News
Post-cap, IBC calling for 36.9% auto insurance increase to “ceiling” grid rates
June 18, 2008 by Canadian UnderwriterThe Insurance Bureau of Canada (IBC) is recommending a 36.9% rate increase to be applied only to the province’s grid rates to compensate for the recent elimination of the province’s cap on minor injuries.The IBC presented its proposal to the…
Federal natural catastrophe backstop debated in the U.S.
June 18, 2008 by Canadian UnderwriterBecause of a natural catastrophe’s high cost to society, some are debating whether or not the U.S. federal government should provide a program to backstop losses for natural catastrophes, Standard & Poor’s (S&P’s) says.In the current market, federal government participation…
What’s New: In Brief (June 18, 2008)
June 18, 2008 by Canadian UnderwriterA.M. Best Co. has affirmed the A+ (Superior) financial strength rating of ING Canada Group.The ratings agency cites ING’s “superior capitalization, above-average profitability and leading market position within the Canadian property/casualty industry,” as reasoning for the rating.At the same time,…
CBA report finds Alberta auto product would continue to be profitable without cap
June 17, 2008 by Canadian UnderwriterAlberta’s automobile industry would continue to be “highly profitable” even if the Cdn$4,000 cap on payments for soft tissue injuries were removed, according to research commissioned by the Alberta branch of the Canadian Bar Association (CBA).The study, ‘Alberta’s Minor Injury…
What’s New: In Brief (June 17, 2008)
June 17, 2008 by Canadian UnderwriterCunningham Lindsey Canada Claims Services Ltd. launched a Causation Forensic Specialists (CFS) division.The division will be lead by Bernard (Bernie) Lefebvre, a fire investigator, a Cunningham Lindsey release says.“CFS fills a very specialized niche which falls under a branch of…
Complexity of emerging risks outstripping cat models’ capacity to forecast losses
June 17, 2008 by Canadian UnderwriterTraditional modelling techniques will not work for emerging risks, Oxford University researcher Peter Taylor told delegates at a seminar in London, England, entitled “Catastrophe Modelling from a European Perspective.”The Reinsurance Association of America and the International Underwriting Association (IUA) of…
Brokers raise concern over use of credit scoring
June 17, 2008 by Canadian UnderwriterThe Insurance Brokers Association of Ontario (IBAO) has asked the Financial Services Commission of Ontario (FSCO) to look into whether insurers are using credit scoring and, if so, whether they are using credit scoring for the purpose of determining auto…
Insured value in hurricane-prone areas to double every decade
June 16, 2008 by Canadian UnderwriterThe insured value of properties in hurricane-prone areas of the United States over the past three years has continued to grow at a compound annual growth rate of just over 7%, a report from AIR Worldwide Corporation says.Despite the recent…
Nova Scotia couple that can’t work suffered “minor” injuries, province’s highest court rules
June 16, 2008 by Canadian UnderwriterThe Nova Scotia Supreme Court has ruled that victims in a ‘left-hand turn crash’ who could not return to work because of their injuries did in fact suffer minor injuries, and are therefore subject to the province’s Cdn$2,500 cap on…
EU to move towards regulating credit rating agencies
June 16, 2008 by Canadian UnderwriterCaught up in the developing global credit crisis, the European Union is moving towards the regulation and registration of its credit rating agencies.In a June 16, 2008 speech to the Inaugural Global Financial Services Centre Conference in Dublin, Charlie McCreevy,…
MPI seeks 1% overall reduction in rates
June 16, 2008 by Canadian UnderwriterManitoba Public Insurance (MPI) is seeking a 1% overall reduction in Autopac rates for 2009-10, based in part on declining auto theft rates. In its application filed with the Public Utilities Board, MPI said the rate decrease is possible because…
What’s New: In Brief (June 13, 2008)
June 13, 2008 by Canadian UnderwriterJules B. Kroll, founder of risk consulting company Kroll Inc., will retire from Marsh & McLennan Companies, Inc. in July. “After more than 35 years as a steward of Kroll, I have decided to move on and pursue other personal…