The Chronicle: Issue 2015-15, April 14, 2015

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What's Going Through The Intersection of Insurance and Technology? Wise Words of Wisdom There's a phrase I like to use to describe an overused statement that sounds better than the content it contains. I call such statements “wise words of wisdom.” I ran across something making the rounds in the social sphere which might qualify, though it sounds like profound advice for what to do next in these digital times. It was an observation that Uber owns no vehicles; Facebook produces no content; and so on. It appears to have originated in a post on TechCrunch in which Tom Godwin argues that real profit comes not from a product or service, but from the customer interface. What I interpret from this is, “Sell the sizzle, not the steak.” Consumers’ Views of Digital Insurance Distribution Strategies Digital distribution is a hot topic for insurers. The advent of new digital options, combined with new potential competitors, has increased the volume of discussion. In our experience, much of this is internally focused, with consumer preferences represented by personal preferences of insurer staff. We recently came across a white paper which focused on consumers' views of various distribution methods. Although the research is focused on the UK, we think it offers insights, as well as some counter-intuitive surprises, which raise new questions.

The Intersection an Insurance-Canada.ca Blog

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Business of Insurance

The Co-operators acquires Premier group of companies
The Co-operators and the Premier group of companies today announced that The Co-operators has acquired Premier, one of the leading full-service managing underwriting agencies in Canada. Premier's management team, including CEO Troy Moreira, will remain in place and the company will operate as an independent entity as part of The Co-operators group of companies.

CANATICS launches new tool to fight insurance fraud
There is a sophisticated new weapon in the war against insurance fraud and its name is CANATICS – Canadian National Insurance Crime Services. CANATICS analyzes pooled auto insurance industry data, using the most current tools, to identify suspicious claims that individual insurers can then investigate. As of today, the system is up and running and has begun sending alerts to member insurance companies.

Technology

Celent report: IT Spending in Insurance: a global perspective
In the report IT Spending in Insurance: A Global Perspective, Celent analyzes IT spending trends across North America, Europe, Asia-Pacific, and Latin America. The report compares and contrasts the direction of IT spending trends. The growth is spread across the regions at various levels, with North America and Latin America seeing the highest growth rates.

Consumer Information

OTLA: Ontario drivers pay excessive auto insurance rates while company profits soar
A major new study shows the need for immediate reductions in Ontario motorists' high auto insurance premiums, the Ontario Trial Lawyers Association says. The study was conducted by York University Schulich School of Business Professors Fred Lazar and Eli Prisman. The report says that the profit benchmark set by Ontario's insurance regulator, at 11 per cent return on equity, should be no more than 5.5 per cent, given today's low interest rate environment. Ontario's insurance regulator recently changed the profit cap, allowing insurers to earn even higher profits.

IBC offers top tips for reducing the risk of spring water damage
With April comes rain, and while rain gets rid of the snow and greens the grass, it can damage homes. That's why Insurance Bureau of Canada is offering Canadians its top ten tips for reducing the risk of water damage.

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