The Chronicle: Issue 2015-46, November 17, 2015


What's Going Through The Intersection of Insurance and Technology?

Cyber Risk: Opportunities and Threats for Insurers
Uptake for cyber insurance has been challenging, according to the brokers I know who specialize in the product. However, recent reports say that this is turning around, and it seems rates and premiums are rising as well. Question: Can the industry respond to turn these into opportunities?

According to a recent Wells Fargo study of 100 US middle market and large companies, 85% say they have purchased cyber security and data privacy insurance coverage to protect against financial loss. In 43% of the cases, the CEO was the decision-maker.

A recent report notes that premiums and rate are rising for the products, which sounds like more good news. Unfortunately, the reasons show how a two-edged sword can cut. Reuters notes that the premium rise is the result of increasing successful hacks against retail and healthcare.

The Intersection: Insurance-Canada.ca Blog
The Intersection

an Insurance-Canada.ca Blog


Business of Insurance

IBM study: C-suite executives see ‘Uberization’ as primary competitive threat
The trend of “uberization” – or industry disruption caused by an unlikely competitor – has become a dominant concern of the C-suite, finds a new IBM study. In just two years, the percentage of C-suite leaders who expect to contend with competition from outside their industry increased by more than a quarter – rising from 43 percent in 2013 to 54 percent today.

Travel Insurance Coordinators becomes Allianz Global Assistance
Allianz Global Assistance and TIC Travel Insurance Coordinators, which merged to form one of Canada's largest providers of travel insurance and assistance in January 2015, are now officially one in both name and brand.

Technology

EY and Forbes Insights survey: Canada leads in embracing data analytics
Nearly 60% of Canadian businesses are making data analytics a strategic priority, but they can do more to help staff, managers and executives act on analytics insights. According to a new report developed by Forbes Insights in cooperation with EY, 2015 EY/Forbes Insights Data & Analytics Impact Index: Don't Forget the Human Element, people and culture are critical to unlocking business value from data analytics.

Gartner: Connected ‘Things’ in use will number 6.4 billion in 2016
Gartner forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from 2015, and will reach 20.8 billion by 2020. In 2016, 5.5 million new things will get connected every day.

TEI/IET Mobility Newsletter: Helsinki sets the pace for the future of mobility
According to a recent US study, growth in congestion is “outpacing the nation's ability to build the roads, bridges, trains and other infrastructure to handle all these people on the move.” Helsinki appears to have found a sustainable mobility solution that will, for all intents and purposes, eliminate the need for personal vehicle ownership by the city's residents because it will provide them with attractive, accessible alternatives.

Claims

Benchmark IME: Common perils of document management/sharing and general information security
Last week we reviewed some of the common perils of document management/sharing and general information security, and now we will look at practical solutions to proactively address security concerns with the benefit of improving internal efficiency at the same time. One of the fundamental underlying themes of the security risks previously presented (fax, email, personal computer, etc.) is that they result, in large part, due to the information/data being available and/or physically travelling outside the domain and control of each of the various claim participants. As a result, it's time to acknowledge the futility of focusing solely on defending impregnable data fortresses and equipping remote computers with antivirus and group policy rules in an attempt to safeguard remote data exchanges.

InEdge: Aligning analytics to claims management business strategies
When a claims manager assesses the current analytics environment with respect to the requirements of the evolving business context, the resulting recommendations must not simply consist of technological architecture upgrades. Instead, mindful of the business perspective, the expected recommendations must also identify the gap between the current state and the desired system.

Distribution

iA Financial Group acquires BBA Financial Group
Industrial Alliance Insurance and Financial Services Inc. has announced the signing of an agreement to acquire the operations of BBA Financial Group, a Quebec-based brokerage firm with around 200 representatives which specializes in the distribution of life and health insurance products. Under the agreement, following the conclusion of the transaction, BBA will become a division of National Financial Insurance Agency Inc. (NFIA), a wholly-owned subsidiary of Investia Financial Services Inc., which is itself a wholly-owned subsidiary of iA Financial Group. This transaction reflects iA Financial Group's strategic focus on adding new distribution in its retail insurance and wealth management operations.n

Insurance Jack to provide consumers with streamlined online buying experience
Petley-Hare Limited, an insurance brokerage with nearly 100 years of experience in the Durham Region, has launched a new digital division, Insurance Jack, which now serves clients province-wide. Insurance Jack was built on the premise that the insurance industry has evolved and consumers are interested in a more streamlined buying process. the company aims to make buying insurance more efficient and hassle-free.

Rogers Insurance Ltd. acquires CCV Insurance & Financial Services Inc.
Rogers Insurance Ltd. is pleased to announce, under the previously formed Inowest Insurance Brokers Inc. group of companies, the acquisition of a controlling interest of CCV Insurance & Financial Services Inc. The acquisition represents the strategic expansion of Rogers into the Ontario marketplace, leveraging on CCV's business locations in Brampton, Georgetown and Huntsville, Ontario. Brian Evans will become President and a significant shareholder of CCV, and Robert Lewis will remain a shareholder and assume the role of Director, Insurance Distribution.

Marketing

eMarketer: Execs look to technology for improved sales productivity
Many organizations are moving to implement more marketing technology in their stack – especially sales enablement tools. But research suggests tech adoption is a relatively small part of being a high-performing salesperson.

Consumer Information

Square One survey: Canadians are unaware of a common home insurance condition that can result in claim denial
Square One recently conducted a survey to determine awareness levels of a common home insurance condition that, if not met, eliminates coverage for damage from frozen pipes. The condition requires homeowners, who are away for more than a few days, take the following steps: (1) Turn off water at the home's main source and drain all pipes; or (2) Arrange for someone to enter the home daily and ensure heat is maintained. Surprisingly, 91% percent of the 1,200 people surveyed were not aware of this condition.

Sun Life survey: Most Canadians believe their employers are responsible for supporting their health
New findings from the 2015 Sun Life Canadian Health Index indicate that an overwhelming majority of Canadians (more than four in five) believe that employers are responsible for supporting their employees' physical and psychological health. The 2015 survey also found that there is a clear relationship between health and employee productivity among those surveyed. More than one-third (35%) of Canadians say that their productivity at work has been negatively affected by their physical or mental health in the last six months.

IBC's top tips to help increase insurance literacy
November is Financial Literacy Month in Canada, and Insurance Bureau of Canada (IBC) wants to help empower Canadians with the confidence, skills and knowledge they need to make responsible financial decisions. IBC points out that it's important to understand your car, home and business insurance policies at all times. When buying or renewing insurance, many questions can arise: What does my home insurance policy cover? If I get into a collision tomorrow, what kind of coverage can I expect under my automobile insurance policy? Does the distance I travel affect my premium? If my business is home-based, do I need special coverage?


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