Features
Primary Insurer Strategies 2005: Cycle Management
December 1, 2004 Sean van Zyl, EditorFrom “bust to boom” is how many insurer CEOs regard the financial landscape of the Canadian property and casualty insurance industry over the past two years. And, with 2004 likely to be the peak year of profitability for the primary insurance sector, many insurer CEOs expect that the coming 12 months will see an overall weakening of the bottom-line as claims frequency and costs – particularly that of the auto product – begin to escalate after two years of a declining trend. Lost consumer confidence, and the negative political and media attention generated in the wake of the dramatic coverage price adjustments implemented by companies over the past two years, will likely remain a challenge in 2005, particularly in light of the controversy sparked by the Spitzer investigation into broker remuneration arrangements, predict insurer CEOs in CU’s latest “primary insurer strategies” annual market review.
BI Exposure on R&D
December 1, 2004 Richard DavidsonRisk managers employed by corporations which may have some involvement in research and development (R&D) activities could unknowingly face a significantly uninsured exposure on their business interruption (BI) coverages. Typically, R&D is regarded as an area of the business that…
Moments in Time (December 01, 2004)
December 1, 2004 by Canadian UnderwriterEach month of this special 70th anniversary year, Canadian Underwriter will look back at a pivotal period in the industry’s history. These are the people, events and issues that have shaped Canadian Underwriter and the insurance industry for seven decades.
Canadian Insurers Reap 3-Q Underwriting Boon
December 1, 2004 by Canadian UnderwriterCanadian federally regulated insurers produced a return on equity (ROE) of 13% for the third quarter of this year, primarily on the back of a healthy underwriting gain. The industry’s taxed profit for the latest reporting period clocked in at…
Optimum General Records Sixth Successive Quarter of Profit
December 1, 2004 by Canadian UnderwriterMontreal-based Optimum General Inc. (TSX: OGI.SV.A) is reporting its sixth consecutive quarter of profit for the third quarter ending September 30, 2004. The insurer produced net income of $742,000 ($0.06 per share) for the quarter, up from income of $411,000…
Reinsurance Strategies 2005: Stability?
November 1, 2004 Sean van Zyl, EditorFaced with the alluring prospect of a second year of acceptable profitability, the tension within the offices of Canadian licensed reinsurers is easing – but not underwriting discipline, at least according to the senior management responses in CU’s annual “reinsurance strategic outlook” for 2005. While rates and terms for next year’s reinsurance treaty renewals will likely remain stable, at least for most classes of business, reinsurer CEOs remain wary of the mistakes of the past, and point to the volatility of global catastrophe losses over the past year as well as uncertainty regarding the long-term effectiveness of the provincial auto insurance reforms.
Captives Go Mainstream
November 1, 2004 Vikki SpencerThe once exotic world of captives is opening up for risk managers as they seek out solutions to a challenging insurance market. The traditional offshore domiciles are experiencing growth in captive numbers and premiums written, while new domiciles are being created through captive legislation, specifically in the U.S. But, experts say captives are more than just a passing solution to a temporary lack of available, affordable commercial insurance – they are a long-term investment requiring focus and commitment.
Contingent Commissions: Letting the Truth Get in the Way
November 1, 2004 W. Epaminondas Adrastus Blab IILet’s get one thing straight right off the top: If what he alleges is true, Eliot Ness – I mean Spitzer – is right on the money with some of the accusations he has made against a few of the…
Fear Factor
November 1, 2004 Sean van Zyl, EditorWith personal auto insurance rates across the country having peaked almost a year ago, and insurers’ financial results now beginning to show consistent strength, the dark cloud of despair that had hung over the Canadian property and casualty insurance industry over recent years seem to be dissipating. However, the political environment surrounding the auto market remains volatile, a panel of insurer CEOs speaking at this years’ Insurance Brokers Association of Ontario (IBAO) convention say. And, the “cost of the past” in terms of inadequate reserving, as well as brittle relations between companies, brokers and the insuring public as a result of the steep pricing and lack of coverage availability of the latest hard market, are hurdles that have yet to be overcome, they say.
Overcoming the Residential Valuation Challenge
November 1, 2004 Klaas WesteraRecent studies have brought the Canadian property insurance industry to one of its biggest challenges in modern history – the knowledge that the majority of its residential property policies are underinsured by significant amounts. And although the need for immediate action is obvious, concerns within the industry about how to go about it are understandably present. The urgency of addressing this industry-wide issue demands that we all move forward and that we do so quickly.
Moments In Time (November 01, 2004)
November 1, 2004 by Canadian UnderwriterEach month of this special 70th anniversary year, Canadian Underwriter will look back at a pivotal period in the industry’s history. These are the people, events and issues that have shaped Canadian Underwriter and the insurance industry for seven decades.
Damn Those Cats…!
November 1, 2004 Sean van Zyl, Managing EditorJust when the financial weather for both the Canadian and U.S. property and casualty insurance industries was beginning to look downright “balmy” this year, along came the hurricane season – and like the “Four Riders of the Apocalypse” under Charley,…