Insurable Interest Canadian Insurance Blog

Staff | May 8, 2020 MindBeacon Group is partnering with the Ontario government to make its online mental-health service available free of charge for everyone in the province. Beacon is a digital platform that guides individuals through a personalized course of cognitive behavioural therapy. Users complete the therapy with a registered health professional providing one-to-one guidance through digital messaging to help them build coping and resiliency skills over the course of several weeks. Read: MindBeacon launches digital mental-health programs to help Canadians with coronavirus-related stress “In the best of times, our Beacon digital mental-health service helps overcome the barriers of stigma, affordability and accessibility,” said Sam Duboc, chair and chief executive officer of MindBeacon Group, in a press release. “The COVID-19 pandemic has further demonstrated how vital a role this service can play in supporting our health system, our economy and our people.” Read the full article at BenefitsCanada.com

Martha Porado | May 8, 2020 As earnings season ramps up, broad market consensus is seeking the middle way, suggesting the likelihood of a U-shaped recovery, as opposed to a roaring revamp or a genuine depression. “I think what the market consensus is expecting is reasonable,” says David Souccar, portfolio manager for international equities at Vontobel Asset Management’s quality growth boutique. But with a measured base-case scenario, shocks to market expectations about how, and how well, the economy will return to normal could still have a material impact on stocks, he says. Institutional investors are watching with gritted teeth after many saw negative first quarter portfolio returns following years of steady gains. Read: Canadian DB plans return negative 7.1% in first quarter “If the markets start to see that the opening of the economy, if the consumer is hesitating to come back and they start to agree that things could take longer than 2020, I think there could be more downside. If they find the consumer is coming back faster, the economy is opening up faster, and by the fourth quarter of 2020 we could be back to where we were in the fourth quarter of 2019 — there could be upside.” Sectors are...

Kelsey Rolfe | May 8, 2020 Half of Canadian employees said their mental health has been negatively impacted by the coronavirus pandemic, according to a new survey by Teladoc Health Inc. The survey, which polled more than 1,500 Canadian workers, found women (57 per cent) were more likely to report a harmful impact on their mental health than men (43 per cent). More than half (52 per cent) of respondents between the ages of 18 to 34 felt their mental health had taken a hit. In comparison, respondents over the age of 65 — notably those most at risk of the virus — experienced the lowest mental-health impact, with just 37 per cent saying their mental health had worsened. David Sides, chief operating officer at Teledoc, says the high number of people experiencing negative effects doesn’t come as a surprise. “The burden that’s been placed on everyone, [with] working at home, childcare, you might be homeschooling — I can see why that’s the case.” Read: Webinar: Coronavirus and workplace mental health The survey also found an increasing number of Canadians are open to remote mental health-care solutions. Two-thirds (62 per cent) of respondents said they’re open to using virtual mental-health care, compared to 40 per cent...

Manulife and Sun Life have announced divergent Q1 results as unfavourable market conditions and COVID-19-related challenges weigh on insurers globally. On Tuesday, Sun Life reported a 7.4% rise in underlying earnings to $770 million, or $1.31 a share. That topped an average estimate of $1.11 given by 14 analysts surveyed by Bloomberg. Most of the company’s earnings for the period came before business shutdowns that were enacted in March. It reported an increase in underlying profit propelled by higher investing activity n Canada and the U.S. as well as an earnings increase in Asia. Notably, the company reported a 27% jump in underlying profit in its Asia business, compared with 8% and 7% in the U.S. and Canada, respectively. In an interview with Reuters after the company’s earnings report, Sun Life CEO Dean Connor said Canada’s second-largest life insurer is “doing more in terms of insurance and wealth” in China, Hong Kong, and Vietnam, though ongoing lockdowns in Southeast Asia and India could set the stage for a difficult second quarter. A statement from the company said that mortality and morbidity claims stemming from COVID-19 have represented less than 5% of its monthly average for mortality and disability claims paid,...

Business Wire Company Highlights First quarter 2020 net loss attributable to FBL Financial Group of $2.5 million, or $0.10 per common diluted share. First quarter 2020 adjusted operating income(1) of $19.6 million, or $0.79 per diluted common share. Capital returned to shareholders of $50 million year-to-date in 2020 WEST DES MOINES, Iowa–(BUSINESS WIRE)– FBL Financial Group, Inc. (NYSE: FFG) today reported a net loss attributable to FBL Financial Group for the first quarter of 2020 of $2.5 million, or $0.10 per diluted common share, compared to net income of $34.0 million, or $1.37 per diluted common share, for the first quarter of 2019. Adjusted operating income(1) totaled $19.6 million, or $0.79 per common share, for the first quarter of 2020, compared to $25.9 million, or $1.04 per common share, for the first quarter of 2019. First quarter 2020 earnings reflect: Higher amortization of acquisition costs in the Corporate and Other segment due to the negative impact of equity markets on separate account performance An increase in reserves associated with Guaranteed Living Withdrawal Benefits (GLWB) due to the unfavorable impact of market performance Better than expected mortality experience Continued investment in the Wealth Management business Adjusted operating income differs from the...

Staff  | May 7, 2020 The Pension Investment Association of Canada is calling on provincial governments to allow pension plan sponsors to opt out of making any special payments for a period of six to 12 months or until there’s greater visibility of the end of the fallout from the coronavirus crisis. “We recommend that no conditionality or approval requirements be applied to such relief, other than a requirement by companies to inform regulators of their funding plans,” read a letter from the PIAC. Read: Ontario temporarily slashes penalties for PBGF non-payment The letter also noted the PIAC supports the actions of some jurisdictions to temporarily freeze commuted-value transfers and/or annuity buyouts without regulatory approval, but only for the short term. “PIAC can support such restrictions on a short-term basis (i.e., six months), but does not think they will be practical to maintain as regulators may well face a scenario in coming quarters where plan sponsors need to downsize and are at the same time managing under-funded plans and operating cash-flow shortfalls.” During these turbulent times, regulators should work to help those plans that can continue to pay commuted-value transfers, it said. Over the medium term, the PIAC recommended that provincial finance ministers maintain flexibility...

Staff | May 7, 2020 Medavie Blue Cross is adding a virtual health-care tool to its group benefits plans. The Online Doctors Unlimited tool, which is available through a partnership with Maple, includes consultations with Canadian-licensed doctors; access to a doctor immediately; service available 24/7/365; and an efficient administrative process. A lite version of the tool, with a limit of five daytime visits per year, is also available. Read: Walmart Canada rolls out free virtual health care to all staff “Medavie Blue Cross is committed to finding innovative health-care solutions that meet the needs of our clients and their employees,” said Marc Avaria, the insurer’s vice-president of product and disability management, in a press release. “Over the past several months, we have introduced a number of options to help plans provide access to emerging digital health options. One of the most popular new features has been Online Doctors, which provides members with instant access to Canada-licensed doctors through their computer or mobile device.” Read the full article at BenefitsCanada.com

Staff | May 7, 2020 The Caisse de dépôt et placement du Québec is purchasing a three per cent net smelter return royalty on gold production at Monarch Gold Corp.’s Beaufor mine in Quebec for $5 million. The $5 million will be payable to Monarch in two instalments — $3 million upon closing of the transaction and an additional $2 million once Monarch has completed a total of 15,000 metres of drilling on the Beaufor property or within 60 days of the Beaufor mine going into production. Read: Caisse providing $150M in financing to Quebec-based insurer “With CDPQ’s investment, Monarch can pursue its exploration plan, which could ultimately lead to the re-opening of the Beaufor mine in Abitibi-Témiscamingue,” said Kim Thomassin, executive vice-president and head of Quebec investments and stewardship investing at the Caisse, in a press release. “This transaction will pave the way for the company to integrate new artificial intelligence technology, which is in line with our desire to encourage more companies from so-called traditional sectors to take the digital turn to improve their performance.” Jean-Marc Lacoste, president and chief executive officer of Monarch, said the investment could eventually give the Beaufor mine a second life. “This investment is a turning point for the Beaufor mine, which still has considerable...

Toronto, ON (May 7, 2020) – The Leslie Group Ltd., an employee benefits consulting firm based in Toronto, is pleased to announce it has acquired 100% of the shares of Marathon Benefit Corporation, headquartered in Calgary, Alberta. This merger is “a foundational step” as The Leslie Group seeks to expand its footprint in Western Canada to offer local service to its growing client base. The acquisition will enhance the value they offer to clients through their services, technology, innovation, and expert advice. For Marathon Benefit Corp, the merger will provide existing clients with access to resources and products that were not previously available, as well as additional buying power. “The addition of Marathon to our organization continues our commitment to our clients to provide a high level of service,” said Shawn Leslie, President & CEO, The Leslie Group. “In addition, I am especially proud to support Alberta though the expansion of the Leslie Group in Alberta.” “We are very excited about the merger of Marathon Benefits and The Leslie Group,” added Lynn Favorite, Managing Owner, Marathon. “We feel strongly that our combined areas of expertise will provide greater value for our clients.” Chris Goodale, Director of Finance and Operations for...

Don’t give away the keys to your kingdom – identity and access management are critical: Aite Group Boston, MA (May 7, 2020) – Since the 1990s, and highlighted by the COVID-19 crisis, IT managers globally have felt pressure to extend data protection from simple perimeter defense to defense in depth, especially as more employees work from home or other co-working spaces. Identity and access technologies create tremendous value for any organization, when knowing people are who they say they are and knowing with confidence that they are not abusing privileges are even more critical. This eight-page Impact Brief draws from the author’s 25 years of experience, and 15 interviews with heads of cybersecurity and risk management at financial institutions in the U.S. and Europe, to help business and technology managers to describe identity and access solutions when they seek buy-in from nontechnical executives. Click here for the online summary or to download the table of contents. This report mentions Pcysys. About Aite Group Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the...