Insurable Interest Canadian Insurance Blog

Channel Harvest survey yields fresh insights on a contemporary issue Springfield, VA (June 9, 2020) – The annual survey of U.S. independent insurance agents from Channel Harvest Research shows insurance at a crossroads when it comes to ease of doing business and a divergence between agents who value the personal touch and those who promote self-service. Nearly 2,000 agency staff — from principals to producers to CSRs — participated in the survey between February and April, answering over 100 questions about their carrier relationships and trends in the insurance marketplace. Analysis of their answers yielded Channel Harvest’s exclusive carrier rankings and ratings, statistics on agency growth, and how agencies are preparing for a digital future dominated by younger generations. “What stands out is a divide between agents who are intentional about making insurance more like an Amazon purchase and those who prefer to offer a personal transaction,” says John Campbell, principal of Channel Harvest Research. “For example, only half of agents reported having a mobile-friendly website and 20% aren’t sure what kind of website they have.” Being visible when a consumer is searching online for a product or service is almost an imperative, yet the survey revealed large numbers on...

After two months of declines during the pandemic quarantine, U.S. life insurance application activity jumped 5.2% year-over-year in May in what appears to be a V-shaped recovery, according to the MIB Life Index. Using month-over-month comparisons, the recovery was even more impressive: February/March was off -6.7%, March/April off was -5.5%, and April/May bounced back an unprecedented 1.5% in a time period historically off -5.0% or more as the summer months approach. On a year-over-year basis, May 2020 index was up 5.2% with two less business days than in the 2019 comparative period. Year-to-date, the composite MIB Life Index is a percent higher than last month, up 1.6% at the end of May. May’s Life Index age groups showed strength in the younger and middle ages. Ages 0-44 gained 7.1%; ages 45-59 gained 6.9% ; and ages 60+ were off -1.9% year over year. Year-to-date, ages 0-44 are up 3.4%; ages 45-59 are up 0.5%; and ages 60+, while down -1.6%, remain ~10% higher than pre-2019 numbers. “As carriers and agents adjust to the new normal and society returns, we remain cautious about identifying any trends given the impact of the COVID-19 exogenous event,” MIB said in a news release. Looking...

Will autonomous vehicles be better than humans at predicting, planning and execution? Washington, DC (June 4, 2020) – Driver mistakes play a role in virtually all crashes. That’s why automation has been held up as a potential game changer for safety. But autonomous vehicles might prevent only around one third of all crashes if automated systems drive too much like people, according to a new study from the Insurance Institute for Highway Safety. “It’s likely that fully self-driving cars will eventually identify hazards better than people, but we found that this alone would not prevent the bulk of crashes,” says Jessica Cicchino, IIHS vice president for research and a coauthor of the study. Conventional thinking has it that self-driving vehicles could one day make crashes a thing of the past. The reality is not that simple. According to a national survey of police-reported crashes, driver error is the final failure in the chain of events leading to more than 9 out of 10 crashes. But the Institute’s analysis suggests that only about a third of those crashes were the result of mistakes that automated vehicles would be expected to avoid simply because they have more accurate perception than human drivers...

“Digital” Strategies are Diverse: Novarica study of 60+ insurer CIOs shows four distinct profiles of how insurers approach digital strategy Boston, MA (June 2, 2020) – Insurers show diverse opinions on what is part of a “digital strategy,” with different insurers clustering around different key functions, according to Insurer Digital Strategies: Current State and Post-COVID Plans, a new council study from research and advisory firm Novarica. Of the 67 participants surveyed – representing a cross-section of property/casualty and life/annuity insurers across all sizes of companies and most lines of business – only 40% of insurers have a formal digital strategy, but most claim at least a set of best practices. “Almost all surveyed insurers agreed that customer engagement and service were part of digital strategy,” said Paul Legutko, VP, Digital Marketing and Analytics, and lead author of Novarica’s new report. “Digital strategy needs to start with the customer experience and customer journey, though customer-centricity might manifest as digital marketing for some insurers and digital operations for others.” Among the key findings of the report are: Only 40% of insurers have a formal digital strategy, but most claim at least a set of best practices. For those with a formal strategy,...

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...