Issue 2003-31: August 5, 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.
Marketing Insurance and the Market Place
More Employers Look to Voluntary Benefits as Economical, Attractive Solution to Rising Costs: LIMRA.
Twenty-five percent of the nation's employers -- an estimated 300,000 companies, large and small -- are interested in introducing, or expanding their offerings of, voluntary benefits, insurance programs that employees pay for but are able to get at lower cost through their workplace.
Market Chasing Mutual Fund Investors Earn Less than Inflation: DALBAR.
DALBAR's 2003 update to the Quantitative Analysis of Investor Behavior (QAIB) shows that investors continue to chase investment returns to the detriment of their pocket books. Motivated by fear and greed, investors pour money into equity funds on market upswings and are quick to sell on downturns. Most investors are unable to profitably time the market and are left with equity fund returns lower than inflation.
Conning Research: Long-Term Care Insurers Achieve High Growth at the Expense of Profitability.
Despite high historical and projected growth, the entire long-term care insurance industry and many of its leading companies are destroying value, according to a new study by Conning Research and Consulting, Inc. "We have seen a sustained period over which many of the market leaders have under-priced their individual long-term care products in an effort to rapidly grow market share," said Michael Weinstein, Director of Research at Conning.
Claims
Transport Canada Approach to Vehicle Theft Protection Flawed: IBC
Insurance Bureau of Canada (IBC) strongly cautions Transport Canada that its proposed regulatory approach to electronic immobilization will cause a disservice to consumers and could set back the fight against vehicle theft. Electronic immobilizers are systems that prevent a vehicle from starting unless a specific electronic code is used. But not all immobilizers are created equal.
Boomerang Tracking chooses California for launch into U.S.
Boomerang Tracking Inc. is pleased to announce that Boomerang Tracking Corporation, its wholly-owned subsidiary, has chosen the state of California to launch its new GSM-based Boomerang tracking device. Boomerang Tracking Corporation will enter the U.S. with the advanced proprietary GSM-based Boomerang device, which recently received FCC (Federal Communications Commission) certification.
CSIO Insurance Portal Status Update
Week ending August 1: No changes to portal status this week. CSIO's Board met July 31. They renewed the call to their member companies to get rates for Ontario Property and Auto live as soon as possible and complete the Phase I rollout. The work on developing partnerships is moving along, but nothing to announce yet.
Business of Insurance
Sun Life Financial awarded IBM Canada's group health and dental benefits business.
Sun Life Financial's Group Benefits business has been awarded IBM Canada Ltd.'s employee group health and dental business, effective January 2004. Sun Life Financial is currently the incumbent provider for IBM Canada's group life insurance benefits as well as its group defined contribution retirement services. IBM Canada employs 20,000 people located in every major city across the country.
Managing Relationships and Customer Service
Great-West Life in discussions with Solium on share purchase plans.
Group Retirement Services, a division of The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company, is pleased to announce that it has agreed on the principal terms of an arrangement with Solium Capital Inc. to deliver an enhanced service solution to plan sponsors of capital accumulation plans offered by Group Retirement Services.
Product Announcements
Manulife Investments introduces five guaranteed investment funds to award-winning segregated fund lineup
Manulife Investments will add five new guaranteed investment funds to its roster of GIF and GIF encore segregated funds for Canadian investors. All five new funds are available starting today. "Manulife Investments offers one of the best selections of segregated funds in the industry, with more than 60 industry-leading funds from well-known money managers," said J. Roy Firth, Senior Vice President of Individual Wealth Management, Manulife Financial.
Low Cost Lifetime Protection - National Life Introduces e-Term 100 Insurance.
National Life is pleased to introduce expanded options for lifetime protection with e-Term 100 Insurance (eTerm 100). The company's newest product offers lifetime protection with full guarantees and Cost Of Insurance (COI) rates that are 12-15% lower than our universal life (UL) plans.
New Insurance Consumer Information
New Brunswick Throne Speech Focuses on a Bill to Lower Insurance Rates.
The introduction of a comprehensive bill to lower insurance rates for New Brunswickers retroactive to July 1 was the focus of the first Speech from the Throne of the 55th Legislative Assembly of New Brunswick.
New Brunswick Bill 1: Too Much, Too Late: IBC Responds.
New Brunswick auto insurers have been caught in a bureaucratic process that until now has effectively prevented insurers from providing relief for consumers. Bill 1 changes the rules so that insurers can immediately begin using lower rates as soon as they file their rate reductions with the Public Utilities Board.
Technology and eBusiness
GDC delivers essential risk location tools for the Insurance Industry.
GDC, a leading supplier of Geographically Intelligent Solutions have announced the Location Based Risk Evaluation (LBRE) Toolbox, a definitive set of software tools for the insurance industry to increase the accuracy of locating risk. September 2003 will herald a huge increase in the level of risk location detail demanded by reinsurers as the market starts its annual round of treaty renewal negotiations.
from Doug:
Our thoughts out to those who are suffering from the forest fires. Seems like Canada is receiving more than its fair share of incidents this year, but few of us would trade positions with ninety-five percent of the world's inhabitants - small consolation to those who are suffering.
Spent our Simcoe Day holiday at Fort York with a heritage display. The visitors from furthest afield were from Brisbane Australia, here on a week's conference. Enjoy your summer, and celebrate our heritage.