FSCO seizes control of Canadian Millers’ Mutual
December 7, 2001 by Canadian UnderwriterIn a not unexpected move, the Financial Services Commission of Ontario (FSCO) is seizing control of troubled Canadian Millers’ Mutual’s assets.FSCO says the move was made in light of the insurer’s assets being deemed insufficient to provide for the company…
Cost of risk declines in 2000, but signs point to hardening
December 6, 2001 by Canadian UnderwriterThe cost of risk declined in 2000, according to a survey released by the Risk and Insurance Management Society (RIMS). The annual Benchmark Survey, conducted with Ernst & Young, asks more than 830 risk managers in the U.S. and Canada…
Insurers tally Enron losses
December 4, 2001 by Canadian UnderwriterWith the failure of U.S. energy giant Enron, insurers are now tallying their exposure to the dying corporation. Among those affected is Chubb, which is estimating its exposure provisionally at US$220 million, pretax. This comes from surety bonds, which act…
OSFI to wind up Reliance Canadian operations
December 4, 2001 by Canadian UnderwriterFollowing the insolvency of Pennsylvania-based parent Reliance, the company’s Canadian branch operation will be shut down by the Office of the Superintendent of Financial Services (OSFI). OSFI had frozen the Canadian operation’s assets in August, 2000, and directed it to…
2002 Primary Market Outlook Angst
December 1, 2001 Sean van Zyl, EditorWith the Canadian property and casualty insurance industry likely to end this year with a return on equity of less than 2% — the lowest level on record — and as claim costs continue to outstrip premium growth, insurer CEOs…
Worth the Paper
December 1, 2001 Glenn McGillivray, asst. VP of corporate communication, Swiss Reinsurance Co. of CanadaReinsurers do not just provide covers, they provide guarantees — promises that they will see the contract through, and not just collect a premium. This is where a reinsurer’s counter-party credit and claims-paying ability rating comes into play, especially if the risk has a long-tail or the maximum loss may be substantial.
IBAO 2001 Convention: Rates Back to the Future
December 1, 2001 Vikki SpencerAs Ontario’s brokers gathered in Toronto for the annual Insurance Brokers Association of Ontario Convention, the challenges and opportunities of the hardening insurance market were on everyone’s minds. Just how far will the tide turn, and how will reinsurance price hikes trickle down to brokers’ clients? All of this comes as Ontario’s brokers prepare for immense regulatory changes and the emergence of new technological tools to their trade.
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.
Insurers stung in third quarter by falling investments
December 1, 2001 by Canadian UnderwriterCanadian property and casualty insurers produced a record-low return on equity (ROE) of 1.8% for the first nine months of this year against the 7.4% return achieved a year previous, according to the latest quarterly Perspective financial report released by…
Can the Customer Survive?
December 1, 2001 Sean van Zyl, EditorWith the economic recession beginning to eat away at the operating margins of Canadian commerce across all sectors, coupled with the anticipated hike in insurance prices that businesses face for 2002, one of the biggest and immediate challenges facing commercial…
Insurers’ investment performance plummets in 3-Q
November 23, 2001 by Canadian UnderwriterCanadian insurers brought home a record-low ROE of 1.8% for the first nine months of this year against the 7.4% return made over the same period in 2000, according to latest Insurance Bureau of Canada (IBC) financial data.Net income for…
ISO puts insured property losses from September 11 at US$16.6 billion
November 6, 2001 by Canadian UnderwriterTotal insured property losses arising from the terrorist attacks against the World Trade Center and the Pentagon will likely amount to about US$16.6 billion, according to the Insurance Services Office’s (ISO) claims unit. Although this loss estimate is inclusive of…