Issue 2004-29:   Aug 10, 2004

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.

Seminar

P&C Brokers and Insurance Companies are increasingly deploying technology applications. Join your colleagues on August 11 for Insurance-Canada's 6th annual Broker Technology seminar, which will showcase how technology implementations are producing business successes. Brokers: Putting Technology to Work features leading practices like Knowledge Management, front-edge technologies like Web services, new inter-organizational communications applications, and several perspectives on getting value from your investment. (There is room for a couple of last minute registrations....doug)

Managing Relationships and Customer Service

Online kit provides resource for complaint handlers: The Financial Services OmbudsNetwork.

The Financial Services OmbudsNetwork has added a Resource Kit to its Web site that lays out a selection of themes related to financial consumer complaint-handling and provides links to reference material and tip sheets. The Resource Kit includes 10 complaint-handling themes, based on a review of publicly available material.

CSIO Insurance Portal Status Update

Week ending Aug 6: There are now 76 brokers signed up and technically integrated to the portal. It is also the height of the summer vacation period.

Claims

ICBC and Speedy Glass reach settlement.

ICBC and Autostock International's Speedy Glass business unit have reached an agreement to settle an action brought by ICBC against Speedy Glass for failure to comply with ICBC's Glass Express program policies.

Business of Insurance

North American Insurers Find Growth in Emerging Markets in Asia, Europe and Latin America: TowerGroup.

American insurers currently are pursuing global expansion at a pace rivaling that of European insurers' entry into US markets in the early 1990s. TowerGroup finds that more favorable economics, key demographic trends and the gradual dissolution of international barriers to entry underscore the high growth possible for US insurers in key emerging markets.

Sale of Royal & SunAlliance UK Life Business Confirmed.

Royal & SunAlliance (R&SA) today announces the sale of its UK Life operations to Resolution Life Group for a consideration of £850m comprising £750m of cash together with £100m of preference shares. Resolution Life Group is a newly formed group that has been established for the sole purpose of buying and running closed UK life funds.

Marketing and the Market Place

Progressive Insurance Survey Finds That For $500 People Are More Likely To Switch Political Parties Or Give Up Their Sense Of Smell Than To Shop For Auto Insurance.

A recent survey of 1,000 drivers by the Progressive group of companies (third largest auto insurance group in the country) revealed that for $500 many people would be willing to give up their sense of smell for six months or go one round with Mike Tyson. But only two in ten consumers will shop around for auto insurance, which could be a much easier way to put $500 in their pocket.

Job Loss, Rising Premiums Take Toll on USA Employer Health Coverage in 2003: HSC Study.

The proportion of Americans under age 65 with employer health coverage fell dramatically from 67 percent in 2001 to 63 percent in 2003, translating into almost 9 million fewer people with employer coverage after accounting for population growth, according to a national study released today by the Center for Studying Health System Change (HSC).

Skills and Human Resources

Promising Cross-Selling Strategies at Financial Services Companies Often Bog Down In Execution, Respondents to Towers Perrin Survey Confirm.

Cross-selling ranks as a top strategic priority at financial services companies, but numerous barriers, including lack of product knowledge and sales manager support, stand in the way of success, according to a new survey from Towers Perrin. "Cross-selling implementation plans often look promising on paper, but their success varies widely," said Mark Flavin, principal and leader of the firm's HR Services business sales force rewards consulting practice. "In general, they fall short of producing the intended results, especially when the incentive plans are not properly targeting the right employees, which we found to be an extremely common problem."

eBusiness and Technology

IBM Provides Mainframe-Powered Disaster Recovery Solution to the Principal Financial Group.

The Principal Financial Group®, the nation's 401(k) leader and premier provider of employee benefits, and IBM, today announced the completion of a state-of-the-art infrastructure that is designed to be able to restore the powerful systems of The Principal® in less than 24-hours, in the event of natural or unnatural disaster.

Consumer Information

Little payoff with credit insurance.

Recent articles in both the Toronto Star and The Globe and Mail question the value of credit – or balance – insurance. Offered by the banks and some of the major retailers, this type of coverage insures the unpaid balance on your credit card against circumstances that could prevent you from paying it off, such as serious illness or death.

Newfoundland Auto insurance reform is here.

Government Services Minister Dianne Whalen announced today that Bill 30 was proclaimed into law August 1, 2004 and consumers will soon see the savings reflected on their auto insurance bills. The mandated reductions contained in the auto insurance legislation will save consumers an average of 15 per cent.

IBC: Newfoundland's Bill 30 just a short-term fix.

The insurance industry is deeply troubled that the government of Newfoundland and Labrador has proclaimed an insurance bill that is not in the long-term best interest of consumers. Insurance Bureau of Canada will put forward the industry's concerns during detailed discussion of that legislation at public hearings slated for the fall.

Manitoba Public Insurance holds the line on rates for 2005.

For the sixth year in seven, Manitoba Public Insurance will hold the line on auto insurance rates, requesting no overall increase in revenue in its 2005/06 application to the Public Utilities Board.

Tornades à Châteauguay, Durham et St-Albert - Le BAC informe les assurés.

Le Bureau d'assurance du Canada (BAC) désire informer les citoyens des municipalités de Châteauguay, St-Albert et Durham, touchés par les tornades du 31 juillet que la majorité des contrats d'assurance habitation, automobile et des entreprises couvrent les dommages matériels occasionnés par ce type de catastrophe naturelle.

from Doug:

A busy weekend just past, with visits to friends and family, and a driving dry-run of our annual bus trip. This year, this coming Saturday, to Norfolk County for a day tripping the heritage trails along the North shore of Lake Erie. I hope the weather will be kind.