Insurance Companies Use Emerging Technologies & Business Models to Shake Up Competition

Led by insurtech disruptors, novel business models are causing disintermediation in the insurance industry and altering power dynamics. The rise of technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and smart devices is placing the spotlight on flexible services based on usage-based insurance, on-demand insurance and Prevention-as-a-Service models, which are redefining the role of insurance in people’s lives. These models will especially appeal to Millennials and Generation Z, the newest buying groups.

Lines of business such as liabilityproperty, and casualty will especially gain from models such as Prevention-as-a-Service,” said Lauren Martin-Taylor, Visionary Innovation Principal Consultant at Frost & Sullivan. “Even though insurtechs and start-ups are leading in addressing shifts in social, mobility, and technology trends by pioneering innovative business models, traditional insurers often back them or play an integral role.”

Frost & Sullivan’s recent analysis, The Future of Insurance, analyzes emerging insurable markets and business models, evolution in operations and the value chain, as well as disruptors and opportunities in various lines of insurance. It also covers technologies such as AI, augmented reality/virtual reality (AR/VR), blockchainwearablesimplantsself-healing materials, and automation. An overview of the trends and challenges in each market is presented along with industry best practices, notable activity, and case studies.

Forward-thinking insurers will look to realign their business strategies to tap the growth opportunities presented by:

  • Medical advances, wearables, and growth of the elderly population.
  • Rise in urban population density, particularly in Asia and Africa.
  • The largely untapped low-income demographic in developed countries, which holds huge potential for microinsurance and automation advances.
  • Biological augmentation technologies, which can transform the markets for life insurance and reinsurers.
  • High levels of digitization, increasing data breaches, and cyber threats.

“The auto insurance industry will be one of the most affected by the rising adoption of advanced technologies, as connected and autonomous vehicles will generate real-time data and improve underwriting accuracy,” noted Taylor. “In due course, the focus will shift from insuring drivers to insuring the vehicle, systems, and technology.”

The Future of Insurance is part of Frost & Sullivan’s global Visionary Innovation (Mega Trends) Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success

Minimum Capital Test for Federally Regulated Property and Casualty Insurance Companies

Source: OSFI

Subsection 515(1) of the Insurance Companies Act (ICA) requires Federally Regulated Property and Casualty Insurance Companies (property and casualty companies) to maintain adequate capital. Subsection 608(1) of the ICA requires foreign property and casualty companies operating in Canada on a branch basis (foreign property and casualty companies) to maintain an adequate margin of assets in Canada over liabilities in Canada. The Minimum Capital Test (MCT) Guideline is not made pursuant to subsections 515(2) and 608(3) of the Act. However, the minimum and supervisory target capital standards set out in this guideline provide the framework within which the Superintendent assesses whether a property and casualty company maintains adequate capital pursuant to subsection 515(1) and whether a foreign property and casualty company maintains an adequate margin pursuant to subsection 608(1). Notwithstanding that a property and casualty company may meet these standards, the Superintendent may direct the property and casualty company to increase its capital under subsection 515(3) or the foreign property and casualty company to increase the margin of assets in Canada over liabilities in Canada under subsection 608(4).

This guideline outlines the capital framework, using a risk-based formula, for target and minimum capital/margin required, and defines the capital/assets that are available to meet the minimum standard. The MCT determines the minimum capital/margin required and not the level of capital/margin required at which property and casualty companies must operate.

Foreign property and casualty companies are reminded that the MCT is only one element in the determination of the required assets that must be maintained in Canada by foreign property and casualty companies. Foreign property and casualty companies must vest assets in accordance with the Adequacy of Assets in Canada test as prescribed in the Assets (Foreign Companies) Regulations.

Severe hailstorm in Moose Jaw causes more than $71 million in insured damage

Insurance Bureau of Canada (IBC) reports a severe storm that swept through Moose Jaw, Saskatchewan during the third week of July has resulted in more than $71 million in insured damage according to Catastrophe Indices and Quantification Inc. (CatIQ).

On the evening of July 22, a cold front caused severe thunderstorms across the southern parts of Saskatchewan. A particularly severe storm formed over the north end of Moose Jaw, SK and pelted the city with large hail.

“The Prairies experience more hail each year than almost any other part of Canada,” said Bill Adams, Vice-President, Western and Pacific, IBC. “It is important that Canadians understand their insurance policies and what’s covered. It’s also essential to have an emergency preparedness plan and know what to do before, during and after bad weather strikes.”

Most of the more-than-5,000 insurance claims filed from this storm resulted from hail damage. Across Moose Jaw reports of damage to vehicles, windows, houses, and other pieces of property were widespread. However, the northern end of the city was the hardest hit.

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 120,000 Canadians, pays $8.2 billion in taxes and has a total premium base of $49 billion.

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

About CatIQ
Catastrophe Indices and Quantification Inc. (CatIQ) delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss indices and other related information to better serve the needs of the insurance and reinsurance industries, public sector and other stakeholders. To learn more, visit www.catiq.com.

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

SOURCE Insurance Bureau of Canada

Co-operators General Insurance Company estimates financial cost of Fort McMurray wildfire

Source: Co-operators News Release

To date, more than 4,300 claims have been reported to Co-operators General Insurance Company (Co-operators General) by clients affected by the wildfire in the Fort McMurray area. The Co-operators Emergency Response Team has been supporting clients, including on the ground in emergency evacuation centres and temporary office locations in the area.

“This has been a devastating time for the community and residents are looking forward to returning home and starting to rebuild their lives and their community,” said Kathy Bardswick, president and CEO of The Co-operators. “While the return home will mark the start of a new phase for the community, it will also be a challenging time for residents and businesses – and we will be there to help our clients through it.”

To date, 4,376 claims have been reported to Co-operators General and its subsidiaries, including property, auto, commercial and farm insurance claims. While access to the area remains restricted, the company’s preliminary estimate indicates that the after-tax cost of the wildfires to Co-operators General Insurance Company consolidated, net of reinsurance and inclusive of reinstatement premiums, will likely amount to between $70 million to $90 million.

2016 P&C Insurance Outlook: Top Trends

Read more

Swiss Re Corporate Solutions names Yvonne Steiner as Head of Property, Canada

TORONTO, On Dec. 16, 2015 /PRNewswire/ — Swiss Re Corporate Solutions names Yvonne Steiner as Head of Property, Canada. Ms. Steiner will lead property underwriting operations for the region, with teams based in Toronto and Vancouver. She succeeds Claudio Totino who is retiring in 2016.

Ms. Steiner will be based in Toronto. With over 15 years of industry experience, she has expertise in the energy, power, mining, transportation, construction and food industries.

Jamie Miller, Head North America Property for Swiss Re Corporate Solutions, comments: “With her strong technical talent, risk management expertise, and knowledge of the Canadian insurance market, Yvonne will help us expand our single carrier and general property capabilities for clients in the region. She has the skills and commitment to build on the strong foundation that Claudio and the team have created.”

Ms. Steiner studied International Relations & Economic Development at the University of Toronto and the University of British Columbia. She earned the Canadian Risk Management designation from the University of Toronto and the Chartered Insurance Professional – Marine Specialist designation from the Insurance Institute of Canada. She joined Swiss Re in Toronto in 2007 and has held various underwriting and global product specialist roles, most recently as Underwriter Energy Expert in Zurich on the Products & Global Markets team of Swiss Re Corporate Solutions.

About Swiss Re Corporate Solutions

Swiss Re Corporate Solutions offers innovative, high-quality insurance capacity to mid-sized and large multinational corporations across the globe. Our offerings range from standard risk transfer covers and multi-line programmes, to highly customised solutions tailored to the needs of our clients. Swiss Re Corporate Solutions serves customers from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group. For more information about Swiss Re Corporate Solutions, please visitwww.swissre.com/corporatesolutions or follow us on Twitter @SwissRe_CS.

SOURCE Swiss Re Corporate Solutions

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from ILSTV

You have Successfully Subscribed!

Pin It on Pinterest