Insurable Interest Canadian Insurance Blog

Business Wire OLDWICK, N.J.–(BUSINESS WIRE)– U.S. captive insurance companies rated by AM Best continued their run of strong financial results in 2018, as well as their outperformance of the segment’s counterparts in the commercial casualty sector, according to an AM Best special report. The new Best’s Special Report, titled, “Rated Captives Continue to Build Upon Strengths,” states that the rated captive composite reported a pretax profit of approximately $1.1 billion. Although this result is down 16% from the $1.3 billion reported in 2017, the market remained profitable. The composite posted a post-dividend combined ratio of 96.0% in 2018 and a net underwriting profit of $160.0 million. Net premiums written increased in 2018 by 4.4% as well, reversing the 6.7% decline reported in the previous year, driven mainly by premium increases in medical professional liability and commercial multi-peril insurance lines of business. AM Best’s favorable view of the captive segment is driven partly by the segment’s continuously positive underwriting results every year. These strong results are testament to the segment’s close alignment of interests with stakeholders and deeply ingrained risk management culture. The favorable view also reflects the composite companies’ exceptionally conservative reserve philosophies and their close proximity to insureds, which...

Human resources, legal assistance and other services available to help entrepreneurs manage and grow their day-to-day businesses Edmonton, AB (July 26, 2019) – On July 19, 2019, the Insurance Brokers Association of Alberta (IBAA) tabled a white paper with the Alberta government to deal with the current auto crisis in Alberta. The IBAA task force that put the paper together have honed in on the most critical issues of: Adjusting the automobile rating system to allow insurers to charge appropriate premiums for inferior drivers, so that they are no longer subsidized by good drivers; Allowing more flexibility in rating so that payment plans and physical damage coverage are widely available again; Clarifying the Minor Injury Regulation to ensure victims of true minor injuries are compensated under the Injury Cap. Legitimately severe and catastrophic injuries should be excluded from the regulation and compensated separately; Therapeutic treatments such as dental and psychological, are not included as allowable expenses in the current Diagnostic and Treatment Protocol. All injured parties deserve to receive the proper care needed to heal and recover; Unlike other jurisdictions, Albertans are not permitted to use electronic pink cards. The IBAA’s aim is to help restore the Alberta property &...

Sedgwick is ready for the upcoming 2019 storm season, bringing new and enhanced global solutions Toronto, ON (July 29, 2019) – Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions, has announced the expansion of its Canadian operations with the formation of a new business development team led by senior vice president Gary Gardner. Gardner joined Sedgwick earlier this year, bringing 35 years of experience in global sales and marketing to the company’s Canadian operations. He will utilize this new team to further develop Sedgwick’s products and services in Canada and enhance the company’s presence in this market. The Toronto-based sales team will be made up of a number of experienced professionals. Those joining include Sandra Buckberrough, vice president of sales, who has held a managerial position in the claims industry for over 20 years and brings a wide array of knowledge in liability and automobile industries, and Mary Ann Anderson, vice president of sales and business development for the Atlantic region, who came to Sedgwick with over 10 years of insurer relations, working with both commercial and professional liability. Other new team members include: John Jones, vice president of business development in broker markets, who...

Emerging Risks Monitor Report Also Highlights Digitalization Challenges as Top Risks Stamford, CT (July 24, 2019) – Organizations are concerned about their ability to keep up with a rapidly changing business landscape, driven in part by concerns about their own organizations’ lagging and misconceived digitalization strategies, according to Gartner, Inc.’s latest Emerging Risks Monitor Report. In the second quarter of 2019, Gartner surveyed 133 senior executives across industries and geographies, and the results showed that “pace of change” had emerged as the top emerging risk in the 2Q19 Emerging Risk Monitor survey (see Table 1). Last quarter’s top emerging risk, “accelerating privacy regulation,” has now become an established risk after ranking on four previous emerging risk reports. Closely linked to the concern around pace of change are two operational risks, including “lagging digitalization” and “digitalization misconceptions,” which Gartner experts said may be partly driving the top concern around pace of change and related threats from business model disruption. “Among the top five emerging risks in the quarter’s survey, the linkages are clear,” said Matt Shinkman, managing vice president and risk practice leader in the Gartner audit and risk practice. “Organizations are concerned with the pace of business change and vulnerability...

Successful reinvention of the business requires taking an outside-in approach that aligns to customer needs and expectations Morristown, NJ (July 24, 2019) – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, has announced the release of a new research report, The Future of Insurance: Future Leaders Setting the Bar in Meeting New Customer Demands and Products in a Multi-Channel World. Drawing on findings from four recent primary research studies on Consumers and SMBs (Insurance “Buyers”) and InsurTechs and Insurers (Insurance “Sellers”), the report provides unique insights on the alignments and gaps between Buyer expectations and Seller strategies, priorities and investments, revealing which types of Sellers are well positioned to create the future of insurance, and who will be left behind. “With customers as crucial arbiters of a company’s success, insurance players should aggressively invest in new products, services, business models and technologies that will enable them to align to customer needs and expectations, both today and in the future,” commented Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “The future leaders of insurance are modernizing and optimizing their existing businesses to meet current customer needs, and create profitable operations that fund...

Toronto, ON (July 25, 2019) – A report from the Institute for Catastrophic Loss Reduction (ICLR) and the Standards Council of Canada (SCC) recommends the development of a new national standard of Canada on wind resilience to mitigate residential and small building property damage resulting from natural disasters in Canada. High winds contributed in part to most natural catastrophes recorded by the Insurance Bureau of Canada between 1983 and 2016. The May 2018 windstorm, for example, in southern Ontario and Quebec, followed by tornadoes in the National Capital Region in September 2018, caused close to $1 billion in insured losses, according to Catastrophe Indices and Quantifications Inc. Specifically, the report proposes measures for four major categories: roofs; walls and upper and lower storey connections; anchoring of the building to the foundation; and additional construction details such as garage doors. These measures could form the basis of a new National Standard of Canada, which governments could incorporate into regulation, which could be integrated in the National Building Code or to which builders could adhere voluntarily thus raising the bar for construction in Canada. “Protecting residential structures will be aided by measures that have the biggest impact on structural safety,” said Paul...

Manulife Bank debt survey shows 38 per cent of Canadians living with debt admit it was because they lived beyond their means One in three (33 per cent) Canadians say their spending growth outpaces their income growth Nearly 40 per cent of Canadians who went into debt cite doing so because they live beyond their means; 19 per cent cite not being able to break the debt habit Nearly half (49 per cent) of indebted Canadians 20-34 years old and a majority of those who are 35-54 years old report carrying credit cards with a balance One in 10 (nine per cent) admit to being clueless about how much they are spending, every month, on average Toronto, ON (July 25, 2019) – Are Canadians living beyond their means? According to a survey by Manulife Bank of Canada – Canadians aged 20 to 69 years old with a household income of $40,000 or more – one-third of Canadians are spending their money faster than they make it. In an age of consumption fueled by “fear of missing out” and “you only live once” attitudes, it can be easy to dig a hole of debt. Thirty-eight per cent of Canadians living with...

Escalating downside risks and unpredictable trade and political disputes are causing anxiety among market watchers, but according to Deloitte’s economic outlook the negative sentiment appears excessive and doesn’t fully agree with economic data. Anxiety is present due to the escalation of downside risks and unpredictable trade and political disputes, the negative market sentiment appears excessive and does not fully agree with economic data, according to a report by Deloitte Globe Advisory. Market anxiety understandable Growing financial market anxiety, already made tense by the aging U.S. recovery, has led to an inversion of the yield curve in the United States and Canada, says Deloitte. Typically a harbinger of recession, the recessionary sentiment of the bond market is somewhat at odds with the expectation of rising profits embedded in near-record equity prices. “With the recent escalation of political risks and the rise of certain economic headwinds, the market sentiment and growing anxiety is understandable, but it should not paralyze businesses,” says Craig Alexander, chief economist at Deloitte Canada. We’re in the end of the current business cycle “It’s important to realize we’re in the latter stages of the business cycle, which makes economies more vulnerable, but also signals a return to more sustainable growth. While risks...

Mackenzie Investments announced July 25 that investors have approved two fund mergers that will take effect on or about August 16, 2019. The Mackenzie Canadian Balanced fund will be merged into the Mackenzie Strategic Fund. The Mackenzie US Strategic Income Fund will be merged into the Mackenzie Global Strategic Income Fund. Investors also approved changes to the investment objectives of Mackenzie Canadian Resource Fund. On or about August 16, 2019 the fund’s new investment objectives will take effect and the fund will be renamed Mackenzie Global Resource Fund.  Read the original article at insurance-journal.ca

St. Charles County Journal (MO) Retirement is the time in your life when you can throw off the shackles of your daily responsibilities and truly enjoy the fruits of everything you spent years working toward. It’s an empowering feeling and you’ve earned it. You’ve planned and you’ve saved, but now that you’re here, don’t make the mistake of believing your financial planning is over. As a retiree, taking an annual review of your finances is more important than ever. You deserve to live the retirement you want. To be sure your finances are up to the task, here are a few specific items to review in your annual post-retirement financial checkup. 1. Life expectancy When you first created your retirement plan, you likely discussed an end-of-life age with your adviser you could use as a benchmark and plan toward. Now it’s time to revisit that age again and take an objective look in light of your overall health and any existing conditions you may have. And don’t be surprised if you find out you’re poised to live far longer than you expected all those years ago. It’s great news, but it also means you must adjust your finances accordingly. 2....