Issue 2002-42:   October 22, 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

Standard Life - More Options for Your Retirement Now Available in Canada.

As baby boomers approach retirement age, they can't help but face the fact that they are going to live much longer than previous generations. Upon retirement at 65, the probability of surviving to age 90 is 32% for single women, 20% for single men and a whopping 45% for one member of a couple.(*) The prospect of not having enough money to live on, or outliving retirement savings, is a growing concern. More at http://www.insurance-canada.ca/distribution/canada/StandardL200210.php

Business Succession Planning—How Prepared Are You? CAIFA.

"The value of a financial advisor’s practice can be maximized by putting in place a well-thought out succession plan" says Sandra Foster, President of Headspring Consulting Inc. Headspring Consulting Inc. asked a series of questions related to succession preparedness; Sixty-eight per cent of respondents had Fifty per cent of planners indicated they had no succession plan. More at http://www.insurance-canada.ca/distribution/canada/CAIFASucsn200210.php

A Summer Garden: For the Broker’s Eye, by Doug Grant. (Notes from Insurance-Canada.ca's August Brokers' Seminar) The days are just starting to noticeably shorten, the fresh garden produce is abundant, and the CNE is in full swing. Insurance-Canada.ca’s third annual summer seminar focusing on brokers’ use of technology brought a great group of speakers representing firms from all aspects of the industry. The trend is back to basics. Herewith a few blossoms from the garden. Article at http://www.insurance-canada.ca/distribution/canada/ABBroker200210.php

CSIO Insurance Portal Status Update

Week ending October 18. Some non-technical issues are still being resolved. CGU, Traders and Royal & SunAlliance rates have been loaded into Production. During the week of Oct. 21 the three brokers who are registered to the Portal will be given access to these rates. Pembridge has signed off on their Ontario auto rates and those will be loaded soon. The Ontario Property rates and rules for Dominion have been loaded into the POrtal staging area and Dominion has begun User Acceptance Testing. Rates and Rules for other companies are now being loaded by ISI.

The French User Interface has now been loaded into the Production Environment meaning that when a broker uses the system, they can choose either French or English as their interface. At the CSIO Board meeting last Friday, one of the Maritime Provinces was selected as the next Province to be implemented and companies are being asked to submit both auto and property rules and rates to ISI now.

Technology and e-Business

LienQuest.com/Insurance Search Bureau of Canada partnership promotes easy access to motor vehicle lien and status checks.

Insurers and lenders can now enjoy the convenience of ordering LienQuest.com motor vehicle lien and brand search reports through Insurance Search Bureau of Canada, the country’s largest on-line source of insurance-related documentation. More at http://www.insurance-canada.ca/ebusiness/announce/ISBCLienQ200210.php

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Grand Opening of IBM Services Centre for Insurance and complimentary Breakfast Seminar for Insurance executives "Managing Your Application Portfolio" featuring IBM Strategist George Kivel and VP Katie Bambrick.

Toronto Bloor and Yonge, Nov 7, 8:00 am
In Waterloo, Albert and Columbia, Open House at 4:00 pm

For speaker and other details, and registration information see http://www.insurance-canada.ca/ebusiness/announce/IBMSem200210.php

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ACORD XML Standards in US Insurance Could Save over US$250 Million Annually: Celent.

Celent's new report, ACORD XML Standards in US Insurance, finds that the US insurance industry is increasingly embracing ACORD XML. "Carriers surveyed by Celent either expected to achieve or had already achieved integration efficiencies on the order of 20%-30% by using ACORD XML standards," says Matthew Josefowicz, a senior analyst at Celent and author of the report. "If embraced universally throughout the US insurance industry, the use of standards could save the industry over US$250 million in technology costs annually." More at http://www.insurance-canada.ca/ebusiness/other/Celent200210.php

Manulife Financial acquires CMG Philippines from Commonwealth Bank of Australia.

Manulife Financial has entered an agreement to acquire the life insurance and pension & education operations of CMG Philippines from Commonwealth Bank of Australia, subject to regulatory approval. The transaction, which includes more than 60,000 in-force life insurance policies and pension & education savings plans, will enhance Manulife's current position in these sectors and realize its strategy of becoming a major player in the pension & education industry. More at http://www.insurance-canada.ca/ebusiness/canada/ManulifePh200210.php

Marketing

Manulife Financial Poll finds Canadians holding their course, optimistic about long-term savings goals.

Seven out of 10 Canadians say they are holding steady with their investment strategies in the midst of recent market turmoil, according to a national poll conducted for Manulife Financial, among Canada's leading insurance and wealth management companies. More at http://www.insurance-canada.ca/market/canada/ManulifePoll200210.php

Progressive.com Takes Top Honors in WMA WebAward Competition.

Progressive.com, the Web site of Progressive Insurance, has been named “Best Insurance Web site” in the Web Marketing Association’s (WMA) 2002 WebAward Competition based on an expert panel’s review of criteria including innovation, navigation, interactivity, content, ease of use and usefulness to target audience. More than 1,300 sites were judged in the competition. More at http://www.insurance-canada.ca/market/other/ProgressiveWMA200210.php

What Do Online Bank Customers Want? eMarketer.

By David Hallerman: What bank customers do online and what they want don’t always converge. The US consumer wish list ranges from advice to insurance but stays within financial bounds. Last year’s American Bankers Association poll points to the popularity of advice. Three types of advice -- financial planning, investment and retirement planning -- are among the products and services consumers listed highly as “likely to purchase” from US banks. More at http://www.insurance-canada.ca/market/other/eMarketerBanks200210.php

Statistics and Reference

Conning Research: USA Property – Casualty Insurers’ Results Improving . . .Slightly.

The U.S. Property-Casualty insurance industry outlook is improving, but not dramatically, according to Conning Research and Consulting, Inc. Premium growth is significant, but income and return on equity are projected to improve only modestly over the next two years. More at http://www.insurance-canada.ca/refstat/other/ConningPC200210.php

from Doug:

As those of us at the "Marketing Insurance: A Technology Boost" seminar Friday past learned, marketing has a very broad scope indeed, and the opportunities to apply automation to components of marketing are legion. The communications and computing advances are adding to the complexities and sophisticated techniques that can be deployed. Relative to so much of what we heard, Insurance-Canada.ca promotion to insurance professionals or consumers looks like a very simple and low-investment decision. Watch for details of our "Knowledge Management" seminar on December 3.