Don’t pop the champagne cork just yet
February 1, 2002 Sean van Zyl, EditorAlthough the 2001 yearend results for both the Canadian and U.S. property and casualty insurance industries are expected to reflect one of the worst financial years on record, there is an excited buzz among the ranks of company CEOs that…
Cyber Terrorism: Mass Destruction or Mass Disruption?
February 1, 2002 Vikki SpencerJust days after the September 11 terrorist attacks the U.S. Federal Bureau of Investigation began warning the public that the potential for future attacks exist, and among the threats was that of cyber terrorism. The concept is not a new one, such attacks have been taking place between Palestinian and Israeli groups, and between U.S. and Chinese sources, in response to political conflicts. And now, in light of new terrorism and cyber exclusions in insurance policies, commercial insurance buyers are wondering how to protect themselves from the potential threat of today’s “hacktivists” becoming tomorrow’s cyber terrorists, and weapons of mass disruption turning into weapons of mass destruction.
Lloyd’s proposals necessary but challenging, says S&P
January 30, 2002 by Canadian UnderwriterProposed reforms to the structure of the world’s oldest insurance market announced by Lloyd’s earlier this week are being praised by rating agency Standard & Poor’s. Although the announcement does not impact Lloyd’s single-A rating, S&P says the reforms “address…
U.K. extends airline insurance while Canadian deadline looms
January 22, 2002 by Canadian UnderwriterAs the U.K. government decides to extend “war and terrorism” insurance coverage for its airlines until the end of March, the future of Canada’s airlines remains unknown. The U.K.’s former deadline of January 22 has been moved to March 20,…
Lloyd’s releases proposal for new market structure
January 17, 2002 by Canadian UnderwriterIn response to criticisms and years of poor results, Lloyd’s of London has released a series of proposed changes to “modernize” the 300-year-old insurance market. Among the changes being put before the ruling Council of Lloyd’s is the end of…
Lloyd’s syndicates and names fewer for 2002
January 14, 2002 by Canadian UnderwriterLloyd’s of London will have fewer Names, or individual investors, as well as syndicates for the coming year. This comes despite a rise in investment in the insurance market, in response to hardening rates for 2002.The number of syndicates has…
U.S. state regulators deny ISO terrorism exclusions
January 8, 2002 by Canadian UnderwriterNew York’s insurance superintendent, Gregory Serio, today rejected terrorism exclusion wordings that would have pegged maximum insured losses per event at US$25 million. This rejection of the exclusion wordings, which were recently issued by the Insurance Services Office (ISO) and…
North American Insurance Conference: The Perfect Storm
January 1, 2002 by Canadian UnderwriterAs Hurricane Michelle raged through the Bahamas, members of the insurance industry from both sides of the border congregated in Florida to assess where the market is headed, post-September 11. Overwhelmingly, speakers agree that despite the 9/11 tragedy, the event has shaken the industry out of complacency. With shrinking reinsurance capacity and lingering doubts about the availability of coverage, insurers and reinsurers alike are moving forward with a resolve to bring both rates back into positive territory and focus on responsible underwriting.
Claims Management Strategies 2002: A Delicate Balance
January 1, 2002 Vikki SpencerThe insurance industry is at a crossroads, with rates rising, but continuing to be outpaced by claims costs. Technology is a relentless force, offering promise, but also upping the ante on customer service expectations. A survey of top insurer claims staff shows that today’s adjusters walk a fine line between the increasing demands of the customer and the need to reduce costs, between technology’s potential and its potential downfalls. CU asks the experts what new forces threaten this delicate balance moving forward.
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.
No US terror pool in place before yearend
December 21, 2001 by Canadian UnderwriterWith the U.S. Congress adjourning for the year, there will be no terrorism risk pool in place as insurers head into the new year, when most commercial policies come up for renewal. Congress gave up the ghost when the U.S.…
St. Paul’s plans global overhaul; retains Canadian specialty lines
December 12, 2001 by Canadian UnderwriterU.S.-based St. Paul will undergo a major overhaul as the company plans to exit certain lines of business, including medical malpractice, and to exit countries where “the company is not likely to achieve competitive scale”.Canada will, however, not be among…