After three years of hard market conditions, many players in the Canadian property and casualty insurance industry have put their existential woes behind them. Most balance sheets have been mended, risk-adjusted capital ratios have improved and rating agencies have backed off.
Insurance fraud and related crimes have too often been perceived as “victimless”, but those on the front-line of crime prevention say nothing could be further from the truth. Speakers at the Annual Toronto Fraud Forum say the victims of insurance crimes are widespread and the consequences go well beyond mounting claims costs.
With the announcement in mid-October of a civil suit against Marsh & McLennan over broker commission practices by New York Attorney General Eliot Spitzer, the floodgates of civil litigation, broker reform and even spin-off investigations here in Canada were opened.…
In the wake of the worst Atlantic hurricane season in recent memory, U.S. insurers have posted record third-quarter catastrophe losses of US$21.3 billion, according to data compiled by the Property Claim Services unit of the Insurance Services Office (ISO). 2001…
The Risk & Insurance Management Society (RIMS) has named Mary Roth as executive director to replace Jack Hampton, who departed earlier this year. Roth has been with RIMS since 1985, most recently as chief operating officer. She is a graduate…
With insurers’ profitability believed to now be at a sustainable level to deliver adequate shareholder returns, a sense of stability has crept into the Canadian property and casualty insurance marketplace. Coverage availability has increased tremendously across the provinces over the course of this year, with new product innovations within the regulated auto line set to kick into effect in early 2005 – all of which should alleviate the cost pressures and overall company/broker relationship stress that has marked the past two years of the hard market. But, will consumers simply forget the turmoil of the insurance marketplace and willingly embrace the industry with open arms? Whether justified or not, the public image of the insurance industry has plummeted to an all-time low – an issue which brokers and insurers alike agree has to be addressed urgently.
After two years of extremely difficult market conditions, independent brokers in Ontario are hopeful of a period of stability. However, the immediate future will not be a period of “easy sailing” as brokers tackle the delicate task of rebuilding consumer…
Who gets paid what? In the wake of investigations of sales practices in the mutual fund, investment banking and security industries, several U.S. state regulators and class action specialists now have compensation agreements between insurance companies and brokers in their crosshairs. The key buzzwords are “conflict of interest” and “disclosure” when it comes to contingent commissions and other “market service” arrangements. Is this an issue destined to move north across the border?
With the recent legislative amendment by the Saskatchewan government to allow credit unions to acquire insurance brokerages, it is clear that non-insurance financial institutions remain keenly interested in gaining a foothold within the distribution side of the property and casualty insurance business. And, with the federal banking legislation set for revision by 2006, independent brokers have to remain vigilant of possible changes and lobbying attempts on the legislative front which could compromise their businesses as well as the best interests of the insurance buying public.
What can brokers and underwriters do to reduce pension plan fiduciary liability risk? Policy wordings and applications play a significant role in this regard, but unfortunately, most company wordings differ widely. It is important to be aware of these differences.
The nation’s top broker representatives met in Regina recently for the Insurance Brokers Association of Canada (IBAC) AGM, to set a course for the future for the independent broker profession. Coming off of almost three years of market turmoil, IBAC’s goals moving forward include repairing the industry’s public image, furthering its political objectives and helping brokers make the leap into “cyberspace” via the insurer-broker Internet portal.
A year after “The Atlantic Canada Insurance Harmonization Task Force” released its report, it remains unclear to whether it was actually read, never mind understood, by some of the provincial premiers. Today, notwithstanding the clarity of the report, the environment in some of the Atlantic provinces remains overly-politicized and hostile, with draconian and ill-conceived government edicts that were likely figured out over a take-out pizza. As Premier Williams would say: “It’s a farce.”