Risk
Hurricane Lili will not be the insurance loss originally feared, predicts California-based Risk Management Solutions.Originally, when Lili was a category 4 hurricane, 24 hours before landfall, the company’s probability system at www.riskonline.com had predicted mean losses of US$3.2 billion. There was also a 20% probability of losses below US$1 billion at that time.Now, though, Lili […]
By Canadian Underwriter | October 4, 2002
1 min read
It was already difficult for organizers to get liability coverage for public events before September last year – now more so than ever. Insurers are retrenching and the liability coverage required for outdoor events has been difficult to source. Motor sports, air shows, parades and festival types of events have particularly high risks for liability […]
September 30, 2002
4 min read
If you are the owner or principal shareholder of a company such as an agency or brokerage, you likely put your energies into dealing with day-to-day issues and growing the business. However, you need to recognize that you will exit the business at some point, and this means investing time now in making sure that process happens smoothly.
6 min read
Soaring commercial insurance rates post-9/11 have triggered what many risk analysts believe will be the biggest withdrawal of premium from traditional coverage ever seen - exceeding the retreat of billions of dollars brought on by the liability crisis of the mid-1980s. And, similar to the commercial exodus from insurance brought on by the liability crisis, insureds are being forced to look at self-insurance options not only as a result of cost, but severe cutbacks by insurers in terms of cover and capacity across nearly all lines of business. As a result, alternative risk transfer (ART) is expected to account for about half of all U.S. commercial risk dollars by the end of 2003, according to A.M. Best. As part of this drive, the rating agency predicts record growth in the formation of captives for this year through to 2004. Is Canada following this global trend? Specialty risk solution experts CU spoke to say it is already happening.
8 min read
A survey carried out by the Risk and Insurance Management Society Inc. (RIMS) of 450 member companies suggests that securing adequate terrorism coverage remains highly difficult. The survey results show that 71% of respondents are finding it “very difficult” or “impossible” to obtain adequate terrorism insurance. About 84% of the respondents indicated that they did […]
For direct response insurers, the issue in today's "hard market" of escalating personal insurance premium hikes is not getting the phone to ring. It is more about how to handle the influx of calls from price shoppers, and at the same time achieve profitability, companies say.
I have been asked a couple of times to publicly provide a "brokers perspective" on the current market situation as it relates to Atlantic Canada. While I certainly would not consider myself qualified to speak for all of the approximately 2,900 brokers in the region "which handle about $2 billion in annual premium" I have had the opportunity to speak with many brokers who have identified a number of common concerns and issues.
With the birth of the Centre for Study of Insurance Operations' (CSIO) Internet portal, brokers and insurers can now "vamp up" their rating/ underwriting processes through "rules engine" technology which could produce significant savings in money, time and customer retention.
5 min read
Do you build detailed plans for your brokerage? Do you plan a budget? Do you forecast the changes that are coming in the industry and for your staff? Of course you do. Looking ahead and planning for the future are key activities that keep us prepared for what will come, or what may come. But how often do you consider what changes will happen to your technology? Do you take time to look at how well you are using your systems to create competitive advantage?
From hard to worse. This is the situation facing the nation's brokers as they try to communicate rising premiums to clients, at the same time they are struggling to find markets for their business. From B.C. to Newfoundland the struggles are shaping up as brokers try to place business in a market that seems ambivalent, if not outright hostile, to accepting risks. And all of this turmoil is taking place amidst a changing regulatory playing field.
10 min read
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