Moves & Views (July 01, 2009)

1 In the most recent canadianunderwriter.ca poll, we asked readers if they support the concept of mutual recognition for reinsurance supervision. In this case ‘mutual recognition’ describes a situation in which a reinsurer registered in one country can write business in another country without requiring the use of collateral or other restriction. Sixty-four per cent of poll respondents said ‘no’ and 36% said ‘yes’ they do support the concept.

2 Towers Perrin, Forster & Crosby Inc. and Watson Wyatt Worldwide Inc. have merged to form a new publicly-listed company, Towers Watson & Co. The implied equity value of the transaction is approximately US$3.5 billion, according to a release. The CEO of the new company is John Haley, CEO of Watson Wyatt, and the new president is Towers Perrin CEO Mark Mactas [2]. Towers Watson is expected to have annual revenues in excess of US$3 billion. Significant savings are expected during the first two years following completion of the transaction; full realization of synergies is anticipated to take three years and cost approximately [US]$80 million. “Towers Watson will also have significant non-cash expenses during the first two years following completion of the transaction,” a release says.

3 CNA Canada has appointed Gale Lockbaum as senior vice president, finance and chief financial officer. The company has also appointed Michael O’Connor to assistant vice president of marine underwriting for Ontario and Kevin Mateus as branch manager in Montreal. Lockbaum’s background includes financial leadership roles with First Canadian Title, CIBC Insurance and Guardian Insurance. O’Connor joined CNA in 2004 as a senior underwriter; most recently he served as Montreal branch manager. Replacing him will be Mateus, who joins CNA from Zurich, Montreal, where he lead the commercial mid-market underwriting team.

4 Canadian Underwriter has launched instouch.com, an online network for insurance industry professionals. “Membership at instouch is open to individuals working within all segments of the insurance market,” said Steve Wilson, senior publisher of Canadian Underwriter’s Insurance Media Group. Members of instouch can connect and send messages to trusted industry contacts, join or start a group, upload photos and videos, post and interact on discussion forums and blogs, add and respond to industry events and much more. “We’re trying to provide a mix of social network elements that industry professionals may find useful and of interest,” Wilson said. “We want to help bring together many individuals, groups and associations from all segments of the market, allowing them to interact and network in a common space.”

5 The University of Western Ontario, in affiliation with the Institute for Catastrophic Loss Reduction (ICLR), has received funding to build the first wind tunnel that will simulate a tornado. The Canadian Foundation for Innovation has confirmed Cdn$9.5 million to build the WindEEE (Wind Engineering, Energy and Environment) Dome. The dome will be the world’s first six-sided wind tunnel able to simulate an F3 tornado, according to the ICLR. WindEEE will use a series of giant fans to simulate an F3 tornado roughly six metres in size, the re-lease says. The facility will be able to test the vulnerabilities of structures, power lines, agricultural crops, forests and wind turbines against the swirling winds associated with tornadoes, as well as the powerful winds resulting from downdrafts. The dome could also be used to track the spread of pollutants over wide areas. Construction of the facility is anticipated to begin in a year; it will be in operation a year or two later.

6 Aviva Canada Inc. has formed a partnership with Hagerty Insurance, a specialist in the collector car market, across Canada. Under the partnership, Aviva Canada will underwrite Hagerty Insurance in Canada and assist in distribution through its broker network. Hagerty will provide service, call centre operations and marketing support. Hagerty Insurance will enter the Alberta market this June, British Columbia in July and Ontario in the fall. The Hagerty products will complement Aviva’s Silver Wheel Plan and Custom Wheel Plan products that Aviva provides through Lant & Co. Insurance Brokers Limited and its associate brokers across Canada. Hagerty will extend its Hagerty Plus program to Canadian car enthusiasts. The membership-based program includes benefits such as flatbed towing, roadside assistance, regulatory advocacy, youth programs and support of the Collectors Foundation, a non-profit organization that helps to preserve the collector car hobby through grants to clubs and museums, and that. The Collectors Foundation offers scholarships to accredited colleges with special automotive programs.

7 ACE Canada has launched an errors and omissions product designed for the Canadian technology market. ACE DigiTech digital technology and professional liability insurance program offers up to Cdn$20 million in limits and provides comprehensive, technology-based, professional liability coverage and related network security, pri- vacy protection and cyber extortion coverage. The product includes coverage for liability arising out of the abuse of computer networks and the loss of sensitive customer or business partner information. Privacy liability coverage extends to hacker attacks and the unintentional release of information, as well as the cost of combating post-breach stakeholder fallout. ACE DigiTech will also provide a data breach fund to cover the insured’s expenses to notify customers whose personal information has been compromised. This fund covers such costs as legal, public relations and crisis management services to restore a company’s reputation.

8 The first two Co-operators representatives in the province of Quebec launched in June. One office opened for business in Aylmer on June 9. The second opened in Gatineau one week later. The Co-operators currently have 480 exclusive agents providing insurance and financial services in 383 communities throughout Canada’s other nine provinces. Thus far in Quebec, The Cooperators group of companies has been best known through its insurance subsidiaries L’Union Canadienne, The Sovereign General, TIC Travel Insurance Coordinators and COSECO, as well as investment management firm Addenda Capital.

9 James Giffen has been promoted to director of the Global Technical Services (GTS) division with Crawford & Company (Canada) Inc. Giffen has nearly 25 years of experience and currently manages Crawford’s Toronto GTS branch. He is an executive general adjuster and has multi-line claims expertise. He specializes in major commercial/industrial property, fidelity, false pretense and lessors’ contingent losses.

10 Paul Johnstone has been appointed manager of Chubb Personal Insurance, Canadian zone, Chubb Insurance Company of Canada. He assumed the role effective May 11, 2009. Johnstone brings 15 years of industry experience to his post, having served in underwriting, marketing and management positions at Chubb. He first joined Chubb in 1994 as an underwriting trainee; before that, he worked as manager and underwriter of facultative reinsurance at another firm. He returned to Chubb in 2000 to take on the marketing manager role for Ontario. Most recently, he was manager for Chubb Personal Insurance, responsible for Ontario.

11 York Fire and Casualty Insurance has teamed with the Canadian Council of Snowmobile Organizations (CCSO) to create a snowmobile insurance product. Power Sports Insurance Solutions provides personal sled insurance protection through local brokers and is ready to launch in Ontario. Over the next year or two, the program will be available across Canada. It will also offer coverage for motorcycles, ATVs, boats and RVs.

12 The Canadian Ski Patrol System (CSPS) pre sented an Outstanding Contribution Award to the Insurance Brokers Association of Canada (IBAC) at the CSPS annual conference and awards banquet on May 23. The award recognized IBAC for providing and delivering thousands of blankets to ski patrols across the country over the past two years. “IBAC has helped the CSPS to improve its ability to deliver rescue services to skiers in need,” a joint press release says. “Additionally, the [insurance broker] association’s efforts in promoting this relationship have increased the image of the ski patrol in all parts of the industry nationally.”