What’s new: In brief (May 25, 2004)

Saskatchewan Government Insurance (SGI) has introduced a new deductible payment plan which allows claimants to finance the payment of their deductible after an accident over a period of 10 months. While SGI does not charge interest, it will charge claimants $30 to use the program.

The Institute for Catastrophic Loss Reduction (ICLR) has a new research paper on “Cyber-Incident Risk in Canada and the Role of Insurance” available on its website, www.iclr.org. The research, authored by Paul Kovacs, Melissa Markham and Robert Sweeting, says costs associated with cyber-risks are increasing, the insurance industry can offer coverage to fill the gap left by cyber-exclusions. Integral to this, however, is for the industry to collect and analyze data on the risks involved to correctly price coverage.

St. Paul Travelers says it has settled common law direct actions pending against Travelers for asbestos-related cases by creating a fund worth up to US$70 million, plus US$20 million in legal fees. This follows an earlier settlement of statutory-based claims. The company does not anticipate taking an earnings charge as a result of the fund, which will be taken from existing unallocated asbestos reserves.