Insurable Interest Canadian Insurance Blog

Frisky kittens, sneaky snakes, crime fighting, and more Toronto, ON (Dec. 18, 2019) – In the last year, Aviva Canada has handled thousands of property and auto claims – including a few quirky and unusual ones: Chaotic kitchen kitties: Two home alone kittens accidentally turned on the kitchen faucet, causing the sink to overflow and flood the kitchen while our customer was at work. In the hours before the customer returned home, significant damage was caused to the floor tile and cupboards, but Aviva connected her with a contractor and her kitchen and her cats are now back to normal. Just passing through: A customer’s truck was stolen from a local hotel. He asked a friend to pick him up and called us while in the car. While sharing the details with us to start the claim, he spotted his stolen truck passing them on the highway. Our customer stayed on the phone with us while his friend called 911. The police arrested the driver and we arranged to have the vehicle inspected. The customer ultimately got his truck back undamaged. Rising out of the ashes: A fire caused the loss of our customer’s entire collection of 36 antique collector...

Vehicle theft ring operated in Central and Eastern Ontario and Quebec Ottawa, ON (Dec. 17, 2019) – Several residents of Quebec are facing numerous criminal charges following a multi-jurisdictional investigation into hundreds of high-end vehicle thefts throughout Central and Eastern Ontario and into Quebec. Ontario Provincial Police (OPP)-led Project SHILDON began in June 2019 in response to a series of vehicle thefts occurring throughout Central and Eastern Ontario. These thefts occurred at vehicle dealerships and residential areas, including vehicle owner’s driveways. The accused orchestrated a highly organized operation with multiple people involved in each vehicle theft, with the goal of exporting the stolen vehicles in shipping containers overseas through the Port of Montreal. At a news conference today, Superintendent Bryan MacKillop, Director, OPP Organized Crime Enforcement Bureau (OCEB) and representatives from the project’s partner agencies unveiled the results and details of the five-month investigation, along with photos of vehicles recovered. Project SHILDON was conducted by the OPP OCEB, OPP East Region Community Street Crime Units (CSCU), Service de police de Laval (SPL), Service de Police de la Ville de Montréal (SPVM), Canada Border Services Agency (CBSA), the Insurance Bureau of Canada (IBC), York Regional Police (YRP), Ottawa Police Service (OPS),...

Staff | December 18, 2019 The Canada Pension Plan Investment Board is committing US$225 million to the India Resurgence Fund platform, through its wholly owned subsidiary CPPIB Credit Investments Inc. The IndiaRF is a distressed-assets buyout platform, jointly sponsored by Piramal Enterprises Ltd. and Bain Capital Credit. It seeks to buy distressed assets by purchasing existing debt and equity securities, either through bankruptcy courts, directly from lenders or through newly issued securities. After taking control of an asset, the platform performs a turnaround and implements operational improvements. Read: CPPIB investing through India infrastructure fund The CPPIB is joining the platform’s anchor investor, the International Finance Corp. Together, the two entities intend to improve environmental, social and corporate governance standards at IndiaRF, according to a press release. “Our investment in IndiaRF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed-credit space,” said John Graham, senior managing director and global head of credit investments at the CPPIB. “Strong partnerships are at the core of how we invest — a strong local operator with active oversight from a trusted global partner will allow us to further increase our investments in India for the long term.” Read: Pension Podcast: Institutional investors urged to consider bottom-up approach...

Cigna is selling is group life and disability insurance business to New York Life. NEW YORK and BLOOMFIELD, Conn., December 18, 2019 – New York Life and Cigna announced today that they have entered into a definitive agreement for New York Life to acquire Cigna’s group life and disability insurance business for $6.3 billion. The acquisition is expected to close in the third quarter of 2020, subject to applicable regulatory approvals and other customary closing conditions. “This transaction increases the value we can deliver to our policy owners, strengthens our well-defined business model, and adds millions of customers to the New York Life family,” said New York Life Chairman and CEO Ted Mathas. “Cigna’s group life and disability business enhances our portfolio of strategic businesses and is led by an experienced management team and high-quality workforce, who we look forward to welcoming to our company. We are fully committed to making this transition as seamless as possible for employees and clients alike.” The group life and disability insurance business will operate within New York Life’s portfolio of strategic businesses, which, like Cigna’s Group Insurance business, are highly profitable, and fully support New York Life’s core retail life insurance franchise. These...

Kelsey Rolfe | December 18, 2019 Eight hundred unionized employees of Regina-based Co-op Refinery remain locked out after contract negotiations stalled. The refinery, which is part of Federated Co-operatives Ltd., locked out members of Unifor Local 594 on Dec. 5. Unifor said Co-op is demanding major concessions on the employees’ defined benefit pension. Currently, the DB plan is fully funded by Co-op, but the company wants employees to begin paying 11 per cent of total contributions. It also wants to reduce the benefit multiplier from two to 1.75 per cent and cut the indexing maximum for retirees from five to three per cent. Read: Eacom Timber workers reach agreement with pension, benefits improvements Scott Doherty, Unifor’s executive assistant to the national president and the union’s lead negotiator, says the concessions are in contrast to the company’s promise during the last contract negotiation two years ago. At the time, both parties agreed all new employees would join a new  defined contribution plan. “When we did that, [Co-op] said that they were never going to come after our defined benefit pension plan. This round of bargaining, that’s what they’ve done.” Doherty estimates between 600 and 650 union members are still in the DB plan, with the remainder in the new...

Yaelle Gang | December 18, 2019 In 2009, the Air Canada pension plan was in dire straits with a $2.6 billion solvency deficit. A decade later, it has a surplus of more than $2 billion. The complete turnaround is in part due to a new investment team that joined in 2009 and transformed the pension fund’s investments. With the $21 billion investment pot for Air Canada’s pensioners in good shape, the investment team is launching a new investment management firm called Trans-Canada Capital Inc., which is operating as a subsidiary of Air Canada. The new corporation, which officially opened for business in February 2019, is offering its services to other institutional investors. It took on its first client this summer and launched a website in November. Read: How Air Canada’s pension took off as Canada Post’s plan sank into deficit And other pension plans are showing interest, says Vincent Morin, the president of the TCC, who initially joined Air Canada’s investment team in 2009. Historically, the Air Canada pension plan was externally managed using a traditional 60/40 mix of public equities and bonds, he says. “We came off a very large deficit back then, which was quite problematic for the company. And we...

The life and health insurance industry is about to enter a new decade, carrying with it many of the same cost and consumer demand pressures that have plagued it through much of the 2010s. To survive, industry players have to take on a new role that encompasses multiple functions — and that means fully embracing the benefits of technology. “I think the main message for the industry is that there’s going to have to be a shift from payer to protector,” said Chad Hersh, Vice President at Capgemini Leading Life & Annuities and Group Benefits for North America. “There’s always been this notion that insurers’ role is to pay a claim, and that they’ll do everything they can to avoid paying that claim. But through technology, insurers can now stay away from payouts by becoming trusted partners who’ll help consumers stay healthy.” That’s a major thematic thread that runs through Capgemini’s Top Trends in Life Insurance 2020 report, which highlights areas of technology and business-model disruption that insurers around the world are exploring as they seek to survive and thrive. Not surprisingly, wellness programs topped Capgemini’s list. Just as sensors are allowing insurers in the P&C space to minimize auto...

A legal fight between three of the country’s largest insurance companies and a group of investors that was settled in March as the Saskatchewan government quietly changed regulations to protect the industry is getting a second life in the province’s appeals court. As reported by the Saskatoon StarPhoenix, the Saskatchewan Court of Appeal is set to hear three closely related cases whose outcome will determine whether investors have the right to put as much money as they please into universal life insurance policies that offer a guaranteed rate of return through so-called “side accounts.” “In a decision handed down last March, Court of Queen’s Bench Justice Brian Scherman … ruled that the 20-plus-year-old policies could not be used for ‘unlimited stand-alone investment opportunities,’” the publication said. The legal battle revolved around a loophole used by the investors, which a set of regulations passed by cabinet in October 2018 was meant to close. But in his decision, Scherman found that the regulations were not “declaratory” of the law, meaning that the new regulations could not be applied retroactively. “As expected, the investors and the companies — Manulife, BMO Life Assurance Co. and Industrial Alliance Insurance and Financial Services Inc. — filed...

Mirroring a recent move by British Columbia, Alberta has declared that it is implementing a biosimilar switching program, under which eligible patients will be switched from an originator biologic drug to an equivalent and less expensive biosimilar drug. In a press conference held Thursday, Alberta Health Minister Tyler Shandro noted that biologics represent 19% of the province’s total spending on drugs, despite being provided to fewer than 2% of patients. “Fortunately, there is a solution … Albertans who are prescribed a biologic drug will be transitioned to a biosimilar by their physician over the next six months,” he said, noting that the move starting on July 1, 2020 is expected to save the province as much as $380 million over the next four years. Patients who get biologic drugs through private drug plans or out-of-pocket payments, as well as children or pregnant women, will not be affected. Following the announcement, Biosimilars Canada congratulated Alberta for its decision, noting that biosimilars offer a way to manage costs while supporting positive patient outcomes. It cited Health Canada’s position that “no differences are expected in efficacy and safety” following a transition from biologics to biosimilars, adding that Pacific Blue Cross and Green Shield...

Staff | December 17, 2019 Canadian insurance and risk management brokerage Navacord Corp. is acquiring Concord, Ont.-based SmartChoice Benefits Inc. The acquisition will allow Navacord to enter the third-party administration space, noted a press release. “It also shows our commitment to building the required scale, carrier relationships, . . . products and technology solutions to place us among the leaders in the Canadian market for employee benefits and pensions,” said Shawn DeSantis, president and chief executive officer of Navacord. Read: Navacord acquires Edmonton-based benefits consulting firm Zeke Oudeh, founder and CEO of SmartChoice, said joining Navacord will provide the organization with additional infrastructure and the strength of being part of a national company. “We’ve invested considerably in designing and building benefits packages that make it easy and affordable for our clients to offer the comprehensive coverage they need to be competitive in the market.” Read the full article at BenefitsCanada.com