Insurable Interest Canadian Insurance Blog

Many consumers open to insurance alternatives from providers such as Amazon, Google and Uber Costa Mesa, CA (June 25, 2019) – Property and casualty (P&C) insurance companies in Canada are falling short of customer expectations for digital self-service tools, customer service channels and omni-channel integration. According to the inaugural J.D. Power Canada Insurance Digital Experience ReportSM, this lack of digital maturity on the part of P&C insurers leaves the door open to competition from alternative, digital native companies such as Amazon, Google and Uber. “Today’s P&C insurance customer expects their provider to deliver an efficient, seamless experience across multiple offline and digital channels,” said Tom Super, Vice President Property and Casualty Insurance Intelligence at J.D. Power. “The 12 insurance carriers we evaluated for this report show a visible presence when it comes to their digital offerings, but they are still severely lacking when it comes to meeting expectations of core insurance digital functionality.” The J.D. Power 2019 Canada Insurance Digital Experience Report evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. The report examines the functional aspects of websites and mobile apps based on five factors (in order of importance): ease of...

Toronto, ON (June 25, 2019) – FIRST Insurance Funding of Canada (FIRST Canada), the industry leader in payment solutions, is pleased to announce an enhanced First Connect® platform for their MGA and carrier partners. First Connect® is the market-leading payment solution designed specifically for MGAs, carriers, and their brokers. First Connect® allows MGAs and carriers across the country to seamlessly provide brokers point-of-sale payment solutions for their clients. FIRST Canada’s MGA and carrier partners can now enjoy the benefits of an enhanced First Connect® platform including a modern design and user-friendly interface. The updated First Connect® platform now includes the addition of paperless payment options, which enables brokers and their clients to sign the premium finance agreement securely online with eSignature. In addition, MGAs and carriers now have the ability to add multiple policies to a single quote, reducing data input and enabling a streamlined workflow and easier reconciliation for back office efficiency. “We pride ourselves on listening to our partners and delivering product improvements that the industry wants and needs,” said Stuart Bruce, CEO of FIRST Insurance Funding of Canada. “We are pleased to provide our MGA and carrier partners with an enhanced First Connect® platform to better service...

By Stephen Applebaum, Insurance Solutions Group — Is Data Privacy becoming the “Climate Change” of Our New Digital World? Way back in 1975, geochemist Dr. Wallace Broecker of Columbia University published his article “Climatic Change: Are We on the brink of a Pronounced Global Warming?”. Today, almost 45 years later, the debate has intensified but still rages on, even as some believe the clock is running out. The UN Intergovernmental Panel on Climate Change warns that we have only 11 years to limit the chances of a climate change catastrophe. I see very strong parallels between Dr. Broecker’s warnings and those related to our loss of Personal Data Privacy. Society is facing the threat of climate change, which some experts say will reach a tipping point; we may be reaching a similar tipping point with privacy and cyber security. In their paper presented at the 1965 Fall Joint Computer Conference titled “Some Thoughts About the Social Implications of Accessible Computing”, E. E. David, Jr. of  Bell Labs and R. M. Fano of MIT, they warn that “the same technology which has given us new dimensions in communication has been used to implement eavesdropping equipment”. They went on to say that “the...

Property and casualty insurers are expected to shift from their current state of “detect and repair” to “predict and prevent” over the next decade, transforming every aspect of the industry in the process, according to a new report by consulting firm McKinsey & Company. And this new state is expected to affect everyone from the consumer to the broker and further. “The pace of change will accelerate as brokers, consumers, financial intermediaries, insurers, and suppliers become more adept at using advanced technologies to enhance decision making and productivity, lower costs and optimize the customer experience,” states the report. While the industry will be focused on artificial intelligence and other technology trends, it won’t be an insurer’s IT team that gets projects moving. Rather, states the report, new trends will be led by board members and customer-experience teams who invest the time and resources to build a deep understanding of the technologies. Buying insurtechs and forging partnerships The report states that some insurers are already beginning to take innovative approaches such as starting their own venture-capital arms, buying up promising insurtech companies and forging partnerships with leading academic institutions. As projects move forward it will be data, both internal and external,...

Orlando Sentinel (FL) Jun. 25–The Federal Trade Commission is suing a Kissimmee man that it alleges made illegal robocalls for a decade with a computer auto-dialer used by his companies and others. For the past 10 years, Derek Jason Bartoli reportedly operated a computer system he developed for numerous telemarketer clients — many of which are also now facing lawsuits — including those that sold cruises and vacation packages, medical devices, auto warranty, life insurance and debt relief services. Bartoli has admitted to the illegal activity, according to the lawsuit, which seeks $2 million in civil penalties. Over six months in 2017, Bartoli made 57,134,629 illegal robocalls, the FTC says. Even after Bartoli was contacted by the FTC, he continued to run his robocall operation, according to the suit. The investigation involving Bartoli is part of a joint-agency robocall sweep led by the FTC called “Operation Call it Quits,” in which telemarketers responsible for more than a billion illegal robocalls were implicated. Neither a phone number nor an attorney for Bartoli was available. Andrew Smith, the FTC’s Bureau of Consumer Protection director, said at a news conference Tuesday the operation involved serial callers who had made more than 3 billion...

Life insurance is one of the biggest misunderstood financial planning tools in Canada, according to a senior advisor. Chris Karram, founder and chief strategy officer at SafeBridge Financial Group, told Life and Health Professional that too many clients see life insurance as literally just that and fail to appreciate the vehicle’s potential in terms of tax sheltering and dividends. He said that with his typical client base of real estate developers, builders, doctors, executives and entrepreneurs, life insurance can often be additionally utilised as a core pillar of their portfolio. He said: “We look at ways to properly structure a life insurance product or vehicle so we can protect their family today both in terms of tax erosion, in terms of tax sheltering the money inside the policy, and to also protect them for generations to come. We can build long-term wealth from a family generation perspective. “We’ve got a multitude of different ways of working with clients but life insurance and financial planning is where the conversation starts.” Karram said he has family market clients who need basic insurance protection but, on the flipside, his private wealth clients are looking for something more creative that’s not on the traditional...

Advisors who don’t think they can convince their clients to include annuities in their portfolio may find themselves pleasantly surprised. In February, US-based research firm Greenwald & Associates and CANNEX conducted their fifth annual Guaranteed Lifetime Income Study. It included a comprehensive survey of 1,005 Americans between the ages of 55 and 75 with at least US$100,000 in investable assets, as well as an additional survey of 302 financial advisors. According to the findings, 67% of those close to retirement or in the early stages ascribe high value to guaranteed income to supplement their Social Security. And when guaranteed lifetime income (GLI) products were presented as part of a retirement portfolio strategy to cover essential expenses and supplement social security, 71% thought it would be a good strategy for their own retirement. The survey also found mounting evidence that consumer sentiment on GLI products drops as stocks rise, and increases during periods of sharp market volatility. The top retirement concerns driving interest in guaranteed income include paying for long-term care, meeting healthcare needs, and not outliving one’s money. “There’s strong consumer interest in guaranteed lifetime income products to provide peace of mind knowing they will be able to meet their...

Predictive analytics is already a part of many North American life insurers’ product-development arsenal. But according to new research, they could be missing an opportunity to leverage it in one major area. Based on a survey of 51 large life insurers based in the Americas, analysts at Willis Towers Watson have found that few life insurers in North America are doing much to leverage predictive analytics in individual annuity pricing or claim management operations, reported ThinkAdvisor. When asked how they currently use predictive analytics, around 55% of the participating insurers said they analyse internal customer data with the technology. Another 55% said they leverage it toward analysing information resulting from customer interactions and surveys; just 13% said they apply it to social media. When it came to forecasting mortality and morbidity risk, around 55% said they apply the tool that way for group annuities inside many pension plans, while 40% cited that application for individual annuities. Only 19% applied the technology for such forecasts within group life mortality products. Turning to pricing and claim management, 28% of survey participants confirmed that they use predictive analytics for group annuity pricing, while 10% said they use it for group annuity claim management....

PR Newswire Two ratings agencies, S&P and Fitch recently – upgraded the credit ratings of CNO Financial Group. With these two upgrades, CNO Financial is now rated investment grade by all four leading ratings agencies – A.M. Best, Moody’s, Fitch and S&P. CNO Financial Group is the holding company for several national life and health insurers including Bankers Life and Casualty Company, Colonial Penn Life Insurance Company and Washington National Insurance Company. “We are pleased that S&P and Fitch have recognized CNO for successfully reducing our exposure to legacy long-term care (LTC) liabilities with our 2018 LTC reinsurance transaction and acknowledged our improving operating performance and balance sheet strength,” said Gary C. Bhojwani, chief executive officer. “We continue to focus on our strategic growth priorities and launching new products and services to fulfill the life and health insurance and retirement income needs of middle market consumers.” On June 21, 2019, S&P Global Ratings raised CNO’s senior unsecured debt rating to ‘BBB-‘ from ‘BB+’ and the financial strength rating of the company’s operating subsidiaries to ‘A-‘ from ‘BBB+’. The rating outlook is stable. On June 14, 2019, Fitch Ratings upgraded CNO’s senior unsecured debt rating to ‘BBB-‘ from ‘BB+’ and the...

Innovating the insurance industry, Apollo empowers brokers to better serve small businesses by giving them the flexibility and convenience that they have come to expect in every other purchase experience Vancouver, BC (June 25, 2019) – Apollo Insurance Solutions, Canada’s largest online insurance marketplace, has officially launched an industry-first monthly small business insurance subscription available in Canada through the groundbreaking Apollo Exchange – an ecommerce marketplace that enables brokers and their small business clients to instantly quote and purchase insurance products entirely online. The announcement follows Apollo’s angel round of funding, which, after the completion of beta testing on April 1, 2019, successfully closed at $1 million CAD with support from notable investors, including Drew Green, Matias Marquez, Kim Kaplan, and Tim Gamble. This news comes at a critical time when the existing process for insurance policies lacks efficiency and results in gaps in suitable coverage, particularly for small businesses. “Today’s launch is a defining moment in the Apollo story, and a memorable day for the entire team,” said Jeff McCann, co-founder and CEO of Apollo Insurance Solutions. “We wanted to make it easier for Canada’s small businesses to operate, and a major pain point with starting and growing a small...