Issue 2009-22 -- June 2, 2009

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

Handling the Crisis: Update on Q1 Insurance Industry Expectations and Strategies: Report Published by Celent.
In a new report, Handling the Crisis: Update on Q1 Insurance Industry Expectations and Strategies, Celent surveyed insurers and vendors to ascertain views of the impact of the credit crunch. The survey also looked into the available levers for any business - budgets, staffing levels and business strategies -- and how these are being used at this time.

Product Announcements

Sun Life Financial and CI Investments announce changes to segregated fund products.
TORONTO, May 27 2009 - Sun Life Financial and CI Investments Inc. today announced changes to their segregated fund lineup. The changes ensure that the products continue to provide a wide selection of investment choices and guarantee options that meet the needs of investors.

ACE Canada Launches Pollution Coverage to Respond to Growing Needs of Commercial Property Owners and Managers.
TORONTO, May 28 2009 - ACE Canada, the Canadian-based operating division of the ACE Group, today announced the launch of ACE Premises Pollution Liability Portfolio (PPL Portfolio). This program is designed to offer pollution coverage in a single policy for owners, operators and managers of a flexible mix of Canadian-based small, mid-size and large account commercial real estate portfolios.

Claims

Insurance Bureau of Canada sets record straight: Auto insurance companies support changes that benefit consumers.
TORONTO, May 22 2009 - An alliance of medical/rehabilitation providers has issued another press release attempting to blame Ontario auto insurers for every ill currently plaguing the Ontario auto insurance system.

eBusiness and Technology

IBM awarded seven-year services contract by Sun Life Financial.
TORONTO, ON - 9 April 2009: IBM today announced a seven-year agreement to manage select infrastructure and operational services in addition to the existing mainframe services for Sun Life Financial in Canada and the U.S. This transaction is valued at more than CDN$300 million over the seven-year term.

IDC Report Examines Customers' Leading Requirements and Provider Preferences for Cloud-Based Application Development and Testing Services.
FRAMINGHAM, Mass., May 6, 2009 - In search of greater cost efficiencies and faster times to market for application development and testing services, large enterprises are looking towards cloud-based outsourcing models as the next virtual frontier.

Consumer Information

Pilot project to measure how much rain barrels could help communities reduce stress on sewer infrastructure, help prevent basement flooding and conserve water: IBC.
WINGHAM, ON, May 27 2009 - Can 1,000 households make a difference? Residents of Wingham, Ontario believe they can. The community has rallied in support of a ground-breaking pilot project that is measuring how much the collective use of rain barrels can reduce stress on sewer systems and help keep basements dry during intense rain storms.

Insurance Brokers Help Educate Ontario Teens on the Dangers of Impaired Driving: IBAO.
TORONTO, May 19, 2009, The Insurance Brokers Association of Ontario (IBAO) is proud to announce that Rosanna Beattie is the 2009 recipient of the Anna Pyle Memorial Scholarship. The award was handed out recently at the IBAO-sponsored Ontario Students Against Impaired Driving (OSAID) Annual Conference at Sheridan College in Oakville.

ICBC's top five pedestrian safety tips for parents.
Walking is a great, environmentally-friendly and healthy way for your children to get around, but if they don't follow the rules of the road it can also be very dangerous. There are approximately 100 incidents and 110 injuries involving child pedestrians each year in BC. This means that most incidents result in a child being injured.

MPI's new system of discounts and surcharges approved today by the Public Utilities Board.
May 28, 2009 - The Public Utilities Board ruling varies the corporation's application for rates to be charged under the DSR system, providing larger immediate rate reductions for those who have been at-fault claims and conviction free for fifteen (15) or more years.

Concerns About Swine Flu (H1N1 virus), Tour Operator Bankruptcies and Other Disasters Make Travel Insurance Worth Considering: I.I.I..
NEW YORK, May 20, 2009 - Travelers who are tempted to take advantage of today's numerous vacation bargains, but afraid to part with their hard-earned cash if a trip is canceled due to unforeseen events, should consider purchasing travel insurance, according to the Insurance/p>

Marketing and the Market Place

In Response to Economic Downturn Most American Consumers Maintain Essential Insurance Coverages: Insurance Research Council (IRC).
MALVERN, Pa. - April 28, 2009 - A new study by the Insurance Research Council (IRC) finds that many Americans have taken steps to reduce personal insurance costs in response to the economic downturn, but that maintaining essential auto and homeowners coverage remains a priority for the vast majority of consumers. Twenty-eight percent of those with auto insurance coverage surveyed for the study reported shopping for lower rates when they normally would not have done so.

J.D. Power and Associates Reports: Customer Retention is Critical for Insurance Carriers, Particularly among Those Customers Potentially Impacted by Challenging Economic Conditions.
WESTLAKE VILLAGE, Calif.: 22 April 2009 - As millions of U.S. households face financial hardship in the current U.S. recession, retaining existing customers has never been more important for insurance carriers in terms of long-term profitability, according to the J.D. Power and Associates 2009 Personal Insurance Retention Special Report released today.

Our People

The Pottruff & Smith Group of Companies has been recognized as one of this year's 75 Best Workplaces in Canada.
April 7, 2009 - The Pottruff & Smith Group of Cmpanies has been recognized as one of this year's 75 Best Workplaces in Canada as reported in a special national edition of The Globe and Mail on Monday, April 6th, 2009.

Reference and Statistics

Fixed Annuities Continue to Dominate the Market, Reports LIMRA
WINDSOR, Conn., May 27, 2009 - For the second quarter in a row, fixed annuities outsold variable annuities $35.6 billion to $30.7 billion, according to LIMRA's U.S. Individual Annuities First Quarter 2009 Sales Report.

from Doug:

The last week has been a "visiting" week. Both sons have been here for visits, as has my wife's sister. On the weekend we journeyed to Guelph to celebrate my father-in-law's birthday, and my parents were there as well. A good week - now, if it would only warm up a bit more, although the cooler temperatures have helped the flowers remain longer in blossom, and that I have enjoyed.


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