Industry
Corporate income tax, payroll tax, premium tax, general and provincial sales taxes, capital tax, fire tax, health levies, "mark-to-market" deemed capital gain tax...the list of "creative" taxation mechanisms the federal and provincial governments have concocted over the years to financially milk Canada's property and casualty insurance industry is astonishing. As one renowned tax expert notes, the array of taxes applied to insurance are not only inconsistent in their application, but also result in "taxes being applied on taxes". This led him to conclude that the current approach of the authorities is simply to "treat the industry as a 'cash cow' for tax purposes". Against this backdrop, the Insurance Bureau of Canada has embarked on a nationwide lobby campaign to convince the authorities to reduce transactional-based taxes, with the long-term intent of elimination. This, however, will prove a formidable challenge as once a tax has become entrenched, it may require something akin to an "Act of God" to shift revenue policies, tax consultants warn.
By Sean van Zyl, Editor | May 31, 2001
7 min read
International reinsurer Scor has purchased Groupama’s reinsurance business, Sorema S.A. and Sorema N.A., in a share transaction. The deal, which values the two subsidiaries at EUR 344 million, will make Groupama the largest shareholder in Scor, with a 17% stake. For Scor Canada, the purchase will mean combining its operations with the Canadian branch of […]
May 31, 2001
2 min read
With the rise of the insurance call center environment, companies are seeking a direct, and cost efficient line to customers. But whether or not this core function should be outsourced is a subject of hot debate. Concerns about outsourcing are not without merit, but with proper planning including specification goals and a willingness to delegate responsibility, this can be an efficient and effective vehicle for insurers.
By Paul Kowal, president of Kowal Associates | May 31, 2001
5 min read
The "supply and demand" forces that at various points of the insurance pricing cycle dictate the influence of relations between insurers and brokers has resulted in what many would regard as being "questionable practices" being brought into the marketplace over the years. Perhaps the most questionable of all is the "ex gratia" claim payment, a practice which seems to be becoming increasingly prevalent as the mega insurers fight to secure volume business of the broker networks.
By Linden Rees, president of Insurers Security Services Inc. | May 31, 2001
3 min read
108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 6.4 -3.0% 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% 113.9 +3.5% 108.2 +2.6% Source: A.M. Best 4.6 -17.2 6.4 -3.0% 105.9 +1% 112.2 +12.6% 108.6 +2.5% 108.0 +2.7% […]
1 min read
With the merger of the Insurance Information Centre of Canada (IICC) and the Insurance Bureau of Canada (IBC), IICC president and CEO Bernie Webber has announced his resignation. Terri MacLean, senior vice president of IBC’s Investigative Services Division, will be acting president and CEO of IICC. She will also be IBC’s executive vice president, Investigative […]
Dear Editor, I have been provided with a copy of Paul Iacono’s article from your April 2001 issue. He talks about the “menu” approach to billing. Over the past year the writer took this one step further and actually prepared a menu with fixed prices for each service and three levels of expertise, depending on […]
As controversy over aftermarket parts use continues to swirl in the wake of the State Farm verdict, insurers, auto manufacturers, and those in the collision repair industry are looking at how to make driving safer and reduce accident costs. With auto insurers facing dismal results across the country, and in Ontario in particular, the need to tackle these costs is clear. But the role aftermarket parts, recycled parts, theft deterrents, and vehicle design will play in this attempt to bring profitability back to the auto insurance market was very much up for discussion at the recent Auto Insurers and Manufacturers (AIM) forum held in Mississauga.
By Vikki Spencer | May 31, 2001
Western Canada-based broker network Hi-Alta Capital Inc. (TSE: HIA) reported a 35% increase in net income to $465.5 million for the 2000 financial year compared with 1990’s $345.3 million. This equals earnings of 429 a share for 2000 (1999: 347) which rose at a more sedate pace of 24% year-on-year due to an increase in […]
Adecision handed down by an international “arbitration panel” in late April of this year which upholds Hydro-Quebec’s (HQ) position in a multi-billion dollar contract dispute with a group of Vermont electricity companies could bode poorly for several Canadian insurers who are currently engaged in legal actions against Quebec’s power utility provider to recover losses that […]
4 min read
We use cookies to make your website experience better. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy.
