Issue 2010-31 -- August 3, 2010

This newsletter is for members of the Canadian Insurance Industry and those who serve it. The newsletter is published weekly, and notes information about the use of the Internet and related technologies in the industry, insurance products and the marketplace. Some is international, where we feel it is relevant to Canada.




Policy and Product Management

DAS Canada rolls out new Canadian product: iter8.
July 2010, Toronto: iter8 Inc., an insurance solutions software developer is pleased to announce that DAS Legal Protection Insurance Company Limited (DAS Canada) has rolled out specialty legal expense insurance in Ontario as the first step in a country wide rollout, drawing upon the expertise and experience of iter8 Consulting Services.

Gore Mutual in Production with Duck Creek Policy Administration™ for Commercial Property,
BOLIVAR MO-July 27, 2010 -- Gore Mutual Insurance Company and Duck Creek Technologies, Inc., announced today that Gore Mutual is in production and processing commercial property policies on the Duck Creek Policy Administration™ system. This new system for Gore Mutual's national commercial property line is the first of many releases which will replace their aging legacy system.

Claims

HCAI Status July 2010.
In recent months, system capacity has been reviewed and is functioning and scaling as expected. HST was activated in the HCAI system on July 1, 2010. HCAI will accommodate the required changes for the Ontario Auto revisions and process changes by September 1, 2010 - Integration testing for Practice Management System (PMS) vendors and insurers began July 26, 2010 to validate the auto reform functionality.

Farm Mutual Insurance Company of Idaho Deploys Guidewire for Claims Management.
POCATELLO, Idaho and SAN MATEO, California, July 27, 2010 - Farm Bureau Mutual Insurance Company of Idaho (FBM Idaho), the state's largest domestic property/ casualty insurer and Guidewire Software®, a leading provider of flexible core systems to property/casualty insurers, today announced that FBM Idaho has deployed Guidewire ClaimCenter as its new claims management solution for personal lines claims. FBM Idaho writes 13 different lines of personal coverage.

Business of Insurance

Regulatory uncertainty remains a challenge for financial executives: Ernst & Young.
(Toronto, 13 July 2010) According to the latest Ernst & Young survey, 72% of global banking executives cite regulatory uncertainty as the top challenge their organizations face around risk management. As global regulators and legislators tighten regulatory oversight in response to the financial crisis, banks are bracing for the new rules to affect fundamental aspects of their business.

Reference and Statistics

Conning Research: Property-Casualty Quarterly Forecast Through 2012 Released.
(Hartford, CT) July 21, 2010 - While property-casualty personal lines premiums are benefiting from rate growth, commercial lines continue to show softness, and will lag the economic recovery, according to the most recent Property-Casualty Industry Forecast by Conning Research & Consulting.

Council Survey Shows Commercial Property/Casualty Rates Melting in Summer Heat: CIAB.
WASHINGTON, D.C., July 19, 2010 - Excess capacity chasing market share in the commercial property/casualty marketplace has resulted in another quarter of declining renewal pricing, according to The Council of Insurance Agents & Brokers' second quarter Commercial P/C Market Index Survey. On average, renewal rates dropped by about 6 percent in the second quarter, compared with a 5 percent decrease in the first quarter of 2010.

Managing Relationships and Customer Service

Life Insurance Companies Ranked on How They Treat Online Customers in Latest Customer Respect Group Study.
IPSWICH, Mass., June 14, 2010 - The Customer Respect Group, an international research and consulting firm that focuses on how corporations treat their online customers, released findings from its Second Quarter 2010 Online Customer Respect Study of the Life Insurance Industry.

DALBAR 2010 Brokerage Statements Results.
Toronto, ON - Wednesday June 14, 2010 - DALBAR's 2010 Trends and Best Practices in Brokerage Statements looks to recognize those companies whose statements best meet investors' needs. To match consumer needs and to reflect changes in the industry, DALBAR recently updated its evaluation criteria for testing investment account statements. Results from various inputs, such as advisory board meetings, consumer-facilitated sessions and advisor focus groups were consulted upon and factored into the updates.

Distribution

Critical illness sales show the largest percentage increase in 2009, according to the annual Eastbridge voluntary sales study.
AVON, CONNECTICUT, USA (July 14, 2010) - Voluntary critical illness sales almost doubled in 2009 as compared to 2008, according to Eastbridge's annual U.S. Worksite Sales Report. In fact, the line was up almost 88 percent for the year. Total voluntary sales were $5.397 billion in 2009, up 3.3 percent over 2008.

Marketing and the Market Place

Marketers Put More Lead Gen Budgets Online: eMarketer.
JULY 27, 2010 - Lead generation budgets were slashed by many companies in 2009, but now that the economy is on the uptick again, dollars are flowing and acquiring new customers is a priority. According to the "2010 Lead Generation Optimization Key Trends Analysis" from CSO Insights, more than 91% of companies worldwide reported increasing new customer acquisition was one of their top strategic marketing objectives for 2010.

Why Email Metrics Are in Decline: eMarketer.
JULY 26, 2010 - As email open and click rates continue to drop, marketers will need to put ever more effort into segmentation and personalization to seem relevant amid the inbox clutter of tired email recipients, research suggests. Open rates continued a steady decline around the world, according to MailerMailer's - Email Marketing Metrics Report,- dropping from 12% in the first half of 2009 to 11.2% in the second half.

Consumer Information

Ontario Brokers Applaud Provincial Government's New Drinking and Driving Measures for Young Motorists: IBAO.
(Toronto), July 28th, 2010. Today, the Insurance Brokers Association of Ontario (IBAO) applauds the Ontario government's recent announcement of new changes being implemented to protect Ontario's young drivers. This new law, which will be implemented on August 1st, states that all young drivers under the age of 21 and new motorists will be required to have a zero blood alcohol level when behind the wheel.

ICBC's tips for summer road trips.
As British Columbians are enjoying the warm summer days, for many that also means summer getaways. If you'll be hitting the road, you can help make our highways safer by slowing down and making smart driving decisions. Take all the necessary steps to have a safe and enjoyable summer vacation.

Potting soil emerging as a fire hazard: Co-operators.
GUELPH, ON, July 21 2010 - In March, a massive fire destroyed a Calgary condominium complex, leaving at least 250 occupants homeless. The combustive culprit was a cigarette in a planter outside the complex. Recently there has been a spike in fires sparked by smoking materials in potting soil. The Co-operators is urging Canadians to be aware of the danger associated with disposing cigarettes in potted plants.

from Doug:

On our annual heritage bus trip, this year we travelled to Niagara-on-the-Lake where a few people spent time in the historic town, but most of us spent the day at Ft. George where several hundred reenactors were reliving a few events of 230 years ago. The scenes varied from artillery demonstrations to an hour-long battle, from the tents complete with all the period accoutrements to the wonderful period clothing for both the military side to the lady's gowns and gentleman's attire in the clothing promenade later in the afternoon. A fascinating step back in time.
As for the unpacking, we are making slow but steady progress. Every time we think a corner is completed, it becomes the storage space while we work on another part of the room - sometimes we wonder if we are just moving things around. On the other hand, a sign of satisfaction and possible progress: two or three empty boxes go out the door each day.


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