Marketplace

TECHNOLOGY

Ottawa, Manitoba expanding network of weather stations

The federal and Manitoba governments are expanding the province’s network of automated weather stations to provide farmers with more accurate information on rain and snowfall distribution.

“Data from these weather stations will also be used to enhance flood and drought forecasting, precipitation maps and monitoring severe weather,” reports Agriculture and Agri-Food Canada.

“Better information enables a more accurate prediction of the amount and timing of run-off and improves flood forecasting during the spring melt,” says Steve Ashton, Manitoba’s infrastructure and transportation minister, responsible for emergency measures.

The governments installed 17 new stations last year; by 2018, the program will expand to 84 stations.

Cyber exposure data standard released

The insurance industry now has a global cyber exposure data standard, meant to help create a uniform method for data transfer across the insurance value chain.

Risk Management Solutions, Inc. reports that the Cyber Exposure Data Schema, developed in collaboration with the Centre for Risk Studies at Cambridge University and with support from some insurance and reinsurance companies,

“provides firms with a standardized approach to identifying, quantifying and reporting cyber insurance exposure.” The schema is both model-agnostic and compatible with any exposure management system.

The ability to analyze cyber risk accurately requires a full understanding of the cyber exposure data, Verisk notes in a separate statement.

“It is imperative that companies capture this data in a common format that can be used by organizations across the insurance value chain,” the company adds. “It is also crucial the exposure data standard used today and in the future be robust enough for organizations to grow into.”

Ford, university test autonomous vehicles in wintry conditions

Ford Motor Company and the University of Michigan noted in January that they have done what is believed to be the first tests of autonomous vehicles in wintry conditions.

The automaker notes typical autonomous vehicle sensors are useless on snow-covered roads. “It’s one thing for a car to drive itself in perfect weather. It’s quite another to do the same thing when its sensors cannot sense the road through snow, or when visibility is limited by falling precipitation,” says Jim McBride, Ford’s technical leader for autonomous vehicles.

Ford and the university are working on high-resolution 3D maps – complete with information about the road and what is above it, such as road markings, signs, geography, landmarks and topography – with which test vehicles are equipped.

The maps allow the car to “localize even with a blanket of snow covering the ground,” says Ryan Eustice, an associate professor at the university.

CANADIAN MARKET

Aviva Canada acquires RBC General Insurance

Aviva Canada is acquiring RBC General Insurance Company for $582 million.

“Through this agreement, Aviva Canada will provide policy administration and claims services, and RBC Insurance customers will be able to access Aviva Canada’s full suite of p&c products,” the insurer notes.

RBC Insurance will continue to market and sell the products under its brand.

The transaction is expected to close in 2016 Q3, subject to customary closing conditions.

“A net after-tax gain on the transaction is currently estimated at $200 million,” RBC Insurance reports.

With the acquisition, Aviva Canada’s gross written premiums in Canada, which were $3,959 million in 2015, are expected to increase by $800 million.

“This partnership is a fantastic addition to Aviva Canada, diversifying our distribution alongside our highly valued 1,500 independent brokers,” says Aviva Canada chief executive officer Greg Somerville.

For RBC Insurance, the move allows it to “focus on and invest in areas where we see the greatest potential for growth, including our life, health and wealth insurance offerings,” says Neil Skelding, president and chief executive officer of RBC Insurance.

ACE completes Chubb acquisition

ACE Limited completed its acquisition of The Chubb Corporation in early 2016, creating the world’s largest publicly traded property and casualty insurance company.

ACE paid approximately US$29.5 billion in the aggregate in cash and stock, based on the most recent closing price of ACE Limited shares and the number of outstanding shares of The Chubb Corporation common stock at the time of closing.

Effective immediately, ACE is adopting the Chubb name.

Chubb now has market capitalization of about US$51.2 billion on a pro forma basis, and annual gross written premiums of US$37 billion.

CAA Manitoba, CAA South Central Ontario to merge

The Manitoba and South Central Ontario (SCO) branches of the Canadian Automobile Association (CAA) have announced their formal intention to merge, expected September 20, 2016, subject to member and regulatory approvals.

“By bringing together two successful CAA clubs, both are better-positioned to offer an even higher-caliber array of products and services that are essential to our members’ safety and peace of mind,” says Mike Mager, president and chief executive officer of CAA Manitoba.

“The combination of resources and expertise will deliver greater capabilities, innovations and advocacy expertise to keep our members and their loved ones safe,” adds Jay Woo, CAA SCO’s president and chief executive officer.

Commercial drone insurance launched

Intact Insurance has announced the availability of drone insurance for its small and medium-sized commercial lines customers.

The unmanned air vehicle coverage “caters specifically to small and medium-sized businesses that currently use or plan to use drones to complement their business operations,” Intact reports.

“The number of businesses using drones is increasing due to improving technology, lower price points, and expanded uses within commercial operations,” says Alain Lessard, senior vice president of commercial lines for Intact Insurance.

“Broker feedback and survey insights identified a growing customer demand and gap in non-specialty markets for this type of coverage,” Lessard adds.

REGULATION

Gore Mutual opts to stay a mutual company

Despite the regulatory means now available for federally regulated mutual property and casualty insurers to demutualize, 176-year-old Gore Mutual Insurance Company is opting to remain as is.

“The Board of Directors of Gore Mutual has completed its review and has determined that it is in the best interests of the company, having regard to the interests of all of its stakeholders, to remain a mutual company and to continue with its current strategic plan.”

Among other things, Gore Mutual notes that it does not need access to capital given its current financial strength and strategic plan.

The first eligible company to pursue demutualization is Economical Insurance. In December, the insurer’s mutual policyholders voted in favour of continuing to the next stage of the process.

Manitoba changes building, fire codes

Manitoba has made changes to the province’s building and fire codes, including requiring sprinklers in new and existing care facilities.

Changes mean automatic sprinkler systems must be installed in all hospitals, licensed personal care homes and residential care facilities by January 1, 2026. Smaller residential care facilities of four clients or less may be exempt, depending on the results of a risk assessment.

The requirements are in line with recommendations made by members of the Fire Safety Task Force, formed in 2014 after a fire at a seniors residence in L’Isle-Verte, Que.

RISK

Business interruption, cyber among top risks

Asked to name up to three risks they see as the most important business risks for 2016, 57% of Canadian respondents to Allianz Global Corporate & Specialty SE’s 5th annual risk barometer identified cyber incidents, up from 33% last year.

While cyber topped the list in 2016 for Canadian respondents, in second spot was business interruption (cited by 37%), which ranked first in 2015. Three risks were tied in third place, with 23% of respondents each identifying changes in legislation (ranked seventh in 2015), loss of reputation or brand value (ranked third in 2015), and natural catastrophes (ranked fifth in 2015).

Other risks in the Top 10 risks for 2016 include fire/explosion, macroeconomic developments and market developments (tied for sixth), and environmental risks (pollution) and human error ranked ninth and 10th.

Canada gets high score on nuclear security

Canada received high scores on cyber security and other criteria for nuclear security conditions, notes the Nuclear Threat Initiative (NTI) Nuclear Security Index 2016.

Of the 24 nations with weapons-usable nuclear material, nine, including Canada, received the maximum score for cyber security; seven nations scored zero.

On a scale of 0 to 100, Canada scored 79 for risk environment, and 100 each in, among other things, on-site physical protection, response capabilities, international legal commitments, voluntary commitments, domestic nuclear legislation, and pervasiveness of corruption.

REINSURANCE

Final touches done for bridge’s seismic retrofit

British Columbia reports that a $21 million seismic safety retrofit to the Mission Bridge crossing of the Fraser River on Highway 11 is complete.

“We continue to upgrade our infrastructure to protect British Columbians in the event of a major earthquake,”

says transportation and infrastructure minister Todd Stone. “Given that we live in a seismically active region, it is important to invest in infrastructure designed to withstand the impacts possible with catastrophic earthquakes,” adds Naomi Yamamoto, minister of state for emergency preparedness.

B.C. plans to conduct its first-ever, full-scale major earthquake and tsunami response exercise in 2016.