Insurable Interest Canadian Insurance Blog

Steven LaBroi knew that he was going into a challenging field when he got involved in life insurance, but he quickly ran into issues that were hundreds of years in the making. “There was a gap in really understanding why this industry seems to work for some and why there are so many stereotypes, so many clichés and so many misnomers in the other communities,” LaBroi said. LIMRA data on why consumers buy life insurance shows that some of those clichés still exist in some communities. Among African Americans, for example, 31% buy life insurance to cover burial expenses, a far higher percent than other groups. As an African American, LaBroi sees the legacy that led to that perspective. “That’s what was offered in the African American community,” LaBroi said. “You have to remember there were 60-some African American insurance companies in this country in the early 1900s.” Those companies focused on the concept of burial insurance because wealth was only starting to build in African American communities. As those companies died off, larger insurance companies were slow to move into that market. LaBroi wanted to shift that thinking in his Washington, D.C., home base. He saw that people in...

Your mom and dad were hopelessly out of touch. It doesn’t matter whether you are a member of the silent, baby boomer, Generation X or millennial generation — at some point in your youth, you probably thought your parents were lame. Then you went on to your work life and were convinced that the older generations really needed to get out of the way. It’s the same story for every generation, right? Well, not so right with Generation Z. They apparently talk to their parents as if they were fellow human beings. Yes, hard to believe, but David and Jonah Stillman are living proof.David has made a career of observing generational differences as a marketer, speaker and co-author of books such as When Generations Collide. He often appears in national media as a generational expert. Although the Gen Xer has done research, perhaps his best project was bringing up his very own Gen Zer, Jonah, who now collaborates with David in the generational business. Besides speaking together at events and consulting, they wrote the book Gen Z @ Work. As a classic Gen Xer, David admits he can be a little blunt yet pointed in his remarks. Those are some...

Will “Medicare for All” get rid of private health insurance once and for all? How will Americans pay for Medicare for All? The Democratic presidential candidates are refining their positions on the issues as each political hopeful tries to stand out. Health care is one of those issues where some of the candidates are clarifying their views. Sen. Kamala Harris, D-Calif., originally had come out in favor of a Medicare for All plan that abolished private health insurance. Then she stepped back from that position to propose that Americans could opt for Medicare Advantage coverage from a private insurer. Her plan would allow for a 10-year transition period while all Americans would opt into either Medicare or Medicare Advantage. Private insurance plans could participate, but would have their own set of rules to follow. More recently, Harris announced how she would pay for the plan. She proposes a 0.2% tax on Wall Street stock trades, a 0.1% tax on bond trades and a 0.002% tax on derivative transaction. She said she also would tax offshore corporate income the same way domestic corporate income is taxed. Harris said she would not raise taxes on households making less than $100,000 a year...

“I haven’t found a problem, so there is no solution I can provide to you.” I can assure you that I have problems but the insurance agent had spent the past hour sitting at my table talking at me and asking me one question in several ways: “How much do you want to spend a month?” In fact, he had not actually identified himself as an insurance agent but said he was a “medical underwriter.” I was reminded of this conversation during my research for this year’s Life Insurance Awareness Month feature. During that process, it became clear that the industry is still facing the problem of trying to sell more life insurance as the field force shrinks and consumers change. The meeting with this agent revealed some issues in life sales. But more troubling was the path that led the agent to my table. I am not suggesting that all agents are conducting themselves as this one did. In fact, I usually speak with highly accomplished agents and advisors, who are typically the ones doing things right. Even random agents I meet at industry conferences are likely to be high-level professionals for the sheer fact that they care enough...

Finance executives in Canada say leadership and technology skills are most difficult to find when hiring says new research from staffing firm Robert Half Finance & Accounting. They say business analytics skills are in high demand, as 28 per cent of CFO say these skills are mandatory for all accounting and finance positions. Another 52 per cent say they are mandatory for some roles. Finance managers, meanwhile, say big data and advanced analytics are top currently used technologies, followed by cloud-based systems and mobile applications. In addition to the 25 per cent of finance and accounting roles currently using tools like predictive analytics, another 27 per cent say they expect to use them within the next three years.  “As digital transformation reshapes businesses, Canadian organizations seek strong leaders with technical know-how to help manage this change across a range of financial roles. Companies, however, struggle finding professionals with this expertise,” say the report’s authors. CFOs report that leadership abilities and technical experience or aptitude are the most difficult to find in accounting and finance job candidates. “Business analytics tools will continue to advance, with newer technologies that allow finance staff to focus less on manual tasks and more on leading...

ABC Life Literacy Canada (ABC) announced that it is adding to its lineup of Money Matters financial literacy programs with the introduction of Money Matters for People with Diverse Abilities. The program is launching nationally, with three workbooks available to download at abcmoneymatters.ca. The Diverse Abilities program was designed for people with various intellectual, verbal, physical and nonphysical capabilities. Modules in the program examine the difference between needs and wants, examine the different ways to pay for things and the pros and cons of the different payment methods available, and looks at how to open a bank account. ABC has also created a downloadable guide specifically for caregivers.   “Money Matters for People with Diverse Abilities becomes the newest addition to the original Money Matters core program, in addition to Money Matters for Newcomers and Money Matters for Indigenous Peoples programs. It is a testament to the success of the program and demonstrates how financial literacy can be even more effective when tailored to the needs of individual communities,” ABC said in a statement released Thursday. “We’re really excited to release this programming to a new, diverse community of learners.” Read the original article at insurance-journal.ca

Lake County News (CA) Death benefits payable from a life insurance policy on the death of the insured can be considerable. Such benefits can either be paid directly to one or more individual beneficiaries or be paid to a trust administered for their benefit. A trust can own and/or be the death beneficiary on a life insurance policy. Unlike retirement plans, there is no income tax disadvantage to naming a trust as the death beneficiary of a life insurance policy. Moreover, for very high net worth persons, having an irrevocable life insurance trust purchase and own the life insurance policy is a way to keep a considerable asset outside of their estate and so minimize federal estate taxes. Nowadays, however, with the estate tax threshold at around 11.2 million dollars far fewer persons are concerned with estate tax minimization. Nonetheless, naming a trust, including a revocable living trust, as a death beneficiary on a life insurance policy offers other advantages: It allows for more contingency planning in the event that the primary death beneficiary does not survive to inherit; it allows for cash to fund a trust that may otherwise be short on cash; it allows for the death benefits...

Manulife Investment Management announced this week that it received top scores in the annual Principles for Responsible Investment (PRI) Environmental, Social and Governance (ESG) annual assessment report for 2018. Supported by the United Nations, the PRI works to understand the investment implications of ESG factors and help companies incorporate those factors into their investment and ownership decisions. As a PRI signatory, Manulife says it has committed to following the PRI’s six responsible investing principles which include annual disclosures and an evaluation of the company’s responsible investing efforts. The company received an A+ for its approach to integrating ESG considerations into business investment practices across a range of asset classes. It received another A in all other direct investment and active ownership PRI modules for which it was assessed. Alongside the rankings from PRI, Manulife also released its inaugural Sustainable and Responsible Investing Report for the business, which gives clients and stakeholders an overview of the company’s philosophy, guiding principles, and approach to sustainable investing and investment decision making. Read the original article at insurance-journal.ca

Toronto, ON (Aug. 21, 2019) – BeniPlus Inc., a provider of simple, flexible and affordable group benefits to small businesses throughout Canada, announced today that they have entered into a partnership agreement with Tia Health to offer virtual medical services to all of their new and existing clients. “We believe virtual healthcare is going to become much more common in the Canadian marketplace,” said Stephen DeKuyper, Co-Founder and President of BeniPlus Inc. “We want our clients to be able to offer this high-value added benefit to their employees and we like the unique model that Tia Health is providing.” “We’re excited to be working alongside a company pushing the boundaries in group benefits,” added David Del Blaso, Co-Founder of Tia Health. “We are completely aligned in bringing the highest quality solutions to companies of any size, which have traditionally been available only to large corporations. BeniPlus is breaking down those barriers with huge value for employees and employers alike.” About Tia Health Tia Health is a trusted source of virtual medicine that is changing the way healthcare is provided in Canada. Through the Tia Health platform, employers can provide employees with doctor’s appointments, free prescription delivery, family appointments and much...

Swiss Re Institute’s latest sigma report: Insurers can grow & optimize existing portfolios to become more efficient using advanced analytics that combine data science, extensive risk knowledge and industry expertise In particular, commercial lines can catch up with personal lines, which currently use analytics more extensively, through exploiting the rapid explosion in the number and breadth of structured and unstructured data sources Insurers can target at least a 2-5% improvement in loss ratios under real trading conditions with use of advanced analytics Zurich, Switzerland (Aug. 21, 2019) – The latest sigma report from the Swiss Re Institute, Advanced Analytics: Unlocking New Frontiers In P&C Insurance, suggests that technology advances are enabling P&C insurers to unlock new frontiers in risk assessment and mitigation thanks to advanced analytics. Past successes that focused on improving expense ratios have catalysed new investment with pilots by insurers showing meaningful improvement in loss ratios, as insurers gain better visibility into underlying loss drivers. True potential will only be realised through co-ordinated efforts between developers and users, although expectation of success in all projects could limit adoption and constrain a virtuous circle of trial and improvement. “Most insurers aim for a success rate of one-third in operationalising...