Issue 2004-45: November 30, 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.
Consumer Information
Protecting your employees: What to look for in a comprehensive benefits package -- RBC Insurance.
Today's employees are looking at more than just a competitive salary when choosing a company to work for. Benefits, work-life balance and career development opportunities are also important. Many companies see their employees as their most valuable asset and a comprehensive benefits package is an effective way to attract and retain skilled staff.
Incredible things people do while committing insurance fraud: Progressive group of insurance companies.
People may think they're being clever when they try to cheat insurance companies, but often they end up making mistakes that get them caught, injured, and sometimes even killed. The Progressive group of insurance companies says that, while the escapades of people who commit fraud can be amusing, insurance fraud is a serious crime that costs consumers a lot of money.
Distribution
CoVirt Releases VirtGate Version 6.0 with Enhancements Solidifying Its Dominance as Canada's Life Insurance Industry Commerce Solution
CoVirt announced the next major release of VirtGate today with enhancements to the VirtGate backbone that solidifies VirtGate's already dominant position as Canada's national life insurance industry commerce solution. Tim Fitzpatrick, President of CoVirt, hit the highlights, "While over 100 small and medium size features are added each year to VirtGate, every so often CoVirt announces a major new release.
Annual Eastbridge study explores the worksite market of the future.
The worksite market has changed and grown significantly over the past several years. But what does the future hold? What new challenges will the market face in the near future? What changes will we see (in products, distribution, technology, administration, enrollment, etc.)?
The Council - CIAB - Disputes Characterization of Broker-Carrier Relationship as Adversarial.
The Council of Insurance Agents & Brokers said today it is "misguided" to presume that brokers and insurance carriers must be in an adversarial relationship to best serve their commercial customers. In testimony prepared for delivery before a Senate subcommittee, Albert R. Counselman, president and CEO of Riggs, Counselman, Michaels & Downes in Baltimore, MD, said the commercial clients benefit from a strong relationship between broker and carrier that helps identify most appropriate coverage for the risk being insured. He said a policy with the best price is not always the best protection.
CSIO Insurance Portal Status Update
Week ending November 26: Germania Mutual is now live for auto rates;
Both Echelon and Hamilton Township Mutual have agreed to implement auto rates;
For the Quebec rollout, development has been completed and a date for CSIO and company testing to begin is to be determined;
The number of brokers integrated to the portal has increased by one this week to 120, and the backlog of those who have applied and are in process has grown to 40.
Business of Insurance
Voting Policyholders of Manufacturers Life, Maritime Life and MFC Insurance, and Shareholders of Maritime Life, approve plan to combine Canadian operations.
TORONTO, Nov. 24, 2004 - The Manufacturers Life Insurance Company, The Maritime Life Assurance Company and MFC Insurance Company Limited today received overwhelming support from their respective voting policyholders and Maritime Life's shareholders to combine their current operations into a single Canadian life insurance organization under the name "The Manufacturers Life Insurance Company".
From Canadian Insurance ENEWS: Canadian Insurers More Optimistic than US Counterparts
81 per cent of Canadian insurers see the industry's ability to increase margins over the next one to three years as strong to moderate, compared to 65 per cent of US respondents according to the results of a survey conducted at KPMG's 13th Annual Insurance Issues Conference 2004.
Marketing and the Market Place
On-Line P&C Insurance Marketing and Sales: From Exposure to Service - an Insurance-Canada.ca White Paper.
This paper explores the current environment of on-line sales and marketing and supports the thesis that insurers are moving through a model which begins with simple on-line presence, and moves to straight through processing from the consumer, through intermediaries, to insurers.
J.D. Power and Associates Reports: Enterprise Ranks Highest in Rental Car Customer Satisfaction.
Enterprise ranks highest in satisfying rental car customers, according to the J.D. Power and Associates 2004 Rental Car Satisfaction StudySM released today. The study, now in its ninth year, measures customer satisfaction among business and leisure customers who rented a car at or near an airport. The Internet continues to have a growing impact on the way customers make reservations for their car rental. The study also finds that fewer than one in five customers purchase any form of optional coverage when renting a car. Among the optional coverage offered, 19 percent purchase personal accident insurance, while 17 percent purchase a loss damage waiver.
The Changing World Of Business: Ipsos-Reid/KPMG.
According to a new Ipsos-Reid/KPMG survey of Canada's top financial executives, companies in Canada today are facing an unpredictable business environment where reacting to and anticipating change is a necessity. The unpredictability of the Canadian business environment is very evident when companies are asked how many "unplanned" major business projects they have undertaken over the last two years.
A DALBAR Letter to America – Practical Solutions to Social Security.
The frenzied debate over the future of Social Security has been overpowered by the extremes. Overblown consequences and inflated costs have stymied progress and been translated into utter failure to take meaningful action to solve what is a manageable problem. The manageable problem is that while the system is funded for several years, the current demographics will not support it indefinitely. The meaningful action is to alter the system so as to preserve all benefits for current recipients while putting it on sound financial footing for the future.
Policy Management
IBM to acquire Liberty Insurance Services from RBC Insurance.
IBM and RBC Insurance today announced that IBM has agreed to acquire Liberty Insurance Services Corp. (LIS), the U.S. business process services and solutions operations of RBC Insurance. This acquisition will establish IBM as a leader in life insurance and annuity processing and administration, both in North America and globally. Financial terms of the deal, expected to close by December 31, 2004, were not disclosed.
Speed-to-Market Seminar January 19, 2005, Chicago: InSystems.
Speed-to-market and operational efficiency are top priorities for insurers, however only a small percentage of them have harnessed automated solutions to improve speed-to-market and automate the state filing process.
Sapiens is Recognized as a Leading Vendor in the Global Life Insurance Solutions Market.
Sapiens International Corporation N.V., a worldwide provider of insurance technology solutions, announced that it has been recognized as a leading vendor in the Global Life Insurance Solutions market in a new report entitled "Policy Administration Systems in Global Life Insurance" published by Datamonitor.
Reference and Statistics
Canadian Economic Outlook November 2004: SwissRe.
Canada's economy performed surprisingly well in face of a global slowdown. Real Gross Domestic Product (GDP) for August grew 0.5% over the previous month, ahead of an expected 0.3%. Growth in July was revised upward to 0.2% from 0.1%. The Ivey Purchasing Managers' Index (PMI) was at 56.5 for October, indicating solid growth. These positive indicators pushed the Canadian dollar up 5.3% in the past month to a value of USD 0.84, a level not seen in over a decade. Real GDP growth will surprise at 3.0% this year and 3.4% in 2005.
Insurance in the Community
2004 National Caregiver Award Recipient Honoured: Allianz Canada.
Jeanne Composano, a 69-year-old Niagara Falls grandmother, has been honoured as the 2004 Allianz Canada National Caregiver Award recipient. The award, along with a cheque for $10,000, was presented by Roger Randall, President and CEO of Allianz Canada, in a special ceremony in Jeanne's home on November 23.
Manulife named title sponsor of Eighth Annual Dragon Boat Festival.
The Eighth Annual Dragon Boat Festival is pleased to welcome Manulife Financial as the new title sponsor of the event. Manulife's sponsorship will not only help the Festival to continue promoting active living in Nova Scotia, but also demonstrates Manulife's commitment to supporting the communities in which its employees live and work.
from Doug:
Traveling around Ontario has now ended for a while with a bit of a respite until the boys come home in mid-December from University. Outdoor chores are being addressed but haven't even thought about Christmas yet - hope you aren't one of the procrastinators!