Issue 2005-08: February 22, 2005
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.
Consumer Information
Insurance task force to address availability and affordability issues for commercial and not-for-profit sectors: IBC.
HALIFAX, Feb. 15, 2005 - Insurance Bureau of Canada (IBC) today announced a newly created task force focused on insurance issues affecting the commercial and not-for-profit sectors in Atlantic Canada. The Atlantic Task Force on Insurance Availability and Affordability brings together affected stakeholders representing the four Atlantic provinces - including representatives of government, the insurance industry and insurance customers from commercial and not-for-profit organizations.
Winnipeg woman ordered to pay $75,000 back to Manitoba Public Insurance: Insurance scam discovered.
February 17, 2005, Winnipeg -- In one of the biggest restitution orders ever granted Manitoba Public Insurance, a Winnipeg woman must re-pay the public auto insurer $75,339 after being found guilty of fraud over $5,000.
Reference and Statistics
North American Life Insurance Activity Stable in January.: MIB
(Westwood, Mass. – February 16, 2005) Applications for life insurance in North America were slightly positive up +0.9% year-over-year, marking the Index's first monthly increase since August 2004. Compared against the prior month, January's activity declined -5.8%. A decrease in activity for January versus December has occurred for the last three years.
IBC announces 2004 financial results for auto, home and business insurance companies
TORONTO, Feb. 18, 2005 - Insurance Bureau of Canada today announced estimated 2004 financial results for Canada's home, auto and business insurance companies. Industry data indicate that in 2004, the industry's 206 companies posted combined net earnings of $4.2 billion. The industry also paid out $20.6 billion in claims and contributed an estimated $6 billion in taxes to governments. Shareholders' return on equity was 20.6%.
Distribution
CoVirt Announces that Five More Brokerage Firms Switch to VirtGate.
Toronto, ON February 14, 2005 -- CoVirt Inc. (Canada), the Canadian leader in Internet based life insurance administration services announced today that five more brokerage firms have made the switch to VirtGate and are now in production.
CLIEDIS Data Modeling Training Programme on May 6, 2005.
CLIEDIS is hosting a one day Data Modeling Training Programme on May 6, 2005 in downtown Toronto. The course will provide an overview of ACORD's XML for Life data standard, providing attendees with both an understanding of the data structure (XML for Life) and the transaction layer (TXLife). Topics with include how to handle various types of insurance, investment contracts, financial activities, new business features, producer management and more.
From Canadian Insurance ENEWS: Elliott Special Risks Ltd. is Canada's First Fully Accredited Lloyd's Broker.
David Eastaugh, President of Elliott Special Risks, said "We are pleased to be the first Canadian broker to be so admitted to Lloyd's, the most important insurance market in the world."
USA Consumers Have Many Choices When Shopping for and Purchasing Home and Auto Insurance, says I.I.I.
NEW YORK, Feb. 14, 2005 – Consumers not only have a wide variety of insurance companies to choose from, but a growing number of ways to shop for insurance, according to the Insurance Information Institute (I.I.I.). With over 2,000 property/casualty insurance companies and 3.8 million licensed insurance agents, the insurance industry is a highly competitive business offering consumers a wide range of choices, says Jeanne M. Salvatore, vice president of consumer affairs for the I.I.I.
Conning Research: Boundaries Between Agents, Brokers and Insurers being Redrawn -- Brokers Will Feel the Squeeze.
(Hartford, CT) February 14, 2005 - In the wake of investigations into broker practices in the commercial insurance industry, a redefinition of the roles of broker, agent and insurer may be underway, according to a new study by Conning Research and Consulting, Inc. "Insurers may view this market situation as an opportunity to get closer to their clients," said Stephan Christiansen, director of research at Conning Research & Consulting. "The clients, on the other hand, will be looking to ensure that the bidding process is more favorable to them."
CSIO Insurance Portal Status Update
Week ending Febuary 18, 2005:
Kingsway system testing completed and user acceptance testing began; and
the number of brokers integrated to the portal increased by five last week to 150 and the implementation backlog is at 62.
Policy and Product Management
Wisconsin Insurer Goes Live with Phase iii of new Integrated Technology Solution from Tritech.
February 1, 2005 (Wisconsin) – Rural Mutual Insurance Company has gone live with Phase iii of a leading-edge Enterprise P&C solution from Tritech Financial Systems Inc. and Picom Software Systems Ltd. Phase i went live May 29, 2003 with Personal Auto, Business Auto, Homeowners and Personal Umbrella. Phase ii went live May 09, 2004 with Farm, Country Estate, BOP and Excess. Phase iii went live January 4, 2005 with CPP and Workers Compensation.
Mutual Concept Computer Group Inc. Acquires Bralar Software Inc.
February 9, 2005 (London, Ontario) - Mutual Concept Computer Group Inc. (MCCG) of London, Ontario announces the completion of the acquisition of Bralar Software Inc. (Bralar) of London, Ontario. MCCG has long been a provider of insurance backoffice software solutions for property and casualty insurance companies. Bralar has been providing rules engine technologies for leading insurance organizations globally.
Guy Carpenter Publishes Marine & Energy Reinsurance Review Report 2005.
New York, January 24, 2005 -- Guy Carpenter & Company, Inc., the world's leading risk and reinsurance specialist and a part of the Marsh & McLennan Companies, Inc. (NYSE: MMC), has released its comprehensive Marine & Energy Reinsurance Review Report 2005, which identifies key influences driving decision-making in the marine and energy reinsurance marketplace. The 2005 report highlights issues regarding construction risks, marine hull war risks, terrorism, regulatory changes, rogue waves and the 2004 hurricane season.
eBusiness and Technology
US Insurance IT Spending 2005-2010: Celent.
New York, NY, USA, February 14, 2005 -- Celent's newest insurance reports, US L/H Insurer IT Spending 2005–2010 and US P/C Insurer IT Spending 2005–2010, project modest proportional growth over the next five years. The reports break projected spending down among maintenance and new projects, hardware/software/staff/services/telecom/ other, and 11 different functional areas.
Business-to-Business Electronic Payments: Putting Wind in the Sails: Celent.
Despite the formidable incumbent status of the check in business-to-business transactions, its dominance will wane. Various industry, technological, and regulatory trends will propel the adoption of e-payments. The economic interests of banks, third-party solution providers, and corporations will align, overcoming the chicken-egg syndrome of insufficient demand to generate supply and vice versa.
Marketing and the Market Place
4th Quarter Survey Shows Significant Softening in USA Commercial P/C Market: CIAB.
WASHINGTON –More than 80 percent of small and large commercial property/casualty accounts and 90 percent of medium accounts found their insurance premiums either stable or down by as much as 20 percent during the 4th quarter of 2004, according to survey data released today by The Council of Insurance Agents & Brokers.
Managing Relationships
DALBAR Announces Customer Service Awards for 2004.
(Boston, MA. February 10, 2005) DALBAR today congratulated investment, broker/dealer and life insurance firms who have delivered industry-leading service in 2004. Through rigorous testing of service delivery throughout the year, DALBAR identifies those mutual fund, broker/dealer, annuity, life insurance and retirement plan providers that are able to exceed the service level expected by customers.
from Doug:
Seems to be that season between Valentines and March Break. The longer days bring some hope of Spring to come, while a good dump of snow like we had Sunday night, or dreary wet days like last week, bring back reality.
One son home now and one returning Wednesday evening, both on reading week breaks. Will be good to have a few days together.