Insurable Interest Canadian Insurance Blog

New SMA Blog by Karen Furtado, Partner, Strategy Meets Action — Through the countless discussions that have occurred this past two weeks with many insurers, there have been winning strategies that have shone through as insurers have been executing their business continuity plans. And there have been certain challenges on the other side. Were you a company that needed the support of people to be in the office to “load the tapes” making sure all those batch jobs on the mainframe computer kept running? Did you have challenges making applications available to your now-remote workforce? Were your call centers still able to fully support agents and policyholders? One of the greatest successes in this market has been the performance of cloud computing. I remember, back in 2012, discussing the advantages of cloud computing. As an industry, there was just experimental acceptance of this capability – usually relegated to sandbox environments and testing. Jump forward to 2020 – and we see that 84% of all core system buying transactions were cloud based. Not only have we leapt forward in our use of cloud, but we are now in mainstream acceptance that core systems – some of the most critical systems in...

Yaelle Gang, the Canadian Investment Review | April 8, 2020 With companies finding themselves strapped for cash in the wake of the coronavirus, are plan sponsors scaling back on the company match in capital accumulation plans? Looking at the bigger picture in the U.S., companies are more focused on keeping their businesses running than on their defined contribution plans, says Peg Knox, chief operating officer of the Defined Contribution Institutional Investment Association. That said, companies of all sizes are considering ceasing the company match or delaying contributions, she adds. “Anecdotally, we’ve heard more small plan sponsors are taking that step, but I think it’s a space to watch going forward because . . .  the longer this drags on, I think you’ll start seeing companies of all size taking that step.” Read: Legal considerations for pension plan sponsors on design changes amid coronavirus In Canada, DC plan sponsors aren’t allowed to completely suspend their contributions. However, some are taking their contribution levels to the lowest possible minimum compliance, even if that means amending their plan to do it, says Jillian Kennedy, leader of DC and financial wellness at Mercer Canada. “A lot of the organizations that are reaching out are doing this on the basis,...

For many businesses, the arrival of the coronavirus crisis has meant cancelling plans and shutting down operations. But for digital insurance agencies such as Canada Protection Plan, it has meant precisely the opposite. “Even before this event, our company had a very simple process that was pretty much e-ready,” said Michael Aziz, co-President at Canada Protection Plan. “We had one of the best e-Applications in the business, and a couple of our products already had an e-Policy: advisors could do sales over the telephone and over the internet, and we could approve an application and issue a digital policy in a day or so if everything was in good order.” Before, that was offered as an option for customers’ convenience. But as lockdowns and other aggressive public safety measures make in-person business interactions all but impossible, insurance professionals that want to maintain their livelihood and continue to help their clientele have been pushed into adopting electronic platforms and virtual processes. “When news of this outbreak first came out, we met as a management team and decided we wanted to get prepared,” Aziz said. “We got pretty much everybody a laptop and screens at home so that they could be prepared....

Sun Life group benefits clients can now access an online administration solution for free, announced one leading platform provider for digital people management. Rise People has announced that it will offer its Rise Benefits Essentials solution, which eliminates all paperwork in managing Sun Life benefits, for free to Canadian Sun Life clients whose businesses and employees have been affected by the COVID-19 pandemic. Aside from enrolling new hires, companies using the solution will be able to update plan member information based on changes to their benefits, employment status, or personal information, as well as print or view billing statements. Employees, meanwhile, will can access full self-service options, such as appointing or changing a beneficiary, from a single digital platform that can be accessed 24/7 from anywhere. “Companies are faced with the challenge of conducting business remotely as social distancing and self-isolation quickly become a reality—and we want to do our part to minimize the impact of these disruptions,” said Rise President Julie Bevacqua.” Speaking for his company, Dave Jones, senior vice president for group benefits at Sun Life, applauded Rise People for its initiative. “Now more than ever, we need to ensure that hard-working Canadians receive support to thrive while...

Staff | April 7, 2020 The mental-health repercussions of the coronavirus could see global sales of psychiatric drugs increase to more than US$40 billion by 2025, according to data and analytics company GlobalData. Global sales for drugs to treat mental-health disorders such as depression, anxiety and obsessive compulsive disorder are expected to reach US$27.4 billion in 2020, an increase of US$717 million from 2019, the company said. It’s forecasting a compound annual growth rate of 8.4 per cent from 2020 to 2025, to reach an estimated US$40.9 billion. Read: How to support employees’ mental health during coronavirus “Personalized treatment strategies are important for treating psychiatric disorders, which may be exacerbated by the COVID-19 crisis,” said Magdalene Crabbe, pharmaceutical analyst at GlobalData, in a press release. “Responses to therapy are highly diverse and drugs that work for some people may not be effective for others. It is important that people realize that depending on pharmaceutical drugs is not necessarily the solution to the negative impact that COVID-19 will have on people’s mental health. Recovering from the worst pandemic this century has experienced so far will be achieved through a combination of approaches, including psychotherapy, physiotherapy and financial assistance.” Read: How will the coronavirus impact long-term disability claims?...

Martha Porado | April 7, 2020 Financial hardship is hitting employers across Canada and they’re starting to make difficult choices around cost-cutting measures within their businesses. “Some plan sponsors may be considering changes to their plan design to address these cost concerns during these turbulent times,” said Jana Steele, partner and department chair of the pension and benefits team at Osler, Hoskin & Harcourt LLP, in a webinar hosted by the law firm on Monday. Pension plan sponsors will have to tread carefully to stay on the right side of the law. “Today, no Canadian jurisdiction has passed or initiated any legislation that has absolved plan sponsors of their funding obligations under pension plans due to financial hardship caused by the COVID-19 pandemic,” said Omar Sunderji, an associate in the pension and benefits team at Osler. “As a result, employers are required to continue to make contributions to their pension plans in a normal course, in accordance with applicable law and the terms of the plan.” Read: How to talk about pensions and benefits during coronavirus The options available for plan sponsors seeking to make adjustments will vary considerably, with defined contribution plans seeing a clearer path to immediate solutions, he said. “Under DC plans, the plan...

Alyssa Hodder | April 7, 2020 The coronavirus pandemic has hit us all hard, and pensions and benefits are no exception. The pandemic has implications for out-of-country emergency travel insurance, disability benefits and even day-to-day health-care claims, since plan members aren’t able to access many of their usual practitioners and may be looking for virtual alternatives. From a pension standpoint, the recent market downturn has had a huge impact on pension plans and, more broadly, on individuals’ retirement savings. Read: Webinar: Coronavirus: What do employers need to know? During difficult times, it’s more important than ever to help people stay informed. Here are some tips for plan sponsors on how to communicate with employees and plan members on pension and benefit matters. This is a time when communication is critically important. Just about every organization I’ve interacted with in the last few years — from restaurants and hotel chains to my local public library — has reached out to tell me how they’re handling the coronavirus. If they have my email on file, I’ve heard from them! In this environment, staying silent could be viewed by employees as a glaring omission. Communicate often, but not too often The flip side of that recommendation is, more isn’t necessarily better....

The Coronavirus, officially known as COVID-19, was declared a worldwide pandemic by the World Health Organization (WHO) on March 11, 2020. We want to reassure our clients and brokers that we are still open for business and our Sales and Support Services teams are ready for any questions or concerns that you may have, whether it is related to Coronavirus or not. Safety Precautions It’s important to keep in mind these safety precautions during the COVID-19 pandemic to reduce the risk of spreading/contracting the virus. Adhere to any local, municipal, or government regulations during this time. Wash or sanitize your hands frequently. If you have to go out, be sure to wash your hands when you get home. Stay at home as much as possible. If it’s necessary for you to go out, stay at least two meters away from other individuals. Avoid touching your face. Cough or sneeze into your arm. When making purchases, use contactless payment methods such as tap on credit or debit cards. Avoid gathering in groups. Social Distancing Activities We hope that everyone is staying safe and practicing social distancing during these trying times. Here are some activities you can enjoy while social distancing in...

Staff | April 6, 2020 The Public Sector Pension Investment Board is making a strategic investment in SitusAMC, which provides advisory, outsourcing, talent and technology solutions to both the commercial and residential real estate finance industries. The PSP joins previous backer, private equity firm Stone Point Capital, which will remain SitusAMC’s largest shareholder. Read: PSP subsidiary starts development consultations for Toronto property “SitusAMC has a bold vision for their industry, supported by a proven leadership team, a strong operational foundation and world-class services and technology offerings,” said Martin Longchamps, managing director of private equity at the PSP, in a press release. “We look forward to supporting the team, alongside Stone Point, in its next phase of growth.” Read the full article at BenefitsCanada.com

The world’s first insurance-specific dashboard will help claims teams, exposure managers and loss adjustors visually understand the impact of COVID-19 London, UK (Apr. 1, 2020) – Imagery and geospatial intelligence consultancy firm McKenzie Intelligence Services (MIS) has unveiled the world’s first re/insurance industry-specific COVID-19 interactive incident dashboard. Users of the COVID-19 intelligence dashboard, including claims teams, exposure managers, loss adjustors and data scientists, will be able to visualise huge data sets mapping the impact COVID-19 is having in a dynamic, interactive and understandable way. MIS has been curating data since the outbreak began in January 2020 on travel restrictions, supply chain disruption, social and economic regulatory change, government advice, cancelled events and the overall spread of the virus resulting in movement restrictions. The datasets are available to examine in real-time and download, as well as rewind over time to understand the situation from the ground on any day in question or how a situation has evolved. Early adopters of the dashboard include the Lloyd’s market. The COVID-19 intelligence dashboard has been modelled on the award-winning geospatial data intelligence and imagery natural catastrophe portal MIS-Intel, and rapidly developed following initial discussions with Lloyd’s market participants. MIS’ bespoke mapping, data analysis and...