Features
Fairfax 3-Q Earnings Hit by Investment Declines
December 1, 2003 by Canadian UnderwriterThird quarter net taxed earnings of Fairfax Financial Holdings Ltd. (TSX: FFH) dropped into the red this year with a loss of $20 million, which amounts to $1.67 a share. This compares with a net taxed profit of $281.4 million…
Letters to the Editor (December 01, 2003)
December 1, 2003 by Canadian UnderwriterThe recent debate regarding automobile insurance rates in Nova Scotia has overshadowed the significant and positive impact that the industry has had in dealing with the huge volume of Hurricane Juan related claims. We recently wrote to the Nova Scotia…
SCOR’s Ailing U.S. Ops Get Canadian Help
December 1, 2003 by Canadian UnderwriterHenry Klecan Jr., the president of SCOR Canada, has been given management control of the international group’s troubled U.S. operations. Describing the move south as a “secondment”, Klecan says he will remain fully involved with the Canadian operation whilst undertaking…
Reinsurance Strategies 2003: Signs of Recovery
November 1, 2003 Vikki SpencerFor an industry that was on the brink of disaster less than a year ago, reinsurers can take pride in the financial turnaround seen thus far for 2003. But, CEOs offering their insights to CU’s annual yearend treaty outlook are…
Being Ready
November 1, 2003 Sean van Zyl, EditorThe property and casualty insurance industry’s protection mechanism for policyholders against any insurer defaulting on its claim obligations – the Property and Casualty Insurance Compensation Corp. (PACICC) – is set to undergo a major overhaul in response to a changed marketplace. The devastating competitive price impact of the last “soft market”, coupled with spiraling losses and diminishing investment income returns, has created a much more volatile risk environment for the insurance industry, observes Paul Kovacs the newly appointed president of PACICC. And, while the financial picture of insurers has improved vastly in 2003 as a result of two years-plus of “hard market” pricing adjustments, there is still considerable risk for insurer insolvencies over the next three years, Kovacs says.
Captive & Art Growth: Corporate Retentions Rise in Wake of the Hard Market
November 1, 2003 Sean van Zyl, EditorFueled by traditional insurance capacity shortage during 2002, particularly in the liability risk classes and certain specialty risk sectors, the growth in corporate risk retention through establishment of captives and other alternative self-insurance mechanisms is expected to maintain record levels through this year and into 2004 – after coming off a “ten year banner year” for 2001 following the insurance cost impact of the 9/11 terrorist attacks. Canada has not been excluded from this trend, with the number of captives formed during 2002 more than doubling the overall worldwide growth rate of captive formations. Canadian risk solution experts CU spoke to believe that the premium value as well as establishment of self-insurance mechanisms for this year and 2004 will continue to reflect strong growth despite the moderate improvement in traditional insurance capacity and easing of pricing currently emerging in the marketplace.
Canadian Risk Managers: Change in the Air
November 1, 2003 Vikki SpencerThree years ago, risk managers were focused on how to promote their profession. Now, for better or worse, risk management is center stage. But, what will risk managers do with their newfound fame? At this year’s RIMS Canada conference, risk managers “took the bull by the horns” and talked about how to make the most out of the intense pressure they are currently under, to finally advance the cause of enterprise risk management in their organizations.
Untangling Concurrent or “Overlapping Coverage”
November 1, 2003 Paul Famula, Crawford Adjusters CanadaWhen two insurance policies appear to insure the same loss, how do you determine if there should be contribution and how is it to be shared? A review of current law, policies in effect, and specifically the Ontario Insurance Act provides some clarity.
Political Sparks…
November 1, 2003 Sean van Zyl, EditorRate freezes, rollbacks, premium refunds and government-run insurance. It seems that the language of auto insurance has changed so rapidly that insurers have been left dazed and disorientated in an unknown land. But, based on latest events, it would appear…
On The Move (November 01, 2003)
November 1, 2003 by Canadian UnderwriterHalifax-based Huestis Ritch, member of Canadian Litigation Counsel, has named Elissa Hoverd as an associate of the firm. She joined the Ontario Bar in 2001 and the Nova Scotia Bar earlier this year. Toronto-based Kingsway Financial Services has made several…
Public Survey on Auto Cover Reveals Dissatisfaction
November 1, 2003 by Canadian UnderwriterAn independent survey of Canadian drivers across the provinces suggests that 75% of the public believe that the provincial governments should impose limits on rate increases with an equal number of respondents believing that cover price increases should not exceed…
Letters to the Editor (November 01, 2003)
November 1, 2003 by Canadian UnderwriterDear Editor, I have just finished reading/scanning another edition of CU received at our office and left for those of us brokers interested enough to pick it up and read. (I could go on at length about how uninterested and…