News

Weekly News Round Up from Canadian Insurance Top Broker

Posted on Dec 09, 2011

Workplace fraud cost businesses billions; Ontarians pay more for car insurance; Chubb launches cyber security product.

Global news

Swiss Re estimates the cost of Thailand’s floods to the insurance industry will reach $8 billion to $11 billion, reported The Canadian Press. The insurer puts its own costs from Thailand’s worst floods in half a century at $600 million. More than 600 people died, millions of tons of crops were destroyed and industrial production was badly affected by the flooding that began in late July.

In China, reinsurance premiums have increased 70% since 2005, according to Aon Benfield. China represents close to 4% of the world’s total insurance premiums at RMB1.45tn (USD$226billion) for Life and P&C, which has grown from 1% over the last decade. However, the China Insurance Regulatory Commission (CIRC) has indicated the insurance industry will continue to face challenges. To read more about the Chinese insurance market, click here. 

In the UK, motor insurance premiums have continued to rise in 2011, with some drivers facing price increases of up to 50%, according to Willis Re. At the same time, the fall in the number of deaths and serious injuries on British roads has resulted in a 10% year-on-year reduction in the frequency of large claims (measured against premium income).

National update

On Monday, Auditor General Jim McCarter stated that Ontario drivers are paying more for auto insurance compared to other Canadian motorists. This is in part because the average cost of accident injury claims is five times greater in Ontario. To read more on this story, click here.

In the aftermath of the wildfire in May that burned down nearly 400 homes in Slave Lake, a resident is facing delays with his insurance, meaning he can’t get a new home until 2013. Dr. Ashraf Khan is tired of fighting with insurers and instead is planning to leave Slave Lake and start new. Town officials estimate about 30 other families are also planning to leave. To read more on this story, click here.

FirstOnSite Restoration has officially opened a branch in Edmonton, Alta. The new location bolsters the company’s presence in the province and adds to the more than 40 branches it has across the country. FirstOnSite Restoration also opened a branch in Medicine Hat, Alta. earlier this year.

Workplace fraud in Canada costs small and medium enterprises (SMEs) billions of dollars each year, according to the Certified General Accountants Association of Canada. Collective losses are conservatively estimated at $3.2 billion for 2010. Despite this, 74% of businesses believe their exposure to occupational fraud is low, with 80% having no response plan in place and 59% undertaking no form of periodic risk assessment.

New products

Chubb has added cyber security insurance to Forefront Portfolio 3.0, which now allows US companies to select from nine management and professional liability coverages. The new cyber coverage will help protect private companies against damages and liability resulting from network security intrusions and privacy violations. Even if a claim for cyber liability is not triggered, the policy will respond to crisis management and privacy notification expenses in the event of a data breach.

In the direct market, PC Financial has launched on-the-go travel insurance for Canadian seniors. The firm provides up to $1 million dollars in emergency medical travel coverage for seniors aged 60 to 74. For less than $100, this includes single person coverage for up to eight days when travelling to out-of-province and worldwide destinations.

Also, Manulife Financial has launched a mobile website and travel app for customers to purchase travel insurance. The website and app allow customers to purchase the newly created CoverMe Travel Single Trip Emergency Medical plan at a daily flat rate, directly from their smartphones

http://www.citopbroker.com/news/weekly-news-roundup-6-3089