News
Does size matter when determining survival of insurers during financial crisis?
October 24, 2008 by Canadian UnderwriterWhen it comes to using a reliable indicator to figure out which Canadian P&C insurance company is best-positioned to survive the worst financial crisis to hit the North American markets since the Great Depression era, does size matter?The answer, as…
IBAO asks insurers to sign memorandum of understanding on brokerage control
October 24, 2008 by Canadian UnderwriterThe Insurance Brokers Association of Ontario (IBAO) has asked the province’s insurance companies to sign a memorandum of understanding, promising, in effect, that the insurers will not purchase a majority control in brokerages.In Spring 2008, IBAO leadership suggested it would…
Insurance industry needs to harness societal ‘renaissance’ to succeed in marketing
October 23, 2008 by Canadian UnderwriterThe insurance industry has been taking its old marketing techniques and just dumping it into a new channel the Internet and the approach will not work, Mitch Joel, president of Twist Image, told delegates at the Insurance Brokers Association of…
OSFI calls for prudence related to normal course issuer bids
October 23, 2008 by Canadian UnderwriterCanadian financial institutions that have normal course issuer bids in place should consult with Canada’s solvency regulator, the Office of the Superintendent of Financial Institutions (OSFI), before repurchasing shares pursuant to those bids, the regulator notes in an advisory. OSFI…
Ontario’s independent brokers stop bleeding off of consumers to direct channel
October 23, 2008 by Canadian UnderwriterOntario’s independent broker channel appears to have turned a corner in 2007, with consumers showing signs of remaining loyal to the channel despite the aggressive marketing of direct writers, according to Rodney Hancock, the president of the Insurance Brokers Association…
Insurance supervisors call for enhanced coordination during tough financial times
October 23, 2008 by Canadian UnderwriterInsurance supervisors worldwide have committed themselves to enhancing coordination efforts in an move to contain any contagious effects of global market volatility, the International Association of Insurance Supervisors (IAIS) has announced.The IAIS concluded its annual conference and general meeting in…
Antilock brakes on motorcycles reduces frequency of claims and deaths
October 22, 2008 by Canadian UnderwriterThe use of antilock brakes on motorcycles reduces the frequency of crashes for which insurance claims are filed and the rate of fatal motorcycle crashes, according to research by the Insurance Institute for Highway Safety (IIHS).The Highway Loss Data Institute…
External actuarial and auditor markets becoming increasingly monopolistic
October 22, 2008 by Canadian UnderwriterInsurers in Canada and the U.S. are increasingly turning to external actuarial firms, A.M. Best’s annual review of the auditor and actuarial markets found.The study encompasses 2007 statutory filings submitted to A.M. Best for nearly 4,000 Canadian and U.S. insurance…
What’s New: In Brief (October 22, 2008)
October 22, 2008 by Canadian UnderwriterKeal Technology’s commercial management system (CMS), comXP, will be integrated with Aviva Canada’s Fastrax, a web-based commercial insurance application. The partnership will enable brokers to upload small commercial package information including client, risk and coverage details from comXP to Fastrax,…
ING Canada’s ratings affirmed, ING Groep’s downgraded: Moody’s
October 22, 2008 by Canadian Underwriter**CORRECTION**ING Canada’s subsidiaries were not downgraded as initially reported. Canadian Underwriter regrets and apologizes for this error. Moody’s Investors Service has affirmed ING Canada Inc.’s ratings and those of its operating subsidiaries, following the downgrade of ING Groep to Aa3…
Lloyd’s reports US$2.34 billion in estimated net claims for Gustav and Ike
October 21, 2008 by Canadian UnderwriterLloyd’s is expected to face net claims of US$2.34 billion for Hurricanes Gustav and Ike, representing both onshore and offshore claims, according to a provisional estimate. This is in line with analysts’ estimates of an aggregate US$20-25 billion industry loss,…
Too soon to predict a hard market in non-life sectors; Fitch says
October 21, 2008 by Canadian UnderwriterIn response to the global financial crisis, Fitch has revised its rating outlook from ‘stable’ to ‘negative’ for 12 (re)insurance sectors globally.In addition, it has confirmed its previous negative outlook on six insurance sectors.“The negative outlooks reflect the significant falls…