Issue 2004-37:   Oct 6, 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.

Insurance Product Announcements

A Powerful New Travel Locator Service: CIGNA International.

International business travelers are more likely than expatriates to be unaware of emergency resources in the event they are faced with a situation requiring assistance. For their employers, perhaps even riskier than the travel is the danger of not knowing who is traveling at any given time and where they are in the world.

Policy Management

MIB´s e-Services Corp. Introduces New Tool to Enhance Life Underwriting Audits.

MIB Group, Inc., the largest North American cooperative for fighting application fraud in life, health, disability and long term care insurance, through its subsidiary, e-Services Corporation, is announcing the launch of its latest product, Audit Focus. Audit Focus lets life insurance direct writers and reinsurers audit all of their issued or assumed policies within the last 24 months, highlighting only those cases for review where a policy's issued rate class appears to be unsupported by the actual mortality risk.

eBusiness and Technology

DWL Ranks on 2004 Deloitte Canadian Technology Fast 50 List For Third Consecutive Year.

DWL, the leading customer data integration (CDI) solution provider, today announced that it has placed in the 2004 Deloitte Canadian Technology Fast 50 ranking for a third consecutive year. DWL continues to lead in an emerging technology space called Customer Data Integration (CDI) that, according to leading industry analysts following the space, has doubled in growth over the last year. DWL provides a market leading solution called DWL Customer™, which allows companies to create a single record of customer data enterprise-wide.

Canada Gets with IT: eMarketer.

eMarketer reports that 2004 will see the first significant increase in technology spending by Canadian businesses and government since 2001. Over the past three years, IT spending in Canada has remained essentially flat, ranging between CAD $92.0 billion and $93.0 billion. But Forrester Research predicts that, at long last, spending this year will reach CAD $96.0 billion, up 4.3%.

Largest Security Study Ever Conducted Finds Asia and South America Trail North America and Europe In Security Development and Best Practice Implementation: Survey by PricewaterhouseCoopers and CIO Magazine.

Asia and South America trailed North America and Europe in security and best practice implementation according to the 2004 State of Information Security study from PricewaterhouseCoopers and CIO magazine. The second annual study also finds external factors, including regulations and potential liability, are the primary forces driving security initiatives. The research identifies best practices to combat security threats and the degree to which they have been accepted and implemented by participating organizations.

Wireless Technology for L/H Carriers: Slow, Steady Growth Ahead: Celent Report.

While wireless technology use is not widespread among L/H carriers today, we will see changes in the near future as applications mature. Celent predicts that the adoption rate for wireless projects by L/H carriers will reach 30 percent by 2007.

Reference and Statistics

September issue of ci Canadian Insurance magazine features Brenda French on Brokers and Insurers Rebuilding Bridges.

The articles include "Rebuilding Bridges", By Brenda French - As the hard market gives way, brokers and insurers must learn some lessons from what has transpired over the past couple of years and work together to fix strained relationships - and "Seeking the 'Bounce'" By Daryl-Lynn Carlson - The p&c industry calendar is chock-a-block with trade shows and conventions. How can exhibitors get the best bang for their buck?, and many more....

Canadian Economic Outlook September 2004: SwissRe.

Consumer spending and business investment will lead the economy to growth of 2.9% this year and 3.5% in 2005. Manufacturing shipments reached a new peak in July. Job growth disappointed again in August, but full-time employment increased by 15,400 jobs.

Claims

Contingency Fees Now Allowed in Ontario.

(From Canadian Insurance ENEWS:) The Ontario government today proclaimed amendments to the Solicitors Act which will give the public another option when considering legal action in non-criminal cases. Ontario is the last province to implement this choice. Although this will improve access for lower-and-middle income claimants, lawyers must sometimes wait several years before getting paid, and winning is not always a certainty.

IBC Investigative Services Reports Progress in Fight Against Organized Crime.

(From Canadian Insurance ENEWS:) In a talk to the Toronto Fraud Forum, Mr. Richard Dubin, VP Investigations for IBC told fraud examiners and members of CASUI that vehicle recovery will top $20 million this year. Auto theft represents a $600 million cost to insurers.

Distribution

New KnowledgeBase Easier to Use, Better at Searching As Applied Systems Customers Drive Improvements.

Responding to customer requests for a faster, easier-to-use KnowledgeBase (KB), Applied Systems, Inc. today unveiled a new, improved version of its online database that allows users to get answers to questions without calling the support desk.

Financial Advisor Compliance Seminars: Ev Kent.

In today's market conduct environment, how knowledgeable are your producers about compliance? Ignorance is not an excuse! Advocis has developed a one-day, hard-hitting seminar designed to communicate industry principles and guidelines to advisors.

Marketing

Insurers Urged to Take Urgent Action over “Appalling” Reputation.

(From Canadian Insurance ENEWS:) Insurers must take urgent action to reverse the industry’s “pretty appalling” public image or face serious financial consequences, a senior Lloyd’s executive warned today.

Consumer Information

Second annual Manitoba Public Insurance Driver Ed Challenge shifts into gear.

More than 30,000 high school students will have the chance to win a scholarship of up to $1,500 in the second annual Driver Ed Challenge this fall, Manitoba Public Insurance.

Lessons Learned from Hurricane Charley; Progressive Offers Tips to Keep Drivers and Vehicles Safe From Storms and Flooding.

Surprising claims pattern shows falling objects- not flooding - caused most vehicle damage following Hurricane Charley. Progressive offers the following tips for protecting your car, recreational vehicle or boat when faced with hurricanes, storms or flooding.

Can Your Business Survive a Hurricane (or other Disaster)? Advance Planning and Proper Insurance Essential to Recovery: I.I.I.

Of all businesses that close down following a disaster, more than 25 percent never open their doors again. While there’s no way to lower the risk of a natural disaster like Hurricanes Charley or Frances, there are critical measures that can be taken to protect your company’s bottom line from nature’s fury. A disaster plan and adequate insurance are keys to recovery, say the Insurance Information Institute (I.I.I) and the Institute for Business & Home Safety (IBHS).

from Doug:

A wonderful bus trip into the Hudson Valley, beautiful weather. As a heritage group, it was fascinating to see how much we have in common. A senior staff member from the British Consulate in New York, as a dinner speaker, gave a most interesting presentation on his British Perspective of the American Revolution - the myths and reality.