Issue 2003-50:   December 16, 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.

Reference and Statistics

Weaker P&C Insurer Results in Q3, 2003 Stem from Auto Losses: IBC.

Canada's property and casualty insurers posted weaker financial results in the third quarter of 2003. The strongest downward influence came from the auto insurance sector, where rate freezes in several jurisdictions combined with an absence of government measures to control claims costs have not allowed insurers to lower premiums for policyholders.

Distribution

Equitable Life of Canada Completes Installation of Illustration System from Novinsoft Inc.

Novinsoft Inc., a leading developer of Illustration Systems for the Canadian life insurance industry is pleased to announce the completion of their initial Illustration System release for Equitable Life of Canada using the Novinsoft Illustration Framework.

ACT Issues Phase One of Multi-part Report on Agency Use of Technology in Sales and Marketing.

The Agents Council for Technology (ACT) has published phase one of a new multi-part report to help independent agents and brokers build a disciplined, sales-driven agency culture that positions the agency to take advantage of technologies that enhance its marketing, sales, and sales management processes.

Business of Insurance and Products

Benefits Canada names Sun Life Financial No. 1 for Defined Contribution Pension Plans.

Sun Life Financial Inc. has been ranked the number one defined contribution pension plan supplier in Canada in terms of assets under administration according to the 2003 Defined Contribution Plan Report, published by Benefits Canada magazine.

Claims

EIFS: History and Review of siding 'Failure' Mechanisms: from I-ENG-A.

No matter the type of system or façade (EIFS, Stucco, Stone, Brick, Siding, Etc.), the performance of that system is dependent on not only the proper installation of the systems, but also the detailing of penetrations, transitions and interfaces with adjacent façade materials or allied exterior building envelope components, Without attention to detail, all façade systems are prone to failure.

AADCO Announces Direct Supplier Program Agreement With Co-Auto Co-Operative Inc.

AADCO Automotive Inc. has signed a Direct Supplier Program Agreement with Co-Auto Co-Operative Inc. ("Co-Auto"), the largest Co-operative Buying Group for Ontario New Car and Truck dealers made up of 470 members and 580 associate members. This agreement makes AADCO the Direct Supplier to Co-Auto's 1050 member and associate member establishments in Ontario for the use of LKQ (quality used Original Equipment Manufactured auto parts), focusing on 3-8 year vehicle parts.

Managing Relationships and Customer Service

DWL Named Leader in CDI Solution Space According to Meta Group.

DWL, the leader in Enterprise Business Services software, has been identified in the "leader" category among vendors identified in a recent Meta Group report, Meta Group Market Review: Customer Data Integration, 2003/2004. The new methodology to track emerging and fast growing technology markets, looks at the major classes of CDI solutions and key criteria for solution evaluation.

CSIO Insurance Portal Status Update

Week ending December 12: No report available this week.

Policy and Product Management and Administration

Product Guarantees: The Price of Doing Business for Insurers: Tillinghast - Towers Perrin Survey.

Most life insurance company CFOs believe that "guarantees" are critical to the sale of products such as universal life and variable annuities, given the volatile capital markets of the past few years, according to a recent Tillinghast -- Towers Perrin (Tillinghast) survey. Guarantees on variable annuity (VA) products are particularly important - at least 75% of respondents rated both guaranteed death and living benefits as extremely or very important to the sale of their products relative to other drivers, such as commission levels, brand and sales, marketing and operational support, and other product features.

eBusiness and technology

Hyland's Focus on Healthcare Products Nets More than 50 New Customers.

Hyland Software, Inc., developers of OnBase® integrated document management (IDM) software and a leading, global provider of electronic document management solutions, has released one product and two processors specifically for the healthcare industry.

IBM and ATB Financial sign largest IT services agreement of its kind in western Canada.

IBM Canada Ltd. and ATB Financial, one of western Canadas largest financial institutions, announced today that they are extending their business relationship with a new five-year, $92.5-million agreement -- where both banking applications and infrastructure support are delivered in response to the financial institutions business demands and the needs of its customers.

Marketing and the Market Place

Older Doesn't Equal Wiser When it Comes to Knowledge About Auto Insurance: Progressive.

Wine and cheese may improve with age, but knowledge about auto insurance doesn't. In a recent online survey of 1,000 teens and 1,000 adults, the Progressive group of companies (third largest auto insurance group in the country) found that adults were no more knowledgeable about how their auto insurance works than were teens.

Skills and Training

How to Have the Important Conversations You Would Like to Avoid, by E. Whitmore, Stitt Feld Handy Group.

There are conversations we all wish we didnt have to have. You think your boss gives all the best assignments to your colleague. Your roommate doesn't clean up after herself. You and your brother can't agree how to share the family cottage you both inherited.

Consumer Information

What is Critical Illness? by Ivon T. Hughes.

Critical Illness (CI) is a relatively new coverage in Canada that guarantees the payment of a lump sum benefit between $50,000 to $2,000,000 if you are stricken by a critical illness such as cancer or a heart attack. CI provides the financial resources to fill the gap that may be created between health insurance plans and other expenditures you may have or help replace lost income.

Ontario Government Publishes Questions and Answers about Auto Insurance Rates, and Tips for Buying Car Insurance.

With recently introduced legislation to freeze temporarily auto insurance rates, the Ontario Government has published two documents to help consumers better understand what is happening and why.

Co-operators auto insurance customers in Nova Scotia receive refunds

Approximately twenty-three thousand Nova Scotia auto insurance clients of Co-operators General Insurance Company will receive reimbursement on their auto insurance policies in the coming days.

Manitoba Claims costs spur modest auto insurance premium increase for 2004: MPIC.

At a time when other Canadians are seeing double-digit increases in auto insurance rates, Manitoba motorists will pay just 3.7 per cent more overall next year the first general rate increase in six years.

The Insurance Community

Manulife Financial Donation Supports Health Care Education at Conestoga.

Manulife Financial, a leading Canadian-based financial services company that offers a diverse range of financial protection products and wealth management services, announced today a major community investment to promote and advance quality health-care education. The company will donate $500,000 over a five-year period to Conestoga College Institute of Technology and Advanced Learning.

from Doug:

The Christmas season is now in full swing. Snow on the ground, many buildings with decorative lights, decorations everywhere, Salvation Army at store fronts, greetings arriving from friends and relatives. Take a moment from your busy schedule, too, to think of others who don't have as much health, food, friendship, as we celebrate this Christmas season.