Risk
While the total value of the Canadian property and casualty insurance marketplace jumped by almost a third last year, the increased revenue benefits did not filter down to higher net earnings for the independent brokerage community, brokers say. In fact, independent brokers point out that they are not making money on personal lines business at all due to the rise in their operating costs brought on by the "hard market". And, although market conditions are shaping up for improvement next year, brokers fear that a slow return of underwriting capacity combined with the overhead cost incurred from the past two years of lean running could spark a new wave of consolidation within their ranks. At the very least, the independent brokerage community will be facing a year of "belt tightening", they say.
September 30, 2003
11 min read
With all the headaches experienced in the Canadian property and casualty insurance industry right now, not the least of which are struggling results from a volatile auto insurance product, it begs the question: "Why would any insurer want to do business here?" The Canadian industry brings many challenges - stressed financial results, strict capital requirements and a higher tax burden - sources say. These "three strikes" could add up to an "out" for global parents choosing whether or not to put precious capital into this market, they warn.
10 min read
Brokers serving the bigger Canadian commercial risk pool outside of the mega international corporations say that rising insurance industry profitability has not softened the tough approach of insurers to pricing, terms and availability of coverage. But, with many commercial clients across the corporate earnings spectrum suffering through their third consecutive year of premium increases, there is acknowledgement by insurers of growing "market rate fatigue", brokers add, which is bringing about a slow softening to the pricing of property risks with even a few new underwriters looking to venture into the broader commercial marketplace.
8 min read
The insistence on errors and omissions (E&O) insurance for virtually any kind of professional exposure has created some waves in this specialty market, particularly for engineers. Poor results, increasing claims and emerging exposures are prompting insurers to aggressively seek rate adjustments, carefully monitor loss trends, and re-evaluate specific coverages for many lines of E&O. In some cases, such as in Alberta, the regulator is beginning to question whether the approach of insurers falls within accepted business boundaries or whether their actions fall under "tied selling".
6 min read
It is the largest product liability verdict so far this year - and one unheard of within Canada's kinder legal system. A Florida jury this past August ordered a Wisconsin pool-pump manufacturer to pay US$104 million in compensatory damages to the family of a boy who sustained permanent brain damage after his arm became stuck in a pool drain three years ago. And the whopping $104 million is just the beginning. Further punitive damage awards are reported pending, as the pool pump company was allegedly aware of a manufacturing defect for years, yet did nothing.
Automobile theft costs Canadians close to $1 billion every year. To combat this alarming trend, vehicle owners should adopt a more proactive technological approach to risk management – and the insurer must provide the incentive to do so. Automobile insurance has become an important concern for all Canadians, as increasing costs and accessibility have brought […]
3 min read
For a company to uphold its corporate brand requires more than just integrating a consistent look and feel into every communication – it means embracing the concept of “brand critical”. By definition, mission critical refers to those elements of an organization that are an absolute necessity for revenue generation. This also refers to the elements […]
A new U.S. study suggests regulators should cut financially unstable insurers off at the pass, rather than trying to “rehabilitate” them. Commissioned by the U.S. Council of Insurance Agents and Brokers (CIAB) and prepared by Stewart Economics Inc., the study looks at the impact on policyholders of state regulatory practices with regards to solvency. The […]
1 min read
Rating agency A.M. Best has downgraded the status of Ontario-based Coachman Insurance Co. to “B (fair)” from “B+”, and placed a negative outlook on other subsidiaries of Saskatchewan General Insurance (SGI). Overall, the rating agency has affirmed the “A- (excellent)” financial strength rating of SGI Canada with a stable outlook. But, while subsidiaries SGI Canada […]
Lawyers’ Professional Indemnity Company (LAWPRO) announces Kim A. Carpenter-Gunn, partner with Waxman, Carpenter-Gunn, has been appointed chairman of the board. She has been a board member since 1995. Cunningham Lindsey Canada Ltd. has named Michael Lowthian as executive general adjuster of its Canadian Commercial Risk division in Toronto, ON. He brings over 35 years of […]
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