures, including severity of depression and...

Staff with files from The Canadian Press | May 26, 2020 Prime Minister Justin Trudeau has confirmed he’ll work with the provinces on creating 10 days of paid sick leave for all Canadians. “Nobody should have to choose between taking a day off work due to illness and having to pay their bills,” he said in his daily briefing on Monday. “That’s why the government will continue discussions with the provinces without delay on ensuring that, as we enter the recovery phase of the pandemic, every worker in Canada who needs it has access to 10 days of paid sick leave a year and we’ll also consider other mechanisms for the longer term to support workers with sick leave.” The promise was part of negotiations with the New Democratic Party to continue to waive the normal House of Commons sittings and instead continue to expand the special coronavirus committee that has acted as a stand-in since April. The Conservative party is advocating for a return to normal sittings, with no more than 50 members of parliament in the chambers at a time. Read: A refresher on Canada’s leave policies as coronavirus escalates “If the government does not deliver on paid sick leave for all Canadians and real...

Staff | May 26, 2020 Mercer is appointing Monika Freyman as Canadian head of responsible investment and David Fanger in the same role for the U.S. In the roles, Freyman and Fanger will lead the delivery of sustainable investment advisory and solutions services to institutional investors. “David and Monika each bring decades of institutional knowledge and passion for social and environmental progress, which will benefit our clients a great deal, especially during this current pandemic,” said Helga Birgden, partner and global business leader for Mercer’s responsible investment business, in a press release. Read: BMO Global Asset Management appoints new director of responsible investment Prior to joining Mercer, Freyman spent a decade at the Boston-based advocacy group Ceres Inc. as director of investor initiatives. Meanwhile, Fanger spent more than 10 years in various roles at Pacific Life Insurance Co., most recently as the founder and chief executive officer of its now-closed subsidiary Swell Investing.  In other personnel news, Slate Asset Management is promoting Katie Fasken to managing director of investment relations. In the new role, she’ll take the lead on the firm’s capital raising and investor relations operations. Fasken joined Slate in 2016, prior to which she worked on the investment banking team at CIBC World Markets. “Katie is a...

Staff | May 25, 2020 The Financial Services Regulatory Authority of Ontario has issued new guidance on transferring commuted values and purchasing annuities when a pension plan’s transfer ratio has declined since the most recently filed valuation report by 10 per cent and is now below 0.9. If the defined benefit plan’s transfer ratio is less than 1.0 the plan can only transfer the portion of the commuted value equal to the commuted value multiplied by the transfer ratio reported in the last filed valuation report. However, there are two exceptions: the administrator is satisfied that an amount equal to transfer deficiency has been remitted to the pension fund; or the aggregate of all transfer deficiencies for all transfers made since the effective date of the last filed valuation report is less than five per cent of plan assets. Read: Changes coming for pension plan commuted-value standards In addition, if the plan administrator “knows or ought to know” that, since the date of the most recently filed valuation report, events have taken place that led to the reduction in the transfer ratio to less than 0.9 when the transfer ratios was more than 1.0, or at least 10 per cent when the transfer ratio was...

Toronto, ON (May 22, 2020) – CSIO is pleased to announce that Yukon’s Superintendent of Insurance has recently approved the use of electronic proof of auto insurance (eSlips). This approval allows drivers in the territory to digitally store and present their eSlips when required, without having to carry the paper copy. Yukon joins the growing list of provinces and territories who have also approved the use of eSlips: Ontario, Alberta, Nova Scotia, Newfoundland & Labrador, Quebec and Northwest Territories. CSIO’s digital proof of auto insurance solution, My Proof of Insurance, was launched in early 2018 amid a growing industry demand for the development of digital tools that simplify and modernize the transmission of insurance documents, benefiting both brokers and consumers. Built with support and input from industry stakeholders, the solution allows insurance providers across Canada to send attachments and eSlips to personal and commercial customers through secure email, using a consistent look and feel, regardless of sender. Digital Solutions Amid Challenging Times With the current climate stressing social distancing, My Proof of Insurance ensures operations remain uninterrupted and customers receive documents and eSlips without the need for in-person meetings or paper mail. My Proof of Insurance allows drivers to store, display and share their...

New digital startups categorized by six types of value differentiation; insurers should understand the goals of a potential partner based on these types: Novarica Boston, MA (May 21, 2020) – As the number of digital insurance companies continues to increase, traditional insurers can turn competitive threats into partnership opportunities. In a new executive brief, Engaging with Startup Insurers, research and advisory firm Novarica reviews the six categories of digital InsureTech carriers and the impact/modernization to an incumbent insurer’s infrastructure necessary to partner with each successfully. “Insurers and reinsurers have an opportunity to partner with InsureTech carriers without making massive financial investments or spinning off their brands,” said Jeff Goldberg, Executive Vice President of Research and Consulting, and lead author of Novarica’s new report. “However, insurers should consider the real goals of such a partnership and how their infrastructure and processes will need to change to get the most out of the new business channel.” Click here for the table of contents or to access the report. Report Summary New digital insurers fall into six categories that present different opportunities and challenges for potential partners: As the number of digital insurance companies continues to increase, traditional insurers can turn competitive threats...