It is important for adjusters to determine whether or not a claimant has been scamming Revenue Canada when considering the claimant’s entitlement to income replacement benefits (IRBs), according to Donna Ford, an investigator with Northwood & Associates. “If a person is trying to cheat an insurer with respect to an IRB claim, you can almost be sure, based on my experience, that they are also trying to cheat [Revenue Canada],” Ford told delegates at the Annual Toronto Fraud Forum on Sept. 29. Section 4(5) of the Statutory Accident Benefits Schedule (SABS) has been added in the new regulations, which became effective Sept. 1, 2010. This section codifies the serious consequences of a claimant’s failure to pay income tax, Ford said. If a person fails to pay income tax, according to section 4(5), “the person’s income before an accident shall be determined for the purposes of this part without reference to any income the person has failed to report contrary to that act or legislation.” If adjusters have any questions about the legitimacy of an IRB claim, they should ask for the income tax returns with enclosures and notices of assessment. “An honest claimant won’t have any problem giving you that information,” Ford said.
Blog
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Severe weather and hail dampen MPI’s 2010 Q2 results
Manitoba Public Insurance (MPI) is reporting a net loss of $35.5 million for 2010 Q2.”This net loss reflects an increase in severe weather, including hail-related claims,” said Don Palmer, MPI’s vice president of finance and chief financial officer.MPI reported a 2010 Q1 net income of $102.9 million, but said this would not likely be sustained throughout the year. In fact, MPI now expects its net income to be reduced down to $67 million as of 2010 Q2, and shrink further down to $42 million by year-end.”Traditionally, the first two quarters of the corporation’s fiscal year generate a profit, which is then offset by an increase in claims during the winter months,” said Palmer, explaining the reasoning for the decrease in net income by year end.Even at $42 million by year-end, the 2010 profit would be up from the initial forecast of $5.6 million, MPI reported. Net income from operations increased from the previous year by $47.3 million due to improved underwriting results of $30.8 million and a $16.5 million rise in investment income, MPI reported.Manitoba’s public insurer has also proposed a $92-million rebate to ratepayers. If approved, the rebate would put MPI’s rate stabilization reserve somewhat above the Public Utility Board’s target of $154 million at year-end. Additionally, MPI has requested an overall basic insurance rate decrease of 4%.
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Compu-Quote Announces Release of Quoting for Individually Rated Commercial Automobiles
Windsor, Ontario, September 21, 2010 – Compu-Quote is very proud to announce that beginning in October in Ontario, a quoting module for Individually Rated Commercial Automobile (IRCA) will be deployed via AutoRater™ to brokers with rates for a number of prominent insurers such as, Economical Mutual Insurance, Intact Insurance, Aviva Canada and Axa Insurance.
“Traditionally, full underwriting and rating software products for commercial lines have not been widely available,” said James Nickelo – Senior Vice-President for Compu-Quote. “This is an extremely exciting and active market so we needed to provide the brokers with effective tools. To that end, we worked with some of the most prominent insurers in Canada to develop a tool that is efficient and fits the brokers’ workflow.”
About the IRCA Quoting Application
The IRCA Quoting Application is an easy to use web-based module embedded in AutoRater that is designed to provide full underwriting and simultaneous, comparative quoting for multiple IRCA rate plans in a given province.
The IRCA Quoting Application will work in conjunction with the current CQ Commercial Quick Quote Module but is enhanced to the permit the gathering of additional IRCA specific underwriting and rating data. The IRCA Quoting Application will provide for quoting for additional classes, allow for expanded policy coverages and limits and offer expanded endorsements and policy forms.
Furthermore, the IRCA Quoting Application will provide additional functionality for the broker such as application and form printing (CSIO Application and the Commercial Vehicle Supplement) and the bi-directional transfer of data (CQ Integration) between the IRCA Quoting Application and the broker’s broker management system.
Brokers, insurers and interested industry personnel are invited to visit our web site to learn more about our series of related training seminars scheduled for October and November.
About Compu-Quote
Since 1983, Compu-Quote has been Canada’s leader in the underwriting and rating software & related services. A pioneer in the industry, that continues to deliver innovative solutions for insurance companies, brokers, actuaries and providers of insurance products for consumers through the web. Compu-Quote integrates with third party data providers, as well as Canada’s leading broker management systems and company mainframe technology.
For additional information please contact your Compu-Quote Representative
Or
Philippe Joassin &n bsp;
Vice-President, Sales & Business Development
Toll Free: (800 265-0808 (x4424) Email: pjoassin@compu-quote.com
James Nickelo
Senior Vice President
Toll Free: (800) 265-0808 (x4301)
Email: jnickelo@compu-quote.com
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Lower discount rate in Ontario means adjourning trials into 2011 could cost insurers “several hundred thousand dollars”: lawyer
The reduction of Ontario’s discount rate for catastrophic injury trials could significantly increase the future care and future loss of income costs for insurers, warns Stephen R. Moore, a lawyer with Blaney McMurtry.In the bulletin, Don’t Adjourn This Fall’s Large Trials: It Could Cost You Several Hundred Thousand Dollars, Moore explains that the discount rate – described as possibly the most important calculation of the cost of future losses – is a calculation of the difference between inflation and investment return. The lower the discount rate, the higher the award. For trials commencing in 2010, the discount rates are 1.25% for the first 15 years and 2.5% after 15 years (the 2.5% rate never changes). Ontario recently announced the discount rate for the first 15 years will drop to 0.5% for trials commencing in 2011.In a hypothetical case, based on an $8-million award for future care of a catastrophically injured plaintiff with a 25-year life expectancy, the new discounted rate might increase the $8-million award by up to 8% (or $640,000). The impact on future loss of income would be smaller, because the plaintiff’s working life expectancy is shorter than life expectancy.”Given the impact of the new discount rate, it would be prudent to consider attempting to settle any case with significant future loss of income or future care claims [that] are scheduled to be tried next year,” he wrote.”If that is not going to be possible, then you should make sure that you factor this change to the discount rate into your reserves.”Moore added insurers should resist the temptation to adjourn a trial to 2011, unless the plaintiff agrees to use the 2010 discount rates or rates intermediate to the 2010 and 2011 rates.
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75% of Canadians drive distracted: Allstate poll
Seventy-five per cent of Canadians drive distracted, despite the fact that nearly all Canadians view distracted driving negatively, according to an Allstate Canada poll conducted by Leger Marketing. The most common forms of distracted driving include talking on a mobile phone or texting while driving, changing a CD, eating or drinking, using an electronic device like GPS, applying makeup or being pre-occupied with other passengers, says an Allstate release.One-quarter of Canadians report they, or someone they know, have been in an accident caused by a distracted driver. Thirty-seven per cent of drivers between the ages of 18 and 24 say they have been, or know someone who has been, in an accident caused by a distracted driver. Eighty-eight per cent of Canadians perceive texting while driving negatively. But only 19% have a negative view of adjusting the radio or portable music player, the study found. “Regardless of the distraction, taking your eyes off the road for five seconds while driving at 90 km-h is like driving the length of a football field completely blind,” the release said.
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Insurers urged to get written conflict-of-interest statements from law firms and treatment/assessment facilities
Insurers wishing to expose potential insurance fraud should be getting written conflict-of-interest statements from legal, treatment and assessment facilities, a fraud investigator suggests.Donna Ford, an insurance fraud investigator with Northwood & Associates, addressed the topic of insurance fruad at the Annual Toronto Fraud Forum on Sept. 29. The Association of Certified Fraud Examiners and the Canadian Association of Special Investigation Units jointly sponsored the meeting.In an email exchange following the forum, Ford observed that under the previous SABS, there was a conflict of interest disclosure section in the Treatment Plans (OCF 18 and 23). Although there is no such disclosure section on the forms under the new SABS, she wrote, there is still a requirement to disclose any conflict of interest to the insurer.”If the insurer is noticing patterns of claimants going to the same combination of legal representatives, treatment facilities or assessment facilities, I suggest the insurer write to all three and ask if there is any conflict of interest,” Ford writes. Those letters should be produced at arbitration and trial, especially if there is no response, Ford said. Insurers should also provide this information to the Investigation Services Division (ISD) of the Insurance Bureau of Canada (IBC) to investigate any undisclosed conflicts.”We all know that conflicts lead to over-treatment and over-billing.”
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RSA Canada to buy GCAN Insurance Company for $420 million
RSA Canada has entered into an agreement to purchase GCAN Insurance Company and its parent company, Glenstone Capital Incorporated, from the Ontario Teachers’ Pension Plan Board for approximately $420 million. “This is actually the second-largest insurance company acquisition in the past 10 years in the Canadian P&C market, and it’s important because it’s now moved RSA up to the fourth-largest general insurer in Canada,” RSA Canada president and CEO Rowan Saunders said in an interview.Prior to the deal, RSA Canada stood fifth in terms of 2009 premiums written. The consolidation is expected to increase RSA Canada’s premium base from $1.9 billion (based on 2009 figures) up to $2.2 billion. Completion of the transaction is subject to regulatory approval. “GCAN is really a scarce opportunity in the Canadian marketplace,” Saunders said. “It’s a commercial insurance company that focuses on mid-market risks, large commercial corporate risks and specialty business. And that’s an area in which RSA has been looking to both bring in business and extend our appetite.”This really accelerates our commercial insurance vision and strategy.”Saunders further noted the deal will strengthen RSA’s commercial capabilities by adding further technical expertise, geographic diversification and product breadth. “The transaction will also drive significant additional reinsurance, capital and other synergies,” he said. “I am very excited about the opportunities ahead.” GCAN had a combined operating ratio (COR) of 81% in 2009 and an average COR of 77% over the past five years. GCAN wrote annual premiums of approximately $255 million in 2009. The company employs 148 people in four locations across Canada, and partners with a network of 130 brokers. “Today’s announcement validates the excellence in product and service delivery that is the goal of all GCAN employees,” noted GCAN president Daniel Courtemanche. “The combined skill sets and distribution reach of the group will provide a formidable presence in the Canadian P&C marketplace.”
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Exclusive Telecommunication Disaster Recovery service launched to Public Sector: Emergency Measures legislation compliance made easy!
Waterloo, ON
Jardine Lloyd Thompson Canada the nation’s premier provider of Insurance and Risk Management services to the Canadian Public Sector has entered into an exclusive arrangement with MMI of Waterloo, Ontario, to provide a private labeled, customized version of CatastroPhone™ Telecommunication Disaster Recovery Service to the Canadian public entity market. The private labeled service is DisasterPhone™
“DisasterPhone™ allows subscribing members to immediately restore incoming call handling and distribution to key employees wherever they are following an emergency or disaster – even if the business premises has been destroyed or rendered inaccessible by any cause” says Greg Dalton, President & CEO of MMI/CatastroPhone™.
“DisasterPhone™ allows the subscriber to determine appropriate call routing to key personnel and Emergency Measures designates before disaster strikes,” advises Paul Dorman Managing Director of JLT. “In addition to the basic need for preparedness and business continuity planning, public entities are bound by legislation at both the federal and provincial levels to ensure that adequate Emergency Measures protocols are in place. DisasterPhone™ delivers a key component to compliance with this legislation” he offers.
Through the DisasterPhone™’ web portal, subscribers can tailor call routing to alternative facilities, employee cell phones and hand held devices, or to third party emergency measures service providers. DisasterPhone™ retains the configuration input in its data vault for use at the time of activation of emergency service. Once initialized, calls to employees’ normal extension numbers are automatically distributed remotely, in accordance with the subscribers predetermined directives.
“While the original CatastroPhone™ telecommunication disaster recovery model has been designed for the Canadian SME market through the insurance broker channel, JLT immediately recognized the relevance of the service to address pressing concerns of the public sector:” Dalton adds.
“Because JLT has demonstrated an unparalleled understanding of the needs of the public sector – particularly with respect to specific Emergency Measures legislation, we agreed that a private brand exclusive representation for the public sector was ultimately in the best interest of the public entities subscribing to the service” says Dalton. “JLT will be the authority in Canada for this essential service for public organizations.”
“This is the only solution of its kind in North America that we’ve identified – it’s exactly what we were looking for” says JLT Managing Director, Terry Patterson, “and our international offices will be watching with interest as we roll the service out across Canada. We expect adoption of the service to have a viral effect.
Offered exclusively under the brand DisasterPhone™ the service will be initially extended to over 300 provincial, municipal and affiliated public entities already enjoying the benefit of JLT’s insurance and risk management services. Municipal clients not currently sourcing their insurance solutions from JLT will have access to the service commencing January 1, 2011, as will private sector enterprises wishing to enroll through any of JLT’s seven Canadian offices.
About JLT
JLT is a subsidiary of the Jardine Lloyd Thompson Group. Jardine Lloyd Thompson Canada is a leading risk management, insurance and employee benefits specialty brokerage firm.
The Jardine Lloyd Thompson Group is one of the world’s largest insurance brokerage firms. JLT Group employs 5,000 professionals worldwide and has offices in 33 countries. All the benefits of this worldwide network can be accessed from our Canadian offices.
In Canada, JLT was formed in 1900, operates from seven offices in four provinces and employs over 250 professionals. JLT has maintained steady growth since its’ founding in Canada.
Paul Dorman 1-800-268-9189 Fax#416-941-9323 pdorman@jltcanada.com
Terry Patterson 1-800-268-9189 Fax#416-941-9323 tpatterson@jltcanada.ca
http://www.jltcanada.com/
About DisasterPhone™
DisasterPhone™ is a customized, private labeled version of CatastroPhone™, a trademarked telecommunication disaster recovery service developed by Manic Marketing Inc. (MMI) of Waterloo, Ontario. MMI’s principals draw from over fifty years of insurance program development and marketing, technology and integrated risk solutions.
Fibernetics Corp, one of Canada’s leading providers of voice and data solutions and a CRTC licensed CLEC telecommunication carrier provides national infrastructure fulfillment for DisasterPhone™.
Greg Dalton 1-866-964-4150 gdalton@catastrophone.ca
http://disasterphone.ca/
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RSA Canada receives 200 claims arising from Hurricane Igor
RSA Canada has received approximately 200 claims related to Hurricane Igor, which hit eastern Newfoundland on Sept. 21.The hurricane cut off power to as many as 50,000 people across the province. Many of the hardest-hit communities were isolated due to significant damage to roads and infrastructure.Most of the RSA claims are for wind and water damage, the company said in a statement.RSA has one personal lines broker in Newfoundland, Steers Insurance. RSA says it is working closely with Steers to help customers. “We have adjusters on the ground in some of the hardest hit communities, including Clarenville,” the company said in its statement. “Two adjusters arrived there on Monday in our Claims Response Vehicle.” RSA reported that it has secured priority service with “one of the province’s largest contracting firms and are in the process of drying out people’s homes.”
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Crawford & Company (Canada) Inc. opens a new office in Prince George, B.C.
Crawford & Company (Canada) Inc. opened an office in Prince George, British Columbia, effective Sept. 1, 2010.”The addition of this office, which covers an important territory in northern British Columbia, will allow us to service our clients even more effectively than before,” said Walter Waugh, vice president of Crawford’s Western Canada operations.Robin Stevens, CIP, managing professional, will operate the Prince George office. Stevens has more than 18 years of experience as a multi-line adjuster, and will report to Dave Lemire, branch manager for Vancouver and Vancouver-area offices.