Government works towards risk management program for farmers
December 5, 2002 by Canadian UnderwriterIn the wake of devastatingly bad conditions, both drought and flood, damaging crops this year, governments are working towards a risk management program for the agriculture industry.This week, federal, provincial and territorial agriculture departments met to review proposals on the…
Snow No Mercy
December 1, 2002 Craig HarrisIce and snow removal contractors are in the insurance spotlight, as growing liability exposures force property and casualty insurance carriers to pull back coverage. Those insurers that remain in the business are taking a careful approach to underwriting – and loss prevention.
RIMS Canada 2002 Conference: A Hard Market Face-Off
November 1, 2002 Vikki SpencerWhen risk managers gathered in Saskatoon recently for the 2002 RIMS Canada Conference, an air of tension could be felt. Rising pricing, shrinking capacity and new exclusions have caused a rift in insurer relations with their commercial buyers. It was…
Coming Events (November 01, 2002)
November 1, 2002 by Canadian UnderwriterAnnouncements in Coming Events are run free of charge as a service to the industry. Items should be submitted by the first of the month prior to the month in which the announcement is to appear. To post events online,…
Hurricane Lili damage less than anticipated: RMS
October 4, 2002 by Canadian UnderwriterHurricane Lili will not be the insurance loss originally feared, predicts California-based Risk Management Solutions.Originally, when Lili was a category 4 hurricane, 24 hours before landfall, the company’s probability system at www.riskonline.com had predicted mean losses of US$3.2 billion. There…
Captives Gain New Shine
October 1, 2002 Sean van Zyl, EditorSoaring commercial insurance rates post-9/11 have triggered what many risk analysts believe will be the biggest withdrawal of premium from traditional coverage ever seen – exceeding the retreat of billions of dollars brought on by the liability crisis of the mid-1980s. And, similar to the commercial exodus from insurance brought on by the liability crisis, insureds are being forced to look at self-insurance options not only as a result of cost, but severe cutbacks by insurers in terms of cover and capacity across nearly all lines of business. As a result, alternative risk transfer (ART) is expected to account for about half of all U.S. commercial risk dollars by the end of 2003, according to A.M. Best. As part of this drive, the rating agency predicts record growth in the formation of captives for this year through to 2004. Is Canada following this global trend? Specialty risk solution experts CU spoke to say it is already happening.
Atlantic Woes, a broker perspective
October 1, 2002 Mike Brien, president of Macdonald Chisholm InsuranceI have been asked a couple of times to publicly provide a “brokers perspective” on the current market situation as it relates to Atlantic Canada. While I certainly would not consider myself qualified to speak for all of the approximately 2,900 brokers in the region “which handle about $2 billion in annual premium” I have had the opportunity to speak with many brokers who have identified a number of common concerns and issues.
Into the Fire
September 1, 2002 Brian Jones, president of Jones Brown Inc.Devastating condominium fires, such as the most recent blaze at Calgary’s Waterford complex, have created challenges for the construction industry and builders risk insurance market. Are the actions of insurers justified relative to loss experience, and how are insureds reacting to the tighter terms and pricing of cover?
9/11 One Year Later: Lingering Issues
September 1, 2002 Vikki SpencerAs the grim anniversary of the September 11 terrorist attacks in New York City and the Pentagon approached, its reverberations were still being felt. Battles in the Middle East rage on, the world’s economies continue to struggle and, in the realm of insurance, uncertainties linger. Chief among these is the lack of available terrorism coverage, specifically affecting aviation and commercial property lines. Despite hopes of a solution, a year after the tragedy that represents the largest loss in insurance history, the terrorism insurance market remains in disarray.
Q2 rate survey shows heightened distress in U.S. commercial market
August 1, 2002 by Canadian UnderwriterRates are up, capacity is down and alternative risk management mechanisms are increasingly being used, says the Council of Insurance Agents and Brokers (CIAB). In releasing its Commercial Market Index for the second quarter of 2002, which includes July 1…
Risk Management: The Road Less Traveled
August 1, 2002 Vikki SpencerFor risk managers facing January renewals on their insurance portfolios, 2002 was the year of sticker shock and worse. Along with dramatic price increases came new exclusions for mold, cyber risks and terrorism, reduced limits and a struggle to find capacity in the marketplace. But is the headache over? Risk managers expect that it is not, bracing themselves for an uncertain future and wondering when will the hard market end. And many are also looking seriously at options beyond insurance that may have held little appeal in the buyer’s market, but are becoming increasingly attractive in the current seller’s market. At the same time, there is recognition that captives, reciprocals, capital markets and more represent uncharted territory which many within the risk management profession find daunting.
Bridging Troubled Waters
August 1, 2002 Vikki SpencerAs risk managers converge in Saskatoon for the 27th Canadian Risk and Insurance Management (CRIMS) Conference in September, it is not difficult to predict what will be on their minds. The current market turmoil, including rising premiums, tightening terms and companies exiting lines of business or the market altogether, is causing major headaches for corporate insurance buyers. Hoping to bring insurers, risk managers and business partners together, conference chair Nowell Seaman says there is no more crucial time for networking and discussing the issues at hand than now.