Risk
With auto insurance accounting for nearly half of all premiums written in Canada, this once "darling" of the industry has now become the "wayward child" disowned by insurers as underwriting losses stemming primarily from soft-tissue bodily injury claims and tort costs continue to spiral out of control countrywide. Notably, insurers were forced to adjust their reserves by nearly two-thirds of a billion dollars last year as a result of an adverse development on auto business. Although several of the provinces are currently addressing legislative product reform initiatives in a bid to curtail auto losses and the barrage of premium hikes implemented by the insurance industry last year, insurers remain cautious in their market dealings, with many companies having "capped" writing of new business. The result has been a dearth of underwriting capacity, with Ontario and the Atlantic Canada region being particularly hard hit. As insurers continue to "shun auto" in wait of political reform, many in the industry wonder whether the product will ever regain attraction.
By Sean van Zyl, Editor | April 30, 2003
13 min read
The Facility Association (FA), the industry’s pool to insure high-risk drivers, says its overall marketshare rose year-on-year by 64% to 2.8% for 2002 versus the 1.7% share for the year prior. The FA’s combined ratio also hit a high of 160% for 2002 compared with the 137% ratio reported for the previous year. The FA’s […]
April 30, 2003
2 min read
The concept of "risk" has been at the center of public attention since the events of 9/11 through corporate scandals and most recently, with the spread of severe acute respiratory syndrome (SARS). And, risk managers, meeting in Chicago recently for this year's Risk & Insurance Management Society (RIMS) conference, are more than aware of the impact this new "age of risk" is having on premiums. However, despite these "trying times", risk mangers have evolved within the corporate culture.
By Vikki Spencer | April 30, 2003
7 min read
The term "data mining" is often thrown around loosely in the insurance industry. Many companies know of it and some insurers have even introduced elements of it. But are insurance companies unleashing the true profit potential of enterprise intelligence?
By Michael Turney | April 30, 2003
4 min read
Royal & SunAlliance Insurance Co. of Canada has named Rowan Saunders as vice president, personal insurance. Saunders has been with Royal & SunAlliance for 15 years, most recently as president of Agilon Financial. The Centre for Study of Insurance Operations announces the departure of president Klaas Westera. Interim general manager is Marhsall Lee, director of […]
The industry’s pool for high-risk auto insurance is seeing its marketshare increase, and its combined ratios deteriorate, despite attempts to raise premiums.At its agm in Toronto today, the Facility Association (FA) told member insurers that across the country marketshare is up 2.85% versus 1.76% last year, and the combined ratio has hit 160% versus 137% […]
By Canadian Underwriter | April 23, 2003
3 min read
In its annual market report, Moody’s Investors Service is predicting stability in the U.S. personal lines p&c insurance market. The relatively strong risk capitalization level, the impact of premium increases and stricter underwriting are all having an effect on 2002 yearend combined ratios, Moody’s says.There is a sense that insurers have successfully adopted the strategy […]
By Canadian Underwriter | April 22, 2003
1 min read
Brokers and agents in the U.S. are reporting signs of more stable pricing in the commercial p&c market, according to a survey by the Council of Insurance Agents and Brokers (CIAB). In its quarterly “Market Index”, the CIAB finds premiums are moderating, although about two-thirds of small, medium and large accounts are still seeing price […]
2002 was considered a “banner year” for captives, but in actuality the numbers remained fairly flat, suggests a new report by A.M. Best. In “Sizing up the Captive Market”, the rating agency says the although a record 462 new captives were licensed in 2002, there were 4,526 in total at the end of the year, […]
By Canadian Underwriter | April 21, 2003
In its final edition, the Belton Report calls for change both within the insurance industry and from legislators to deal with the slippery slope of insurer returns. Author Ted Belton says the call of “real retirement” beckons, and in this farewell issue he says in the face of dwindling investment returns, the industry must “pay […]
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