Insurable Interest Canadian Insurance Blog

Staff | October 1, 2019 The solvency positions of Canadian defined benefit pension plans declined slightly in the third quarter of 2019, according to new surveys from Aon and Mercer. Aon’s latest median solvency ratio survey reported a drop to 98.6 per cent from 99.3 per cent in the second quarter, while Mercer’s pension health index recorded 94 per cent compared to 95 per cent in the previous quarter. Overall, plan solvency remained high, but with bond yields declining and asset returns stalling in response to global economic uncertainty, Aon is painting a murky economic picture that should be seen as a warning sign for plan sponsors. Read: Canadian DB pension solvency on the rise but volatility ahead “Bond yields continued to fall in the third quarter, and the risk that equity returns are going to follow them is become more and more clear,” said Erwan Pirou, chief investment officer for Aon’s delegated investment solutions in Canada. “Economic uncertainty seems to have set in to financial markets, which means we don’t foresee a sustainable rebound in yields anytime soon. That’s increasing plan liabilities at the same time that the return horizon for equities is looking murky. “Aon’s research shows that plan sponsors are increasingly turning to alternative...

Canadian mutual insurer to leverage Guidewire ClaimCenter in the cloud to drive claims management innovation Cambridge, ON (Sept. 30, 2019) – Gore Mutual Insurance Company, a Canadian mutual insurer, and Guidewire Software, Inc., provider of the industry platform Property and Casualty (P&C) insurers rely upon, have announced that Gore Mutual has selected Guidewire ClaimCenter™, the Guidewire InsurancePlatform™ claims management application, as part of its claims technology transformation. ClaimCenter will be implemented and delivered as a Software-as-a-Service (SaaS) solution via Guidewire Cloud™, which is powered by Amazon Web Services (AWS). “We had optimized our previous claims management system to its highest potential, and there wasn’t much more we could do to continue driving positive change or experience with that platform,” said Sean Christie, chief information officer and vice president, Information Services, Gore Mutual. “We see ClaimCenter and Guidewire Cloud as core to our claims technology transformation, and we look forward to taking advantage of the scalability, agility, reliability, and security a cloud platform offers for the future.” Neil Weir, vice president, Claims, Gore Mutual, said, “Last year, we launched our ClaimCare approach, which is our new way of delivering a customer-centric claims experience to our brokers and customers. With ClaimCare, we...

Hartford, CT (Sept. 30, 2019) – The Travelers Companies, Inc. has announced the results of the 2019 Travelers Risk Index, which found that cyber risks are the top concern among businesses of all sizes for the first time since the survey began in 2014. Of the 1,200 business leaders who participated in the survey, 55% said they worry some or a great deal about cyber risks, ahead of medical cost inflation (54%), employee benefit costs (53%), the ability to attract and retain talent (46%) and legal liability (44%). As concerns about cyber threats have grown, a higher percentage of businesses across nearly every industry reported taking proactive measures to safeguard against cyber risks — although a sizable percentage have not implemented such preventive best practices. The steps taken by respondents include: Purchasing a cyber insurance policy (51% of survey participants, up from 39% last year). Creating a business continuity plan in the event of a cyber attack (47%, up from 38%). Taking a cyber risk assessment for themselves (49%, up from 45%) and their vendors (41%, up from 37%). Updating computer passwords (74%, up from 71%). “The Travelers Risk Index shows that more businesses are taking steps to prevent a...

Loyalty programs represent an ideal platform for businesses to introduce blockchain-enabled tokenization and build brand equity among consumers: KPMG Study Toronto, ON (Sept. 23, 2019) – The Tokenization, Loyalty and Blockchain survey by KPMG LLP revealed that consumers across all age groups are increasingly willing to make purchases with tokens, indicating a wide range of new opportunities for businesses to engage with their customers and transform commerce using blockchain. The findings highlight the strategic business value of blockchain infrastructure and the opportunities for businesses to leverage the technology for transparent, immutable and frictionless transactions. “Tokenization is ushering in the next generation of commerce,” said Arun Ghosh, KPMG US Blockchain Leader. “It provides inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency of blockchain. Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams and customer engagement opportunities.” While just one-third of consumers are highly familiar with this contemporary, blockchain-based definition of tokens, the majority of that group (63 percent) perceive tokens as an easy form of payment, and 55 percent believe tokens will enable them to make better use of loyalty...

London, UK (Sept. 30, 2019) – Lloyd’s has launched the Future at Lloyd’s Blueprint One which describes Lloyd’s strategy to build the most advanced insurance marketplace in the world. The blueprint includes details of the initiatives that will be delivered for customers and market participants during 2020. The publication of Blueprint One follows the unveiling of the Future at Lloyd’s prospectus on 1 May 2019, and marks the first in a series of updates which will be issued at least annually. This first blueprint sets out six ideas of improved ways of working, underpinned by a heightened focus on digital, data and technology to deliver greater benefits to customers. The document describes the solutions and, importantly, the way in which the ambition set out in the Future at Lloyd’s will be delivered by strong transition and execution planning, followed by a series of phased deliveries. Phase I will be delivered during 2020 and will include early quick wins, including the launch of an electronic risk exchange which could, over time, process as much as 40% of Lloyd’s risks. In addition, Lloyd’s will pilot a solution that automatically triages claims to speed up settlement and introduce simplified onboarding for Lloyd’s coverholders....

Business Wire New York Life announced today that Alain Karaoglan has joined the company as Senior Vice President with oversight of a portfolio of strategic insurance businesses that includes Group Membership Association Division, Institutional Annuities, Institutional Life, New York Life Direct, and Seguros Monterrey New York Life. This diverse set of businesses significantly supports New York Life’s earnings and industry-leading financial strength. Mr. Karaoglan will report to Craig DeSanto, the company’s Co-Chief Operating Officer. Mr. Karaoglan joins New York Life after serving as Chief Operating Officer for Voya Financial from 2012 to 2018, where he was a member of Voya’s Executive Committee and oversaw all of Voya’s businesses, including Annuities, Employee Benefits, Individual Life, Investment Management, and Retirement. Before joining Voya, he was the head of Divestitures at American International Group, where he helped restructure the company after the 2008 financial crisis. Previously, Mr. Karaoglan held senior roles in the investment banking and insurance industries, including at Banc of America, Deutsche Bank, Donaldson Lufkin & Jenrette, and Bear Stearns. He has a Master of Business Administration from the Tuck School of Business at Dartmouth College and a Bachelor of Arts in Economics and a Bachelor of Science in Business Administration,...

October Traffic Safety Spotlight on distracted driving: the solution – like the problem – is “out of hand” Regina, SK (Oct. 1, 2019) – If the past four months are any indication, police across Saskatchewan will issue around 1,000 distracted driving tickets during the month of October – maybe more, since it’s the focus of this month’s Traffic Safety Spotlight. The number of distracted drivers has gotten out of hand. Since most distracted driving tickets are for cellphone use while driving, keeping your phone “out of hand” is a great place to start if you want to avoid a ticket. Despite the $280 fine, four demerits and vehicle impoundments for repeat offenders, too many drivers are still making it too easy for police to keep setting monthly records for distracted driving tickets. “The provincial government is seriously looking at tougher penalties to deter this dangerous behaviour,” said Minister responsible for SGI Joe Hargrave. “So put the phone away, avoid other distractions and keep your focus on the road.” Here are a few more tips to keep in mind: Do mount your phone on your dash or – better yet, stash it in the glovebox or backseat – so you keep...

Staff | September 30, 2019 More than half (52 per cent) of institutional investors said they think a political or world event, such as Brexit, will impact portfolio performance over the next 12 months, according to a survey by Schroders. And that number is on the rise. The survey, which polled 650 institutional investors with a combined US$25.4 trillion in assets, found 32 per cent said the same in 2017 and 44 per cent did so in 2018. The percentage of respondents that said a global economic slowdown was their biggest concern was also on the rise, reaching 37 per cent this year, up from 27 per cent in 2018. “Institutional investors can be forgiven for beginning to fear the worst,” said Charles Prideaux, global head of investment at Schroders, in a press release. “A number of geopolitical uncertainties have been hanging over their heads for some time now and it currently is impossible to say if there is any sign of these concerns abating.” Read: How are trade jitters, geopolitical risk affecting equities? As far as investor appetite, institutional investor interest in emerging markets has fallen, with allocations dropping from 15 per cent in 2017 to 10 per cent today. The survey also found only nine per...

Staff | September 30, 2019 As Canadians struggle to make ends meet and manage growing debt, they’re increasing putting their future financial plans — including retirement — on the back burner, according to a new survey by BDO Canada. The survey, which polled more than 2,000 Canadians, found more — 39 per cent compared to 31 per cent in 2018 — said they have no retirement savings, including 32 per cent of baby boomers and seniors. Read: Majority of Canadians worried about level of retirement savings: survey Meanwhile, 38 per cent of generation X said they have no retirement savings, compared to 33 per cent in 2018. Almost half (47 per cent) said they can’t afford to save for retirement and 19 per cent said they need to pay off debts first. “An increasing number of Canadians in their 40s and 50s are financially stretched and unprepared for retirement and unexpected costs,” said Doug Jones, president of BDO Canada’s financial recovery services practice, in a press release. “This can lead to a greater reliance on debt to support living expenses.” The majority (82 per cent) of working Canadians said they think younger generations will have to work longer than the generation before them, compared to 75 per cent...

Remarks by Don Forgeron, IBC, the 2019 National Insurance Conference of Canada Toronto, ON (Sept. 24, 2019) – At the NICC on Sept. 23, Don Forgeron, President & CEO of the Insurance Bureau of Canada, explored key issues facing the insurance industry and made some predictions about what to expect over the next year. Don noted that the companies represented in the audience “compete with one another every day” but also have “common ground on some issues – and can work in common purpose. That’s where IBC comes in. We are the voice of our industry. We work to advance the interests of our members and everyone who works in this business.” Don discussed five of the most critical issues facing the insurance industry in Canada. For each, he posited an ideal outcome and – separately – the probable outcome: Auto insurance, across the country – with many differences among the provinces; Fraud, across all lines, but perhaps most obviously in auto insurance; Digital insurance, together with the Office of the Superintendent of Financial Institutions (OSFI), and specifically the reinsurance review; The era of autonomous vehicles; The challenge of climate change and the increasing frequency of natural catastrophe events. Don...