Issue 2008-49 -- December 23, 2008

This newsletter is for members of the Canadian Insurance Industry, and those who serve it. The newsletter is published weekly, and notes information mostly about the use of the Internet and related technologies in the industry. Some is international, where we feel it is relevant to Canada.

Merry Christmas!

We wish you and yours a very Merry Christmas. If you do not celebrate Christmas, but have other special times around this period in the year, we wish you a wonderful celebration.

In lieu of cards and appreciation for you our readers, and a special thanks for you our advertisers, Insurance-Canada.ca has made a donation to one of the insurance-related charities.

To all, we wish a happy and healthy finale to 2008, and the best in 2009.

 *   Sally Praskey   *   Marlene Pike   *   Sophie Kwong   *
*   Mette Griffin   *   Dave Gibbons   *
*   Patrick Vice   *   Doug Grant   *

The Christmas tree was popularized in England only in the nineteenth century, by Prince Albert, Queen Victoria's German consort. Son of the duke of Saxe-Coburg-Gotha (a duchy in central Germany), Albert had grown up decorating Christmas trees, and when he married Victoria, in 1840, he requested that she adopt the German tradition. The famous English engraving of Queen Victoria and Prince Albert and their tree in 1848. That tradition was soon adopted in North America. (Illustrated London News).

Victorian Christmas Tree

NOTE: As we will take a break to celebrate with our families and friends, this newsletter will not publish over the year end holidays. The next issue is scheduled for Tuesday, January 6, 2009.


Distribution

Applied Systems Canada and Policy Works Renew Integration Partnership.
Mississauga, Ontario-December 12, 2008--Applied Systems Canada and Policy Works Inc., the leading vendors in their respective markets, announce today the renewal of their strategic integration partnership involving The Agency Manager® (TAM) and the Policy Works® Commercial Management System.

IIABA And Future One Release 2008 Agency Universe Findings.
(ALEXANDRIA, VA - Dec. 4, 2008) - The number of independent agencies has stabilized---that's one of the key findings of the 2008 Agency Universe Study. Future One, a collaboration of the Independent Insurance Agents & Brokers of America (the Big "I") and leading independent agency companies, has released key findings from the recently completed study, hailed as the most comprehensive look at the independent agency system.

New kasina study reveals steps wholesalers must take to win over advisors.
New York, (December 16, 2008) -- With mutual fund redemptions expected to surpass $325 billion in 2008, it is now more critical than ever for firms to maximize wholesalers' effectiveness in communicating with financial advisors.

Our People

LIMRA and CFM Partners Launch Canadian Anti-Money Laundering and Anti-Terrorist Financing Training Program.
WASHINGTON, D.C. and WINDSOR, Conn., Dec. 4, 2008 - LIMRA and CFM Partners today launched a bilingual training program to meet the recent requirements for Canadian life insurance agents to receive ongoing Anti-Money Laundering and Anti-Terrorist Financing training.

Marketing and the Market Place

J.D. Power and Associates Reports: Identifying "At Risk" Customers is Critical for Insurance Carriers In Minimizing Defection Rates and Increasing Loyalty.
WESTLAKE VILLAGE, Calif.: 17 December 2008 - Although 85 percent of auto insurance customers indicate they are loyal to their carrier, more than one-third of auto insurance policyholders shopped for a new insurance provider, according to the J.D. Power and Associates 2008 Insurance Retention/Defection StudySM released today. Identifying those customers with a higher propensity to switch and employing the tactics needed to keep their business is critical for insurance carriers.

Business of Insurance

Kingsway Announces Cost Reduction Initiatives.
Toronto, Ontario (December 17, 2008) - As part of its strategy to return to profitability, Kingsway Financial Services Inc. today announced a number of initiatives that collectively are expected to reduce costs by approximately $20 million in 2009. Amounts are in U.S. dollars.

eBusiness and Technology

IDC Predicts Slower IT Spending Will Accelerate Adoption of Disruptive Technologies and Business Models.
FRAMINGHAM, Mass., December 4, 2008 - To no one's surprise, the global recession will be a major factor behind every trend and development in the information technology (IT) and telecommunications markets in 2009. However, IDC predicts that the financial pressures felt by IT vendors and their customers will actually accelerate the industry transformation that has been underway over the last several years.




2009 P&C Insurance Technology Conference: "Leadership: The Business-IT Imperative"


The seventh annual Insurance-Canada.ca P&C Technology Conference Monday 23 February 2009 in Toronto. December 31: Last Day for Earlybird discount on registration fee

Speakers and Topics include:

  • "Budgets, Benchmarks, Partners and Priorities for Canadian Insurance in 2009"
    Matthew Josefowicz, Director, Insurance, Novarica
    This session presents a look at emerging trends and focus areas in technology strategy for Canadian insurers and brokers. More details.

For program information, event details and all sponsors, see the conference overview.




Reference and Statistics

MIB Life Index Reports North American Life Insurance Activity Off 1.9% in November.
Braintree, MA. - (December 5, 2008) North American application activity for individually underwritten life insurance was down -1.9% in November year-over-year, according to the MIB Life Indexsm. Year to date (YTD) U.S. and Canadian activity remained stable, off -1.9% versus the same eleven months last year. November's activity was off -0.9% as compared to October 2008 activity.

Preliminary Swiss Re sigma estimates that over 238 000 people were killed by catastrophes in 2008, insured losses soar to USD 50 billion.
18 Dec 2008 - In 2008, large loss events tragically claimed over 238 000 lives. In early May, tropical cyclone Nargis struck Myanmar, killing 138 400 people, setting off one of the largest humanitarian crises in recent memory. Later in May, a devastating earthquake measuring 7.9 on the moment magnitude scale shook China's Sichuan region, killing 87 400 people and leaving over 10 million homeless. Most of the losses from these two events were not insured.

Towers Perrin Commercial Insurance Pricing Study Reports Continuing Modest Price Increases in Third Quarter of 2008.
STAMFORD, CT, December 17, 2008 - Commercial insurance prices dropped 4% during the third quarter of 2008 compared to the same quarter a year ago, according to Tower Perrin's most recent commercial lines insurance pricing and profitability trends (CLIPS) survey.

U.S. P/C Industry Achieves a Small Profit Through Nine-Months 2008 Despite Significant Deterioration in Underwriting and Investment Results: ISO.
JERSEY CITY, N.J., Dec. 16, 2008 - The U.S. property/casualty insurance industry's net income after taxes through nine-months 2008 amounted to $4.1 billion, down 91.8 percent from $50 billion through nine-months 2007. The insurance industry's overall profitability as measured by its annualized rate of return on average policyholders' surplus (or statutory net worth) dropped to 1.1 percent for nine-months 2008 from 13.1 percent for nine-months 2007, as underwriting results and investment results deteriorated.

Consumer Information

Many B.C. homeowners to accommodate guests in 2010: Insurance Bureau of Canada wants them to be properly insured.
TORONTO, Dec. 16 - British Columbia is expecting over 200,000 visitors from around the world to attend the 2010 Olympic and Paralympic Winter Games. Many BC homeowners plan on renting their homes in whole or in part to visitors. But what happens if the persons renting your home damage your property during their visit?

I.I.I. Offers U.S. Tips to Properly Insure and Care for Your Fine Art.
NEW YORK, December 11, 2008 - Regardless of whether you are purchasing your first piece of art or adding to an existing collection, proper insurance is essential in order to financially protect your investment, according to the Insurance Information Institute (I.I.I.)

Online Canadians' Inactive Accounts Could Put Them at Risk of Fraud Identity Theft : Ipsos Reid.
December 9, 2008. Toronto, ON - A new Ipsos-Reid poll conducted on behalf of Capital One has revealed that seven in ten (73%) are 'concerned' (29% very/43%) somewhat) about falling victim to identify theft through an online site, and a similar proportion (69%) are 'concerned' (29% very/40% somewhat) about the safety of their personal information being held in online accounts.

Concern over drinking and driving warranted: TIRF Poll.
OTTAWA, Dec. 15, 2008 - A new poll by the Traffic Injury Research Foundation (TIRF) reveals that a significant number of Canadians are personally affected by drinking and driving crashes, making it a real cause for concern.

Older drivers'   fatal crashes trend down; many say that they self-limit their driving: IIHS.
ARLINGTON, VA - December 16, 2008 - Despite growing numbers on the road, fewer older drivers died in crashes and fewer were involved in fatal collisions during 1997-2006 than in years past, a new Insurance Institute for Highway Safety study reports. Crash deaths among drivers 70 and older fell 21 percent during the period, reversing an upward trend, even as the population of people 70 and older rose 10 percent. Compared with drivers ages 35-54, older drivers experienced much bigger declines in fatal crash involvements. Reasons for the fatality declines aren't clear, but another new Institute study indicates that older adults increasingly self-limit driving as they age and develop physical and cognitive impairments.

from Doug:

Our two sons are here now for the holidays. We will travel to Guelph (an hour) on Christmas Day for turkey dinner with my parents and my siblings on Christmas Day, and then again two days later for a special lunch with my wife's parents. Perhaps a bit low-key, but it suits us. However you celebrate the holiday season, may you enjoy, and bring many a smile to the faces of those near and dear and stranger alike.


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