Punitive Damages and the “Runaway Jury”
September 1, 2003 William Blakeney, Blakeney, Henneberry MurphyRobert Frost once suggested that, “a jury consists of twelve persons chosen to decide who has the better lawyer”. While there is an element of truth to this, insurers have long had faith in juries for their common sense and prudent approach to assessing damages. This perspective, however, was recently put “to the test” when a jury awarded an unprecedented $2.5 million in damages against an insurance company.
On The Move (September 01, 2003)
September 1, 2003 by Canadian UnderwriterRoyal & SunAlliance Canada confirms the retirement of president and CEO Larry Simmons. Simmons took over the top spot in 2001, having previously served as COO. He will continue to head up the company until a replacement is named. The…
Aligning Sources & Exposures
September 1, 2003 Perry Brazeau Canada division manager at FM GlobalFrom newspaper headlines to the corporate boardroom, risk management is becoming a high profile proposition. As companies react to stories of corporate scandals and multi-million-dollar lawsuits, how does this align with the long-term risks facing corporations daily. A recent study compared the views of risk managers and financial executives on the greatest threats to their corporations, as well as the best means of addressing these threats.
Black Summer…
September 1, 2003 Sean van Zyl, EditorThose in the industry who had been looking forward to an easy-going summer would have been jolted by the series of adverse events that seemed to cascade one after the other in the final stages of the season. Basically, short…
Kelowna fires leave 244 homes destroyed
August 25, 2003 by Canadian UnderwriterAfter a month of forest fires raging through areas of B.C., Kelowna is now the target zone. Some of the 24,000 residents under evacuation order were returning to their homes on Sunday, but many did not know if they would…
B.C. forest fires claim 80 homes, sawmill
August 6, 2003 by Canadian UnderwriterFires that continue to rage through B.C. are making it difficult for emergency crews and adjusters to reach affected areas and thus come up with an estimate of damage.As of the first week of August, about 335 fires still burned,…
Building Boom, Insurance Bust
August 1, 2003 Craig HarrisInsurance costs are hammering Canada’s rapidly growing construction industry as rates go through the roof and capacity caves in. Builders are harder hit than many other commercial policyholders because underwriters are skittish about large-loss exposures. Many in the construction industry want rate relief and the return of stable markets.
IIS 2003 Seminar: Political, Social, and Economic Upheaval
August 1, 2003 Sean van Zyl, EditorIn the words of the International Insurance Society’s (IIS) president Patrick Kenny, “there’s a new chapter being written in the history of the insurance industry”. The post-9/11 era has created a volatile risk environment on several levels, from the political, social to economical – all of which have bearing on how insurers perceive and deal with the risks of today and tomorrow. Not surprisingly, the 600 attendees and speakers from around the world that partook in this year’s IIS seminar, which was recently held in New York City, identified “recovery from adverse market conditions” as being the top priority facing the insurance industry in the year ahead.
B.C. Fires Wreak Multi-Million Dollar Losses
August 1, 2003 by Canadian UnderwriterIn what is reported to be the worst forest fire to hit B.C. in the past 50 years, a widespread blaze has caused the evacuation of several towns and even invaded into neighboring Alberta. Although damage is expected to run…
Reinsurance Outlook: 2003 CAT Rates
August 1, 2003 Catherine Fagan, assistant vice president atSwiss Reinsurance Co. CanadaAlthough pricing of catastrophe covers began rising in the wake of the 9/11 terrorist attack, it is important to note that these rate increases only brought premium levels to a point last seen almost a decade ago. Should the Canadian insurance industry see a normal “cat burden” for 2003, then the combination of primary and reinsurance rate increases should be enough to allow reinsurers to see improved combined ratios at yearend. But, whether the market’s result will be good enough remains to be seen. Swiss Re’s annual cat study highlights the major factors likely to come into play in evaluating and pricing exposures.
Ratings on eight Canadian companies downgraded: A.M. Best
June 17, 2003 by Canadian UnderwriterIn releasing public data ratings on 44 Canadian p&c companies, eight faced downgrades, while only two saw their ratings go up, states New Jersey-based A.M. Best.Public data ratings are based on more limited information than interactive ratings, but does take…
Valueing Subrogating
June 1, 2003 Michael BaumelMany insurance carriers have asked themselves the following question: Is our subrogation department the best profit center it can be? The response has been a resounding “no!” for most carriers.