What’s New: In brief (June 03, 2005)
June 3, 2005 by Canadian UnderwriterToyota Motor Co’s (TM.NYS) Prius petrol-electric hybrid sedan is facing investigation by the US regulatory authority, due to complaints of a sudden stalling of its engine. Preliminary evaluation of approximately 75,000 Prius models manufactured in 2004-2005 is being implemented by…
New Path to Health
June 1, 2005 by Canadian UnderwriterThe road forward is a bumpy one for auto insurance companies in light of recent politically-inspired rants regarding regulation reforms, which are set to challenge insurers during a softening cycle that has been further compromised by bouts of bad press brought on by poorly defined financial result releases and questionable contingent commissions, to name but a few of the industries hurdles.
Rethinking Rate Regulation
June 1, 2005 Jane Voll, chief economist at the Insurance Bureau of CanadaThe past three years has seen an unprecedented level of intervention by provincial governments in the setting of auto insurance prices. Over this period, an estimated $1.3 billion in auto insurance premiums has come under direct price controls in the form of mandatory rebates, rollbacks and price freezes. This number will move even higher when further mandatory price dictates come into effect this month in the province’s of Alberta and Newfoundland.
U.S. haz-mat truckers face heightened background checks
May 31, 2005 by Canadian UnderwriterThe Department of Homeland Security and the Transportation Security Agency recently heightened security precautions for truck drivers. A new mandate states that U.S. truckers applying to renew their hazardous-materials (haz-mat) driver’s licenses must now undergo fingerprint-based background checks. David Mitchell,…
S&P affirms Kingsway group’s financial strength ratings
March 18, 2005 by Canadian UnderwriterRating agency Standard & Poor’s has reaffirmed the financial strength ratings of Kingsway Financial Services Inc. and the group’s U.S. operational holding company, Kingsway America Inc.A significant factor cited by the rating agency for its affirmed position of the Kingsway…
Views (February 01, 2005)
February 1, 2005 by Canadian UnderwriterLaw firm Miller Thomson LLP has expanded its presence into Quebec, merging with Pouliot Mercure. The Montreal-based firm has 56 lawyers, bringing Miller Thomson’s total professional staff to more than 500. The Quebec office will operate under the name Miller…
Markel launches new “fuel price” insurance
January 12, 2005 by Canadian UnderwriterTrucking insurer Markel Insurance Co. of Canada has devised a new product to hedge against volatile fuel prices.“FUELogic” allows long-haul truckers to lock in the “maximum” price they choose to pay for fuel from a number of options, to be…
What’s new: In brief (December 14, 2004)
December 14, 2004 by Canadian UnderwriterStandard & Poor’s says its ratings on insurers involved in the second World Trade Center coverage trial will not be impacted by the verdict. Although the jury found that the September 11, 2001 terrorist attacks were “two occurrences” for the…
U.S. insurers winning battles, if not war, on litigation
August 12, 2004 by Canadian UnderwriterTwo recent U.S. decisions have provided small victories to insurers in the litigation war.The California Supreme Court last week tossed out a lower court ruling that had resulted in a multi-million dollar bad faith damage award against an insurer. In…
Trucking Litigation – An Accident Waiting to Happen
August 1, 2004 Vikki SpencerThe trucking insurance line has taken its financial lumps in U.S. courts over recent years. And, this liability trend will likely migrate north of the border into Canada, speakers at the recently held “Transportation Seminar” predict. In the meantime, Canadian insurers are also exposed to cross-border trucking operations, all of which point to a head-on collision with a litigation system gone wild.
Reinsurance Pricing: Out of Gas?
July 1, 2004 Sean van Zyl, EditorWhile the “magic” of last year’s hard market transformed Canada’s reinsurance players from pumpkins into glittering stage-coaches, the bad news is that time may now be running out. Similar to their primary company clients, reinsurers prospered during 2003 with virtually all the financial indicators pointing in the right direction – except one. After two years of almost miraculous growth in premium income – largely driven by rate increases – the Canadian reinsurance sector appears to have hit a wall. Does this mean that reinsurance pricing has lost steam, possibly signaling the turning point in the industry price cycle that so many have come to fear? Reinsurers fervently deny that price softening is setting in, purporting that reduced premium growth is a reflection of higher primary retentions as companies look to benefit from hard market pricing. Even so, a loss of business, in terms of risk transfer, will ultimately exert economic operating pressures on reinsurers in a marketplace which many regard as having too many players.
Trucking seminar: U.S. litigation trends coming to Canada soon
June 15, 2004 by Canadian UnderwriterU.S.-style litigation against long-haul trucking companies is “creeping into Canada”, says lawyer Paul Iacono of York Street Dispute Resolution Group. Iacono made the comments as part of a seminar on transportation litigation sponsored by Kingsway General Insurance Co. in Mississauga…