Insurable Interest Canadian Insurance Blog

Business Wire Many market participants in the fraternal segment of the U.S. life insurance industry are struggling to stay relevant, given their limited financial resources and difficulties in growing membership, according to a new AM Best report. A new Best’s Market Segment Report, titled, “U.S. Fraternals Face a Difficult Growth Environment,” states that this trend is reflected by the segment’s premium growth, which was relatively flat in 2018, and has largely remained that way for nearly the last decade. AM Best believes fraternal insurance companies must move quickly on embracing newer technologies to the extent that they can or face the risk of falling behind. Net premiums written (NPW) for the 44 U.S. life fraternal companies covered in this report have hovered around $10 billion in each of the past eight years. The fraternal population has attempted to remain competitive with the rest of the life/annuity segment by guaranteeing higher minimum interest rates on its individual annuity business, which elevates the fraternals’ risk profiles and pressures operating results. Still, according to the report, the fraternal segment substantially improved operating results in 2018, recording an 85% increase in net income to $1.6 billion. The favorable operating results have allowed for consistent...

Martha Porado | October 9, 2019 Most (80 per cent) Canadians said they’d rather have an improved pension, or any pension, than a higher salary, according to new research by the Healthcare of Ontario Pension Plan. The survey of 2,500 Canadians found more (75 per cent) respondents are worried about being able to save enough for retirement than are primarily concerned over personal debt (55 per cent). “Canadian public opinion is optimistic, grateful, but increasingly anxious,” said David Coletto, chief executive officer of Abacus Data, at an event in Toronto on Tuesday. His firm worked with the HOOPP on the survey. “There’s a broad understanding across the country that Canadian pension quality is on the decline,” he said. Read: University of Saskatchewan, Community Living Toronto join CAAT’s DBplus pension As far as sentiment over the future of pensions in Canada, 81 per cent of respondents said they believe the reduction in workplace pension coverage will affect the overall quality of life for Canadians. And 78 per cent said they believe there’s a moral obligation to ensure Canadian children have the same level and quality of pension coverage as their parents and grandparents had. Further, 83 per cent said they believe the government should modernize regulations...

Associated Press The Auschwitz concentration camp was a complex of over 40 concentration and extermination camps built and operated by Nazi Germany in occupied Poland during World War II. AVENTURA, Fla. (AP) — When David Schaecter was a child in Slovakia in the 1930s, he counted more than 100 people in his extended family. By the end of World War II, he alone survived. The rest had been killed in Nazi concentration camps or by roving SS death squads. Schaecter lost not only his family, but all they owned, including life insurance covering his murdered relatives. And as time runs out on aging Holocaust survivors, some are trying to recover insurance policies that were not honored by Nazi-era companies, which could be worth at least $25 billion altogether in today’s dollars, according to the Holocaust Survivors’ Foundation USA. The survivors want to take insurance companies to court in the U.S. to recover the money, but it would take an act of Congress to allow it. For nearly two decades, the foundation members have tried and failed to gain access to U.S. courts. “This is an insult to humanity,” said Schaecter, 90, president of the organization and a survivor of the...

The National Institute on Ageing (NIA) has released a report projecting that long-term care costs will more than triple within 30 years, from $22 billion today to $71 billion by 2050. With baby boomers starting to turn 75 next year, time is running out to improve system sustainability and the availability and quality of long-term care options in Canada. A generation of Canadian seniors is at risk of going with unmet care needs as they age. This projected increase in cost would amount to 19% of personal income tax by 2050, up considerably from 9% today – expressed as a proportion of total provincial and federal personal income tax revenue. The Future Cost of Long-Term Care in Canada by Dr. Bonnie-Jeanne MacDonald, Dr. Michael Wolfson, and Dr. John Hirdes, builds on Statistics Canada’s population microsimulation model to project the future costs of long-term care in Canada to both the public purse as well as the care support provided to Canadian seniors by their families. By quantifying the economic and personal costs that Canada will face in home- and nursing home care by continuing to follow its current path, the report is intended to promote informed and targeted discussion by governments,...

Medavie Blue Cross has enhanced its services to plan members with a new digital health platform. Through Connected Care, the company said it is providing greater flexibility to innovative offerings, new virtual health care services, and additional self-service options. Citing survey figures from the Canadian Medical Association, the firm said that virtual care would allow access to more timely treatment (a view held by nearly three quarters of Canadians) and lead to better overall health care (60% of Canadians). But according to Canada Health Infoway, just 6% of Canadians are able to see their own physician through virtual care. The Connected Care platform, which members can access through a mobile app and online via the Medavie Blue Cross member services site, offers opportunities to access specialized services provided by selected partners. “Connected Care offers convenient access and preferred pricing to leading online health care providers and services, so members can access the care they want, when they need it, from anywhere,” said Shane Reid, Director, Product, Pharmacy, and Provider Management. The virtual health care services offered on the platform include: 24/7 on-demand access to doctors, provided by virtual-care leader Maple. Plan members can get advice, diagnosis, and prescription through secure text or...

While expanding Canadians’ access to medicine is a noble endeavour, a policy expert is arguing that creating a pharmacare monopoly is not the right path forward. “At the moment, various governments in Canada fund 43 per cent of total out-of-hospital prescription drug expenses,” wrote Michel Kelly-Gagnon, president and CEO of the Montreal Economic Institute, in a piece for the Financial Post. The rest, he said, is split between private insurance plans (36%) and individual out-of-pocket expenses. Under the current mixed system, the vast majority of public drug spending occurs at the provincial and territorial level. Citing a report by the government’s Advisory Council, replacing the mixed system with a monopolistic government-run program would result in a net cost increase of $15.3 billion by 2027, which would translate into around $1,000 in additional taxes per year for every Canadian household. “[T]here is simply no way that this new burden could be borne solely by “the rich,” no matter how you define them,” he contended. Another problem is reduced access to drugs for many. Kelly-Gagnon noted that government generally controls health-care costs by rationing access to new drugs, and it will likely continue to do so under a national, government-only pharmacare regime....

The OmbudService for Life and Health Insurance (OLHI) has announced its selection of Marjolaine Cantin, a veteran in the life and health insurance industry, as its senior deputy ombudsman. In the newly created role, Cantin will report to OLHI Ombudsman and CEO Glenn O’Farrel, who is also a recent appointment. She will have overall responsibility and management of the OLHI complaints process, which includes assigning, managing, and reviewing the work of OLHI complain analysts as well as that of OLHI’s subject matter experts. “I look forward to continuing to contribute to OLHI’s success with the support of our CEO and Ombudsman and the very talented and dedicated members of our team,” Cantin said. In a statement, the organization cited Cantin’s insurance law expertise, diligence, and ethical conduct in dealings with consumers, insurance companies, and OLHI regulators over the past few years. As a lawyer who has spent nearly 25 years in the life and health insurance industry, she has developed a deep understanding of alternative dispute resolution. Cantin’s resume including stints as a senior litigation consultant and compliance management roles, as well as experience in travel insurance. A law graduate from Université Laval, she is also a member of the Quebec...

Acquisition will add deep expertise in IoT engineering and software platform development to Accenture Industry X.0 New York, NY (Oct. 3, 2019) – Accenture is pleased to announce it has entered into an agreement to acquire Nytec Inc., an award-winning product innovation and engineering company. Founded in 1975, Nytec is headquartered in Kirkland, WA, and has a team of 250 professionals. Nytec will become part of Accenture Industry X.0, which offers capabilities that drive the digital reinvention of industry. This includes creating new types of products, services and experiences, and better ways to design, engineer, manufacture, operate and support them across their entire lifecycle. Nytec will expand Accenture Industry X.0’s ability to innovate connected, Internet-of-Things (IoT)-enabled experiences for clients from idea through to realization — an area in which both Accenture and Nytec have already demonstrated success. Nytec is Select Innovation Partner for IoT Equipment Design and Engineering for Carnival Corporation’s Ocean Medallion™ guest experience transformation, while Accenture has been named Premier Innovation Partner for Carnival Corporation’s Global Experience and Innovation Team. Nytec will add deep expertise in software platform development and engineering to Accenture Industry X.0 that is required to build the underlying IoT infrastructure and systems for connected...

Staff | October 8, 2019 While society at large is promoting conversations around mental health, stigma is still entrenched in the workplace, according to a new survey by Teladoc Health Inc. The survey was conducted in four countries —Australia, Canada, the U.K. and the U.S. — with 3,894 total participants and 964 in Canada. It found 27 per cent of respondents said they’re afraid of disclosing mental-health issues in the workplace. In Australia, Canada and the U.K., this was up to 32 per cent. And the overall rate, at 38 per cent, was higher among respondents who had already been diagnosed with a mental-health condition. However, the same percentage (27 per cent) of respondents said they disclosed a mental-health diagnosis at work. Read: Specific solutions required to move dial on mental-health treatment, costs “Our study confirms that stigma surrounding mental health not only exists in the workplace but is deeply rooted,” said Jason Gorevic, chief executive officer at Teladoc Health, in a press release. “With the younger generation fuelling our workforces and necessitating leaders to take action, the time is now to tackle this pressing global issue.” More than half (55 per cent) of respondents said they wouldn’t share their mental-health issues in the workplace because...

Staff | October 8, 2019 Schroders is appointing Marc Brookman as chief executive officer of its North American operations. Karl Dasher, the current CEO of North America and co-head of fixed income, will be leaving the firm at the end of the year. Before joining Schroders in 2018 as deputy CEO of North America, Brookman was managing director and head of institutional wealth services at Morgan Stanley. Prior to that role he was head of institutional and retirement at New York Life Investment Management. Read: Schroders names new head of Canada, SLC new head of client solutions “I am confident the appointment of Marc Brookman to CEO in North America will ensure we continue to service clients’ best interests across North America,” said Peter Harrison, group chief executive at Schroders, in a press release. “We thank Karl for the very positive contribution he has made to the firm.” Read the full article at BenefitsCanada.com