Issue 2003-38:   September 23, 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.

Claims

SAS® Claims Prediction for Insurance..

Given the current state of the insurance landscape, carriers competing for customers, dealing with rising claim rates and high loss ratios, the need has never been greater for insurers to establish and maintain a complete view of their current and prospective policyholders. A key part of this complete view is the specific claims risk that each customer poses to the company. Accurately predicting claims propensity throughout an organization can dramatically improve loss ratios and enables providers to charge lower premiums to low-risk customers.

CSIO Insurance Portal Status Update

Week ending September 19: No updates to report this week.

Reference and Statistics

North American Life Insurance Activity Shows 6.6% Decline: MIB.

Applications for life insurance in North America were off 6.6% in August on a year-over-year basis marking the seventh such decline in the last eight months. U.S. applications decreased 6.8% while Canadian applications decreased 4.7% when compared to the same period last year.

Individual Life Sales in U.S. Off Through First Half of 2003, LIMRA International Reports.

Despite strong growth in universal life and whole life products, U.S. individual life insurance sales declined through the first half of 2003, weighed down by the continued slump in sales of variable products tied to equity performance, according to LIMRA International's quarterly survey.

Distribution

Reducing Debt and Increasing RRSP Contribution Limits Priorities for 2004 Budget, says Advocis and CALU.

Canada's largest association of professional financial advisors urged the federal government this week to make a strong commitment to debt reduction and to increase RRSP contribution limits for Canadian saving for retirement.

Technology and e-Business

Just the Facts Planning and Budgeting for Your First Web Site: Nora Camps.

So you are starting a new business, because you believe there is a very real opportunity for you to succeed. Our experience shows that skewing your web site for success by investing in smart technology up front will actually contribute to the success of your business and save you considerable money over the first two years and beyond.

TowerGroup New Research: Mortgage IT Spending.

TowerGroup estimates that IT spending on automated mortgage collateral management systems will grow from $33 million in 2003 to $193 million in 2008. This major increase in spending will further streamline the home appraisal process, cutting the average time for a mortgage lender to complete a home appraisal from 6 - 10 days currently to 4 - 7 days by 2008.

Managing Relationships and Customer Service

GartnerG2 Says New CRM Solutions Allow Financial Services Providers to Achieve Next Level of CRM Sophistication.

Many financial services firms have taken large financial risks during the past few years by implementing customer relationship management (CRM) technologies before they were mainstream. As other firms start to adopt the proven technologies, the risk-taking, early adopting financial services providers must begin to implement the next level of CRM solutions to retain their competitive advantage, according to GartnerG2, a research service of Gartner, Inc.

Consumer Information and Community Involvement

Manitoba Public Insurance launches immobilizer anti-theft device loan plan.

Manitoba Public Insurance this week became the first Canadian automobile insurance company to offer a financing plan that encourages vehicle owners to install anti-theft immobilizer devices that meet the Canadian Theft Deterrent Standard.

Clarica education initiative - Grants seek to encourage leadership development at 42 Canadian schools.

Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, announced today that 42 publicly-funded schools across Canada will receive 2003 Clarica "Leaders for Tomorrow: Building skills today" education grants ranging from $1,000 to $5,000 each.

Prepare Before Extreme Weather Hits: Institute for Catastrophic Loss Reduction.

As the Hurricane Isabel continues on its approach toward southern Ontario, the Institute for Catastrophic Loss Reduction is reminding people to prepare themselves, their homes and their property for severe weather. "The time to prepare is long before the storm hits," says Paul Kovacs, Executive Director, Institute for Catastrophic Loss Reduction.

Business of Insurance

Manulife Indonesia acquires Zurich Financial Group business.

PT Asuransi Jiwa Manulife Indonesia has entered into an agreement to acquire the Indonesian life business of Zurich Financial Group, PT Zurich Life Insurance Indonesia (Zurich), subject to regulatory approval. As a result of Zurich's decision to exit the Indonesian insurance market, Manulife Indonesia was selected to protect the ongoing benefits of Zurich's policyholders.

from Doug:

Isabel turned out to be mild-mannered after all, thank goodness. Better forewarned and prepared than caught off-guard.
Enjoyed a tour of the Scottish Rite in Hamilton on the weekend. On land originally part of Loyalist land grant to Caleb Reynolds in 1796, this wonderful mansion was constructed in 1895 by George Tuckett, owner of Tuckett Tobacco, manufacturers of Margeurite Cigars and other products. The organist played a short recital on the 2800 pipe Cassavant organ in the 1923 Cathedral - tremendous sound. What a lot of history we have when we dig a bit.