Insurable Interest Canadian Insurance Blog

Staff | June 16, 2020 The federal government is extending the Canada Emergency Response Benefit for an additional eight weeks to support Canadians who haven’t been able to find employment as provinces start to reopen their economies. “The reality is that even as we start to reopen, a lot of people still need this support to pay their bills while they look for work,” said Prime Minister Justin Trudeau during his daily press briefing. Read: Employers can’t use SUB plans to top up employees laid off due to pandemic The $2,000 monthly benefit was intended to be available for 16 weeks starting in mid-March. Many Canadians who haven’t been able to return to work would have reached the end of their eligibility period in early July. Anyone currently on the CERB — whether because they can’t find a job or their employer or industry hasn’t been able to reopen — will continue to receive it until the end of the summer. As of June 1, more than 8.4 million Canadians had applied for the CERB and the program had paid out more than $43.5 billion. Read the full article at BenefitsCanada.com

Staff | June 16, 2020 The results of a new study highlight the value of tailoring drug treatment to an individual’s genetic makeup. The pharmacogenetics clinical trial study by Green Shield Canada and the health benefits management division of HBM+ followed more than 200 outpatients who had been diagnosed with major mental-health conditions, including depression and anxiety. Participants were randomly assigned to two groups — a control group, where drug optimization was based solely on a pharmacist’s clinical judgement, and an experimental group, where a pharmacist delivered pharmacogenetics-guided treatment. Participants in the pharmacogenetics-guided group reported greater improvements over a six-month period across a range of clinical outcome measures. Specifically, patient health questionnaire scores showed improvements of 36 per cent and 18 per cent from baseline depression severity in the pharmacogenetics and control group, respectively. Read: Green Shield Canada investing in pharmacogenetics company Similarly, the outcomes for anxiety and disability were around two times greater in the pharmacogenetics-related group compared with the control group — generalized anxiety disorder scale results improved by 41 per cent in the pharmacogenetics group compared to 23 per cent for the control group, while Sheehan disability scores jumped by 44 per cent in the pharmacogenetics group versus 18 per cent in the control group....

Staff | June 16, 2020 Slack Technologies Inc. is offering its employees the option to work from home permanently, along with extending its coronavirus-related office closures past Sept. 1. In a blog post, Robby Kwok, senior vice-president of people, said the company plans to hire workers who are permanently remote. It’s also looking to revamp the design of its offices for the eventual return to work to reduce in-person contact. Read: Shopify moving majority of employees to permanent remote work “In the past, the physical office was the default space for work — from grabbing a small room to check in with your manager, to convening a large group to brainstorm on a whiteboard, to catching colleagues in the hall to hear about their weekend plans,” he wrote. “While we’re still navigating exactly how and when our offices reopen, we expect them to look quite different: fewer amenities such as catered lunches and coffee bars, less focus on in-person meetings with colleagues and more options for focused solo work.” Kwok noted that curtailing or eliminating in-office amenities would affect Slack’s contractor and vendor network. “This is a responsibility we take very seriously, which is why we’re committing to pay all Slack contractors through the end of 2020.” Other technology giants have...

Insurers and everyone along the distribution chain have long anticipated the impending technology infusion that would transform the delivery of life insurance and related products to consumers. That technology transformation crept closer at a glacial pace until the COVID-19 pandemic pushed an industry that relies on face-to-face contact to accelerate its plans. And something happened along the way to the new cyber-reality: insurers, middlemen and agents all learned they can rely on technology to forge a new way of selling insurance products. “It really is touching every aspect of the business,” said Kara Hoogensen, senior vice president of Specialty Benefits at Principal Financial Group. Principal is just one of many carriers who accelerated long-debated technology plans. For example, an online application option in use for life insurance was quickly adapted for use with Principal’s disability insurance products. “We definitely worked to get that out into the marketplaces as soon as we possibly could,” Hoogensen said. “It’s just easier to do business virtually and digitally at this point in time, as opposed to having a broker sit across the table and help an individual fill out a policy for income replacement.” ‘Some Pressure’ Likewise, Principal accelerated use of its Human API...

PR Newswire NEW YORK, June 16, 2020 /PRNewswire/ — Haven Life, the customer-centric life insurance agency backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual), and Benefitfocus, the technology platform driving rapid innovation for employers and health plans, are today announcing a partnership that allows more individuals to digitally purchase the financial protection they need. As a result of the partnership, Salary Protection is now accessible to the millions of individuals whose employers use the Benefitfocus Benefit Catalog. Issued by MassMutual subsidiary C.M. Life and developed in collaboration with key reinsurance partner SCOR Global Life, Salary Protection is a new term life insurance policy that pays an employee’s beneficiary an amount equal to the policyholder’s paycheck every month — for up to 15 years after initial purchase — if they were to pass away during the coverage period. Salary Protection provides more robust coverage amounts than other group life insurance policies, which generally pay out only 1 or 2 times the employee’s annual salary. “At Haven Life, we’re focused on making life insurance not only more simple, but also more convenient to purchase,” said co-founder and CEO Yaron Ben-Zvi. “With Benefitfocus’ extensive reach, far more individuals can now purchase a life...

Despite the economic craziness — or maybe because of it — Americans are trusting insurance agents and companies more than ever, according to LIMRA data. Despite the unsettled economy over the past half year, public confidence in insurance agents is at an all-time high, up dramatically from a low recorded in the wake of the 2008 crash, according to LIMRA data. In October 2008, only 9% of consumers had “extreme/quite a bit” of confidence in insurance agents and brokers in LIMRA’s Consumer Sentiment Survey conducted.In May of this year, that percent had risen to 32%, a 255% increase. That increase occurred even while confidence in the economy overall plummeted from its post-2008 high notched this January, with 56% of consumers having “extreme/quite a bit” of confidence in the economy. That number slid to 21% in May, a 62.5% drop in just a few months. Consumer confidence also increased in insurance companies, with 40% of consumers saying they had “extreme” or “quite a bit” of confidence in life carriers. Jennifer Douglas, LIMRA Research Quality and Performance research director, said consumer contact with their carriers was an important factor. Advertisement “One of the factors that may have contributed to consumers’ increased confidence...

Customer Experience Increasingly Being Driven by Digital Interactions with Insurers: J.D. Power 2020 U.S. Auto Insurance Study Troy, MI (June 11, 2020) – Remember all the talk that digital transformation would disrupt the auto insurance industry? Well, it’s real. According to the J.D. Power 2020 U.S. Auto Insurance Study,SM released today, insurance company websites—for the first time in the study’s 21-year history—officially surpass agents in terms of importance to client interaction and service by providing higher customer satisfaction. “We’ve seen this trend developing for several years, but this is the first time that the digital channel has become the preferred means of interacting with auto insurers, exceeding one-on-one communication with agents,” said Robert Lajdziak, senior consultant for insurance intelligence at J.D. Power. “This has huge implications for the industry because it puts the focus squarely on digital investment to notably expand creating seamless customer touch points. It’s an area in which the major national carriers excel, versus hyper-local, albeit knowledgeable, agent networks.” Key Findings Following are key findings of the 2020 study: Digital investments pay dividends: Customer experience with auto insurer websites contributes more to satisfaction than agents, accounting for 34% of an insurer’s total interaction score. That’s one percentage point higher...

Staff  | June 15, 2020 As the Canada Life Assurance Co. prepares a phased approach for returning to the office, the insurer is thanking its more than 11,000 employees with two paid days on July 2 and 3 for an extra long Canada Day weekend. “Three months ago, we asked our employees to be flexible, adaptable, creative and resilient in the face of great change, disruption and uncertainty,” said Jeff Macoun, president and chief operating officer for Canada at Canada Life, in a press release. “We are so proud everyone rose to the challenge, as we knew they would, so we could continue to be there for our customers, advisors and each other every day. Canada Life days are just one way we can thank our employees and help ensure their own mental health is a priority as they continue to support the financial, physical and mental well-being of Canadians.” More than 95 per cent of Canada Life’s workforce has been working from home during the coronavirus pandemic. Following the Canada Day long weekend, the company will gradually increase the number of people returning to the office, beginning with those with vital roles that can best be done onsite. By the end of October,...

Agents can obtain a policy in just minutes Jacksonville, FL (June 15, 2020) – US Assure, the exclusive program administrator for the Builders Risk Plan insured by Zurich, has launched a new online application called XPressBIND – an easy and rapid way for agents to issue residential builders risk policies. The simple-to-use application allows agents to quote and issue a policy without any underwriting holds in a matter of minutes, making it the fastest way to obtain builders risk insurance for residential, one-to-four family new-home construction valued up to $500,000. “XPressBIND combines ease of use, speed and nationwide availability to revolutionize the way builders risk is issued for residential construction,” says Steve Bristow, US Assure’s senior vice president and head of operations. “Agents can have a completed policy ready to go in just two minutes or less after answering a few basic questions about the project.” US Assure is the nation’s top stand-alone provider of builders risk insurance and writes the Zurich-insured program in every state. The Jacksonville-based company specializes in course-of-construction coverage for all types of projects, backed by more than 40 years of underwriting expertise in builders risk and distributed through an extensive network of independent and captive...

Quebec City, QC (June 15, 2020) – iA Financial Group is pleased to announce the launch of iA PAR, its all new participating life insurance product designed for clients looking to maximize their estate value, gain access to a source of liquidity and diversify their investments. “iA PAR once again demonstrates our commitment to constant innovation and to offering an unparalleled client experience and perfectly rounds out our product lineup,” highlights Renée Laflamme, Executive Vice-President, Individual Insurance, Savings and Retirement at iA Financial Group. “We have always strived to offer solutions that meet the evolving needs of our clients. That’s why we are proud to now offer our new participating life insurance product and allow them to benefit from its advantages.” A flexible, highly competitive product iA PAR meets the highest expectations of clients who wish to: Maximize their estate value thanks to annual dividends Generate a long-term source of liquidity to do things like increase their retirement income or reduce their premium payments Provide a solid financial foundation for their children/grandchildren’s future Benefit from a source of tax-advantaged asset diversification with privileged access to institutional asset classes iA PAR also offers some of the most sought-after features on the...