Features
Rate, Risk and Reputation
May 1, 2005 Craig HarrisA recent gathering of industry leaders, organized by the CIP Society, featured animated discussions about future directions in the Canadian property and casualty insurance industry. Two broad themes of keeping rates (and risk assessment) realistic in a softening market and salvaging the industry’s reputation emerged as key messages.
compensation reform: Motivating Integrity
May 1, 2005 Luis Navas, senior vice president of Executive Risk Consulting“One of the great, as-yet-unsolved problems today is executive compensation and how it is determined” – SEC Chairman William Donaldson, 2004. How do insurers measure up? Independent advisory firm Executive Risk Consulting, which specializes in executive compensation and board effectiveness…
Stalled Momentum..?
May 1, 2005 Sean van Zyl, Managing EditorThe 2004 financial returns of both the Canadian and U.S. property and casualty insurance industries tell a story of “record profitability”. Notably, the earnings gain made by insurers on both sides of the border were primarily driven by robust underwriting…
History of Stability
May 1, 2005 Vikki SpencerFor 60 years, Saskatchewan Government Insurance (SGI) has remained a force in that province, withstanding changing governments and auto insurance reform measures to post its strongest results ever last year. New president Jon Schubert, who took over the reigns in 2004, says the first 60 years are a prelude to continued growth – including further expansion beyond the province’s borders – albeit cautiously and with an eye to maintaining the stability that is at the core of SGI’s mandate.
Claims costs for 2005 will outpace premium growth
May 1, 2005 by Canadian UnderwriterDespite the strong results posted by the U.S. property and casualty insurance industry in 2004, this year will likely see loss costs significantly outpace premium growth, according to a special report by A.M. Best. The rating agency says the US$6.3…
Canadian insurers’ future earnings likely to diminish
May 1, 2005 by Canadian UnderwriterWhile 2004 was the best year of the hard market cycle in terms of company financial returns, the year ahead will likely see deteriorating results as lower pricing and rising claims costs eat at the industry’s bottom-line, predicts George Cooke,…
PACICC increases insolvency preparedness
May 1, 2005 by Canadian UnderwriterThe Property and Casualty Insurance Compensation Corp. (PACICC) says member insurers have agreed to increase their maximum permissible assessment to the guaranty fund in order to better prepare for future insolvencies. At the recently held annual general meeting (AGM), PACICC…
U.S. insurers reap strong underwriting gains for 2004
May 1, 2005 by Canadian UnderwriterOn the back of a strong underwriting performance, U.S. property and casualty insurers lifted net income for 2004 by 29% to US$38.7 billion compared with the US$30 billion reported the previous year. This saw the industry notch up a return…
Quebec regulator finds “conflict” in insurer/broker relations
May 1, 2005 by Canadian UnderwriterAfter several months of uncertainty for Quebec’s independent brokerage community, the province’s insurance regulator, the Autorite des Marches Financiers (AMF), has issued its findings from an investigation into intermediary remuneration arrangements and market conduct. Unfortunately for the brokerage community, the…
Small Business Coverages: Cost Effective Delivery
April 1, 2005 Mike Jakeman, vice president of commercial insurance at Royal & SunAlliance CanadaThe small to medium-sized enterprise (SME) business segment dominates the Canadian economy. Yet, it is a marketplace which property and casualty insurers have in the past experienced varied success, with not all carriers having expressing wholehearted enthusiasm at developing coverage solutions appropriate to the needs of these insureds. The reaction of insurers in the most recent hard market pricing cycle bears testimony to the inconsistency which some insurance companies have approached underwriting of the small to mid-sized business marketplace. But, with renewed pricing stability having being achieved in many commercial lines, we believe that a concerted effort is now needed to provide long-term and consistent coverage solutions to the SME sector.
Wholesale Changes
April 1, 2005 Tom Talbot, president of The Wholesale Insurance GroupWith the hard market all but over, Canada’s insurance “wholesale” market is facing increased competition from standard carriers. What will this mean for brokers? And, how will the specialty firms adapt?
The Group Factor
April 1, 2005 Craig HarrisThe group insurance segment of the property and casualty insurance industry was one of the few places clients could find some shelter from the large premium increases during the recent hard market. Posting generally better loss ratios and offering steadier rates, many group insurers experienced considerable growth in premium volume. They also used the past three years as an opportunity to “fine tune” risk classification. But, as the market softens, the question now is who will be able to continue this growth – while keeping strict criteria for a “homogenous” group definition?