What’s New: In Brief (July 15, 2009)

Damage insurance companies in Quebec reported net earnings of Cdn$2.5 billion in 2008, a 51.3% drop compared to 2007, according to the 2008 report on insurance released by the Autorité des marchés financiers (AMF).
Minister of Finance Raymond Bachand tabled the report on Jun. 18 in the Québec National Assembly.
Trends among damage insurance companies in 2008, according to the report included: 
•    written premiums in damage insurance were Cdn$7.4 billion, up 1.5% from 2007;
•    automobile and property insurance premiums were Cdn$3.1 billion and Cdn$3 billion respectively, a combined growth of 2.1% over 2007;
•    premiums for liability and other classes of insurance dropped 1.1% in 2008, to $872 million and $525 million respectively;
•    loss experience declined 82%;
•    investment income was down 34.2% in 2008 compared with 2007; and
•    claims paid to policyholders in Québec were Cdn$4.7 billion, up 18.8% over 2007.

A broker is required to make a reasonable effort to ensure that an individual is advised as to why personal information (such as credit information) is being requested, what it will be used for and with whom it will be shared, according to the Registered Insurance Brokers of Ontario (RIBO).
The brokers’ self-regulating body in Ontario, RIBO is obligated to investigate complaints from members of the public and will continue to do so, according to a notice regarding client consent for collection of personal information posted on the regulator’s site.
“However, where a broker has received an explanation from an insurer detailing why personal information, such as credit information, is being requested and what it is used for and that broker can demonstrate that he or she provided that information to their client and received their consent on that basis, then it is unlikely that any subsequent investigation of a complaint will result in prosecution against the broker for an act of misconduct,” RIBO notes.