Issue 2005-10: March 8, 2005
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
Health Costs to Rise at Double-Digit Rates for Canadian Employers, Says Mellon Survey.
TORONTO, February 23, 2005 A survey of major Canadian group health insurers shows that cost increases for prescription drugs provided under employer-sponsored health care benefit programs will continue at double-digit rates in 2005, although the increases are slowing. Insurers expect high level cost increases for 2005 at 15.13%, down from their estimate of 15.6% for 2004.
Distribution
ConnectInsure adds RFPs to all carriers: Global IQX Inc.
OTTAWA, Ontario – March 1, 2005 – Global IQX Inc., the leader in integrated e-business automation solutions for the group life and health insurance industry, today announced the addition of a new dimension, named Specs Direct, to its ConnectInsure online quoting, comparison and enrolment service for insurance professionals.
Benefit Point, Inc. Integrates with Applied Systems to Exchange Data for Employee Benefits and Property and Casualty Insurance.
San Francisco, CA – February 23, 2005 – In a continuing effort to provide its brokerage and consulting firm customers with the best solutions for customer relationship management and procurement in the highly competitive insurance market, BenefitPoint, Inc. announced today it is rolling out a complete Web services integration with Applied Systems' TAM (The Agency Manager ®) and Vision agency management systems.
CSIO Insurance Portal Status Update
Week ending March 4, 2005:
The number of brokers integrated to the portal increased by three last week to 156.
The backlog of brokers being implemented is 52.
The Aviva companies (Aviva, Scottish and York, Traders and Pilot) and the Economical Group (Economical and Waterloo) implemented guaranteed rates for auto and hab last week. They join Axa with both lines and North Waterloo with hab.
Managing Relationships and Customer Service
Capitalize on Compliant Communications: Minimize Risk - Maximize Relationships: InSystems Webinar.
Markham, Ontario, March 1, 2005 – Compliant documents are integral to an insurance organization's corporate governance strategy, especially as regulatory compliance becomes a higher business priority. But achieving compliant communications is also an opportunity to build relationships through the personalization of letters while reducing corporate risk by improving control of the content and approvals tracking within the enterprise.
Manulife Financial guarantees principal recovery to clients referred to Portus by Manulife Securities International.
Manulife Financial guarantees principal recovery to clients referred to Portus by Manulife Securities International TORONTO, March 3, 2005 - Manulife Financial Corporation today released a letter from its President and CEO, Dominic D'Alessandro to clients of advisors licensed by its subsidiary Manulife Securities International Ltd. (MSIL) who were referred to the financial products of Portus Alternative Asset Management Inc. In the letter, Mr. D'Alessandro reassured MSIL clients that Manulife would guarantee the recovery of 100 per cent of their principal invested.
eBusiness and Technology
TiG and IBM Enter Five Year Agreement to Create a Client-focused Global Delivery Centre.
1 March 2005 -- The Innovation Group, which specialises in providing technology based business services to the global insurance community, its customers and suppliers, today announces it has entered into a five-year agreement with IBM to create a client-focused global delivery centre and strengthen client site capabilities. Through this initiative, IBM and TiG will more tightly coordinate worldwide delivery capabilities, significantly improving client deployment effectiveness as well as increasing the availability of process-driven business solutions for the global insurance industry.
Data Standards, Financial Reporting Focus of Joint ACORD, XBRL White Paper.
PEARL RIVER, NY - 24 March 2005 - ACORD (www.acord.org) and XBRL (www.xbrl.org) examine the need for data standards and their own roles in the overall communications flow in their newly released white paper -- XML Standards and the Insurance Value Chain. The document focuses on the flow of data within the insurance value chain and the importance of data standards to transport the information along the path for financial reporting and regulatory compliance.
Business of Insurance
Western Financial Group Announces Closing of Federated Life Acquisition.
HIGH RIVER, Alberta – February 28, 2005 Western Financial Group Inc. announces that it has closed the previously announced acquisition of Federated Life Insurance Company of Canada, a federally regulated life and health insurance company for an aggregate purchase price of $20 million. "The acquisition of Federated Life substantially completes the integrated financial services product line that Western Financial Group has been building since 1996," says Scott Tannas. Federated Life has been renamed Western Life Assurance Company.
Industrial Alliance Makes KingsGate its Entry Point into the Ontario Securities Market.
TORONTO, March 3, 2005 - Industrial Alliance Insurance and Financial Services Inc. and KingsGate Wealth Management Services Limited announced today that Industrial Alliance, has entered into a business development and services agreement with KingsGate. This transaction, which is subject to approval by regulatory authorities, will allow Industrial Alliance Securities to spearhead its expansion in the Ontario securities market and will bring to KingsGate additional resources to pursue its development strategy.
Global Insurers Embrace Integrated Risk And Capital Management Finds Tillinghast Study.
February 8, 2005 Insurers are moving ahead with European businesses leading many areas in the use of integrated risk and capital management approaches to drive business decisions, according to the third tracking survey of risk and capital management practices among global insurers by the Tillinghast business of Towers Perrin.
Claims
MediSolution and Emergis Connect to Deliver Online Claims to Ontario Workplace Safety and Insurance Board.
Montréal, Québec (February 21, 2005) – Sending health claim related bills is now easier for hospital billing administrators at St. John's Rehab Hospital in Ontario with their patient billing and accounts receivable solution, MediAR+®, from MediSolution. The MediAR+ interface has been adapted to provide direct electronic data interchange (EDI) access to Emergis' Health Claim Management for Workers' Compensation solution that provides bill processing and payment for the Workplace Safety and Insurance Board of Ontario.
From Canadian Insurance ENEWS: ICBC Responds to the Ombudsman's Report on Low Velocity Impact Guidelines.
The B.C. Provincial Ombudsman has released a report reviewing the guidelines ICBC uses to investigate whiplash injury claims involving minor collisions where there is little or no damage to the vehicle.
Marketing and the Market Place
Concern About Identity Theft Growing in Canada: Ipsos-Reid.
February 28, 2005 Toronto, ONTARIO – According to a recent telephone poll conducted by Ipsos-Reid on behalf of Intersections Inc. and Carlson Marketing Group Canada, 80% of Canadian adults say they consider identity theft to be a serious problem in this country. Indeed, when asked if they or someone else they personally know has ever been a victim of identity theft, 9% report they have been. One-in-six (17%) say that someone they personally know has been a victim of identity theft.
Private and public investment, 2005 Intentions: Statistics Canada.
23 Feb 2005, Ottawa -- Robust profits, high oil prices, infrastructure improvements and an increase in manufacturing investment should all combine to produce the largest boost to investment intentions in recent years. Businesses expect to increase investment by 8.4% in 2005 to $188.3 billion.
Policy and Product Management
Swiss Re achieves another successful renewal as attractive pricing levels maintained.
14 Feb 2005 CET -- John Coomber, Chief Executive Officer of Swiss Re comments, "Our successful renewal has demonstrated Swiss Re's ability to maintain the quality of the business, not just in terms of prices but also in achieving better terms and conditions."
Reference and Statistics
New Swiss Re sigma study on catastrophes in 2004: more than 300 000 fatalities, insured losses reach nearly USD 50bn.
More than 300 000 people died in natural and man-made catastrophes in 2004 – the tsunami in the Indian Ocean alone left 280 000 dead or missing. According to the latest study by Swiss Re, catastrophes caused insured losses totalling USD 49bn worldwide; most of this figure was due to windstorms in the US and Japan.
from Doug:
The heritage group of which I am currently President had its Spring Council meeting with about twenty-five people here in Toronto on the weekend. There was a lot of preparation to try to make it as productive as possible for these volunteers who contrinbute so much time, effort and money. The reward for each of us comes from the small successes, which contribute to the progress we manage to make. The fellowship among people with a common interest is a great experience.