TORONTO, May 20, 2020 /CNW/ – Auto insurance premiums are determined using a variety of factors, including a person’s driving record, years of driving experience, insurance history, vehicle make and model, type of usage, type of coverage, deductible, and so on. But one of the many factors that also has an impact on what people pay for auto insurance is gender.
It’s generally understood that men pay more than women for car insurance, particularly when they’re young and signing onto their first policy. What isn’t clear is how men fare over time. “To understand the correlation between age, gender and auto insurance premiums, we used our car insurance quoter to collect test data for male and female drivers aged 17-60, from three major Canadian cities,” said Justin Thouin, Co-Founder and CEO of financial rate comparison site LowestRates.ca. Today, the company released a report to illustrate how gender affects auto insurance in Toronto, Montreal and Calgary. While the data looks at three cities, these trends are similar across all of Canada.
The report shows:
In Downtown Toronto:
- Between the ages of 17-19, men pay 27% more annually for car insurance than women
- Between the ages of 20-24, men pay 11% more annually for car insurance than women
- Between the ages of 25-30, men pay 3% more annually for car insurance than women
- Between the ages of 31-40, men pay 5% more annually for car insurance than women
- From the age of 40 onwards, men and women pay equally for car insurance
In Downtown Montreal:
- Between the ages of 17-19, men pay 16% more annually for car insurance than women
- Between the ages of 20-24, men pay 14% more annually for car insurance than women
- Between the ages of 25-30, men pay 19% more annually for car insurance than women
- Between the ages of 31-40, men pay 14% more annually for car insurance than women
- Between the ages of 40-50, men pay 11% more annually for car insurance than women
- Between the ages of 50-60, men pay 11% more annually for car insurance than women
In Downtown Calgary:
- Between the ages of 17-19, men pay 12% more annually for car insurance than women
- Between the ages of 20-24, men pay 2% more annually for car insurance than women
- Between the ages of 25-30, men pay 2% more annually for car insurance than women
- Between the ages of 31-40, men pay 3% more annually for car insurance than women
- Between the ages of 40-50, men pay 5% more annually for car insurance than women
- Between the ages of 50-60, men pay 4% more annually for car insurance than women
Thouin said there are several reasons why men are charged more than women for auto insurance in Canada. “Statistics show that men are far more prone to road accidents, and they are also over three times more likely to drive under the influence of drugs and alcohol than women. We’ve also seen that men are also more likely than women to commit traffic infractions, such as dangerous driving.”
Thouin emphasized that while gender and age do play a role in determining car insurance premiums, these factors don’t supersede other important parameters like a clean driving record, having no insurance gap or claims history. ” Irrespective of gender, anyone who drives safely, follows traffic rules, and has no insurance gap for a significant amount of time can reduce their insurance premiums.”
LowestRates.ca is an online rate comparison site for insurance, mortgages, loans and credit card rates in Canada. The free, independent service connects consumers directly with financial institutions and providers from all over North America to offer Canadians a comprehensive list of rates. LowestRates.ca’s mission is to help Canadians become more financially literate, with the near-term goal of saving them $1 billion in interest and fees.
Leading cyber insurance provider takes aim at the new threats technology brings to Canadian businesses
Coalition, the leading cyber insurance and security company in the US, today announced it is expanding its offering to Canada-based companies, providing proactive cybersecurity products and services and best-in-class cyber and technology error & omissions insurance to help keep businesses safe. Coalition will offer up to CAD $20 million of comprehensive insurance coverage supported by the financial strength of Swiss Re (A.M. Best A+) to companies with up to CAD $1 billion in annual revenue. Through Coalition’s online platform, licensed insurance brokers are able to generate a quote in minutes and also provide their clients with access to Coalition’s proprietary cybersecurity tools and services that are designed to detect, mitigate, and contain threats at no additional cost.
Cyber threats know no boundaries — technology has introduced a range of new threats to businesses irrespective of their location that are not well covered by traditional insurers. Coalition’s global cybersecurity platform provides businesses the risk management support they need most, including help preventing incidents in the first place, and support during and after a crisis. With this expansion, Coalition is proud to advance its mission to solve cyber risk together with Canadian businesses by not only helping to prevent cyber attacks, but helping businesses survive them when they occur.
“Cyber risk is a global problem in need of a global solution,” said Shawn Ram, Head of Insurance at Coalition. “The future of cyber security and insurance are integrated solutions to protect against cyber incidents across all asset types. We’re excited to make this future a reality across the Canadian market.”
Coalition’s approach to cyber insurance is rooted in risk management and mitigation, bringing together cyber security expertise with the safety of insurance to provide the first truly holistic approach to solve cyber risk:
- Risk mitigation: Coalition provides free cybersecurity tools to help businesses manage and mitigate cyber risk, and comprehensive cyber insurance to help them recover after an incident. Coalition’s comprehensive solution helps companies improve their cybersecurity, mitigate incidents when they occur, and help companies recover financially in the aftermath.
- Superior claims handling and incident response: all policyholders receive 24/7/365 access to Coalition’s in-house team of security and incident response experts. Together with hand-picked partner firms (including public relations, legal, and crisis management experts), Coalition stands ready to help organizations quickly recover from a cyber incident.
- Aligned incentives: Coalition is changing the paradigm in cybersecurity by aligning economic incentives with its customers. Unlike a traditional cybersecurity company, Coalition shares its customer’s incentives to prevent and mitigate losses.
“Coalition is more than just an insurance solution,” said Joshua Motta, CEO of Coalition. “Our expansion into Canada will give us greater visibility into cyber losses, and even more resources to combat cybercrime, on a global basis.”
For more information, visit coalitioninc.ca.
Coalition is the leading provider of cyber insurance and security, combining comprehensive insurance and proactive cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by leading global insurers Swiss Re Corporate Solutions, Lloyd’s of London, and Argo Group, Coalition provides companies with up to USD $15 million of cyber and technology insurance coverage in all 50 states and the District of Columbia, as well as CAD $20M of coverage across all 10 provinces in Canada. Coalition’s cyber risk management platform provides automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses remain resilient in the face of cyber attacks. Headquartered in San Francisco, Coalition has presences in New York, Los Angeles, Chicago, Dallas, Washington DC, Miami, Atlanta, Denver, Austin, and now Vancouver and Toronto.
In a move prompted by the COVID-19 crisis, the Ontario government modified the “Unfair or Deceptive Acts or Practices” regulation under the Insurance Act of Ontario in order to reduce barriers to rebating or reduction of automobile insurance premiums by automobile insurers or brokers of automobile insurance policies.
The prohibition against rebating has typically been a consumer protection measure to prevent insurers or brokers from offering an inducement to insureds to purchase policies, with an understanding that the insureds would get some additional benefit, beyond the insurance policy itself. Apart from protecting consumers from being misled, this prohibition also provides consumer protection against discrimination. Similar prohibitions exist in other provinces and territories of Canada.
The regulatory prohibition in section 2 of O. Reg. 77/00, the Unfair or Deceptive Acts or Practices regulation is against, among other things:
- making, or attempting to make, directly or indirectly, an agreement with an insured or applicant for insurance, as to the premium to be paid for an insurance policy that is different than the premium stated in the policy;
- paying, allowing, or giving, directly or indirectly, or offering or agreeing to give, a rebate of all or part of the premium stated in the policy to an insured or applicant for insurance; and
- paying, allowing, or giving, directly or indirectly, or offering or agreeing to give, consideration or other value intended to be in the nature of a rebate of premium to an insured or applicant for insurance.
However, as a result of the spread of COVID-19 and the declaration of an emergency in the province of Ontario under the Emergency Management and Civil Protection Act, automobiles are being used much less frequently, which means that, taken together, the risk assumed by automobile insurers is less than existed at the time of application or underwriting of the applicable policies. Accordingly, some automobile insurers had expressed a willingness to refund to insureds portions of annual premiums, or to reduce monthly charges of insurance premiums, based on reduced vehicle usage during the declared emergency. The regulatory prohibition on rebating had caused some uncertainty for insurers or brokers looking to provide this relief.
As a result of the change, a rebate or reduction of automobile insurance premium is not considered to be an unfair or deceptive act or practice if:
- an emergency is declared under Ontario’s Emergency Management and Civil Protection Act;
- the rebate is issued in response to that declared emergency; and
- the automobile insurer files an undertaking with the Chief Executive Officer of the Financial Services Regulatory Authority (FSRA). FSRA has provided a sample form of undertaking as a starting point for insurers, which effectively commits the insurer to offering premium rebates in a manner consistent with applicable law and FSRA’s regulatory guidance.
Rebates of all or part of an automobile insurance premium are not considered an unfair or deceptive act or practice from the date of declaration of an emergency (in the case of COVID-19, March 17, 2020) to the date that is one year after the date that the declared emergency is terminated.
Ontario is the first Canadian jurisdiction to loosen restrictions on rebating during a declared emergency. We expect some other jurisdictions to similarly permit premium rebate or reduction programs. As we noted previously, the Office of the Superintendent of Financial Institutions – the leading financial and solvency regulator of insurers in Canada – has made it easier for insurers to grant deferrals for payment of insurance premiums.
In addition to this regulatory change, Ontario’s FSRA, as the market conduct and consumer protection regulator in Ontario, issued a regulatory guidance with the following highlights:
- In order for premium rebating as described above (whether a refund, rebate, or reduction of insurance premium) not to constitute an unfair or deceptive act or practice, it must be:
- consumer-focused (providing financial relief where premium charged was based on risk factors that are no longer “just and reasonable” and have materially reduced during a specified period of time related to the applicable emergency);
- transparent and disclosed through clear and public communication by the insurer;
- equitable, by being consistent and not discriminatory among insureds, for example the benefit to consumers varies only based on premium paid;
- fair, by not being a prohibited anti-competitive practice such as tied selling, or an inducement to purchase or renew an insurance policy; and
- time-limited, by being undertaken during or immediately following an emergency declared under Ontario’s Emergency Management and Civil Protection Act, with a goal of providing financial relief to consumers in respect of that emergency.
Where the above criteria are satisfied, FSRA has expressed support for premium repayment programs, given the mismatch between premium levels and associated risk, and the nature of these programs as directed at relieving financial hardship among consumers, rather than permitting insurers to obtain an unfair competitive advantage or unreasonably preferring certain consumers over others.
FSRA has recommended that insurers engage with FSRA early in the design of a premium rebate program to confirm that the intended program is appropriate. In particular, FSRA has requested from insurers the following premium rebate program information prior to implementation:
- how rebates will be calculated;
- how rebates will be provided to customers;
- at a high level, how customers will be impacted by the rebate program;
- how the rebates will comply with FSRA’s principles; and
- the intended form of undertaking to FSRA’s Chief Executive Officer that commits an insurer to developing a rebating program and implementing this program in accordance with the above-noted principles.
FSRA will sign and return to insurers undertakings as evidence for the insurer that the undertaking has been approved, with a new undertaking filed for each premium rebate program established by an insurer. FSRA has noted that insurers who fail to administer their rebating programs in accordance with FSRA guidance and their undertakings will lose the benefit of the waiver of the prohibition against rebating.
- FSRA expects insurers to maintain records of rebates provided to their customers for use in future supervisory activity and reporting.
- Automobile insurance is a heavily-regulated industry, with mandatory rate filings. FSRA provided an approach to principles, processes and practices that it will follow when considering applications from insurers to reduce insurance rates in order to provide rate reductions or other relief to consumers.
Principles of the emergency rate review include:
- rate increases will not be considered at this time; only rate reductions will be considered, including new or increased discounts, lower (or eliminated) surcharges, lower (or eliminated) fees, and lower (or eliminated) charges on instalment payments;
- the proposed changes may not result in a premium rate increase to a customer on renewal, assuming a static book; and
- rate reductions may be implemented on a “use and file” basis, by which they may take effect prior to being reviewed by FSRA, let alone approved, provided that FSRA will work with applicable insurers to resolve issues that FSRA identifies and, if the issues are not resolvable, then FSRA may require the insurer to cease use of the revised rate filings.
- FSRA provided automobile insurers with a summary of some actions that insurers may take without FSRA review or approval, including:
- re-rating policies based on changes in risk profile;
- if appropriate and relevant, modifying or temporarily suspending the effective dates of filings to defer the implementation of rate increases;
- being flexible in exercising contractual and statutory rights, such as those relating to:
- payment plans and premium payment deferral;
- underwriting rules and allowing exceptions for customers experiencing a period of financial difficulty, such as deferring decisions to non-renew customers who might otherwise be lawfully non-renewed; and
- cancelling policies or suspending coverage;
- allocating more resources to insurer call centres and underwriting;
- extending certain coverages where appropriate (e.g. to non-owned vehicles, or to loss of use); and
- waiving certain standard policy exclusions (e.g. use of personal vehicles to deliver food and other products).
It is likely that FSRA will ask insurers to report on actions taken during or as a result of the COVID crisis, along with the impact on customers of these actions.
The McCarthy Tetrault LLP Insurance Law team is available to assist insurers and brokers who have questions about proposed rebating programs, including draft undertakings, or other regulatory or transactional matters.
TORONTO, May 14, 2020 /CNW/ – Duuo, an on-demand insurance brand of The Co-operators, is announcing the launch of its new gig insurance product with partner, HeyBryan. The first of its kind in Canada, Duuo Gig Insurance will be available to HeyBryan Experts starting Thursday, May 14th.
Recognizing a gap in the market, Duuo, alongside insurtech partner, Slice Labs, worked to design a “gig insurance” product that could begin to meet the needs of the almost 1.7 million Canadians participating in the gig economy. After finding that annual insurance policies were often not a fit for gig workers, Duuo and Slice worked to create a solution that provided affordable, on-demand coverage that could be purchased in minutes.
Bryan Baeumler, HGTV star and one of Canada’s most recognizable contractors, is the face of the HeyBryan app which connects home maintenance Experts with homeowners searching for assistance with small tasks around the house. Already taking meticulous steps to ensure all Experts joining the app are properly vetted, the partnership with Duuo enables HeyBryan to provide even more security and comfort to its users.
“We’re thrilled to be the first home maintenance mobile marketplace in Canada to offer daily task insurance options for our gig experts, ” says Lance Montgomery, CEO of HeyBryan. “It offers extra protections for HeyBryan experts as well as peace of mind for customers knowing their expert is fully insured for all work performed at their home.”
When developing their new gig insurance product, Duuo sought out HeyBryan due to the organization’s clear commitment to innovation, a mindset that is shared by both organizations.
“When searching for a partner to launch Duuo Gig Insurance, HeyBryan’s dedication to providing Canadian gig workers with an effective, innovative platform inspired us.” Said Robin Shufelt, Managing Director of Duuo. “We want to work with platforms like HeyBryan to provide them with the tools they need to protect their workers.”
Home maintenance is just the beginning for Duuo Gig Insurance. Duuo is eager to begin partnering with platforms specializing in other sectors of the ever-evolving gig economy. For more information please visit https://duuo.ca/gig-insurance/.
Duuo was created by The Co-operators, a proudly Canadian insurance company founded in 1945 by a small group of farmers and social pioneers who felt traditional insurance didn’t meet their unique needs. Duuo is the 21st century version of this mindset. Launched in late 2018, Duuo is committed to creating new, on-demand solutions to meet the ever-changing needs of Canadians living and working in a highly innovative and fast-paced digital economy.
About HeyBryan Media Inc.
HeyBryan Media (CSE: HEY) (OTCQB: HEYBF) is a peer-to-peer marketplace app offering a friendly and seamless way for customers to connect with trusted and vetted Experts for everyday home-maintenance needs. Founded in 2018, the app is named after Canadian HGTV personality and HeyBryan partner, Bryan Baeumler.
By Jordan Press
THE CANADIAN PRESS
OTTAWA _ The Bank of Canada says there are signs in the country’s financial markets that suggest concern about the ability of companies to weather the COVID-19 economic crisis.
The central bank has spent the last two months making a flurry of policy decisions that has seen it slash its target interest rate and embark on an unprecedented bond-buying program to ease the flow of credit.
The report suggests these measures have helped ease liquidity strains and provide easy access to short-term credit for companies and households.
But it is warning this morning that a cash-flow problem for businesses seeing sharp revenue declines during the crisis could soon develop into a solvency issue.
The Bank of Canada’s review of the country’s financial system says market prices point to a concern that defaults are likely to rise.
The report also raises concerns that household debt levels are likely to rise and become acute for households whose incomes don’t fully recover from the pandemic.
“We entered this global health crisis with a strong economy and resilient financial system. This will support the recovery,” bank governor Stephen Poloz is quoted as saying in the review.
“But we know that debt levels are going to rise, so the right combination of economic policies will be important too.”
Aside from what is now approaching $150 billion in direct federal aid, the central bank over the course of March alone slashed its target interest rate to 0.25 per cent from 1.75 per cent.
It has also snapped up federal bonds to effectively provide low-cost financing to Ottawa to cover a massive spike in spending.
The bank’s balance sheet has more than tripled to $392 billion since early March, as part of an expansion larger and faster than during the financial crisis of 2008 and 2009 when its balance sheet increased by 50 per cent.
But the longer the economic shock from COVID-19 lasts, the more it drives the risks of consumer insolvencies, the central bank says.
The number of vulnerable households that putting more than 40 per cent of their income to cover debt payments “is likely to rise,” the bank says, and fall behind on loan payments even with deferrals to some 700,000 households so far.
The central bank’s review also suggests financial institutions may be much less capable of responding to and containing a cyber security incident while many employees work from home.
“There is evidence of increased phishing and malware attacks designed to take advantage of the growth in remote work and the public appetite for information related to COVID-19,” the report said.
“Cyber criminals are also using public interest in new government support programs to lure users to malicious websites.”
This report by The Canadian Press was first published May 14, 2020.
The excepted article was written by
Sparked by a flight to safety during the COVID-19 crisis, investors are turning to gold as a haven, which has boosted the price of the precious metal and led to a high demand for Canadian gold-equity and gold-bullion exchange-traded funds.
“People definitely use gold as a form of ‘apocalypse insurance,’” says Daniel Straus, head of ETF research and strategy with National Bank Financial Inc.
The demand has sent the price of gold above US$1,700 an ounce, an increase of about 11 per cent so far this year and about 32 per cent over the past year.
Canadian gold ETFs saw a surge of interest in April, pulling in $382-million – the biggest monthly gain in four years, according to National Bank’s monthly ETF-flows report.
The gold-ETF market in Canada is now worth nearly $3-billion, double from a year ago, says Ian Tam, director of investment research with Morningstar Canada. Gold-equity and bullion ETFs have all seen double-digit gains so far this year and in the past 12 months. However, “on the whole, equity ETFs have outperformed [bullion ETFs] year-to-date,” he says.
What’s the best bet for investors who want a bit of gold in their portfolio as a hedge against market turmoil, inflation or for diversification? Gold-equity ETFs, which own shares in gold-producing companies, or gold-bullion ETFs, which own physical gold and aim to replicate the price moves of the precious metal?
Both have seen sharp gains. In the past year, stock prices of the largest gold producers, Barrick Gold Corp. and Newmont Mining Corp., are up more than 100 per cent, adds James Gauthier, head of product research and oversight with Industrial Alliance Securities Inc.
What an investor chooses to do “will be a function of your opinion of the biggest gold producers in the world versus a more diversified approach,” he says. “If gold continues to go up, both of these will continue to do well.”
Many gold producers have been able to reduce their cost per ounce significantly, so when the price of gold rises, they benefit more. “That’s why you see these gold companies generally performing better than the price of bullion when the price of bullion is moving higher,” Mr. Gauthier says.
Looking at gold-equity ETFs, Mr. Gauthier points to the iShares S&P/TSX Global Gold ETF (XGD-T), which is a top performer with a year-to-date return of about 32 per cent and a whopping one-year return of 94 per cent. (All price returns are from Morningstar as of May 12.) XGD has $1.3-billion of assets under management (AUM) and a management expense ratio (MER) of 0.61 per cent (all AUM and MER data from Morningstar). Investors poured $117.8-million into the fund in April. The market-weighted fund has nearly 50 per cent of its assets in the biggest gold producers, including Barrick, Newmont and Franco-Nevada Corp.
The BMO Equal Weight Global Gold ETF (ZGD-T) gives global gold stocks an equal weighting instead of a market weight. Its year-to-date total return is about 17 per cent, and its one-year return is 82 per cent. Its AUM is about $202-million and its MER is 0.62 per cent. “There’s much less concentration risk,” Mr. Gauthier says.
The iShares Gold Bullion ETF (CGL-T) is the largest Canadian bullion ETF with about $675-million in AUM. In April, investors put $102-million into the fund, which has an MER of 0.55 per cent, a year-to-date return of 12 per cent and a one-year return of 31 per cent. It has 8.6 tonnes of gold in trust, according to the iShares website.
“These gold ETFs actually do own the physical gold; it’s in vaults,” Mr. Gauthier says. But “generally these things are not convertible into physical gold under normal circumstances.”
Another option is Purpose Investment’s Gold Bullion ETF (KILO-T), which has about $66-million in AUM, a year-to-date return of 11 per cent and a one-year return of 29 per cent. Its fees are a bit lower, with an MER of 0.26 per cent.
“For long-term, buy-and-hold investors, if you want just a little bit of gold in your portfolio and you want to minimize fees, then KILO is a good one to use,” Mr. Straus of National Bank says.
He also recommends investors look closely at their equity holdings before buying a gold-equity ETF as they may already hold those top stocks and would diversify their portfolio more effectively by holding a bullion-based ETF.
“If you’re using gold in your portfolio as a diversifier, holding the bullion makes the most sense,” Mr. Straus says.
David Kletz, vice-president, portfolio manager and ETF analyst with Forstrong Global Asset Management, says his firm prefers the SPDR Gold Trust (GLD-A), one of the largest U.S. ETFs, which tracks the spot price of gold and is backed by gold bars held in vaults in London. It has a year-to-date return of about 12 per cent, a one-year return of 32 per cent, US$59-billion in AUM and an MER of 0.4 per cent.
Mr. Kletz points out another U.S. bullion ETF is the iShares Gold Trust (IAU-A), which aims to reflect the price movements of gold and has 428 tonnes of gold in trust. It has US$23.5-billion of AUM and an MER of 0.25 per cent. The ETF is up 12 per cent year-to-date and about 32 per cent over the past year.
On the equity side, Mr. Kletz’s firm targets the VanEck Vectors Gold Miners ETF (GDX-A), a U.S.-based fund that invests in an array of large global gold miners matching the NYSE Arca Gold Miners Index. It has US$14-billion in AUM, an MER of 0.53 per cent and is up about 16 per cent so far this year and 68 per cent over the past year.
“In this environment and based on what’s happened in recent years, we do tend to prefer the gold mining companies,” Mr. Kletz says. His firm turns to U.S. ETFs because of their large size, low fees, strong liquidity and ease of trading.
If you’re buying gold as “apocalypse insurance,” there are a few investments you can redeem for physical gold ounces, Mr. Straus says. The U.S.-based VanEck Merk Gold ETF (OUNZ-A) tracks the price of spot gold and lets investors redeem their shares for gold in increments of one troy ounce. Its AUM is US$256-million with an MER of 0.4 per cent and a return of 12 per cent year-to-date and 32 per cent over the past year.
The Globe and Mail