Insurable Interest Canadian Insurance Blog

Martha Porado  | April 23, 2020 With crude oil futures contracts crashing through the floor into negative territory at the beginning of the week, what opportunities are opening up for institutional investors? Panic set in on commodity trading floors on Monday because physical storage options for oil were filling up fast, with much less demand for petrol from consumers due to global coronavirus prevention efforts, says Bill Callahan, an investment strategist at Schroders. “The reality is, we’ve never seen demand stop like what we’ve just had. This is uncharted territory for the global economy.” Adding to the growing list of unprecedented capital markets scenarios in the wake of the coronavirus, the sudden worldwide fall in the demand for petroleum products means some energy companies will survive and some will not, he says.  Read: Are institutional investors returning to commodities? The major determining factor will be how long oil companies can hold out, says Callahan. Even if the global economy were to switch back on today, there’s still a massive pent up supply of oil that will have to be worked through before prices could return to any degree of normalcy. “Unfortunately, for companies that have lots of debt, time is not on their side, so we...

Jennifer Paterson | April 23, 2020 BMO Financial Group is highlighting a number of its health supports for employees during the coronavirus pandemic. The bank is hosting conference calls with physicians and mental-health professionals, which are recorded so employees can listen to them later on-demand. So far, 15,000 employees have participated, says Karen Collins, the bank’s chief talent officer. “It’s really helping to engage our people and give them facts in a time when there’s a lot of fake news out there.” Read: How to support employees’ mental health during coronavirus With its medical provider Medysis Health Group, BMO has also rolled out a virtual health-care app, which employees can access through their computer or smartphone. “That’s for medical support, but it’s also been so good for people’s mental health because, if the tips and tools we’re giving them don’t work and they’re feeling a sense of anxiety they can’t manage, they can get access to a mental-health professional,” says Collins. The app has also been helpful for employees who are trying to avoid going into a doctor’s office or clinic. For example, the four-year-old daughter of one of BMO’s branch managers had a rash on her arm, but the employee was stressed about taking her into...

Staff | April 23, 2020 Alberta Blue Cross, Green Shield Canada, iA Financial Group and Medavie Blue Cross are the latest insurers to reduce benefits plan premiums during the coronavirus pandemic. For Alberta Blue Cross’ group plans, the changes include a 50 per cent reduction to dental benefits premiums, a 25 per cent reduction to vision care premiums and a 25 per cent reduction to non-drug related extended health benefits premiums. The reductions are temporary, but not a deferral, noted the insurer in a blog post. Read: Manulife cutting group benefits plan premiums for May Meanwhile, Green Shield Canada will reduce dental premiums by 75 per cent and health premiums, including vision but excluding drug, by 20 per cent. The reductions are for non-refund benefits plans and will apply to April, May and June. “We hope these premium reductions provide some cost relief for our clients as they navigate the complexities of this pandemic,” said Brent Allen, executive vice-president of group at Green Shield Canada, in a press release. “Rest assured that the GSC team is actively monitoring the latest developments and exploring what else we can do to help.” iA Financial Group is offering a 60 per cent credit on dental care premiums. The credit will apply...

Staff | April 22, 2020 The Ontario Municipal Employees Retirement System’s sponsors corporation board is considering two plan design changes: the introduction of shared-risk indexing and the expansion of pension coverage to non full-time workers. On the shared-risk indexing front, the organization is looking at reducing future inflation increases on benefits earned after Dec. 31, 2022. As a first line of defence, the OMERS is building a reserve. If at any time the reserve isn’t sufficient, the sponsors corporation will consider reducing inflation increases. This change would only impact plan members retiring after Dec. 31, 2022. Read: OMERS looking at indexing as part of plan review Plan maturity is a driving force behind this change, according to the OMERS website. For instance, the plan used to have seven active members for each retiree and now has two retirees for every active member. Soon, the ratio will be one to one. “Defined benefit pension plans work because the risks related to funding our secured retirement are shared among OMERS stakeholders, mainly our members and our employers and across generations,” said Michael Rolland, chief executive officer of the OMERS sponsors corporation, during the OMERS’ annual meeting webcast. “As our active to retired member ratio decreases, that responsibility...

Staff | April 22, 2020 The Royal Bank of Canada is expanding its partnership with telemedicine platform Wello to give Canadian businesses and their employees access to virtual health care during the coronavirus pandemic. Through Wello’s platform, RBC’s plan sponsor clients and their employees will have access to health resources including prescription and medical referrals, consultations for chronic health conditions, mental-health support, health education and coaching, as well as elder, child and infant care at any time of day. Read: Walmart Canada rolls out free virtual health care to all staff “In a very short period of time, many Canadian businesses were forced into a zero revenue environment and that is creating anxiety and uncertainty for owners and their employees,” said Greg Grice, RBC’s executive vice-president of business financial services, in a press release. “One of the ways we can help clients adjust to this new reality is through the mental and physical health support and resources offered by Wello to ensure clients and their employees are cared for during these times.” Vince Danielson, chief executive officer at Wello, noted the service will help employees address their physical and mental-health needs while the health-care system is focused on dealing with Canadians affected by the coronavirus....

PR Newswire Today, John Hancock announces a strategic collaboration with Clareto, a leader in digital solutions to acquire and aggregate electronic health data, to further improve the Company’s underwriting speed and efficiency as part of its ongoing commitment to transform the life insurance purchase experience. Clareto’s capabilities include enabling access to more than 52 million unique patient records* through a fully HIPAA-compliant integration of state and regional health information exchanges and national electronic medical record vendors. John Hancock will leverage Clareto’s growing network to obtain the health data required for underwriting purposes in real time with proper HIPAA authorization from the customer. Through this collaboration, John Hancock life insurance agents will gain access to an entire field of electronic health data sources via a single-entry point, eliminating time and paperwork from the application process. “At John Hancock, we’re committed to making decisions easier and lives better for our customers, and that means working every day to radically simplify the life insurance purchase process and reduce the time from application to issue,” added Susan Ghalili, VP, Underwriting Transformation and Chief Underwriter of John Hancock Insurance. “We’re pleased to be working with Clareto to further advance the customer experience and provide our services...

Calgary, AB (Apr. 21, 2020) – Trufla Technology and the Wawanesa Mutual Insurance Company are pleased to announce the first ever billing API integration using our truMobile platform. We are now able to provide our broker partners and customers with real-time access to billing information and inquiries through the app and portal. “This could not have come at a better time,” says Sherif Gemayel, CEO of Trufla Technology. “Now more than ever, we need to provide consumers with digital accessibility and transparency. This is a huge step forward for the distribution channel and another step towards moving towards a paperless environment.” “In order to provide excellent service to our customers, the current climate has necessitated a massive shift,” says Graham Haigh, VP Broker Distribution, Wawanesa Insurance. “We are happy to be able to provide our broker partners with this reliable, real-time connectivity, one that enables a better service experience for our customers.” Trufla is committed to helping brokerages across the country get the tools they need to streamline their operations and provide frictionless service. “Our brokerage has over 70% Wawanesa customers, and this payment integration will help us reduce call volumes while also allowing us to give our customers exceptional...

By Andrea Sangster, Alert Labs — To help stop the spread of COVID-19, you’ve been told to stay home. You’ve been told to stay away from other people. BUT, you have employees, tenants, and customers that rely on you. How can you deliver on your commitment to keep your properties safe and well maintained, while also staying away? Monitor All Properties With One Dashboard Alert Labs’ smart sensors are designed to help with this. After an easy 10 minute, one-time installation that does not require a plumber or electrician, you can monitor all of your properties from one simple dashboard. Temperature, power status, water use, leak status – all in one place. And, Alert Labs’ sensors are cellular-connected, so you don’t have to worry about local internet or WiFi access failures. You receive alerts on your phone and computer for any unusual activity, like high water use – which could indicate a burst pipe or tap left on – or a power outage, or a flood. You can then make informed decisions about which maintenance specialist to send in an emergency. Maintenance staff can reduce their risk of exposure because they do not need to do routine checks and walk-throughs....

Automated risk assessment enables insurers to detect and investigate suspicious claims and fight fraud Chicago, IL (Apr. 21, 2020) – FRISS, a global provider of AI-powered fraud and risk solutions for Property and Casualty insurance carriers and Guidewire PartnerConnect Solution partner, and Guidewire Software, Inc., provider of the industry platform P&C insurers rely upon, today announced the FRISS add-on for Fraud Detection, created using the Guidewire DevConnect developer environment, has successfully completed the Ready for Guidewire validation process and is available for download by Guidewire customers in the Guidewire Marketplace. Insurance fraud is a global issue. In the US alone, the cost of insurance fraud exceeds $40 billion per year, costing the average family hundreds in increased premiums.[1] According to the ABI, 1,300 insurance scams were uncovered every day in the UK in 2018, with the average fraudulent act costing £12,000.[2] “Fraud detection tools are becoming increasingly important to insurers. With the strain on the global economy, experts are predicting a rise in fraud rates,” says Karlyn Carnahan, Head of Celent’s North American Property Casualty business. “Pre-integration of fraud tools into a claims or policy admin system allows insurers to rapidly deploy these capabilities and stay ahead of the projected...

Staff with files from Canadian Press | April 22, 2020 Unions across the country are pushing for further measures to keep their members safe, whether they stock the frozen food section in a grocery store or care for critically-ill patients in an intensive care unit. Health-care workers Unifor had strong words for an Ontario government directive that allows employers to ask long-term care workers who’ve tested positive for the coronavirus but aren’t yet showing symptoms to return to work under isolation. “Sending what we know are potentially infectious people back into the most high-risk and vulnerable institutions demonstrates a lack of care that really borders on heartless,” said Jerry Dias, president of Unifor, in a press release. “Someone must explain to me how a frontline caregiver can work under isolation.”  Read: Employers taking many approaches to leave, benefits during coronavirus pandemic In Nova Scotia, five unions representing more than 40,000 health-care workers are calling on the provincial government to sign a protocol to provide personal protective equipment to frontline health-care workers. In a press release, the Nova Scotia Nurses’ Union, the Nova Scotia Government and General Employees Union, the Canadian Union of Public Employees, Unifor and the International Union of Operating Engineers Local 727 said they’ve...