Moments In Time (June 01, 2004)

Reaction in Manitoba

September, 1970

Following third and final reading of Bill 56 by the minority NDP government in Manitoba, who passed the bill with the support of two independent members, 29 votes to 27, Canadian Underwriter surveyed the reaction of agents in Manitoba.

“My summation, and the bitterest pill of all pills to swallow was:

1. The government did not produce a plan that they conclusively proved was better than the existing one.

2. The government did not produce a plan that had the overwhelming support of the majority of Manitobans. We repeatedly challenged them to call an election, and for obvious reasons they refused.

3. The bill was passed simply and solely on the votes of two political turncoats who were elected as supposed supporters of the free enterprise system.

We shall continue our fight no matter how lost the cause appears to be. Please hammer it home – Ontario could be next if we continue to allow splinter groups to attain power.”

– Dick Cooper, Winnipeg.

A new version of the eternal triangle

By E.F. Belton, v.p. marketing, The Halifax Insurance Co. Toronto

December, 1972

There are many similarities in the triangular relationship of insurance companies, agents and consumers and the legendary love triangle. The uneasiness and turbulence which typifies the love triangle has been very much present in recent years in the relationship between insurance companies, agents and consumers.

Companies and Agencies often tend to overlook the consumer as a factor in this relationship. We seem to forget that the consumer is the very reason that the triangle exists. We lose sight of the fact that the fundamental purpose of the Company-Agency portion of the triangle is to satisfy the consumer’s need for financial security. We must always remember that the satisfaction of this need is the only reason the insurance industry exists.

If we fail in this mission, we are out of business.

The name of the game is public relations

By Al Wood

August, 1973

I’ve almost reached the conclusion that we might as well all chip in 50 each and run the following ad in the classified section of our newspapers:

“Misc. for Sale: Large, but slowly shrinking free enterprise industry, currently operating in seven provinces in Canada, responsible for the marketing of a product necessary to all Canadians. Price shall be the cost of one election, but can be negotiated if that proves excessive. Contact any member of the public for further details.”

Why do I feel that way? Because the public has lost confidence in the Insurance Industry and we don’t seem to be doing very much to win that confidence back.

1973: what happened? 1974: what will happen?

By J.M. McFadyen, president, Canadian Underwriters’ Association

July, 1974

We all know that ’73, the 91st anniversary of the CUA, was a bad year – $141-million in underwriting loss, about a 14% increase in premiums written, the worst loss in history, well over that of $79-million in 1963.

What happened? In my opinion, the results are a culmination of events that have been threatening for many years.

Due to our inherent industry problem, a relatively small market (about $3-billion) and an excessive number of companies, agents and brokers, an irresponsible underbidding pattern has emerged, particularly in the property classes.

No one company or broker started this war, however a number continue to be guilty of this irresponsible behaviour in the marketplace.

Industry socked by inflation loses $330 million plus

By Ken MacLeod, managing editor

Annual Statistical Review, 1975

A $330 million plus loss year. The mind boggles.

There is a precious little room left for humour when one considers the ramifications of that statistic on those who work in insurance, or on the marketplace itself, but one insurance wag made a game try recently when he came up with the following definition: A streaker, he said, is an insurance company leaving the country after last year’s underwriting experience – in many cases, not even decently covered by investment income.

Inflation, inadequate rates to deal with it, inane competitive practices, catastrophe losses, higher court awards, increased numbers of claims, a slumping equity market, name it and it happened to a troubled industry last year, leading it down the garden path to a record breaking loss year, its sixth in a row.

Top writers

1. Insurance Corp. of B.C.$205.6 million NPW

2. Royal Insurance$183.8 million NPW

3. Lloyd’s of London$120.6 million NPW

4. Commercial Union$117.4 million NPW

5. Travelers Group$102.1 million NPW