OmbudService for Life & Health Insurance appoints a new Chief Executive Officer & Ombudsman

TORONTO, Aug. 13, 2019 /CNW/ – The OmbudService for Life & Health Insurance (OLHI) announced today that its Board of Directors has appointed Mr. Glenn O’Farrell as Chief Executive Officer and Ombudsman. He will assume his functions in the Toronto office on August 19, 2019.

“The Board believes that his extensive experience in management, collaborating with stakeholders and leading organizational change in this age of technology will be essential attributes in executing OLHI’s mission” said Dr. Janice MacKinnon, Chair. “We are fortunate to have someone of Glenn O’Farrell’s caliber and experience to lead OLHI.  Glenn is a skilled communicator with deep leadership capabilities and has a proven track record of execution. His vast experience with the media will help further the development of the organization and promote its services by raising consumer awareness while continuing to strengthen OLHI’s relationships with their members and various stakeholders.”

A native of St-Malachie, Québec, Glenn studied economics, law, business and corporate governance at St. Francis Xavier University in Nova Scotia, Université Laval in Québec City, Johnson School of Management, Cornell University, Ithaca, N.Y.and at Rotman School of Management, University of Toronto. He is a member of the Québec Bar, Canadian Bar Association and Institute of Corporate Directors. He also has served on numerous company boards of directors as well as not-for-profit corporations.

Glenn said, “I am honored and excited to lead OLHI. Its is a privilege to be part of an organization governed by a fair and valuable purpose – providing Canadian consumers an independent, cost-free forum for the resolution of their complaints about life and health insurance products. I am looking forward to share my ideas and expertise in order to help promote our services and enhance the consumer’s experience when dealing with OLHI.”

Until recently, he held the position of CEO of Groupe Média TFO. Prior to this role, Glenn served as Vice-President, Réseau Pathonic TVA, Québec City; General Counsel, Chief Regulatory Officer, Senior Vice-President at CanWest Global, Toronto; President of Global Québec, Montreal, and President & CEO of the Canadian Association of Broadcasters, Ottawa.

About the OmbudService for Life & Health Insurance
The OmbudService for Life & Health Insurance (OLHI) is Canada’s only independent complaint resolution service for consumers of Canadian life and health insurance. Canadians trust us to review their insurance complaints about life, disability, employee health benefits, travel, and insurance investment products such as annuities and segregated funds. OLHI’s free bilingual services are available to any consumer whose insurance company is an OLHI member – and, currently, 99% of Canadian life and health insurers are. OLHI also offers general information online about life and health insurance. To ensure impartiality, OLHI’s operations are overseen by the Canadian Council of Insurance Regulators (CCIR). For more information, visit www.olhi.ca.

SOURCE OmbudService for Life & Health Insurance

AXA XL Names New Senior Underwriter for Large Property Insurance in Canada

AXA XL has added Jennifer Arezes to its Property Insurance team in Canada. Ms. Arezes is based in Toronto and will work alongside Ian Rutherford, Head of Property, Canada and Urs Uhlmann, CEO and Country Manager AXA XL, Canada to grow AXA XL’s Property & Casualty Large Property business nationally.

“We’re very excited to have Jennifer join our growing team of experts in Canada,” said Mr. Uhlmann. “She is one of the best in the industry and her extensive experience will bolster not only our underwriting capabilities but will be a great asset to our strategic growth objectives in the large, international property risks space.”

In this new role, Ms. Arezes will be responsible for developing and structuring tailor-made risk solutions to win new business and retain existing customers with particular focus on Canadian clients with global exposures.

“As the largest commercial insurer in the world, we have a unique opportunity for continued growth across Canada. Jennifer’s expertise and in-depth knowledge of the market is a great asset to our team and most importantly, will enhance our ability to provide outstanding service to our clients and brokers,” added Mr. Rutherford.

Ms. Arezes joins AXA XL from Zurich where she most recently led the Commercial Property Insurance business.  She brings more than 15 years of industry experience focusing on property underwriting across a wide range of business lines. Ms. Arezes holds a degree in Biological Technology/Industrial Microbiology from Centennial College of Applied Arts and Technology.

AXA XL’s North America Property business meets the global and domestic property insurance needs for a wide variety of commercial businesses and industries. Coverages include Equipment Breakdown E&S Property and General Property, delivered by a dedicated team of underwriters, risk engineers and property claims managers who specialize in addressing large, complex property risks.

Intact Financial Corporation strengthens its supply chain network with acquisition of On Side Restoration

Intact Financial Corporation (TSX:IFC) and On Side Developments Ltd., the parent company of On Side Restoration (“On Side Restoration“) today announced that they are joining forces to strengthen repair and restoration services for personal and commercial property claims customers across Canada. With this acquisition IFC will deepen its claims expertise and strengthen its supply chain network. The transaction is expected to close on or before October 1, 2019 subject to certain conditions, including regulatory approval.

On Side Restoration is a national restoration firm, based in Vancouver, with more than 1,200 employees and 35 branches coast to coast. Its reputation for excellent customer service along with 40 years of claims experience makes it a strong strategic fit for IFC.

“Our claims service is a key differentiator and is at the heart of what we promise. On Side Restoration is already an important part of our Rely Network of preferred vendors and they have a track record of providing excellent customer service and helping us deliver on that promise,” said Charles Brindamour, Chief Executive Officer, Intact Financial Corporation. “By taking ownership in the supply chain and combining our strengths we can ensure simpler, faster and consistently higher quality outcomes for property claims customers. This transaction will reduce claims handling costs and provide diversification to our property exposures with a new and counter cyclical earnings stream,” added Mr. Brindamour.

“With this agreement we are combining two leading companies who are keenly focused on providing the highest levels of professionalism, care, and exceptional customer service in property restoration,” said Craig Hogarth, Founder and President, On Side Restoration. “Becoming part of the Intact family is an exciting next step that will fuel another 40 years of growth as we continue to build our business and serve a wide variety of clients, including other key partners and insurers,” added Mr. Hogarth.

IFC has been steadily increasing collaboration over time with On Side Restoration to reduce cycle times and simplify processes for an improved customer experience. Through this acquisition IFC expects to further increase operational efficiencies and improve customer satisfaction by reducing the duplication of processes and controls, which will result in quick decision making and faster completion of repair and restoration work.

The property supply chain, namely restoration services, is a growing area of business, particularly as our communities are experiencing more frequent weather events. Intact will gain full ownership of On Side Restoration over a two-year period for a variable purchase consideration which is based in part on future profitability metrics. The purchase price will be financed from internal resources. The acquisition will provide immediate low single digit accretion to NOIPS, and mild accretion to ROE.

About On Side Restoration
On Side Restoration is one of the nation’s leading Canadian-owned restoration companies with 35 branches from Victoria, BC to St. John’s, Newfoundland. For the past 40 years the company has been restoring damaged homes and businesses 24 hours a day, 365 days a year. Proprietary internal systems include eClaim, a transparent web-based file management software program, and On Side LiVE, their 24 hour customizable emergency call centre. Experienced and certified crew operate On Side Restoration’s extensive fleet of emergency response vehicles and leverage their 13,000+ pieces of specialty equipment. Further information about On Side Restoration can be found at www.onside.ca.

About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada and a leading provider of specialty insurance in North America, with over $10 billion in total annual premiums. The Company has approximately 14,000 full- and part-time employees who serve more than five million personal, business and public-sector clients through offices in Canada and the U.S. In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. In the U.S., OneBeacon Insurance Group, a wholly-owned subsidiary, provides specialty insurance products through independent agencies, brokers, wholesalers and managing general agencies.

Forward Looking Statements
Certain statements included in this press release, including without limitation, the timing for completion of the proposed acquisition, management’s estimates and expectations in relation to resulting accretion, internal rate of return, net operating income per share, annual synergies, operational efficiencies and risk diversification are forward looking statements. The words “will”, “expected to” and comparable words or phrases are intended to identify forward looking statements. Forward looking statements are based on estimates and assumptions made by management in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances.

Many factors could cause IFC’s actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward looking statements, including without limitation, the terms and conditions of, and regulatory approvals relating to, the proposed acquisition, timing for completion of the proposed acquisition and various other actions to be taken or requirements to be met in connection with the proposed acquisition and the factors discussed in IFC’s most recently filed Annual Information Form and annual Management’s Discussion & Analysis. These factors are not intended to represent a complete list of the factors that could affect IFC. These factors should, however, be considered carefully.

All of the forward-looking statements included in this press release are qualified by these cautionary statements. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, IFC cannot assure investors that actual results will be consistent with these forward-looking statements. When relying on forward-looking statements to make decisions, investors should ensure the preceding information is carefully considered. Undue reliance should not be placed on forward-looking statements made in this press release. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.

SOURCE Intact Financial Corporation

For further information: Media enquiries: Stephanie Sorensen, Director, External Communications, Intact Financial Corporation, 416-344-8027, stephanie.sorensen@intact.net; Sonia Manson, Communications Manager, On Side Restoration, 647-464-3092, media@onside.ca; Investor enquiries: Ken Anderson, Vice President, Investor Relations and Treasurer, Intact Financial Corporation, 855-646-8228, ext. 87383, kenneth.anderson@intact.net; Neil Seneviratne, Director, Investor Relations, Intact Financial Corporation, 416-341-1464 ext. 45156, neil.seneviratne@intact.net

Related Links

www.intactfc.com

Ontario’s Worst and Best Cities based on driving records revealed, new 2019 study

A graphic of two cars colliding.We grade the cities across Ontario based on tickets and collisions of its hometown drivers.

Your driving record and history has a direct impact on the auto insurance premiums you pay. With tickets and collisions on your record, you can expect to pay more for your auto insurance than if you didn’t. It’s a reality that most drivers know and expect.

You might also expect, however, that residents in large urban areas, like Toronto, would report having more tickets on their driving record, on average, as well as collisions. It’s a big city after all with more vehicles on the road and drivers, and thus a greater chance for something to happen.

Yet, according to InsuranceHotline.com this may be a myth. Based on the details provided by shoppers who obtained Ontario auto insurance quotes, you have to look beyond Toronto’s borders to find the cities whose drivers admit to having the most tickets, collisions, or a combination of the two, on their driving record. These are infractions and collisions that could have occurred in the driver’s hometown or anywhere their travels have taken them.

We measured all three categories, and then assigned each city a grade based on its variance from the Ontario average.

In Orangeville, for example, drivers were 1.9 times as likely to have a ticket, accident, or both, on their record than the Ontario average. In North York, a driver is 22 percent less likely to have a ticket, crash or both on their record than the average, and Toronto drivers are 21 percent less likely to have a black mark on their driving record.

The Top 10 Worst Cities in Ontario for Driving

City/Town Grade
Orangeville D
Bradford D
Woodstock D
Sault Ste. Marie D
Brantford D
Orillia D
Thunder Bay C
St. Thomas C
Caledon C
Barrie C

The Top 10 Best Cities in Ontario for Driving

City/Town Grade
North York A
Toronto A
East York A
Etobicoke A
Mississauga A
Brampton A
Scarborough A
York A
Thornhill A
Oakville A

Breaking it Down

The Lowdown on Tickets

On average, 6.9 percent of drivers in the province admit to having at least one ticket on their driving record while getting quotes. However, drivers in some cities and towns exceed this average considerably.

City/Town % of Drivers with a Ticket (No collision)
Caledon 15.0%
Orangeville 13.2%
Bradford 12.2%
Peterborough 12.0%
St. Thomas 11.2%
Sudbury 11.0%
Thunder Bay 10.9%
Bolton 10.8%
Stoney Creek 10.6%

Accidentally Speaking

From a collision standpoint, overall 8.9 percent of Ontario drivers admit to having been involved in a collision in the last 10 years. Yet, there are areas in the province where the average is two full percentage points higher.

City/Town % of Drivers with a Collision (No tickets)
Woodstock 13.6%
Orleans 12.8%
Sault Ste. Marie 12.4%
Kanata 12.3%
Gloucester 12.2%
Whitby 11.5%
Pickering 11.5%
Brantford 11.3%
Orillia 11.2%
Burlington 10.9%

Double Trouble

Having both a ticket and collision on your driving record is detrimental to your auto insurance premiums and approximately 3.5 percent of Ontario drivers admit to having at least one of each in their relatively recent past. In 13 communities across the province, however, the average is 5.5 percent or higher.

City/Town % of Drivers with both a Ticket and Collision
Orangeville 9.4%
Bradford 8.4%
Sault Ste. Marie 8.4%
Woodstock 7.4%
Brantford 6.9%
Orillia 6.6%
Cambridge 6.3%
Thunder Bay 6.3%
St. Thomas 5.9%
Barrie 5.9%
Welland 5.8%
Oshawa 5.6%
Pickering 5.5%

What’s It All Mean to Your Ontario Car Insurance?

Your driving record matters. Your driving record is an influential factor in determining your Ontario auto insurance rate. Sure, there are others like where you live, your insurance history, and the type of car you drive; but your driving record and history is indicative of how you are when behind the wheel. Every at-fault (or partially at-fault) accident or traffic ticket conviction will likely increase the cost of your premiums.

What’s more, traffic ticket convictions affect your insurance rates for no less than three years and accidents stay on your record for at least six! With a less than perfect driving record, you can find yourself paying a lot of extra premium over the years.

Whatever your driving record, compare quotes each year to ensure you are getting the best car insurance rates going. Each insurance company calculates their rates differently and if your driving record changes, for any reason, the insurer who last offered you the best insurance rate, may no longer be your best choice.

Compare car insurance quotes at InsuranceHotline.com from 30+ providers in a single search. Start saving money today on the premiums you pay.

Apollo Insurance Solutions Recruits Insurance Industry Veteran Victor Lange

Vancouver, BC, July 24, 2019 (GLOBE NEWSWIRE) — Victor Lange has officially joined Apollo Insurance Solutions Ltd. (“Apollo”) as Chief Operating Officer, bringing with him over 20 years of industry experience to the nascent insurtech industry. Lange has worked with Canada’s largest insurance company, Intact Insurance, and as COO of one of western Canada’s largest privately held commercial insurance brokerages, Wilson M. Beck. The significant executive move further signals a shift in the focus of insurance experts, away from organizations who foster traditional lengthy insurance processes and toward forward-thinking organizations who are focused on providing fast, convenient digital solutions of the future.

“Victor is a powerhouse in the insurance industry, and his leadership and insight will be extremely valuable in keeping Apollo at the forefront of the digital insurance space race,” says Apollo Co-Founder and CEO, Jeff McCann. “This appointment is where global insurance experience meets a nimble insurtech startup. Victor’s track record of leading high performing teams will be critical not only to our continued growth, but to our team’s ability to dial in Apollo’s sophisticated operations and accelerate our impact on this new, digital frontier.”

Victor will be joining Apollo at its Vancouver head office where he will oversee all company operations and work in lockstep with Co-Founder and CEO, Jeff McCann, as the company continues to rapidly onboard insurance brokers and successfully roll out new insurance products from multiple insurance carriers onto the Apollo Exchange.

“I’m excited to step into this role to take Apollo’s progress to the next level,” says Lange. “I identify strongly with Apollo’s entrepreneurial spirit and believe in Apollo’s vision to revolutionize this industry. This is a challenge we intend to win.” In addition to Intact Insurance and Wilson M. Beck, Lange’s resume also includes over a decade of senior management experience with international firms such as Zurich, AXA, and JLT.

Apollo Insurance is Canada’s largest online insurance marketplace. Apollo empowers the broker channel with its proprietary Exchange platform that enables brokers to instantly quote, bind, and issue policy documents for hundreds of classes of small business. Brokers using the Apollo Exchange platform are able to respond to the changing expectations of buyers and young employees.

About Apollo Insurance Solutions

Headquartered in Vancouver’s Gastown neighbourhood, Apollo Insurance Solutions is Canada’s largest online insurance marketplace. Co-founded by Jeff McCann, David Dyck, Justin Hamade, and Drew Green, Apollo was created to empower brokers to better serve small businesses by giving them 24/7 access to digital insurance.

Apollo Exchange offers Canada’s brokers access to multiple insurance providers, with over 500 classes of insurance. Unlike the traditionally lengthy insurance policy and application process – which can take up to six weeks – Apollo users can quote, pay, and have their policy documents issued online in just under five minutes, allowing them to focus on the important stuff: building trusted relationships and offering strategic, thoughtful counsel.

Following the completion of its Beta testing in April 2019, Apollo successfully closed its angel round of funding, raising $1 million CAD with the support of notable investors, including Drew Green, Matias Marquez, Kim Kaplan, and Caliber Ventures. Acting members of Apollo’s Board of Directors are leading industry and entrepreneurial figures Drew Green, Steve Albiani, Tim Gamble, and Jeff McCann. In June 2019, the company launched a first of its kind, digital, monthly subscription service. For more information, visit: http://story.apollocover.com

Online Distribution Of Insurance: A New Framework For Québec

Article by Catherine Jenner, Stuart Carruthers, Fabian Firas Bargout and Andrew S. Cunningham

On June 13, 2019, the main provisions of the new Québec Insurers Act and amendments to the Act respecting the distribution of financial products and services (“Financial Products Act”) came into force. Among other things, these provisions set out the regulatory requirements for insurers and insurance intermediaries selling insurance online in Québec (online insurance has been sold in Québec for many years, but without formal regulation).1

The finalized Regulation respecting Alternative Distribution Methods (“Online Insurance Regulation”) sets out details of the new obligations on insurers and insurance intermediaries. The draft regulation (“Draft Regulation”) that was published in 2018 has undergone a number of changes in response to industry comments.

Insurers and insurance intermediaries have until June 2020 to comply with certain of their new obligations as set out below.

Framework for the Sale of Online Insurance

The Online Insurance Regulation regulates:

  • online offers of insurance by intermediaries and insurers registered as a firm under the Financial Products Act (intermediaries and such registered insurers, collectively, “Firms”) without the intermediary of a natural person; and
  • offers of insurance through a distributor.

The finalized regulation (taken together with the AMF’s commentary on it) excludes non-transactional websites, such as most websites that facilitate comparison shopping, unless, in consideration of a commission or any other remuneration, such websites redirect users to a Firm’s website to conclude an insurance policy. [s. 2; Financial Products Act, s. 71, para. 3] This exception was absent from the Draft Regulation.

Disclosures to the AMF

Initially, Firms must disclose certain information about their website and the products offered on it to Québec’s insurance regulator, the Autorité des marchés financiers (“AMF”). [s. 4] Firms are also required to make annual disclosures with respect to the:

  • Amount of premium written;
  • Number of policies issued;
  • Number of financial plans prepared;
  • Number of claims settled; and
  • How often clients cancelled their policies within the 10-day period provided for by s. 64 of the Insurers Act. [s. 5]

Disclosures to clients

The final Online Insurance Regulation makes several changes to a Firm’s disclosure obligations, including:

  • Firms are required to ensure that the means to interact with one of its representatives (e.g., a chatbox) is visible at all times [s. 8, para. 1]; and
  • Firms are required to inform the client about his/her right of rescission or cancellation and the procedures for exercising it after the conclusion of the contract, not before. [s. 12, paras 1(3), 2]

Website

The Online Insurance Regulation also contains provisions relating to the design, operation and monitoring of Firms’ websites. The Regulation makes the following notable changes:

  • The scope of a Firm’s confidentiality and security obligations is broadened with respect to the storage of clients’ information as well as its collection, use, and delivery; [s. 13, para. 3]
  • Firms are required to interrupt offers of insurance of persons that are likely replacing other contracts where the replacement cannot proceed through the website in accordance with s. 22 of the Regulation respecting the pursuit of activities as a representative; and [s. 14, para. 2]
  • Firms are required to suspend proposals for insurance of persons where no representative can immediately interact with a client who has asked to interact with a representative and where there is a risk that the client, despite the information that the Firm sent to him or her, is unable to make an informed decision. [s. 14, para. 3]

Related advertising permitted

In a significant change from the Draft Regulation, the finalized Online Insurance Regulation does not prohibit advertising when the client is in the process of completing his application, unless it is “unrelated to the product or service”. While the AMF had previously argued for an outright prohibition, the government appears to have accepted industry submissions that related advertising could provide valuable information to a customer. [s. 18(1)]

Offers Through a Distributor

With respect to the distribution method of offering insurance, the Online Insurance Regulation modifies the obligations of both insurers and distributors.

Medical/lifestyle information

With respect to the collection by distributors of a client’s medical or lifestyle-related personal information, the finalized Online Insurance Regulation requires the distributor to deliver a notice of specific consent to the client, but only if the distributor wishes to use the information for purposes other than those for which it was collected. [s. 25] The Draft Regulation included a broader notice requirement.

Disclosure to the AMF

Insurers must disclose to the AMF information that is similar to what must be disclosed in the case of online insurance (see above):

  • Amount of premium written;
  • Number of insurance policies and certificates issued;
  • Number of claims and amount of indemnities paid;
  • Number of rescissions and cancellations; and
  • Remuneration paid to distributors and third parties. [s. 21]

If an insurer removes a distributor from its distributors’ list, it must inform the AMF of the reason. [s. 20, para. 3] One other change from the Draft Regulation is that insurers will be given 30 days to disclose any changes in their initial disclosure. [s. 20, para. 2]

Disclosure to clients

The Online Insurance Regulation requires insurers to require distributors to deliver a product summary at the time they offer the product to clients, together with a fact sheet in a form prescribed by the Online Insurance Regulation. The fact sheet is a document prepared by the AMF that lists relevant consumer rights, whereas the summary is a concise document that is prepared by the insurer to explain its product, both broadly and through such specific information as the product coverage, exclusions, and limitations. [ss. 22, 28–29, Sched. 2] A summary and a specimen of an insurance product policy should be available on the insurer’s website if the product is offered by distributors. [s. 32]

Monitoring

As part of insurers’ obligation to supervise and monitor their distributors’ offering of products, insurers are required to adopt and implement procedures to supervise and train distributors and their representatives [s. 33]. These procedures may be helpful because insurers are liable for any acts of distributors or their representatives in connection with underwriting an insurance policy or enrolling a participant [Insurers Act s. 65].

Prohibitions

Finally, the Online Insurance Regulation establishes several prohibitions relating to how insurers pay distributors, including a prohibition on profit-sharing and bonuses. [s. 35(2)]

Next Steps: Effective Date and Transitional Provisions

The Online Insurance Regulation came into force on June 13, 2019, with the exception of certain provisions that will not take effect until June 13, 2020. These include the requirements:

  • to make readily accessible on their websites a specimen of the policy for each offered product and any available endorsement, if applicable;
  • to adopt and implement a procedure regarding the design, use, and maintenance of their websites and regarding the management and mitigation of risks; and
  • to adopt and implement procedures to supervise and train distributors and their representatives.

In addition, until June 13, 2020, the insurer’s new obligation to deliver a summary and a fact sheet to distributors is deemed to be satisfied by delivering to clients a distribution guide that was provided to the AMF before June 13, 2019 in accordance with the requirement that existed prior to the coming into force of the new regime.

Footnotes

1. The amendments also set out rules for offering financial planning and claims adjustment services online which will not be summarized here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Source: Mondaq

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