What’s new: In brief (May 11, 2004)
May 11, 2004 by Canadian UnderwriterCitigroup and its Travelers Insurance Co. have had their debt ratings affirmed by Moody’s following settlement of claims relative to the WorldCom class action lawsuit. Citigroup announced a US$4.95 billion special charge for the suit and other litigation reserves. With…
Swiss Re wins another round against Silverstein
May 4, 2004 by Canadian UnderwriterSwiss Re came out ahead in the latest legal round against World Trade Center leaseholder Larry Silverstein. A New York jury found in favor of the reinsurer that it is bound by the Wilprop policy form for its portion of…
The Disarray of Auto Insurance
May 1, 2004 Bill StarThe insurance industry in Canada and regulators have never faced an auto market with so much confusion as we have in Canada at present. Unfortunately, there is no end in sight since regulators in many provinces have no idea of a solution and are not interested in the advice of the industry. All they want is lower rates but have no interest in properly controlling the claims costs or designing a product that will work efficiently.
Auto Outlook: Dodging Bullets
May 1, 2004 Rowan SaundersThere is clearly great misunderstanding in the general public with regards to insurance overall, but specifically auto insurance. A recent furniture store advertisement depicting a couple gleefully defrauding an insurance company illustrates the opinion floating among some consumers. There is…
Tough Times for Main Street
March 1, 2004 by Canadian UnderwriterPremium hikes and availability issues have prompted the Canadian Federation of Independent Business to call for a federal review of the property and casualty insurance industry. But, insurers and brokers say solutions for small businesses should be market-driven, not political. They also contend that the market is working.
Low losses expected from Maritime storms
February 26, 2004 by Canadian UnderwriterThe severe winter storms striking the Atlantic coast of Canada late last week should produce few insured losses, says Don Forgeron, Atlantic region vice president for the Insurance Bureau of Canada (IBC).“The good news is there weren’t many vehicles on…
IBC establishes online access to MVR records
February 5, 2004 by Canadian UnderwriterInsurers and brokers will soon have real-time access to driver records through a new program from the Insurance Bureau of Canada (IBC). The IBC, working with the Ontario Ministry of Transportation (MTO), is preparing to launch the program April 1.In…
The High Price of Credit Scoring
February 1, 2004 Vikki SpencerWhat does a person’s credit history have to do with the odds they are going to have an auto accident or a house fire? Insurers say plenty. Credit scoring, or the use of an individual’s credit history in the rating process, has been used in the U.S. but not without causing political turmoil. Canadian insurers, on the other hand, have been staying under the political radar, using credit scoring on a limited basis for fear of inciting further government intrusion into the underwriting process.
New car owners lack insurance knowledge
January 15, 2004 by Canadian UnderwriterNew car owners know far more about the vehicle they are purchasing than they do about the insurance they buy to cover it, says a study by U.S. insurer Progressive.The survey of new car buyers should that while 98% could…
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…
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.
Ontario government acts on rate freeze legislation
November 26, 2003 by Canadian UnderwriterThe new Ontario government under the Liberal Party has introduced the Automobile Insurance Rate Stabilization Act, which if passed, will freeze insurer’s auto rates at levels applied by companies at October 23 of this year. The rate freeze, which is…