Fitch predicts California blazes could be worst ever
October 31, 2003 by Canadian UnderwriterRating agency Fitch says the wildfires that continue to rage in areas of California could amount to the worst insured loss ever from wildfires. This means the damage would have to top US$1.7 billion (US$2.2 billion in 2003 dollars), the…
Capital Allocation in Canada: The Three Strikes
October 1, 2003 Vikki SpencerWith all the headaches experienced in the Canadian property and casualty insurance industry right now, not the least of which are struggling results from a volatile auto insurance product, it begs the question: “Why would any insurer want to do business here?” The Canadian industry brings many challenges – stressed financial results, strict capital requirements and a higher tax burden – sources say. These “three strikes” could add up to an “out” for global parents choosing whether or not to put precious capital into this market, they warn.
Liability Exposure South of the 49th Parallel
October 1, 2003 Mark Ram, president of Markel Insurance Co. of CanadaIt is the largest product liability verdict so far this year – and one unheard of within Canada’s kinder legal system. A Florida jury this past August ordered a Wisconsin pool-pump manufacturer to pay US$104 million in compensatory damages to the family of a boy who sustained permanent brain damage after his arm became stuck in a pool drain three years ago. And the whopping $104 million is just the beginning. Further punitive damage awards are reported pending, as the pool pump company was allegedly aware of a manufacturing defect for years, yet did nothing.
B.C. Forest Fires Cost Insurers $200 Million
October 1, 2003 by Canadian UnderwriterInsured losses from forest fires that swept through British Columbia in August are expected to total at least $200 million, says the Insurance Bureau of Canada (IBC). But this figure should not increase significantly, says IBC Pacific Region government relations…
Weighing Up Depreciation in a Business Interruption Claim
October 1, 2003 Richard Davidson, an insurance industry consultantCan depreciation be deducted from a business interruption claim as a saving? Depreciation is often a fat juicy figure that would gladden the heart of any adjuster or forensic accountant to deduct from a claim…but, should they?
Uneasy Optimism…
October 1, 2003 Sean van Zyl, EditorThe financial results of Canadian and U.S. insurers for the first half of this year suggest that the two marketplaces are converging in a positive direction after several years of runaway claims costs. For both U.S. and Canadian companies, the…
B.C. fire claims top $200 million, more to come
September 18, 2003 by Canadian UnderwriterInsurers have begun paying claims relating to the B.C. wild fires which ravaged several urban areas within the province, with the insured loss topping $200 million, according to the Insurance Bureau of Canada (IBC). As cleanup and reconstruction begins in…
Saunders successor to Royal & SunAlliance top spot
September 12, 2003 by Canadian UnderwriterWith news of the retirement of Royal & SunAlliance Canada Group CEO Larry Simmons, Rowan Saunders has been named to take over the top spot in the company.Saunders was most recently president of Royal’s Agilon Financial, as well as vice…
U.S. insurer exposure to 9/11 reaches US$9.3 billion
September 5, 2003 by Canadian UnderwriterNet claims for U.S. p&c insurers resulting from the September 11, 2001 terrorist attacks have reached US$9.3 billion, according to U.S. rating agency Weiss Ratings Inc.Weiss says a review of claims filed with the National Association of Insurance Commissioners (NAIC)…
Insurers face potential $850 million lawsuit from oil company
September 3, 2003 by Canadian UnderwriterWestern Oil Sands, one of the partners in the Athabasca Oil Sands Project (AOSP), says it has filed a “statement of claim” against its insurers with which it will proceed if previously filed claims are not paid.The suit would seek…
Perils and Fire, Exclusion Door Opens for Insurers
September 1, 2003 Craig HarrisCanada’s highest court recently made it a lot easier for insurers to put fire-following exclusions for severe catastrophic incidents into multi-peril policies. The question now is whether provincial legislators will respond with what many in the insurance industry – particularly the Insurance Bureau of Canada (IBC) – say are much-needed changes to legislation across the country.
Slow Burn
September 1, 2003 Glenn McGillivrayAs this is being read, hundreds of wildfires are burning in the interior of British Columbia, and they could very well make Canadian insurance history.