Insurable Interest Canadian Insurance Blog

Toronto, ON (Sept. 5, 2019) – Insurance Bureau of Canada (IBC) welcomes news that the Ontario government is answering a call from drivers to make the consumer insurance experience easier and more convenient. Currently in Ontario, the paper pink slip is the standard proof of insurance and drivers are required to carry a paper version of that document. Today’s announcement brings the convenience of electronic proof of auto insurance to Ontario drivers, enabling them to show their pink slip on electronic devices such as smartphones or tablets. The Government will begin allowing drivers to use electronic pink slips as proof of insurance, effective immediately. “Ontario’s auto insurers welcome the government’s decision to allow electronic proof of insurance for Ontario drivers. Being able to provide digital documents to today’s tech-savvy consumer is a baseline expectation of service we are thrilled to now be able to provide. This marks another step is making insurance easier and more accessible for Ontarians. We look forward to working with this government to bring more choice and innovation to the market,” said Kim Donaldson, Vice-President, Ontario, Insurance Bureau of Canada. Ontario joins a handful of other Canadian provinces allowing drivers to show electronic proof of insurance...

Coburg, ON (Sept. 5, 2019) – HTM Insurance Company has selected Cognition+ as a partner to help implement their Digital Transformation Strategy. Cognition+ provides a web-based insurance enterprise platform, which represents the cornerstone of HTM’s Digital Transformation Strategy as they move forward. Cognition+ provides a number of immediate benefits: Web-based, anywhere, anytime, any device access; Role based workflows, access and task management; Best-practice processes and usability; Privacy and security, as well as scalability; Application programming Interfaces for extendibility; Standardized document retention and creation. Over the longer term, Cognition+ will provide heightened access and insight into the company’s data, optimizes data entry and retention, while enabling real-time transactions with third parties. The Cognition+ solution works in tandem with HTM’s current implementation of the Insurance Business Solution (IBS) that will allow the HTM team to move their digital transformation project consistently forward. “We’ve been a strong supporter of Cognition+ and are impressed with the direction they are leading the mutual community. The new Cognition+ solution is set to streamline our operations by creating efficient processes which will improve speed, quality and accuracy of our business transactions. Further the analytics tool helps us understand our business better than ever before.”, stated Alec Harmer,...

Increased conversions on digital insurance fulfillment due to broker feedback and underwriting flexibility Toronto, ON (Sept. 5, 2019) – An analysis spanning April to August of this year has uncovered a dramatic 61 percent increase in quote to bind ratio on the Apollo Exchange, a direct result of insights gained from digital data collection. The Exchange tallies application starts, through to purchase of insurance policies and digital delivery of insurance policy documents, and knows where in the application the user has dropped out or abandoned the form. In April of this year, 28 percent of quoted applications resulted in purchase. However, that number has increased month over month as insurance products have been iterated through qualitative broker feedback, data analysis, and insurer flexibility to maneuver underwriting appetites. In May, 31 percent of Exchange applications converted, moving up to 39 percent in June and 43 percent in July. August beat all previous records with a 45 percent quote to bind conversion rate. “This is how insurance products should work — constantly evolving and iterating based on strong feedback loops and extensive data,” says Apollo CEO Jeff McCann. The digitization process enables the Exchange to give carriers a valuable lens on their...

Mississauga, ON (Sept. 3, 2019) – FirstOnSite Restoration, Canada’s leading independent disaster restoration services provider, has completed its previously announced agreement to acquire JPL Disaster Recovery, a company with more than 50 years of experience and expertise in disaster restoration in Gatineau, Ottawa and the Outaouais region. All JPL employees are now part of the FirstOnSite team, strengthening its service offering in the National Capital Region. Founded in 1966, and employing approximately 70 people, JPL is the leading full-service restoration provider in Gatineau. “FirstOnSite shares our values and business goals, making this the right decision for our organization,” said company owner Earl Laforest, who has been appointed VP Operations & Acquisitions – Quebec and National Capital Region for FirstOnSite. In recent years, FirstOnSite opened branches in Quebec City, Ottawa and Ste-Agathe, QC, in addition to its regional flagship Montréal branch. The company is the largest full-service commercial and residential restoration provider in the province of Quebec and the National Capital Region. Mr. Laforest will be working closely with EVP, Barry J. Ross, orchestrating growth throughout the province of Quebec. In 2016, FirstOnSite joined forces with U.S. based Interstate Restoration, and this transaction begins the next phase of FirstOnSite’s expansion and...

New York, NY (Sept. 5, 2019) – American International Group, Inc., today announced that as of January 2020 virtually all of its commercial property and casualty insurance policies will begin affirmatively covering or excluding physical and non-physical cyber exposures, addressing market concerns that traditional commercial insurance policies across the industry – from property to general liability – are often silent about cyber coverage. For more than 20 years, AIG has offered specific, standalone cyber insurance products that provide a high-level of coverage clarity to clients in the event of a cyber security breach. As the cyber threat has grown in the last five years, AIG has been drawing on that expertise to provide more holistic cyber coverage for clients across standard commercial insurance lines and to incorporate affirmative cyber coverage into traditional P&C policies on a product-by-product basis. “AIG believes P&C policies globally should be clear about the cyber coverage they provide. For the most part, across the industry, typical P&C policies have not been written to adequately deal with cyber exposure,” said Tracie Grella, Global Head of Cyber Insurance. “As we shift to affirmative cyber coverages and exclusions, our clients can more closely consider the cyber peril they face...

Memphis, TN (Sept. 4, 2019) – Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions, today announced the completion of its purchase of York Risk Services Group, a premier provider of claims administration, managed care, specialized loss adjusting, pool administration and loss control solutions. York’s customized claims solutions and specialized expertise complement and enrich Sedgwick’s market capabilities. The strategic acquisition brings to Sedgwick approximately 5,000 highly skilled professionals serving a variety of clients, including corporations, the insurance industry and public entities. With the close of the acquisition, the Sedgwick family now comprises nearly 27,000 colleagues across 65 countries. “The York acquisition marks another milestone in our storied half-century of growth,” said Sedgwick president and CEO Dave North, referencing the company’s 50th anniversary in 2019. “Joining forces with York enhances Sedgwick’s position as a global industry leader. Together, we’ll have the capacity to support more customers in times of need; taking care of people is at the heart of everything we do, because caring counts.” “Integrating our two companies’ expertise and capabilities will enhance our service offerings, bring us into new markets, and present exciting growth opportunities for our talented colleagues,” said Thomas Warsop, chairman and CEO...

Total reinsurance dedicated capital increases 8% London, UK (Sept. 4, 2019) – Global reinsurance dedicated capital totaled USD 559 billion at half-year 2019. This is a robust 8% increase from a re-stated USD 518 billion at year-end 2018 according to Willis Re’s Reinsurance Market Report. Now in its fifth year, the report provides in-depth analysis of the size and performance of the reinsurance industry, based on the Willis Reinsurance Index group of companies. Total capital dedicated to the global reinsurance industry measured USD 559 billion at the half-year point of 2019. This is an 8% increase from a re-stated USD 518 billion at year-end 2018, with strong investment markets being the main driver of the industry’s capital growth. For the subset of reinsurers who provide sufficient disclosure, the HY 2019 RoE jumped to 13.9% from 8.5% in HY 2018, driven by strong investment gains. Normalising this figure for natural catastrophes and stripping out reserve releases and realised gains, the underlying RoE is 4.2% compared to 3.3% calculated on a similar basis for HY 2018. The complete report is available for download from Willis Towers Watson. The Willis Re Reinsurance Market Report is a half yearly publication providing an aggregate analysis...

Ontario-based global brokerage Hub’s latest acquisition Chicago, IL (Sept. 5, 2019) – Hub International Limited (Hub), a leading global insurance brokerage, announced today that it has acquired GMS Insurance Inc. (GMS Insurance) in Mississauga, Ontario, Canada. Terms of the transaction were not disclosed. GMS Insurance’s Mississauga operations is an independent employee benefits consulting firm providing a complete solution for its clients’ retirement and benefit needs. Last year, Hub acquired the affiliated Kitchener, Ontario operations of GMS Insurance. Now with both entities, Hub enhances its services to clients in southwestern Ontario and the greater Toronto area. “We’re excited to unify GMS Insurance under Hub, which demonstrates our commitment to the market as we continue to strengthen our employee benefits capabilities in Canada,” said Gregory Belton, Executive Chairman of Hub International Ontario Limited (Hub Ontario). “Together we look forward to offering clients more choices and value.” The GMS Insurance team will join Hub Ontario and report to Mr. Belton. The move continues to reinforce Hub’s ongoing Canadian employee benefits growth and services strategy to assemble best-in-class capabilities and entrepreneurial talent across Canada to develop a complete employee benefits and pension solution. “Joining Hub will give us the opportunity to fully leverage a...

Staff | September 5, 2019 The federal government is reforming the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act on Nov. 1, 2019 to enhance retirement security and protect pension plans. As it announced in its 2019 budget in March, the reforms are aimed at making the insolvency process fairer, more transparent and more accessible. Read: Budget 2019: Proposed changes to pension legislation, annuities, CPP The amendments will: Require participants in an insolvency proceeding to act in good faith; Provide for the possibility of court-ordered disclosure of a creditor’s real economic interest in an insolvent company; Impose director liability in appropriate cases for executive compensation payments in the lead-up to an insolvency; Limit the decisions that can be taken at the outset of a CCAA proceeding to measures necessary to avoid the immediate liquidation of an insolvent company, thereby improving participation of all players; and Exempt assets held in registered disability savings plans from creditor claims in bankruptcy. Read: 2019 Top 100 Pension Funds Report: Deconstructing pension protection, promises and priorities  “It is unacceptable that some pensioners face hardship because of their employer’s insolvency and underfunded pension plans,” said Navdeep Bains, minister of innovation, science and economic development, in a press release. “Our government believes that...

Kim Thomassin and Barbara Zvan | September 5, 2019 As members of the federal government’s expert panel on sustainable finance, we recently published our final report on how to mobilize Canada’s financial sector in the transition to a low-carbon, climate-smart economy. Our recommendations seek to connect the dots between Canada’s climate objectives, its economic ambitions and its investment imperatives. At its essence, if Canada is to meet its long-term environmental and economic objectives, sustainable finance needs to go mainstream. Read: Global investors call for government action on climate change As stewards of Canadians’ retirement and long-term savings, our role is to promote stability and sustainability. This entails designing portfolios that will respond to evolving climate risks and profiting from new clean growth opportunities over time. Yet, as a whole, climate change remains a fuzzy notion in asset management. Why? Because market factors need certain economic basics in place to reach mainstream, and we are not there yet on climate risk. These basics define how markets understand, price, measure and manage risk and opportunity. They are essential to sound and informed long-term investment decisions. We dedicated the second pillar of our report to these Foundations for Market Scale, recommending the following: 1. Issue a...