Features
Ontario Auto, Setting the Course
May 1, 2004 Vikki SpencerWhat is wrong with Ontario’s auto insurance system? The answer to that question has been haunting the insurance industry for many years, but more recently has stolen the public spotlight. During the most recent provincial election, auto insurance was front and center, and with the election of a Liberal majority government, Mike Colle found himself in the eye of the auto insurance storm. Now, the parliamentary assistant to the Minister of Finance says industry and government are working together to rebuild the system for the benefit of policyholders.
Piecing Together Parts
May 1, 2004 Craig HarrisThin profit margins have prompted insurers to closely examine claims cost reduction strategies. While bodily injury and healthcare have received the lion’s share of attention in auto insurance, the vehicle damage side of the equation is experiencing challenges of its own. Insurers are trying to find ways to reduce cycle turnaround time, improve supply chain management and save money through aftermarket and recycled parts. The issue for insurers is how to trim costs while ensuring parts quality and vehicle safety.
Plummeting Loss Ratio Lifts U.S. Insurers’ 2003 Earnings
May 1, 2004 by Canadian UnderwriterU.S. property and casualty insurers brought home a 9.4% ROE for the 2003 financial year on the back of a net profit of US$29.9 billion – reflecting nearly a 10 times increase on the US$3 billion in net income reported…
The Disarray of Auto Insurance
May 1, 2004 Bill StarThe insurance industry in Canada and regulators have never faced an auto market with so much confusion as we have in Canada at present. Unfortunately, there is no end in sight since regulators in many provinces have no idea of a solution and are not interested in the advice of the industry. All they want is lower rates but have no interest in properly controlling the claims costs or designing a product that will work efficiently.
Ontario Auto – Looking for Rate Savings
May 1, 2004 Paul SalvasOntario’s new provincial government has made it clear that pressure will be maintained to reduce auto insurance rates. The government’s immediate goal is a 10% across-the-board rate reduction, while insurers remain adamant that the auto line’s combined ratio is still exceedingly high as claims costs continue to grow in the double-digit range. So, how will insurers find room to reduce premiums by 10%? An obvious starting point would be to eliminate interest charges on monthly premium payments – a practice that will likely be acted on by the government in its ongoing reforms should insurers not take action first.
Auto Outlook: Dodging Bullets
May 1, 2004 Rowan SaundersThere is clearly great misunderstanding in the general public with regards to insurance overall, but specifically auto insurance. A recent furniture store advertisement depicting a couple gleefully defrauding an insurance company illustrates the opinion floating among some consumers. There is…
How Bad Can a 5% Rate Reduction Really Be?
May 1, 2004 Brian GrayHow bad can a 5% rate reduction really be? The first issue is leverage. Imagine a mythical commercial lines insurer operating with a 10% margin. For every $100 in premium, the combination of underwriting and investment income, net of operating…
Outlook for Economic Recovery Looks Promising
May 1, 2004 by Canadian UnderwriterWhile the so-called stock market rebound this year has “totally lacked conviction”, investors should still look forward to a rosier 2004, economist Dr. Lloyd Atkinson told a recent meeting of the Canadian Insurance Accountants Association (CIAA). Atkinson says that, despite…
Commercial Rates Dropping: RIMS Survey
May 1, 2004 by Canadian UnderwriterCommercial insurance buyers report falling rates in property and general liability lines, signaling signs of a softening market, according to the first-quarter 2004 edition of the “Risk and Insurance Management Society (RIMS)/Advisen Benchmark Survey”. Property rates fell by 1.5%, RIMS…
CSIO AGM Stresses Single-Entry Tech Solution
May 1, 2004 by Canadian UnderwriterBob Fitzgerald, chairman of the Centre for Study of Insurance Operations (CSIO), says that the realization of a single-entry, real-time technology solution in information exchange between brokers and insurers is critical to the future success of the property and casualty…
U.S. Cats Cost Insurers Us$963 Million For 1-Q
May 1, 2004 by Canadian UnderwriterU.S. insurers will likely face an insured cost of US$963 million for the first quarter of this year with regard to catastrophe related property claims, according to preliminary data released by the New York-based Insurance Services Office Inc. (ISO). The…
CIAB Survey Shows Reduced Commercial Risk Pricing For 1-Q
May 1, 2004 by Canadian UnderwriterThe latest quarterly market index produced by the U.S.-based Council of Insurance Agents & Brokers (CIAB) suggests that pricing of commercial business either declined or remained flat across the various size segments of the marketplace during the first quarter of…