Don’t pop the champagne cork just yet
February 1, 2002 Sean van Zyl, EditorAlthough the 2001 yearend results for both the Canadian and U.S. property and casualty insurance industries are expected to reflect one of the worst financial years on record, there is an excited buzz among the ranks of company CEOs that…
MPI income drops due to claims cost and investment slump
January 15, 2002 by Canadian UnderwriterManitoba’s public insurer is feeling the crunch, with poor investment returns and higher than expected claims costs leading to an almost 85% drop in income for the first three quarters of 2001.For the nine months ending November 30, 2001, Manitoba…
North American Insurance Conference: The Perfect Storm
January 1, 2002 by Canadian UnderwriterAs Hurricane Michelle raged through the Bahamas, members of the insurance industry from both sides of the border congregated in Florida to assess where the market is headed, post-September 11. Overwhelmingly, speakers agree that despite the 9/11 tragedy, the event has shaken the industry out of complacency. With shrinking reinsurance capacity and lingering doubts about the availability of coverage, insurers and reinsurers alike are moving forward with a resolve to bring both rates back into positive territory and focus on responsible underwriting.
Tax reform a key goal for IBC in 2002
December 5, 2001 by Canadian UnderwriterAt the Insurance Bureau of Canada’s (IBC) annual meeting in Toronto, the industry’s representative body says reducing the tax burden on insurers will be front and center in its mandate for the coming year. Educating government about how easing this…
Worth the Paper
December 1, 2001 Glenn McGillivray, asst. VP of corporate communication, Swiss Reinsurance Co. of CanadaReinsurers do not just provide covers, they provide guarantees — promises that they will see the contract through, and not just collect a premium. This is where a reinsurer’s counter-party credit and claims-paying ability rating comes into play, especially if the risk has a long-tail or the maximum loss may be substantial.
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.
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.
Terrorism Risks the Exclusion Dilemma
December 1, 2001 Brian Reeve, partner at Cassels Brock & Blackwell LLPTerrorism exclusions in Canadian property policies, are they necessary? As the deadline for reinsurance renewals nears, many insurers are looking for alternative solutions to the vexing problem of providing – or not providing – coverage for terrorism related risks.
Sleeping Giant: Canada’s Wildfire Risk
December 1, 2001 Vikki SpencerIn 1991, fires raged through the hills of eastern San Francisco, killing 25 and leaving thousands homeless. This travesty cost insurers more than US$1.5 billion. Not since the 1906 San Francisco earthquake set that city ablaze, had the world seen…
White Mountains latest to form new reinsurance operation
November 2, 2001 by Canadian UnderwriterNew Hampshire-based White Mountains is the latest insurer to announce that it will capitalize on the hardening market by setting up a reinsurance operation. The company plans to establish a Bermuda-based reinsurance arm to target the property and casualty market,…
Reinsurance Strategies 2002: Bargain Days Over
November 1, 2001 Sean van Zyl, EditorPrior to the terrorist attacks of September 11, reinsurers operating in Canada were adamant that 2002 treaty renewals would have to reflect general rate adjustments in the order of 15% to 25%. Most companies were mindful, however, of the prevailing and excessive competition within the Canadian marketplace, and in this respect seemed more hopeful than resolved that the rate adjustments they hoped to seek for next year would be achieved. The post-September 11 reinsurance landscape has changed dramatically. Covers available at “less-than-cost” pricing have vanished to be replaced by a steely attitude to both the terms and pricing of coverage. Reinsurers partaking in CU’s annual “Reinsurance Strategy Outlook” offer little hope for cheap pricing as the global cost impact of the terrorist attacks begins to bite. The message is clear: “The bargain days are over”.
2001 CIAA Conference: Perilous Times
November 1, 2001 Vikki SpencerAs the Canadian Insurance Accountants Association (CIAA) held its annual convention in Montreal in late September, the terrorist attacks just days prior that shook the U.S. and the insurance industry worldwide were heavy on the minds of many. The attacks cast a pall over an already troubled industry, everyone agrees, and put the industry’s financial woes front and center.