What’s new: In brief (June 24, 2004)

SIAA Canada has signed its newest master broker, Brokers Helping Brokers Alliance, and its founders, Rhodes & Williams Ltd. of Ottawa also join the SIAA network. BHB Alliance will cover eastern Ontario, and will help small to mid-size brokers obtain market access and support, says BHB president Cory Young. “Anything that we can do to strengthen the broker distribution channel also strengthens the communities in which we live.”

Chubb Insurance Co. of Canada has released a new study of mid-size business owners, finding merger and acquisitions challenge business owners to integrate new staff and partners. This was cited by 33% as the single biggest challenge, followed by 18% who cited establishing favorable terms. Overall, the study found owners confident of their ability to determine when and how to sell their business, and 60% have an exit strategy in place for leaving their business when the time comes. Accountants were also cited as the best source of advice on when to exit, by almost 60% of respondents.

Manitoba Public Insurance (MPI) is applying for no rate increase for 2005-2006, although it remains to be seen if this filing will be approved by the province’s Public Utilities Board (PUB). MPI had filed for no rate increase for 2004 but was ordered to raise rates by 3.7%. Otherwise, the public insurer held the line on rates for five of the last six prior years. Trailer and off-road vehicle owners will see rates drop between 22-41%, while motorcycle drivers will see rates increase again, this time by 15%. In actuality, only 1.7% of drivers will see their rates stay the same, but the rest will generally see modest rate decreases or increases of less than $50. MPI CEO Jack Zacharias does warn that the province continues to see rising pressure on claims, which in 2003 totaled $580 million.