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.




Business of Insurance

Frank Cowan Company Partners With Temple Insurance Company.
PRINCETON, Ont., Jan. 3, 2007 - Frank Cowan Company is proud to announce that Canadian-based Temple Insurance Company (Temple) will participate on all of its insurance programs starting Jan. 1, 2007. Temple is a member of the worldwide Munich Re Group.

ISO: Absence of Hurricane Losses Drove Improvement in USA Property/Casualty Insurers' Results Through Nine Months.
JERSEY CITY, N.J., Dec. 27, 2006 - Driven by a sharp decline in catastrophe losses from hurricanes and other natural disasters in 2006, the U.S. property/casualty industry posted a $24.4 billion net gain on underwriting through nine months. The net gain on underwriting through nine-months 2006 stands in stark contrast to the $2.5 billion net loss on underwriting through nine-months 2005.

Claims

U.S. Tort Costs Total $261 Billion in 2005, According to Tillinghast Study.
STAMFORD, CT., December 13, 2006 - U.S. tort costs totaled $261 billion in 2005, which is approximately $880 per person and $4 less per person than in 2004, according to the 2006 Update on U.S. Tort Cost Trends from the Tillinghast business of Towers Perrin. The growth rate of tort costs in 2005 was 0.5%, which is significantly lower than the growth rate of 5.7% in 2004 and 5.5% in 2003. The $1.1 billion increase over tort costs in 2004 is the smallest since 1997. The 2006 Update analyzes U.S. tort costs from 1950 through 2005, with projections through 2008.

Consumer Information

Renewed efforts needed to curb drunk driving: TIRF poll.
OTTAWA, Dec. 21, 2006 – A new poll by the Traffic Injury Research Foundation (TIRF) reveals that renewed efforts are needed to get drunk drivers off Canadian roads. According to the poll, Canadians made 10.2 million drunk driving trips in Canada during the last year when they felt they were over the legal alcohol limit.

Health care spending to reach $148 billion this year: CIHI.
December 5, 2006 - Health care spending in Canada is expected to reach $148 billion in 2006, an increase of $8 billion over last year, according to figures released today by the Canadian Institute for Health Information (CIHI) in its annual report on health care spending. National Health Expenditure Trends, 1975–2006 projects that total health care spending in Canada will increase by 5.8% in 2006 over the previous year. This increase is slightly lower than the estimated annual growth rate of 6.4% in 2005, and lower than the average yearly rate of increase (7.8%) from 2000 to 2004.

First crash tests of minicars: Nissan Versa earns the highest overall rating; three minicars earn poor ratings in side tests: IIHS Test Results.
ARLINGTON, VA - For the first time, the Insurance Institute for Highway Safety has tested the smallest vehicles sold in the US market, which gain popularity as fuel prices rise. Now these cars are rated for comparison of occupant protection in front, side, and rear crashes. The Nissan Versa earns good ratings in all three tests. Two other cars earn good ratings in front and side but not rear tests.

Create a Complete Inventory of Everything You Own; Free I.I.I. Software Makes it Fun and Easy.
NEW YORK, January 4, 2007 - The New Year is always a good time to take an inventory of everything you own in the event disaster strikes, according to the Insurance Information Institute (I.I.I.).

Marketing and the Market Place

CFIB: Small business outlook for 2007 suggest steady economic performance; Retailers upbeat this holiday season.
December 13, 2006 Toronto - After a brief boost in optimism in the third quarter, the latest Quarterly Business Barometer by the Canadian Federation of Independent Business (CFIB) shows small- and medium-sized business confidence returning to its previous level. The CFIB Quarterly Business Barometer ® Index now stands at 107.0 (1988=100), more than a point and half below its September level, but very much in line with the levels posted between December 2005 and June 2006.

Reference and Statistics

MIB Life Index Reports US Life Insurance Activity Declines 6.6% in November.
(Westwood, Mass. - December 26, 2006) Application activity for individually underwritten life insurance sold by U.S. insurance companies declined -6.6% in November yearover-year, the ninth consecutive month of decreases in 2006, according to the MIB Life Index. Year-to-date (YTD), U.S. application activity is off -3.6%, compared to the same eleven months in 2005.

Canada's population: Third quarter 2006 (preliminary): Statscan.
Thursday, December 21, 2006 - The population of Alberta, in the midst of an unprecedented economic boom, rose at its fastest quarterly pace in 25 years between July and September. Alberta's population grew by 1.12% during the third quarter to reach 3,413,500 as of October 1, 2006. This rate of growth was more than three times the 0.33% increase in Canada's total population. As of October 1, 2006, Canada's population was estimated at 32,730,200, up 106,700 from July 1, 2006.

eBusiness and Technology

Gartner Highlights Key Predictions for IT Organizations in 2007 and Beyond.
STAMFORD, Conn., December 13, 2006 - Gartner, Inc. released today 10 key predictions that showcase the trends and events that will change the nature of business and IT in 2007 and beyond. These predictions are for general technology areas rather than specific to industries or roles within an organization. The predictions are intended to compel high-tech companies and IT professionals within enterprises to action and position themselves to take advantage of the coming changes, and not be damaged by them.

Key IDC's FutureScan: IT Buyers Ignore Economic Storm Clouds, Expect More Spending Growth in 2007 than 2006.
FRAMINGHAM, Mass., January 3, 2007 - This month's IDC FutureScan depicts a rare alignment of IT buyer expectations, vendor revenue forecasts, and macroeconomic indicators that all seem to ignore economic forecasts for a cooler U.S. economy in 2007.

ING Europe Finalizes Contracts with Team of IT Service Providers.
AMSTERDAM, Netherlands; Dec. 14, 2006 -- Accenture, Atos Origin, Getronics and KPN have each signed seven-year contracts with ING to jointly supply workplace services for 53,000 ING employees in Europe. As part of the agreement, approximately 430 ING employees in the Netherlands and Belgium will transfer to Atos Origin, Getronics and KPN.

Gomez Survey Reveals Impact of Positive Web Experiences on Online Retailers' Holiday Sales.
LEXINGTON, Mass., Dec. 6, 2006 - "Three strikes and you're out" turns out to be just as true for e-commerce as it is for baseball, according to the results of a survey of more than 1,000 online holiday shoppers released today by web application experience management leader Gomez, Inc.

Corporate Actions Automation in Continental Europe: Report Published by Celent.
Paris, France, 14 December 2006 -- Across Continental Europe, corporate actions automation is rising in priority at banks, custodians, and asset management firms. However, most firms continue to have challenges processing events easily and accurately, according to the Celent report, Corporate Actions Automation in Continental Europe.

from Doug:

One of my co-workers noted that in 1979/80 around year-end there was no snow and the ski hill operators were bemoaning the lack of snow and business. The whole winter was mild, and snow was not plentiful. The "old-timers" indicated it was just a seven-year cycle that brought a warm winter every few years. "Climate change" was not in the vocabulary.
How things have changed. From out-of-mind and it is "only Nature", to number one on the radar screen of public issues. Rick Mercer urging us to take the one-tonne challenge (How many of us really figured out what that means?) brought the issue closer to home. In spite of this awareness, have you taken action to achieve your personal one-tonne challenge?


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