Marketplace

REGULATION

OSFI proposes to change basis for calculating minimum assessments

Canada’s solvency regulator, the Office of the Superintendent of Financial Institutions (OSFI), is proposing to change the basis on which it calculates minimum and non-minimum assessments.

OSFI has suggested using “required capital” as a proxy for the amount of time and resources it devotes to assessing insurers instead of “net premiums.”

The regulator is also planning to raise its minimum assessment level from $10,000 to $15,000, which OSFI estimates would capture an additional 15 property and casualty insurers on top of the 79 currently assessed at the $10,000 minimum.

The full consultation paper can be found at the Office of the Superintendent of Financial Institutions website.

CLAIMS

Crop hail insurance claims on the rise in the Prairies

Crop hail claims are off to a brisk start in Saskatchewan based on the latest figures from the Canadian Crop Hail Association, published in the July 6, 2012 edition of the Hail Report.

Companies providing hail insurance to farmers reported about 2,200 claims filed by the middle of the week of July 2-6. “This is at least double the typical number for this date,” the Hail Report notes. “Claims continue to pour in from storms on July 1-3, so the number will continue to grow.”

The Hail Report notes a significant number of hail claims in Alberta as well. “Although the claim total of 660 is not nearly as high as Saskatchewan, there have already been many hail events in Alberta, particularly in southern regions. Many of the early claims only had canola with enough damage for payouts.”

Hail claims are also escalating quickly in Manitoba, the Hail Report notes. As of early July, the total number of claims approached 500.

Hackers step up their attacks against small businesses

Hackers are increasing their attacks on smaller enterprises with fewer than 250 employees, Symantec Corp. (Nasdaq: SYMC) announced in its June 2012 Symantec Intelligence Report (ISTR).

The report shows that 36% of all targeted attacks (58 per day) during the last six months were directed at businesses with 250 or fewer employees. As noted in Symantec’s recent ISTR, this figure doubled from18% at the end of December 2011.

“During the first half of [2012], the total number of daily targeted attacks continued to increase at a minimum rate of 24%, with an average of 151 targeted attacks being blocked each day during May and June.”

Large enterprises that consist of more than 2,500 employees are still receiving the greatest number of attacks, with an average of 69 being blocked daily.

CANADIAN MARKET

Ontario, Quebec storms cause $200 million in insured damages

A wind and thunderstorm event that hit Ontario and Quebec in late May caused estimated insured damage of more than $200 million, notes the Insurance Bureau of Canada (IBC), citing data from Property Claim Services Canada (PCS-Canada).

PCS-Canada tracks insured losses arising from catastrophic events in Canada. Data confirm thousands of claims have been filed for damage to homes, cars and businesses in the wake of a storm system that hit both Thunder Bay and Montreal over a span of four days (May 26-29, 2012).

The storm unleashed torrents of water that overwhelmed sewer systems and caused widespread flooding of streets, homes and buildings. There have been reports of flooded basements, flooded businesses and cars submerged under water.

Telematics could generate $60 billion in premiums to insurers globally

Telematics is expected to generate approximately $60 billion in premiums to insurers globally, notes a statement from Telematics Update, a reference centre and conference organizer that provides information about automotive telematics.

Opportunities are expected to unfold once the usage-based insurance (UBI) market, which currently has more than 2 million customers, reaches its tipping point, notes the statement from Telematics Update.

Despite widespread innovation in data collection, data management and devices, insurance carriers need to restructure some of their methods to truly embrace the benefits of UBI, the statement reads.

Western Financial acquires B.C. Yacht

Western Financial Group acquired B.C. Yacht Insurance Brokers Inc. (B.C. Yacht) in July.

B.C. Yacht is headquartered in Sidney, British Columbia and is Sidney’s only specialized marine insurance brokerage. The deal is Western Financial Group’s second acquisition on Vancouver Island this year.

“We have developed specialized expertise and underwriting agreements with respect to watercraft and marine insurance, which we will now bring to Western’s expanding network,” said Robert (Bob) Raymond, founder and owner of B.C. Yacht. “This allows us to continue strongly growing our business right here in Sidney, and it means we can offer our excellent products and services right across western Canada.” 

21% of Alberta and B.C. homeowners do not have right protection

Albertan and British Columbian homeowners may not be getting the right home insurance protection, with many being offered named peril and broad-form policies in situations in which a comprehensive policy would be more appropriate.

Square One Insurance Services Inc., which specializes in home insurance, talked to 2,800 residents in Alberta and B.C. over the past 10 months and found that a “shocking” 21% of them do not have the right home insurance protection.

In some instances, home insurance providers are offering named perils (fire or lightning, explosion, smoke, vandalism, theft, hail and some types of water damage) and broad-form policies (which offer comprehensive protection on buildings and named perils protection on personal property).

Square One recommends a comprehensive policy to avoid being blindsided in the event of a claim.