Segment
P&C Companies
Hub acquires west-coast U.S. brokerage
October 7, 2003 by Canadian UnderwriterHub International Ltd. (TSX: HBG) has acquired Davis Bodie Insurance Services Inc. based in Thousand Oaks, CA for an undisclosed cash amount. The brokerage, which generates about US$600,000 in annual revenue, will form part of the broker network consolidator’s Hub…
Hub makes two U.S. acquisitions
October 3, 2003 by Canadian UnderwriterBroker consolidator Hub International has added two US brokerages to its stable. Boston-based Commonwealth Insurance Agency Inc. will become part of New England “hub” C.J. McCarthy, bringing about US$300,000 in annual revenue. The brokerage specializes in homeowners coverage in Massachusetts,…
Without power, telephones, damage from Hurricane Juan hard to assess
October 1, 2003 by Canadian UnderwriterAs most of Halifax continued on Tuesday to be without power and telephones, it is difficult to assess just how much insurers may be paying out in the aftermath of Hurricane Juan.Juan hit the Halifax-Dartmouth area late Sunday, killing at…
Capital Allocation in Canada: The Three Strikes
October 1, 2003 Vikki SpencerWith all the headaches experienced in the Canadian property and casualty insurance industry right now, not the least of which are struggling results from a volatile auto insurance product, it begs the question: “Why would any insurer want to do business here?” The Canadian industry brings many challenges – stressed financial results, strict capital requirements and a higher tax burden – sources say. These “three strikes” could add up to an “out” for global parents choosing whether or not to put precious capital into this market, they warn.
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.
Hurricanes Devastate Canadian and U.S. East Coast
October 1, 2003 by Canadian UnderwriterThe east coasts of Canada and the U.S. both felt the lash of Mother Nature with hurricanes in the form of Isabel and Juan causing widespread damage over a short period of time. In Canada, Hurricane Juan slammed into Nova…
Uneasy Optimism…
October 1, 2003 Sean van Zyl, EditorThe financial results of Canadian and U.S. insurers for the first half of this year suggest that the two marketplaces are converging in a positive direction after several years of runaway claims costs. For both U.S. and Canadian companies, the…
Liability Insurance: “Tied Selling” or Good Practice?
October 1, 2003 Craig HarrisThe insistence on errors and omissions (E&O) insurance for virtually any kind of professional exposure has created some waves in this specialty market, particularly for engineers. Poor results, increasing claims and emerging exposures are prompting insurers to aggressively seek rate adjustments, carefully monitor loss trends, and re-evaluate specific coverages for many lines of E&O. In some cases, such as in Alberta, the regulator is beginning to question whether the approach of insurers falls within accepted business boundaries or whether their actions fall under “tied selling”.
Liability Exposure South of the 49th Parallel
October 1, 2003 Mark Ram, president of Markel Insurance Co. of CanadaIt is the largest product liability verdict so far this year – and one unheard of within Canada’s kinder legal system. A Florida jury this past August ordered a Wisconsin pool-pump manufacturer to pay US$104 million in compensatory damages to the family of a boy who sustained permanent brain damage after his arm became stuck in a pool drain three years ago. And the whopping $104 million is just the beginning. Further punitive damage awards are reported pending, as the pool pump company was allegedly aware of a manufacturing defect for years, yet did nothing.
IBAC 2003 AGM: Rocky Times
October 1, 2003 Vikki SpencerIn the current environment – where provincial auto insurance systems are being changed on a near-daily basis in response to political whim and consumer ire, commercial and personal lines coverage remains scarce while rates continue to climb – brokers could…
Independent Adjusters: Finding Common Technology Ground
October 1, 2003 Fred Plant, a partner at Plant Hope Adjusters Ltd.The independent adjusting profession is experiencing a period of transition, driven by market demands and legislative considerations. Notably, insurers are under increasing pressure to reduce claims and expense costs, which has added to the challenges before adjusters. And, while new claims handling technology offers cost reduction to both parties through better service and information, true efficiency will only come through cooperation.
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.