What About The Innocent Co-Insured?
January 1, 2004 Richard DavidsonSome years ago, I visited a commercial client to review his cover prior to renewal. I could tell that his mind was not fully attentive to matters I was discussing with him. He then turned to me and posed an…
New study highlights dangers of marijuana grow operations
December 23, 2003 by Canadian UnderwriterIn a report highlighting concerns over commercial marijuana grow operations, insurance concerns over the increased danger of fire are being brought forward by the Ontario Association of Chiefs of Police (OACP).The OACP-commissioned report speaks to several concerns, including the cost…
Fraudulent cyclist tops list of insurance scams
December 18, 2003 by Canadian UnderwriterA scamming cyclist tops the list of insurance frauds for 2003, according to the annual survey by the Insurance Bureau of Canada (IBC). While the list makes light of ridiculous insurance frauds committed each year, fraud is no laughing matter,…
S&P pegs US commercial reserve shortfall at US$60 billion
December 16, 2003 by Canadian UnderwriterNotwithstanding asbestos and environmental liabilities, the U.S. commercial insurance market is facing a reserve shortfall of about US$60 billion, says rating agency Standard & Poor’s. This is despite reserve additions of US$22 billion in 2002 towards prior year losses.“As its…
ICLR tells B.C. inquiry forest fire risk can be mitigated
December 10, 2003 by Canadian UnderwriterSpeaking at the provincial review into B.C.’s “firestorm 2003”, the forest fires that caused extensive damage to several areas of the province this summer, the Institute for Catastrophic Loss Reduction (ICLR) highlighted why forest fire risk is growing and how…
North American Insurance Conference: Line in the Sand
December 1, 2003 Vikki SpencerThe skies may have been clear over St. Pete’s Beach for the annual North American Insurance Conference this fall, but the prospects for the insurance industry are far from bright, speakers told the conference. Insurers are facing a crisis of confidence, with everyone from regulators to raters, and especially consumers, taking a jaundiced view of the industry. And, alarmingly, there are fears the industry may already be sinking back into the soft pricing/writing for marketshare environment that led to its current stormy situation.
CAMIC 2003: Passages
December 1, 2003 Vikki SpencerPassages: from the French “passager”, literally meaning to execute a passage – the insurance industry today is navigating its way through a host of changes, not the least of which is being provided by a constantly shifting legal and regulatory environment. For Canada’s mutual insurers, which met recently in Montreal for the annual Canadian Association of Mutual Insurance Companies (CAMIC) convention, some of these challenges take on a unique flavor.
Drilling Down for New Solutions
December 1, 2003 Craig HarrisThe oil and gas industry was already facing steep insurance rate hikes and capacity concerns before the terrorist attacks of 9/11. More than two years after that event, it is still reeling from coverage restrictions, record-level deductibles and a massive spike in prices. However, the bigger players appear to have learnt their lesson of the insurance market’s pricing vagaries, and they have identified and created alternative risk transfer mechanisms.
IBAO 2003 Convention: A Crises of Credibility
December 1, 2003 Vikki Spencer and Sean van ZylThe recently held Insurance Brokers Association of Ontario (IBAO) annual convention hosted a panel of primary insurer CEOs who were put before the firing line of the 500-plus audience of mostly independent brokers who felt that the “hard market” has brought on an unnecessarily “hard attitude” by insurers in their relationship with the brokerage community. While defending the “strength” of company relations with brokers, the CEOs admit that some actions taken by insurers during the latest hard market in terms of cutting broker contracts and forcing “standard risks” into the non-standard market may have been overly severe – the cost being a loss of faith in insurance companies from brokers to consumers.
California wildfire loss estimate $2 billion: ISO
November 20, 2003 by Canadian UnderwriterDespite rating agency estimates of a much higher insured loss from last month’s California wildfires, insurers should face a bill of about US$2.04 billion says the US Insurance Services Office (ISO). The ISO’s property claim services unit says the fires…
III pegs California wildfire loss at US$2 billion
November 6, 2003 by Canadian UnderwriterWhile much of the wildfires raging through California are now under control, the US Insurance Information Institute (III) says damage could easily top US$2 billion, making these the worst fires in California history.As of Monday, 5,980 claims had been filed…
Reinsurance Strategies 2003: Signs of Recovery
November 1, 2003 Vikki SpencerFor an industry that was on the brink of disaster less than a year ago, reinsurers can take pride in the financial turnaround seen thus far for 2003. But, CEOs offering their insights to CU’s annual yearend treaty outlook are…