Insurable Interest Canadian Insurance Blog

In anticipation of Hurricane Dorian, the Insurance Bureau of Canada (IBC) has shared tips aimed at helping Atlantic Canadians keep their families and property safe. “As we’ve seen in previous years, a hurricane can cause extensive damage regardless of its category. Being prepared for any severe weather event is important for your personal and financial security,” said Amanda Dean, Vice-President, Atlantic, IBC. “We want to ensure that Atlantic Canadians are ready for any strong winds or heavy rains that Hurricane Dorian may bring to the region. Even a significantly weakened hurricane can carry winds strong enough to cause widespread destruction and upheaval.” IBC’s top ten tips to prepare are as follows: 1.      Create an emergency preparedness plan for your family. 2.      Assemble disaster safety kits for your home, car and office 3.      Secure any loose patio furniture and barbecues when a storm is on its way. 4.      Protect or move property that might be damaged by flying debris. 5.      Prepare a detailed home inventory. 6.      Charge handheld electronics and have back-up power sources available. 7.      Have someone check your property if you are away. 8.      Make sure downspouts are clear of debris and direct water away from your home. 9.      To protect against flooding caused by torrential rain, install a sump pump, backwater...

Kevin Dougherty, Sun Life’s Executive Vice-President, Innovation and Partnerships, will be retiring effective Dec. 31, 2019, announced Stephane Vigneault, VP, Insurance Distribution, Wholesale Channel, Sun Life. Dougherty joined Sun Life in 1994 as Vice-President, Marketing and Sales for Group Benefits. He held the role of President of Sun Life Canada from 2004 to 2007 and from 2010 to 2017. “Under Kevin’s leadership, Sun Life Canada grew to the number one market positions in Group Benefits and Group Retirement Services and in Individual insurance sales,” stated Vigneault in a Sept. 5 announcement. “During this time, he was instrumental in building successful new lines of business including Sun Life Global Investments, Client Solutions and Defined Benefit Solutions and revitalized our business in Quebec.” In 2018, Dougherty took on his current role of EVP, Innovation and Partnerships. “In this role, Kevin has helped Sun Life accelerate the development of our data and analytics capabilities and new relationships with digital players and partners. Under his leadership, his team has incubated new capabilities in areas such as artificial intelligence, machine learning, natural language processing, biometrics, and behavioural science,” Vigneault said. Read the original article at insurance-journal.ca

Staff | September 6, 2019 Benefits consultancy the Leslie Group Ltd. is partnering with health-care technology company Acorn Biolabs Inc. to offer onsite live cell collection to employees. Initially, the consultancy offered the service to its own employees before expanding it to its plan sponsor clients. Cell collection is important for stem cell therapy and other regenerative medicines, noted a press release. Normally, people would go to a clinic for medical procedures like bone marrow harvesting, liposuction or venous blood draws in order for their cells to be collected.  Read: Employers, insurers facing challenges as genetic testing grows in popularity The onsite collection involves plucking a few hair follicles from an individual’s head. Acorn developed a way to keep the cells viable during transport and storage, “turning collected hair follicles into a highly valuable and accessible resource for regenerative medicine and genetics.” The method also allows for full genome collection without a physician or surgery. “Our teams agree that cell therapy will play a major role in the future of health care and the Leslie Group’s employees will now have the ability to tap into this revolutionary technology that will ultimately help people live longer and healthier lives,” said Drew Taylor, Acorn’s co-founder and chief...

Julius Melnitzer | September 6, 2019 The Ontario Divisional Court has confirmed that an employer’s duty to accommodate ends when an employee’s disability becomes permanent and thereby frustrates the contract of employment. “The decision in Katz v. Clarke is a breath of fresh air for employers because it reaffirms that employees seeking accommodation can’t merely inform their employers of their desire to return to work, but must also provide evidence of their ability to work,” says Sari Springer, managing partner at Littler LLP. “Although employers are not obligated to anyone for life, they are always petrified when they have to make a tough and unpleasant decision about whether to terminate a disabled, vulnerable employee.” Read: Ontario court grants appeal for employee in long-term disability case Essentially, the decision adopts the policies of the Ontario Human Rights Commission relating to the duty to accommodate. “Although the employer is in the best position to canvass accommodation options, the employee must participate in that process,” says Ellen Low of Ellen Low Employment Law. Unfortunately, that’s precisely what Eugene Clarke, a front store manager at a retail drugstore, failed to do. After working at Katz Group Canada Ltd. for eight years, Clarke broke a kneecap and, by 2013, had been off the job for five...

Staff | September 6, 2019 In seeking to create its own police department, the City of Surrey, B.C. has worked out the pension portability problem for its future officers. A formalized agreement between the city’s municipal pension plan and the Royal Canadian Mounted Police plan will allow officers moving to a job at the city to fully transfer their RCMP pensions. As of Aug. 9, 2019, eligible RCMP plan members can move their contributory and pensionable service into the municipal plan. Read: How can Canada’s retirement system better address pension portability? “Not only is this agreement a major milestone in the creation of our own city police department, but it more importantly answers a significant and legitimate concern expressed by RCMP members and their families about pension portability,” said Surrey Mayor Doug McCallum in a press release. “I would like to thank the B.C. Pension Corp. and the RCMP for their leadership and quick work on resolving this issue. Now that the question of pension portability has been put to rest, I sincerely hope that the members of the RCMP who wish to continue to serve in Surrey will take the opportunity to be part of our new city police department.” Read: Judge rules RCMP pension doesn’t discriminate against parents Read...

Staff | September 6, 2019 Canadian insurers paid out $98 billion in benefits in 2018, an increase of seven per cent over 2017, according to the Canadian Life and Health Insurance Association’s annual fact book. Similar to previous years, this was led by retirement benefits from annuities ($49 billion), health benefits for prescription drugs and extended health providers like dentists and physiotherapists ($36 billion) and life insurance benefits ($13 billion). Read: Pensions, retirement savings lead industry growth: CLHIA More than 85 per cent of small employers that provide pensions, registered retirement savings plans, tax-free savings accounts and registered retirement income funds do so through life and health insurers. Canada’s total pension assets reached $3.8 trillion at the end of 2017, which included $694 billion assets held by about 15,400 employer-provided plans. In terms of health insurance, 80 per cent of Canadians and their families were protected by private health insurance plans in 2018, up from 73 per cent a decade ago. Of the $46 billion in health insurance premiums paid in 2018, 90 per cent were paid to purchase group plans. In 2018, insurers covered about $27 billion in extended health-care costs, including prescription drugs ($11.7 billion), dental ($8.5 billion), paramedical and vision ($3.9 billion), hospital ($1.9 billion)...

Seattle Times (WA) Prudential is making its first leap into Artificial Intelligence with a $2.3 billion purchase. A Bellevue, Washington-based insurance startup that uses artificial intelligence to sell personalized insurance options has been sold for $2.35 billion to industry giant Prudential Financial. Assurance IQ, an online insurance-tech company that started in 2016, meets its customers through an online portal instead of through a financial adviser. It sells life insurance, auto insurance, health insurance and Medicare options online from over 20 providers. The company says it has sold at least one insurance product to 300,000 customers and the site has had more than 18 million visitors.” To the 144-year-old insurance titan, the 3-year-old startup’s value lies in its online-first platform, efficient data collection and artificial intelligence to find personalized insurance at a much faster rate, executives said. “So rather than filling like a 10-page life-insurance application form, they were able to actually understand the customer by asking as few questions as they can,” said Naveen Agarwal, Prudential’s chief marketing officer, during an interview. The company uses artificial intelligence and data collection to fill in the gaps — after asking customers general questions about their age and medical and lifestyle habits —...

The Canadian Life and Health Insurance Association (CLHIA) released the 2019 Canadian Life & Health Insurance Facts publication on Sept. 5. It reveals that insurers paid out $98 billion in benefits to Canadians last year. This is an increase of seven per cent over 2017. This figure includes nearly $49 billion in retirement benefits from annuities, $36 billion in health benefits for prescription drugs and extended health providers, and $13 billion in life insurance benefits. “Over three quarters of all Canadians received benefits from life and health insurers to protect them and their loved ones against life’s uncertainties,” said Stephen Frank, President and CEO of CLHIA. “These benefits allow people to afford the medications they’ve been prescribed, live comfortably in retirement, and replace income when they have lost a family member.” Industry provided 156,000 domestic jobs The publication also reveals that insurers provided over 156,000 domestic jobs and made $780 billion in long-term investments, which contribute to Canada’s economic growth. In terms of client satisfaction, only one in 100,000 claims results in a complaint, according to the industry data. As for financial strength, the industry maintains capital reserves 39 per cent higher than regulators’ targets, “making insurers among the most...

Toronto, ON (Sept. 5, 2019) – The Financial Services Regulatory Authority of Ontario (FSRA) has approved the use of electronic proof of automobile insurance (EPAI), or eSlips. Drivers in Ontario can now present their eSlips when required, without having to carry the paper copy. This change is effective immediately. Ontario joins Nova Scotia, Newfoundland and Labrador, Alberta and Quebec in allowing consumers the option of using eSlips. “It only makes sense that drivers in Ontario can take advantage of the same options that drivers in other provinces and jurisdictions can, for the convenience that digital pink slips can offer,” said Ontario Finance Minister Rod Phillips. CSIO worked with many of its members to launch the My Proof of Insurance solution in February 2018. The My Proof of Insurance solution – available to CSIO members at no additional cost – was created in response to evolving customer demand for a more seamless, digital experience with their insurance providers. A January 2018 Insurance Bureau of Canada survey found 74% of Ontarians want the option of receiving their insurance documents online or electronically. Since the launch of CSIO’s My Proof of Insurance, broker adoption has been strong and continues to grow across Canada....

Advisor.ca staff | September 5, 2019 Amid growing concern about the financial risks of climate change, a pair of Canadian law professors is launching an effort to help corporate directors and pension trustees better understand the issue. The academics — Dr. Janis Sarra from the University of British Columbia and professor Cynthia Williams from Osgoode Hall Law School at York University — are heading the Canadian Climate Governance Experts program, which will draw on a group of 45 volunteer climate experts (including lawyers, economists and capital markets experts) to provide corporate directors, pension trustees and their fiduciaries with free presentations on corporate governance to address climate-related financial risks. Read: Global investors call for government action on climate change “At each session, our experts will engage in an exchange of ideas on the most effective governance strategies to address climate change and related financial risks and opportunities,” noted the Canada Climate Law Initiative in announcing the new program. “They are committed to giving boards the most helpful facts regarding how the current state of climate science relates to their sector, and to the duties of directors, officers and pension fiduciaries in Canada.” The effort comes amid growing recognition about the financial risks posed by...