Features
Volatile Markets and the Reinsurance Intermediary
November 1, 2003 Donald Callahan, president of Guy Carpenter & Co. Ltd.Is Your Reinsurance Transaction Secure?
A New Approach?
November 1, 2003 Lawrie Savage of Lawrie Savage & Associates Inc.At the recent Insurance Bureau of Canada (IBC) “Regulatory Affairs Symposium”, which was held in Toronto, the speakers were asked to provide their perspective on recommendations put forward by former regulators and industry members on a new system of market conduct regulation in Canada. A move in this direction would significantly reduce the current “red tape” overload on insurers.
Nova Scotia Auto Reforms Spark Insurer Withdrawals
November 1, 2003 by Canadian UnderwriterIn the wake of passage of Nova Scotia’s Bill-1 – which reforms the province’s auto insurance legislation – insurers are announcing they will cease writing new business in the province. Royal & SunAlliance Insurance Co. of Canada and the Dominion…
After-Market Auto Parts Take Heat
November 1, 2003 by Canadian UnderwriterAuto repair shop attendees at the recently held Canadian Collision Industry Congress (CCIC) took aim at a panel of representatives from insurance companies in questioning the use of after-market parts in insured vehicle repairs. The attendees questioned the quality of…
Views (November 01, 2003)
November 1, 2003 by Canadian UnderwriterThe Canadian Insurance Adjusters’ Association celebrated its 50th anniversary at its annual convention in St. John’s, Newfoundland recently. Along with East Coast traditions, including the “screech in” ceremony, the event included a seminar on privacy legislation and a trade show.…
Reserve Boosting Undermines Kingsway’s 3-Q Earnings
November 1, 2003 by Canadian UnderwriterSpecialty risk insurer Kingsway Financial Services Inc. (TSX: KFS) saw net income for the third quarter of this year drop by 28% to $15.6 million compared with the $21.7 million reported for the same period in 2002. This equates to…
Organized Crime Bites Auto Insurers
November 1, 2003 by Canadian UnderwriterThe alarming rise in insured cost of auto theft and fraud over recent years has much to do with the involvement and growth of organized crime in Canada, according to two Insurance Bureau of Canada (IBC) claim investigators who spoke…
Uneasy Optimism…
October 1, 2003 Sean van Zyl, EditorThe financial results of Canadian and U.S. insurers for the first half of this year suggest that the two marketplaces are converging in a positive direction after several years of runaway claims costs. For both U.S. and Canadian companies, the…
Independent Brokers: Tightening the Belt?
October 1, 2003 Sean van Zyl, EditorWhile the total value of the Canadian property and casualty insurance marketplace jumped by almost a third last year, the increased revenue benefits did not filter down to higher net earnings for the independent brokerage community, brokers say. In fact, independent brokers point out that they are not making money on personal lines business at all due to the rise in their operating costs brought on by the “hard market”. And, although market conditions are shaping up for improvement next year, brokers fear that a slow return of underwriting capacity combined with the overhead cost incurred from the past two years of lean running could spark a new wave of consolidation within their ranks. At the very least, the independent brokerage community will be facing a year of “belt tightening”, they say.
Broker Management: Defining “Good” Sales
October 1, 2003 Rick Bauman, president of Bauman Consulting Inc.Is “less” more for today’s account executives? The idea that every account is a profitable account is misguided – it is time to set your sights higher, or rather sharper.
Capital Allocation in Canada: The Three Strikes
October 1, 2003 Vikki SpencerWith all the headaches experienced in the Canadian property and casualty insurance industry right now, not the least of which are struggling results from a volatile auto insurance product, it begs the question: “Why would any insurer want to do business here?” The Canadian industry brings many challenges – stressed financial results, strict capital requirements and a higher tax burden – sources say. These “three strikes” could add up to an “out” for global parents choosing whether or not to put precious capital into this market, they warn.
Mid-Sized Commercial Brokers: Holding the Line
October 1, 2003 Craig HarrisBrokers serving the bigger Canadian commercial risk pool outside of the mega international corporations say that rising insurance industry profitability has not softened the tough approach of insurers to pricing, terms and availability of coverage. But, with many commercial clients across the corporate earnings spectrum suffering through their third consecutive year of premium increases, there is acknowledgement by insurers of growing “market rate fatigue”, brokers add, which is bringing about a slow softening to the pricing of property risks with even a few new underwriters looking to venture into the broader commercial marketplace.