Issue 2004-41: November 2, 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.
Seminar:
"Marketing: Differentiation Through Online Services" November 17, half day, Toronto.
An additional speaker, Matthew Myers, Account Director - Partner, A.K.A. New Media Inc. will present "If you build it, they may not come" - the importance of effective communication to the success of online initiatives. Register today!
Consumer Information
Insurance Regulators Review Industry Practices.
The Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) have established a committee to ensure a coordinated national approach to regulators' review of insurance practices regarding the relationship between intermediaries and insurance companies.
Consumers' Association of Canada Calls On Canadian Governments to Protect Consumers From Secret Commissions Paid By Insurance Companies.
The Consumers' Association today called on insurance regulators across Canada to protect consumers by taking action on secret commissions paid to brokers to steer business to particular insurance companies. "Consumers suffered huge increases in auto and property insurance rates over the last year and now we know one of the reasons why", said Mr. Cran, President of the Consumers' Association of Canada.
IBAO comments on alleged hidden insurance commissions.
The Insurance Brokers Association of Ontario (IBAO) is concerned about recent allegations of "hidden" commission payments by insurance companies to insurance brokers. "Brokers have nothing to hide. Member brokers freely declare that they are compensated on both a fixed and contingent commission basis. This is standard contractual practice in the industry that rewards, as in any business, elite performance enhancing competition and service to the ultimate benefit of the consumer," says Robert J. Carter, CEO of IBAO.
Majority of Canadians have life insurance but may not keep their coverage current, RBC Insurance survey shows.
Most Canadians understand that life insurance is an important component of any comprehensive financial plan. But according to a recent RBC Insurance/Ipsos-Reid survey, while 70 per cent of Canadians have life insurance, 61 per cent of those who have coverage review it less than once a year.
FSCO Report on Ontario Auto insurance rates for first, second and third quarters of 2004.
The average cost of auto insurance in Ontario at the end of the third quarter of 2004 was 4.22% lower when compared with the end of the third quarter a year earlier. This calculation is based on the renewal effective dates of the rate changes. This compares to the 19.43% average increase reported in the third quarter of 2003 over the third quarter of 2002, and the 11.99% increase reported in the third quarter of 2002 over the third quarter of 2001.
SGI Withdraws Rate Proposal, Increases Safe Driver Discounts.
SGI has withdrawn its application to the Saskatchewan Rate Review Panel requesting approval of a 10 per cent rate increase for Jan. 1st, 2005. The decision is based on new financial information provided by SGI's external Actuary that forecasts an improved financial position for the Auto Fund.
Distribution
CSIO announces Wawanesa to Make Habitational and Auto Rates Available on Portal.
At the invitation of CSIO and IBAO, Wawanesa has agreed to work with ISI to put Wawanesa's Ontario rates on the Portal. Once the required analysis and loading of these rates has been completed, they will be available to all Wawanesa's partner brokers who are actively using the CSIO Portal.
CSIO Insurance Portal Status Update
Week ending October 29: Portage Mutual is now in production for Ont. auto rates.
Wawanesa has agreed to make their habitational and auto rates available on the portal (announced Nov 1).
The number of brokers integrated to the portal has increased by four over the last two weeks to 115.
Transformation Station Transactions Skyrocket As Agencies, Companies Embrace Real-Time: Applied Systems.
Soaring higher and faster every day, the volume of real-time interface transactions processed through IVANS Transformation StationT (TS) is on a pace to break the 2 million-transaction barrier by mid-December, according to Applied Systems, Inc., developer of the TS technology.
Diversified Wins DALBAR Seal of Excellence for its Enrollment Kit.
DALBAR, Inc. announced today that Diversified Investment Advisors was awarded the DALBAR Seal of excellence for its retirement plan enrollment kit. The Seal is awarded to outstanding enrollment kits that effectively and efficiently meet the needs of retirement plan participants. Before awarding the Seal, DALBAR conducts a series of tests on the enrollment kit to establish that it meets the principal objectives of its audience.
Business of Insurance
Sun Life Financial to establish holding company for its asset management businesses.
Sun Life Financial Inc. (NYSE/TSX: SLF) and its wholly owned subsidiary, Sun Life Assurance Company of Canada (Sun Life Assurance) today announced that their Boards of Directors have approved, subject to receipt of regulatory approvals, a reorganization plan under which most of Sun Life Assurance's asset management businesses, including its U.S. annuities business, will be transferred to a newly incorporated subsidiary of Sun Life Financial Inc., effective January 4, 2005
(From Canadian Insurance E-NEWS:) Ontario's New Personal Health Information Protection Act will Restrict Disclosure to Insurers.
The Personal Health Information Protection Act (PHIPA), takes effect November 1. It will govern the collection, use and disclosure of personal health information. The office of the Information and Privacy Commissioner will be the oversight agency for the new law.
Marketing
Majority (70%) Of Canadians Have Life Insurance, However Only 37% Review It At Least Once A Year: Ipsos-Reid Survey.
According to a survey conducted by Ipsos-Reid, on behalf of RBC Insurance, 70 percent of Canadians indicate having life insurance. Of those, nearly half (48%) purchased the coverage on their own, one-quarter (26%) say they have coverage both at work and on their own, and 24 percent say they only have coverage through work. However, less than half (37%) of those with coverage say they review it at least once a year.
Eastbridge research report - "The 21st Century Employer - Redefining the Benefits Business.
The benefits world is changing. Employers have been juggling the demands (and inconvenience) of three different enrollment and servicing systemsemployer-paid, voluntary, and retirement productsfor years.
Retirement: Managing Expectations: Ipsos-Reid Survey for RBC Financial.
Two-thirds (63%) of Canada's retirees agree with the statement that "since retiring, managing my cash flow has been the top priority" according to a new Ipsos-Reid study conducted on behalf of the RBC Financial Group. And half (47%) of retirees agree that "since retiring, I have not been able to enjoy the lifestyle I was accustomed to".
Reference and Statistics
October Issue of ci-Canadian Insurance magazine : Specialty Focus on Prize Indemnity Insurance.
ci -Canadian Insurance magazine's latest issue is on the street, with Specialty focus on Prize Indemnity insurance. If you are not already a subscriber please visit www.cdnins.com to sign up and experience our award-winning editorial firsthand. This month's issue also features: In Tune With the Future - we speak with David Hare as he steps into IBAO's top spot.
Canadian Economic Outlook October 2004: SwissRE
Canada's economy has been an oasis of calm in the face of pessimism about the global economy. Retail sales and manufacturing shipments have hit record high levels. Full-time employment growth has been strong, and the Ivey Purchasing Managers' Index (PMI) increased to 66.0 for September, a rise of 11.1% over the previous year. These factors will likely push economic growth to 3.6% this quarter. However, this is probably the peak for growth.
Third Quarter USA Commercial Premiums Continue to Drop: CIAB.
Commercial property/casualty insurance premiums continued to decline significantly during the third quarter of this year, with two-thirds of all large and medium accounts experiencing drops of up to 20 percent and an additional 11 percent of large accounts seeing premiums down between 20-30 percent.
from Doug:
Hallowe'en was a pleasant evening, with throngs of children - young and not so young - on the streets around our home. I think a lot of outsiders come here because the houses are so close together that they can make a lot of visits in shrot order. I handed out candy to about 325 - 350 kids in an hour and twenty minutes, by which time the hoard for me was gone too.