Marketplace

CANADIAN MARKET

Zurich Canada launches drone insurance package

Zurich Canada has launched a new drone insurance product that it maintains “closes an important coverage gap” for companies already making use of drones.

Developed in partnership with Global Aerospace Underwriting Managers Limited in the United Kingdom, the package will help customers across a range of industries take advantage of the risk mitigation and cost-saving opportunities available through the use of unmanned aircraft systems (UAS), commonly referred to as drones, Zurich reports.

The new policy provides companies with both first- and third-party coverage for a variety of risks, including for theft or damage to the drone and any ground equipment used to operate it, or any electronics or components (payload) carried, as well as for property damage and bodily injury caused by the drone, premises liability at locations used in connection with scheduled aircraft, and medical expenses. The package also includes additional coverage extensions.

“Zurich’s customers in Canada will be the first ones around the world to have access to this unique insurance solution, thanks to the sophisticated regulatory environment governing the use of drones in Canada,” says Urs Uhlmann, chief executive officer of Zurich Global Corporate Canada.

The package will next be rolled out on a country-by-country basis, based on local demand and sophistication of the regulatory environment governing drones.

Guy Carpenter launches flood model for Canadian insurance market

Guy Carpenter has launched its new G-CAT Canada Flood Model, what it calls the “first-ever probabilistic flood model for Canada” that will allow insurers to assess their exposures to the peril.

The release seeks to address “the concern of extreme losses from natural hazards in Canada, such as flooding,” says Donald Callahan, president and chief executive officer of Guy Carpenter Canada.

The model evaluates fluvial (or riverine) overland flood risk, together with the off-plain component of such events, but does not currently include pluvial, coastal flooding, flash flooding, mudslide (slope failure), groundwater, sewer back-up or tsunami risk.

Among other things, the model – which enables clients to evaluate exposure to floods and the financial cost of a range of possible flood events – also features pre-built specific historical Canadian events, variable resolution grids, and a stochastic event set of almost 80,000 synthetic events across the country.

New high net worth personal insurance capabilities through ACE

ACE Group is offering high net worth personal insurance capabilities in Canada through ACE Private Risk Services, which will provide insurance solutions for Canadians, Americans and other foreign citizens with properties in Canada.

The program features a highly customizable and specialized package of policies that can include home, valuable collections, watercraft, umbrella liability, and, through an alliance with CAA Insurance, auto insurance.

“We see a tremendous opportunity in Canada, where the high net worth personal insurance market exceeds $1 billion in premium,” James Hasley, senior vice president, Canada country manager for ACE Private Risk Services, says in a statement.

Desjardins launches app for auto insurance in Ontario, Quebec

Desjardins General Insurance Group (DGIG) has launched a mobile app for its Ajusto usage-based auto insurance, under which the insurer offers discounts based on driving behaviour.

With the app – for devices running Apple iOS and Google’s Android operating systems – DGIG is offering “a 100% mobile insurance program that doesn’t require the installation of a device in the vehicle,” it reports.

“Anyone, including non-clients, can try the Ajusto app for 90 days with no obligation to get an idea of the discount that could apply,” notes a company statement. “By the end of the year, the program will also be made available to State Farm (acquired by DGIG) clients in Ontario.”

REGULATION

Warning issued on ride-sharing programs

The Financial Services Commission of Ontario (FSCO) recently posted an infographic on its website that warns drivers about the insurance risks associated with ride-sharing programs.

Ride-sharing services use an online app to connect passengers with drivers using their personal vehicles. “The services may significantly impact your insurance coverage,” the infographic notes, adding that a standard auto insurance policy excludes coverage when the vehicle is used to carry paying passengers or used as a taxi.

“You may not be protected against certain damages, losses and liabilities,” it cautions. “Know if you’re covered – ask your driver.”For those looking to take part as a driver, FSCO advises checking to ensure that one’s insurance protects the driver, passenger and others.

Draft demutualization regs show need for vigilance, relationships

Ontario mutuals should take note of the new draft federal regulations on demutualization even though, as currently published, they do not apply to provincially chartered mutuals, John Taylor, president and chief executive officer of the Ontario Mutual Insurance Association (OMIA), recently suggested.

“OMIA recognizes the importance of being vigilant and proactive at the provincial level. It’s the federal regulations, no doubt, that may form the blueprint for any future provincial demutualization initiatives,” Taylor noted during OMIA’s Annual General Meeting.

That is just one more reason for Ontario mutuals to get to know and maintain contact with elected government representatives, he said.

Alberta’s bid to curb distracted driving, hike penalties gets green light

Draft Alberta requirements geared at curbing distracted driving by beefing up fines and penalties for texting while behind the wheel have received the green light.

Bill 204, the Traffic Safety (Distracted Driving Demerit) Amendment Act, 2014, was tabled in December by MLA Moe Amery and received unanimous support during third reading.

The bill amends Alberta’s Traffic Safety Act by adding that a person who is guilty of an offence under subsections 115.1, 115.2, 115.3 or 115.4 is liable to a fine of $250 (up from $172) and shall be assessed three demerit points in accordance with the regulations.

The aforementioned subsections under the act’s Prohibited Operation of Vehicles section are as follows: cellphones, electronic devices, etc.; display screen visible to driver prohibited; global positioning system; and prohibited activities.

RISK

Traditional supply chains to undergo radical transformation

New technologies, competition and customer demands will work together to radically change traditional supply chains over the next five to 10 years, notes a new report by MHI and Deloitte.

“The speed at which supply chain innovation is being adopted – coupled with rising consumer expectations for anytime, anywhere service – is stressing traditional supply chains to near-breaking points,” says George Prest, chief executive officer of MHI, which represents the material handling, logistics and supply chain industry.

“Companies that continue to use traditional supply chain models will struggle to remain competitive and deliver orders that are accurate and on time,” Prest advises.

The report recommends firms embrace the transformation unfolding and invest in new technologies that will allow them to compete and thrive as their supply chains continue to face pressure to do more with less.

REINSURANCE

New global alliance of disaster research institutes formed

The Toronto-based Institute for Catastrophic Loss Reduction (ICLR) is forming a new worldwide alliance with an international group of disa
ster research institutes.

The proposal builds on initiatives presented at the Sendai Framework for Disaster Risk Reduction 2015-2030, reached at the 3rd U.N. World Conference on Disaster Risk Reduction.

Glenn McGillivray, managing director of the ICLR, recently reported that the Global Alliance of Disaster Research Institutes (GADRI) will serve as a forum for sharing knowledge and promoting collaboration on topics related to disaster risk reduction and resilience to disasters. GADRI will facilitate discussions on planning and organization of natural disaster research, formation of international research groups to investigate current global disasters, establishment of an international network for timely communication related to natural disaster research, and other issues pertaining to the promotion of natural disaster research.

IBC supports earthquake report issued in B.C.

Insurance Bureau of Canada (IBC) has applauded the British Columbia government’s earthquake preparedness report, which recommends provincial and federal governments engage with the insurance industry and other key stakeholders to develop a disaster resilience strategy and increase public awareness.

It is clear from the report and other previous reviews “that more must be done at the individual level, and at all levels of government if B.C. is going to be adequately prepared for a major earthquake or other catastrophic disaster,” the government reports.

“Preparing Canadians for an earthquake is a strategic priority for Canada’s insurance industry,” adds Bill Adams, vice president, Western and Pacific for IBC.

TECHNOLOGY

IBM service would let insurers extract insight from connected vehicles

IBM has announced plans to introduce a computing service “that helps insurance companies extract insight from connected vehicles.”

IBM reports in a statement that it is “building a cloud-based open platform” designed to help companies build solutions for the Internet of things, or IoT.

For example, IBM will introduce a cloud-based service that helps insurance companies extract insight from connected vehicles.

“This will enable new, more dynamic pricing models and the delivery of services that can be highly customized to individual drivers.”