Segment
P&C Companies
Facing Disaster
June 1, 2003 Stephen McWilliamWhen you read the headlines these days, there is a sense of susceptibility and unease amongst top executives when it comes to the security of their critical information systems – most often the lifeblood of their organization. Whether it is…
Fairfax Group Enjoys Mixed Fortunes For 1-Q
June 1, 2003 by Canadian UnderwriterThe future outlook for Fairfax Financial Holdings Ltd. (TSX: FFH) increased substantially with the almost 14 times increase in the company’s net earnings for the first quarter of this year to $154.6 million (equal to $10.60 a share) compared with…
Insurer Technology Solutions: To the Rescue?
June 1, 2003 Vikki SpencerThere are a lot of things wrong with insurer income statements and balance-sheets these days – lackluster investment returns, rising claims costs, persistently bad underwriting results – all of which have put tremendous pressure on company “cost centers” to prove their worth. Information technology (IT) departments are no exception, with increased expectations for a return on investment. In an environment where vendors have come and gone, and many solutions have not lived up to the hype, insurers might be tempted to scale back IT investments. But, with a turn in insurer fortunes expected to come in the next year to 18 months, insurance companies can ill afford to be caught lagging, say experts. IT, they say, could well be a pivotal part of that return to profitability.
HartRe Canada Business Picked Up by Endurance
June 1, 2003 by Canadian UnderwriterThe Hartford Financial Services Group Inc. has sold the renewal rights to much of its US$700 million global property and casualty reinsurance business under HartRe to Bermuda-based Endurance Specialty Holdings Ltd. A statement released by Endurance says the deal will…
Profile: Keeping the Pot Tasty
June 1, 2003 Sean van Zyl, EditorWhile not many insurers writing auto in Ontario would agree that Bill-59 – the Automobile Insurance Rate Stability Act – was the answer to their prayers in bringing about effective reform to a longstanding problematic product, not all would share their perspective. Rob Sampson, a member of provincial parliament (MPP) and the driving force behind the latest auto insurance product reform initiatives packaged under Bill-198, believes that legislative measures introduced in 1996 under Bill-59 achieved its purpose in stabilizing pricing and enticing insurers back into the marketplace. The current legislation, which will soon be publicized as regulations, is an extension of what Bill-59 set out to do, Sampson says. In this respect, the current market environment is not unlike that of 1996 when insurers’ appetite for taking on business had waned, he observes, which the latest reforms are aimed at bringing insurance companies back to the table.
Ontario Auto Losses Remain Under Spotlight
June 1, 2003 by Canadian UnderwriterAs insurers await Bill-198 regulations, substantial problems remain within Ontario’s auto insurance system, says Mark Yakabuski the Ontario regional vice president of the Insurance Bureau of Canada (IBC). He recently spoke at the annual meeting of the Canadian Insurance Accountants…
Insight: The Cost of SARS
June 1, 2003 Craig HarrisThe spread of highly contagious atypical pneumonia to Canada, particularly Toronto, caused huge economic repercussions in the travel, tourism and hospitality industries. What is the impact on the insurance sector?
Valueing Subrogating
June 1, 2003 Michael BaumelMany insurance carriers have asked themselves the following question: Is our subrogation department the best profit center it can be? The response has been a resounding “no!” for most carriers.
On The Move (June 01, 2003)
June 1, 2003 by Canadian UnderwriterThe Ontario School Boards’ Insurance Exchange has named Jim Sami as general manager and Attorney-in-Fact. He has over 20 years insurance experience, and began at the Safeco Claims School. Hub International shareholders have added a new independent director to the…
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.
Outsourcing IT: Turning Software Into Service
June 1, 2003 Yves LeClercIn today’s fiercely competitive economic and information technology (IT) environment, insurance companies are starting to look at software deployment very differently from before. Insurers are increasingly turning to outsourced IT solutions for improved performance, productivity and profit.
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.