The Next Big “Tail” Liability?
March 1, 2004 Allison MurrayWhile many insurers have written food-processing risks with a lenient attitude – with an eye cast at the food processing industry’s historically attractive underwriting result – warning lights are now beginning to blink, suggesting that litigation involving the entire food processing enterprise, both animal and human, may be the next big thing in long-tail product liability.
Tough Times for Main Street
March 1, 2004 by Canadian UnderwriterPremium hikes and availability issues have prompted the Canadian Federation of Independent Business to call for a federal review of the property and casualty insurance industry. But, insurers and brokers say solutions for small businesses should be market-driven, not political. They also contend that the market is working.
Insurers Urged to Sharpen Claim Defense Tools
March 1, 2004 by Canadian UnderwriterInsurers and their commercial clients are paying out too much on claims that could be defended, speakers warned at a recent seminar hosted by Crawford Adjusters Canada Ltd. “I’m darned tired of seeing these companies and insurers kicked around by…
Risk Managers Look for the Right Price
March 1, 2004 Vikki SpencerAt the end of 2003, two commercial insurance surveys came out suggesting the market turn risk managers had been praying for was on its way. First, the Risk and Insurance Management Society (RIMS) benchmark survey (inclusive of U.S. and Canadian…
SGI gives break to commercial auto policyholders
February 20, 2004 by Canadian UnderwriterFollowing on its “safe driver recognition program”, Saskatchewan Government Insurance (SGI) is planning to offer discounts to its commercial clients.SGI predicts that during the first year of the program, about $2.8 million in policy discounts based on safe driving records…
Hub acquires Ontario commercial accounts
February 17, 2004 by Canadian UnderwriterChicago- based broker consolidator Hub International Ltd. has acquired the book of business of an Ontario broker specializing in commercial agriculture accounts.The book, that of broker and producer Martin Kir, is estimated to produce annual revenue of US$270,000. Kir now…
U.S. p&c reserves still a thorn in industry’s side
February 2, 2004 by Canadian UnderwriterJust as U.S. p&c insurers disclose fourth quarter reserve charges, Moody’s Investors Service says the industry remains woefully under-reserved.In a study of the top 50 p&c insurers and reinsurers, Moody’s noted that commercial liability lines continue to be significantly under-reserved…
The High Price of Credit Scoring
February 1, 2004 Vikki SpencerWhat does a person’s credit history have to do with the odds they are going to have an auto accident or a house fire? Insurers say plenty. Credit scoring, or the use of an individual’s credit history in the rating process, has been used in the U.S. but not without causing political turmoil. Canadian insurers, on the other hand, have been staying under the political radar, using credit scoring on a limited basis for fear of inciting further government intrusion into the underwriting process.
Taking CAT Risks to the Next Advancement
February 1, 2004 Dennis KuzakThe longstanding business of insurance – whereby risk of loss is transferred for a price per a set contract – has withstood wars, disasters, politics and time. Yet, the business of risk transfer has not remained “timeless” in that market forces have adapted with the changing needs of a developing and ever advancing society. The growing popularity of “cat bonds” as a form of investment as well as that of risk hedging against large unexpected losses therefore should come as no surprise to insurers.
The “Multi-Sport” Rack Option
February 1, 2004 Kevin CampbellWhile insurer and other industry Internet-based portals have made progress in simplifying personal lines processing, this is not the case with commercial lines. Some companies are building proprietary websites for commercial quotes. While this may please smaller brokers, it represents two steps backward for those brokerages who had invested in automating their commercial lines. Fortunately, tapping into new Internet technology provides a solution to satisfy all brokers.
U.S. Primary Market Outlook: Big Stakes Game
February 1, 2004 Sean van Zyl, EditorA survey conducted by the Insurance Information Institute (III) of the 250 insurance management attendees of its annually held Joint Industry Forum (JIF), which this year’s event recently took place in New York, suggests that four out of five U.S.…
Going Wireless
February 1, 2004 Chris VennIt would seem in today’s tough market environment that “flexibility” has become a competitive (perhaps survivalist) tactic for brokerages in responding to the shifting “marketscape”. And, I have seen brokers respond in many different ways – with some of these responses having been very creative and surprising. “Wireless networking” is one such creative solution.