Issue 2005-01:   January 4, 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

Tips for being a good party host, anytime: PAL Insurance Brokers.

Being a good host means protecting your guests, yourself and others, as well as having a good time.

Life and health insurance industry reinforces customer information and confidence: Canadian Life and Health Insurance Association Inc.

Canada's life and health insurance industry today announced a package of initiatives to reinforce customer information and confidence.

Policy Management

The Clarion Call of Business Process Outsourcing: GeniSys.

Although the life insurance sector has been lagging behind other industries in outsourcing non-core business operations, it is now poised to take advantage of handing over their business processes to external experts. Business process outsourcing (BPO) gives life insurance firms access to the process efficiencies and cost effectiveness of best-of-breed partners that will allow them to grow and stay viable in a very competitive market. Business process outsourcing has now become too compelling for insurance carriers to ignore.

Kinnect obtains second ACORD certification.

Kinnect, the business initiative that electronically captures and transfers insurance risk data between brokers and underwriters, has received certification from ACORD against the P&C (Property & Casualty) Standard.

eBusiness and Technology

Manulife Financial and IBM Sign $70 Million Agreement to Support Business Growth.

Manulife Financial, the world's fourth largest insurance company, and IBM announced today a $70 million Cdn agreement to transfer the management of Maritime Life's technology infrastructure to IBM starting next year. As part of this agreement, IBM will manage Manulife's desktop PCs and servers as a service with variable pricing and the ability to scale up and down based on customer demand.

Business of Insurance

Manufacturers Life, Maritime Life and MFC Insurance complete plan to combine Canadian operations.

The Manufacturers Life Insurance Company ("Manufacturers Life"), The Maritime Life Assurance Company ("Maritime Life") and MFC Insurance Company Limited ("MFC Insurance") have successfully combined their current operations into a single Canadian life insurance organization under the name "The Manufacturers Life Insurance Company" effective as of December 30, 2004.

Industrial Alliance Closes its Acquisition of BLC-Edmond de Rothschild Asset Management and Enters into a Long-Term Exclusive Distribution Agreement with Laurentian Bank.

Industrial Alliance Insurance and Financial Services Inc. (Industrial Alliance) is pleased to announce the closing of its acquisition of BLC-Edmond de Rothschild Asset Management Inc. (BLCER), which was initially announced November 4, 2004. Concurrent with the closing of the transaction, Industrial Alliance entered into a 10-year exclusive distribution agreement with Laurentian Bank.

Conning Research: USA Homeowners Insurers Reverse the "Curse"...for Now.

After two decades of poor financial results, the homeowners line is finally in the "sweet spot," according to a new study by Conning Research and Consulting, Inc. The Conning Research study, "Homeowners Insurance: The 'Curse' Is Reversed Until 2008," predicts a ratio of 104.5% in 2004 despite some of the worst catastrophe losses on record. The outlook is bright for 2005-2007, due to a favorable underwriting environment and a surge in insurer sophistication.

Our People

Functional Resumes: Friend or Foe? by Michelle Straka, InsuranceWorks.

Most of us have, at one time or another, sat down to write a resume. It's that little piece of paper, or two, that is our professional selves in a nutshell. Many wonder, "How can I possibly reduce my entire career into two pages?" The answer is clear, keep it simple.

Marketing and the Market Place

Confidence up, majority of Canadians say they're gaining financial ground: Manulife Investor Sentiment Index.

Canadians are showing more interest in investments across the board as 2004 draws to a close, according to a recent national poll for Manulife Financial, Canada's leading insurance and wealth management company.

Drive Insurance From Progressive Launches new Web Site For Independent Agencies and Consumers.

The Progressive group of companies, the third largest auto insurance group in the country based on premiums written, today announced the debut of its newest Web site, driveinsurance.com, highlighting the important role that independent agents and brokers play in Progressive's business model. Drive Insurance from ProgressiveSM is the new brand designed to help independent agents and brokers grow their business and was introduced by the company in September.

Business confidence index on the rise in December: CFIB Quarterly Survey.

Results of the latest quarterly survey of small- and medium-sized enterprises, by the Canadian Federation of Independent Business (CFIB), show a rise in business confidence in December. This follows a previous gain in September, and recovers most of the ground lost in previous quarters this year. In addition, the new results show that retailers are optimistic about the current holiday season.

Reference and Statistics

North American Canadian Economic Outlook December 2004: SwissRe.

The outlook for the Canadian economy has weakened somewhat. Real Gross Domestic Product (GDP) growth for the third quarter fell short of expectations and previous quarters were revised downward. In the third quarter, a build-up of inventories drove growth – not a good sign, and net exports dropped by almost half.

Claims

Preliminary Swiss Re sigma estimates of catastrophe losses in 2004: major storm losses in the US and Japan make it a record year for insurance claims.

According to preliminary Swiss Re sigma estimates, more than 21,000 people around the world lost their lives as a result of natural and man-made catastrophes in 2004. The catastrophes caused overall economic losses of about USD 105 billion worldwide. Property insurers across the globe had to contend with claims of approximately USD 42 billion.

Canadian Insurance ENEWS: Unprecedented Claims Burden from Natural Catastrophes in 2004: Munich Re.

Judging by the information it has received so far on the seaquake in south Asia, the Munich Re Group expects its own burden to be limited, with a figure currently under �100m.

Insurance in the Community

Crawford Cares raises $50,000 for the Women in Insurance Cancer Crusade.

KITCHENER – On December 15, 2004, employees at Crawford Adjusters Canada's Toronto office presented a cheque in the amount of $30,000 to the Women in Insurance Cancer Crusade (WICC). This was the second presentation Crawford has made to WICC in the past year. At Crawford's annual charity golf tournament in September, Crawford CEO Glenn Gibson presented a cheque in the amount of $20,000 to the charity.

from Doug:

The horrors of the tsunami have impacted all of us. It is a tragedy almost beyond comprehension. Our hearts out to those who have felt loss directly. I hope that each of you, in some way large or small, can help them, as we start into this new year, 2005.


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