Segment
P&C Companies
Hub 2-Q net earnings flatten on share dilution
August 5, 2003 by Canadian UnderwriterBroker network consolidator Hub International Ltd. (TSX: HBG) increased second quarter revenue by 29% year-on-year to US$74.1 million, while net earnings fell to US$10.1 million for the same period compared with the US$10.7 million reported at the end of June…
Insurers respond to New Brunswick bill
August 1, 2003 by Canadian UnderwriterResponding to the amendment bill announced this week by the New Brunswick government to the province’s Insurance Act – which primarily presents insurers with an August 15 ultimatum to file for lower auto insurance rates or face immediate across-the board…
N.B. Government and Auto Insurers in Face-Off
August 1, 2003 by Canadian UnderwriterIn its first “throne speech” since the recent provincial election, New Brunswick’s Conservative government announced a legislative amendment to its Insurance Act which will require all registered insurers to file for new auto rates by August 15 of this year…
Commercial Liability: One Bad Apple
August 1, 2003 Vikki SpencerWith out of control losses on auto having dominated the attention of insurance companies over the past year, a new menace in the form of commercial liability risks has slipped under insurers’ underwriting radar. Adverse reserve development in the liability line was almost $250 million last year. At a time when insurers are struggling with the auto product and trying to regain profitability in a weakened investment environment, they can ill afford to be shoring up liability reserves. But, as the U.S. style of litigation creeps northward, already seen in the growing acceptance of class action lawsuits and contingency fees in Canada, it is clear commercial liability insurers have more than prior years’ losses to worry about. While the industry has its eye on auto, a “bad apple” may have slipped into the barrel in the form of commercial liability, with the potential to wreak havoc on a weakened industry.
Seizing Opportunity
August 1, 2003 Vikki SpencerA familiar face in unfamiliar times. Brokers face perhaps their most challenging market ever, trying to sell rate increases and find coverage for exposures insurers are leery to touch. Auto insurance has become a political hot potato in almost every province, on the back of consumer outrage at rising rates and lack of availability. The struggle to get the CSIO portal off the ground continues, and the ever-present threat of the big banks loom again. This landscape, however, offers opportunity for brokers, says incoming IBAC president Ken Orr.
Building Boom, Insurance Bust
August 1, 2003 Craig HarrisInsurance costs are hammering Canada’s rapidly growing construction industry as rates go through the roof and capacity caves in. Builders are harder hit than many other commercial policyholders because underwriters are skittish about large-loss exposures. Many in the construction industry want rate relief and the return of stable markets.
B.C. Fires Wreak Multi-Million Dollar Losses
August 1, 2003 by Canadian UnderwriterIn what is reported to be the worst forest fire to hit B.C. in the past 50 years, a widespread blaze has caused the evacuation of several towns and even invaded into neighboring Alberta. Although damage is expected to run…
IIS 2003 Seminar: Political, Social, and Economic Upheaval
August 1, 2003 Sean van Zyl, EditorIn the words of the International Insurance Society’s (IIS) president Patrick Kenny, “there’s a new chapter being written in the history of the insurance industry”. The post-9/11 era has created a volatile risk environment on several levels, from the political, social to economical – all of which have bearing on how insurers perceive and deal with the risks of today and tomorrow. Not surprisingly, the 600 attendees and speakers from around the world that partook in this year’s IIS seminar, which was recently held in New York City, identified “recovery from adverse market conditions” as being the top priority facing the insurance industry in the year ahead.
NAMIC Conference 2003: Seeking Solutions
August 1, 2003 Vikki SpencerThe problems facing the North American property and casualty insurance industry are clear – and many of the solutions are just as obvious. As mutual insurers met in Niagara-on-the-Lake recently for the NAMIC P&C Management Conference, familiar messages were heard: the need for underwriting discipline in the face of investment losses and claims growth, the desire for more available and affordable reinsurance, and the need to lessen the government regulatory burden on companies. Interestingly, Ontario’s mutual insurers may provide some of the answers to these problems.
P&C Super Summit 2003: Sins of the Past
August 1, 2003 Vikki SpencerOn the eve of Ontario’s launch of new regulations to reform the auto insurance system, leaders of the property and casualty insurance industry met to discuss the challenges and possible solutions to the dilemmas facing them. While auto dominated much of the debate, there was a clear understanding that the industry’s woes are manifold. Across all lines of business, from the reinsurance sector to the primary market, companies and indeed their clients are paying the price for too many years of soft pricing and poor industry performance.
Reinsurance Outlook: 2003 CAT Rates
August 1, 2003 Catherine Fagan, assistant vice president atSwiss Reinsurance Co. CanadaAlthough pricing of catastrophe covers began rising in the wake of the 9/11 terrorist attack, it is important to note that these rate increases only brought premium levels to a point last seen almost a decade ago. Should the Canadian insurance industry see a normal “cat burden” for 2003, then the combination of primary and reinsurance rate increases should be enough to allow reinsurers to see improved combined ratios at yearend. But, whether the market’s result will be good enough remains to be seen. Swiss Re’s annual cat study highlights the major factors likely to come into play in evaluating and pricing exposures.
No Crash, No Cash…
August 1, 2003 Sean van Zyl, EditorFollowing recent political events surrounding auto insurance in New Brunswick is a bit like getting hooked on one of the more inane soap-operas on television: each line delivered by a character is a clich, and the only reason to keep…