Insurable Interest Canadian Insurance Blog

New York, NY (July 11, 2019) – According to a new report from Marsh, the world’s leading insurance broker and risk adviser, use of transactional risk insurance significantly increased in 2018. Policy limits in excess of US$1 billion are now available for single transactions as private equity firms and strategic investors increasingly use insurance to reduce the risks associated with mergers and acquisitions (M&A). In its latest Transactional Risk Insurance Report, Marsh reports that it placed transactional risk insurance on behalf of clients on 1,089 transactions in 2018, up 31% compared to 2017. Aggregate limits placed also increased, rising 35% in 2018 to US$36.5 billion, driven by the size and number of transactions across large and mid-market deals in which insurance is used. Regional findings of the report include: North America: In 2018, total transactional risk insurance limits placed by Marsh in the US and Canada grew 53% over 2017, to US$16.56 billion. Pricing reductions, larger transactions, and increased utilization by corporate/strategic buyers has spurred an increase in limits purchased and the number of transactions covered. Latin America: Marsh reports increasing investor interest in transactional risk insurance even though average premium rates are significantly higher than in other regions. Europe,...

Acquisition bolsters NFP’s presence in Canadian property and casualty market New York, NY (July 11, 2019) – NFP, a leading insurance broker and consultant that provides property and casualty, corporate benefits, retirement, and individual solutions, today announced that it has acquired McLean Hallmark Insurance Group Ltd. The transaction closed July 2nd. Based in Toronto, Ontario, with additional offices in Markham and Mississauga, McLean Hallmark offers unique property and casualty (P&C) solutions, specializing in trucking, car dealerships, moving and storage, marine and surety solutions, high net worth private client insurance, as well as employee benefits and pension services. This acquisition strengthens NFP’s capabilities in these areas while further expanding its ability to serve corporate and individual clients in Canada. Daryn McLean will join NFP Canada as managing director of commercial insurance and John Belyea will join NFP as senior vice president of integration. Both will report to Marty Shaw, president of NFP Canada. “We are thrilled to welcome a firm with such specialized focus in the P&C industry,” said Marty Shaw. “Daryn, John and their team bring decades of experience in commercial business and specialty product offerings that align well with our focus on growth and delivering value to clients. With...

Salesforce report sheds light on the current Canadian business landscape and the pivotal role technology will play in its future San Francisco, Calif. (July 12, 2019) – Technology is poised to make a considerable contribution to Canadian economic prosperity. According to a study by the Information and Communication Technology Council (ICTC), billions of dollars and hundreds of thousands of jobs could be added to the Canadian economy as the result of greater adoption of technologies such as cloud, mobile, apps, analytics, digital platforms, and more.[1] A new report, based on research conducted by Salesforce Canada and the Gandalf Group, explores the pivotal role that technology plays – and is expected to play – in the success of Canadian business. It also examines the barriers to digital adoption that are holding many back from their full potential. The report examined Canadian businesses as a whole — as well as through the lens of small (100 or fewer employees), medium (101–500 employees), or large (501+ employees) size, with an additional look at how legacy sectors are faring in the digital economy. Canadian businesses are optimistic about our country’s innovation but recognize that there is still work to be done. Every square inch...

Technology industry executives and business leaders, millennials disagree on AI’s impact on jobs: KPMG Report Workforce transformation is an opportunity for HR leaders Toronto, ON (June 12, 2019) – Despite expectations of how artificial intelligence (AI) will change work, only 42 percent of technology industry CEOs plan to upskill a majority of their workforce during the next three years, according to a new 2019 KPMG report, The Future Of HR In The Technology Sector. The findings stand in contrast to a 2018 World Economic Forum report indicating that by 2022, at least 54 percent of employees in all industries will require significant reskilling and upskilling, due to AI and other automation technologies, to meet future workforce needs. “Companies are enacting strategies designed to integrate data analytics, intelligent automation, AI and other emerging technologies, which will require shaping their workforce to ensure that employees have the right skills and expertise to succeed in an increasingly digital, global and agile workplace,” said Tim Zanni, KPMG Global Technology Sector leader. “Despite these new market demands, many technology CEOs do not have reskilling initiatives underway.” The KPMG report analyzes the views of global tech sector CEOs, tech industry HR executives, and three generations of...

Individuals, commercial entities, governments, and insurance organizations have lately been taking climate change more seriously. The insurance community’s interest in this issue goes back quite a way, but with climate change getting a lot of press these days, parties at all levels – from concerned citizens to mega-corporations – are focusing on new methods to address the changes and mitigate damages. TD Insurance creates Advisory Board on Climate Change TD Insurance recognizes severe weather events and notes that 2018 saw $1.9 billion in insured damage from severe weather. Kenn Lalonde, Executive Vice President, TD Insurance, points out that TDI has “an incredible opportunity – and responsibility – to take meaningful action to address how we can better protect and insure Canadians and better support the Insurance industry.” TDI is a signatory to the United Nations Principles for Sustainable Insurance (PSI).  To support this, TD established its Advisory Board on Climate Change; Lalonde notes this is “a first for the Canadian insurance industry.” The Marshall Islands: 29 atolls, 5 coral islands … and a chance to disappear The Marshall Islands is a nation of islands and atolls. The atolls and islands are spread over some 200 miles, just north of the...

Gerry Wahl | July 12, 2019 Inflation must be taken into account when designing both plan sponsor and government retirement programs because, over time, it will undermine purchasing power. In terms of recruiting and retaining employees, workplace retirement plans are important, but they also represent a significant cost for employers. Inflation-adjusted government pension programs can help lower these costs. But plan sponsors and their members should also be aware of the shortcomings of the Canada Pension Plan and old-age security, both of which are critical components of employees’ retirement income.  Read: Holistic retirement thinking: Integrating public, private pensions What is the CPP? All Canadians, no matter where they live, are eligible for the CPP, a retirement income plan provided by the federal and provincial governments. It’s funded by equal contributions from employees and their employer (currently at 9.9 per cent). However, if an employee is earning less than $3,500 annually, no contribution is required. The CPP earns revenue by pooling contributions into investments, which are managed by the Canada Pension Plan Investment Board. It currently manages about $320 billion. One common question around the CPP is when to take it. If a retiree takes CPP before age 65, their monthly CPP will be reduced, but the total amount they’re likely to receive over their retirement...

Are you returning to Canada from a stay abroad, or coming for the first time, without a Government Health Insurance Plan (GHIP)? Visitors to Canada Emergency Medical Insurance Plans (VTC) are designed for travellers who are temporarily visiting Canada, however you may be surprised to learn that these policies may meet the needs of newcomers to Canada as well. While VTC plans are not designed to match Canada’s universal health care plans (for example, benefits for regular check-ups are typically not included), newcomers to Canada may benefit from the emergency medical benefits available under a Visitors to Canada Emergency Medical Insurance Plan. Why do newcomers to Canada need insurance; aren’t they covered under Canada’s healthcare system? Depending on the province or territory of arrival, newcomers to Canada may wait up to three months for their Canadian Government Health Insurance Plan (GHIP) to come into effect. During this time, they are not eligible for coverage under Canada’s universal healthcare plan. It is recommended newcomers purchase emergency medical insurance to financially protect themselves and their families from the costs they may incur if they require emergency medical treatment during the waiting period. What happens if I purchase a policy for a coverage...

Equitable Bank announced this week that it has a new partnership with BMO Insurance. Through Equitable Bank, BMO Insurance whole life policy owners can obtain cash surrender value (CSV) lines of credit. Equitable Bank says eligible policyholders can borrow up to 90 per cent of the CSV of their insurance policies “without making ongoing payments and affecting the growth of their policy.” “We are excited to be adding another reputable insurance provider to our CSV product suite,” says Andrew Moor, President and Chief Executive Officer, Equitable Bank. “We look forward to working closely with advisors who are contracted with BMO Insurance to further build out our CSV lending product line, and to ensure that their clients’ financial needs are being sufficiently met.” Equitable Bank’s CSV Line of Credit is currently available to Canadians aged 50 and over who have a whole life insurance policy with a partnered insurer, and adequate cash surrender value available in their policy to secure a loan. “An individual’s life insurance policy is a strong, and often underutilized retirement planning asset,” said Steve Cooney, Senior Vice President, Head of Individual Life and Annuities, of BMO Insurance. “We are pleased to be able to offer the Equitable...

Highly digitized processes, advanced analytic capabilities, and effective distribution strategy among key markers of success: Novarica Boston, MA (July 11, 2019) – In the near-term, personal lines insurers are likely to prioritize technology investments to increase speed to market, offer a digital experience to policyholders and agents, and leverage analytics to improve sales and operations, while they will have to contend with trends like climate change and demographic shifts in the longer term. In a new report, Personal Lines: Near-Terms and Long-Term Technology Trends, research and advisory firm Novarica explores the future of personal lines over the next three to five years and beyond with a focus on the role of technology in specific functional areas. “As personal lines become increasingly segmented and competitive, carriers will need highly digitized processes, advanced analytic capabilities, and an effective distribution strategy to succeed,” said Chuck Ruzicka, Vice President of Research and Consulting and author of Novarica’s new report. “Carriers should wisely invest in technology, selecting carefully from the variety of emerging technologies available. Successful companies will think longer term and develop strategies to address these predictable market changes.” A preview of the brief is available online. Summary Homeowners and personal auto insurers operate...

Staff | July 11, 2019 The majority of Canadian capital accumulation plan members said they’re confident in their understanding of how to optimize their income in retirement, according to Benefits Canada‘s 2019 CAP Member Survey. Across all survey respondents, 63 per cent said they’re confident on this topic. When the answers were broken down by generations, the survey found baby boomers (69 per cent) and generation X (69 per cent) were more confident than millennials (53 per cent). This year’s survey, highlighted in a session at the 2019 Benefits and Pension Summit, was followed by a webinar on June 26 to dig deeper into all the survey’s additional findings. During the webinar, Joe Nunes, executive chairman of Actuarial Solutions Inc., said it’s difficult to separate plan members who are knowledgeably confident from those who are confident but ignorant about the truth. Read: 2019 CAP Member Survey: Helping each generation on their retirement journey “I think plan sponsors need to be vigilant to not only watch for confidence in plan members, but also to monitor their knowledge to make sure it’s the former and not the latter,” he said. “Plan sponsors need methods to test member understanding and engagement. Twenty years ago, record keepers built great websites and educational...