Insurable Interest Canadian Insurance Blog

Swiss Re Institute’s latest sigma report: Global insurance premiums topped USD 5 trillion for first time ever in 2018, with solid growth in non-life, subdued performance in life Life and non-life premiums will grow around 3% in real terms over 2019/20, based on strength in emerging markets across both sectors, and solid growth in non-life in advanced markets In advanced markets, traditional life insurance savings business remains challenging given low interest rates In non-life, ongoing evolution of advanced driver assistance systems will likely pressure motor premiums in the long term US remains largest insurance market, followed by China and Japan – ongoing shift of insurance business east continues By 2029, Asia-Pacific will account for 42% of global premiums – share of China is forecast to be 20% and the country is on course to become largest insurance market by mid-2030s Zurich, Switzerland (July 4, 2019) – Global insurance premiums passed the USD 5 trillion mark for the first time in 2018, equivalent to more than 6% of world gross domestic product (GDP). This was based mostly on solid growth in the non-life sector, particularly in China and other countries in emerging Asia, and also among advanced markets, according to the...

Jersey City, NJ (July 1, 2019) – Catastrophe modeling firm AIR Worldwide has announced that it has published its Catastrophe Exposure Data Exchange (CEDETM) database schema publicly, to facilitate accurate and transparent data exchange throughout the insurance value chain more efficiently, and to encourage additional analytics on a greater number of exposures. CEDE is the open-source database format developed by AIR. AIR Worldwide is a Verisk business. “The (re)insurance industry is striving to introduce more efficiency into their catastrophe modeling workflows, and one way we can help is to facilitate transparency by providing a truly open and public exposure data schema,” said Bill Churney, president, AIR Worldwide. “This is a schema that is familiar to the market; it has been used by our clients for more than two decades and does not require anyone to adapt to a new standard. With this truly open schema and a robust set of APIs, we are pleased to offer the market a solution they can use to streamline their modeling workflows immediately.” AIR has long been a proponent of open standards and in 1993 developed the UNICEDE® data format, which was made available to the industry. AIR’s software platforms were the first to...

Stable, competitive and with its roots in the community, SSQ Insurance is setting its stall out to become more widely recognised among the country’s advisors. A national carrier, the firm was “born and raised” in Quebec and has now spread its wings across Canada, with its focus on group and individual life and health products. Louis Regimbal, vice president, strategy and innovation, told LHP that the origins of the company are in serving the middle class and that this ethos stands it apart from many of its competitors in the industry. In order to grow its presence, Regimbal said the firm has had to not only appeal to the MGAs but also go a step beyond and appeal to their advisors. “One of the challenges we’ve had is that because we are not a household brand, if some advisor comes to you and says, I want to sell this SSQ insurance product, they don’t naturally know who it is, so they rely on the advisor to articulate who we are and what we stand for.” Celebrating its 75th year, SSQ is, however, no young upstart in the industry. With more than 3 million customers, 2,000 employees and $12 billion in...

For a lot of clients, annuities present an unacceptable tradeoff: giving up a piece of their nest egg isn’t worth the prospect of guaranteed lifetime income. According to LIMRA SRI Corporate Vice President Matt Drinkwater, such clients fall into two categories. “If you ask people who have very little money — US$50,000 to US$100,000 — they’re not interested in lifetime income,” Drinkwater said in an interview with InsuranceNewsNet magazine, citing data that the firm obtained in a recent survey of Americans. “And the reason is that this group is replacing a lot of their income with Social Security and they don’t have much money to apply to anything anyway.” The second group are the ones with US$3 million to US$5 million. While a case for annuities can be made for those in the $3 million range, the ones with US$5 million are “probably not going to live long enough to spend down all [their] assets,” Drinkwater said. The “sweet spot” for annuity sales, he offered — the segment with the need and interest, as well as the money to spend on the products — can be found among consumers with US$100,000 to US$1 million in household assets. And when it...

First Asset Investment Management announced on June 28 that it will terminate the CI First Asset U.S. Tactical Sector Allocation Index ETF (TSX: FUT) on or about Sept. 13. The company says it will request that the Toronto Stock Exchange de-list units of the fund from the TSX on or about Sept. 12. Until then, units of the fund will continue to be listed on the TSX.  Following the termination date, the net assets of the fund will be liquidated and the proceeds distributed pro rata among holders of record of the fund. Read the original article at insurance-journal.ca

London, UK (July 2, 2019) – Markel International, the specialist insurer, has launched its Markel Cyber 360 policy, which provides insureds with all-round protection against cyber risks to help them safeguard their business before, during and after a cyber attack. Coverage will be provided on a stand-alone and add-on basis for businesses in the UK, Europe, Canada, Asia and elsewhere. With limits of up to £10m/€15m/$20m per risk, Markel Cyber 360 is offered across most businesses, industries and geographies. With support from a panel of geographically diverse expert advisers, Markel Cyber 360 offers insureds assessments of their vulnerabilities to cyber related incidents and recommendations on how to best address them. It also provides resources and expertise in breach response, incident management, legal, forensic investigation, credit monitoring and call centre management, loss control and public relations to deal effectively with a cyber incident, all supported by a 24/7 helpline which is open 365 days a year, ensuring access to the right experts at the right time. Coverage combines third party liability and first party loss. Third party cover is included for cyber, privacy, e-media and, where required, professional and technology services, as well as a range of other third party benefits....

New fronting carriers and MGA incubators fuel growth Hartford, CT (June 27, 2019) – The Managing General Agent and Program market is continuing its growth and is solidly entrenched as a key business model for property-casualty business, according to a new study by Conning. “The MGA market has nearly doubled since 2012 when Conning began tracking this sector,” said Jerry Theodorou, a Vice President, Insurance Research at Conning. “The MGA market continued expanding in 2018 and early 2019, driven by numerous factors including MGA startups, insurers’ quest for blocks of business, and investment from private equity and MGA incubator firms.” The Conning study, Managing General Agents: The Super Model of the Insurance Industry, presents the MGA marketplace dynamics, trends, players and outlook. Conning’s proprietary MGA database includes current and historical information on more than 600 MGAs and 275 insurer groups that actively use the MGA channel. Additionally, Conning’s 2019 proprietary survey of MGA executives provides context and insight into the challenges facing program business today. “There have been new entrants utilizing the fronting model for MGA business,” said Steve Webersen, Head of Insurance Research at Conning. “We also observe transformer models developing that are incorporating ILS or special purpose vehicles...

Alberta-based BenefitLink Resource Group Edmonton Holdings Inc. Hub’s latest acquisition Chicago, IL (July 2, 2019) – Hub International Limited (Hub), a leading global insurance brokerage, is pleased to announce that it has acquired BenefitLink Resource Group Edmonton Holdings Inc. (BenefitLink Resource Group). Terms of the transaction were not disclosed. Located in Edmonton, Alberta, BenefitLink Resource Group is an independent benefit and retirement consulting firm, focused on optimizing expenditures, driving efficiencies, and simplifying the management of benefit and retirement plans. “Businesses today need to proactively manage and navigate the ever-changing benefits and retirement landscape, which is why we’ve been building on our capabilities in these areas in Canada,” said David Moon, President of Hub International Barton Insurance Brokers, a division of Hub International Canada West ULC (Hub Barton). “BenefitLink Resource Group has the experience along with the resources, tools, and innovative proprietary products and services that will help us meet and exceed client expectations.” Jay Kemp, Owner of BenefitLink Resource Group, will join Hub Barton and report to the senior executive team. 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...

Business Wire NEWARK, N.J.–(BUSINESS WIRE)– Prudential Financial, Inc. (NYSE:PRU) will release its second quarter 2019 earnings on Wednesday, July 31, 2019, after the market closes. The earnings news release, the financial supplement and related materials will be posted on the company’s Investor Relations website at: investor.prudential.com. Members of Prudential’s senior management will host a conference call on Thursday, August 1, 2019, at 11:00 a.m. ET, to discuss with the investment community the company’s second quarter results. Conference Call Information The conference call will be broadcast live over the company’s Investor Relations website at: investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts and other members of the professional financial community are invited to listen to the call and participate in the Q&A by dialing one of the following numbers: Domestic: (877) 777-1971 (Toll Free) International: (612) 332-0226 All others may join the conference call in listen-only mode by dialing one of the above numbers. Replay Information The call will be made available from 2:00 p.m. ET on August 1 through August 8 through a dial-in number as follows: Domestic: (800) 475-6701 (Toll Free) International: (320) 365-3844 Access Code: 458815 A...

CannabisNewsWire As Canadians countdown to the start of cannabis edibles sales in December, some sobering information is filtering in to the effect that life insurance premiums could go up depending on one’s cannabis edibles consumption habits. When recreational marijuana was legalized in October 2018, most insurance companies stopped regarding marijuana users as smokers. People who are categorized as smokers can pay up to four times more in life insurance premiums when compared to those who are categorized as non-smokers. This is because smokers are seen as being higher-risk clients for insurance companies. However, it has emerged that one’s marijuana consumption habits can still get that person in the smokers’ category when taking out a life insurance policy. Different insurance companies have their own cannabis consumption threshold beyond which the individual is classified as a smoker. Many put the weekly consumption cap at 2-4 times, but some have a higher consumption threshold. So, what’s the deal with cannabis edibles and life insurance premiums? It is anticipated that marijuana edibles will appeal to a broader section of the Canadian community, including those who are queasy about smoking cannabis flower. Additionally, it will be easier for someone to consume an edible product, such...