Industry
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.
May 31, 2001
5 min read
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
Risk
Compounded by consumer needs and stiff competition within the industry, insurance companies are forced to find new and innovative ways to differentiate themselves from their competitors. It is no longer enough to improve the efficiency of internal administration, insurers must provide value-added services to customers and fulfill the consumer’s desire for instant gratification. As a […]
4 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
The last of specialty risk insurer Queensway Financial Holdings Ltd.’s (TSE: QFH) directors have resigned in light of the company’s bid to have an interim receiver appointed over its assets by the Ontario Superior Court of Justice. That request was granted May 18, a day after directors Harold Meloche, Kevin Charlebois and David Ogilvie announced […]
108.6 +2.5% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 6.4 -3.0% 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 4.6 -17.2 6.4 -3.0% 105.9 +1% 112.2 +12.6% […]
1 min read
Specialty risk auto insurer Kingsway Financial Services Inc. (TSE: KFS) delivered a sterling 13.1% return on equity for the first quarter of this year. Net income for the latest reporting period rose 138% year-on-year to $10.6 million (1st quarter 2000: $4.4 million). The significant jump in earnings – which clocked in at 27 a share […]
With the merger of the Insurance Information Centre of Canada (IICC) and the Insurance Bureau of Canada (IBC), IICC president and CEO Bernie Webber has announced his resignation. Terri MacLean, senior vice president of IBC’s Investigative Services Division, will be acting president and CEO of IICC. She will also be IBC’s executive vice president, Investigative […]
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