Insurable Interest Canadian Insurance Blog

London, UK (May 30, 2019) – Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, and CoverWallet, the market-leading digital insurance company for small businesses, announced today that they have entered into a commercial agreement to serve clients in Australia. The parties are in the process of expanding this partnership to additional geographies, including North America. The current partnership provides Aon with additional access to the growing $100 billion small and medium enterprise (SME) digital insurance market segment, while allowing CoverWallet to expand its reach into new channels and geographies through Aon’s global capabilities and professional network. Aon will partner with CoverWallet around further technological advancements and client opportunities. A new Aon platform powered by CoverWallet launched in Australia this month. “CoverWallet’s innovative data science and technology capabilities are helping to reinvent the insurance industry, particularly in the SME market,” said Liam Caffrey, Global CEO, Aon Affinity. “We are excited to partner with their team and collaborate on client engagements in this fast-growing segment.” CoverWallet, based in New York City, is an insurance technology company with an industry-leading digital platform that serves the SME market and is licensed in all fifty...

Aviva detected £80 million (CAD$137 million) insurance claims fraud in 2018, down £10 million (CAD$17 million) from 2017 Value of liability fraud grew by 20% Decrease in value of bogus claims more than offset by £29 million (CAD$50 million) of fraudulent insurance applications London, UK (May 31, 2019) – The value of fraudulent claims detected by the UK’s largest insurer fell by 11% (£10 million or CAD$17 million) last year, as Aviva detected £80 million (CAD$137 million) worth of suspect or proven fraudulent general insurance claims in 2018. However, the scale of insurance fraud is still substantial. £220,000 (CAD$376,000) in fraud is uncovered by Aviva every day Cracking down on cash-for-crash fraud, better fraud prevention strategies, and new legislation in the form of the UK’s Civil Liability Act 2018 (also known as the whiplash reforms) have all forced fraudsters to explore new cons such as bogus slip-and-trip claims, according to Aviva. In an early sign of the potential impact the whiplash reforms could have on motor injury fraud, the value of whiplash fraud detected by Aviva fell by 10%, while organised fraud such as crash for cash fell by 12.5%. Crash for cash includes induced accidents which put the safety...

Toronto, ON (May 30, 2019) – Echelon Financial Holdings Inc., which has historically operated in the property and casualty insurance industry in Canada, is pleased to confirm that final regulatory approval has been granted for the sale of its wholly-owned subsidiary, Echelon Insurance, to a subsidiary of CAA Club Group (“CCG”). “We are pleased to take this important step towards completing the sale of Echelon Insurance to a buyer that will support the continued growth of Echelon Insurance, and the employees behind its success,” commented Murray Wallace, Chairman of EFH. “We are excited to welcome Echelon Insurance to the CAA Club Group of Companies,” said Jay Woo, President and CEO of CAA Club Group. “We look forward to the continued growth of Echelon Insurance, leveraging its expertise and market leadership in specialty and commercial insurance. We will expand and deepen our relationships with Brokers across Canada to continually enhance insurance products and services to protect Canadians from coast-to-coast.” The Transaction is scheduled to be completed on or about May 31, 2019. The net proceeds to EFH (after adjustments and expenses) is expected to be approximately C$166 million, which includes C$12 million that will be placed in escrow while EFH and...

The Investment Industry Regulatory Organization of Canada (IIROC) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on May 30 a Memorandum of Understanding that has the goal of better protecting against money laundering and terrorist financing while reducing the compliance burden on investment firms. The Memorandum of Understanding (MOU) strengthens information-sharing between IIROC and FINTRAC. This will minimize the organizations’ duplication of work aimed at combatting money laundering and terrorist financing. In particular, IIROC and FINTRAC will share AML-related findings from their audits and examinations of Canadian investment firms. They will also “maintain close, timely and on-going communications about any activities that may impact the other in their pursuits to protect Canadian investors,” say the organizations. Streamlining the compliance burden “Agreements such as this one between IIROC and FINTRAC demonstrate our collaboration to detect and deter any suspicious activities that could threaten the integrity of Canada’s capital markets,” said Andrew J. Kriegler, IIROC’s President and CEO. “By sharing the information we collect and working cooperatively, we will streamline the compliance burden on the firms IIROC regulates, while maintaining investor protection.” Read the original article at insurance-journal.ca

First-to-market expansion of the company’s Advisor Assist Program (AAP) leverages advancements in AI technology and accessibility, services advisors and their clients with greater convenience Toronto, ON (May 29, 2019) – Canada Protection Plan Inc., a leader in No Medical and Simplified life insurance, is pleased to announce AI-focused initiatives to support its advisors. Among the developments is the Advisor Assist Program (AAP), which provides advisors with the option to add a link and/or widget to their website. This feature connects their clients to an online application stream. Canada Protection Plan is also the first insurance provider in Canada to offer integration with Amazon Alexa alongside its new proprietary AI Assistant for Advisors, “Emilie”. Emilie will be available on other primary automated virtual assistant platforms in the near future. These programs are part of the company’s ongoing mandate to incorporate best-in-class technology to suit the needs of its increasingly digital advisors and clients. The first of these solutions will see Emilie, the Amazon Alexa voice-activated assistant, help advisors access information on Canada Protection Plan’s offerings at any time of day. Emilie can answer underwriting and other insurance- and product-related questions to help advisors efficiently service their clients. By using the Alexa...

Toronto, ON (May 29, 2019) – Canada Protection Plan, a leading provider of No Medical and Simplified life insurance, is pleased to announce the launch of Express Elite Term, a no-medical life insurance product. In 15 minutes or less, Canadians and newcomers with a work permit who are in excellent health and between the ages of 18-60 years can apply either by phone or online. Within a few days, they can receive coverage for up to $500,000 with no medical exams required. “Our clients deserve to be rewarded for maintaining a well-balanced lifestyle,” said Michael Aziz, Chief Distribution Officer, Canada Protection Plan. “We developed Express Elite because we recognize that while life insurance is an important part of financial planning, time is in short supply for many Canadians. As consumer tastes change, we’re developing innovative insurance solutions that fit with the desire for a simple, fast, and convenient experience.” Payments begin in the second month on a monthly payment system. In addition to offering $100,000 to $500,000 in coverage, Express Elite offers 20-year and 30-year terms as well as complimentary benefits including emergency financial assistance programs and scholarships. The policy is also renewable up to age 80 and convertible to...

IBC campaigns against distracted driving Montreal, QC (May 21, 2019) – IBC is releasing the results of a survey on distracted driving in order to encourage drivers to adopt good driving habits. The numbers say it all: 75% of drivers said they were distracted at the wheel in the past six months,* even though 90% of drivers were aware that accidents caused by distracted driving can drive up auto insurance premiums. What does distracted driving mean?  Distracted driving takes many forms: phoning, text messaging, eating, drinking, putting on make-up, even listening to music. Any activity that takes the driver’s attention away from the road is considered a distraction. Drivers are distracted and these are not isolated behaviours. In fact, the drivers surveyed said they had on several occasions in the past six months: Eaten or drunk: 55% Phoned: 39% Texted: 11% The age 35-44 sub-group was over-represented among drivers who said they were distracted, with 87% having said they had been distracted in the past six months, compared to 75% for all respondents. “We were very surprised to learn that 90% of drivers are well aware that how you drive can result in higher auto insurance premiums. And yet, we...

Life insurance sales are stagnant. From Staff Reports U.S. Individual life insurance new annualized premium increased just 1% in first quarter 2019, compared to first quarter 2018, according to LIMRA’s U.S. Individual Life Insurance Sales Survey. The total number of individual life insurance policies sold in the first quarter decreased 3%, compared with the same quarter of the prior year. Universal life (UL) new annualized premium was flat in the first quarter. This was primarily driven by the 15% decrease in fixed UL sales. Lifetime guarantee UL (LTGUL) new premium fell 12%, compared with prior year. This is the eighth consecutive quarter of declines for this product. LTGUL represented 15% of total UL sales and 5% of total life premiums in the first quarter. Indexed universal life (IUL) new annualized premium grew 9% in the first quarter. This is the 10th consecutive quarter of growth for IUL. In the first quarter, IUL represented 68% of UL and 24% of all individual life premium. Total UL premium represented 36% of all life insurance premium sold in the first quarter 2019. Whole life (WL) new annualized premium dropped 1% in the first quarter, compared with prior year. Half of the WL writers,...

Customer Relationship Management systems are the backbone of the life insurance industry. From Staff Reports Pacific Life is partnering with Salesforce on a sweeping CRM platform upgrade across its entire U.S. retail businesses. Previously, Pacific Life’s employees across regions and departments did not have a single platform to view and manage every customer relationship and interaction. To address this challenge, Pacific Life partnered with Salesforce on a new initiative it calls the NextGen CRM Program, designed to bridge the gap between Pacific Life’s sales, service and marketing teams and reimagine how they engage with financial professionals, Pacific Life said in a news release. “Pacific Life recently celebrated its 150-year anniversary and I firmly believe that the next 10 years will involve more change than those 150 years combined,” said Brian Woolfolk, senior vice president, sales and chief marketing officer for Pacific Life’s Retirement Solutions Division. “We are coming together to digitally transform and build the future of our organization, and we are thrilled that Salesforce is one of our partners in this journey forward.” Pacific Life is deploying Salesforce as its enterprise-wide, integrated CRM platform to support“seamless customer engagement and deliver high-value, differentiated experiences by better collaborating and connecting across...

Orlando Sentinel (FL) Grant Amato, accused of killing his parents and brother, lavished a Bulgarian webcam model he had met online with gifts and compliments, spending thousands of dollars to send her clothes and sex toys — which she would model for Amato in provocative, and often sexually explicit, photos and videos. Evidence records released by the Seminole-Brevard State Attorney’s Office on Wednesday provided an intimate look into the relationship between Amato and the model, Silviya Ventsislavova, in the months leading up to the January killings. The records also reveal that Grant Amato tried to claim benefits from the life insurance policies of his parents, Chad and Margaret Amato. The insurance company, The Standard, denied his request May 7, citing Grant Amato’s arrest in connection with his parents’ murders. Authorities say Grant Amato had stolen about $200,000 from family members to fund the online relationship, angering his family and provoking his father to issue an ultimatum: Stop talking to the model, or get out of the house. Chad Amato’s rules for his son were handwritten on two pages of paper, copies of which were included in Wednesday’s records release. Grant Amato was given the choice to come back home, move...