COVID 19 aid programs will have to end, others to be modified, Trudeau says

By Jordan Press

THE CANADIAN PRESS

OTTAWA _ The federal government is in talks with business and labour groups to figure out the future of billions in emergency aid, Prime Minister Justin Trudeau said one day after a warning that current spending was sustainable for only so long.

Emergency federal aid to date is approaching $152 billion in direct spending, which has pushed the deficit to an estimated $260 billion this fiscal year.

Parliament’s spending watchdog told a Senate committee Tuesday that current spending levels would limit the government’s ability to provide needed stimulus money during a recovery.

Budget officer Yves Giroux also said emergency programs had to sunset or else the country could be looking at tax levels not seen for generations.

Speaking outside his Ottawa residence Wednesday, Trudeau said some of the aid programs will have to be phased out.

Others, he said, would need to continue or be tweaked to aid in a recovery.

“We are still very much in the emergency phase, in the crisis phase of this, even as we’re seeing careful reopenings,” Trudeau said in response to a reporter’s question.

“We will, however, look very carefully at how we end certain programs, how we modify others in order to get our economy going again to where it was before (the pandemic) or even better.”

In his opening remarks, Trudeau seemingly previewed his thinking on the issue. He said fewer people would need help through the Canada Emergency Response Benefit as businesses reopen and workers are rehired, possibly with help from a federal wage subsidy.

The most recent CERB figures show more than $41 billion in benefits to 8.25 million people, pushing further beyond its $35-billion budget.

The first cohort of CERB recipients will max out their benefits the first week of July, raising questions about what to do with those who still don’t have a job, or those who can’t qualify for employment insurance.

“The focus of the next phase of the CERB has to be about those individuals and also create incentives to work for those individuals where some job may be available for them,” said Parisa Mahboubi, a senior policy analyst with the C.D. Howe Institute.

“The way that the CERB is designed may discourage them from accepting the job or looking for any job.”

A group of experts convened by the think tank recommended the government consider extending CERB eligibility beyond the July cutoff, but turn it into an income-tested benefit for those who go back to work.

Treasury Board President Jean-Yves Duclos told a midday press conference the CERB would likely lead to another support measure because something new will be needed to create a smoother recovery phase. What that might look like, he didn’t say.

Having greater transparency about support programs would help Canadians determine if money is being spent well, and maintain the credibility of aid programs while deterring fraud, said Toby Sanger, director of Canadians for Tax Fairness.

“You would just have better designed programs,” he said. “There could be better third-party judging of how well these programs have worked or haven’t worked.”

He cited a request from his group and others for public details on companies that receive federal support, such as through the $73-billion wage subsidy program.

Federal figures showed there have now been 181,883 unique applicants approved for the wage subsidy, which covers 75 per cent of wages up to a maximum of $847 per week for each eligible employee.

The total value of benefits paid stands at $7.9 billion.

Trudeau urged companies to sign up for the wage subsidy during his opening statement, echoing his request for landlords to use a commercial rent assistance program that opened for applications this week.

That program offers forgivable loans to cover half of monthly rents in April, May and June, as long as landlords drop rents by at least 75 per cent over the same period for eligible small businesses.

Giroux estimated the net federal cost of the program at $520 million this fiscal year. The budget officer’s report released Wednesday morning put caveats on that estimate, owing to the lack of clear precedent for this kind of program.

His report said that means the assumptions about industry eligibility and uptake by landlords “rely heavily on judgment.”

B.C. securities panel orders companies, founders to pay $37 million in fines

VANCOUVER _ A group of companies and its founders have been fined nearly $37 million by a B.C. Securities Commission panel that says they misled investors, conducted unregistered trading and illegally sold securities.

The panel says it ordered FS Financial Strategies and six other companies in B.C., Alberta and Ontario to pay $32.8 million for  “making misrepresentations to hundreds of investors” as well as illegally selling securities and unregistered trading.

It also ordered company founders Aik Guan (Frankie) Lim and Scott Thomas Low to pay $2 million each, and permanently banned them from B.C.’s investment markets.

The former general manager of the companies, Darrell Wayne Wiebe, has been ordered to pay $75,000 and is banned from B.C.’s investment markets for a decade.

The securities commission says in a news release that Lim, Low and the FS Group admitted to raising over $47 million from 389 investors without disclosing that the company wasn’t profitable and was covering its shortfalls by raising more money from investors.

The panel says in its decision that it’s unlikely the FS Group can repay investors, and after the commission issued a temporary order in 2017 against the companies, the Insurance Council of British Columbia suspended or terminated licences to sell insurance for the founders and the companies.

The commission also says Lim and Low sold $29 million in securities in violation of a 2014 legal commitment to the securities commission not to trade or distribute securities until one of its companies had filed the proper documents and refunded investor loans.

“The seriousness of the misconduct was magnified by the significant amount of money and large number of investors involved, and the duration of the misconduct,” the panel says in its ruling.

The commission’s news release says Lim, Low and the FS Group admitted to the misconduct in an agreed statement of facts filed last year. In a separate agreement, it says Wiebe admitted to going along with the conduct.

The agreements led to a hearing in February to determine the sanctions.

AXIS Insurance: Supporting our colleagues & business partners during this time of uncertainty

March 19, 2020  

At this time of great uncertainty, AXIS is committed to providing the underwriting expertise and claims service our clients and distribution partners deserve and expect. To help protect the safety of our team members, business partners and communities, our colleagues globally are working remotely. In addition, we have paused business travel across the entirety of our company.

We are fully operational with our teams using virtual meeting and collaboration tools to stay connected internally with our colleagues and externally with our clients and distribution partners. And we are prepared to address the concerns that may arise for our clients and partners in distribution.

We are monitoring COVID-19, and the guidance from the World Health Organization and government authorities in every region in which we have operations and critical vendor support. We are committed to protecting the health and safety of our colleagues while continuing to deliver superior client service and responsiveness.

We are grateful for the continued trust and partnership of our clients and distribution partners. Please contact us as you normally would with any questions or needs you may have in the coming days and weeks.

What Australia’s fires could mean for insurance & real estate in Canada

The excerpted article was written by 

Australia’s devastating fires have already destroyed nearly 1,900 homes, but they’re just one of the many types of hazards facing homeowners.

Climate change is raising the frequency and severity of a number of natural disasters, from flooding and cyclones to soil subsidence, which causes structural damage when clay soils start to contract during prolonged periods of drought.

The increased risk has implications for insurance and beyond, according to climate risk analyst Karl Mallon. A recent report from his firm, Climate Risk, projects that 720,000 homes, or five per cent of Australia’s housing stock, will be uninsurable by 2100 as coverage becomes unavailable or prohibitively expensive.

That kind of analysis has caught the attention of lenders. Two of Australia’s largest banks have recruited Mallon to help them assess how climate-related risks might affect their mortgage portfolios. One of them projected that increased insurance costs would increase its share of high-risk mortgages 10-fold in the span of around 40 years, from 0.01 per cent in 2018 to 0.1 per cent by 2060.

Data on exposure to flood risk is already driving decisions about whether to issue mortgages in some cases, Mallon said.

Over time, Mallon sees areas where getting a mortgage will become very difficult. The risk for those properties is that they’ll become hard to sell and eventually decline in value, he added.

The link between natural disasters, insurance and mortgages may be emerging in Canada as well. In both Australia and Canada, however, the issue seems to be centred around flooding for now.

Australia bushfires: Why the situation is likely to get worse

Australia bushfires: Why the situation is likely to get worse

What about fires?

Whether Australia’s extraordinary fire season will have an impact on insurance premiums remains uncertain.

For one, it’s only the beginning of the summer Down Under, and Australians are holding their breath for what the rest of the season might bring.

Until now, though, “bushfires traditionally have been no cause for concern on the insurance front,” Mallon said.

That’s because even though Australia is prone to fires, they haven’t caused damage on a scale that insurers would consider “an unacceptable probability,” he added.

It’s too soon to tell whether the current fires will change that.

Fire and water are significantly different beasts in the world of home insurance, said Rob de Pruis of the Insurance Bureau of Canada.

Overland flood insurance, which covers damage from water flowing above ground and seeping into buildings through doors, windows and cracks, only became available in 2015 in Canada. Its introduction was largely an industry response to the 2013 southern Alberta floods, which resulted in $6 billion in damages, of which just $1.7 billion was covered by insurance.

Damage from sewer backup is also a growing issue for insurers. They are facing both an increased likelihood of flooding caused by flash rain, which has been linked to climate change, and higher repair costs, partly because finished basements have become more common.

Home insurers are also struggling with a lack of up-to-date information about where flooding is likely to happen, although the government is working on updating Canada’s flood-risk maps, de Pruis said.

Severe flooding is also happening with increasing regularity, a problem for insurance, which is meant to cover events that are “infrequent and unforeseeable,” de Pruis said.

Fire, by contrast, is a familiar hazard to the home insurance industry, which traces its origins to the Great Fire of London in 1666, which nearly destroyed the city. Coverage for fire damage, including from wildfire, is standard in any home insurance policy.

Extensive losses from fires, on the other hand, have remained relatively rare in both Canada and Australia so far.

In Australia, for example, it usually takes several years after a bushfire for vegetation to grow back to a point where there is fuel for another fire, Mallon said.

In Canada, even the Fort McMurray fire of 2016, the most expensive event for insurers in modern Canadian history, did not shake the industry.

Canada’s domestic insurance companies had their own insurance to fall back on, something known as re-insurance, according to de Pruis. And the $3.7 billion in insured damages claimed by the Alberta blaze remain a relatively small price tag for the trillion-dollar giants of the global reinsurance market, which have seen natural disasters billed at tens of billions of dollars in other parts of the world, de Pruis said.

And for now, de Pruis added, there is just not enough information to predict the future of wildfires in Canada.

But experts warn climate change is helping make wildfires worse.

Mobile Phone Insurance Ecosystem Market Size | Incredible Possibilities

Source: All Times Tech

The research report presents a deep review of the Global Mobile Phone Insurance Ecosystem Market comprises of objectives analysis. The following segment centers around Mobile Phone Insurance Ecosystem market size, country-wise production revenue ($) and development rate estimation from 2019-2024.

The report additionally covers global Mobile Phone Insurance Ecosystem market share by industry players, product and applications. The report enables investors to evaluate the market, featuring the upcoming business opportunities, mindful of Mobile Phone Insurance Ecosystem industry news and arrangements by countries, technological development, limitations and difficulties in estimate years (2019-2024) and settle on a fundamental business decision.

Get Sample PDF of Report @ https://www.researchkraft.com/request-sample/973505

The key players covered in this study:

Allianz Insurance, AmTrust International Underwriters, Assurant, Asurion, Aviva, Brightstar Corporation, Geek Squad, GoCare Warranty Group, Apple, AIG

Market Segment by Type, the product can be Split into:

  • wireless carriers
  • insurance specialists
  • device OEMs
  • retailers

Market Segment by Application, Split into:

  • Physical Damage
  • Theft & Loss
  • Others

The Global Mobile Phone Insurance Ecosystem statistical surveying report studies the presence of the top to bottom market segments. The market is surveyed based on revenue (USD Million) and presents the significant players and providers affecting the market. Most of the Mobile Phone Insurance Ecosystem data, together with anticipated insights, is introduced in the report with the assistance of tables and figures and Mobile Phone Insurance Ecosystem introduction procedure causes the client to comprehend the market situation.

Get a discount on this research report @ https://www.researchkraft.com/check-discount/973505

Mobile Phone Insurance Ecosystem Market Regional Analysis Includes:

Americas, United States, Canada, Mexico, Brazil, APAC, China, Japan, Korea, Southeast Asia, India, Australia, Europe, Germany, France, UK, Italy, Russia, Spain, Middle East & Africa, Egypt, South Africa, Israel, Turkey, GCC Countries

The Mobile Phone Insurance Ecosystem report additionally forecasts global market growth, alongside characterization dependent on geographical conditions. The regions are delegated with information which is outfitted in the release of the global Mobile Phone Insurance Ecosystem market growth is consistently assembled from reliable industries for anticipating the advancement of each section.

Major Points Covered in Table of Contents:-

  1. Scope of the Report
  2. Executive Summary
  3. Global Mobile Phone Insurance Ecosystem Market by Players
  4. Mobile Phone Insurance Ecosystem Industry by Regions
  5. Americas
  6. APAC
  7. Europe
  8. Middle East and Africa
  9. Market Drivers, Challenges and Trends
  10. Marketing, Distributors and Customer
  11. Global Mobile Phone Insurance Ecosystem Market Forecast
  12. Key Players Analysis
  13. Research Findings and Conclusion

“Driving Choice” Gives BC Drivers a Voice to Demand More Choice in Auto Insurance

A new campaign called “Driving Choice,” has been launched to provide British Columbians with a voice to demand more choice in auto insurance. The campaign provides the facts about how auto insurance works in other provinces and looks to dispel the myths being spread by those seeking to maintain the status quo with the Insurance Corporation of British Columbia (ICBC).

Under ICBC’s monopoly, BC drivers pay the highest auto insurance rates in Canada, yet receive the same amount in benefits when they make a claim. At the same time, ICBC has lost more than $3 billion in the last three years alone, depriving the provincial government of funding that could be better invested in healthcare, education, and social services.

That’s why Driving Choice is giving a voice to British Columbians, so that they can let their Member of the Legislative Assembly (MLA) know that they want change and that they want choice in auto insurance.

A better future is possible, one where insurers compete on a level playing field so that drivers can choose the company that delivers the best coverage at the best price. It’s a choice most other Canadians enjoy, and British Columbians deserve.

“Driving Choice gives a voice to the overwhelming majority of British Columbians who want more choice in auto insurance,” said Aaron Sutherland, Vice-President, Pacific, IBC. “Under ICBC’s monopoly, British Columbians pay more for auto insurance than anyone else in Canada, and are denied the benefits of choice and competition.  It’s time to let drivers shop around, find savings, and choose the auto insurer that’s right for them.”

Join Driving Choice and make your voice heard. Contact your MLA to let them know you want choice. Visit www.drivingchoice.ca and follow the campaign on Facebook, Instagram and Twitter.

Additional resources

About Driving Choice
Insurance Bureau of Canada is supporting Driving Choice because auto insurers are eager to compete dollar-for-dollar with ICBC. They believe they can sell the same auto insurance for less and save drivers money. Why not let them? Change will only occur if drivers – and taxpayers – make their voices heard. Speak up and demand choice from your MLAs.

About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 128,000 Canadians, contributes $9.4 billion in taxes and has a total premium base of $59.6 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca. Follow IBC on Twitter @IBC_West and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422).

If you require more information, IBC spokespeople are available to discuss the details in this media release. To schedule an interview, please contact:

SOURCE Insurance Bureau of Canada

For further information: Vanessa Barrasa, Manager, Media Relations, 416-362-2031 ext. 4312, vbarrasa@ibc.ca

Related Links

www.ibc.ca

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