News
Members of insurer board of directors not necessarily disqualified from Crown boards
January 14, 2009 by Canadian UnderwriterA person can be both a director of a federally regulated insurer and a Crown corporation, as long as that person is not considered Crown agent, the Office of the Superintendent of Financial Institutions (OSFI) has ruled.OSFI was asked to…
Nova Scotia court throws out Charter challenge against cap for minor auto injuries
January 13, 2009 by Canadian UnderwriterIn Hartling v. Nova Scotia, the Supreme Court of Nova Scotia has thrown out a Charter challenge to the province’s Cdn$2,500 cap for minor auto injuries, saying the cap does not discriminate on the basis of either sex or disability.In…
Gore Mutual receives top marks from Ontario brokers
January 13, 2009 by Canadian UnderwriterGore Mutual was the only insurer in the standard market to consistently be ranked above average in an annual survey initiated by the Insurance Brokers Association of Ontario (IBAO).The 2008 Rate Your Company Survey included 1,150 responses from brokerages, 48%…
BMO Financial agrees to purchase AIG Life of Canada
January 13, 2009 by Canadian UnderwriterBMO Financial Group (BMO) has agreed to purchase American International Group Inc. (AIG)’s Canadian life insurance subsidiary.Under the terms of the transaction, BMO will acquire AIG Life of Canada for approximately Cdn$375 million in cash, subject to any change in…
Online auto insurance study shows 2% decline in average lowest rates
January 13, 2009 by Canadian UnderwriterAn online study designed to spot and highlight the pricing trends of car insurance in Ontario identified a 2% decrease in the average lowest rates quoted for auto insurance in Q4 2008 compared to Q4 2007.The somewhat counterintuitive results were…
2009 underwriting results should be “respectable,” Standard & Poor’s finds
January 12, 2009 by Canadian UnderwriterDespite ongoing uncertainty related to the credit and equity markets, the long-term fundamental strength of the U.S. personal lines property/casualty sector remains intact, a Standard & Poor’s article says. “A continued focus on disciplined underwriting and improved risk management should…
Ratings outlook remains stable for global reinsurance industry
January 12, 2009 by Canadian UnderwriterThe ratings outlook for general global reinsurers is stable for 2009, a Guy Carpenter bulletin says. Rating activity was remarkably low in 2008, with outlook changes outnumbering actual rating changes, despite the loss of several billion dollars of capital from…
Risk management’s failure in the credit crunch
January 12, 2009 by Canadian Underwriter“How did the last 20 years of progress in risk management fail so many institutions so spectacularly given the current financial turmoil?” Marsh & McLennan Companies asks in its latest issue of Viewpoints.“While the industry at large was undoubtedly overconfident…
What’s New: In Brief (January 12, 2009)
January 12, 2009 by Canadian UnderwriterA.M. Best Co. has revised the outlook of Peace Hills General Insurance Company to negative from stable and affirmed its financial strength rating of B+ (Good) and issuer credit rating of “bbb-.”“The negative outlook is a result of Peace Hills’…
What’s New: In Brief (January 09, 2009)
January 9, 2009 by Canadian UnderwriterPreliminary assessments place the claims costs of insurable losses related to the recent winter storms in British Columbia at Cdn$39 million. Thus far, 4,300 claims have been received, according to the Insurance Bureau of Canada. As a result of this…
Canadian Joe Restoule inaugurated as RIMS president
January 9, 2009 by Canadian UnderwriterJoe Restoule was inaugurated as the president of the Risk and Insurance Management Society (RIMS) on Jan. 8 at a reception at the Harvard Club in New York City.Restoule discarded his hidden, prepared notes and gave a heartfelt thanks to…
U.K. regulator fines Aon Limited for inadequate anti-bribery controls
January 9, 2009 by Canadian UnderwriterThe Financial Services Authority (FSA) has fined Aon Limited £5.25 million (Cdn$9.47 million) for “failing to take reasonable care to establish and maintain effective systems and controls to counter the risks of bribery and corruption associated with making payments to…