Issue 2004-3:   January 20, 2004

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.

Marketing and the Market Place

The Co-operators Unveils New Brand Campaign.

The Co-operators has unveiled a new brand campaign, a national program focusing on the unique history of the largest, wholly Canadian-owned multi-product insurance company.

Manulife Investor Sentiment Index shows Canadian investors remain positive through the past five years.

Canadians generally remained consistently positive about investing during the past five years, regardless of the political or economic climate -- and display an unwavering focus on property, registered retirement savings and educational savings plans, according to national polls for Manulife Financial, one of Canada's leading insurance and wealth management companies.

DALBAR Study Highlights ERISA Flaws; Ways to Improve Savings.

DALBAR released the results of its 2003 study of methods to improve retirement income security through increased saving rates. The study identifies hurdles to adequate savings and recommends actions to increase these rates. Among its findings is the method for employees to painlessly increase retirement savings and leapfrog over the restrictions of qualified plans.

Technology and e-Business

Information Builders and SOLCORP Announce Strategic Marketing Agreement.

Information Builders, the leader in enterprise business intelligence (BI) and real-time Web reporting, and SOLCORP, a leading provider of software solutions to the life insurance and financial industries, today announced the signing of a strategic marketing agreement. The partnership will enable SOLCORP clients to leverage Information Builders' industry-standard business intelligence and reporting solutions to address a range of critical business issues, including compliance with anti-money laundering legislation.

New TowerGroup Research on Insurance Software Vendors.

Generic software vendors used to push products and leave insurance customers with the task of determining how to derive business value from them. For vendors, the traditional business model is shifting away from customers buying products to customers buying services.

CSIO Insurance Portal Status Update

Week ending January 16: For Ontario auto rates, both Pilot and Western have signed off and are ready to go live. Otherwise work continues on preparation for the rollout.

Business of Insurance and Products

New Income Trust Funds Broaden Segregated Fund Options Offered By National Life.

Investors seeking consistent long-term returns, decreased volatility and investment diversity can now strengthen their portfolio with the NL Income Conglomerate Fund and NL Real Estate Income Fund, two new income trust funds added to National Life's family of segregated funds.

Manulife Investments offers new Market Growth GIC.

Manulife Investments is launching a new innovative Market Growth investment option for its Guaranteed Interest Contracts (GICs) sold through independent financial advisors across Canada.

Jefferson Pilot Financial to Acquire Canada Life's U.S. Group Insurance Business.

Great-West Lifeco Inc. announced today that Jefferson-Pilot Corporation has agreed to purchase the U.S. group business of its indirect subsidiary, The Canada Life Assurance Company. The transaction is expected to close during the first quarter of 2004, subject to regulatory approvals.

GartnerG2 Says Linking Strategy-Aligned Change With Business Process Fusion Reduces Risk and Improves Returns.

As the pace of change in business increases, business risk is compounded by unaligned and rigid IT infrastructure. However, enterprises that incorporate business process fusion will see increased IT infrastructure flexibility that improves returns and risk, according to GartnerG2, a research service from Gartner, Inc.

Reference and Statistics

Decemberīs 4.7% Increase in North American Life Insurance Activity Lifts Fourth Quarter Results: MIB.

Aggressive year-end sales efforts by North American life insurers buoyed 2003 year-end results with December application activity showing a 4.7% year-over-year increase according to the MIB Life IndexSM. December application activity in the U.S. and Canada increased 4.9% and 3.5% respectively compared to the same period last year.

Claims

Vanderbilt and Accenture Launch Healthcare Industry Collaboration Initiative.

The Vanderbilt Center for Better Health (VCBH) and Accenture today announced that they are launching a research-based effort aimed at helping the global healthcare industry find ways to use information more effectively to increase collaboration. To anchor this program, the organizations will conduct research and create an endowed faculty chair at VCBH.

Consumer Information

Term Insurance& For Life - by Ivon T. Hughes, Hughes Trustco

Now you can get term insurance that offers coverage for life, that has flexible payment options and selected features of Universal Life, but at 12-15% less cost than Universal Life insurance.

from Doug:

After getting my chilled limbs warmed over the weekend, we are back into a colder spell again. Last week's snow was rare for Toronto - so light and powdery. Reminded me of trips to real ski country in BC - that's Before Children, who have never really been interested in skiing. Whatever your inclination, do hope you are enjoying the winter activities.

Number two son has his first driver's ed lesson this evening after doing the classroom course at the Christmas break; Number one son has his G2 exit test on Friday.