Issue 2003-29: July 22, 2003
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.
Reference and Statistics
North American Life Insurance Activity Turns Positive Suspending Eight-Month Downturn: MIB.
Applications for life insurance in North America increased 2.7% in June halting eight months of consecutive declines in application activity and notably marking June's first year-over-year activity increase since 1999 according to the MIB Life IndexSM. June's application activity increased 2.8% in the U.S. and 2.2% in Canada on a year-over-year basis.
Marketing Insurance and the Market Place
Manulife Investor Sentiment Index shows Canadians continue search for security amid market swings.
Despite a slight easing in their hot pursuit of real estate, Canadians are keeping up their search for more secure investments, according to a recent national poll for Manulife Financial, among Canada's leading insurance and wealth management companies. The 18th quarterly Manulife Investor Sentiment Index, based on a national survey conducted in mid-June, suggests fixed investments, cash and real estate remain among favourite investment destinations this summer, while interest is recovering for mutual funds and equity markets.
US Retail Investors Keeping Money out of the Markets and Under the Mattress: TowerGroup.
In recent years the securities industry has lost its most prized possession: the client's trust. Retail investors have moved their money to the sidelines in droves, reeling from crises in corporate governance, a continuingly fragile economy and geopolitical instability. This has left the securities industry wondering just what will lure those assets out from under the mattress and back into the markets.
CSIO Insurance Portal Status Update
Week ending July 18: The number of brokers connected remains at 28.
ING has now moved into User Acceptance Testing for Ontario Property.
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Business of Insurance
Transamerica strengthens guaranteed TOP(TM) Managers Portfolios with new fund partners and underlying funds.
Transamerica has reinforced its popular guaranteed TOP Managers Portfolios with the addition of two proven fund partners and a group of carefully selected mutual funds. Value specialists Brandes Investment Partners and global powerhouse Franklin Templeton Investments have joined the compelling TOP third-party fund management line-up.
Unique Manulife One mortgage now available with only 10 per cent down.
Consumers with high-ratio mortgages can now take advantage of the most innovative mortgage product in Canada. Manulife One, the first flexible mortgage account in Canada, is now available to mortgage holders and new homebuyers with as little as 10 per cent down payment.
Distribution
Whose Advice Can You Trust? Advocis Embarks on Campaign for Regulatory Reform.
Designations matter. That's the overwhelming message behind Advocis' efforts to effect regulatory change for Canada's professional financial advisors. "Whether it be in insurance, securities, or mutual funds, the role of advice and advice givers is not recognized," said Steve Howard, Advocis president and CEO. "Yet, it is advice that convinces consumers that they should be purchasing those products. None of the governing regulations for these disciplines recognizes the role of advice, nor does doing so appear to be on the regulators' agenda."
Asset Management Companies Shift Focus From "Product Push" to Profitability: kasina.
kasina, a management consulting firm for the financial services industry, has released its "Intelligent Distribution: Targeted Interactions for Increased Profitability" study, the company announced today. The whitepaper identifies effective distribution practices in the asset management industry and notes that the shift from a "product push" approach to one of Intelligent Distribution is a sign that the industry is at a crossroads with regard to product distribution.
New Insurance Consumer Information
Canadian solution to rising insurance rates is reducing crashes in the US: I Promise Program.
While automobile insurance rates see double-digit increases, a Canadian initiative has been busy reducing costs at source by preventing car crashes and hence removing costs associated with claims. The I Promise Program - teen safe driving initiative is a Canadian solution to the problem of teen driver safety increasing in popularity in the US. Teen driver car crashes are the leading cause of permanent injury and death in this group - a fact costing insurers millions of dollars annually and immeasurable suffering to parents.
Human Resources, Skills and Training
E-Learning Gains Momentum: eMarketer.
According to eMarketer's new E-Learning report, comparative estimates for corporate e-learning revenues show some cohesiveness at around $6 billion to $7 billion in 2002. "Like many sectors spawned from the emergence of the Internet, it has suffered the slings and arrows of outrageous forecasts, but all indications now point to a growing and vibrant sector," says eMarketer Senior Analyst Ben Macklin.
Technology and eBusiness
Providence Washington Case Study: Managing Technology Innovation: Celent.
Providence Washington Insurance is solidifying its position as a carrier of choice for its independent agents with its intelligent e-commerce initiatives. The company's experience suggests that having a clear vision and picking the right tools can deliver results without breaking the bank.
Managing Relationships and Customer Service
DWL Announces Customer Management and Self-Service Transactions To Insurers Using IBM WebSphere Portal.
DWL, the leader in enterprise business services software, today announced it plans to deliver comprehensive customer management and self-service transactions for the insurance industry through tight integration with IBM WebSphere Portal Server to help create a customer focused on demand workplace.
from Doug:
Had a great family weekend. Took my parents to a Warner Family (my Mum's side) reunion near Cornwall at Newington/Osnabruck Centre. It was our first time attending and we met many a cousin. The Warners were some of many who settled there in 1784 as Loyalists following the American Revolution. Also saw my father's Gr Gr Grandfather Alexander's gravestone a little further east in South Lancaster - he had come from Scotland directly in early 1800's, but married a Sutherland, who was the daughter of a Loyalist as well. Summer is a great time to go exploring, near and far. Enjoy.