Claims (March 01, 2010)

GLOBAL INSURED LOSSES IN 2009 LOWEST SINCE 2006

At $24 billion, global insured losses in 2009 were the lowest they have been since 2006, in part due to relatively low losses for weather events and a quiet hurricane season, according to Guy Carpenter.

This is a large drop from $52.5 billion in 2008, the company reported in its ‘Catastrophe Update,’ posted online at GCCapitalIdeas.com.

“2009 has seen an impressive recovery from last year’s financial crisis and the uncertainty caused by losses from Hurricanes Gustav and Ike,” the update said. “This recovery has been driven by the easing of financial markets and low catastrophe activity.”

The largest source of loss in 2009 included weather-related events amounting to $21 billion. Man-made disasters triggered insured losses of $3 billion, Guy Carpenter reports.

FSCO ARBITRATORS HAVE NO LEGISLATIVE MEANS TO ASSESS CLAIMANTS’ CAPACITY TO REPRESENT THEMSELVES

A woman diagnosed with a borderline personality disorder may represent herself in an arbitration concerning auto insurance accident benefits, the Financial Services Commission of Ontario (FSCO) has ruled.

In L.G. and Lombard General Insurance Company of Canada, FSCO arbitrator John Wilson considered whether the claimant in the case, L.G., was entitled to appear without legal representation in an accident benefits arbitration, even though Lombard produced evidence that she had been diagnosed with a “schizophrenic/borderline personality disorder.”

“Although the diagnosis does not determine capacity [of the claimant to represent herself], such information is not totally irrelevant,” Wilson ruled.

However, he went on to observe that some kind of medical-legal analysis would be required, and Lombard had not presented anything more than a diagnosis.

“It goes without saying that there is not necessarily a direct relation between a diagnosis and capacity, since the effects of mental illness may be mitigated by treatment, may be in remission, or may not ultimately affect the reasoning capacity of an individual,” he wrote.

Wilson added that even though he thought L.G. would be “better served” by a representative, an arbitrator had no basis under the Insurance Act (or any other statutes) to enquire into the capacity of a party.)