September 11 lawsuits in the works
January 16, 2002 by Canadian UnderwriterFamilies of victims of the September 11 terrorist attacks have begun to file suit against the airlines involved. An earlier suit had been filed against United Airlines by one family of a passenger aboard the flight that struck World Trade…
B.C. Court Acts Against Banks
January 1, 2002 Brian Reeve, partner at Cassels Brock & Blackwell LLPA recent decision taken by British Columbia’s Supreme Court against one of Canada’s major banking groups with regard to the selling of credit insurance could have broader implications with regard to limiting at the provincial level the types of financial service products the banks have branched into under federal regulations.
Terrorism Exclusions Walking a Thin Line
January 1, 2002 Sean van Zyl, EditorWith the January 1st deadline for when the vast majority of reinsurance treaty renewals take effect having come and gone without any response from the federal government on providing an alternative financing source for terrorism risks, primary insurers have begun issuing policy exclusions on both commercial and personal lines of cover — the consequence being that large parts of both the small and large business sectors, as well as individuals, have now been left uninsured to potential terrorism losses. While discussions between insurers and the federal government continue into the new year, it seems clear that the government’s future involvement, if any, will be limited to “high risk target” exposures, and that the general terrorism exclusions implemented by insurers in Canada will stay in place. How will this affect the property and casualty insurance industry in Canada? CU approached company CEOs and several organizations impacted by the withdrawal of reinsurance terrorism cover to determine how they will deal with the problem.
Financing Terrorism Risks a Backstop, Not Bailout
December 1, 2001 Stan Griffin, executive vice president of regional operations at the IBCIn the wake of the September 11 terrorist attacks in the U.S., which sparked concerns globally of a reinsurance withdrawal from covering such risks, the Insurance Bureau of Canada has presented a proposal to the federal government that would see the creation of a temporary reinsurance mechanism available to insurers.
Terrorism Risks the Exclusion Dilemma
December 1, 2001 Brian Reeve, partner at Cassels Brock & Blackwell LLPTerrorism exclusions in Canadian property policies, are they necessary? As the deadline for reinsurance renewals nears, many insurers are looking for alternative solutions to the vexing problem of providing – or not providing – coverage for terrorism related risks.
Sleeping Giant: Canada’s Wildfire Risk
December 1, 2001 Vikki SpencerIn 1991, fires raged through the hills of eastern San Francisco, killing 25 and leaving thousands homeless. This travesty cost insurers more than US$1.5 billion. Not since the 1906 San Francisco earthquake set that city ablaze, had the world seen…
Concern grows over U.S. terrorism pool as yearend approaches
November 20, 2001 by Canadian UnderwriterWith the arrival of the U.S. Thanksgiving weekend, concern is growing over when legislation creating a government-backed terrorism pool will be returned by Congress. The National Association of Professional Insurance Agents (PIA) is adding its voice to the concerns, calling…
AXA cancels world cup soccer coverage
November 1, 2001 by Canadian UnderwriterThe world soccer governing body FIFA says its largest insurer for the upcoming 2002 World Cup has cancelled its portion of the insurance program covering the football events to take place in Korea and Japan. A FIFA statement says AXA…
Reinsurance Strategies 2002: Bargain Days Over
November 1, 2001 Sean van Zyl, EditorPrior to the terrorist attacks of September 11, reinsurers operating in Canada were adamant that 2002 treaty renewals would have to reflect general rate adjustments in the order of 15% to 25%. Most companies were mindful, however, of the prevailing and excessive competition within the Canadian marketplace, and in this respect seemed more hopeful than resolved that the rate adjustments they hoped to seek for next year would be achieved. The post-September 11 reinsurance landscape has changed dramatically. Covers available at “less-than-cost” pricing have vanished to be replaced by a steely attitude to both the terms and pricing of coverage. Reinsurers partaking in CU’s annual “Reinsurance Strategy Outlook” offer little hope for cheap pricing as the global cost impact of the terrorist attacks begins to bite. The message is clear: “The bargain days are over”.
Keeping the World’s Runways Open
November 1, 2001 David CarrIn the aftermath of the terrorist attacks on September 11 of this year, the Canadian federal government has offered the country’s struggling airlines a wing and a prayer – at least a temporary one…
AXA cancels world cup soccer coverage allegedly due to terrorism risk
October 15, 2001 by Canadian UnderwriterThe world soccer governing body FIFA announced today that its largest insurer for the upcoming 2002 World Cup has provided a cancellation notice for its portion of the insurance program covering the football events to take place in Korea and…
Future of airline insurance up for discussion
October 5, 2001 by Canadian UnderwriterThe future of aviation insurance, as well as airport and air navigation facility coverage, are the subject of debate and speculation since the September 11 terrorist attacks. The National Post reports Canadian Transport Minister David Collonette says the government could…