MONTREAL _ Dialogue Technologies Inc. says it has formed a partnership with Sun Life Financial Inc. that will see the insurance provider become a minority owner of the telemedicine business.
Montreal-based Dialogue says the commercial partnership involves a $32.7-million equity investment and gives Sun Life rights to acquire additional equity later.
The announcement is part of a $43-million round of financing from Dialogue’s existing backers Caisse de depot et placement du Quebec, Portag3 Ventures, White Star Capital, HV Holtzbrinck Ventures, First Ascent Ventures and Walter Ventures.
Dialogue provides virtual access to medical care in Canada and connects users directly to health-care professionals across the globe at any time of day.
The company says the COVID-19 pandemic and physical distancing measures have triggered a sharp increase in usage of its virtual care services.
The deal comes after Sun Life rolled out access in April to Lumino Health Virtual Care, a platform powered by Dialogue that allows users to connect with medical professionals digitally.
The excerpted article was written by Manori Ravindran | Variety
Canada’s production community is working towards a bespoke insurance solution as the country looks to jumpstart production after it ground to a halt in March amid the coronavirus outbreak.
Variety can reveal that producers’ trade body, the Canadian Media Producers Association (CMPA), is developing a proposal for a “market-based solution” that asks the federal government to serve as a backstop for coronavirus insurance claims.
An update from the CMPA sent to producers on Monday and seen by Variety details a plan in which producers would pay premiums to access COVID-19 coverage, which would then go into “a dedicated pot to pay for potential claims.”
“The government would only contribute financially if the funds generated [through] the sale of the policies was insufficient to cover the claims made,” reads the memo.
In Canada, like most other countries, insurers are refusing COVID-19 coverage for the production sector. “Left unaddressed, this would mean the financial consequences associated with another industry-wide shutdown, or an on-set COVID-19 incident, would fall primarily to the producer,” said the CMPA, warning that the repercussions of these scenarios would be “potentially devastating” to the sector and threaten its prospects of a smooth restart.
The org has now raised the insurance issue with the government and is to submit a “detailed proposal” in the coming days, outlining what it calls an “industry-wide solution.”
A CMPA spokesperson told Variety: “Without the availability of insurance policies to cover future COVID-19 risks, most production in Canada will not resume. A government-backstopped insurance program will provide confidence to the marketplace, encouraging insurers to offer COVID-19 coverage, allowing producers to purchase policies, and ultimately allowing Canada’s production sector to re-open, once it is safe to do so.”
In recent weeks, the CMPA has hinted at plans to develop a “made-in-Canada solution” to cover productions post-shutdown. The group has been examining international insurance solutions, such as France’s indemnity fund — a $54 million fund that will cover up to 20% of a project’s budget and work on a case-by-case basis — as well as programs being proposed in the U.K. and other territories.
The CMPA said previously that it was also looking at tax credits, shared risk pools and government liability protections.
As revealed by Variety last week, the U.K. recently submitted a proposal to the government for a guarantee around coverage of suspension or abandonment costs relating to COVID-19. This could manifest in the form a government-backed fund that may amount to hundreds of millions of pounds.
The CMPA estimated in April that Canada’s production shutdown put around 172,000 jobs at risk, and could ultimately cost the Canadian film and TV sector — whose service industry supports myriad Hollywood shoots in provinces such as British Columbia and Ontario — around CAD$2.5 billion ($1.8 billion) in both domestic and foreign production dollars if it continues until the end of June.
There is, however, finally some light at the end of the tunnel, with the first signs of production resuming post-shutdown. Manitoba became the first province to allow its production sector to restart as of Monday, with local soundstages opening back up for business.
The first wave of renewed production in Canada is expected to focus on domestic projects due to the limitations posed by mandatory quarantine periods for inbound travel, making it tricky for any international projects, particularly U.S. studios, looking to shoot up north.
Source: Read more articles like this at Variety
The excerpted article was written by Jordan Pinto
The Canadian Media Producers Association (CMPA) is in the process of developing a proposal that, if accepted, would see the federal government serve as a backstop for COVID-19 insurance claims.
Under the proposed solution – a detailed version of which will be submitted to the federal government in the coming days – producers would pay premiums for COVID-19 insurance coverage, which would go toward a funding pot designated for potential claims. The government would only be called upon to contribute financially if the funds generated through the sale of the COVID-19 policies was insufficient to cover the claims made, said the CMPA.
Since the production shutdown in mid-March, insurance companies have changed their coverage options so that claims related to COVID-19 (and communicable diseases more generally) are not covered. Across North America, the insurance industry as a whole is counting billions in losses and pending claims stemming from the onset of the COVID-19 pandemic.
“The CMPA is acutely aware that insurance companies are not offering COVID-19 coverage for the production sector at this time. Left unaddressed, this would mean the financial consequences associated with another industry-wide shutdown, or an on-set COVID-19 incident, would fall primarily to the producer. This would be potentially devastating to our sector and a significant barrier to the start up or resumption of production for many of our members,” read a statement from the CMPA. The association said it will also be reaching out to a “wide range of industry stakeholders to confirm broad support for this initiative.”
What remains unclear is how much producers would pay for the proposed premiums for COVID-19 coverage, and how much money would be in the pot. It is also likely that the government would need projections on how much a future production shutdown would cost before it committed to backstopping insurance claims related to COVID-19. (It should be noted that outside of exclusions for COVID-19 and/or communicable diseases, Canadian film and TV projects are still able to obtain insurance for production.)
While the implementation of on-set safety protocols and guidelines has dominated much of the discussion for the past two and a half months, the issue of how to resume production in the absence of insurance for COVID-19 has largely been viewed as the film and TV industry’s biggest obstacle, especially for higher-budgeted series, such as scripted dramas, that typically require larger casts and crews.
It is not simply a production issue, as bank loans, interim financing and financing contracts are typically contingent on the presence of insurance, making it all but impossible for independent Canadian projects TV projects to resume until a resolution has been found. It is supposed that unscripted projects and documentaries (which typically have smaller budgets and can be shot with smaller crews) will be able to navigate insurance issues more easily, however a clear route back to production has not been outlined for the unscripted or doc sectors in Canada either.
Other jurisdictions have proposed similar measures that would see the government acting as a backstop for COVID-19 insurance claims. Last week, the UK industry put forth a proposal that would see the government help cover the costs of shutdowns related to COVID-19. Other proposals have been put forth in Australia, France and elsewhere to help jumpstart the local production sectors, which are grappling with the same issues as Canada. In the state of New York, a proposal was floated last month that would also see the government backstopping insurance claims.
The unveiling of CMPA’s insurance proposal comes as Canadian provinces begin to release the guidelines for on-set processes in the age of COVID-19. Manitoba was the first province to release full details of its protocols, while Quebec also released its own guidelines yesterday. Other provinces, including Ontario, are expected to follow suit in the next week or two.
Previously the CMPA said it expects the production shutdown will mean at least a $2.5-billion shortfall in production spending ($773-million for Canadian content, $1.76 billion for the service economy) if film sets remain closed until June 31.
The battle over claims heats up between small businesses and insurance providers
The excerpted article was written by CBC Radio
COVID-19 is not the first crisis to hit Krystal Churcher’s private preschool, a business she managed to grow substantially after surviving the 2016 wildfire in Fort McMurray, Alta.
What’s different this time, compared to several years ago, is that her claim for business interruption insurance got nowhere.
Churcher’s insurance company told her the pandemic is not a “named peril,” meaning it doesn’t fall into the same category as threats typically covered by insurance, such as windstorm, fire or even a plane falling from the sky.
“What are we paying for with these insurance premiums?” said Churcher, who owns the Early Start Learning Centre in Fort McMurray. “It just makes no sense to me.”
Across the country — and indeed around the world — small business owners are grappling with denied claims which are collectively worth billions of dollars. And they’re fighting back in the courts, with lawsuits popping up in Canada, the US, Britain and other countries.
I’m sitting here with no coverage and not really any explanation as to why.– Krystal Churcher, owner of Early Start Learning Centre
In Churcher’s case, she was paying extra to have viruses included in her coverage, but since none of her seven staff members got sick from the coronavirus, that part of her policy was not triggered.
“After the fire, I increased my insurance policies as much as they would allow,” she said.
“My premiums have gone up over 300 per cent since the fire, and I’m sitting here with no coverage and not really any explanation as to why.”
Pandemic not part of insurance calculation
Every insurance policy is unique, and while here is no such thing as a one-size-fits-all contract, the principle of insurance is the same.
“The premiums of many are paying for the losses of the few,” according to the Insurance Bureau of Canada.
Tragic as the 2016 wildfires were, making up the priciest insurance claims in Canadian history, the disaster only affected people in Northern Alberta.
Insurance customers in other parts of the country were fine, so their premiums were used to help pay for losses in Fort McMurray.
How can an insurance company afford and price to pay for something that is not temporal in time and is not in a geographic scope?– Laurie LaPalme, partner in the Insurance & Reinsurance Group at Cassels Brock & Blackwell.
What’s different about a pandemic like COVID-19 is that it absolutely affects everyone from coast to coast to coast, according to Laurie LaPalme, partner at law firm Cassels, Brock and Blackwell in Toronto, whose clients include insurance companies.
That kind of universal scenario was never baked into the insurance formula.
“Always go back to the contract to see what it says,” said LaPalme.
“Most contracts exclude viruses of that nature so they are not a peril that is covered. and it’s not meant to be, because pandemics by their nature are not temporal and they are not geographically scoped. So how can an insurance company afford and price to pay for something that is not temporal in time and is not in a geographic scope?”
Battle over the fine print
Enough people disagree over the issue that firm Merchant Law has started collecting names for its class-action lawsuit against more than a dozen insurers in Canada.
A legal battle is also heating up south of the border, where politicians in several states are proposing legislation to force insurance companies to pay out business interruption claims.
American lawyer Chip Merlin, author of the book “Pay Up! Preventing a Disaster with Your Own Insurance Company,” argues insurance contracts are written in a way that is full of contradictions which aren’t always fair to small businesses.
“if you were a small business owner, as you read down they have a provision for business interruption, loss of business income, and then a specific part in bold letter that says, ‘we cover you for orders of a loss of income caused by civil authority,'” explained Merlin.
According to Merlin, many insurance companies are saying businesses must be shut down due to a direct infection by the COVID-19 virus before they will pay out on a claim.
“Most people read that and go, ‘Hey look I got coverage because a civil authority shut me down.’ But it’s in the fine print that insurance companies are coming back and making the argument saying, ‘Wait a minute! You know in order to collect for this you have to prove that a business closed by you or some property closed by you actually had the coronavirus before you’re able to collect on that.'”
Court battles, according to Merlin, will come down to the one thing that he says “nobody ever reads or thinks about in advance.”
In other words, the fine print.
“Even if you were to try to read it, would you really understand or do you have to be somebody like me that does this for a living?” said Merlin.
The lawyer says we should get ready for a whole lot of arguments over what qualifies as a “named peril,” whether COVID-19 causes “physical damage,” and what constitutes “loss” as defined in the contract language of an insurance policy.
Potential losses could far outstrip collected premiums
The stakes are high for both insurers and the insured in this situation. For Krystal Churcher and her Alberta business, it’s the difference between being able to pay her bills, or go into heavy debt.
Her insurance company has pegged her loss at $55,000 a month. As she’s unable to collect money through an insurance claim, she’s had to apply for a federal loan instead.
“It’s just a huge bill that’s sitting there when you have insurance policies that are supposed to help you during these kind of things,” said Churcher
But for the insurance company, the financial consequences are stark too. Multiply Churcher’s scenario across the country, and the potential liabilities are so potentially big they could cripple the entire insurance industry.
Canadian insurers have yet to put up an estimate, but the American Property Casualty Insurance Association published an alarming report in April, pegging small business losses in the United States ranging from $255 billion to $431 billion per month.
That is substantially higher than the total pool of premiums available for commercial property risks, which that report put at only $6 billion per month.