The Chronicle: Issue 2014-16, April 22, 2014


What's Going Through The Intersection of Insurance and Technology?

Are Three Legs Enough to Keep the SEMCI Stool Stable?
We recently posted on the current state of Single Entry, Multiple Company Interface (SEMCI) between independent distributors and insurance carriers. In spite of consensus on objectives and serious time, energy, and money spent over almost five decades, we are nowhere near a critical mass which would allow realization of the benefits promised. In this post, we will look at what we see as a serious structural issue which we feel has been a barrier. We believe that the major actors cannot achieve sustained success with the current, diffused organization.

AXA: Just a One-Bullet Digital Insurer? (We Think Not)
Recently, our friend Denise Garth from SMA posted a blog on a “game-changing” announcement: AXA France and Facebook entering into a strategic partnership. This post has quickly made the rounds and caused the count of exclamation marks in emails and tweets to increase geometrically, as other insurers try to absorb the implications of a global insurer working so closely with the 500-kilo gorilla of social media.

The Intersection: Insurance-Canada.ca Blog
The Intersection

an Insurance-Canada.ca Blog


Social Business

The Shot Heard Round the Industry: AXA and Facebook Reimagining Insurance
What a stunner and brilliant outside-in move by AXA – to position themselves as a dominant digital insurance company by partnering with Facebook! You baseball fans will know the phrase, "the shot heard 'round the world," which was said about the game-winning home run by a New York Giants player against the Brooklyn Dodgers in 1951 to win the National League pennant. And just like that home run, this shot is a game-changer for insurance, propelling AXA ahead of the competition and redefining the customer experience.

Technology

MARCON Mobility Newsletter: Auto Insurance and the Driverless Car
We are currently seeing steady increases in ridesharing and carsharing to match trends in reduced car ownership and reduced interest in becoming a licensed driver as soon after turning age 16 as possible. These trends do not generate the press attention that the driverless car has generated. Google cars seemed to lead the charge, but all of the major car manufacturers and even some new entrants are in the game, it seems. Every year, new features appear that improve safety and presumably reduce insurance claims costs. Each of these is a learning opportunity and development step toward more comprehensive functions to come, ultimately leading to fully autonomous, self-driving vehicles.

Consumer Information

Canadians living longer: what does it mean for insurance
The Office of the Chief Actuary of Canada (OCA) indicates that life expectancy in Canada has increased yet again, news which continues to be good for any of us who like to have our own expectations. Children born today can expect to live to about 82 years of age. On average, those at age 65 today will carry on until about 86 years of age. In the first half of the previous century, most of the gains in life expectancy were for the young. In more recent years the improvements in health care have had a much larger impact on the life expectancy of those over age 65.

Home insurance: a loss doesn't only happen to others, warns IBC
This past February, Insurance Bureau of Canada surveyed more than 600 insured homeowners in Quebec to evaluate their knowledge of home insurance and their perception about the risk of suffering a loss. When policyholders were asked whether they thought their home was at risk of suffering wind, hail, earthquake or sewer back-up damage, roughly two-thirds of respondents said they did not think their home was at risk.

IBC: Ontario Government's Legislation on Towing Industry a good first step
The introduction of the Roadside Assistance Protection Act legislation is long overdue and will bring clarity to consumers with their interaction with tow truck operators. The Bill will help with disclosure and transparency for consumers requiring towing services so that prices are upfront and authorization is clearly provided.

Financial literacy: more can only help
Financial literacy – that is, a basic understanding of the workings of money, including investments, budgets, loans and more – is a laudable objective in a country like Canada. Hence it was good to see an announcement recently from the Canadian government that they had appointed the first Financial Literacy Leader. We congratulate Jane Rooney on her appointment.


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