September 11 Will Change Canadian Insurers
December 1, 2001 Joel Baker, GM, A.M. Best Canada Ltd. and Robert Adams, asst. VP, A.M. Best Co.The indirect consequences of the September 11 terrorist attacks on the U.S. will have a far greater impact on the insurance industry in Canada than the direct costs resulting from the tragedy. Few Canadian companies will be directly affected.
IBAO 2001 Convention: Rates Back to the Future
December 1, 2001 Vikki SpencerAs Ontario’s brokers gathered in Toronto for the annual Insurance Brokers Association of Ontario Convention, the challenges and opportunities of the hardening insurance market were on everyone’s minds. Just how far will the tide turn, and how will reinsurance price hikes trickle down to brokers’ clients? All of this comes as Ontario’s brokers prepare for immense regulatory changes and the emergence of new technological tools to their trade.
Back Stop…or “Stopped”
December 1, 2001 Sean van Zyl, EditorWith the deadline for yearend reinsurance renewals rapidly drawing near, a political game of “chicken” appears to be in play between insurers, reinsurers and the federal government. The Insurance Bureau of Canada (IBC) established a special task group following the…
Financing Terrorism Risks a Backstop, Not Bailout
December 1, 2001 Stan Griffin, executive vice president of regional operations at the IBCIn the wake of the September 11 terrorist attacks in the U.S., which sparked concerns globally of a reinsurance withdrawal from covering such risks, the Insurance Bureau of Canada has presented a proposal to the federal government that would see the creation of a temporary reinsurance mechanism available to insurers.
Kingsway reports record quarter
December 1, 2001 by Canadian UnderwriterSpecialty insurer Kingsway (TSE: KFS) reported record earnings and revenue for the third quarter 2001. Unlike many insurers who have seen abysmal results due to September 11 losses, Kingsway posted net income of $14.3 million, a 47% increase over the…
Can the Customer Survive?
December 1, 2001 Sean van Zyl, EditorWith the economic recession beginning to eat away at the operating margins of Canadian commerce across all sectors, coupled with the anticipated hike in insurance prices that businesses face for 2002, one of the biggest and immediate challenges facing commercial…
Consolidation to follow terrorist attacks, says PWC
November 28, 2001 by Canadian UnderwriterFollowing the September 11 terrorist attacks, the industry has begun to see worldwide consolidation, and this is expected to continue, says PriceWaterhouse Coopers. In its yearend forecast, PWC’s Transaction Services Group says there will be more merger and acquisition (m&a)…
Lloyd’s WTC exposure hits $2.8 billion
November 27, 2001 by Canadian UnderwriterLloyd’s of London says its net exposure from the September 11 terrorist attacks is now estimated at US$2.8 billion. This is an increase of 45% over an early estimate of US$1.9 billion.The revised estimate is the result of new property…
Commercial insurance reassessed post-September 11
November 22, 2001 by Canadian UnderwriterIn a speech to Australian risk managers, Lloyd’s of London chair Sax Riley says businesses will have to change their approach to insurance in the post-September 11 market. Specifically, corporate clients will need to reassess their insurance buying in light…
Scor premiums up 45% in third quarter
November 19, 2001 by Canadian UnderwriterParis-based reinsurer Scor says its premiums are up 45% for the third quarter 2001, with premium income totaling Cdn$4.851 billion. Even without the consolidation of Scor Life Re and Sorema, the company’s premium income was up 25% compared with the…
New capital will bolster reinsurance market
November 14, 2001 by Canadian UnderwriterRating agency Standard and Poor’s says between US$10 billion and US$20 billion of new capital will enter the insurance market in the next six months, the majority of which will be in reinsurance.Already new companies have brought more than US$5…
Insurers face terrorism “coverage gap”, says study
November 13, 2001 by Canadian UnderwriterA new study from A.M. Best Canada suggests Canadian insurers will face a “coverage gap”, with reinsurers reluctant to write terrorism coverage in their January 1 renewals, despite primary contracts covering the risk that go well into 2002.The report, authored…