Chubb Expands Insurance Solution in Canada to Address Exposures …

Chubb is now providing expanded insurance coverage through its Private Equity+SMoffering to address the unique risks of Canadian private equity firms. Designed as a comprehensive solution, these extended offerings help transfer and mitigate many of the private equity firms’ most significant liabilities by combining four management liability coverages including management (Directors and Officers), outside directorship, professional services (Errors and Omissions), and Employment Practices Liability in one policy.

“Private equity firms in Canada face a variety of unique and personal liability exposures due to their wide range of responsibilities. As a result, they need a comprehensive insurance product that addresses their ever-evolving activities,” said Carol McLellan, Vice President, North America Financial Lines, Chubb. “Chubb understands private equity exposures and has a long history serving the private equity marketplace, which enables us to deliver market-leading coverage enhancements, including the coverage extensions now embedded in this unique new product.”

Some of these coverage extensions include:

  • Portfolio company pre-acquisition defence costs that may arise from lawsuits brought against the private equity firm as controlling shareholder of a portfolio company – even when the alleged acts of the portfolio company precede the private equity firm’s acquisition date
  • Crisis costs incurred by the private equity firm, including hiring a public relations firm to mitigate the potential reputational damage resulting from the termination of a key executive
  • Defence costs incurred by a private equity firm executive as a result of his or her being interviewed by regulatory enforcement agencies

Chubb began offering coverage to private equity firms in 1997, and was one of the first insurers to develop integrated management and professional liability insurance products tailored for this market.

“Private equity firms select Chubb to be their primary insurance carrier based on our breadth of experience, financial strength, exceptional service capabilities and fair claims handling proficiencies,” said McLellan.

For more information on Private Equity+SMclick here, or contact your local Chubb broker to craft an insurance program to meet your firm’s unique and evolving needs.

About Chubb 
Chubb is the world’s largest publicly traded property and casualty insurance company, and the largest commercial insurer in the United States. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in ZurichNew YorkLondonParis and other locations, and employs more than  30,000 people worldwide. Additional information can be found at: chubb.com.

Chubb Insurance Company of Canada has offices in TorontoCalgaryMontreal and Vancouver and provides its products and services through licensed insurance brokers across Canada. For additional information, visit: chubb.com/ca.

SOURCE Chubb

Great West Lifeco consolidating brands in Canada under Canada Life banner

By Armina Ligaya

THE CANADIAN PRESS

Great-West Lifeco Inc. will be consolidating its three Canadian life insurance companies under a single brand, Canada Life, in a bid to reduce duplication and better compete in an increasingly digital world, its chief executive says.

The amalgamation of Great-West Life Assurance Co., London Life Insurance Co. and the Canada Life Assurance Co. brands under one banner, and a new logo, will allow for more efficient communication with its customers using one “strong voice,” as interactions occur more via digital and social channels rather than face-to-face, said Paul Mahon, head of the Winnipeg-based financial services holding company.

In addition to the brand unification, Great-West Life, London Life, Canada Life and their holding companies Canada Life Financial Corporation and London Insurance Group Inc. have also begun the process to formally amalgamate as one company. Both moves are not expected to result in any job losses, he said.

“To a large extent, this is really a growth play,” Mahon said in an interview.  “This is us positioning ourselves for stronger and faster growth in the marketplace, because we fundamentally believe that we can be more focused, we can be faster to market and we can invest more in innovation.”

Great-West, which has more than 11,000 employees across Canada and is a member of the Power Financial Corp. group of companies, said Wednesday that its businesses in the U.S. and in Europe are not affected by this change. As well, its other subsidiaries Quadrus Investment Services Ltd., Freedom 55 Financial, GWL Realty Advisors and GLC Asset Management Group Ltd. will all retain their current branding.

Mahon expects that by the end of 2019, all of the company’s individual or retail products will be migrated to the new brand and throughout 2020, its group insurance customers will transition from Great-West brand to the Canada Life brand.

The overall brand transition will take two or three years, he added.

Once the process of brand transition is complete, this ends the long run of two prominent insurance names in the Canadian market, after Great West Life Assurance Co and London Life were founded in 1891 and 1874, respectively.

The company amalgamation, a multi-step process which requires board, regulatory and policyholder approvals, is not expected to result in any significant impact on its geographic footprint or its existing office structure either, said Mahon.

He notes that when Great-West Life first merged with Canada Life and London Life it did a lot of back-office integration. At the time, the company decided to keep the iconic brands separate in order to reach more Canadians through the associated distribution channels, but the landscape has changed quite a bit over the years, Mahon said.

“As time has evolved, we have ended up in a situation where there is a lot less product differentiation across the various channels that we support,” he said.

The company says it now has more than 13 million customers across the country. When asked where the amalgamated entity will be headquartered, the company said the process has just begun and more information will be provided in due course.

Great-West is headquartered in Winnipeg, while London Life and Canada Life are headquartered in London, Ont., and Toronto respectively.

Scott Chan, an analyst with Canaccord Genuity Corp. in Toronto, said the moves announced Wednesday have  “limited financial impact to earnings” and left its earnings per share estimates for the Winnipeg-based company in tact.

“With more digital capabilities, one brand should improve marketing effectiveness, allowing cross-selling capabilities with a consistent image,” he said in a note to clients.

Canada’s Changing Climate Report Confirms Increase in Extreme Rainfall

OTTAWAApril 2, 2019 /CNW/ – Today, the Government of Canada released Canada’s Changing Climate Report. This first report, part of the government’s Canada in a Changing Climate: Advancing our Knowledge for Action, provides a firm scientific foundation for future analyses and is a valuable tool for governments who are looking for ways to adapt and make their communities more resilient.

The report concludes that Canada is seeing the effects of widespread warming and projects that they will intensify in the future. Annual precipitation is projected to increase in all regions of Canada[1] and a warmer climate is expected to intensify some weather extremes. Projected increases in extreme precipitation are expected to increase the potential for future urban flooding.

The report says Canadians can expect extreme hot temperatures to become more frequent and more intense. This will increase the severity of heatwaves and contribute to increased drought and wildfire risks. While inland flooding results from multiple factors, more intense rainfalls will increase urban flood risks. Under the high emission scenario explored in this report, a current 1-in-20-year extreme rainfall event will become a 1-in-10-year event by mid-century (a two-fold increase in frequency).

The report clearly points to the need to adapt now to make our communities more resilient.

“The property and casualty insurance industry continues to see the devastating effects of this new era of an unpredictable, changing climate,” said Don Forgeron, President and CEO, IBC.

“Last year, insured damage from severe weather across Canada reached $2 billion, the fourth-highest amount of losses on record,” continued Forgeron. “However, unlike the 1998 Quebec ice storm, the 2013 Calgary floods or the 2016 Fort McMurray wildfire, no single event caused the high amount paid out for losses in 2018. Instead, Canadians and their insurers experienced significant losses from a host of smaller severe weather events from coast to coast.”

IBC has encouraged all levels of government to increase their investments in mitigating the impact of extreme weather and building resiliency to its damaging effects. In addition to advocating for upgraded infrastructure to protect communities from floods, IBC is also advocating for improved building codes, better land-use planning, and incentives to shift the development of homes and businesses away from areas that are at highest risk of flooding.

The storm that hit Ontario on February 24 and 25, 2019, with damaging wind gusts, freezing rain and blizzard conditions caused over $48 million in insured damage. This is just the first severe weather storm to hit Ontario in 2019. In 2018, insured losses from severe weather reached $1.3 billion in that province.

It is not only insurers that foot the bill for severe weather damage. For every dollar that insurers pay out for home and business insurance claims, IBC estimates that governments pays out $3 to recover the public infrastructure that is damaged by severe weather.

Follow us on Twitter @InsuranceBureau or 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.

Beazley launches specialist design build liability insurance

Beazley has launched a comprehensive professional liability insurance offering designed to meet the needs of construction contractors and design/build firms in Canada.

Design Build provides comprehensive first- and third-party liability cover including full access to Beazley’s market-leading breach response team, BBR Services, in the event of a cyber or data breach.

The policy covers firms’ costs to rectify defects arising out of work carried out by themselves or their subcontractors and for emergency pollution clean-ups that occur during the course of the building work.

Third-party liability coverage protects policyholders against claims arising from design work done either by their team or a sub-contractor. In addition to contractor’s pollution liability, transportation pollution and non-owned site pollution are included in the policy as well as coverage for mould and technology and advertising.

The cover is available to Canada-domiciled firms on a primary and excess basis.

Coverage enhancements also include:

  • Consent to settlement (softened hammer) clause – enables Beazley and insured to equally share costs incurred after insurer settles a claim
  • Asbestos and lead paint coverage
  • Mediation credit
  • Definition of insured – to also include licensed or similarly qualified professionals
  • Waiver of subrogation against the insured’s clients here contractually required
  • Worldwide territorial coverage for Canadian domiciled firms

With the threat of a cyber-attack now a reality for all organisations, Design Build provides firms that suffer a breach with access to BBR Services’ team of cyber breach professionals to assist at every stage of an incident investigation and breach response.

Nancy Brady, Beazley underwriter and product lead, said: “Over three decades of underwriting liabilities for building and design firms, Beazley has developed a deep understanding of the liabilities that design professionals and construction contractors face. In Canada, and globally, we help firms of all sizes, from sole proprietors to some of the country’s largest design firms, to manage the evolving risks they face. Bringing together underwriting, claims and risk management expertise across cyber, pollution and construction risk, the Design Build coverage provides extensive coverage to protect contractors and design/build firms in today’s highly regulated and often litigious environment.”

Note to editors:
Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations 
in Europe, the US, CanadaLatin AmericaAsia and Australia. Beazley manages six 
Lloyd’s syndicates and in 2018 underwrote gross premiums worldwide of $2,615 million. All Lloyd’s syndicates are rated A by A.M. Best.

Beazley’s underwriters in the United States focus on writing a range of specialist insurance 
products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., 
an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.

Beazley is a market leader in many of its chosen lines, which include professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.

For more information please go to: www.beazley.com

SOURCE Beazley

IBC issues warning for Atlantic Canada to prepare for spring storm

Environment Canada issued a mixture of snowfall and rainfall warnings for Nova ScotiaNew BrunswickPrince Edward Island and Newfoundland and Labrador. Atlantic Canadians are encouraged to monitor their local weather. The region has seen rain and snow combined with high winds overnight and is expected to continue throughout the day.

Insurance Bureau of Canada (IBC) would like consumers to prepare for potential flooding to protect themselves from harm. During a severe weather event, everyone’s priority must be their personal safety and the safety of loved ones and neighbours.

Many Canadian insurers now offer some form of overland flood insurance for homeowners which, along with sewer backup coverage, helps reduce the financial hardship of these events. However, most often these products are optional and may need to be added to your home insurance policy, so it’s important to check with your insurer to confirm whether you have coverage or if you are able to purchase it.

What to expect from insurance coverage for water damage

  • Damage as a result of sewer backup may be covered by home insurance if the coverage was either included in your home policy or you purchased it as an add-on to your policy.  Varying amounts of sewer backup coverage might be available to you, so contact your insurance representative to discuss.
  • Damage to vehicles caused by water is usually covered if you carry comprehensive or all perils coverage, but remember this  coverage isn’t mandatory, so check your policy or talk to your insurance representative.
  • Not all home insurance policies in Canada cover overland flooding and only some offer coverage for groundwater seepage.
    • Overland flooding usually occurs when bodies of water, such as rivers, streams, lakes, dams and other watercourses, overflow onto dry land and cause damage.

Tips for starting the claims process

When it is safe to do so, take these steps to begin the insurance claims process:

  • Assess and document potential damage. Taking photos can be helpful.
  • Call your insurance representative to report your damage.
  • Keep good notes and be as detailed as possible when providing information. Be sure to keep all receipts related to cleanup.
  • Contact IBC’s Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422 ext 228) if you need further information about home, business or car insurance,

For more information on how to protect property against severe weather, floods and other disasters, visit IBC’s website.

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 126,000 Canadians, pays $9 billion in taxes and has a total premium base of $54.7 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca. Follow us on Twitter @InsuranceBureau or 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.

If you require more information, IBC spokespeople are available to discuss the details in this media release.

SOURCE Insurance Bureau of Canada

Lawyers file court challenge over ICBC’s new limits on auto insurance payouts

By Justine Hunter | The Globe and Mail

A group representing B.C.’s trial lawyers is asking the courts to overturn new limits on automobile insurance payouts that they say discriminate against people with disabilities.

Effective Monday, the provincial government imposed new rules to curb skyrocketing payments for minor-injury claims by capping settlements for pain and suffering at $5,500 and limiting when accident victims can sue.

The province is the last in Canada to abandon a system in which victims could sue for any type of injury − known as a full tort system.

But the Trial Lawyers Association of British Columbia filed a constitutional challenge on Monday. They say the challenge is to protect the Charter rights of British Columbians because the right to sue is a basic human right.

Rather than waiting for an individual complainant to challenge the law, the case is filed on behalf of “Jane Doe,” an individual whose identity is not yet known who suffers a “minor injury” as a result of an accident and has to follow the new rules.

Attorney-General David Eby said he is confident the amendments will stand up in court. “We believe the amendments we have made are not just constitutional, but good public policy,” he said in an interview.

Basic auto insurance in the province is only available through the Crown-owned Insurance Corp. of B.C., which is on track to post its second $1-billion deficit in a row. Without the caps, he said, insurance rates would have had to climb significantly this year.

Mr. Eby said the changes are expected to restore ICBC’s fiscal health, even after the province has boosted support for those needing medical services after an accident.

“We need to stop the bleeding at ICBC and this is a $1-billion reform that will actually increase benefits for British Columbians,” he said.

The diagnosis of injuries are made by a doctor and ICBC will then assess whether the injury falls under new definitions for a minor injury.

British Columbians with motor-vehicle-accident claims totalling $50,000 or less will have to resolve them through an online dispute resolution tribunal, without the opportunity to go to court.

Shelley Howard, executive director of the non-profit Campbell River Head Injury Support Society, said she is concerned that some accident victims may be caught under the new cap before they realize the extent of their injuries.

“The medical world doesn’t always recognize brain injuries right off the bat. It’s a complex injury,” she said. “I don’t know how the system will be able to go back and rectify the situation.”

The advocacy group wants assurances that people who suffer head injuries won’t fall through the cracks if their injuries are not promptly diagnosed.

Under ICBC’s rules, individuals have two years to settle their claims. Injuries can be switched from the minor classification to the non-minor category if new symptoms emerge in that time and if the file is still open. However, once an individual settles their claim, there is no opportunity to reopen their case.

“People who have a concussion will likely receive legal advice to not settle until that time period is over and it is clear the extent of the injury,” Mr. Eby said.

The trial lawyers association consulted with former NDP premier and attorney-general Ujjal Dosanjh on the case.

In an interview, Mr. Dosanjh said the government is violating the intent of the ICBC system when it was created in the 1970s.

“What you have now is the NDP government of British Columbia saying, ‘we will continue public auto insurance but we will increase rates and diminish your rights,’” he said.

“Taking away tort isn’t modernization, it’s going to medieval times without the right to go to court.”

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