Risk

Negligence Versus Intention

Of all liability claims that can be presented to an insurer, allegations of sexual abuse represent a special challenge. These claims often involve mixed elements of negligent and intentional acts. As well, there may be both innocent and culpable insureds seeking indemnity under the policy. A recent decision by the Ontario Court of Appeal has provided new direction which could have significant impact on insurers.

June 30, 2003

8 min read

Intuitive Inspections

Mobile technology, coupled with a rethink of traditional ways of producing inspection reports, can cut significant costs, improve efficiency and speed up turnaround for underwriters and inspectors. Underwriting is the critical, if cumbersome, lynchpin of the insurance transaction process. Delays, paperwork and requests for information can stretch the vital risk analysis function to days and […]

June 30, 2003

4 min read

On The Move (July 01, 2003)

The Centre for Study of Insurance Operations (CSIO) has named David Patrick as interim CEO. He is former senior vice president, insurance solutions and services with CGI. Aviva has appointed Patrick Snowball group executive director, general insurance. The company’s general insurance business in Canada, Ireland and Asia will report to Snowball. Disaster Kleenup International (Canada) […]

June 30, 2003

1 min read

Reinsurance: Place Your Bets

Financial rating downgrades, market withdrawals and companies going into runoff have dominated media reports on the global reinsurance sector of the property and casualty insurance industry. Much the same applies to Canada's reinsurance sector, which in the span of a 12 month period has undergone dramatic consolidation in the number of players if not in "real" premium capacity. With reinsurers operating in Canada having for the second consecutive year brought home rate increases of 30%-plus for 2003 renewals, the obvious question is why the sector continues to attract negative growth outlooks from the rating agencies. The answer lies in the multi-billion dollar adverse reserve adjustments made by global reinsurers over the past two years, and just when and to what extent this "loss drain" from prior years will come to an end. Specifically, the rating agencies are concerned over whether the parent owners of these global reinsurance carriers will continue to provide capital support. Also, commentary from senior managers of reinsurance and primary insurance companies suggests that the financial security of reinsurers has replaced the "old school relationship" approach to which companies were able to participate in insurer programs. But, with reinsurance capacity remaining scarce in certain classes of business, such as auto liability, insurers admit that they sometimes have to "place their bets" in settling for reinsurance from a less-than top-rated reinsurance carrier.

June 30, 2003

10 min read