Industry
Adjusting may be a time-honored profession, but it is one facing an intense period of transition. New privacy rules, varied and changing auto insurance systems, the rise of class actions and growing concern with potential bad faith lawsuits. As if all of these forces were not enough, adjusters are also being challenged by a hard […]
By Vikki Spencer | June 30, 2003
6 min read
Risk
With a great number of property and casualty insurers and reinsurers operating in this country being owned by foreign parent companies, the market here is often influenced by decisions taken in far off home-offices.
By Glenn McGillivray | June 30, 2003
9 min read
Of all liability claims that can be presented to an insurer, allegations of sexual abuse represent a special challenge. These claims often involve mixed elements of negligent and intentional acts. As well, there may be both innocent and culpable insureds seeking indemnity under the policy. A recent decision by the Ontario Court of Appeal has provided new direction which could have significant impact on insurers.
By William Blakeney of BLAKENEY HENNEBERRY MURPHY | June 30, 2003
8 min read
The Canadian operation of Alea Europe Ltd. will discontinue writing new business from the beginning of August this year, a statement released by the parent company says. Gilles Meyer, CEO of Alea Europe, says the decision to withdraw from the Canadian reinsurance marketplace relates to the company’s diminishing premium volume and inadequate profitability. As such, […]
June 30, 2003
2 min read
Mobile technology, coupled with a rethink of traditional ways of producing inspection reports, can cut significant costs, improve efficiency and speed up turnaround for underwriters and inspectors. Underwriting is the critical, if cumbersome, lynchpin of the insurance transaction process. Delays, paperwork and requests for information can stretch the vital risk analysis function to days and […]
By Terry Neilson, president of Insurance Systems Inc. | June 30, 2003
4 min read
The acquisition of Gerling Canada Insurance Co. by a consortium of investors led by Torquest Partners Inc. has been completed. The terms of the deal were not disclosed. The Gerling primary operation will be renamed GCAN Insurance Co., a subsidiary of GCAN Holdings Inc., which was created by the investment consortium to facilitate ownership of […]
1 min read
The Centre for Study of Insurance Operations (CSIO) has named David Patrick as interim CEO. He is former senior vice president, insurance solutions and services with CGI. Aviva has appointed Patrick Snowball group executive director, general insurance. The company’s general insurance business in Canada, Ireland and Asia will report to Snowball. Disaster Kleenup International (Canada) […]
Financial rating downgrades, market withdrawals and companies going into runoff have dominated media reports on the global reinsurance sector of the property and casualty insurance industry. Much the same applies to Canada's reinsurance sector, which in the span of a 12 month period has undergone dramatic consolidation in the number of players if not in "real" premium capacity. With reinsurers operating in Canada having for the second consecutive year brought home rate increases of 30%-plus for 2003 renewals, the obvious question is why the sector continues to attract negative growth outlooks from the rating agencies. The answer lies in the multi-billion dollar adverse reserve adjustments made by global reinsurers over the past two years, and just when and to what extent this "loss drain" from prior years will come to an end. Specifically, the rating agencies are concerned over whether the parent owners of these global reinsurance carriers will continue to provide capital support. Also, commentary from senior managers of reinsurance and primary insurance companies suggests that the financial security of reinsurers has replaced the "old school relationship" approach to which companies were able to participate in insurer programs. But, with reinsurance capacity remaining scarce in certain classes of business, such as auto liability, insurers admit that they sometimes have to "place their bets" in settling for reinsurance from a less-than top-rated reinsurance carrier.
By Sean van Zyl, Editor | June 30, 2003
10 min read
Insurers and reinsurers may soon find themselves caught in the "eye of the storm", as La Nina rears its head once more, bringing in her wake predictions of increased hurricane activity. Should the Atlantic coast be hard hit this year by tropical cyclones, it would be a difficult blow for an industry trying to regain profitability. And, with even more meteorological mayhem expected for the winter season, La Nina may be a very unwelcome visitor indeed.
As the 2004 reinsurance treaty season draws nearer, the Canadian marketplace appears to be in a state of turmoil as global reinsurers evaluate their capital positions and effective capital use. The result has seen withdrawal of several known names from the marketplace in quick succession, while globally the reinsurance sector remains under pressure with most […]
By Donald Callahan, president of Guy Carpenter & Co. Ltd. | June 30, 2003
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