B.C.’s Utilities Commission has approved a 0.4% increase in the premium rate for mandatory auto insurance made available through crown insurer, the Insurance Corp. of British Columbia (ICBC). ICBC says it will also increase optional insurance coverage rates by 0.4%,…
Fueled by traditional insurance capacity shortage during 2002, particularly in the liability risk classes and certain specialty risk sectors, the growth in corporate risk retention through establishment of captives and other alternative self-insurance mechanisms is expected to maintain record levels through this year and into 2004 – after coming off a “ten year banner year” for 2001 following the insurance cost impact of the 9/11 terrorist attacks. Canada has not been excluded from this trend, with the number of captives formed during 2002 more than doubling the overall worldwide growth rate of captive formations. Canadian risk solution experts CU spoke to believe that the premium value as well as establishment of self-insurance mechanisms for this year and 2004 will continue to reflect strong growth despite the moderate improvement in traditional insurance capacity and easing of pricing currently emerging in the marketplace.
When two insurance policies appear to insure the same loss, how do you determine if there should be contribution and how is it to be shared? A review of current law, policies in effect, and specifically the Ontario Insurance Act provides some clarity.
The insistence on errors and omissions (E&O) insurance for virtually any kind of professional exposure has created some waves in this specialty market, particularly for engineers. Poor results, increasing claims and emerging exposures are prompting insurers to aggressively seek rate adjustments, carefully monitor loss trends, and re-evaluate specific coverages for many lines of E&O. In some cases, such as in Alberta, the regulator is beginning to question whether the approach of insurers falls within accepted business boundaries or whether their actions fall under “tied selling”.
A unanimous decision by the U.S. Court of Appeals, second circuit, is being lauded by insurers as a “devastating blow” to the lawsuit by World Trade Center (WTC) leaseholder Larry Silverstein.The court supported in part insurers’ contention that the destruction…
Canada’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.
As part of the move to make a more level playing field between B.C.’s public insurer and private insurers, the provincial government has released a discussion paper on proposed legislative changes.The changes would see optional coverage, whether provided by the…
Insurers are generally pleased with proposals set out in a new Ontario government “white paper” to further reform the auto insurance system.Many of the provisions are aimed at reducing health care costs and court awards on auto accident claims, something…
Of all liability claims that can be presented to an insurer, allegations of sexual abuse represent a special challenge. These claims often involve mixed elements of negligent and intentional acts. As well, there may be both innocent and culpable insureds seeking indemnity under the policy. A recent decision by the Ontario Court of Appeal has provided new direction which could have significant impact on insurers.
Insurers are applauding the news that New Brunswick will cap “pain and suffering” awards for minor injuries as a result of auto accidents. The announcement follows an intense election in that province, where rising auto insurance rates become a key…
While not many insurers writing auto in Ontario would agree that Bill-59 – the Automobile Insurance Rate Stability Act – was the answer to their prayers in bringing about effective reform to a longstanding problematic product, not all would share their perspective. Rob Sampson, a member of provincial parliament (MPP) and the driving force behind the latest auto insurance product reform initiatives packaged under Bill-198, believes that legislative measures introduced in 1996 under Bill-59 achieved its purpose in stabilizing pricing and enticing insurers back into the marketplace. The current legislation, which will soon be publicized as regulations, is an extension of what Bill-59 set out to do, Sampson says. In this respect, the current market environment is not unlike that of 1996 when insurers’ appetite for taking on business had waned, he observes, which the latest reforms are aimed at bringing insurance companies back to the table.
A new survey suggests only about half of corporations in various sectors in the U.K. feel prepared to deal with the consequences of a terrorist attack. Digital security company mi2g, along with the Association of Insurance and Risk Managers (AIRMIC),…