Issue 2010-03 -- January 19, 2010

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

HealthQuotes.ca announces the availability of ELITE U.S. Healthcare™.
Toronto ON 12 January 2010 - HealthQuotes.ca is very pleased to announce that we now offer ELITE U.S. Healthcare from illnessPROTECTION.com.  ELITE U.S. Healthcare eliminates long wait times and covers any illness, accident or injury with a treatment wait time in Canada. It covers everything from hip replacement to cancer treatments and heart surgery, and coverage is available to age 75.

Product Announcements

Empire Life announces enhancements to Class Plus.
(Kingston, ON - January 14, 2010) - The Empire Life Insurance Company (Empire Life) today announced two enhancements to its Guaranteed Minimum Withdrawal Benefit product, Class Plus, to help Canadians live more comfortably in retirement. Now, clients will receive the 5% annual Income Base Bonus each year if no withdrawals are made in that year. Previously, the bonus was only available for the first 15 years.

Unity Life introduces Annuity Plus TFSA to increase saving options.
MISSISSAUGA, ON, Jan. 14 2010 - Unity Life of Canada, a Foresters(TM) company, now offers Foresters Annuity Plus Tax-Free Savings Account (TFSA), providing a number of saving options for Canadians. The Annuity Plus TFSA offers investments as a Daily Interest Account and a Guaranteed Interest Account with a choice of investment terms from 1 to 10 years.


Managing Relationships and Customer Service

MajescoMastek Ranked Fastest Growing P&C Insurance Billing Solution Provider in U.S. Market by Novarica.
NEW YORK, N.Y., January 13, 2010 - MajescoMastek, the U.S. subsidiary of global technology solutions provider Mastek Limited (NSE: MASTEK), today announced that their STG Billing solution has been recognized as the most widely used Property & Casualty insurance billing solution by a recent Novarica Market Navigator™ Report.

Relationship and Timing Are Key to Capturing Rollover Assets, LIMRA Study Finds.
WINDSOR, Conn., Dec. 10, 2009 - According to a LIMRA study, three out of five retirees had an existing relationship with a representative from the firm where they rolled over their money and more than 80 percent of retirees started talking about this decision before they retired.

Claims

Few major natural catastrophe losses in 2009 General trend confirmed by large number of weather extremes: Munich Re.
29 December 2009 - Natural catastrophe losses were far lower in 2009 than in 2008 due to the absence on the whole of major catastrophes and a very benign North Atlantic hurricane season. However, the total number of destructive natural hazard events was above the long-term average, 850 being recorded in all. Consequently, despite the lack of really disastrous events, there were substantial economic losses of US$ 50bn and insured losses amounted to US$ 22bn compared with economic losses of US$ 200bn and insured losses of US$ 50bn in the previous year.

HCAI Voluntary Pilot Nearing Successful Completion.
January 11, 2010 - On September 28, 2009, the HCAI pilot was successfully re-launched with two insurers and nine health care facilities. After three months of operation, the pilot has grown to include 12 insurers and 235 health care facilities, including over 2,100 active users with business representation from small to large insurers and a variety of different types and sizes of health care facilities. HCAI learned that the system is stable, that no new processing issues have been identified and that the pilot is expected to be successfully completed in February.


Reference and Statistics

Ontario car insurance rates increase an average of 5.3 per cent: Kanetix.
TORONTO, Jan. 13 2010 - Today, Kanetix(R), Canada's online marketplace for insurance quotes and mortgage rates, released the results of its Ontario quarterly car insurance premium study. The study identified a 5.3 per cent average increase in the lowest auto insurance rates quoted on Kanetix in Q4 2009 compared to Q4 2008. The increase, consistent with rate changes previously approved and announced by Ontario's auto insurance regulator, means drivers should prepare themselves for rising car insurance premiums in the months ahead.

MIB Life Index Reports North American Life Insurance Activity Up 2.3% in December.
Braintree, MA. (January 15, 2010) North American application activity for individually underwritten life insurance was up +2.3% in December, according to the MIB Life Indexsm. Fourth quarter growth of +2.8% broke the recessionary trend of losses in 2009?s first nine months, ending the year even at +0.1% YTD, as compared to 2008. Application activity in the 45-59 age group experienced a watershed year up +2.4% YTD versus the prior year - the first annual growth in this demographic since 2003. Activity in the 60+ age group continued its longstanding growth trend, up +13% YTD; activity in the 0-44 age group was down -3.6% YTD. December application activity was down -7.7% from November, characteristic for this time period.

eBusiness and Technology

Wealth Management Business and IT Priorities for 2010: A Global Perspective: Report Published by Celent.
New York, NY, USA - January 06, 2010 - The market crisis has made wealth management firms reevaluate their way of targeting and servicing clients across all customer segments. In a new report, Wealth Management Business and IT Priorities for 2010: A Global Perspective, Celent provides an overview of the evolution of the wealth management industry after the financial crisis, with a focus on business and IT priorities on a global basis. A number of strategies are followed by financial institutions to survive in the current environment and remain their clients? trusted advisors.


Business of Insurance

Groupe Promutuel and Desjardins Group announce the signing of an agreement-in-principle towards a business partnership.
QUéBEC CITY, Jan. 11 2010 - Groupe Promutuel and Desjardins Group, two Québec leaders in the cooperative and mutual sectors, have announced the signing of an agreement-in-principle towards the implementation of a business partnership regarding the distribution of financial products and services, such as mortgage loans and savings products.

RIBO: Changes to Part XIII - Federal Insurance Companies Act.
December 17, 2009 - The Federal Office of the Superintendent of Financial Institutions (OSFI) has introduced changes to the Federal Insurance Companies Act (ICA/Part XIII) that will come into effect on January 1, 2010 governing what business foreign insurers licensed in Canada have to report as "Canadian business" to OSFI, and accordingly, meet the OSFI requirement to vest assets in Canada in respect of those risks. The federal regulatory focus with respect to foreign insurers will be effectively changed from the location of the risk to the location of the business activities of the insurer.

New Swiss Re sigma study highlights the challenges and opportunities in commercial liability insurance.
16 Dec 2009 - Third party liability is among the most important risks that businesses face. Liability insurance protects against "the legal obligation to compensate third parties for losses or damages for which they are liable." This includes very different risks: companies seek protection against claims resulting from product defects or improper use of certain products by the consumer. Medical doctors and hospitals insure themselves against medical malpractice. Boards of directors, supervisory boards or management may also seek cover against claims relating to violations of the duty to exercise care. This type of cover has increased in importance since the onset of the current financial crisis.

Progressive Now Offering Car Insurance in Australia.
MAYFIELD VILLAGE, Ohio - December 8, 2009 - Progressive car insurance is now available in Australia. The new Australia business, operating as Progressive Direct and based in Melbourne, is headed by Western Australia native Simon Lindsay.

Distribution

Excellence in Distribution: Internal Wholesaling - Kasina Study.
New York, (January 5, 2010) - Internal wholesalers have been buffeted by reductions in staff, compensation and recognition. While firms cut back on external wholesalers and advisors increased expectations of firms with which they do business, internals have been asked to more work than ever - without significant upside in compensation or promotion potential.

from Doug:

The pictures from Haiti are so tragic, the loss of life, injuries and destruction of property so devastating. It is gratifying to see how quickly governments and NGO's have responded and continue to do so. It is equally impressive how quickly people have responded with donations, and insurance industry organizations as well including press releases I have noticed from many including Intact, The Co-operators, Foresters, Travel Guard, AXA etc. I am sure there are many more who have done or are doing the same. Please help.


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