Insurable Interest Canadian Insurance Blog

Identity theft is an intricate crime, but its cause is very simple: Ignorance, Lack of Awareness and easy availability of vulnerable information. According to a recent study conducted by Equifax Canada, attempts of credit card fraud have increased by 42 percent over the last two years. Suspected true name fraud (when an identity thief poses as a real person in completing a credit application) has also increased by 84 percent over the last five years. In 2018, millennials were targeted in 48 percent of all fraudulent credit card applications. The damage caused by Identity theft is widespread, and according to survey results, nearly four out of 10 Canadians are victims of it in one form or another. In order to take preventive measures, it is important to understand the various types of identity theft. They include: Financial Identity Theft: Is when personal information from lost credit cards or financial statements is stolen to commit crimes such as opening fake chequing accounts, applying for loans, mortgages and other financial frauds. Insurance Identity Theft: Is a medical identity or financial fraud where stolen personal information is used to issue fake medical, car, travel or home insurance. Medical Identity Theft: Is a crucial...

Life insurers globally face multiple challenges and among the most critical is the sustainability of their agency distribution models. After decades of limited innovation, distribution is on the cusp of major change, which will unlock benefits for all stakeholders, according to a joint research report from Boston Consulting Group (BCG) and Morgan Stanley Research, Reinventing Life Insurance Agency Distribution Globally. This report draws on more than 50 interviews with senior insurance executives; a survey of 850 agents in China, India, Germany, and the United States; and detailed proprietary financial modeling. It envisions a hybrid agency model in which agents, empowered by technology, are embedded in multichannel, and multisolution ecosystems focused on addressing customers’ holistic needs across their lifetimes. Tim Calvert, a BCG partner and co-author of the report, says this transformation involves many challenges. Reinvigorating the agency requires significant amounts of innovation and investment in new capabilities to boost overall effectiveness, but agents have historically been resistant to change. “We believe insurers that approach the problem holistically will unlock significant value. Agents will remain key to insurance distribution, but we expect their role to continue to evolve over time.” Nathalia Bellizia, a BCG principal and co-author of the report, adds...

SimpleProtect is designed to sign up customers quicker and more efficiently, with industry professionals involved since development

While privacy concerns remain paramount, new research reveals a chance for insurers to provide hyper-relevant offerings

A new tool promises to fill gaps in Canadian healthcare, but researchers and health professionals have doubts

The Federal Government has tabled their last budget before they head to elections this Fall, and in it is one very big announcement for first-time home buyers. Federal Finance Minister Bill Morneau has announced $23 billion in new spending. This will be spread out over more than 127 areas. As we had expected this includes money for, first-time home buyers, seniors, skills training for adults, pharmacare and indigenous services. They are breaking one of their key promises in their 2015 election campaign of balancing the budget by 2019. Now there is no timeline for when they will balance the books. This will inevitably become a major talking point among their opposition as they head to the polls. Help for first-time home buyers The headline announcement is aimed at millennials. Called the ‘First-Time Home Buyer Incentive’ it promises to help young people purchase their first home. It will be administered by the Canada Mortgage and Housing Corporation. The government says they will provide up to $1.25 billion over three years, starting in 2019–20 to eligible home buyers by sharing in the cost of a mortgage. As a means-tested program, the incentive will target Canadians that face legitimate challenges entering housing markets. The...

While the value of Canadian homes has decreased for the first time many years, the same cannot be said for Canadian debt levels. This past week, Statistics Canada released its National balance sheet and financial flow accounts looking at the last quarter of 2018, and it shows that the amount Canadians owed relative to their income increased towards the end of the year. The average debt-to-disposable income percentage went to 178.5 per cent (up from 178.3 per cent in the previous quarter). That means for every dollar of disposable income a Canadian household has, they owe $1.79 in credit market debt. The report also dove into the latest housing figures and interest rate trends. Demand for mortgage loans rising In the last quarter, Canadian households borrowed $21.1 billion. While the demand for consumer credit and non-mortgage loans did go down, demand for mortgage loans rose $2.3 billion to a total $12.3 billion. In terms of overall credit market debt, including consumer credit and mortgage and non-mortgage loans, Canadians owe a total of $2.21 trillion. The largest piece of that pie is allocated to mortgage debt at $1.4 trillion, while consumer credit and non-mortgage loans made up $769.4 billion. Despite this...

White Plains, NY…March 19, 2019 Amalgamated Life Insurance Company (www.amalgamatedlife.com), a leading provider of comprehensive insurance solutions, announced today its introduction of a new voluntary group level term life insurance product. Available in 10, 15 or 20 year terms, the product has many attractive features including: guaranteed issue for individuals up to age 65 with minimum participation based on group size; face amounts ranging from $5,000 to $300,000, but not to exceed five times an individual’s annual employment income; and family coverage. Because of its portability feature, insured individuals can take the coverage with them if they change jobs or retire. Spouses can be added to the plan and covered by an amount equal to 50% of the insured worker’s policy face value up to a maximum death benefit of $150,000. Child coverage is also available up to $10,000 for eligible dependents up to age 26. The product also offers an Accelerated Death Benefit Rider included at no extra premium cost. It allows for a portion of the policy’s death benefit to be paid before the death of the insured if diagnosed with a terminal illness with a life expectancy of no more than 12 months. Also available is an...

The Alberta Insurance Council says an agent acted in an untrustworthy and dishonest manner when he repeatedly induced business by providing false guarantees of performance and growth in two client accounts.