Rating agency predicts “worst year ever” for insurers
October 19, 2001 by Canadian UnderwriterRating agency Fitch is predicting 2001 will be the worst underwriting year ever for p&C insurers, largely as a result of the September 11 terrorist attacks. In a new report, Fitch notes that the industy will likely post its worst…
Future of airline insurance up for discussion
October 5, 2001 by Canadian UnderwriterThe future of aviation insurance, as well as airport and air navigation facility coverage, are the subject of debate and speculation since the September 11 terrorist attacks. The National Post reports Canadian Transport Minister David Collonette says the government could…
Honing Web-Based Broker Tools
October 1, 2001 Grace Webster, of Royal & SunAlliance Insurance Co. of CanadaThe combined impact of increased customer expectations and the shifting competitive landscape is driving significant change in the Canadian service industry. More than any other factor, it is the ability of insurers to work closely with brokers in a true partnership relationship, driving out costs and delivering true value to the customer, that will determine the success of the players.
The Consolidation Challenge
October 1, 2001 Kevin Rosen, insurance practice director at Silverline TechnologThe winds of change are sweeping across the property and casualty insurance industry. Some of the changes have been “blowing in the wind” for some time, while others are relatively new. For example, increasing consolidation in the industry, as well as moves by brokers to diversify and expand their product offerings. New changes include the liberalization of Canadian financial regulations, demutualization of many firms, and technical advances that could lead to a single-entry, multiple company interface for brokers.
Bill C-8: a Time to Rejoice?
October 1, 2001 Francesca Iacurto, director of public affairs at IBACOriginally introduced in June 2000 as Bill C-38, the legislation died on the order paper that fell when the federal election dissolved parliament. Reintroduced in February 2001, the legislation was passed particularly swiftly considering the protracted review process that led…
Distribution Trends: The Convergence Theory
October 1, 2001 Andrew RickardThe North American financial services landscape has changed dramatically in the last ten years. Recent legislation in both Canada and in the U.S. has helped to pave the way for industry convergence, with some believing that new, “one stop shop” financial supermarkets will emerge where the four pillars of the banking, insurance, securities and trust sectors once stood. Is it time for property and casualty brokers to think seriously about offering new products to their clients?
Commercial Liability Lines: Bright Sunshiny Days?
September 1, 2001 Sean van Zyl, EditorWith the sharp rise in property related insurance losses, particularly on personal auto which by far accounts for the lion’s share of premiums in Canada, many insurers have shown renewed interest in commercial liability lines. Recent acquisitions have resulted in specialty operators with dominating interests in specific liability classes, while some of the major general underwriters have created dedicated liability risk departments with the intent of pursuing new business. But, while the commercial liability landscape may appear at this point to be more inviting than the “dog eat dog” competitive environment on the property side, some within the industry believe that the “tail” of liability coverages will eventually sweep back in the faces of Canadian insurers similar to the adverse developments underway in the U.S. market.
Rate Outlook: Back to the Future
September 1, 2001 Igal Mayer, president of CGU Group Canada Ltd.Rates are a hot topic in the industry these days. We have all seen the flurry of rate activity and tougher underwriting being put in place over the past several months. Yet, despite all of this action, the industry is not in a sustainable position going into 2002 and looking ahead to the years beyond.
Breaking from the “Burger Chains”
September 1, 2001 Sean van Zyl, EditorAfter more than 10 years of heated debate and political positioning by various stakeholders, the new federal financial services legislation under Bill C-8 was proclaimed this past June. The new legislation was passed with the all-important block against the banks selling insurance products through their branches – this despite a delay in the bill’s delivery due to the last minute general election call in the fall of last year. The fact that banking representatives made it clear before the Senate Financing Committee just prior to the passing of Bill C-8 that they expect financial services reform to be re-addressed incoming years, is a clear sign that independent insurance brokers cannot let up the pressure in their political lobbying campaign, says Ginny Bannerman, incoming president of the Insurance Brokers Association of Canada (IBAC).
Network Knight a Human “Plug-In”
September 1, 2001 Ivor Kaye, Grantech Systems Inc.In this era of rapid growth and development, technology is the key that unlocks opportunity. Unfortunately, the insurance industry has been slow to adopt technology as a primary tool, preferring instead to simply replace manual tasks with automation, and upgrade…
S&P maintains negative position on European reinsurers
August 20, 2001 by Canadian UnderwriterRating agency Standard & Poor’s has maintained its negative outlook position of the European reinsurance market based on the industry’s 2000 financial returns. If anything, the rating agency notes, the financial strength ratings of companies may be downgraded. Although the…
Managing Global Risks: Running for Cover
August 1, 2001 Vikki SpencerAn earthquake in Peru. The fall of the argentinean economy. tropical storm allison strikes several american states. Political tensions flare in the middle east. for the average canadian, these events seem a world away, having little impact on day-to-day life. But, for the average canadian company, these events can have a profound effect on the bottom-line. With the growth of canadian exports and domestic companies stretching their wings to establish operations beyond the border, managing these new international risks is a minefield of potential losses. and, with insurance rates hardening on a global scale and few companies willing to offer bundled international coverage, today’s corporate risk managers could find themselves scrambling for cover.