Insurable Interest Canadian Insurance Blog

Insurance coverage includes Paladin Shield cybersecurity platform New York, NY (Nov. 19, 2019) – Argo Group International Holdings, Ltd., an international underwriter of specialty insurance and reinsurance, has launched Argo Cyber Sphere, a breakthrough digital solution for small and mid-sized businesses with annual revenue up to $50 million that combines a compelling range of first- and third-party cyber-risk insurance coverages with full cybersecurity protection. Cyber Sphere also provides a suite of preventive tools and coverages to protect insureds against ransomware, social engineering, malware, DDOS attacks and other cyber-related exposures. These tools will be administered by Paladin Cyber. The loss-control and risk-management program is created for the needs and resources of small to medium-size businesses throughout the U.S. Paladin Cyber, an insuretech headquartered in San Francisco, has developed a suite of software defending against the most common and potentially problematic cyber threats facing small- to medium-size businesses. In addition to active network, password and email defense, Paladin’s services include employee education and assessment. Designed to address the needs and resources of smaller businesses, the suite of tools can be deployed and managed without any in-house cybersecurity expertise. “Argo is aggressively advancing our suite of services to protect insureds from the constantly...

Staff | November 26, 2019 The outsourced chief investment officer market could be reaching its natural maturity, according to a new survey by Cerulli Associates Inc. Globally, OCIO assets under management nearly reached US$2 trillion at the end of 2018. While the U.S. experienced 7.8 per cent growth over the past year, the report noted growth may prove more modest in the coming years. In looking at new avenues of growth, it found OCIOs will have to take on new practices around performance reporting, as well as leveraging relationships with search consultants and broadening the geography of potential opportunities. Read: Head to head: Is there a place for OCIOs in DC pension plans? As the market grows, increasing competition has also put pressure on OCIO fees as investors become more aware of their various options, the report found. Indeed, competition (57 per cent) and fee comparison between peers (43 per cent) were the top ranked challenges faced by OCIO providers. And nearly three-quarters (72 per cent) of OCIOs said they’ve reduced their published fee schedules over the past three years. “The resulting economies of scale for the larger players make it easier for them to lower fees [and], as a result, smaller players need to come to the table with a competitive value proposition,”...

Julius Melnitzer | November 26, 2019 The Ontario Court of Appeal is poised to hear a case that could clear up the conflicting jurisprudence regarding the point at which limitation periods that apply to disability claims start to run. “The decisions from lower courts are all over the place and the court will have to reconcile them,” says Nainesh Kotak, a lawyer at Kotak Disability Law in Toronto. The case, Clarke v. Sun Life Assurance Co. of Canada, originates with April Clarke, who was a postal worker with Canada Post from 1999 until 2011 when health issues caused her to leave work. At the outset, she received disability benefits through her group benefits plan with Sun Life. But in February 2014, the insurer wrote her a letter terminating her benefits. Read: Long-term disability claims expected to fall in 2019: research The precise wording of the letter is critical to the outcome of the case, with the relevant part reading as follows: “The current medical information in your file does not appear to support total disability from any occupation. Therefore, your last payment date is April 25, 2013 and your LTD file is now closed. “Should you feel totally disabled from any occupation, you will need to...

I must confess that the topic of climate change had not been a central focus of my earlier insurance & technology blogs. I know that there are changes occurring on the earth and in the atmosphere, and that these changes have the capacity to disrupt human activities and natural cycles alike. But I always assumed that “business as usual” would continue, for all of us – and the planet. I was wrong. When I started to look deeper, I found that the ongoing shifts are significant for all humans, and for livestock, wildlife, insects, and the earth itself. And the consequences of reaching certain thresholds will not be pretty. But there is some hope … sort of … The first big hint When it comes to innovation and the creation of new tools, one of the foremost organizations worldwide is the US government’s National Aeronautics and Space Administration. NASA is well-known for its accomplishments in aeronautics and (literally) in space, but its focus is not exclusively extraterrestrial. In the 1960s, geoscientists believed that Earth’s climate changed exclusively over intervals of many thousands of years. This was wrong. By 1979, a study of the impact of carbon dioxide on the climate...

Companies with more effective employee experience outperformed their peers for top-line growth, bottom-line profitability and return to shareholders Arlington, VA (Nov. 18, 2019) –  A new study by Willis Towers Watson, supported by advanced analytics, reveals for the first time a compelling and predictive link between employee experience (EX) and employer’s superior financial performance. The analysis is underpinned by a deep data source of employee feedback, including a survey of over 500 companies, close to 50 years of research and a total database approaching 250 million employees. The study found companies demonstrating a strong EX consistently beat their sector on average by a clear margin of 2 to 4 percentage points (pp) across key performance metrics, including return on assets and equity, one-year change in profitability, and three-year changes in revenue and profitability. In contrast, companies delivering less effective EX consistently underperformed their peers by 1pp to 10pp. “Our research shows that companies with a strong overall EX outperform their sector peers on top-line growth, profitability growth, and returns on assets and equity, not only in the short term, but over the long term too,” said Stephen Young, global practice leader, Employee Insights, Willis Towers Watson. “Meanwhile, companies with poor...

Software updates could enable higher levels of vehicle autonomy in coming years Stamford, CT (Nov. 14, 2019) – By 2023, worldwide net additions of vehicles equipped with hardware that could enable autonomous driving without human supervision will reach 745,705 units, up from 137,129 units in 2018, according to Gartner, Inc. In 2019, net additions will be 332,932 units. This growth will predominantly come from North America, Greater China and Western Europe, as countries in these regions become the first to introduce regulations around autonomous driving technology. Net additions represent the annual increase in the number of vehicles equipped with hardware for autonomous driving. They do not represent sales of physical units, but rather demonstrate the net change in vehicles that are autonomous-ready. “There are no advanced autonomous vehicles outside of the research and development stage operating on the world’s roads now,” said Jonathan Davenport, principal research analyst at Gartner. “There are currently vehicles with limited autonomous capabilities, yet they still rely on the supervision of a human driver. However, many of these vehicles have hardware, including cameras, radar, and in some cases, lidar sensors, that could support full autonomy. With an over-the-air software update, these vehicles could begin to operate...

Staff | November 25, 2019 Morneau Shepell Ltd. is partnering with the Canadian Football League Players’ Association to make its LifeWorks platform available to the league’s players. LifeWorks is a total well-being platform that supports users’ mental, physical, social and financial well-being. It will be provided to CFL players as part of the CFLPA Academy, which already offers career transition programs. Players will now have access to enhanced mental-health and wellness services for up to three years after their contract ends. Read: Morneau Shepell to acquire EAP, wellness provider LifeWorks “Whole-player health and well-being means providing CFL players the tools they need to address their physical, mental and emotional wellness while they’re playing and as they transition from the game,” said CFLPA executive director, Brian Ramsay, in a press release. “The CFLPA is excited to deliver this program to players alongside Morneau Shepell.” The platform provides confidential wellness assessments and resources, including videos, live chats and wellness support and assistance. It will also be available to players’ spouses and dependants. “We are pleased to work closely with the CFLPA to ensure the players are supported on and off the field,” said Norah Joyce, chief commercial officer for Canada and executive vice-president at Morneau Shepell. “We’re...

Staff | November 25, 2019 The United Way of Greater Toronto is the latest organization to join the Colleges of Applied Arts and Technology’s DBplus plan. Following a 90-day consent process, an overwhelming majority (99 per cent) of the 350 members of the organization’s defined benefit pension plan voted in favour of the move. Employees will begin contributing to and earning a pension under DBplus on Jan. 1, 2020. “We are delighted to be joining the CAAT DBplus plan after an enthusiastic endorsement from our members,” said Rahima Mamdani, vice-president of people and culture at the United Way of Greater Toronto, in a press release. “This move allows us to improve the pension plan we offer to our employees, helping ensure long-term, sustainable and secure retirement savings.” Read: CAAT to introduce new DB plan “We are honoured that United Way of Greater Toronto employees have invested their trust in CAAT and DBplus,” said Derek Dobson, chief executive officer and plan manager at the CAAT pension plan. “CAAT is proud of the contribution DBplus is making by simplifying pensions for employers and providing more Canadians with secure income in retirement.” The plan’s $25 million in assets will be transferred and its benefits will be replicated under the CAAT’s DBplus,...

Artificial Intelligence For Insurance Distribution Management: The Promises And Pitfalls White paper by David Kelly, Founder & CEO, Bobtrak Inc. Toronto, ON (Nov. 25, 2019) – The insurance industry is coming to embrace the idea that data analytics can be the key to unlocking higher revenue, greater share of wallet, reduced fraud, improved compliance, and enhanced customer and producer experiences.  It seems a no-brainer that every carrier would want to get in on the action. Unfortunately, it’s not intuitively obvious how to go about doing it. Which data do you analyze? What questions should you be asking it? How hard will it be to get the data to give up those answers? The good news is that there is an existing business process in the insurance enterprise that should be at the core of any effort at insurance analytics: the Producer Portfolio Management process – or simply, “book of business” – because it is a goldmine of rich and meaningful data.  This is where the data from policy management, producer management, incentives, and transaction systems all come together.  This is the data at the heart of distribution channel management. Carriers are already performing this data management process because, by regulation,...

Staff | November 25, 2019 The Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan are increasing their positions in Mexican infrastructure firm Impulsora del Desarrollo y el Empleo en América Latina. IDEAL has 18 concessions throughout Mexico, including 13 toll roads, three logistics terminals and two wastewater treatment plants, as well as an electronic toll collection service business and an operations business. The CPPIB and Ontario Teachers’ had previously partnered with IDEAL on two toll roads. In the new agreement, the pension funds committed to launch a tender offer on the Mexican stock exchange for shares in IDEAL at MXN$43.96, subject to certain conditions. If the tender is successful, the CPPIB will take a 23.7 per cent interest in IDEAL and the Ontario Teachers’ will take 16.3 per cent. IDEAL’s existing majority shareholders will retain their position. Read: CPPIB and Teachers’ invest in Mexican toll road In addition, the partnership will form an infrastructure investment trust, which will be managed by an IDEAL subsidiary and funded by certain shareholders of IDEAL and the two pension funds. The trust will purchase partial stakes in four of IDEAL’s toll roads. Once it’s formed, the CPPIB and the Ontario Teachers’ will launch a secondary offering to reduce their ownership of the trust...