Claims

Up to 16 named storms, NOAA predicts

There is a 90% chance of a near-normal or above-normal hurricane season in the Atlantic Basin in 2008, according to the National Oceanic and Atmospheric Administration (NOAA) climate prediction centre. An average season has 11 named storms including six hurricanes, of which two reach major (Category 3-5) status. Considerable activity is projected, with a 65% […]

By Canadian Underwriter | May 22, 2008

1 min read

Claims

Credit crunch and hurricane forecasts converging at wrong time for insurers

The credit crunch related to the subprime mortgage crisis in the United States, as well as the higher-than-average hurricane forecasts for the eastern seaboard, might be converging at the worst possible time for insurers, according to A.M. Best.”Turmoil in the credit markets could leave policyholders in limbo if a major hurricane strikes the United States […]

By Canadian Underwriter | May 20, 2008

1 min read

Claims

PartnerRe report assesses strengths, weaknesses of risk transfer mechanisms

The choice of whether to use traditional reinsurance or capital markets to transfer risk “will depend on careful consideration of a number of different factors, including the risk, size of insurer and ability to absorb basis risk,” PartnerRe says in a recent report on insurance-linked securities.PartnerRe’s report, ‘A Balanced Discussion on Insurance-Linked Securities (ILS),’ identifies […]

By Canadian Underwriter | May 16, 2008

2 min read

Claims

Health costs, discount rates increase tort awards in catastrophic injury cases

In eight years, tort awards in catastrophic cases have increased from the Cdn$600,000-$7000,000 range to between Cdn$10 million and Cdn$15 million, Jess Bush, partner with Blaney McMurtry LLP, told delegates at the Insurance Law: Spring Update 2008 in Toronto on May 15. Health care costs are “going through the roof,” he noted, by way of […]

By Canadian Underwriter | May 15, 2008

2 min read

Earthquake in China causes estimated US$10 to US$20 billion in property damage

A 7.9-magnitude earthquake that rocked China on May 12 is estimated to have caused damage losses ranging between US$10 and $20 billion, according to catastrophe modelers. Risk Management Solutions (RMS) estimates property losses to be between US$10 and US$15 billion, while AIR Worldwide Corporation estimates total losses will exceed US$20 billion (with insured losses between […]

2 min read

Tough winter conditions batter ING Canada’s 2008 Q1 results

Record snowfalls and severe winter storms in central Canada caused ING Canada’s 2008 Q1 profit to shrink from Cdn$126.2 million down to Cdn$23 million. ING Canada also cited lower operating income and declines in equity markets as factors in its 2008 Q1 results. “The harsh winter conditions during the first three months of the year […]

1 min read

What’s New: In Brief (May 13, 2008)

Brokers who work with Jevco Insurance Company, which recently introduced a new Web portal, can now input policy information online.Those who do so can receive client documents from Jevco immediately, and a policy document within a day or two. Prior to the implementation of Harcase’s Point of Sale Portal, Jevcom brokers were paperbound; it would […]

2 min read

First American launches flood catastrophe model in U.S., explores Canadian opportunities

First American Corporation (NYSE: FAF), in partnership with Swiss Re, has launched a flood catastrophe model for the U.S. market that is designed to allow insurers to measure flood exposures at the portfolio, policy and property level.First American Corporation confirmed they are exploring opportunities to develop a similar flood risk model for the Canadian market. […]

2 min read

New Brunswick launches emergency recovery program for non-insured flood losses

The Government of New Brunswick has launched a detailed recovery program for victims of recent flooding along the St. John River system.”This comprehensive program will help New Brunswickers recover from flood damage and return to their way of life as safely and as quickly as possible,” Premier Shawn Graham said, announcing the program for non-insured […]

2 min read

Insurance Act amendments proposed in B.C. and Alberta fall short on fire-following-earthquake coverage

Proposed amendments to Alberta’s and British Columbia’s insurance acts lack certainty and clarity with regard to fire-following earthquake coverage, Insurance Bureau of Canada (IBC) says.Both governments jointly introduced harmonized amendments to their insurance acts. A joint release between the two governments outlines some of the key elements of the legislation. They include:clarifying and lengthening (from […]

1 min read