Issue 2003-21: May 27, 2003
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
Ontario Auto Insurance Rates for First Quarter of 2003: FSCO.
Ontario private passenger auto insurance rates rose during the first quarter of 2003 (January 1, 2003 to March 31, 2003). The rate applications approved during the first quarter of 2003 indicate an average increase of 7.32 per cent. The average cost of auto insurance in Ontario at the end of the first quarter of 2003 was 19.16 per cent higher when compared with the end of the first quarter a year earlier. The average cost of auto insurance is now 20.09 per cent higher than the third quarter of 1996. More at http://www.insurance-canada.ca/refstat/canada/FSCORates200305.php
North American Life Insurance Activity Declines 9.1% in April: MIB.
April applications for life insurance in North America declined 9.1% year-over year; the MIB Life Index's sharpest one month decline since February 2001. U.S. activity was off 9.6%, marking the seventh consecutive month of diminished activity, with Canadian applications declining 4.9% compared to the same period last year. With April declines, Canada has given back all 2003 year-to-date gains in application volume when compared to the same period last year. More at http://www.insurance-canada.ca/refstat/canada/MIB200305.php
Canadian Economic Outlook, May 2003: SwissRe.
In general, indicators of the Canadian economy over the past month still point to respectable performance in 2003. Monthly gross domestic product (GDP) by industry grew 0.2% in February, while January was revised upward to 0.5%. The index of leading indicators rose 0.2% in March and is up 4.7% over the previous year. More at http://www.insurance-canada.ca/refstat/canada/SwissReCdnOL200305.php
Business of Insurance
ING (U.S.) and Manulife Financial sign employee benefits agreement.
ING's employee benefits division, a unit of ING's U.S. financial services operations, and Manulife Financial have entered into an agreement to allow the two companies greater cross-border accommodation for their respective clients with employees in both the U.S. and Canada. More at http://www.insurance-canada.ca/business/canada/INGManul200305.php
Product and Policy Management
Camilion Solutions Announces Insurance Innovator 3.0 for Enterprise Product Management (EPM).
Camilion Solutions, Inc., the leading supplier of Enterprise Product Management (EPM) solutions to the financial services industry, today officially introduced its Insurance Innovator 3.0 Suite of EPM products. Developed over the past two years, Insurance Innovator reflects the talents of a seasoned team, whose many years of experience in creating and implementing insurance industry solutions are realized in this elegant suite. More at http://www.insurance-canada.ca/poladmin/announce/CamilionEPM200305.php
Distribution
Shifting the Hat - Broker's Role Responds to the Market: by Sorin Rogojinaru.
Markets lack capacity, Underwriters increase premiums, customers are not satisfied with the new conditions ... if all these look familiar then it is time to shift hats. Brokers need to balance the power between Customers and Underwriters. Article at http://www.insurance-canada.ca/distribution/canada/Sorin200305.php
CSIO Insurance Portal Status Update
Week ending May 23: No update available this week.
Marketing Insurance and the Market Place
Baby Boomers Managing Finances Online: eMarketer.
A recent report from Knowledge Networks indicates that while online banking accounts are popular among Baby Boomers of varying income levels -- 16% of those making less than $35,000, 24% of those making between $35,000 and $75,000 and 30% of those making more than $75,000 report having them -- a much smaller percentage of each income level has online brokerage accounts. Baby Boomers making over $75,000 claim the highest percentage of Internet brokerage accounts with just 14% of the segment. More at http://www.insurance-canada.ca/market/other/eMarketerBoom200305.php
Claims
Special Damages Allowable in New York State: Burgio Kita Curvin.
Estimates regarding the "possible" or "probable" cost of future medical care for a plaintiff are not allowed in New York since such opinions are deemed speculative and without prohibitive value. More at http://www.insurance-canada.ca/claims/other/BurgioNY200305.php
Consumer Information
One Size Doesn't Fit All: The Co-operators.
Did you know that less than six per cent of children who should be in a booster seat, when travelling in a vehicle, currently are? Sometimes referred to as, "The Forgotten Child", children over 40 pounds who have outgrown their car seat are not currently required by law to use a booster seat and often move to an ill-fitting adult seat belt. Booster seats allow a child to safely use the adult seat belt by positioning it properly over their body. More at http://www.insurance-canada.ca/consinfoauto/Co-op200305.php
Managing Relationships and Customer Service
Discount Brokers Fine-Tune Online Experience In Preparation For Market Rebound, Gómez Scorecard.
Amid the unrelenting equities trading slump, discount brokers remain acutely focused on Web site usability and process enhancements that make the online customer experience more compelling and profitable for investors and firms alike, according to the Q2 2003 Internet Broker Scorecard released today by Gómez, Inc., the leading provider of Internet Channel Effectiveness solutions. Fidelity's emphasis on improved usability, enhanced research and accounting tools as well as active trader services help propel firm to the number-one spot, overtaking perennial winner Schwab. More at http://www.insurance-canada.ca/ebusiness/other/GomezOLB200305.php
Technology and e-Business
CSC Rolls Out Insurance Software Products Compliant With Company's New Enterprise Integration Architecture.
Computer Sciences Corporation (NYSE: CSC) today announced the availability of new life, annuity, and property and casualty (P&C) insurance software that complies with the company's new global standard for enterprise integration architecture, CSC e4. More at http://www.insurance-canada.ca/ebusiness/announce/CSCEIA200305.php
from Doug:
Winding up our preparations for the "Standards in Underwriting" seminar this Friday - see http://www.insurance-canada.ca/seminars/seminar20030530.php - while organizing the speakers and agenda for our August 12 fourth annual full-day seminar for P&C brokers.
The promised deluge of rain on the weekend gradually changed into sunny afternoons both days here in Toronto - made for relaxing gardening and outdoor activities.