Issue 2008-30 -- August 12, 2008

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.




Claims

CGI Divests Canadian Claims Adjusting and Risk Management Processing Unit. Montreal, Quebec, July 21, 2008 - CGI Group Inc, (TSX: GIB.A; NYSE: GIB), today announced the sale of a Canadian business processing unit providing claims adjusting and risk management services to the Canadian property and casualty (P&C) insurance industry. With approximately $70 million in revenue, the business is being sold to privately-held The Shumka Group. The transaction is expected to close in early August 2008.

Allegient Systems announces Version 5.7 of Expense and Performance Management Suite utilizing new hardware platform.
Wilton, CT – July 15, 2008 - Allegient Systems, a leading software and service provider that continues to set the standard in legal expense and performance management, today announced Version 5.7 of its "Expense and Performance Management Suite" software system, one of the insurance industry's most broadly utilized, ASP-delivered, litigation management and bill review solutions. Version 5.7 is now available to all Allegient clients.

Symbility Solutions Announces Strategic Partnership With e2Value.
TORONTO, ONTARIO--(July 22, 2008) - Symbility Solutions Inc., a wholly-owned subsidiary of Automated Benefits Corp. (TSX VENTURE:AUT), along with e2Value Inc. are pleased to announce their strategic alliance integrating e2Value's web-based property Insurance-to-Value (ITV) calculation services to Symbility's mobile claims estimation application.

NJM Insurance Group Deploys Guidewire ClaimCenter to play key role in its business transformation and policyholder service enhancements.
WEST TRENTON, NJ and SAN MATEO, CA, July 23, 2008 - New Jersey Manufacturers Insurance Company (NJM), the largest automobile and workers' compensation insurer in New Jersey, and Guidewire Software®, a leading global provider of solutions to property casualty insurers, today announced that NJM has deployed Guidewire ClaimCenter® as its new claims system. ClaimCenter is now assisting NJM in adjusting claims for its personal and commercial auto and homeowner's lines of business.

ISO's Property Claim Services Unit Estimates USA Insurers to Pay $6.03 Billion in Second-Quarter Catastrophe Claims.
JERSEY CITY, N.J., July 21, 2008 - U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $6.025 billion for second-quarter property losses resulting from a total of 16 catastrophes in 27 states - nearly double the number of catastrophes in the first quarter. And the insured property damage in the second quarter almost doubled the losses incurred in the first, according to preliminary analysis by ISO's Property Claim Services (PCS) unit.

Policy and Product Management

UPFRO Streamlines Inspection Process with MSB Web Services.
New Berlin, WI and Brick, NJ - July 11, 2008 - MSB and UPFRO Associates Inc. announce a strategic partnership to provide U.S. insurance carriers with an improved home inspection process that saves time and increases productivity. UPFRO selected MSB's ExpressLync(TM) and Field Information Transfer(TM)Web applications to streamline the flow of digital inspection information between UPFRO's underwriting and management systems and the policy management systems of its insurance carrier clients.

Distribution

Western Financial Group Announces Continuing Network Expansion.
High River, Alberta - July 24, 2008 (TSX - WES) - Western Financial Group (the "Company") announced today that it has closed on additional acquisitions in Alberta and Saskatchewan. The acquisition of Vet's Insurance in Coleman, Alberta, Dunn Realty & Insurance in Wolseley, Saskatchewan, with a second location in Glenavon, Saskatchewan, as well as a start-up office in Cold Lake, Alberta all were effective July 1, 2008. In addition, Simpson Insurance Agencies in Trochu, Alberta, and Woodland Insurance Agencies in Grande Cache, Alberta were added effective May 1, 2008. Effective August 1, 2008, the Company will be closing on the acquisition of Boyd Agencies Ltd., an agency with two locations in Prince Albert, Saskatchewan.

New kasina study shows: Higher Profitability Motivates Firms To Use Hybrid Models.
New York, (July 22, 2008) - After years as a buzzword, hybrid wholesaling has achieved the necessary adoption and track record to become a long-term part of asset management distribution strategies. Hybrids are up to 30% more profitable than traditional external/internal wholesalers, according to new research from kasina.

Marketing and the Market Place

Manulife Investor Sentiment Index rises slightly as investors adjust.
WATERLOO, ON, July 23 2008 - Canadians generally say they kept positive about investing in the past quarter, despite daily news about volatile equity markets, rising gas and food prices plus U.S. sub-prime lending woes, according to a national poll for Manulife Financial, Canada's leading insurance and wealth management company.

Four In Five (81%) Canadians Are Interested In Learning More About "Green" Financial Products And Services: Ipsos Reid Study.
July 9, 2008 - Toronto, ON - It appears that when it comes to their finances, Canadians are ready to go "green". According to a new study conducted by Ipsos Reid, the trend toward environmental awareness and responsibility is spilling over into new areas, including Canadians' preferences with their banking.

Internet User Demographics in Canada: eMarketer.
JULY 22, 2008 - Based on active Internet usage in Canada in April 2008, comScore found the online audience evenly divided between males and females, with very slight variations in the age breakdown between the two groups.

Insurance.com Study: USA Auto Insurance Rates Continue to Climb.
CLEVELAND, OH – July 17, 2008 - Auto insurance rates continued to rise for the second quarter this year, according to a study by Insurance.com, the largest online auto insurance agency in the United States.

Managing Relationships and Customer Service

J.D. Power and Associates Reports: The Role of Investment Advisors Becomes Increasingly Critical As Overall Satisfaction With Investment Institutions in Canada Declines Amid Volatile Market Conditions.
TORONTO: 25 June 2008 - As the investment market experiences increased turbulence amid economic uncertainties, the expertise and guidance of investment advisors is becoming more important in enhancing overall customer satisfaction, according to the J.D. Power and Associates 2008 Canadian Investor Satisfaction StudySM released today.

Consumer Information

Government of Canada harmonizes bumper standard.
OTTAWA, July 21 - A new federal regulation took effect on June 25, 2008, that improves the design of bumpers on Canadian passenger cars by harmonizing the Canadian car test speed requirements with those already established in North American and European markets. By updating the Canadian bumper standard, the Government of Canada is ensuring that:

About One Million USA Vehicles are Stolen Annually; Comprehensive Coverage Provides Important Insurance Protection: I.I.I.
NEW YORK, July 21, 2008 - While the number of cars stolen has decreased between 2004 and 2007, drivers should remain vigilant because auto theft continues to be a major problem with a million vehicles stolen annually, according to the Insurance Information Institute (I.I.I.).

Impaired boating is the same as impaired driving.
TORONTO, Aug. 5 - Whether you drive a boat or a car, in Ontario the same penalties apply if you foolishly drink and drive and put people's lives at risk. Between 1996 and 2005, more than 133 people were killed in boating incidents in Ontario where alcohol was involved.

from Doug:

Vacation is done - back to work. But what a vacation we had in Russia for two weeks. Thoroughly enjoyed a few days in Moscow and St. Petersburg with a seven day boat trip between the two. The majesty of the Kremlin and Red Square - St. Basil's is something else - were matched by the quaint and rustic characters of the smaller stops along the water route. The gems were in St. Petersburg with the wonderful art of the Hermitage, the eye-popping grandeur of Peterhoff, the amazing mosaics in the churches, and so much more. But the traffic in the cities is worse than here at home. Fascinating trip, but as always, good to be home.


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