P&C reserves are actually improving, says Conning
December 19, 2003 by Canadian UnderwriterDespite reports from rating agencies suggesting reserve deficiencies remain a major concern for U.S. p&c insurers, Conning Research & Consulting says the situation is actually improving.Although reserve deficiencies persist, significant reserve additions made by companies in 2002 have turned the…
Forecasters predict 2004 will be “just right”: III
December 17, 2003 by Canadian UnderwriterWall Street analysts are predicting a solid 2004 for the U.S. insurance industry, according to the annual “earlybird forecast issued by the Insurance Information Institute (III).Analyst tell the III that a combined of premium growth and investment market recovery could…
Primary Insurer Strategies 2004: Towing The Bottom-Line
December 1, 2003 Sean van Zyl, Editor“Cautious optimism” – would seem to generally sum up the points of view of primary insurer CEOs in looking ahead to 2004. While this year saw the first signs of a profit recovery within the Canadian property and casualty insurance industry – with the premium pool rising by almost a third to reach a staggering $30 billion – the past 12 months also dealt insurers several blows in the form of higher catastrophe losses, rising prior-year adverse reserve developments, a spilling of red ink from the Facility Association, and provincial political intervention on loss-making mandatory covers. The latter, which applies to mostly personal lines auto, remains the greatest concern of insurers as governments have been slow to react with necessary product loss reduction reforms whilst introducing politically-motivated rate freezes. With much riding on the future viability of the auto product, insurer CEOs partaking in CU’s annual “strategic outlook” are hesitant to declare the industry “out of the woods” in terms of achieving a healthy and stable marketplace.
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.
Being Ready
November 1, 2003 Sean van Zyl, EditorThe property and casualty insurance industry’s protection mechanism for policyholders against any insurer defaulting on its claim obligations – the Property and Casualty Insurance Compensation Corp. (PACICC) – is set to undergo a major overhaul in response to a changed marketplace. The devastating competitive price impact of the last “soft market”, coupled with spiraling losses and diminishing investment income returns, has created a much more volatile risk environment for the insurance industry, observes Paul Kovacs the newly appointed president of PACICC. And, while the financial picture of insurers has improved vastly in 2003 as a result of two years-plus of “hard market” pricing adjustments, there is still considerable risk for insurer insolvencies over the next three years, Kovacs says.
Canadian Risk Managers: Change in the Air
November 1, 2003 Vikki SpencerThree years ago, risk managers were focused on how to promote their profession. Now, for better or worse, risk management is center stage. But, what will risk managers do with their newfound fame? At this year’s RIMS Canada conference, risk managers “took the bull by the horns” and talked about how to make the most out of the intense pressure they are currently under, to finally advance the cause of enterprise risk management in their organizations.
A New Approach?
November 1, 2003 Lawrie Savage of Lawrie Savage & Associates Inc.At the recent Insurance Bureau of Canada (IBC) “Regulatory Affairs Symposium”, which was held in Toronto, the speakers were asked to provide their perspective on recommendations put forward by former regulators and industry members on a new system of market conduct regulation in Canada. A move in this direction would significantly reduce the current “red tape” overload on insurers.
Risk Management: Changing Times
September 1, 2003 by Canadian UnderwriterNo one would disagree that the world of risk management has changed completely over recent years. Risk managers of today have to contend with corporate scandals and property risk exposures that before the 9/11 terrorist attacks were inconceivable. For many risk managers this is also the first real hard insurance market they have encountered during their careers. It is in such times that the role of professional bodies become invaluable to their members. And, as veteran risk managers Glen Frederick and Anne Chalmers prepare for this year’s RIMS Canada conference to be held in Victoria, B.C., they promise that the event will be very much focused on the tools and solutions available to risk managers during such volatile times.
Partnerships in Risk
September 1, 2003 Garry McDonell, senior vice president at Aon ReedStenhouseThe complexity of today’s business environment is largely a result of both the volume of change and the speed at which it occurs. Driven by shareholder expectations, the scrutiny of regulators and the demands of consumers, corporations are learning that managing risk is significantly different than it was even three years ago.
Letters to the Editor (September 01, 2003)
September 1, 2003 by Canadian UnderwriterDear Editor, Don Callahan is likely correct in his statement that “I cautiously (my emphasis) add that Canadian licensed reinsurers, regardless of the precarious position of their parents, will have sufficient capital to support run-offs view of strong scrutiny in…
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.
P&C Super Summit 2003: Sins of the Past
August 1, 2003 Vikki SpencerOn the eve of Ontario’s launch of new regulations to reform the auto insurance system, leaders of the property and casualty insurance industry met to discuss the challenges and possible solutions to the dilemmas facing them. While auto dominated much of the debate, there was a clear understanding that the industry’s woes are manifold. Across all lines of business, from the reinsurance sector to the primary market, companies and indeed their clients are paying the price for too many years of soft pricing and poor industry performance.