Issue 2002-48: December 3, 2002
This newsletter is for members of the Canadian Insurance Industry, and those who serve it. The newsletter is published weekly, and notes information mostly about the use of the Internet and related technologies in the industry. Some is international, where we feel it is relevant to Canada.
Statistics and Reference
Earnings go from bad to worse for Canada's P&C insurance industry: IBC Quarterly report Perspective.
It is definitely not business as usual for Canada's property and casualty insurance industry. In its quarterly report released today, the Insurance Bureau of Canada states that "the current insurance market is very difficult." "Consumers are facing higher prices, changes in coverage, and the withdrawal of some insurance companies from certain markets," says Paul Kovacs, IBC's chief economist. "Insurers are actively working to re-establish healthy earnings. 2001 was the worst year on record, but earnings fell 22 per cent during the first nine months of 2002, making a bad situation even worse," Kovacs says. Announcement and full Perspective at http://www.insurance-canada.ca/refstat/canada/IBCPersp200211.php
Fixed Products Continue to Drive U.S. Life Insurance Sales: LIMRA.
Led by continued strong interest in products with guaranteed returns, individual U.S. life insurance sales through the third quarter of 2002 registered gains in premium, face amount, and number of policies sold, according to LIMRA International's quarterly survey. More at http://www.insurance-canada.ca/refstat/other/LimraLife200211.php
Marketing
The 4 Ps of E-marketing: Personalization, and Examples, by Stefan Eyram.
Simply put, personalization is getting the right message, with the right content, to the right person, at the right time and using the right medium. This is where the power of e-marketing really sparkles. Article Part 3 at http://www.insurance-canada.ca/market/canada/SEyramPers200211.php
Insurance Products
Investors can increase their buying power with leveraged loan investing; National Life introduces a flexible and convenient program.
Investors looking to increase their wealth through a leveraging strategy can access more capital to take advantage of current low market prices. Through National Life's Segregated Fund Leveraged Loan Program, clients with non-registered assets can use existing savings to accelerate their investment buying power. With low interest rates, guarantees on principal deposits, and a variety of loan options and re-payment plans, the program offers convenience, flexibility and a relatively low-risk investment. All loans are fully underwritten by TD Canada Trust. More at http://www.insurance-canada.ca/market/canada/NatLifeSeg200211.php
Insurance Business, eBusiness and Technology
New Brunswick Select Committee ignores consumers in auto insurance report: IBC.
The insurance industry is disappointed with the results contained in a report on how to control automobile insurance costs in New Brunswick. More at http://www.insurance-canada.ca/ebusiness/canada/IBCNBauto200211.php
Innovative Insurance Net-Based Initiatives To Be Honored by Insurance & Technology, InSystems and Celent.
The 2nd Annual Insurance Innovators Award created to recognize the use of Internet technologies to improve business relationships in the insurance industry has been launched by InSystems, Celent, and Insurance & Technology. The Insurance Innovators Award recognizes an innovator who has acted as a change agent by advancing Internet education, and/or the adoption of Internet technology, in an insurance company or insurance industry association. More at http://www.insurance-canada.ca/ebusiness/announce/InSystemsAward200211.php
CGI to Acquire Key Assets of INSPire Adding to Its North American Insurance BPO Offering.
CGI Group Inc. today announced the acquisition of certain assets of INSpire Insurance Solutions Inc. for CDN$8.5 million in cash. The Fort Worth-based firm has revenues of CDN $41 million. The acquisition is expected to close on November 29, 2002 and will be accretive to CGI's earnings immediately. With this acquisition, CGI becomes one of the premier business process outsourcing (BPO) providers within the P&C insurance sector in North America. More at http://www.insurance-canada.ca/ebusiness/announce/CGIINSpire200211.php
Managing Relationships and Customer Service
InSystems eXterity to Enrich Group Insurance Web Self-Service Experience for Canada Life's Group Insurance Customers.
InSystems, a leading provider of e-business solutions for financial services organizations has signed an agreement with Canada Life for additional portal technology that will advance Canada Life's competitive position among leading insurers web-enabling Group Insurance customers. More at http://www.insurance-canada.ca/ebusiness/announce/InSystemsCL200211.php
Pricing & Customer Segmentation Replaces Bells & Whistles As Online Discount Brokerage Mantra: Gomez.
Internet discount brokers are making fewer feature enhancements to their Web sites and are fine-tuning pricing and customer segmentation strategies to boost top and bottom lines as the prolonged market downturn shows signs of finally abating, according to the Q4 2002 Internet Discount Broker Scorecard released today by Gómez, Inc., the Internet Quality Measurement firm. More at http://www.insurance-canada.ca/ebusiness/other/GomezOLB200211.php
Distribution
Commission and Compensation Practices in Worksite Marketing: Eastbridge Report.
Is your compensation package competitive enough to attract—and retain—quality worksite producers? How are others in the industry compensating producers, especially the key worksite players? How are enrollers compensated and what impact does this have on producer commissions? More at http://www.insurance-canada.ca/distribution/canada/EastbridgeWS200211.php
CSIO Insurance Portal Status Update
Week ending November 29: Four more brokers were added to the portal this week, bringing the total to 13 now.
Claims
Accident Support Services Ltd. Begins 6-Month Pilot with Owen Sound Police Service.
Accident Support Services Ltd., Facilitators of Collision Reporting to the Insurance Industry, is pleased to announce that on December 12, 2002 we will begin a 6-month pilot project with the Owen Sound Police Service. The Owen Sound Collision Reporting Centre will provide enhanced value to the public in the investigation of vehicle collisions. More details at http://www.insurance-canada.ca/claims/announce/AccSuppOS200211.php
ACORD Certifies New Standard For Claims Investigation.
Technology Standard Validated by Accenture and ISO in Successful Test.
A new product in the fight against insurance fraud was voted on and approved at ACORD's Standards Subcommittee meeting in San Francisco last week. The ACORD XML claims investigation message standard was developed to help insurers share claims and investigations data more efficiently. More at http://www.insurance-canada.ca/claims/other/ACORDClaims200211.php
Policy Management
German Broking Firm is inreon's 100th Member; ACORD Standards Certification.
inreon, the Internet-based reinsurance trading platform has announced its 100th member. German broking firm Koenig & Reeker has joined 81 other cedants and brokers from 17 countries across Asia, North America and Europe that have signed membership agreements in order to trade via the platform. In addition there is now a panel of 18 international reinsurers offering capacity online.
inreon, the Internet-based reinsurance trading platform, has become the first body within the global reinsurance market to be certified by ACORD for implementing risk placement standards. More at http://www.insurance-canada.ca/poladmin/other/inreon200211.php
from Doug:
A number of people indicated that our seminar date of December 3 was bad timing, so the Practising People Power: Knowledge Management seminar has been deferred and will be run in mid to late January. The panel discussion on ePaperclip or "smart" underwriting will be a larger part of the seminar as well. The cold here today is foot-numbing; but cheer up, there are still three more shopping Saturday's before Christmas.