Keyword
Ratings/Research
Reinsurance Outlook: 2003 CAT Rates
August 1, 2003 Catherine Fagan, assistant vice president atSwiss Reinsurance Co. CanadaAlthough pricing of catastrophe covers began rising in the wake of the 9/11 terrorist attack, it is important to note that these rate increases only brought premium levels to a point last seen almost a decade ago. Should the Canadian insurance industry see a normal “cat burden” for 2003, then the combination of primary and reinsurance rate increases should be enough to allow reinsurers to see improved combined ratios at yearend. But, whether the market’s result will be good enough remains to be seen. Swiss Re’s annual cat study highlights the major factors likely to come into play in evaluating and pricing exposures.
Building Boom, Insurance Bust
August 1, 2003 Craig HarrisInsurance costs are hammering Canada’s rapidly growing construction industry as rates go through the roof and capacity caves in. Builders are harder hit than many other commercial policyholders because underwriters are skittish about large-loss exposures. Many in the construction industry want rate relief and the return of stable markets.
N.B. Government and Auto Insurers in Face-Off
August 1, 2003 by Canadian UnderwriterIn its first “throne speech” since the recent provincial election, New Brunswick’s Conservative government announced a legislative amendment to its Insurance Act which will require all registered insurers to file for new auto rates by August 15 of this year…
New Brunswick presents insurers with stiff ultimatum
July 31, 2003 by Canadian UnderwriterIn its first “throne speech” since the recent provincial election, New Brunswick’s Conservative Party (CP) government announced a legislative amendment to its Insurance Act which will require all registered insurers to file for new auto rates by August 15 of…
Commercial premiums flattening, say U.S. brokers
July 22, 2003 by Canadian UnderwriterThe latest survey of U.S. commercial agents and brokers show property and casualty rates are flattening, says the Council of Insurance Agents and Brokers (CIAB), releasing its second quarter 2003 Commercial Market Index Survey.The market is leveling and starting to…
Co-operators drops liability rates on auto in New Brunswick
June 25, 2003 by Canadian UnderwriterCo-operators General Insurance Co. has filed for a 25% reduction in rate on the liability portion of its auto business in New Brunswick. The insurer says the rate reduction, which was filed for with the province’s Public Utility Board yesterday,…
2003 Canadian Insurance Congress: Finding Direction
June 1, 2003 Sean van Zyl, EditorThe ongoing bleeding in the auto markets across nearly all provinces of Canada, coupled with the devastating impact of the investment environment on insurers’ income statement and balance-sheets, served as core issues of discussion at this year’s Canadian Insurance Congress. With the auto loss damage having spread from companies income returns to cause capital deterioration – which recently saw a senior management shakeout at a leading personal lines carrier – speakers and attendees at the congress meeting speculated to whether this may just be the start of a long line of casualties and ultimate consolidation of the Canadian property and casualty insurance industry as insurers try to find direction.
Technologies Behind Underwriting
June 1, 2003 Scott FitzgeraldGeneral insurance underwriters analyze a variety of important factors in determining the risk of an applicant. Determining underwriting risk is a tricky science that involves a number of factors before the appropriate coverages are allowed and rates defined. Apart from determining the level of insurance permitted and priced, underwriters must also decide if the risk should be taken at all. Electronic data transmission and storage has cultivated new databases that should be used as criteria in assessing underwriting risks.
Auto Insurance, The Industry’s Orphan Annie
May 1, 2003 Sean van Zyl, EditorWith auto insurance accounting for nearly half of all premiums written in Canada, this once “darling” of the industry has now become the “wayward child” disowned by insurers as underwriting losses stemming primarily from soft-tissue bodily injury claims and tort costs continue to spiral out of control countrywide. Notably, insurers were forced to adjust their reserves by nearly two-thirds of a billion dollars last year as a result of an adverse development on auto business. Although several of the provinces are currently addressing legislative product reform initiatives in a bid to curtail auto losses and the barrage of premium hikes implemented by the insurance industry last year, insurers remain cautious in their market dealings, with many companies having “capped” writing of new business. The result has been a dearth of underwriting capacity, with Ontario and the Atlantic Canada region being particularly hard hit. As insurers continue to “shun auto” in wait of political reform, many in the industry wonder whether the product will ever regain attraction.
Illusion or Reality? CSIO Portal Launch Looms
February 1, 2003 Sean van Zyl, EditorOnce again, the Centre for the Study of Insurance Operation’s (CSIO) intranet-based insurance portal is set for imminent release. As insurers and brokers hold their breath in the countdown to the project’s first-phase April launch date, the industry remains charged with mixed feelings of “general optimism” as well as “uncertainty” based on the many unknown factors that could result in success or failure of the portal over the longer-term. The CSIO points out, however, that one of the biggest hurdles having thwarted past attempts at achieving an industry-wide online, real-time electronic processing solution has been overcome – by the time of the launch date the portal will be carrying a “critical mass” of insurance companies with strong commitment by brokers to sign on. Has the CSIO finally pulled the industry online technology rabbit from the hat?
Uncertain future for U.S. commercial lines: Fitch
January 17, 2003 by Canadian UnderwriterRating and research firm Fitch Ratings says that in the U.S. at least, commercial lines is looking at a much more uncertain future than personal lines. Reinsurance prospects are also challenged, Fitch reports in “Review & Outlook: 2002/2003” for the…
Traditional reinsurance sector still lives
December 1, 2002 by Canadian UnderwriterDespite major financial upsets over the past two years, culminating in the devastating loss arising from the World Trade Center (WTC) terrorist attacks, the global reinsurance sector is emerging “alive and well”, says Ross McKenzie, CEO of Aon Re International.…