What’s New: In Brief (June 18, 2008)

A.M. Best Co. has affirmed the A+ (Superior) financial strength rating of ING Canada Group.
The ratings agency cites ING’s “superior capitalization, above-average profitability and leading market position within the Canadian property/casualty industry,” as reasoning for the rating.
At the same time, A.M. Best said it “is concerned about the recent legal challenge to Alberta’s cap on minor injury claims and the impact this could have on pricing, profitability and the potential for similar challenges in Ontario.”
These concerns are partially mitigated by the company’s experienced management team, internal investment and claims management and a comprehensive reinsurance program, an A.M. Best release says.

Aon Corporation is advocating for global businesses to embrace aligned long-term insurance programmes (ALTP).
An ALTP is essentially a multi-year policy that encompasses multiple lines.
Key benefits of ALTPs include:
absolute cost certainty for the insured and removal of volatility;
certainty of protection in the event of a claim;
the major lines of property, business interruption and general liability risks are covered by a single insurer; and
cost efficiencies and certainty of capacity allocation benefits to insurers from the packaging of a multi-line program over a long period, says an Aon release.
“The soft market has been one catalyst for this ground-breaking policy but companies must demonstrate that the ALTP is a key part of their financial strategy and not just an opportunistic buy,” said Matt Grimwade, head of risk transfer at Aon Global.
Aon recently placed a six-year, fixed insurance program for Network Rail in the United Kingdom.