Insurable Interest Canadian Insurance Blog

The Knights of Columbus, a Catholic fraternal organization and multi-billion-dollar life insurance company, has been accused of misreporting its membership numbers in an effort to get a better evaluation from insurance rating organizations. As reported by Buzzfeed News, the organization faces allegations made by UKnight, a Colorado-based IT firm that members of the Knights of Columbus hired to update communications software. According to survey data filed by the company in a U.S. federal court, the organization’s national rolls reflected 28% more members than reported by its local councils. “No matter how you count it, there is a huge disparity,” said Martin Shapiro, an expert witness chosen by UKnight to analyze the data. UKnight claims that the Knights have padded their membership books with thousands of “phantom members” — members who haven’t paid dues in years and are mostly unreachable. The result of the misreporting, the company said, is to inflate the Knights’ potential customer pool, as the organization is only able to sell its policies to its members. In his testimony in court, former Knights insurance agent John Hernandez said that some of the membership rolls are so outdated that they include members well past one hundred years old —...

There’s a divergence between what consumers think of annuities and what their advisors are telling them when it comes to retirement income solutions, according to a survey conducted by Greenwald & Associates and CANNEX. The fifth annual Guaranteed Lifetime Income Survey marked the first time researchers drew responses from both advisors and consumers. As reported by InsuranceNewsNet Magazine, participating consumers have a strong interest in guaranteed lifetime income, with two thirds saying they saw high value in having that on top of their government-provided pension. Despite holding that view, however, some participants still react negatively at the mention of the word “annuity.” According to the research, 35% of consumers would be less interested in a product offering guaranteed income if it were labelled as an annuity compared to if they were offered an unnamed product with the same benefits. The finding suggests that advisors must rely on communication and education to dispel any confusion over annuities, said Cannex Head of Annuity Research Tamiko Toland. “I think one of the confusing aspects of these products is that they actually provide a set of different values based on what the client is looking for,” she told the publication. “Sometimes they’re sold more...

Blue Cross Life Insurance Company of Canada and Pacific Blue Cross have revealed plans to form an alliance effective January 2, 2020. The move is expected to benefit British Columbians as it combines national expertise and scale with local service and insight. In a statement, Pacific Blue Cross said that the nationally aligned alliance gives rise to several new benefits that will help its growth among advisors, plan sponsors, and members. “Pacific Blue Cross is excited to bring the benefits of a national carrier to our local expertise,” said president and CEO John Crawford. “This alliance with Blue Cross Life is a foundational building block towards improving health and wellbeing for British Columbians.” With enhanced capabilities in underwriting, pricing, reserving, actuarial and medical underwriting, the company said it can invest in additional work and wellness solutions for its customer base in British Columbia. Pacific Blue Cross will also remain as the primary contact for all sales, service, and claims. “We have created the ability to bring on new business with our trusted advisors while improving our value proposition to our clients and members,” Crawford said. The new announced partnership is the latest addition to the history of collaboration and mutually...

Many “Sandwich Generation” Canadians expect to put their own financial goals on hold in order to help their adult children and their aging parents, according to new research. The Sandwich Generation Survey is a Leger poll of Canadians commissioned jointly by FP Canada and Chartwell Retirement Residences. Of the Canadians surveyed who have children and at least one living parent, one-in-three (30%) said they expect that they will need to provide financial assistance to both their children and parent(s) in the future. Twenty-five per cent of them anticipate that providing financial support to both their children and parent(s) is likely to cause a strain on them financially, and 27% said they expect to put their own financial needs/goals on hold as a result of providing this financial assistance. Most lack a financial plan Of the respondents in the sandwich generation, just 27% said they have a financial plan that is helping them deal with financial pressures associated with supporting their children and/or parent(s). “Given the significant financial pressures facing consumers from all directions, it’s no surprise that research shows Canadians are stressed about their finances. However, it is alarming to think that few Canadians have developed a financial plan to...

Business Wire To help consumers meet the increasing need and cost of long-term care, Lincoln Financial Group (NYSE:LNC) today introduced MoneyGuard® III, the newest generation of its hybrid life/long-term care funding solution. MoneyGuard III, issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, offers new coverage and benefit options and provides greater financial flexibility to clients looking for ways to pay for future long-term care needs. “Studies show that nearly half of consumers turning 65 will need some type of long-term care in the future1 and Lincoln MoneyGuard® III builds on a proven solution that can help prepare people for the realities of long-term care before they need it,” said Mike Hamilton, VP, MoneyGuard Product Management. “Clients’ needs for long-term care vary so it is important for our solutions to be flexible to meet a range of situations.” Coverage Flexibility Building on the popular flexible payment options available with previous generations of MoneyGuard solutions, the newest product offers the opportunity to spread payments out over a longer period, potentially up to attained age 70, allowing clients to select premium payments that fit their needs and financial circumstances. Long-term Care Planning Flexibility MoneyGuard® III features several new benefits, bringing...

Staff | September 17, 2019 Morneau Shepell Ltd. is acquiring U.S.-based MorningStar Health Inc. The acquisition will allow Morneau Shepell to enhance its U.S. presence in absence management, including leaves, disability, absence reporting and accommodation. MorningStar Health’s plan sponsor clients and employees, including its leadership team, will join Morneau Shepell but will remain based in Grand Rapids, MI. Read: Morneau Shepell closes acquisition of some of Mercer’s U.S. health, DB businesses “MorningStar Health is well positioned for substantial client-base and revenue growth supported by a track record of consistent top-line growth over the years, high customer satisfaction and retention and innovation,” said Nigel Branker, president, health and productivity solutions and executive vice-president at Morneau Shepell, in a press release. “We are excited to welcome our new colleagues to the team and thrilled to continue advancing our strategy to accelerate growth in the United States.” Read the full article at BenefitsCanada.com

Groundbreaking technology underpins revolutionary approach to modelling Skipton, UK (Sept. 16, 2019) – JBA Risk Management, the global leader in flood risk management, has launched the first-ever probabilistic global flood model. This model allows (re)insurers to model river and surface water flood at 30m resolution worldwide. It not only fills gaps left by currently available catastrophe models, but, for the first time, enables consistent comparison of loss across country and continental borders. “The Global Flood Model opens up a whole world of new opportunity,” said Stephen Hutchings, Head of Modelling at JBA Risk Management. “Firstly, it presents users with a probabilistic flood model for any country and thereby eliminates the coverage gap. This is a huge step forward. Secondly, the system is unprecedented in its flexibility, enabling users to customise the model to create the view of risk most relevant to their portfolio.” The model is underpinned by JBA Risk Management’s groundbreaking modelling technology, FLY, which has enabled a revolutionary approach to modelling flood. FLY not only permits risk quantification for any location across the world, but also removes the rigidity of traditional flood models by eliminating the need to embed assumptions into the model. This new modelling approach enables...

Benefits include increased efficiencies, better customer experience, and new insights via data Boston, MA (Sept. 17, 2019) – Carriers with leading claims organizations are implementing modern solutions with tools that make it easier to meet their goals and objectives. Implementing the best of breed claims solutions that allow companies to incorporate their own intellectual capital through configurations of the processing capabilities allows for true business benefit. In its latest Novarica Market Navigator, Life/Health Claims Systems, research and advisory firm Novarica provides an overview of the available claims systems and suites for US life/health insurers, as well as detailed profiles of 9 vendor solutions. “Insurers are deploying advanced capabilities to keep pace with changes in customer expectation,” said Nancy Casbarro and Deb Culliton, Vice Presidents of Research and Consulting and authors of the report. “They are leveraging analytics, data infrastructures, digital channels, and modern applications to deliver innovative business practices. Insurers are using all five elements to streamline claims processes, enable more consistent decision making, and leverage senior staff expertise more efficiently.” A preview of the report is available online. Summary This report provides an overview of the available claims systems and suites for US life/health insurers. The report contains profiles...

Amica Mutual ranks highest in homeowners insurance customer satisfaction for 18th consecutive year; American Family ranks highest in renters insurance customer satisfaction: J.D. Power 2019 U.S. Home Insurance Study Costa Mesa, CA (Sept. 12, 2019) – Nearly three-quarters (74%) of homeowners insurance customers believe the industry needs improvement, with 13% of customers indicating that “radical improvement is needed,” according to the J.D. Power 2019 U.S. Home Insurance Study.SM The study, released today, also finds that overall customer satisfaction with home insurance has declined for the first time since 2015, creating an opportunity for InsurTech providers to gain market share through alternate approaches to coverage or incumbents to implement some of the unique experiences insurtechs offer customers. “Home insurance seems to be approaching an inflection point as customers expect more value for their premiums—and have demonstrated they are willing to switch insurance companies for it,” said Robert M. Lajdziak, Senior Consultant, J.D. Power Insurance Intelligence. “Customers are more likely to use digital channels when interacting with their home insurance companies and are now shopping to find the most convenient experience that meets their expectations—which are often set by other companies with which they do business. Customer expectations are being reset and...

Cloud-based technologies and big data are getting close to maturity, with 81% and 71% of insurance carriers, respectively, committed to using these tools to support data-driven objectives: Aite Group report Boston, MA (Sept. 17, 2019) – With so many processes and functions along the value chain to update and conform to digital, insurance carriers across the globe have been spread thin in their efforts to transform. Keeping with standard insurance practice, strategies have been developed at all points across the organization without collaboration, creating little value and minimal return on investment. Aite Group’s new report, Digital Transformation in Insurance: Current Benchmark and Future Roadmap, will help carriers understand where they are in their transformation countdown and whether they will be left behind. “We found that more than half (58%) of insurance organizations surveyed are utilizing partnerships with startups as a resource for digital transformation, and the number of partnerships is expected to grow to 77% by 2020,” states Samantha Chow, senior analyst at Aite Group. Click here for the online report summary or to download the table of contents. Companies’ use of digital technologies in core operations This research is designed to provide insurance carriers a benchmark of where the...