Insurable Interest Canadian Insurance Blog

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....

Given the ongoing health challenges associated with holding large in-person meetings in the midst of the COVID-19 pandemic, the National Association of Insurance Commissioners is converting its Summer Meeting to a virtual format. A revised Summer National Meeting schedule with specific dates and times will be available on naic.org no later than July 6, the association said today. Registration for the Summer National Meeting will open June 23. The meeting was scheduled for Minneapolis, and is the second of three large gatherings the NAIC hosts annually. The Spring Meeting was also converted to online-only in March. The reduced registration fee is $495. Registration fee credits received from the cancelled 2020 Spring Meeting may be applied to the registration fees for the 2020 Summer Meeting and 2020 Fall Meeting, the NAIC reminded members. Plans call for the Summer Meeting to be spread over a three-week period, beginning the week of July 27 and wrapping up the week of August 10, as shown below. Tentative Overview of Summer National Meeting Schedule: Week of July 27: Working Groups, Subgroups and other meetings.Week of August 3: Task Force meetingsWeek of August 10: Standing Committees and Executive Committee meetings, along with EX/Plenary and special programs....

Staff | June 10, 2020 Through a partnership with Johnston Group Inc., Teledoc Health Inc. is offering its telemedicine services to 350 First Nations and Inuit employers to provide to their employees. Since nearly 40 per cent of Canada’s First Nations, Inuit and Métis peoples live in rural areas, Johnston Group’s specialty employee benefits program, CINUP, aims to provide health services to employees living hours away from the nearest primary care physician or hospital, noted a press release. Read: APTN introducing counselling with Indigenous elders into EAP “The ability to access care when and where needed is critical,” said Dr. Hanif Jamal, medical director of Teladoc Health Canada, in the release. “Through Johnston Group, CINUP will allow individuals who previously delayed or avoided treatment to now have accessible, quality care on their terms. Employers can rest assured that their staff have the right resources to help eradicate the barriers previously preventing plan members from seeking timely care.” Melanie Desjarlais, chief administrative officer at Sagkeeng First Nation, noted the difficulties faced by her community in only having access to a doctor in the area a few times a week. “In the past, employees would have to be away from work a long time if they needed access to...

While artificial intelligence is not widely in use by most financial institutions, new research by The Economist Intelligence Unit shows 86% of U.S. banks and insurance companies plan to increase AI-related investment into technology by 2025 Toronto, ON (June 2, 2020) – Artificial intelligence is set to shape the future of the banking and insurance ecosystem, according to a new report commissioned by ThoughtSpot, the leader in search and AI-driven analytics. The report by The Economist Intelligence Unit (EIU), The Road Ahead: Artificial Intelligence and the Future of Financial Services, analyzes the sentiments of 200 business executives and C-suite leaders at investment banks, retail banks, and insurance companies in North America, Europe, and Asia Pacific. The study found that while there is a strong degree of confidence in the benefits of AI, the reality is that the technology is not largely in use: more than half of respondents say AI is not incorporated into their business’s processes and offerings, with only 15% saying the technology is used extensively across the organization. However, the benefits that have already emerged combined with respondents’ plans to double down on AI investment in the short-term show this technology is slated to drive a massive...

Toronto, ON (June 9, 2020) – ClearPay, the leader in automating payment settlements and reconciliation for the insurance industry, is pleased to announce that it is extending payment services for vendors to brokerages in the P&C Insurance sector. “We are excited to offer vendors and brokerages another channel to easily send and receive funds with requisite payment information,” said John Knotek, Chief Executive Officer of ClearPay. “Over the last year and particularly the last couple of months with many brokers working from home, vendors have asked us for an easy and secure way for our extensive brokerage network to settle their invoices. With our payment portal, an industry first, we will make ClearPay available to all vendors and brokerages.” The payment portal will be made available to any industry vendors, associations and brokers wanting to settle invoices. Brokers will be in full control of amount and date of payments and vendors will receive notifications and appropriate information with respect to each payment. In addition, through the vendor portal each party will have access to the same information to assist with reconciliation of payments. All brokers already using ClearPay will have instant access to the portal and new brokerages can be...