Issue 2003-40: October 7, 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.
Business of Insurance
Manulife Financial Corporation and John Hancock Financial Services to Merge in Cdn$15 billion transaction..
Manulife Financial Corporation and John Hancock Financial Services, Inc. today announced that their Boards of Directors have each unanimously agreed to a tax-free, stock-for-stock merger of the companies, creating a leading global insurance franchise, valued at Cdn$34.7 billion (US$25.6 billion) based on closing stock prices on September 24, 2003.
National Life and Norshield launch Global Trading Fund.
National Life, a strong performer in the insurance and financial industry, and Norshield Financial Group ("Norshield"), an established leader in the management of fund of hedge funds, today introduced the National Life Global Trading Fund. This Fund seeks to anticipate changes in global economies and make investment decisions to take advantage of these emerging trends.
Claims
Federated Insurance contributes to IBC's growing arsenal to battle insurance fraud.
In an effort to fight organized insurance fraud, Federated Insurance Company of Canada is transmitting weekly claims data to Insurance Bureau of Canada (IBC) by means of ACE batch submission. "Increased access to quality claims data is needed to fight organized insurance fraud," says Rick Dubin, Vice-President, Investigations, IBC. "When key information is shared and analyzed by investigators and IBC's crime analyst, the insurance industry only stands to benefit from collective anti-fraud efforts," he adds.
Policy and Product Management
Sun Life Financial's GRS business to administer Falconbridge savings and profit sharing plans.
Sun Life Financial Inc.'s Canadian Group Retirement Services (GRS) business has been awarded administration of the Capital Accumulation Plans for Canadian-based employees of Falconbridge Limited, effective November 30, 2003. This agreement covers 2,500 employees located at Falconbridge's corporate office in Toronto, its operations in Sudbury and Timmins, Ontario and its Raglan operation in northern Quebec.
Distribution
Global IQX Inc. selected by the Principal Financial Group.
Global IQX Inc., a leading provider of Single Entry Multiple Carrier Interface (SEMCI) portal software for the North American life and health insurance industry, today announced a key licensing agreement with the Principal Financial Group. The Principal Financial Group will implement Global IQX's sales and distribution software with its group insurance products, nationwide. This technology will enable The Principal® to provide their respective distribution channels with the ability to perform online, real-time quotes.
CSIO Insurance Portal Status Update
Week ending October 3: Once again, nothing new for those things we report this week. Many who have been working on property rates, have been redirected to work on new auto rates in response to edicts from several provinces.
Statistics and Reference
Canadian Economic Outlook, September 2003: SwissRe.
Recent indicators have disappointed, but still point toward moderate growth. Strong imports reduced real GDP growth in the second quarter. Though expected to rebound, the weak labor market represents a risk to the economic recovery. Domestic demand has remained healthy over the past few quarters. Business investment should support growth over the next few quarters. After cutting rates on September 3rd by 25 basis points, the Bank of Canada will be on hold until mid-2004. Canadian long-term interest rates will rise through year-end. The Canadian dollar will continue to appreciate over the long-run.
Strong Six-Month Underwriting and Investment Results Contribute to U.S. Property/Casualty Industry's Continuing Recovery: ISO.
The U.S. property/casualty industry's net income after taxes rose to $14.5 billion in first-half 2003 from $4.4 billion in first-half 2002, as both underwriting and investment results improved. Reflecting the industry's income and unrealized capital gains on investments, its surplus, or statutory net worth, increased 9.9 percent to $312.5 billion at June 30 from $284.3 billion at year-end 2002, according to Insurance Services Office, Inc. (ISO) and the National Association of Independent Insurers (NAII).
Consumer Information and Politics
Nova Scotia Delivers Lower Rates, More Protection for Auto Insurance Consumers.
Drivers in Nova Scotia will receive the auto insurance rate relief and increased protection they've been looking for with new legislation introduced today, Sept. 26, by the provincial government. The legislation reduces auto insurance premiums by 20 per cent effective Nov. 1. The legislative reform also provides better protection, fairness and options for the consumer.
New Brunswick Releases consultation paper on public auto insurance.
New Brunswickers will be better able to make an informed decision about the question of public auto insurance with the release of a consultation paper on public auto insurance. Justice Minister Bradley Green presented the paper today in Fredericton to New Democratic Party leader Elizabeth Weir, who was appointed chair of the Select Committee on Public Auto Insurance by Premier Bernard Lord.
Workers' Compensation Board Recommends Changes to Nova Scotia's Workplace Safety and Insurance System.
Following extensive consultation with workers and employers across the province, the Board of Directors of the Workers' Compensation Board of Nova Scotia is recommending that Government make changes to the Workplace Safety and Insurance System during the Fall 2003 sitting of the Legislature. The recommendations flow from the Nova Scotia Workers' Compensation Program - A Focused Review (Dorsey Report, March 2002).
Insurance is there to help in Hurricane Juan's wake: IBC.
Insurance Bureau of Canada is reassuring consumers throughout Atlantic Canada that their property insurance will respond to storm-related damage caused by Hurricane Juan. Most homeowner and automobile policies will cover damage caused by windstorm, including broken windows. Additionally, sewer backup may be covered by special policy coverage.
Insurance and People in the Community
Transamerica Life Canada honoured for contributions to Canadians with physical disabilities.
Transamerica Life Canada has been acclaimed as a leading supporter of Canadians with physical disabilities by Ontario March of Dimes (OMOD). Transamerica was inducted as a Pioneer member of the OMOD Jonas Salk Circle, which recognises "those whose major contributions demonstrate courage and make an investment supporting OMOD's capacity to surmount a major challenge facing people with disabilities".
Managing Relationships and Customer Service
DWL and Eontec Announce Alliance to Deliver Comprehensive Customer Banking Solutions.
DWL, the leader in Enterprise Business Services software, and Eontec, the leading global provider of multi-channel customer banking solutions, today announced they will jointly offer customer-centric, multi-channel solutions to the financial services industry. Eontec and DWL will offer the industry's first J2EE"-based, services-oriented architecture to provide a single version of customer truth and once and donecustomer processing to all channels. The joint solution will enable banks to improve customer service and sales productivity through call center, Internet and branch networks.
from Doug:
What a challenging year it has been for many Canadians from hurricane to fire, from SARS to one mad cow, to any number of more personal losses. And yet for most of us, there is much to be thankful for. Amidst the feasting and fun of Thanksgiving weekend, do take a few moments to think about all those things we really under-appreciate most of the time - family, friends, quality of life, standard of living, health.....and give thanks, each in our own way.