Insurable Interest Canadian Insurance Blog

Jean-Daniel Côté | April 21, 2020 In this time of pandemic, a lot has been shared about the woes of defined benefit pension plans, but members of capital accumulation plans are also feeling the impact, even though few have even noticed. Fortunately, target-date funds and lifecycle portfolios have really helped. But the government and provincial regulators need to help as well. Once again, inertia has been CAP members’ best friend — by preventing them from impulsively moving out of equities at a time when equity values are low. In mid-April, Sun Life Financial told Benefits Canada it saw just 1.8 per cent of CAP members asking to make changes to their investments during the month of March. Going further, a minority of if its CAP members moved to a more conservative strategy, a situation seemingly in line with other providers’ informal conclusions. Read: CAP members seeking reassurance but not changing investments In the U.S., 401(k) statistics are similar, with Fidelity Investments Inc. indicating less than 0.5 per cent of TDF holders had made investment changes in March, while Vanguard Group reported just 2.5 per cent of its 401(k)-only participants had made changes in the month leading up to March 20. This is all good news, since a vast majority...

Staff | April 20, 2020 The Ontario Municipal Employees Retirement System is appointing Bob Aziz as its new chief operating officer and Michael Kelly as its chief legal and corporate affairs officer. In the new role, effective April 20, Aziz will have oversight of the OMERS’ data and technology, privacy, government relations and global operations teams. He’ll also join the organization’s senior executive team and transaction approval committee, while remaining in his role as president of OMERS Investment Management. Aziz spent 10 years at Oxford Properties, the OMERS’ real estate investment arm, where he was executive vice-president and chief legal counsel.  Read: Caisse shifts roles in response to economic challenges Kelly moves to the new role from his position as executive vice-president and general counsel for the OMERS. He first joined the fund as part of its infrastructure team in 2006. In investment news, OMERS Growth Equity led a round of $64 million series-C funding for U.S. health-care company Aledade Inc. The financing will allow the company, which partners with independent practices and health-care providers across 27 states, to expand its network of physician-led accountable care organizations, according to a press release. “All across America, primary care physicians are in need of innovative ways to deliver better care at lower cost, while simplifying...

Toronto, ON (Apr. 16, 2020) – Apollo Insurance Solutions Ltd. (“Apollo Exchange”) is pleased to announce that Joel Schuster has joined the leadership team as Chief Operating Officer and General Counsel. Mr. Schuster brings more than 18 years of experience to the role, most recently as the Chief Legal Officer and Corporate Secretary at Avigilon Corporation, a publicly traded video surveillance software and hardware manufacturer purchased in 2018 by Motorola Solutions (NYSE:MSI) for USD$1billion. “Joel’s legal background combined with his operational experience make him an incredible asset to the Apollo Exchange team,” said Jeff McCann, CEO. “We’re excited to have Joel help us accelerate our incredible growth this year.” Mr. Schuster will oversee operations and legal affairs as the company continues to scale its suite of digital insurance products to better serve its network of over 160 property and casualty brokerages. For more information, please contact: David Dyck, Head of Marketing and PRApollo Exchange(778) 917-9667[email protected] About Apollo Exchange Apollo Exchange is Canada’s largest online insurance marketplace. Apollo Exchange empowers brokers to instantly quote, bind, and issue policy documents for hundreds of classes of small business in real time, or white label the platform to sell directly from their website. Brokerages...

InsuranceNewsNet By Shane McGonnell There are differing schools of thought on how the coronavirus is affecting — and could affect — the life settlement market. Over the past five years, the life settlement market as an industry has multiplied vastly both in funds to purchase policies and consumer awareness. In fact, a 2019 report from The Deal showed a 28% increase in policies sold in 2018 compared to 2017, while the face amount of life insurance policies sold increased by about $1 billion, to an impressive $3.8 billion. And in late 2019, Conning reported that the life settlement market would see double-digit CAGR over the next decade. But that was all before the corona virus pandemic. For consumers contemplating selling their policies, one school of thought is, “Maybe I shouldn’t sell my policy or my parents’ policy right now. What if they contracted Covid-19 and, God forbid, pass away? The death benefit would be greater than what I’d receive from selling the policy.” That’s an understandable thought process. However, another valid concern that financial professionals are well aware of is, “What if the financial crisis caused by Covid-19 negatively affects the funding for life settlements, exactly like it did after...

Toronto, ON (Apr. 16, 2020) – The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work together with the sectors that it regulates to ensure that industry and consumers receive the support they need during this time of rapid change and disruption. FSRA has released guidance that is aimed at ensuring consumers are treated fairly, and insurers have a number of options for providing customers with financial relief during this temporary declared emergency period. FSRA’s guidance supports the public interest by providing the ability to offer emergency premium refunds and rebates, permitting insurers to make emergency relief rate filings with immediate effect to reduce automobile insurance rates, and includes a variety of other available actions insurers have the discretion to use to assist customers. This guidance supports the implementation of amendments to Ontario Regulation 7/00 (“Unfair or Deceptive Acts or Practices – UDAP”) approved by the Ontario Government on April 15, 2020. FSRA would like to acknowledge those insurers who have already taken steps to assist their customers affected by the disruption, and encourage all insurers to explore how they may provide relief at this time. Customers who have questions about their policy or any programs that their...

The NAIC’s Statutory Accounting Principles (E) Working Group adopted three interpretations related to COVID-19 last week. The statutory accounting exceptions allows insurance reporting entities to respond to policyholder needs for premium payment delays and address mortgage loan modification or forbearance requests, while mitigating insurance reporting entity concerns on the impact to statutory financial statements. The interpretations provide additional time for insurance reporting entities to collect premium receivables before reporting the receivable as non-admitted in the statutory financial statements. In addition, the interpretations provide allowances to insurance reporting entities in classifying a mortgage loan or bank loan, which was modified in response to COVID-19, as a troubled debt restructuring. Finally, the provisions allow deferred insurance reporting entity impairment assessments for bank loans, mortgage loans and investments, which predominantly hold mortgage loans due to forbearance or modifications, in response to COVID-19. The interpretations are designed to provide limited-time exceptions, but the Working Group has committed to continue to review the environment in response to COVID-19 and will consider whether extensions or additional interpretations are necessary. Here is a summary of the three changes: INT 20-02: Extension of Ninety-Day Rule for the Impact of COVID-19. This interpretation provides an optional extension of the...

Pacesetter’s new LiveClaims solution virtually connects P&C insurers, policyholders, third-party claims adjusters and insurance agents to enhance the policyholder experience, lower loss adjustment expense (LAE) and minimize on-site contact in the new COVID-19 economy Columbus, OH (Apr. 15, 2020) – Pacesetter Claims Service, OnSeen Inc., and HOVER announced today the launch of the LiveClaims Solution that will become the foundation of Pacesetter’s new and streamlined field adjustment workflow. LiveClaims virtually connects all parties involved in the claim adjustment workflow in real-time through an affordable, easy-to-use, mobile-web platform. LiveClaims enhances the policyholder experience by providing a personalized portal for each policyholder where they can: Monitor the status and details of their claim; View a detailed HOVER property data package, which is auto-generated from pictures taken from the adjuster’s phone; Track the adjuster’s location and arrival time when they are en route for the scheduled adjustment appointment; Receive automatic claims status notifications throughout the adjustment process; and Participate and assist with their claims process by uploading photos, notes and related docs. “Our claims adjustment process, prior to OnSeen and HOVER, involved several disconnected systems, did not effectively embrace the policyholder and was inefficient,” said Bill Brassfield, CEO of Pacesetter. “LiveClaims allows us...

GlobeNewswire Old National Bancorp (NASDAQ: ONB) reports 1Q20 net income of $22.6 million, diluted EPS of $0.13.Adjusted1 net income of $42.1 million, or $0.25 per diluted share. CEO COMMENTARY: “While we are pleased with our 1st quarter progress and the implementation of the ONB Way strategic initiatives, our commitment and focus today is on supporting our clients, team members and communities during the COVID-19 pandemic,” said Chairman & CEO Jim Ryan. “With this goal in mind, we are giving $1.2 million to COVID-19 relief efforts – both immediate and near-term – while also working diligently to help our clients take advantage of our own internal relief programs and the various government support programs. I’d also like to thank our team members for their hard work and unwavering commitment to serving our clients and communities during this difficult time.” FIRST QUARTER HIGHLIGHTS2: Net Income Net income of $22.6 million Earnings per share of $0.13 Net Interest Income/NIM Net interest income on a fully taxable equivalent basis was $147.1 million compared to $152.2 million Net interest margin on a fully taxable equivalent basis was 3.31% compared to 3.46% Operating Performance Advertisements Pre-provision net revenue1 (“PPNR”) was $45.9 million Adjusted PPNR1 was $77.4...

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...