Claims

What’s New: In Brief (May 31, 2007)

With spring flooding being a high risk in certain areas of B.C., the Insurance Bureau of Canada (IBC) is warning people that damage caused by overland flooding cannot be covered by home insurance.”The purpose of insurance is to spread risk amongst many policyholders,” said Lindsay Olson, IBC vice-president, British Columbia and Yukon. “But overland flooding […]

By Canadian Underwriter | May 31, 2007

2 min read

Claims

Benfield: Reinsurance sidecars headed in different direction?

Sidecars remain a popular form of raising capital, but a recent Benfield report suggests sidecars could conceivably be headed in a different direction in the future.Reinsurers will typically set up a short-term entity called a sidecar, funded by investors money, as a way to raise capital in anticipation of paying for catastrophic losses.The latest issue […]

By Canadian Underwriter | May 31, 2007

1 min read

Claims

Bermuda reinsurers show tale of two dramatically different results

The Bermuda reinsurance market wildly fluctuated between fantastic results in 2006 and brutal results in 2005, according to an A.M. Best report. In 2005, the Bermuda market reported a devastating combined ratio of 119.4%. However, in 2006, the combined ratio was only 83.7% a vastly significant improvement. Underpinning this dramatic improvement was the robust level […]

By Canadian Underwriter | May 30, 2007

1 min read

Claims

What’s New: In Brief (May 30, 2007)

Royal & SunAlliance has partnered with AIR MILES Reward Program, which will provide customers who purchase or renew a home or car insurance policy with one reward mile for every $20 they spend on premium. Brokers have consistently asked us for support in attracting and retaining new customers, Rowan Saunders, president and CEO of Royal […]

By Canadian Underwriter | May 30, 2007

1 min read

Over-regulation a ‘banana skin’ for global insurance industry

Regulatory overkill is the largest risk facing the global insurance industry, according to the Center for the Study of Financial Informations (CFSI) latest Banana Skins survey, conducted for the first time for the insurance industry, in conjunction with PricewaterhouseCoopers LLP.The Top 10 banana skins threatening to trip up the global insurance industry include: too much […]

2 min read

Market discipline critical, OSFI tells insurance industry

Property and casualty companies enjoyed 20% or more returns on equity in 2006, but even a minor change in the economic environment can lower these numbers, Canadas acting financial superintendent told attendees of the 2007 Property and Casualty Insurance Industry Forum in Cambridge, Ontario. Julie Dickson, acting superintendent of the Office of the Superintendent of […]

1 min read

OSFI in 2007 preparing for fair value accounting, pandemics

The Office of the Superintendent of Financial Institutions (OSFI) in 2007 is preparing to move to International Financial Reporting Standards (IFRS).[OSFI] will soon begin to determine the implications for Canadian financial institutions and supervisors, Julie Dickson, OSFIs acting superintendent, told the House of Commons Standing Committee on Finance on May 27, 2007.This will include developing […]

1 min read

Swiss Re promotes risk analysis in light of EU “polluter-pays” legislation

New, polluter-pay environmental legislation in the European Union is based on a new liability regime under public law and will create unprecedented loss complexes for which claims experience is not yet available, according to a recent report by Swiss Re.It is important for the insurance industry to assess the exposure inherent in these new scenarios.The […]

2 min read

Sharing risk knowledge a key to sustainable insurance: UN report

Sharing risk knowledge, forming public-private partnerships, using information technology and partnering for distribution and consumer education are all means insurers can use to implement a campaign of proactive engagement in sustainable insurance, according to a report released by the Insurance Working Group of the United Nations Environment Programme Finance Initiative. A robust insurance industry provides […]

1 min read

Bermuda insurers face rate pressures; warns A.M. Best

The calm 2006 storm season showered benefits on Bermuda insurers, but A.M. Best is warning that last years strong performance has set the stage for increased pressure on rates as a whole.In its 2007 Special Report: Bermuda 12-Month Financial Review, A.M. Best reported a 2006 combined ratio of 83.7, compared with a catastrophic combined ratio […]

1 min read