Topic
Mergers and Aqcuisitions
New Brunswick presents insurers with stiff ultimatum
July 31, 2003 by Canadian UnderwriterIn its first “throne speech” since the recent provincial election, New Brunswick’s Conservative Party (CP) government announced a legislative amendment to its Insurance Act which will require all registered insurers to file for new auto rates by August 15 of…
IBC points to flaws in consumer group study of auto insurance
July 18, 2003 by Canadian UnderwriterResponding to a study on auto insurance released by the Consumers’ Association of Canada (CAC), the Insurance Bureau of Canada (IBC) says consumers will be misled by the findings.The study compares auto insurance rates in Nova Scotia to those in…
Ontario auto rates jump 8.5% in second quarter 2003
July 15, 2003 by Canadian UnderwriterOntario auto insurance rates went up an average 8.48% in the second quarter of 2003, based on rate applications approved by the Financial Services Commission of Ontario (FSCO).These changes came into effect prior to the implementation of regulations tied to…
Ontario auto “white paper” brings positive industry reaction
July 11, 2003 by Canadian UnderwriterInsurers are generally pleased with proposals set out in a new Ontario government “white paper” to further reform the auto insurance system.Many of the provisions are aimed at reducing health care costs and court awards on auto accident claims, something…
Eves wants coordinated effort on auto insurance
July 10, 2003 by Canadian UnderwriterAs premiers meet in Charlottetown this week, Ontario’s Ernie Eves wants to see the provinces working together on the auto insurance issue.Eves listed auto insurance as his top priority, alongside federal disaster relief for the SARS outbreak.Eves says that his…
Nova Scotia latest to cap “pain and suffering” awards
July 9, 2003 by Canadian UnderwriterFollowing the lead of New Brunswick, Nova Scotia has implemented a plan to cap “pain and suffering” awards on minor injuries that result from auto accidents.The cap means the in minor injury cases, such as whiplash, accident victims who go…
Health care providers support Ontario auto regs
July 8, 2003 by Canadian UnderwriterA group representing many health care providers is going public with its support for auto insurance reforms implemented by the Ontario government.The Coalition of Regulated Health Professional Associations and Allied Organizations says it supports regulations for Bill-198 which put in…
Insurance Co. of PEI latest to lower New Brunswick rates
July 4, 2003 by Canadian UnderwriterSGI-owned The Insurance Co. of PEI says it will defer a previously announced rate increase on New Brunswick auto insurance, which should result in premiums dropping 10%-18% for policies renewed after July 1.The company calls the move “an interim step”…
Ontario auto regulations meet insurer approval
July 3, 2003 by Canadian UnderwriterAfter more than six months, Ontario has finally put auto insurance regulations on the books in response to Bill-198. The changes were as anticipated and met with insurer approval as a means to address rising accident benefits (AB) costs.Among the…
Reinsurance: Place Your Bets
July 1, 2003 Sean van Zyl, EditorFinancial rating downgrades, market withdrawals and companies going into runoff have dominated media reports on the global reinsurance sector of the property and casualty insurance industry. Much the same applies to Canada’s reinsurance sector, which in the span of a 12 month period has undergone dramatic consolidation in the number of players if not in “real” premium capacity. With reinsurers operating in Canada having for the second consecutive year brought home rate increases of 30%-plus for 2003 renewals, the obvious question is why the sector continues to attract negative growth outlooks from the rating agencies. The answer lies in the multi-billion dollar adverse reserve adjustments made by global reinsurers over the past two years, and just when and to what extent this “loss drain” from prior years will come to an end. Specifically, the rating agencies are concerned over whether the parent owners of these global reinsurance carriers will continue to provide capital support. Also, commentary from senior managers of reinsurance and primary insurance companies suggests that the financial security of reinsurers has replaced the “old school relationship” approach to which companies were able to participate in insurer programs. But, with reinsurance capacity remaining scarce in certain classes of business, such as auto liability, insurers admit that they sometimes have to “place their bets” in settling for reinsurance from a less-than top-rated reinsurance carrier.
“New School” Adjusting
July 1, 2003 Vikki SpencerAdjusting may be a time-honored profession, but it is one facing an intense period of transition. New privacy rules, varied and changing auto insurance systems, the rise of class actions and growing concern with potential bad faith lawsuits. As if…
Insurers and Auto Makers – Put To The Test
July 1, 2003 Vikki SpencerNever before has the public spotlight been aimed so directly on the insurance industry. As rising auto insurance premiums fuel media and government attention, the insurance industry has shifted up in drive to educate the public on the impact of rising claims costs. At the recent AIM Forum in Toronto, auto insurers, manufacturers and suppliers met to discuss how the current auto crisis can be overcome.