Insurable Interest Canadian Insurance Blog

Because different annuity products are offered with varying benefits and selling propositions, those selling annuities can’t use the same sales pitch for every customer they encounter. To succeed, they must understand the needs and financial priorities of clients and prospective customers. That’s the kind of thinking behind new research from LIMRA Secure Retirement Institute (LIMRA SRI). “LIMRA SRI published a study of recent annuity buyers, comparing the age, contract size and types of products of individual annuity owners to help advisors and companies better understand the profiles of different annuity buyers,” said Todd Giesing is director, annuity research at LIMRA SRI, in a recent column on InsuranceNewsNet Magazine. To start with, he explained that LIMRA SRI has found three different categories into which pre-retirees and retirees can be divided: Guarantee seekers – With an overwhelming preference for creating a lifelong stream of guaranteed income, such consumers tend to have low risk tolerance and solid trust in their advisors. Estate builders – Viewing portfolio growth as paramount, such customers typically want more control over the way their assets are managed, have high risk tolerance, and exhibit cautious trust in their advisors. Asset protectors – Such investors are focused primarily on preserving...

While online tech platforms have upended industries from financial services to transportation, such digital disruptors are starting to take a more diplomatic approach to the life-insurance industry. “[A]s insuretech ventures, as they are collectively known, have raked in growing sums of investment over the past couple of years, a nondisruptive business model has emerged as a path to success in life insurance,” reported the Wall Street Journal. Typical Silicon Valley successes involve offering consumers with a product in a more accessible package than traditional providers have brought to market. But that approach is problematic in the life insurance space, where opening doors to less-healthy individuals could tank profits and removing requirements for blood and urine samples generally make higher premiums necessary. Another hurdle, according to the Journal, comes from capital requirements that regulators impose on life-insurance industry players. Rather than try to replace traditional life insurers, a number of companies are seeking success through symbiotic relationships. One such company is Health IQ, a California-based outfit that administers an online quiz to self-identified dieters, athletes, cyclists, and weightlifters looking to get life insurance. Those who get a passing grade stand to save thousands of dollars in premiums over the life of...

Last week, the Advisory Council on the Implementation of National Pharmacare released its final report on the issue, which called for universal single-payer public pharmacare across the country. Following that report, stakeholders from all sides have weighed in, offering reactions that run the gamut from praise to criticism. A statement from the Registered Nurses’ Association of Ontario (RNAO) expressed agreement with the report’s 60 recommendations. Citing the $34 billion reportedly spent by Canadians on prescription medication in 2018, the RNAO urged the federal government to quickly implement all the report’s proposals and accelerate its suggested timelines. “It is clear a single-payer system would save Canadians’ lives and money. It is also clear that Canadians and provincial and territorial governments are struggling with the high and escalating cost of drugs,” said Dr. Angela Cooper Brathwaite, president of the RNAO. The Canadian Life and Health Industry Association (CLHIA), meanwhile, offered more measured support. It urged the federal government to move forward on controlling prescription-drug costs and expanding access to prescription medicines, particularly those without coverage and those struggling with catastrophic drug costs. That includes the creation of a new Canadian Drug Agency, introduction of funds earmarked to improve access to high-cost drugs...

The Conservative government’s decision to stop covering the health expenses of Ontarians who travel abroad is making waves. France Gélinas, Ontario’s New Democratic Party (NDP) health care critic, opposes the measure, notably because of its potentially dire consequences. Gélinas, who is also the chief opposition Whip, stresses that this decision creates serious problems for people with chronic kidney failure treated by hemodialysis. Up to now, the Ontario Health Insurance Plan (OHIP) has been reimbursing $210 per treatment received abroad; dialysis patients require several such treatments each week. This coverage will end on October 1, 2019. According to the The Canadian Organ Replacement Register (CORR), 9,532 Ontarians with kidney failure were treated by hemodialysis in the province in 2017. “For these people, provincial medical insurance is often the only insurance they can obtain,” to cover the cost of hemodialysis received abroad, Gélinas told Insurance Journal. “Patients cannot bring their machines with them. They would need four large movers to help them do that.” Yet some dialysis patients are required to travel, for instance to study, work or visit relatives. Insurers to the rescue? Christine Elliott, Ontario Ministry of Health and Long-Term Care, recently contacted stakeholders to discuss ways “to protect hemodialysis patients’ ability...

20th anniversary Auto Insurance Study identifies key drivers of significant change in Customer Experience Costa Mesa, CA (June 13, 2019) – The last decade of seemingly non-stop direct-to-consumer advertising and heavy investment into digital self-service technologies have driven roughly one-fourth of auto insurance customers to adopt direct distribution models that bypass agents in favor of do-it-yourself tools. According to the J.D. Power 2019 U.S. Auto Insurance StudySM, that transition has helped overall customer satisfaction with auto insurance providers reach its highest level ever. “Auto insurance customers have more access, control and visibility into the details of their policies, and that is translating into record high levels of customer satisfaction,” said Robert Lajdziak, Senior Consultant for Insurance Intelligence at J.D. Power. “As customers take greater control of their auto policies, it’s also becoming more important for insurers to offer superior digital experiences and easy access to account management features such as bill pay, policy information and an integrated experience for customers who bundle multiple policies.” Following are some of the key findings of the 2019 study: Record-high satisfaction driven in part by direct service models: Overall customer satisfaction with U.S. auto insurers improves in 2019 and is now at a record-high level...

A major transaction in Saguenay-Lac-Saint-Jean Sorel-Tracy, QC (June 10, 2019) – André Lussier, President of Lussier Dale Parizeau and the four partners of Genius Financial Group – Jean-Pierre Gauvreau, Serge Gravel and Éric Émond, as well as Émilie Gauvreau – are pleased to announce the combination of activities of Genius Financial Group and Lussier Dale Parizeau. “This grouping will allow us to consolidate our presence in the Saguenay-Lac-Saint-Jean region and become a major player in life and health insurance in this region, as we already are in property and casualty insurance,” said Mr. Lussier. As a result of this consolidation, Lussier Dale Parizeau will have more than 800 employees, including 500 brokers, adjusters, actuaries and lawyers, in 29 branches serving more than 160,000 clients. The firm now has a total premium volume of $475 million in both life and health and general insurance. The Saguenay-Lac-Saint-Jean region now has 130 employees across 8 branches. Mr. Gauvreau is enthusiastic about the opportunity to bring added value to existing customers. “This consolidation will enhance our customers’ experience through a wide range of products and services, let us gain access to an expanded network of insurers and increased bargaining power in a competitive market....

FRISS Fraud Detection at Claims accelerator offers integrated solution with Guidewire ClaimCenter; easy to download, implement, and use within existing claims processes, while empowering claims adjusters Utrecht, Netherlands & Medellin, Colombia (June 17, 2019) – FRISS and Guidewire Software, Inc., provider of the industry platform P&C insurers rely upon, today announced that SURA Colombia has successfully deployed its integrated claims fraud detection programme for motor personal lines with the FRISS accelerator for Guidewire ClaimCenter™. SURA is leveraging the Guidewire ecosystem and benefitting from integrated claim fraud detection that has the ability to stop payment of claims identified as potentially fraudulent while they are investigated. At the same time, the insurer is now capable of delivering faster customer service, as obviously legitimate claims can go on a fast track for immediate pay-out. SURA Colombia is the first insurance company to deploy the accelerator from the Guidewire Marketplace. Thanks to this accelerator, the integration of FRISS within Guidewire ClaimCenter delivers a seamless experience for the user, and a very short implementation time. FRISS’s Ready for Guidewire accelerator enables SURA to provide streamlined processing for fraud and risk management that comprises: A real-time and AI-powered risk indicator for each claim; A risk score...

By Chris Jones, TurnOnVPN — With technology disrupting so many aspects of insurance, insurers are under increasing pressure to update their business model. On one hand, InsurTech startups are attracting young customers and investors with innovation and newness; on the other, tech giants like Amazon are entering the field with immense resources and digital expertise. Established players need to catch up, and they need to do it fast. But is this race towards innovation forcing them to leave privacy concerns behind? In the information age, where do insurers stand when it comes to data privacy and security? “Show me your Apple watch, I’ll tell you who you are.” For a data-based industry such as insurance, the Internet of Things (IoT) is a gold mine. IoT devices like smartphones, Google Home, or Apple watches are a source of intimate data, giving insurers much better insight into your life than a standard underwriting form. Thanks to technology, insurers no longer need to rely on indirect indicators, such as age or gender. Access to your fitness tracker or a driving app tells them a lot more about your lifestyle, habits, and preferences than any conventional questionnaire. No wonder, then, that some health insurers...

Life insurance sales are stagnant, but profits are still being made. By Bryan Nicholson Retirement security has become one of the top domestic policy issues to be discussed this year — and for good reason. A survey released by AARP indicates that a majority of U.S. adults may be at risk of a retirement savings gap, with 59% of respondents saying it was only “somewhat likely” to “not at all likely” that the combination of their savings, investments and Social Security benefits would be sufficient to cover their financial needs throughout retirement. The good news for those in the process of saving for retirement is that Congress appears to be on the verge of taking action to make things a little easier. The House of Representatives recently passed a bipartisan bill (The SECURE Act), which incorporates measures from the Senate’s own Retirement Enhancement and Savings Act of 2019. These bills would provide U.S. workers with expanded opportunities to participate in employer-provided retirement plans and create other reforms to improve Americans’ retirement security. But what about those Americans who are already deep into their retirement years and whose age or health precludes their ability to generate more income? What can be...

The Investment Industry Association of Canada (IIAC) announced on June 13 the 2019 Inductees into the Investment Industry Hall of Fame. The new inductees are: Helen Kearns, President & CEO, Bell Kearns & Associates; James Pitblado, Former Chairman, RBC Dominion Securities; Charlie Spiring, Founder, Wellington West Holdings, Founder and Chairman Wellington-Altus Private Wealth; Eric Sprott, Founder, Sprott Securities and Sprott Asset Management and Robert Wyman, Former Chairman & CEO, Pemberton Securities. (Posthumous). The Investment Industry Hall of Fame was created in 2013 “to honour excellence, integrity and leadership in Canada’s investment industry,” says IIAC. To date, 40 industry professionals have been inducted. “Like their predecessors, the 2019 Inductees have had stellar careers across the different businesses in our industry, distinguishing themselves at every turn. They are people of action. They are people of principle and vision. Their business careers and commitment to community reflect that. Their contributions have left an indelible mark on our industry and our country, and set an example for future business leaders,” said Ian Russell, IIAC President and CEO. This year’s Inductees will be formally recognized and celebrated at the Investment Industry Hall of Fame Gala Dinner and Induction Ceremony on Oct. 24 in Toronto. Read...