Issue 2002-30:   July 30, 2002

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.

Distribution

CSIO announces Harder Software Ltd. as a new CSIO Vendor Member.

Harder Software provides applications and consulting services for the health care and health care insurance industries. The company is currently collaborating with insurance brokerage experts to embark on a development project to create an insurance brokerage and agency management software system. More at www.insurance-canada.ca/distribution/canada/Harder200207.php

CSIO Insurance Portal

Testing and incremental progress continues on many fronts.

Economical is successful in end-to-end transaction testing. ISI loading and testing of rates and rules progresses - check the progress in our table below or at their status page at www.insurancesystems.ca/csio_status.htm - note that in most cases the rates and rules are for Ontario Auto, but in other cases other provinces and habitational information is being delivered.

On July 23, CSIO held a CSR workshop for some brokers at Applied Systems, to do one more validation of workflow, processes etc. The attendees from three brokerages were able to do hands-on. The portal was used for the evaluation, but most company's rates were artificial, except for Lombard's which were essentially live and delivered directly from the Lombard rating system. Congratulations.

Economical is back into full swing, with testing now going end-to-end for both auto and property. This allays any concerns some raised in mid-spring when their testing was deferred for a while, mostly as it turned out because they had tested everything they could do at that time. This augurs well for the company participation levels in the Portal in August and September.

Policy Management

Castek Secures $22.9 Million (US) in Series C Financing.

Castek Inc. announced a third round of external equity funding valued at $22.8 million (US), the largest private placement in the company's 12-year history and a significant endorsement of its approach to the development of products and services for the property and casualty insurance market. More at www.insurance-canada.ca/poladmin/announce/Castek200207.php

inreon Membership Grows by 100% Plus in Six Months.

Electronic trading in the reinsurance industry has gained a growing acceptance in recent months according to new membership statistics published by Internet-based trading platform inreon. More at www.insurance-canada.ca/poladmin/other/inreon200207.php

Marketing

Atlantic Canadians want government to do more to control auto insurance rates: Poll

More than one-half of Atlantic Canadians believe that changes in the current automobile insurance system are needed, which is consistent with figures reported a year ago, according to a report released today by the Insurance Bureau of Canada. The poll was conducted in June, 2002, by Corporate Research Associates of Halifax. More at www.insurance-canada.ca/market/canada/AtlCan200207.php

Manulife quarterly investor sentiment index rises - interest in fixed income, cash and balanced funds.

Canadians say they are playing it safer with their savings this summer as they shift toward more conservative investment vehicles, according to a national poll conducted for Manulife Financial, among Canada's leading insurance and wealth management companies. More at www.insurance-canada.ca/market/canada/ManulifeSI200207.php

Business as never before: DUO.

The speed of business has slowed down somewhat to a brisk walk instead of a mad .com dash. People are looking for back-up, proof, references, testimonials – basically the B to B world is risk adverse. More at www.insurance-canada.ca/market/canada/DUO200207.php

Managing Relationships

Healthcare Industry Experiencing Significant Growth in Demand for Customer Information via the Web: Kana.

KANA, the leading provider of external-facing eCRM solutions, today announced the findings of a recent survey which revealed that healthcare customers are increasingly demanding self-service capabilities to find more accurate information quickly via the Web. More at www.insurance-canada.ca/ebusiness/other/kana200207.php

Technology & e-business

FSCO issues Wind up order for Markham General Insurance Company.

Markham General Insurance Company has been ordered to wind up its business by the Ontario Superior Court of Justice, following an application made by the Superintendent of Financial Services at the Financial Services Commission of Ontario (FSCO). More at www.insurance-canada.ca/ebusiness/canada/MGIC200207.php

Accenture Research Finds that Few Companies Use Outsourcing as Strategic Business Imperative.

"An overwhelming majority of businesses are using outsourcing as a cost-cutting tactic, but few companies have embraced it as a strategic business imperative, according to new research from Accenture. The research was based on a survey of 150 senior executives at Fortune 1000 companies. More at www.insurance-canada.ca/ebusiness/other/Accenture200207.php

Reference and Statistics

A Hard Market in Real Distress, The (CIAB) Council's Second Quarter 2002 Rate Survey Shows.

The (USA) Council of Insurance Agents + Brokers released its second quarter Commercial Insurance Market Index, documenting the deep and deepening distress of the commercial insurance market. In the data for the period April - June 2002, which includes July 1 renewals — The Council's members reported rates up, capacity down, and growing use of alternative risk management mechanisms. More at www.insurance-canada.ca/refstat/other/CAIB200207.php

Skills and Careers

Robby Robbs, Vital Innovations, Receives I-CAR Founders Award for Canada.

Presented annually to the one individual in each region who most exemplifies the I-CAR Volunteer Spirit. This year’s Founders Award winner for Canada is a man of passion for the Industry, and drive for success. More at www.insurance-canada.ca/humanres/canada/ICARRobbs200207.php

from Doug:

Suffice it to say that the long hot days of summer continue, but the Pope's visit and the success by Canadians at the Commonwealth Games offset any physical discomfort. Our thoughts are with those suffering from drought and other hardships. Think about them while you enjoy the summer pleasures.