Industry
Manitoba’s drivers could be paying even lower rates in the coming year if the public insurer there has its way. Manitoba Public Insurance (MPI) has applied to the Public Utilities Board for an overall premium reduction of 1.2%, the fourth consecutive year of rate reductions in that province, according to an MPI press release.The reduction, […]
By Canadian Underwriter | June 7, 2001
1 min read
As controversy over aftermarket parts use continues to swirl in the wake of the State Farm verdict, insurers, auto manufacturers, and those in the collision repair industry are looking at how to make driving safer and reduce accident costs. With auto insurers facing dismal results across the country, and in Ontario in particular, the need to tackle these costs is clear. But the role aftermarket parts, recycled parts, theft deterrents, and vehicle design will play in this attempt to bring profitability back to the auto insurance market was very much up for discussion at the recent Auto Insurers and Manufacturers (AIM) forum held in Mississauga.
May 31, 2001
5 min read
Adecision handed down by an international “arbitration panel” in late April of this year which upholds Hydro-Quebec’s (HQ) position in a multi-billion dollar contract dispute with a group of Vermont electricity companies could bode poorly for several Canadian insurers who are currently engaged in legal actions against Quebec’s power utility provider to recover losses that […]
4 min read
Chuck Byrne, executive director of IBABC, was incorrectly quoted in the May 2001 issue of CU as stating that the insurance delivery system operated under ICBC is less efficient than would be the case should the market be deregulated. Byrne says an open competition model would place a greater workload on the broker.
With the advent of Internet sales and service, building a solid relationship with customers will become more important than ever. Not only does the Internet bring the opportunity for high-tech customer relationship management (CRM) solutions, but it also gives consumers the ability to change insurers with a simple click of the mouse. Insurers seem to […]
12 min read
In the final climactic moment of the television series "Survivor", the host on handing out the $1 million prize noted that, "this game is all about relationships". The physical challenges, the starvation and other forms of deprivation, and in the end, it all came down to building solid and lasting relationships. This should not a surprise revelation for marketers and sellers of complex products including insurance. The key to being a winner is always the same - the establishment of loyal relationships, in this case with your customers.
With the rise of the insurance call center environment, companies are seeking a direct, and cost efficient line to customers. But whether or not this core function should be outsourced is a subject of hot debate. Concerns about outsourcing are not without merit, but with proper planning including specification goals and a willingness to delegate responsibility, this can be an efficient and effective vehicle for insurers.
Corporate income tax, payroll tax, premium tax, general and provincial sales taxes, capital tax, fire tax, health levies, "mark-to-market" deemed capital gain tax...the list of "creative" taxation mechanisms the federal and provincial governments have concocted over the years to financially milk Canada's property and casualty insurance industry is astonishing. As one renowned tax expert notes, the array of taxes applied to insurance are not only inconsistent in their application, but also result in "taxes being applied on taxes". This led him to conclude that the current approach of the authorities is simply to "treat the industry as a 'cash cow' for tax purposes". Against this backdrop, the Insurance Bureau of Canada has embarked on a nationwide lobby campaign to convince the authorities to reduce transactional-based taxes, with the long-term intent of elimination. This, however, will prove a formidable challenge as once a tax has become entrenched, it may require something akin to an "Act of God" to shift revenue policies, tax consultants warn.
7 min read
International reinsurer Scor has purchased Groupama’s reinsurance business, Sorema S.A. and Sorema N.A., in a share transaction. The deal, which values the two subsidiaries at EUR 344 million, will make Groupama the largest shareholder in Scor, with a 17% stake. For Scor Canada, the purchase will mean combining its operations with the Canadian branch of […]
2 min read
The "supply and demand" forces that at various points of the insurance pricing cycle dictate the influence of relations between insurers and brokers has resulted in what many would regard as being "questionable practices" being brought into the marketplace over the years. Perhaps the most questionable of all is the "ex gratia" claim payment, a practice which seems to be becoming increasingly prevalent as the mega insurers fight to secure volume business of the broker networks.
3 min read
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