Risk
After two years of positive results, insurers are at the proverbial fork in the road. Should prices be lowered to attract new business or should current underwriting standards and pricing be maintained? The last hard market cycle damaged not only the insurance industry's bottom line, but also its reputation. The industry at large must not follow this path again. A smoother trail must be sought.
August 31, 2005
4 min read
This is a new era for Directors and Officers, as amendments to Bill 198 sweep in and reinvent D&O liability. As a result, the insurance market has new concerns: How will businesses conduct change to avoid liability in light of the legislation's demand for increased corporate governance standards? and how can a high caliber of Directors and Officers be maintained in the face of these new liabilities?
6 min read
Teetering on the wall of discrimination and unfair discrimination is the practice of auto insurance market segmentation. This rating practice is falling on the unfair side of the wall because of a push by legislators concerned about stigmatizing social groups. The fall will scramble the system to support the finances of high-risk drivers and fry the system for supporting low risk policyholders. If insurers are given the right to evolve the practice of market segmentation rating, an efficient resolution of balanced premiums can be served sunny-side up.
Business Interruption coverage has used a variety of different forms and wording over the years. They all start with the same basic premise: they are triggered only by damage to income-producing property at the premises designated in the policy. Such damage either reduces or impairs the ability to produce cash flow or increases the cost in doing so.
7 min read
The initial impressions of Hurricane Katrina were television shots of devastating winds and pounding storm surges. The images confirmed what many had predicted – a severe Category 4 or a Category 5 hurricane but nothing that the Southeastern U.S. and Caribbean had not experienced before. At first, the perspective seemed to be: “We’ve lived through […]
3 min read
Global insurance broker Willis Group Holdings (NYSE: WSH) recently announced plans to deliver on its Client Advocate Model across Canada and thus increase market share and revenues in this region. In lieu of this plan Willis will relocate its regional headquarters from Montreal to Toronto, a strategic move that will enhance the Company’s presence in […]
By Canadian Underwriter | August 30, 2005
2 min read
The Federal Motor Carrier Safety Administration recently issued new hours-of-service rules for commercial truck drivers to replace those that had been vacated by a U.S. Circuit Court of Appeals over a year ago and insurers claim these rules allow for too much time behind the wheel. Some of these old proposals are part of the […]
By Canadian Underwriter | August 25, 2005
1 min read
The Ontario government recently implemented measures so that insurers must offer policies that allow good drivers to sever their records from bad drivers in the same household. Insurers traditionally look at all licensed drivers in the same household when setting a premium rate. As a result “clean” drivers had to pay higher rates if another […]
By Canadian Underwriter | August 23, 2005
Marsh & McLennan Cos. Inc.’s risk capital unit is selling an additional 1.85 million Axis Capital Holdings Ltd. common shares in a block trade, Axis Capital says. Receiving all net proceeds from the sale half of its current holdings of Axis Capital shares is the founding investor of the Pembroke, Bermuda-based specialty insurer and treaty […]
By Canadian Underwriter | August 19, 2005
Aon Corp.’s outlook has been revised from negative to stable, according to Standard & Poor’s Rating Service, which has also affirmed its ‘BBB+/A-2’ counterparty credit rating on Aon. S&P credit analyst Steven Ader says the outlook on Aon has been revised because predictions indicate that the Copmpany will "continue to be successful in implementing its […]
By Canadian Underwriter | August 11, 2005
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