Industry
Corporate income tax, payroll tax, premium tax, general and provincial sales taxes, capital tax, fire tax, health levies, "mark-to-market" deemed capital gain tax...the list of "creative" taxation mechanisms the federal and provincial governments have concocted over the years to financially milk Canada's property and casualty insurance industry is astonishing. As one renowned tax expert notes, the array of taxes applied to insurance are not only inconsistent in their application, but also result in "taxes being applied on taxes". This led him to conclude that the current approach of the authorities is simply to "treat the industry as a 'cash cow' for tax purposes". Against this backdrop, the Insurance Bureau of Canada has embarked on a nationwide lobby campaign to convince the authorities to reduce transactional-based taxes, with the long-term intent of elimination. This, however, will prove a formidable challenge as once a tax has become entrenched, it may require something akin to an "Act of God" to shift revenue policies, tax consultants warn.
By Sean van Zyl, Editor | May 31, 2001
7 min read
International reinsurer Scor has purchased Groupama’s reinsurance business, Sorema S.A. and Sorema N.A., in a share transaction. The deal, which values the two subsidiaries at EUR 344 million, will make Groupama the largest shareholder in Scor, with a 17% stake. For Scor Canada, the purchase will mean combining its operations with the Canadian branch of […]
May 31, 2001
2 min read
The "supply and demand" forces that at various points of the insurance pricing cycle dictate the influence of relations between insurers and brokers has resulted in what many would regard as being "questionable practices" being brought into the marketplace over the years. Perhaps the most questionable of all is the "ex gratia" claim payment, a practice which seems to be becoming increasingly prevalent as the mega insurers fight to secure volume business of the broker networks.
By Linden Rees, president of Insurers Security Services Inc. | May 31, 2001
3 min read
108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 6.4 -3.0% 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 4.6 -17.2 6.4 -3.0% 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% […]
1 min read
With the merger of the Insurance Information Centre of Canada (IICC) and the Insurance Bureau of Canada (IBC), IICC president and CEO Bernie Webber has announced his resignation. Terri MacLean, senior vice president of IBC’s Investigative Services Division, will be acting president and CEO of IICC. She will also be IBC’s executive vice president, Investigative […]
Dear Editor, I have been provided with a copy of Paul Iacono’s article from your April 2001 issue. He talks about the “menu” approach to billing. Over the past year the writer took this one step further and actually prepared a menu with fixed prices for each service and three levels of expertise, depending on […]
Western Canada-based broker network Hi-Alta Capital Inc. (TSE: HIA) reported a 35% increase in net income to $465.5 million for the 2000 financial year compared with 1990’s $345.3 million. This equals earnings of 429 a share for 2000 (1999: 347) which rose at a more sedate pace of 24% year-on-year due to an increase in […]
The past decade has been a time of transition for the collision repair industry, marked by a shrinking market and consolidation. Now the industry is seeking new alliances with the insurance industry in the drive to improve efficiency and increase customer satisfaction. As both industries head into the next decade, the pressure and the potential for success is increasingly dependent on the strength of those alliances.
By Sam Malatesta, vice president marketing & insurance relations at | April 30, 2001
5 min read
Speakers of an insurer/collision discussion panel hosted by the industry’s international education body I-Car at its recent Canadian national conference were provided with the stark theme of dealing with “reality”. On a particularly “realistic note” was the thick tension in the air of the predominantly auto bodyshop audience of which individuals at the various “refreshment […]
By Sean van Zyl, Editor | April 30, 2001
New marketing technologies and rising consumer concern of “information exploitation” by financial service providers has created a challenge for the insurance industry. Faced with new federal legislation under Bill-6, which affords information protection to individuals, insurers and their financial services counterparts will have to comply with specific legal requirements by set target dates over coming […]
By Carole Machtinger, chief privacy officer of Insurance Informatio | April 30, 2001
6 min read
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