Insurable Interest Canadian Insurance Blog

PR Newswire U.S. insurance companies are rapidly adopting new technologies such as artificial intelligence and drones to better serve their customers, and they are looking to business process outsourcing (BPO) providers to help them roll out these advancements, according to a new report published today by Information Services Group, a leading global technology research and advisory firm. The 2019 ISG Provider Lens™ Insurance BPO Digital Services Report for the U.S. finds the insurance market embracing AI and other automation technologies to improve everything from accuracy in underwriting to claims processing. Insurers are using drones to check on property damage, and they are enabling robo advisors to provide personalized services to customers. “The insurance industry is one of the early adopters of automation,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Insurers have a vast number of applications for robotic process automation, and service providers are introducing bots that can help carriers with underwriting, claims processing, data entry, billing and several other functions.” Insurance carriers increasingly are looking to collect data from Internet-connected devices like wearables and connected cars to calculate premiums and investigate claims, the report adds. The Internet of Things will transform and empower insurers...

Average transaction on Apollo’s US product is $4,954, indicating that large insurance business is starting to move online Toronto, ON (Oct. 17, 2019) – Since launching a liability product in the US last month, the Apollo Exchange has seen an average policy transaction of $4,954 on that product, which is entirely digital. The average quote has been higher, at $8,357. Customers requiring coverage can self-serve from the white labeled website, pay by credit card or ACH transfer powered by the Exchange technology platform, and have their policy emailed to them in less than five minutes. Although to this point the focus of digital insurance has generally been on smaller and typically personal lines accounts, this analysis from Apollo shows that larger premium commercial business has already begun shifting online. “What we’re seeing here is a departure from thinking about digital insurance as only capable of serving small, cookie cutter one-off policies,” said Apollo Exchange CEO Jeff McCann. “As digital begins to become the norm and our algorithms become more sophisticated, we’re going to see the average premiums rise. Brokers and insurance companies alike should consider this data and rethink the capabilities of insurtech in today’s market. This isn’t something in...

Canadian general insurer completes implementation of cloud platform with industry-leading partners Lindsay, ON (Oct. 15, 2019) – The Commonwell Mutual Insurance Group (CMIG) is announcing the successful implementation of an industry-leading insurance technology platform that is modernizing its technology infrastructure to provide an improved experience for policyholders and to drive innovation, speed to market and long-term business growth. The company originally announced the project in January 2018, partnering with two internationally respected and leading firms: Deloitte Inc., and Guidewire Software, Inc., to develop and deploy this new technology. Tim Shauf, president and chief executive officer, The Commonwell, said, “We realized that our goal of significantly increasing our premium growth and membership, while maintaining our high standards of member value, broker experience, and employee engagement, required a fundamental shift in how our supporting technology was deployed.” By deploying InsurCloud, The Commonwell has successfully delivered immediate member experience benefits as part of our strategic business transformation, both across our organization and distribution partner network.” “The new technology platform has significantly enhanced our member, agent, and broker experience by increasing efficiencies in underwriting, billing, and rating accuracy,” said Enrico Mastrangeli, CMIG Vice President, Distribution and Member Innovation. “Through Commonwell Connect, our brokers will...

SaaS-enabled ALLFINANZ SPARK solution set to transform life insurance for even more firms and their clients Dublin, Ireland (Oct. 15, 2019) – Munich Re Automation Solutions Ltd, a leading InsurTech specialist and subsidiary of the Munich Re group, is bringing its auto-underwriting expertise to the global mid-tier insurance market with ALLFINANZ SPARK, one of its SaaS solutions. As a hosted service, SPARK gives mid-tier firms the opportunity to automate their underwriting processes, explore valuable new opportunities, and positively transform their customer’s experience of life insurance. “By offering auto-underwriting and analytics on a SaaS model we are removing many of the upfront costs and implementation barriers to entry that mid-tier firms face, while providing the full power of our enterprise application,” says Declan O’Neill, EVP Product & Data at Munich Re Automation Solutions. “As a result, they can automate and accelerate customer onboarding, eliminate error-prone paperwork, repetitive questions and medical tests, and bring the power of analytical insights to their underwriting business. This means a more responsive, more agile business. Our customers who have already deployed SPARK on a SaaS basis have reported substantial improvements in client satisfaction as a result.” ALLFINANZ SPARK enables firms to input their own sources of...

Foresters Financial today announces that it has entered into a definitive agreement with Nassau Financial Group, subsidiary Nassau Life Insurance Company, to acquire Foresters Financial Holding Company, Inc. and its subsidiary Foresters Life Insurance and Annuity Company. NNY and FLIAC are New York-domiciled life insurance companies. The sale marks the final stage of Foresters strategy of exiting its North American Asset Management business, which commenced earlier this year with the sale of its asset management and broker dealer businesses. “Following the sale of our US and Canadian asset management businesses earlier this year, this transaction is in step with our strategy of focusing on fixed life insurance in North America and continuing to grow as a purpose-driven international fraternal benefit society. We will continue to evolve our business by focusing on innovation, new product development and independent distribution to best serve our members,” said Jim Boyle, President and Chief Executive Officer, Foresters Financial. The transaction is expected to close in the first quarter 2020 and is subject to customary closing conditions including regulatory approval by the New York State Department of Financial Services. Founded in 1962, FLIAC is a provider of life insurance and annuity products with 112,000 policyholders throughout...

Staff | October 17, 2019 Globally, institutional investors are shifting more of their assets to an environmental, social and governance-based approach, with year-over-year increases in Canada, the U.S. and the U.K., according to a new survey by RBC Global Asset Management. Regionally, the percentage of survey respondents that reported using ESG principles “significantly” as opposed to “somewhat” rose slightly in the U.S. (up about three per cent from 2018), more significantly in Canada (up more than five per cent) and rapidly in the U.K. (up 30 per cent). The survey also found the top reason institutional investors are incorporating this approach is mitigating risk and enhancing returns, cited by 53 per cent of respondents. Read: Institutional investors increasingly see ESG as source of alpha: survey The responsible investing market is showing signs of maturing, suggested the survey. The percentage of institutional investors that said they use ESG principles as part of their investment approach and decision-making process remained relatively flat, at 70 per cent, compared to last year. However, on a regional basis, the percentage of institutional investors in the U.K. and Canada that “significantly” or “somewhat” adopt ESG factors continued to tick upward, reaching 97 per cent and 80 per cent, respectively. In...

Staff | October 17, 2019 As Canadian employers seek to attract and retain top talent, the majority (66 per cent) are focusing on making salaries more competitive, according to a new survey by Arthur J. Gallagher & Co. However, the survey’s respondents are aware salary isn’t everything. One-third (34 per cent) of employers said they’re upgrading their well-being initiatives to attract talent and 26 per cent said they’re improving leave policies. The survey of 506 Canadian organizations found the majority said they expect both revenue and headcount to increase by 2021. As they prepare for those changes, 55 per cent said their most common challenge is controlling benefits costs, while around the same amount (54 per cent) cited attracting and retaining a strong employee base. Read: In workplace wellness programs, is it better to use the carrot or the stick? Employers are taking “incremental” steps to improve non-core benefits, the survey found. Almost six in 10 (59 per cent) employers said they now offer short-term disability plans, while 64 per cent said they have an education subsidy. While fewer (53 per cent compared to 62 per cent) employers said they offer personal days compared to 2018, the number of vacation weeks offered to new hires has increased. Almost half (47 per cent)...

Staff | October 17, 2019 An organization that leverages its more experienced workforce — employees aged 50 years and older — will be well-positioned for the future of work, according to a new report by Mercer. The importance of being “age-ready” is underscored for both businesses and economies, because of a rapidly aging labour force coupled with an uncertain global economic growth rate, it said. “With labour force size, participation rate and productivity so closely tied to business and economic growth, the experienced workforce is a source of talent and competitive advantage that employers need to embrace now,” said Pat Milligan, senior partner and global leader of Mercer’s multinational client group. “To be ‘age-ready,’ however, requires a thoughtful and careful analysis of this workforce segment, as well as a change in mindset as to how experienced workers truly add value to organizations.” Read: Older employees to make up larger portion of Canadian workforce Experienced workers are particularly valuable to employers for a variety of reasons, including: They lower costs because they’re less likely to leave; As supervisors, they tend to retain, develop and engage more junior employees and decrease voluntary leave on teams they manage; They increase productivity of those around them through knowledge sharing; They strengthen...

Sun News (Myrtle Beach, SC) A murder-for-hire killing that left a father and son dead in Loris will be featured on an upcoming Investigation Discovery television show. The crime-focused channel will air a new episode at 9 p.m. Oct. 22 of “Relatively Evil,” which recounts the killing of Amos Hatfield and his son, Tommy. Investigation Discovery is channel 138 on Spectrum and channel 285 on DirectTV. Amos Hatfield’s wife, Sandy Locklear, is featured on the show. Initially, Locklear said she was the victim of a sexual assault, but police soon charged her with murder. She is serving life in prison and is housed at the Graham Correctional Institution in Columbia. Odom Bryant is also serving life in prison for his roles in the murder. Nehemiah James Evans was also convicted of murder and sentenced to 30 years in prison. Prosecutors said the Locklear, Bryant and Evans conspired to kill for a $1 million life insurance policy. The Hatfields were found dead in the Loris home where the two were shot execution-style. “I’m sorry for what happened to the victims and their family,” Evans said before sentencing in 2015. “I will take responsibility even though I did not see the crime...

Staff | October 16, 2019 The Caisse de dépôt et placement du Québec’s real estate arm Ivanhoé Cambridge, along with real estate manager ICAMAP, is taking over EasyHotel, a European budget hotel chain. The hotel chain, which was started by the founder of EasyJet Airline Company Ltd., targets the super-budget segment of the market. It has a total of 39 hotels total, 27 of which are franchised and 12 that are owned directly. As of Aug. 2, 2019, the ICAMAP fund was the largest shareholder in EasyHotel with a 38.7 per cent stake.  “For some time, ICAMAP had believed that finding another equally supportive investor to share its commitment to developing EasyHotel was a priority for the company,” said a press release. “ICAMAP was therefore delighted to partner up with Ivanhoé Cambridge, an existing investor in the ICAMAP fund, to achieve its ambitions for the company. Ivanhoé Cambridge, like ICAMAP, recognizes that EasyHotel needs significant investment to ensure it can fulfil its potential as a leading European budget hotel company.” Read: Caisse ups stake in European multi-technical service provider The two companies launched a recommended offer on the share capital not owned by the ICAMAP fund on Aug. 5, 2019. Together, the companies now...