Insurable Interest Canadian Insurance Blog

Kelsey Rolfe | April 20, 2020 While equity markets took substantial hits as the coronavirus pandemic arrived in North America, technology and health-care companies have performed well and are set to be long-term winners for institutional investors. “A lot of the digital transformation themes that we focus on and think about have really been highlighted, as many digital companies are really beneficiaries of working from home — cloud computing, accessing things remotely, online security, payments,” said Grant Bowers, senior vice-president and a portfolio manager in Franklin Templeton’s equity group during a webinar on opportunities in U.S. equities. He also noted software companies have been particular standouts. Read: Will emerging Asia outperform against an improving global backdrop? He predicted the crisis’ impact on corporate behaviours will accelerate the adoption of technology. “We like fintech and the payment space and we think that the transition to debit or credit or electronic payments, while impacted in the near term, probably accelerates from here. . . . Cloud computing is another big one that we’re very focused on. As workers realize that a distributed workforce is really beneficial, you’re going to see a lot of companies adopt looser and more relaxed work-from-home rules and . . . cloud computing is a huge beneficiary.” The pandemic...

As the global COVID-19 pandemic continues to challenge Canadian small- and medium-sized businesses, the Canada Life Assurance company has announced a new measure to ease their financial burden. Canada Life has reduced group health insurance premiums for more than 26,000 of its business customers, providing relief to their business and maintaining valued coverage for their employees. “Unlike premium deferrals, these savings do not need to be repaid later,” said Canada Life President and Chief Operating Officer Jeff Macoun. Starting in May, the company said it will apply premium reduction adjustments for the month of April, retroactive to April 1st. Eligible group customers will see applicable premium reduction adjustment credits to their May invoices with the following rates: Dental: 50% Vision and extended healthcare (excluding prescription drugs): 20% According to Macoun, the reduced premiums reflect the fact that some healthcare providers have either shifted to virtual treatment or imposed limitations on the services that they offer. Because prescription drugs represent essential services and the number of claims have not dropped, they have not been included in the premium cuts. “These factors will be re-assessed monthly until the pandemic, and its impact on these claims, has passed,” the firm said. Read the...

Staff  | April 17, 2020 The Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan are purchasing 40 per cent of the shares of Impulsora del Desarrollo y el Empleo en América Latina, a Mexican infrastructure developer. The two organizations made their tender offer to buy shares of the publicly traded company, at MXN$43.96 per share, following the initial announcement of their intention to purchase in November 2019. In accordance with Mexican law, the pension funds will receive their shares as of April 17, with the tender offer formally settling on April 23. The developer currently holds a portfolio of 18 infrastructure projects, including 13 toll roads, three logistics terminals and two wastewater treatment plants. It also operates an electronic toll collection services business. The company, also known as IDEAL, has already partnered with the CPPIB and Ontario Teachers’ on two toll roads, the Arco Norte and the Pacifico Sur. Read: CPPIB, Ontario Teachers’ increase positions in Mexican infrastructure The deal also includes the pending development of an infrastructure investment trust, Fideicomiso de Inversión en Energía e Infraestructura, known in Mexico as FIBRA-E. Once finalized, the trust will be funded by IDEAL, as well as through subsidiaries of both pension funds. The trust will be managed by IDEAL and...

A fifth of financial institutions’ employees working from home may never return to the office post-crisis: Aite Group Boston, MA (Apr. 17, 2020) – Starting in March 2020, the COVID-19 health crisis has forced governments around the world to put their populations in lockdown. Shelter-in-place mandates have affected financial institutions, and while many have continued to operate with staff in the office, all have had to shift some personnel to working from home. Some of their operations, such as call centers, have been hit hard by the lockdown, and in the United States, banks have been enlisted to deliver government relief funding to small businesses, adding to the pressure. How agile have the financial services industry and its vendor community proved so far with their workplace transitions? This report is for FI leaders looking to improve the workplace agility of their organizations and for their technology and consulting vendors seeking to assist them along the way. Leveraging an online survey fielded between April 3 and April 12, 2020, of over 300 respondents at FIs as well as technology and consulting vendors in North America, Europe, and beyond, it discusses what to expect in the near term and offers longer-term takeaways....

Key InsurTechs that are catalysts for insurance transformation Boston, MA (Apr. 17, 2020) – Strategy Meets Action (SMA), a leading insurance advisory firm, has recently published a new research report, “The Top 50 InsurTechs in P&C.” The report is based on SMA’s extensive research and insights along with our on-going engagement in the InsurTech and insurer transformation spaces over the last decade. The Top 50 are the InsurTechs that have achieved significant success in building impactful and sustainable companies. These companies are catalysts for innovation and change in insurance.​ SMA will be announcing companies selected for the Top 50 InsurTechs by category via a social media campaign over the next few weeks. Watch for the announcements, or purchase the full report here.​ “Many InsurTechs are now far beyond the startup stage and are making significant contributions to the insurance industry. The 50 profiled by SMA are not the only ones having success, but they are having the most impact at this time and have good prospects for growth,” said Mark Breading, SMA Partner.​ The Top 50 List​: Identifies full stack insurers, distribution startups, and technology platforms and solutions. ​ Profiles InsurTechs by lines of business, such as personal lines auto,...

First on-demand gig economy insurance solution in Canada Toronto, ON (Apr. 16, 2020) – HeyBryan and Duuo are excited to the details of a new on-demand gig insurance solution, available soon for all HeyBryan experts, in partnership with digital insurance brand Duuo (The Co-operators Group Limited). The new insurance solution – branded Duuo Gig Insurance – will be the first of its kind in the Canadian gig economy. Duuo Gig Insurance has been exclusively designed to meet the unique needs of HeyBryan experts across the GTA, BC’s Lower Mainland, the City of Calgary, as well as future locations where HeyBryan is active. All HeyBryan experts will be able to purchase Duuo Gig Insurance in just a couple of minutes on their mobile device through a link in the HeyBryan platform. The cost for the majority of HeyBryan’s 20 task categories range around $5-7 per day, providing $2,000,000 in liability protection. This service will eliminate the lengthy and antiquated insurance purchase path. Policy information, contact information and activation of the policy are all easily accessible via the mobile device and increasing ease at the touch of button. And it will give customers the peace-of-mind knowing that their HeyBryan expert is fully...

The National Association of Insurance Commissioners is expected to delay collection of key insurer mortality data until 2021. Due to the ongoing COVID-19 pandemic disruption, submitting the mortality data is not feasible this year, the association announced Wednesday. The data “remains a high priority regulatory issue for the NAIC, and the proposed one-year delay in the collection of this data should not be interpreted as diminishing the importance of this issue to the NAIC,” the association said in a memo. The delay had been requested by the American Council of Life Insurers, the NAIC said. Mortality data is collected annually from selected insurers and helps the carriers determine premiums and regulators to make sure the insurance companies remain solvent. At a June 25, 2019 Life Actuarial Task Force meeting, 176 companies were selected to provide 2018 mortality data, representing 31 states of domicile. Since then, all selected companies were notified, and the data call was planned to begin during the second quarter of 2020, the NAIC said. The new schedule calls for 2018 and 2019 mortality data to be collected in 2021. The NAIC reminded life insurers to stay on top of their data collection. “It is expected that life...

By Steven Kaukinen, CEO & Co-Founder, Awywi Insurance Services Ltd. — In the distant past I didn’t think on-line insurance buying was really going to happen. There seemed a clunkiness about it, had kind of a “fly-by-night” feeling even if it was an insurer that did (or not) have a brand attached to it. That was then and things have changed as technology has advanced greatly. However, now the insurance industry has to be more prepared than ever that the migration to purchasing (as opposed to just quoting and comparing) insurance on-line is really happening. Customers are being forced to change. Sadly, now we have the harsh reality of the Covid-19 pandemic. The unthinkable has happened and has a possibility of recurrence. However, one thing that is inevitable is that insurance marches on. People need insurance, maybe now more than ever. But the daily need to service their accounts, renew their accounts and even, perhaps, purchase a new insurance policy has not gone away. Interestingly, Covid-19 has probably done more to change insurance buying habits than generations of apathy can prevent. Covid-19 has motivated the industry recognizing the need to reach customers. While I wouldn’t say the industry was prepared...

Jennifer Paterson | April 17, 2020 Before the coronavirus pandemic, 20 per cent of BMO Financial Group’s 45,000 employees were working from home on a fairly regular basis. Since March, that’s jumped to 80 per cent. “We have, of course, people who are in branches who need to go in and serve customers face to face, but we have schooled up our work from home at a pace we wouldn’t otherwise have done,” says Karen Collins, the bank’s chief talent officer. “If we’re looking for good things that are going to come out of this crisis, that’s certainly one good thing.” That said, she also highlights some detrimental aspects of working from home. With people no longer commuting, they have no separation between work at home, so they can potentially be working 16- or 17-hour days. As well, people can feel socially isolated — especially single people living alone — which has an effect on their mental health. And many people are juggling the responsibilities of working and parenting full time. “So people are running families essentially out of their office and that’s stressful,” says Collins. Read: Webinar: Coronavirus and workplace mental health Bill Howatt, president of Howatt HR Consulting, notes the current environment is unchartered...

Staff | April 17, 2020 The Canada Life Assurance Co. is cutting its health insurance premiums for its employer-sponsored benefits plans to support small- and medium-sized businesses facing hardship as a result of the coronavirus pandemic. “We recognize that many businesses are challenged right now and we are wholeheartedly committed to supporting them however we can,” said Jeff Macoun, president and chief operating officer at Canada Life, in a press release. “Over one million Canadians were laid off in March alone and financial insecurity is growing. These premium reductions will give more than 26,000 of our business customers some much-needed financial relief, both to their business and to maintaining valued coverage for their employees. Unlike premium deferrals, these savings do not need to be repaid later and reflect that some health-care service providers have shifted to virtual treatment, while others are offering more limited services.” Read: Should plan sponsors shift their benefits plan spend during coronavirus? The insurer is providing eligible plan sponsors with a 50 per cent reduction in dental premiums and a 20 per cent reduction in vision and extended health-care premiums. The reductions will be applied in May for the month of April and are retroactive to April 1. Prescription drugs are excluded...