Insurable Interest Canadian Insurance Blog

National survey finds nearly half of Canadians lose sleep when thinking about their home (48%) or car (49%) insurance Toronto, ON (July 15, 2019) – Nearly one quarter of Canadians have not read their home (23%) or car (25%) insurance policies, yet the main worries that keep us up at night about insurance are what policies cover and how much they cost. Despite these worries, a new survey commissioned by belairdirect shows Canadians with home and car insurance are quite literate when it comes to their policies – but there are still some things customers need to learn. “Canadians are becoming savvier when it comes to understanding their insurance policies, but we know that they still have questions. Insurance is complex, and we are committed to simplifying that experience to help educate consumers,” said Anne Fortin, Senior Vice President, Direct Distribution and Chief Marketing Officer. “Having proper coverage is key to protecting the things that you care about, and our goal is to ensure Canadians understand what they need for home and auto insurance.” What’s keeping Canadians up at night? (belairdirect) Understanding Coverage When it comes to understanding home and car insurance policies, the national survey revealed: Three in 10...

Improved customer experience (CX) and task automation are key drivers of AI use: Gartner Stamford, CT (July 15, 2019) – Organizations that are working with artificial intelligence (AI) or machine learning (ML) have, on average, four AI/ML projects in place, according to a recent survey by Gartner, Inc. Of all respondents, 59% said that they have AI deployed today. The Gartner “AI and ML Development Strategies” study was conducted via an online survey in December 2018 with 106 Gartner Research Circle Members – a Gartner-managed panel composed of IT and IT/business professionals. Participants were required to be knowledgeable about the business and technology aspects of ML or AI either currently deployed or in planning at their organizations. “We see a substantial acceleration in AI adoption this year,” said Jim Hare, research vice president at Gartner. “The rising number of AI projects means that organizations may need to reorganize internally to make sure that AI projects are properly staffed and funded. It is a best practice to establish an AI Center of Excellence to distribute skills, obtain funding, set priorities and share best practices in the best possible way.” Today, the average number of AI projects in place is four, but...

Tariffs imposed by the US government on China imports earlier this year are benefitting other regional trading partners, according to an analysis released by PwC on July 11. PwC’s July edition of Global Economy Watch says that US imports from China fell by around 15% year on year in the first quarter of 2019. This decline has resulted in opportunities for other regional trading partners. Imports to the US from a group of eight other Asian economies – Bangladesh, India, Indonesia, Malaysia, South Korea, Taiwan, Thailand and Vietnam – have grown by more than 16%, says the analysis. “Economics can sometimes lag behind politics, but we are now seeing hard economic data of the impact of US-China tensions,” says Mike Jakeman, senior economist at PwC UK. “This has benefitted other economies in the region: if this trend continues it will contribute to faster economic growth in Vietnam, South Korea and Taiwan in particular.” PwC’s analysis also looks at concerns about the risk of another global recession, as trade tensions impact on business sentiment and demand for exports. “Certainly, the outlook for the world’s biggest economies is less bright than it was 18 months ago,” says Jakeman. “In early 2018 we...

The Financial and Consumer Services Commission (FCNB) issued a warning to New Brunswickers on July 11 regarding solicitation from two unregistered firms. The regulator warns that Blue Sail Trading “claims to be an investment firm that invests client funds in the foreign exchange market and claims to have offices in Costa Rica, Panama, Colombia and Dubai. HB Global claims to be an investment firm that invests client funds in the derivatives market. HB Global also claims to be based in Dublin, Ireland.” The FCNB underlines that these companies are not registered to trade in or advise on securities or derivatives in New Brunswick. HB Global has also had an Investor Alert placed in British Columbia for selling investments without being registered. Anyone who has been approached or targeted to invest through either of these companies is asked to contact FCNB toll-free at 1-866-933-2222, or through its website at fcnb.ca/contact. Read the original article at insurance-journal.ca

Tribune-Democrat (Johnstown, PA) Jul. 13–A Lilly man sentenced to federal prison last month has been ordered to repay more than $640,000 to 12 individuals and the IRS as part of a scheme he conducted under the guise of a financial adviser. A restitution hearing scheduled for Douglas Simanski on Friday was canceled after a joint stipulation was reached between Assistant United States Attorney Stephanie Haines and Assistant Federal Public Defender Christopher Brown. That joint stipulation, which was filed Wednesday, directs Simanski to repay 100% of $640,662.34 to 12 individuals and the IRS. Some individuals on the list were owed as much as $67,920, while Simanski has been ordered to repay $207,437 to the IRS. Federal prosecutors said outside the knowledge of his investment firm employer, Simanski operated a Ponzi-style scheme based on false documents and inflated promises that deceived 31 people, including retirees and war veterans, into more than $4 million worth of fraud over the course of 14 years. Last month, U.S. District Judge Kim R. Gibson ordered Simanski, 54, to spend six and a half years in federal prison. Simanski was also ordered to receive three years of court supervision following his release. Simanski was sentenced on securities...

New Gartner report ranks digital performance of 54 brands, with almost two-thirds ranked average or below Stamford, CT (July 10, 2019) – According to new research from Gartner, Inc., U.S. insurance brands are decreasing investment across desktop sites, digital marketing and social media, and prioritizing mobile, but are falling behind in providing a more holistic digital experience for customers, despite their growing willingness to provide data and shop online. The second annual Gartner L2 Digital IQ Index: Insurance U.S. report ranks the digital performance of 54 brands operating in the U.S. market. These brands were measured across more than 1,200 data points against four critical dimensions: digital marketing, social media, desktop site and mobile site. From these calculations, two brands (State Farm and GEICO) were classified as Genius, 17 as Gifted, 11 as Average, 14 as Challenged, and 10 as Feeble.[1] “U.S. insurance brands reached the mobile tipping point in 2019, with an average of 52% of total traffic to brand sites taking place on mobile devices,” said Elizabeth Elder, Principal, Financial Services at Gartner. “However, the numerous drop-offs in mobile site features showed that insurance brands have not adjusted well to the new landscape.” Basic features such as site-specific...

IBC Launches New Video Highlighting Paper Pink Slips as ‘Outdated Technology’: CSIO Toronto, ON (July 3, 2019) – The Insurance Bureau of Canada recently developed a new video campaign highlighting how paper pink slips are behind the times. Titled “IBC’s Museum of Outdated Technology,” the video depicts a woman visiting the MOOT exhibits, ranging from a manual typewriter to a 1980s cellphone, ending with a display on paper pink slips and policy documents. The video was launched in June. A 2018 IBC survey found that 74% of consumers want their insurance documents electronically. The MOOT video uses humour to show that insurance needs to move with modern times and that consumers should be allowed access to digital options. This is very much in line with CSIO’s message that consumers expect to have a choice in how to receive insurance documents, including proof of auto insurance. The video is part of the IBC’s It’s Time for Change campaign: It’s time for change: IBC Some things were destined to be updated the moment they were invented. Cassette tapes to digital music, corded telephones to cellular, typewriters to laptops – we’ve all seen advancements and each update has made life easier. Unfortunately, the...

Collaboration to provide industry-leading credit and fraud risk management solutions New York, NY (July 9, 2019) – Global management consulting firm Oliver Wyman and industry-leading risk management platform provider Corridor Platforms today announced a strategic collaboration to provide solutions to banks and non-bank financial institutions as they modernize and digitize credit extension, payments and end-to-end risk management. The collaboration will bring together two industry-leading capabilities: Corridor Platforms’ innovative, modular and cloud-based risk management platform which enables end-to-end credit modeling, loan valuation and real-time policy execution combined with Oliver Wyman’s distinct expertise in risk management, including next generation risk analytics, model development and data/process management. Oliver Wyman Managing Partner and Head of Financial Services for the Americas, Michael Zeltkevic, said, “Financial institutions universally see the potential of big data and digitization to transform their business, but frequently face practical challenges to achieve this value. The Corridor leadership have taken a wealth of first-hand experience and created a unique integrated solution which enables institutions to make a step change toward the state-of-the-art analytics in risk and beyond, to truly compete in the digital banking era.” Manish Gupta, CEO of Corridor Platforms said, “Oliver Wyman is the clear industry leader in risk analytics....

The Alberta Insurance Council (AIC) has issued a fine of $1,000 to J. Ross Allan Financial Services Ltd. for operating without a valid and subsisting certificate of authority and for acting as a life and accident and sickness insurance agent without a license for more than 14 months, between February 2017 and May 2018. In an agreed statement of facts and joint submission to the AIC, James Allan, the firm’s designated representative, and investigators agree that the agency sold four policies during this unlicensed period, earning more than $443,619 in commissions. Allan told the AIC that the agency was not notified that their certificates of authority had been suspended. In transacting business without a license, the AIC says the agency contravened sections of the Insurance Act which state that “no business may act or offer to act as an insurance agent in respect of a class of insurance unless the business holds a valid and subsisting insurance agent’s certificate of authority for that class of insurance.” Similarly, the Act also states that “no individual may act or offer to act as an insurance agent in respect of a class of insurance unless the individual is an employee of a business...

Vancouver, BC (July 9, 2019) – CHES Special Risk Inc. has partnered with Apollo Insurance to offer bind online insurance products through the Apollo Exchange. The first product from CHES Special Risk to be available to Apollo broker users is Logging Truck Insurance. As with every Exchange product, the entire process — from quoting, binding coverage, and issuing policy documents — is immediate,  completely online, and paper free. Brokers and insurers are paid in real time, as soon as the policy is bound. Brokers can now access all CHES products on the Exchange at https://exchange.apollocover.com/insurer/ches. CHES Special Risk Inc. was established as a Managing General Agent and Wholesale broker in 2004, later becoming a fully accredited Lloyd’s coverholder in 2009. CHES Special Risk is a fully Independent MGA, delivering “A” rated capacity both in the hard to place, and standard lines classes and support their retail brokers in growing and developing their businesses. “At Apollo, we believe in empowering the broker channel,” says Apollo CEO Jeff McCann. “With this product from our partners at CHES Special Risk, our broker users can spend less time on paperwork and more time building relationships.” CHES Special Risk is one of several providers that...