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Canadian Insurance Congress 2001: A CULTURAL CRISES

July 1, 2001 Sean van Zyl, Editor

“We haven’t seen [adverse financial] conditions such as this in the last 50 years,” says the Insurance Bureau of Canada’s (IBC) chief economist Paul Kovacs. As one of the opening speakers at this year’s Canadian Insurance Congress, Kovacs points out…

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Stock Insurers: Setting the Pace

July 1, 2001 Vikki Spencer

With the recent introduction of new insurance-related stocks on the American market, and the movement of Canadian stock companies onto exchanges south of the border, it would seem insurers are playing in the equities market spotlight. Speculation that the downfall of the technology sector could spur a return to more tried and true performers is coupled with recognition that hardening rates will bring a return to confidence in the insurance sector. But who among the Canadian players will come out on top? CU asks analysts and public company management what the key to stock market success will be.

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A.M. Best issues "excellent ratings"

June 20, 2001 by Canadian Underwriter

Rating agency A.M. Best has issued a financial strength rating of "A" (excellent) for CGU Insurance Co. of Canada and a rating of "A-" (excellent) to group subsidiaries Scottish & York Insurance Co., and Traders General Insurance Co. The rating…

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Swiss Re report predicts explosive growth in risk securitization products

June 14, 2001 by Canadian Underwriter

A recently released Swiss Re Sigma report titled "Capital Market Innovation in the Insurance Industry" suggests that the value of alternative risk securitization solutions will increase tenfold by 2010. The report notes that approximately US$12.6 billion has been funneled into…

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WRUNG OUT TO THE LAST CENT

June 1, 2001 Sean van Zyl, Editor

Corporate 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.

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DANGEROUS WATERS: A GUIDE TO INSURING GENERAL LIABILITY MUNICIPAL PROGRAMS

June 1, 2001 David Wade, an independent risk management consultant

Mention Walkerton, and the immediate thought that jumps to mind is “water contamination”. The tragic deaths that occurred in Walkerton, Ontario last year as a result of contaminated water supply are a stark reminder of the importance of risk management. A proper risk management program applied by the Walkerton authorities could have averted the tragedy that took place. As such, insurers looking to underwrite general liability insurance products for municipalities need to focus on the appropriate risk containment programs applied by these insureds.

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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.

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Customer Relationship Management: Who is your customer?

June 1, 2001 Vikki Spencer

With 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…

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CRM ON TARGET

June 1, 2001 Martin Power of Editorial Edge Inc.

In the final climactic moment of the television series “Survivor”, the host on handing out the $1 million prize noted that, “this game is all about relationships”. The physical challenges, the starvation and other forms of deprivation, and in the end, it all came down to building solid and lasting relationships. This should not a surprise revelation for marketers and sellers of complex products including insurance. The key to being a winner is always the same – the establishment of loyal relationships, in this case with your customers.

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MAKING THE CALL ON OUTSOURCING

June 1, 2001 Paul Kowal, president of Kowal Associates

With the rise of the insurance call center environment, companies are seeking a direct, and cost efficient line to customers. But whether or not this core function should be outsourced is a subject of hot debate. Concerns about outsourcing are not without merit, but with proper planning including specification goals and a willingness to delegate responsibility, this can be an efficient and effective vehicle for insurers.

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Collision Repair: Fast Lane to the Future

May 1, 2001 Sam Malatesta, vice president marketing & insurance relations at

The past decade has been a time of transition for the collision repair industry, marked by a shrinking market and consolidation. Now the industry is seeking new alliances with the insurance industry in the drive to improve efficiency and increase customer satisfaction. As both industries head into the next decade, the pressure and the potential for success is increasingly dependent on the strength of those alliances.

Feature Mergers and Aqcuisitions

U.S. not out of woods

May 1, 2001 by Canadian Underwriter

While rates are on the rise, the price correction may not be enough to counter the U.S. industry’s expense problems, says a new report by A.M. Best. Figures from the last quarter of 2000, as well as yearend results, show…