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Crown insurer the Insurance Corp. of British Columbia’s (ICBC) net earnings rose by 4.5 times to $111.7 million for the first nine months of this year compared with the $24.4 million disclosed for the same period in 2002. The dramatic jump in net earnings include gains made on the sale of claim center property as […]
By Canadian Underwriter | November 5, 2003
1 min read
Risk
The latest “benchmark survey” released by the Risk and Insurance Management Society (RIMS) suggests that the pace of price increases in the U.S. commercial insurance marketplace slowed dramatically in the third quarter of this year. “After the staggering increases [in pricing] we have seen in recent quarters, especially from professional liability lines, the market for […]
Following up on its threats, the Alberta government has announced it will freeze auto insurance rates as of October 30, 2003, and that the freeze could be in place for as long as 18 months. Bowing to public pressure, Premier Ralph Klein says legislation will be introduced in the upcoming sitting of the legislature to […]
Industry
Third quarter net taxed earnings of Fairfax Financial Holdings Ltd. (TSX: FFH) dropped into the red this year with a loss of $20 million, which amounts to $1.67 a share. This compares with a net taxed profit of $281.4 million ($19.31 a share) posted for the third quarter of last year. This year’s third quarter […]
By Canadian Underwriter | November 3, 2003
3 min read
Desjardins Group General Insurance and Assurances generales des caisses Desjardins have adopted new names as part of a marketing repositioning of the group, a statement says. The two companies have been renamed Desjardins General Insurance Group and Desjardins General Insurance respectively. “By adopting these new corporate identities, we are demonstrating that we want to display […]
The Dominion of Canada General Insurance Co. will issue premium refund cheques to Nova Scotia auto policyholders over the coming two weeks, a statement says. The refunds relate to the recent passing of the province’s Bill-1 auto insurance legislation which requires insurers to drop rates by 20% subject to a price freeze until November 2004. […]
By Canadian Underwriter | November 2, 2003
Royal & SunAlliance Insurance Co. of Canada will cease to write new personal and individual corporate auto covers in Nova Scotia effective immediately, says the company’s president Rowan Saunders. Royal & SunAlliance is the first among a number of auto insurers expected to withdraw from the province in reaction to legislation passed last week under […]
2 min read
For an industry that was on the brink of disaster less than a year ago, reinsurers can take pride in the financial turnaround seen thus far for 2003. But, CEOs offering their insights to CU’s annual yearend treaty outlook are not quiet prepared to pat themselves on the back for this year’s market performance. The […]
By Vikki Spencer | October 31, 2003
17 min read
The property and casualty insurance industry's protection mechanism for policyholders against any insurer defaulting on its claim obligations - the Property and Casualty Insurance Compensation Corp. (PACICC) - is set to undergo a major overhaul in response to a changed marketplace. The devastating competitive price impact of the last "soft market", coupled with spiraling losses and diminishing investment income returns, has created a much more volatile risk environment for the insurance industry, observes Paul Kovacs the newly appointed president of PACICC. And, while the financial picture of insurers has improved vastly in 2003 as a result of two years-plus of "hard market" pricing adjustments, there is still considerable risk for insurer insolvencies over the next three years, Kovacs says.
By Sean van Zyl, Editor | October 31, 2003
6 min read
Fueled by traditional insurance capacity shortage during 2002, particularly in the liability risk classes and certain specialty risk sectors, the growth in corporate risk retention through establishment of captives and other alternative self-insurance mechanisms is expected to maintain record levels through this year and into 2004 - after coming off a "ten year banner year" for 2001 following the insurance cost impact of the 9/11 terrorist attacks. Canada has not been excluded from this trend, with the number of captives formed during 2002 more than doubling the overall worldwide growth rate of captive formations. Canadian risk solution experts CU spoke to believe that the premium value as well as establishment of self-insurance mechanisms for this year and 2004 will continue to reflect strong growth despite the moderate improvement in traditional insurance capacity and easing of pricing currently emerging in the marketplace.
7 min read
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