Topic
Mergers and Aqcuisitions
Atlantic Canada: A Political Roller-Coaster
October 1, 2003 Mike Brien, president of Macdonald Chisholm InsuranceWhile the sharp rate increases introduced by insurers across nearly all lines of business in Atlantic Canada – with personal auto insurance having attracted the brunt of price hikes – are beginning to show positive signs of returned underwriting profitability for the region, the “public relations” cost incurred in the process may well prove that too much was done by the industry over too short a time. The political attention ignited by auto insurance pricing has presented a very real threat of government-run insurance systems being introduced in the region – the impact of which could be dire for insurers and brokers alike.
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.
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.
Managing Vehicle Theft
October 1, 2003 Serge Laporte, Boomerang Tracking Inc.Automobile theft costs Canadians close to $1 billion every year. To combat this alarming trend, vehicle owners should adopt a more proactive technological approach to risk management – and the insurer must provide the incentive to do so. Automobile insurance…
A “Mom & Pop” Perspective
October 1, 2003 Sean van Zyl, EditorTaking over the presidency of the largest provincial independent brokerage association in the country shortly after what could be called a historic “landslide election” resulting in a new government for Ontario could be a daunting challenge for most people. That, however, is just the beginning of what may appear to the casual observer to be “overwhelming odds” as independent brokers continue to deal with the harsh realities of a “hard market” where insurance availability and pricing have become contentious political issues across Canada. For Doug Grahlman, who will take the helm of the Insurance Brokers Association of Ontario (IBAO) at the association’s annual convention to be held this month, the top priority on his agenda for the year ahead is “communication” – at both the government and consumer levels.
Atlantic Task Force Rejects Concept of Public Auto
October 1, 2003 by Canadian UnderwriterA task force established by the premiers of Atlantic Canada has rejected implementing public auto insurance in the region. The “Atlantic Insurance Harmonization Task Force” found “no significant reason to transform the private enterprise delivery system to a government monopoly…
Kingsway reveals $30 million adverse reserve development
September 29, 2003 by Canadian UnderwriterKingsway Financial Services Inc. (TSX: KFS) has disclosed an adverse reserve development totaling $30 million for prior year claims leading up to the end of 2002. The adverse reserve development resulted from the insurer’s Alberta non-standard auto insurance business, as…
Kinesiologists unhappy with Bill-198 regulations
September 26, 2003 by Canadian UnderwriterThe Ontario Kinesiology Association (OKA) is speaking out against regulations in support of Ontario’s Bill-198 which they say will preclude their members from working on auto accident claims.The regulations, which come into force on October 2, are worded such that…
Nova Scotia report advocates lower auto rates and public education
September 24, 2003 by Canadian UnderwriterWhile pushing for limits on auto insurance rates in Nova Scotia, a new report also suggest the public needs to become more educated about how to shop for insurance.The provincial government’s “consumer advocate”, George Jordan, released his final report following…
Manitoba to offer loans for anti-theft device purchase
September 23, 2003 by Canadian UnderwriterManitoba Public Insurance (MPI), the provincial government auto insurance program, says it will offer loans to drivers to purchase anti-theft devices.The loans will apply to aftermarket vehicle immobilizers meeting the Canadian standard for theft deterrence, which generally cost $240-$400. Drivers…
Personal lines rates up in U.S.
September 11, 2003 by Canadian UnderwriterBoth homeowners’ and auto insurance premiums are on the rise in the U.S., says the Insurance Information Institute (III). The III says that rising construction costs and natural disaster losses are pushing homeowners’ rates up, with an 8% increase expected…
IBC, Consumers’ Association at odds over auto insurance rates
September 11, 2003 by Canadian UnderwriterThe Insurance Bureau of Canada (IBC) and the Consumers’ Association of Canada (CAC) are engaging in a war of words over the cost of auto insurance, following the release of a study by the CAC suggesting rates in Ontario are…