Insurers battle against rising claims tide
June 12, 2001 by Canadian UnderwriterThe Canadian property and casualty insurance industry achieved a dismal 3.8% return on equity for the last four consecutive quarters through to the end of March 2001, according to the latest preliminary financial figures released by the Insurance Bureau of…
Kingsway enters U.S. alliance and announces public offering
June 11, 2001 by Canadian UnderwriterSpecialty risk insurer Kingsway Financial Services Inc. (TSE: KFS) has entered into an "alliance" with Texas-based auto insurer Reliant American Group Inc. "We see a lot of potential for the distribution of Reliant American’s commercial auto, garage liability and general…
Canadians take legal action against Ford/Firestone (June 11, 2001)
June 11, 2001 by Canadian UnderwriterA Canadian class action lawsuit has been filed against auto manufacturer Ford and tire manufacturer Firestone for use of defective and unsafe products on Ford Explorer models. The action was initiated by Michelle Rambharos of Brampton following a vehicle accident…
B.C. gets new minister for ICBC
June 8, 2001 by Canadian UnderwriterWith the formal swearing in of B.C.’s Liberal government cabinet, a new finance minister takes the helm, and assumes responsibility for the province’s public insurance program. Gary Collins has been given the task of overseeing the Insurance Corporation of British…
Quebec minister decries high-powered cars
June 7, 2001 by Canadian UnderwriterQuebec’s Transport Minister Guy Chevrette says auto manufacturers are creating a highway hazard by building more powerful engines in cars. At a news conference, Chevrette says that the federal government should step in to limit the power of car engines…
Kingsway sets quarterly record
June 1, 2001 by Canadian UnderwriterSpecialty risk auto insurer Kingsway Financial Services Inc. (TSE: KFS) delivered a sterling 13.1% return on equity for the first quarter of this year. Net income for the latest reporting period rose 138% year-on-year to $10.6 million (1st quarter 2000:…
Auto claim costs PILE UP
June 1, 2001 Vikki SpencerAs controversy over aftermarket parts use continues to swirl in the wake of the State Farm verdict, insurers, auto manufacturers, and those in the collision repair industry are looking at how to make driving safer and reduce accident costs. With auto insurers facing dismal results across the country, and in Ontario in particular, the need to tackle these costs is clear. But the role aftermarket parts, recycled parts, theft deterrents, and vehicle design will play in this attempt to bring profitability back to the auto insurance market was very much up for discussion at the recent Auto Insurers and Manufacturers (AIM) forum held in Mississauga.
WRUNG OUT TO THE LAST CENT
June 1, 2001 Sean van Zyl, EditorCorporate income tax, payroll tax, premium tax, general and provincial sales taxes, capital tax, fire tax, health levies, “mark-to-market” deemed capital gain tax…the list of “creative” taxation mechanisms the federal and provincial governments have concocted over the years to financially milk Canada’s property and casualty insurance industry is astonishing. As one renowned tax expert notes, the array of taxes applied to insurance are not only inconsistent in their application, but also result in “taxes being applied on taxes”. This led him to conclude that the current approach of the authorities is simply to “treat the industry as a ‘cash cow’ for tax purposes”. Against this backdrop, the Insurance Bureau of Canada has embarked on a nationwide lobby campaign to convince the authorities to reduce transactional-based taxes, with the long-term intent of elimination. This, however, will prove a formidable challenge as once a tax has become entrenched, it may require something akin to an “Act of God” to shift revenue policies, tax consultants warn.
A SURE HAND AT THE WHEEL
June 1, 2001 AxiomWith my boss, Fred Wilson, at the wheel, we maneuvered the comfy van on to the highway and headed for the golf course. As manager of the company’s downtown branch, Fred was in close daily contact with many of our…
Deterioration marks Facility results
June 1, 2001 by Canadian UnderwriterPoor results in the overall auto market are carrying over into the Facility Association, the insurance pool for high-risk drivers. At the association’s recent AGM, outgoing CEO Stan Griffin noted that in Ontario combined ratios for the FA jumped from…
THE IBC’S “MAN IN BLACK”
June 1, 2001 Sean van Zyl, Editor“Some people regard lobbying as kind of dirty word. I don’t necessarily agree, I think a lot of positive initiatives, from public safety to consumer protection, have come about from efforts to influence public policy,” says the man who for a long time standing has been a major driving force behind regulatory reform lobby campaigns engaged by the Insurance Bureau of Canada (IBC). George Cooke, president of one of Canada’s more prominent “home bred” property and casualty insurers – The Dominion of Canada General Insurance Company – was recently appointed the chair of what will become a new and more formidable industry lobby body as the IBC and the Insurance Information Centre of Canada (IICC) merge from July this year.
Customer Relationship Management: Who is your customer?
June 1, 2001 Vikki SpencerWith the advent of Internet sales and service, building a solid relationship with customers will become more important than ever. Not only does the Internet bring the opportunity for high-tech customer relationship management (CRM) solutions, but it also gives consumers…