to the May 2016 Digital Edition

Transcription

C A N A D A’ S I N S U R A N C E A N D R I S K M A G A Z I N E . C A N A D I A N U N D E R W R I T E R . C A
M AY 2 0 1 6
PM#40063170
Tired of Losses
BY GREG MECKBACH
Tribunal Tribulations
BY WILLIE HANDLER
Bona Fide Discrimination
BY DANIEL STRIGBERGER & JENNA METH
We believe actions speak louder than words.
Our customers agree.
Our knowledgeable and caring claims professionals are some of the best in the business, consistently
earning kudos from 9 out of 10 customers in post-claim surveys for the past decade.
Don’t just take our word for it. See what our customers have to say.
economicalinsurance.com/stories
property
|
auto
|
business
The Economical brand includes the following property and casualty insurance companies: Economical Mutual Insurance Company, Perth Insurance Company, Waterloo
Insurance Company, The Missisquoi Insurance Company. ©2016 Economical Insurance. All rights reserved. All Economical intellectual property, including but not
limited to Economical® and related trademarks, names and logos are the property of Economical Mutual Insurance Company and/or its subsidiaries and/or affiliates
and are registered and/or used in Canada. All other intellectual property is the property of their respective owners.
CANADIAN UNDERWRITER
VOL. 83, NO. 5, May 2016
Canada’s Insurance and Risk Magazine.
Published by
newcom business media inc.
www.canadianunderwriter.ca
Cover Story
Tired of Losses
26
Distraction and driver fatigue
are high on the radar screen
for commercial auto insurers,
and while drunkeness may
not account for a significant
percentage of losses, one
insurance expert contends
guidance is needed on
testing employees, in safety
sensitive positions, for
intoxication.
By Greg Meckbach
features
12
40
Catastrophic Impairment
Vehicle Modifications
For auto claims occurring
on or after June 1, Ontario’s
criteria, for catastrophic
impairment, will use the
Glasgow Outcome Scale.
Modifications to commercial
vehicles can have an
impact on safety, severity of
claims, the environment and
insurance coverage.
By Marc Smith
By Mandip Hullait
36
Ethics Series:
Liability Coverage
Brokers advising corporate
clients on liability coverage
should never assume they know
all precedents and settlements.
By The CIP Society
42
16 Dispute Resolution
24 Future Benefits
Ontario’s Licence Appeal
Tribunal Automobile Accident
Benefits Service will be
different in some respects
from how the Financial
Services Commission of
Ontario handled auto
claims disputes.
The Court of Appeal for
Ontario’s ruling in Basandra
v. Sforza was good news
for the insurance industry.
The issue was over the
deductibility, from tort
awards, of accident benefits
payments.
By Willie Handler
By Matthew Owen
20 IBC Financial
Affairs Symposium
47 Mergers &
Acquisitions
Earthquake risk, offshore tax
havens and OSFI corporate
governance guidance
were among the topics of
discussion at Insurance
Bureau of Canada’s 20th
Annual Financial Affairs
Symposium.
Industry consolidation in
the property and casualty
insurance industry is
expected to continue in
2016, and while acquisitions
may help insurers fill gaps in
their businesses, they need
to consider integration plans.
By Greg Meckbach
By Janice Deganis & Ron Stokes
Discriminatory Criteria
Could telematics and online
databases give carriers an
alternative to age and gender
in rating auto clients?
By Daniel Strigberger &
Jenna Meth
May 2016 Canadian Underwriter
3
Editor
[email protected]
PROFILE
PROFILE
Senior Publisher
[email protected]
Angela
Stelmakowich
Steve
Wilson
Canadian
Underwriter’s
Insurance
Media
Group
committed
Underwriter’s
Insurance
Media
is committed
(416)
510-6793 Group
@InsuranceMedia
the industry,
providing
marketers
with aTwitter:
range
ofis specialized
[email protected]
[email protected]
(416) 510-6800
(416)
510-6793
Twitter:
@InsuranceMedia
Associate
Editor timely
to providing
the
most
and
relevant
news,
information
to providing the most
timely
and
relevant
news, information
and
highly effective
marketing
communications
opportunities.
Editor
VOL.
. 2, FEBRUARY 2014
VOL. 81,
81, NO.
NO. 2,
2, FEBRUARY
FEBRUARY 2014
2014
Canadian
PROFILE
PROFILE
Senior
Publisher
Editor
Senior Publisher
EditorMeckbach
Senior
Publisher
(416)
510-6800
Greg
Art
Director
Associate
Editor
Angela
Stelmakowich
Steve
Wilson
Angela
Stelmakowich
Steve
Wilson
Angela
Stelmakowich
Steve
Wilson
and resources
to
insurance
professionals
from
all segments of
resources
professionals
from
all
segments
of
[email protected]
Gerald
Heydens
Editor
Senior
Publisher
Editorto insurance
Senior
Publisher
EditorMeckbach
Senior
Publisher
Greg
Art
Director
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Twitter:
@CU_Greg
VOL. 83, NO. 5, May 2016
Angela
Stelmakowich
Steve
Wilson
Angela Stelmakowich
Steve
Wilson
Angela
Stelmakowich
Steve
Wilson
[email protected]
Gerald
Heydens
Consultation
(416)
510-6793
Twitter:
@InsuranceMedia
(416)
510-6793
@InsuranceMedia
(416)
510-6793
the marketers
industry,
providing
marketers
with aArt
range
of specialized
Twitter:
@InsuranceMedia
the industry,
providing
with
aTwitter:
range
of specialized
(416)
510-6796
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
PROFILE
Twitter:
@CU_Greg
Sascha
Hass
(416)
510-6800
(416)
510-6800
(416)
510-6800
Art
Consultation
(416)
510-6793
Twitter:
(416) 510-6793
Twitter: @InsuranceMedia
Associate
Editor
(416) 510-6796
510-6793
Associate
Editor
Twitter: @InsuranceMedia
@InsuranceMedia
Associate
Editor
(416)
Online
Editor
and
highly effective
marketing
communications
opportunities.
and highly effective
marketing
communications
opportunities.
EditorMeckbach
Senior
Publisher
Sascha
Hass
Canadian
Underwriter’s
Insurance
Media
Group is committed
Production
Manager
profile
(416)
510-6800
(416)
510-6800
Greg
Art
Director
Greg Meckbach
(416)
510-6800
Art
Director
Greg
Meckbach
Art
Director
Harmeet
Singh
Editor
Associate
Editor
Senior
Publisher
Associate Editor
Associate
Editor
Angela
Stelmakowich
Steve
Wilson
Online
Editor Gerald Heydens
Gary
White
[email protected]
to
providing
the
most
timely
and
relevant
Gerald
Heydens
[email protected]
[email protected]
Gerald
Heydens
[email protected]
Angela
Stelmakowich
Production
Manager news, information
Steve
Wilson
Greg
Meckbach
Art
Director
Greg Meckbach
Art Director
Greg
Meckbach
Art
Director
[email protected]
[email protected]
Harmeet
Singh
(416)
510-6760 from all segments of
Twitter:
@CU_Greg
Twitter: @CU_Greg
[email protected]
Twitter:
@CU_Greg
[email protected]
and
resources
to
insurance
professionals
Twitter:
@CU_Harmeet
Gary
White
[email protected]
Gerald
Heydens
[email protected]
Gerald
Heydens
[email protected]
Art
Consultation
Gerald
Heydens
Art
Consultation
(416) 510-6793
510-6793
Twitter:
@InsuranceMedia
Art
Consultation
[email protected]
(416)
510-6800
(416)510-6796
(416)
(416) 510-6796
(416)
510-6796
(416)
442-5600
ext. 3652
the
industry, providing
marketers
with a rangeService
of specialized
(416)
510-6760
Subscriptions/Customer
Twitter:
@CU_Greg
National
Twitter: @CU_Greg
Twitter:
@CU_Greg
Sascha
Hass
Sascha
Hass
(416)
510-6800
Sascha
Hass
Twitter:
@CU_Harmeet
Art
Director
Art
Art Consultation
Art Consultation
Consultation
Editor
Associate
Associate
Editor
Gail
Page
(416)
510-6796
(416) 510-6796
and
highly
effective
marketing
communications
opportunities.
Online
Editor
(416)
510-6796
Online
Editor
Online
Editor
Claims
(416)
442-5600
ext.
3652
Associate
Publisher
Gerald
Heydens
Service
Greg
Meckbach
Sascha
Hass
Canadian
Underwriter’s
Media
isis committed
Sascha
Hass
Canadian
Underwriter’s
Insurance
Media
Group
is committed
Production
Manager
Sascha
Hass
Greg
Meckbach
Production
Manager
Canadian
Underwriter’s
Insurance
Media Group
Group
committed
ArtInsurance
Director
Production
Manager
14 Leading by Example
[email protected]
Harmeet
Singh
Harmeet Singh
Harmeet
Singh
[email protected]
Paul
Aquino
Gail
Page
Art
Consultation
Online
Editor
Manual
Online
Editor
Online
Editor
Gary
White
[email protected]
Gary
White
Gerald
Heydens
Gary
White
to
providing
the
most
timely
and
relevant
news,
information
to
providing
the
most
timely
and
relevant
news,
information
Associate
Publisher
to
providing
the
most
timely
and
relevant
news,
information
James
Cameron,
president
of
(416)
510-5187
[email protected]
(416) 510-6796
[email protected]@canadianunderwriter.ca
Production
Manager
Production Manager
[email protected]
Production
Manager
14 Leading by Example
Sascha
Hass
[email protected]
Harmeet
Singh
InsuranceMarketer.com
Harmeet Singh
Harmeet
Singh
(416)
510-6760
Twitter:
@CU_Greg
(416)professionals
510-6760
(416)
510-6760
Paul
Aquino
and
professionals
from
insurance
from to
all
segments
of
Cameron
& Associates
and resources
resources
to insurance
insurance
professionals
from all
all segments
segments of
of
Twitter:
@CU_Harmeet
Twitter: @CU_Harmeet and resources
Gary
White
Gary White
Twitter:
@CU_Harmeet
Online to
Editor
Gary
White
Art
Consultation
Twitter:
@InsuranceCanuk
James Cameron,
president of
(416)
510-5187
Circulation
Manager
[email protected]
Production Manager
[email protected]@canadianunderwriter.ca
[email protected]
(416) 510-6796
Jason
Contant
(416)
442-5600
ext.
3652
Insurance
Consultants
Limited,
the
industry,
providing
marketers
with
a
range
of
specialized
(416)
442-5600
ext.
3652
(416)
510-6760
the
industry,
providing
marketers
with
a
range
of
specialized
(416)
510-6760
(416)
442-5600
ext.
3652
Service
the
industry,
providing
marketers
with
a
range
of
specialized
(416)
510-6760
Sascha
Hass
Service
National
Service
(416)
510-6788
Karen
Samuels
Cameron & Associates
Mary
Garufi
Twitter:
@CU_Harmeet
Twitter: @CU_Harmeet National
Twitter:
@CU_Harmeet
[email protected]
Twitter:
@InsuranceCanuk
Circulation
Manager
Online
Editor
(416)
510-5190
was
recognized
by the CIP
Gail
Page
Gail
Page
and
highly
marketing
communications
opportunities.
Gail
Page
andClaims
highly
effective
marketing
communications
opportunities.
andClaims
highly effective
effective
marketing
communicationsService
opportunities.
[email protected]
(416)
442-5600
ext.
3652
Insurance
Consultants
Limited,
(416) 442-5600
ext. 3652
(416)
442-5600,
Ext.
3652
Associate
Publisher
(416)
442-5600
ext.
3652
Associate
Publisher
Service
National
Associate
Publisher
Production
Manager
Service
(416)
510-6788
Account
Manager
Mary
Garufi
Leading
by
Example
the
insurance
industry’s social network
ng by Example 14
Leading
by
Example
Harmeet
Singh
[email protected]
[email protected]
Circulation
Manager
Society
when
he
received
its
[email protected]
Claims
(416)
442-5600
ext.
3545
Paul
Aquino
Paul Aquino
was recognized by the CIP
Gail
Page
Associate
Publisher
Gail
Page
Paul
Aquino
Gary
White
Gail
Page
Manual
Manual
Michael
Wells
[email protected]
Associate
Publisher
Associate Publisher
Mary
Garufi
Cameron,
president
of
[email protected]
meron,
presidentJames
of Leading
Associate
Publisher
(416)
510-5187
(416) 510-5187
James
Cameron,
president
of
Manual
(416)
510-5187
Established
Award.its
Account
Manager
14
by
Paul Aquino
ng by Example
Leading
by
Example
[email protected] [email protected]
[email protected]
[email protected]
[email protected]
(416)
510-6760
Society
whenLeader
heExample
received
[email protected]
[email protected]
[email protected]
(416)
442-5600
ext.
3545
Print
Production
Manager
Paul
Aquino
Paul
Aquino
Twitter:
@CU_Harmeet
Paul
Aquino
Cameron
&
Associates
&
Associates
[email protected]
Cameron
& Associates
Michael
Wells
STELMAKOWICH
Twitter:
@InsuranceCanuk
James
Cameron,
president
Twitter: @InsuranceCanuk
meron,
presidentBY
ofANGELA
(416)
510-5187
(416)
614-5831
(416)
510-5187
Twitter:
@InsuranceCanuk
James
Cameron,
president
of
Circulation
Manager
(416)
510-5187
Circulation
Manager
Circulation
Manager
Established
Leader
Award. of
(416)
510-5122
Phyllis
Wright
(416)
(416) 510
442-5600 ext. 3652
[email protected]
Service
Insurance
Consultants
Limited,
[email protected]
Insurance
Print
Production
Manager
(416)
(416) 510-6788
Cameron
&
Associates
(416) 510-6788
510-6788
Mary
Garufi
&Consultants
Associates Limited,
Print
Production
Manager
Mary Garufi
Cameron
&Consultants
Associates Limited,
Mary
Garufi
BY
ANGELA STELMAKOWICH
INSURANCE
the insurance industry’s social network
Twitter:
@InsuranceCanuk
Twitter:
@InsuranceCanuk
Account
Manager
Twitter:
@InsuranceCanuk
Circulation
Manager
Circulation
Manager
Gail
Page
Circulation
Manager
(416)
510-5122
was
recognized
by
the
CIP
nized
by the CIP
Account
Manager
Phyllis
Wright
was
recognized
by the CIP
President
Phyllis
Wright
Associate
Publisher
[email protected]
[email protected]
Insurance
Consultants
Limited,
[email protected]
Consultants
Limited,
Insurance
Consultants
Limited,
National
National
Michael
Wells
National
(416)
510-6788
DIRECTORY
14 Leading
by received
Example
(416) 510-6788
Account
Manager
(416)
510-6788
Account
Manager
Mary
Garufi
[email protected]
Mary
Garufi industry’s social network
Account
Manager
the
industry’s
Mary
Garufi
the insurance
the insurance
insurance
industry’s social
social network
network
Elliot
Ford
Society
when
he
its
en
he
received
its
Bruce
Creighton
Society
when
he
received
its
Paul
Aquino
insBlogs
Claims
President
(416)
442-5600
ext. 3545
Claims
(416)
442-5600
ext.
3545
[email protected]
Claims
(416)
442-5600
was
recognized
by
the
CIP
nized by the CIPwas
Account
Manager
recognized
by president
the CIP of
President
Michael
Wells
James
Cameron,
Michael Wells
[email protected]
(416)
510-5187 ext. 3545
[email protected]
Michael
Wells
[email protected]
INSURANCE
[email protected]
Manual
Manual
(416)
510-5122
Jim
Glionna
Established
Leader
Award.
Manual
Account
Manager
denLeader
Award.its
[email protected]
Account Manager
Established
Leader
Award.its
Account
Manager
Elliot
Ford
Society
when
he
he received
Bruce
Creighton
Society
when
he received
received
its
Vice
President
DIRECTORY
[email protected]
[email protected]
(416)
442-5600
ext.
3545
(416)Production
442-5600 ext.
3545
[email protected]
Cameron
& Associates
Print
Production
Manager
(416)
442-5600
ext.
3545
Print
Manager
Print
Production
Manager
(416)
510-5117
Michael
Wells
Twitter:
@InsuranceCanuk
Account
Manager
Michael Wells
Vice
President
& General Manager
BY
ELMAKOWICH
Michael
Wells
Circulation
Manager
BY ANGELA
ANGELA STELMAKOWICH
STELMAKOWICH
[email protected]
Established
Leader
Award.
d Leader Award.Established
Alex
Papanou
(416)
510-5122
Leader
Award.
(416)
510-5122
(416)
510-5122
Phyllis
Wright
Phyllis
Wright
Insurance
Consultants
Limited,
Phyllis
Wright
10 Right Place, Right Time
Insurance Blogs hosted
by
Canadian510-6788
Underwriter
Christine
GiovisPrint Production Manager
JoePresident
Glionna
(416)
[email protected]
[email protected]
insBlogs Vice
[email protected]
Mary
Garufi Manager
Print
Production
Print
Production
Manager
(416)
510-5117
BY
ANGELA
STELMAKOWICH
ELMAKOWICH
BYwas
ANGELA
STELMAKOWICH
INSURANCE
the
[email protected]
Property &INSURANCE
Casualty
Insurance Newswire
the insurance industry’s social network
theinsurance
insuranceindustry’s
industry’ssocial
socialnetwork
network
recognized
by the started
CIP
SPECIAL
FOCUS
When
John Sharoun
Alex
Papanou
(416)
510-5122
(416) 510-5122
Account
Manager
Property & Casualty InsurancePresident
Newswire
(416)
510-5122
[email protected]
Account
Manager
Phyllis
Wright
Phyllis
Wright
Account
Manager
Phyllis
Wright
President
President
(416)
510-5114
Account
Manager
DIRECTORY
DIRECTORY
Society
when
he
received
its
Elliot
Ford
(416) 442-5600
ext. 3545
Elliot Ford
his career
Elliot
Ford
Creighton
Bruce Creighton
Bruce
Creighton
insBlogs Bruce
insBlogs
SPECIAL
FOCUSin 1973, he
Michael
Wells
Connect
with
Canadian
Account
Manager
Account Manager
Account
Manager
President
PresidentUnderwriter
President
INSURANCE
6Established
INSURANCE
INSURANCE
[email protected]
insBlogs.com
hadEditorial
no ideaLeader
what aAward.
claims
[email protected]
Elliot
Ford
Elliot Ford
PrintPresident
Production
Manager
Elliot
Ford
Bruce
Creighton
Bruce
Creighton
Vice
DIRECTORY
Bruce
Creighton
Vice
President
DIRECTORY
Insurance Blogs
hosted by Canadian Underwriter
Vice
President
DIRECTORY
Connect
with Canadian
Underwriter
BY ANGELA STELMAKOWICH
(416)
510-5117
(416) 510-5117
(416)
twitter.com/CdnUnderwriter
facebook.com/CanadianUnderwriter
trainee did.
(416)510-5117
510-5122
6 adjuster
Editorial
Phyllis
Wright
[email protected]
Alex
Papanou
Alex
Papanou
Alex
Papanou
Insurance
hosted
by
Insurance
hosted
byUnderwriter
Canadian
Underwriter
by Canadian Underwriter
InsuranceBlogs
BlogsBlogs
hosted
byCanadian
Canadian
Underwriter
Vice
President insBlogs Vice
8 Sharoun
Marketplace
Vice President
President
insBlogs
— recipient of the Insurance Blogs hosted(416)
(416)
510-5117
510-5117Property
(416)
510-5117
&
Insurance
Newswire
Property & Casualty Insurance
Newswire
Property
& Casualty
Casualty
Insurance
Newswire
Account
Manager
President
SPECIAL
CUS
Alex
Papanou
.ca
SPECIAL FOCUS
FOCUS
Alex
Papanou
Alex
Papanou
Property
&
Casualty
Insurance
Newswire
Property & Casualtylinkd.in/CanadianUnderwriter
Insurance Newswire
instouch.com/group/CanadianUnderwriter
Property & Casualty Insurance
Newswire
InsuranceMediaGroup.com
2016
Greater
Toronto
Area
8 Marketplace
Elliot Ford
Bruce
Creighton
56
Moves
& Views Award
SPECIAL
FOCUS
CUS
SPECIAL
FOCUS
Connect
with Canadian UnderwriterInsuranceMediaGroup.com
Connect with Canadian Underwriter
Fellow
of Distinction
Connect
linkd.in/CanadianUnderwriter
[email protected]
Published
bywith Canadian Underwriter
6 Editorial
torial
insBlogs.com
www.CanadianUnderwriter.ca/MediaGroup
insBlogs.com
Vice President
56fromMoves
& Views
The CIP
Society —
(416)
510-5117
Insurance
Blogs
hosted
by
Canadian
Underwriter
Insurance
Blogs hosted
by
CanadianCanadian
Underwriter
Insurance
Blogs
hosted
by
Canadian
Underwriter
Connect
with
Underwriter
Connecttwitter.com/CdnUnderwriter
with Canadian Underwriter
Connecttwitter.com/CdnUnderwriter
with
Canadian Underwriter
58
Gallery
Alex Papanou
6 went
Editorial
torial
Canadian BUSINESS
UnderwriterMEDIA
is published
on to become
NEWCOM
INC. thirteen times yearly (monthly + the Annual Statistical Issue) by
Insurance
hosted
Canadian
Underwriter
Insurance Blogs hosted by Canadian Underwriter
InsuranceBlogs
Blogs
hostedby
by
CanadianMEDIA
Underwriter
8 Marketplace
rketplace
NEWCOM
BUSINESS
INC.
SPECIAL
FOCUS
58a senior
Gallery
executive at
is
at thirteen
80 Valleybrook
Drive,(monthly
Toronto,
Ontario,
M3B Statistical
2S9
.ca
.ca
Underwriter
is located
published
times yearly
+
the Annual
Issue) by
linkd.in/CanadianUnderwriter Canadian
8 Crawford
Marketplace
Phone:
(416)
442-5600.
rketplace
NEWCOM
BUSINESS
MEDIA INC.
&
Company.
Connect with Canadian Underwriter
ves & Views 56 Moves & Views
INSURANCE –
we have it covered.
–
INSURANCEINSURANCE
–
we have it covered.
we have it covered.
instouch.com
Photo: David Chang, courtesy of Crawford & Company
Photo:
PatrickThompson
Thompson
Photo:Thompson
Patrick Thompson
Photo:Patrick
Patrick
Thompson
Photo: Patrick
Photo:
Patrick
Photo:
Thompson
Photo: Patrick Thompson
Photo:Thompson
Patrick Thompson
Photo: Patrick
VOL. 81, NO. 2, FEBRUARY 2014
and
insBlogs
Ontario
instouch.com
instouch.com
instouch.com
Ontario
insBlogs
insBlogs
insBlogs
Ontario
Ontario
instouch.com instouch.com
Ontario
insBlogs
Ontario
insBlogs.com
insBlogs
Insurance
InsuranceBlogs
Blogshosted
hostedby
byCanadian
CanadianUnderwriter
Underwriter
.ca
insBlogs.cominsBlogs.com
56
Moves
& Views
6By Angela
Editorial
Stelmakowich
ves & Views 56 Moves & Views
58
lery
8 Gallery
Marketplace
58 Gallery
lery
56 Moves & Views
special
focus
58
Gallery
6 Editorial
8Marketplace
50 Moves & Views
52Gallery
4 Canadian Underwriter February 2014
Canadian
44 2014
Underwriter February
February 2014
2014
Canadian
44 2014
February 2014
2014
4
Canadian Underwriter May 2016
All
rights reserved.
Printed
in Canada.
contentsDrive,
of this
publication
mayM3B
not be
reproduced or transmitted
Canadian
Underwriter
is located
at 80 The
Valleybrook
Toronto,
Ontario,
2S9
Published
by
Published linkd.in/CanadianUnderwriter
by
Published
byeither
in
any form,
in part or in full, including photocopying and
recording, without the written consent of the
Phone:
(416)
442-5600.
.ca
.ca
copyright owner. Nor may
any part of this publication be stored in a retrieval system of any nature without
All rights reserved. Printed in Canada. The contents of this publication
may not be reproduced or transmitted
prior writtentwitter.com/CdnUnderwriter
consent.
in any form, either in part or in full, including photocopying and recording, without the written consent of the
Canadian
Underwriter
is
thirteen
times
yearly
++
Annual
Statistical
Issue)
by
Canadian BUSINESS
UnderwriterMEDIA
iswww.CanadianUnderwriter.ca/MediaGroup
published
yearlyowner.
(monthly
the
Annual
Issue)
by
NEWCOM
BUSINESS
MEDIA
INC.
NEWCOM
INC. thirteen times
©
Published
monthly
as
apublished
source
news,
technical
information
comment,
and
as
link
between
Canadian
Underwriter
is
published
thirteen
times
yearly
(monthly
the
Annual
Statistical
Issue)
by
NEWCOM
BUSINESS
MEDIA
INC.
copyright
Nor +may
any
partofStatistical
of
this publication
be (monthly
stored inand
a the
retrieval
system
of aany
nature
without
NEWCOM
BUSINESS
MEDIA
NEWCOM
BUSINESS
MEDIA INC.
INC.
all
segments
of the insurance
industry
including brokers, agents, insurance and reinsurance companies,
prior
written
consent.
adjusters,
risk
managers
and consultants.
Canadian
Underwriter
is
at
80
Valleybrook
Drive,
Toronto,
Ontario,
M3B
2S9
Canadian
at thirteen
80 Valleybrook
Drive,
Toronto,
Ontario,
M3B
2S9
Canadian
Underwriter
is
published
thirteen
times
yearly
(monthly
+
the
Annual
Issue)
by
Canadian
Underwriter
is
located
at
80
Valleybrook
Drive,
Toronto,and
Ontario,
M3BStatistical
2S9as a link
Underwriter is
is located
published
times
yearly
(monthly
the
Annual
Issue)
by
©
Published
monthly+
as
alocated
source
ofStatistical
news,
technical
information
comment,
and
between
Canadian
Underwriter
is
published
thirteen
times
yearly
(monthly
+
the
Annual
Statistical
Issue)
by
Phone:
(416)
442-5600.
Phone:
(416)
442-5600.
NEWCOM
BUSINESS
MEDIA
NEWCOM BUSINESS MEDIA INC.
Phone:
(416)
NEWCOM
BUSINESS
MEDIA INC.
INC.
all
segments
of442-5600.
the insurance
industry
including brokers, agents, insurance and reinsurance companies,
Privacy
Notice
adjusters,
risk
managers
and
consultants.
All
rights
Printed
in
Canada.
The
contents
of
publication
may
not
reproduced
All
rights reserved.
Printed
in Canada.
contents
of reserved.
this
publication
may
not
or
transmitted
Canadian
Underwriter
is
at
80
Valleybrook
Drive,
Toronto,
Ontario,
2S9
Canadian
Underwriter
is located
at 80 The
Valleybrook
Drive,
Toronto,
Ontario,
2S9
All
rights
reserved.
Printed
in M3B
Canada.
The
contents
of this
this
publication
mayM3B
not be
be
reproduced or
or transmitted
transmitted
Canadian
Underwriter
is located
located
atbe
80reproduced
Valleybrook
Drive,
Toronto,
Ontario,
M3B
2S9
to either
time
make
subscription
list
available
select
companies
and organizations
whose of
in
any
form,
in
part
or
in
full,
photocopying
without
the
in
any form,
in part or in full, includingFrom
photocopying
andwe
recording,
the written
consent to
ofand
the recording,
Phone:
(416)
442-5600.
Phone:
(416)either
442-5600.
in
anytime
form,
in
part
orour
inwithout
full, including
including
photocopying
and
recording,
without
the written
written consent
consent
of the
the
Phone:
(416)either
442-5600.
product
or
service
may
interest
you.
you
do not
wishwithout
your
contact
to beof
available,
copyright
owner.
any
of
be
stored
in
retrieval
any
without
copyright owner. Nor may any part of this publication
be
storedNor
in may
amay
retrieval
system
of publication
any
nature
copyright
owner.
Nor
any part
part
ofIfthis
this
publication
be
stored
in aainformation
retrieval system
system
ofmade
any nature
nature
without
Privacy
Notice
All
Printed
in
Canada.
The
contents
All rights reserved. Printed in Canada. The contents
of reserved.
this
publication
may
not
be reproduced
or of
transmitted
All rights
rights
reserved.
Printed
in
Canada.
Themethods:
contents
of this
this publication
publication may
may not
not be
be reproduced
reproduced or
or transmitted
transmitted
please
contact
us
via
one
of
the
following
prior
written
consent.
prior written consent.
prior
written
consent.
From
time
to
time
we
make
our
subscription
list
available
to
select
companies
and
organizations
whose
Canadian
Underwriter
is
published
thirteen
times
yearly
(monthly
+
the
Annual
Statistical
Issue)
by
any
form,
either
in
part
or
in
full,
including
photocopying
and
recording,
without
the
written
consent
of
the
in any form, either in part or in full, includingin
photocopying
and
recording,
without
the
written
consent
of
the
in any form, either in part or in full, including photocopying and recording, without the written consent of the
Phone:
1-800-668-2374
416-442-2191
product
or
service
may
interest
you.
Ifnews,
you
do
not
wish
your
contact
to
beas
available,
neWcOM
BuSineSS
MeDia
inc.
©
Published
monthly
as
aaFax:
source
of
technical
information
and
comment,
and
aany
link
between
©
Published
monthly
as a any
source
technical
information
comment,
and
as
aany
link
between
copyright
owner.
Nor
may
any
part
of
this
be
stored
in
aainformation
retrieval
system
of
nature
without
copyright
owner.
Nor may
partofofnews,
this publication
be
stored
inand
amay
retrieval
system
of publication
nature
without
©
Published
monthly
as
source
of
technical
information
and
comment,
and
as
aany
link
between
copyright
owner.
Nor
any
part
ofnews,
this
publication
be
stored
in
retrieval
system
ofmade
nature
without
E-mail:
[email protected]
please
contact
via
one of the
following
methods:
all
segments
of
the
insurance
industry
including
brokers,
agents,
insurance
and
companies,
all
segments
of the insurance industry including
brokers,
agents,
insurance
and
companies,
prior
written
consent.
prior
written consent.
all
segments
ofus
the
insurance
industry
including
brokers,
agents,
insurance M3B
and reinsurance
reinsurance
companies,
prior
written
consent.
canadian
underwriter
is
located
atreinsurance
80Drive,
Valleybrook
Drive,
Toronto,
2S9
Mail
to: Privacy
Officer, 80
Valleybrook
Toronto,
Ontario,
M3BOntario,
2S9
adjusters,
risk
managers
and
consultants.
adjusters, risk managers and consultants.
adjusters,
risk
managers
and
consultants.
Phone:
1-800-668-2374
Fax:
416-442-2191
(416)
442-5600.
©
Published
monthly
as
aa source
news,
information
© Published monthly as a source of news, technical
information
and
and
as atechnical
link between
©Phone:
Published
monthly
ascomment,
source of
of
news,
technical
information and
and comment,
comment, and
and as
as aa link
link between
between
E-mail:
[email protected]
all
segments
of
insurance
including
brokers,
agents,
insurance
companies,
all segments of the insurance industry including
brokers,
agents,
insurance
and
reinsurance
companies,
allAll
segments
of the
the2013
insurance
industry
including
brokers,
agents,
insurance
and
reinsurance
companies,
GST
Registration
number
890939689RT0001
Subscription
Rates:
Canada
rights reserved.
Printed
inindustry
Canada.
The contents
of this
publication
mayand
notreinsurance
be reproduced
or transmitted
Mail
to: Notice
Privacy
Officer, 80
Valleybrook
Drive, Toronto, Ontario, M3B 2S9
adjusters,
risk
managers
and
consultants.
Privacy
Notice
adjusters,
risk managers and consultants. Privacy
Privacy
Notice
adjusters,
risk
managers
and
consultants.
Second
Class
Mail
Registration
Number:
08840
in
any
form,
either
in
part
or
in
full,
including
photocopying
and
recording,
without
the
written
consent of the
1 Year $49.95 plus applicable taxes
time
time
we
our
subscription
list
available
to
select
and
whose
From time to time we make our subscription From
list
available
to
select
companies
and
whose
From
time to
to
time
we make
make
ourpart
subscription
list
available
to
select
and organizations
organizations
whose
copyright
owner.
Nor
may any
of organizations
this publication
be stored
in companies
acompanies
retrieval
system
of any nature
without
Publications
Mail
Agreement
#40069240
2
Years
$73.95
plus
applicable
taxes
GST
Registration
number
890939689RT0001
Subscription
Rates:
2015
Canada you.
or
service
may
interest
you
do
wish
your
information
to
product or service may interest you. If you doproduct
not
wish
contact
made
available,
product
oryour
service
mayinformation
interest
you.toIfIfbe
you
do not
not
wish
your contact
contact
information
to be
be made
made available,
available,
prior
written
consent.
Privacy
Notice
Privacy Notice
Privacy
Notice
Return
undeliverable
Canadian
addresses
to:
Second
Class
Mail
Registration
Number:
08840
please
contact
us
via
one
of
the
following
methods:
please contact us via one of the following methods:
1please
Year Copies
$51.95
plus
applicable
contact$10
us
via
one
of thetaxes
following
Single
plus
applicable
taxes methods:
From
time
to
time
we
make
our
subscription
list
available
to
select
companies
and
organizations
whose
From time to time we make our subscription list
available
select
and
organizations
whose
From
time toto
time
we companies
make
our subscription
list
available
to
select
companies
and
whose
©
Published
monthly
as a source
of news,
technical
information
and
comment,
andorganizations
as a link between
Circulation
Dept.
Publications
Mail
Agreement
#40063170
2
Years
$75.95
plus
applicable
taxes
Phone:
1-800-668-2374
Fax:
Phone:
Fax: 416-442-2191
product
or
service
may
interest
you.
you
do
wish
contact
information
be
product1-800-668-2374
or service may interest
you. If you doElsewhere
not
contact
information
made
available,
Phone:
1-800-668-2374
Fax: 416-442-2191
416-442-2191
product
oryour
service
may
interest
you.toIfIfbe
you
do not
not
wish your
your
contactinsurance
information
to
be made
made available,
available,
all wish
segments
of
the
insurance
industry
including
brokers,
agents,
andto
reinsurance
companies,
Canadian
Underwriter
Return undeliverable Canadian addresses to:
E-mail:
[email protected]
E-mail:
[email protected]
please
contact
us
via
one
of
the
following
please contact
us via one of the following methods:
E-mail:
[email protected]
please
contact
us
via
one
of
the
following
methods:
adjusters,
risk
managers
and
consultants.
Single
$10
plus
applicable
taxes methods:
80 Valleybrook Drive, Toronto, Ontario
1
Year Copies
$73.95
Circulation
Dept. M3B
to:
Officer,
80
Ontario,
Mail to: Privacy Officer, 80 Valleybrook Drive,Mail
Toronto,
Ontario,
M3B 2S9
Mail
to: Privacy
Privacy
Officer,
80 Valleybrook
Valleybrook Drive,
Drive, Toronto,
Toronto,
Ontario,
M3B 2S9
2S9
M3B 2S9
Phone:
1-800-668-2374
Fax:
Phone: 1-800-668-2374 Fax: 416-442-2191Elsewhere
Phone:Statistical
1-800-668-2374
Fax: 416-442-2191
416-442-2191 Canadian Underwriter
Annual
Issue
E-mail:
[email protected]
E-mail: [email protected]
E-mail:
[email protected]
Privacy
Notice
WeValleybrook
acknowledge
the financial
support
80
Drive,
Toronto,
Ontario
1Subscription
Year Registration
$71.95
(included
with
above
subscription)
Registration
number
890939689RT0001
Subscription
Rates:
2013
Canada
GST
number
890939689RT0001GST
Subscription Rates: 2013 Canada
GST
Registration
number
890939689RT0001
Rates:
2013
Canada
to:
Privacy
Officer,
80
Drive,
Toronto,
Ontario,
M3B
2S9
Mail to: Privacy Officer, 80 Valleybrook Drive,Mail
Toronto,
Ontario,
M3B
2S9
Mail
to:time
Privacy
Officer,
80 Valleybrook
Valleybrook
Drive,
Toronto,
Ontario,
M3B
2S9 through
From
to
time
weapplicable
make
ourNumber:
subscription
list
available
to select
companies
and organizations whose
of the
Government
of Canada
M3B
2S9
or
separately
$38
plus
taxes
Second
Class
Class
Mail
Registration
08840
11Second
Year
$49.95
plus
applicable
Second
Class Mail
Mail Registration
Registration Number:
Number: 08840
08840
1 Year $49.95 plus applicable taxes
Year
$49.95
plus
applicable taxes
taxes
Annual
Statistical
Issue
product
or service
may interest
you. If you doPublications
not Canada
wish your
contact
information
the
Periodical
Fund of
the to be made available,
Mail
Agreement
#40069240
Publications
Mail
Agreement
#40069240
Publications
Mailthe
Agreement
#40069240
2
Years
$73.95
plus
applicable
taxes
2
Years $73.95
plus
applicable
We acknowledge
financial
support
2
Years
$73.95
plus
applicable
taxes
(included
with
above
subscription)
GST
Registration
number
890939689RT0001
Rates:
2015
Canada
Subscription
Inquiries/Customer
Service
GST
Registration
number
890939689RT0001
Subscription
Rates:
2015
Canada taxes
please
contact
us
via
one
of
the
following
methods:
Department
of
Canadian
Heritage
GST Registration number 890939689RT0001
Subscription Rates: 2015 Canada
ISSN Print: 0008-5251
of
the
Government
of
Canada
through
Return
Canadian
undeliverable
Canadian
to:
or
separately
$39
plus
applicable
taxes
Second
Class
Number:
08840
Bona
Lao
(416)
442-5600
ext addresses
3552
Second
Class
Mail
Registration
Number:
Return
undeliverable
Canadian addresses
addresses
to:
1Single
Year
$51.95
plus
applicable
taxes
Secondundeliverable
Class Mail
Mail Registration
Registration
Number:to:
08840
1 Year Copies
$51.95$10
plus
applicable
taxes
Single
Copies
$10
plus
applicable
taxes
1Return
Year
$51.95
plus
applicable
Single
plus
applicable
taxes
Copies
$10
plus
applicable
taxes 08840
Phone:
1-800-668-2374
Fax: taxes
416-442-2191
the CanadaDept.
Periodical
Fund of the
Circulation
Dept.
Publications
Mail
[email protected]
Publications
Mail
Agreement
#40063170
Circulation
Dept.
Publications
Mail Agreement
Agreement #40063170
#40063170 ISSN Digital: 1923-3426
22Circulation
Years
plus
applicable
taxes
2 Years $75.95 plus applicable taxes
Years $75.95
$75.95
plus
applicable
taxes
E-mail:
[email protected]
Subscription
Inquiries/Customer
Service
Department
of
Canadian
Heritage
Elsewhere
Canadian
Elsewhere
Elsewhere
Underwriter
Return
undeliverable
Canadian
MailLao
to:
Privacy
Officer,
80ext.
Valleybrook
Drive,80
Toronto,
Ontario, M3B
2S9 addresses
Return
undeliverable
Canadian
addresses
to:
Bona
(416)
442-5600
3552
Return
undeliverable
Canadian
addresses to:
to:
Single
Copies
$10
plus
applicable
taxes
Single
80
Valleybrook
Drive,
Ontario
1
Year
$73.95
Single
Copies
$10
plusToronto,
applicable
taxes
1
Year Copies
$73.95$10 plus applicable taxes
80 Valleybrook
Valleybrook Drive,
Drive, Toronto,
Toronto, Ontario
Ontario
1
Year
$73.95
ISSN Digital: 1923-3426
Circulation
Dept.
Circulation
Dept.
[email protected]
Circulation
Dept.
M3B
2S9
M3B 2S9
M3B
2S9
Elsewhere
Canadian
Underwriter
Elsewhere
Canadian
Underwriter
Annual
Statistical
Issue
GST Registration
number 890939689RT0001
Subscription
Rates:
2013 Canada
Elsewhere
Canadian
Underwriter
Annual
Statistical Issue
Annual
Statistical
Issue
We
acknowledge
the
financial
support
We
acknowledge
thesubscription)
financial
support
80
Valleybrook
Drive,
Toronto,
We
acknowledge
the
financial
support
Valleybrook
Drive,
Toronto, Ontario
1(included
$71.95
Second
Class Mail
Registration
Number: 08840
(included
with
1 Year $71.95
80
Valleybrook
Drive,
Toronto, Ontario
Ontario
(included
with above subscription)
1Year
Year
$49.95
plus
applicable
taxes
180
Year
$71.95
with above
above
subscription)
of
the
Government
of
of
the2S9
Government
ofapplicable
Canada through
M3B
2S9
of
the
Government
of Canada
Canada through
through
Publications
Mail Agreement
#40069240
or
separately
$38
taxes
M3B
2S9
or separately $38 plus applicable taxes
orM3B
separately
$38 plus
plus
applicable
2
Years
$73.95
taxes
Annual
Statistical
Issue
Annual Statistical Issue
the
Canada
Periodical
Fund
of
Annual
Statistical
Issue Fund of the
the Canada
Periodical
the Canada Periodical Fund of the
the
We
acknowledge
the
financial
support
We
acknowledge
the
financial
support
Return
undeliverable
Canadian
addresses
to:
We
acknowledge
the
financial
support
(included
with
above
subscription)
Subscription
Inquiries/Customer
Service
(included with
above subscription)
Subscription
Inquiries/Customer
Service
Department
of
(included
with
above
subscription)
Single
Copies
$10
plus
applicable
taxes
Department
of
Canadian
Heritage
Subscription
Inquiries/Customer
Service
Department
of Canadian
Canadian Heritage
Heritage
ISSN
ISSN
Print:
0008-5251
of
the
ISSN Print:
Print: 0008-5251
0008-5251
the
Government
ofapplicable
Canada
through
Circulation
Dept. of
of
the Government
Government
of Canada
Canada through
through
or
separately
$39
plus
taxes
Bona
Lao
442-5600
ext
or separately
$39442-5600
plus applicable
taxes
Bona
Lao (416)
ext 3552
orof
separately
$39
plus
applicable
taxes
Bona
Lao (416)
(416)
442-5600
ext 3552
3552
the
Canada
Periodical
Fund
of
the
Elsewhere
the
Canada
Periodical
Fund
of
the
Canadian
Underwriter
ISSN
Canada
Periodical Fund of the
ISSNthe
Digital:
1923-3426
[email protected]
ISSN Digital:
Digital: 1923-3426
1923-3426
[email protected]
[email protected]
Subscription
Inquiries/Customer
Service
Subscription Inquiries/Customer Service
Department
of
Canadian
Heritage
of Canadian Heritage
80 Valleybrook
Drive, Toronto,
Ontario
Subscription
Inquiries/Customer
Service
1Department
Year $73.95
Department
of
Canadian
Heritage
ISSN
ISSN Print:
Print: 0008-5251
0008-5251
Bona
Bona Lao (416) 442-5600 ext. 3552
M3B 2S9
Bona Lao
Lao (416)
(416) 442-5600
442-5600 ext.
ext. 3552
3552
ISSN
Annual Statistical Issue
[email protected]
ISSN Digital:
Digital: 1923-3426
1923-3426
[email protected]
[email protected]
We acknowledge the financial support
(included with above subscription)
of the Government of Canada through
or separately $38 plus applicable taxes
the Canada Periodical Fund of the
Subscription Inquiries/Customer Service
Department of Canadian Heritage
Bona lao (416) 442-5600 ext 3552
[email protected]
NEWCOM BUSINESS MEDIA INC.
Providing Security,
Strength and
Innovative Solutions
to the Canadian
market for 35 Years
At TransRe, a mix of innovative programs, proven
expertise and considerable capacity, on a foundation
of financial strength, has created a new standard
for reinsurance.
As we celebrate the 35th Anniversary of our Canadian
operation, we thank you for your confidence.
With our international network of offices, we are
committed to being a long-term partner in meeting
your reinsurance needs.
For more information on TransRe, please give us a call at 416-649-5300
95 Wellington Street West, Suite 1110, Toronto, Ontario M5J 2N7
Visit our website at: www.transre.com
S&P rating A+ AM Best Rating: A
editorial
Road to Judgment
Computer programs
simply obey
commands. They
are not born to run
red lights, break
the speed limit, fall
asleep, get drunk or
play Tetris when they
are supposed to
be paying attention
to the road.
Greg Meckbach
Associate Editor
[email protected]
6
Suppose that, because the
name Bruce Springsteen
appears nine times in this
editorial (twice in the
lede), an Internet search
engine misidentifies Bruce
Springsteen, rather than selfdriving cars, as a key topic.
Search engines are now
pertinent to traffic safety
because Google Inc. is
advocating for self-driving
cars without steering wheels
or pedals. Ontario is one
North American jurisdiction,
with an approval process
for autonomous cars, that
requires the ability for human
drivers to take over.
So if Bruce Springsteen,
for example, got tired of his
pink Cadillac and decided to
ride in the back seat of a trial
autonomous vehicle, he would
have to have a chauffeur in
the front who could take over.
A safe human driver is
someone who not only is fit to
drive, but is paying attention
and has sound judgment —
similar to a reader who would
be able to figure out that
Bruce Springsteen is not the
main topic of this editorial.
This is not to suggest that
search engines will categorize
this as an article about Bruce
Springsteen. A search engine
may be programmed in such
a way that it detects that
Bruce Springsteen was just
chosen as an example, or may
even ignore the term Bruce
Springsteen in this context.
However, it would not be
unreasonable to anticipate
that a well-programmed
search engine, which operates exactly in the manner
intended by its programmers,
could mis-identify Bruce
Springsteen as a key topic of
this editorial.
By the same token, a
human who is reading this
may have no idea what this
article is about, especially if
that human is drowsy, intoxicated or distracted because
he or she is using his or
her mobile device instead
of reading. In that case, a
computer program may have
a better chance of identifying
the topic than a human not
actually looking at it.
This is why self-driving cars
are statistically safer than
humans. It is not because
cars are inherently suicide
machines or because software
has better judgment than humans. It is because too many
human drivers are distracted,
falling asleep, impaired, reckless or incompetent.
Computer programs simply
obey commands. They are not
born to run red lights, break
the speed limit, fall asleep,
get drunk or play Tetris when
they are supposed to be paying attention to the road.
But are self-driving cars
inherently safer than human
drivers?
“To verify self-driving cars
are as safe as human drivers,
275 million miles must be
driven fatality-free,” said
Missy Cummings, director of
the Humans and Autonomy
Lab at Duke University, during
a hearing March 15 before
the United States Senate
Committee on Commerce,
Science and Transportation.
“Given self-driving cars’
heavy dependence on
probabalistic reasoning and
the sheer complexity of the
driving domain, to paraphrase
[former U.S. defense
secretary] Donald Rumsfeld,
there are many unknown
unknowns that we will encounter with these systems.”
During that hearing, Google
self-driving car director Chris
Urmson testified that 94% of
accidents in the U.S. are due
to human error. However, the
fact that good software can
drive more safely than some
human drivers does not make
computers inherently safer
than human drivers.
What is the worst thing that
would happen if a computer
program mistakenly identified
this editorial as an article
about The Boss? Certainly no
one would get injured or die.
But what is the worst thing
that would happen if an
autonomous vehicle —
lacking the judgment that
a human driver ought to
have — is presented with a
situation unforeseen by the
programmer?
“These systems will not be
ready for fielding until we
move away from superficial
demonstrations to principled,
evidence-based test and
evaluations, including testing
human/autonomous system
interactions and sensor and
system vulnerabilities in
environmental extremes,”
Cummings contends.
If this editorial does not
appear in search results for
Bruce Springsteen, that may
bode well for the safety of
self-driving cars — assuming
that the software driving the
cars is at least as good as web
search algorithms.
What is Craftsmanship ?
SM
To be crafted is to meet exacting standards.
It’s the human touch that combines art and
science to create something unique.
©2016 Chubb. Coverages underwritten by one or more subsidiary companies. Not all coverages available in all jurisdictions.
Chubb®, its logo, Not just coverage. Craftsmanship.SM and Chubb. Insured.SM are protected trademarks of Chubb.
We tend to think about craftsmanship in
terms of physical things: Fine wine, classic cars,
custom furniture and iconic structures.
But what about the underwriting of insurance to
craft protection for your unique and valuable things?
And the service behind that coverage when you need
it most — like claims and loss prevention?
For your business.
Your employees.
Your home.
The people you love.
Things that need a particular kind of protection
and service.
The kind Chubb provides.
Not just coverage. Craftsmanship.SM
Not just insured.
Chubb. Insured.
SM
marketplace
Regulation
Ottawa, Toronto legalize
private transportation
companies
Toronto City Council voted May
3 to establish a new licensing
class of private transportation
companies (PTCs).
The city will regulate
anyone “who offers, operates,
or facilitates transportation
services for compensation
using software, an application,
or a telecommunications
platform to communicate with
passengers and PTC Drivers.”
That vote was held three
weeks after the City of
Ottawa announced it had
approved new vehicle-for-hire
regulations. In Ottawa, each
PTC will have to provide
information about its drivers
and their vehicles — including insurance.
In Toronto, the city would
require that a PTC’s drivers
and vehicles have auto
liability coverage of at least
$2 million per occurrence.
A PTC will also require
commercial general liability
business insurance coverage
of at least $5 million.
SGI offers discounted
accident benefits option
to motorcyclists
On April 1, Saskatchewan
Government Insurance
implemented a Reduced No
Fault coverage for motorcycle
owners, who can now get
a discount depending on
engine size.
Motorcycle owners opting
for the coverage will receive
fewer benefits when they are
8
operating their motorcycle
and are found 50% or more
responsible for the collision,
and also when they are in
any single-vehicle crash.
In collisions where someone
else is responsible, the motorcycle owner would receive
full No Fault benefits. Among
other things, motorcycle owners must sign a declaration
form stating they understand
the reduced coverage.
15% premium tax coming
to Newfoundland in July
When a 15% retail sales tax
on property and casualty insurance policies takes effect
this July in Newfoundland
and Labrador, that province
will have the highest taxes
on insurance premiums in
Canada, an Insurance Bureau
of Canada (IBC) official says.
The government budget for
the 2016-2017 fiscal year
was tabled April 14.
“The Retail Sales Tax on
insurance premiums is being
reintroduced on July 1,
2016,” the budget document
notes. “A tax of 15 per cent
will be applied to insurance
premiums for property and
casualty insurance policies.”
Quebec currently has the
highest premium taxes in
Canada, Amanda Dean,
IBC’s vice president, Atlantic
Canada, told Canadian
Underwriter. But as of July
1 — in addition to bringing
back the retail sales tax on
insurance premiums — the
Newfoundland and Labrador
government will also increase, by one percentage
point, the Insurance
Companies Tax, currently at
4%. “As a result of those tax
measures, consumers from
Newfoundland and Labrador
will pay the highest taxes on
insurance premiums in the
country,” Dean says.
Claims
fort mcmurray fire
losses “will likely” top
slave lake: report
Three days after the entire
town of Fort McMurray was
subject to an evacuation
order, A.M. Best Company
Inc. released a report predicting the Alberta wildfire
“will likely have significantly
more losses than the Slave
Lake Fire in May 2011.”
The Slave Lake fire resulted
in insured losses of more than
$700 million, A.M. Best notes
in report released May 6.
At that time, the wildfire
had “damaged or destroyed
more than 1,600 homes and
structures, and is threatening 19,000 more,” A.M.
Best reports. “The blaze has
engulfed entire neighbourhoods, business districts
and has burned more than
18,500 acres.”
Until 2013, the Slave Lake
fire ranked second (behind
the ice storm of 1998) on
the list of Canada’s most
expensive natural disaster,
by insured losses. The floods
affecting southern Alberta in
2013 (which now tops the
list) caused about $2 billion
in insured losses while a July
8, 2013 rainstorm caused
about $850 million in losses
in the Toronto area.
That event is now the third
most expensive natural
disaster in Canadian history.
U.S. commercial auto hit
with heightened claims
severity: Fitch
Commercial auto insurance
in the United States has
evolved into a “chronically
underperforming product
segment” for property and
casualty insurers in the country, reports Fitch Ratings.
While the p&c industry has
reported three consecutive
years of significant underwriting profits, the commercial
auto market reported an
underwriting loss for the fifth
consecutive year in 2015,
states a press release from
Fitch Ratings.
Underwriting losses have
accelerated with the segment
statutory combined ratio
rising to about 109% for the
latest year. The commercial
auto combined ratio averaged
106% from 2011 to 2015.
“The poor performance
is a reflection of previous
overly aggressive pricing
in commercial auto and a
recent extended period of
heightened claims severity,
particularly relating to bodily
injury claims,” James Auden,
managing director of Fitch
Ratings, says in the release.
damages from Ontario
ice storm exceeds
$25 million: CatIQ
The cost of insured damage
caused by the ice storm
that swept through southern
Ontario between March 23
and 26 is estimated at more
than $25 million, note preliminary estimates provided
marketplace
by Catastrophe Indices and
Quantification Inc. (CatIQ)
released in April.
While the storm hit many
areas in the province,
Fergus, Orangeville, Barrie,
Newmarket and surrounding
areas were particularly affected
by the storm, Insurance
Bureau of Canada reports.
Strong winds and freezing
rain toppled fences, trees
and power lines, and left
hundreds without power.
Canadian
Market
Allstate rolls out
telematics auto
insurance in Alberta
Allstate Insurance Company
of Canada went live April 1
with usage-based insurance
to personal lines customers
in Alberta.
With Drivewise — which
was already available to
Ontario auto customers —
Allstate is using telematics
technology from Modus
Group LLC.
The insurer plans to give
discounts of up to 30% for
good driving behaviour.
Underwriting income
triples in 2015: IBC
Canada’s property and casualty industry “had a relatively
good year,” in 2015, with
underwriting income of about
$1.7 billion, David McGown,
senior vice president of
strategic initiatives for
Insurance Bureau of Canada
(IBC), said in April during
Swiss Re’s 2016 Canadian
Insurance Outlook.
Underwriting income was
$558 million in 2014,
McGown told attendees of
the 31st edition of the
annual event in Toronto.
“Less severe weather gave
us a break for the second
year in a row,” he said,
noting that $600 million in
insured losses from natural
catastrophes in 2015 represented “the first time since
2009 that such losses were
well below $1 billion.”
As for private passenger
auto, McGown said the slight
improvement in the nationwide loss ratio for auto was as
a result of better performance
in Ontario and Alberta.
Risk
B.C. commits $4 million
for flood mitigation on
Fraser River
British Columbia’s Ministry
of Transportation and
Infrastructure announced
in April it is committing
$4 million in funding for
shoreline flood mitigation
projects in Abbotsford.
The project is intended to
provide stabilization of river
banks along the Fraser River
to help protect nearly 5,000
hectares of agricultural land,
the historic Clayburn and
Matsqui Village, Matsqui First
Nations and major regional
infrastructure like Highway
11, railways, the National
Defence communications
centre, BC Hydro towers, gas
mains, and water and community wastewater facilities.
The investment is part of
more than $49 million being
provided to flood mitigation
projects — such as upgrades
to dikes and flood protection
— in communities throughout
British Columbia.
civil aviation) and crowded
public spaces (including
retail and sports venues).”
Aon reports “significant
business risk” from
terrorism in 2015
Canadian risks insured
by two new cat bonds
Aon plc’s risk solutions unit
released in April its annual
Terrorism and Political
Violence Map, which found
risk ratings in 18 countries
experienced an increase and
13 countries saw a decrease.
For the first time since Aon
and The Risk Advisory Group
plc jointly began collecting
empirical data to create the
map in 2007, shootings
have overtaken bombings
in the western world, while
the targeting of civilians in
public spaces has become
more commonplace, Aon
Risk Solutions reports.
Since January 2015, nearly
one-third (31%) of all attacks
in the West targeted private
citizens and public gatherings,
a company statement adds.
“This marks a significant
change from 2010-2014,
when attacks against private
citizens and public gatherings made up just 25% of
recorded incidents, second
to attacks on police, military
and government, which
totalled 43% of attacks,”
Aon states in the report.
“This means that terrorism
re-emerged as a significant
business risk over the past
year, with major high-profile
international attacks targeting tourism-related sectors
(hotels, resorts, airports and
Reinsurance
Sponsors completed two
catastrophe bonds with
coverage for Canada in the
first quarter of 2016 — the
same two sponsors that did
so in Q1 2015, reports Verisk
Analytics Inc.’s Property
Claims Services unit.
In Déjà vu: PCS Q1 2016
Catastrophe Bond Report,
released in April, PCS reports
capital raised by cat bonds
that included cover for Canada
surged from $350 million
last year to $600 million
this year. The latest Galileo
Re stayed at $300 million,
but the new Atlas IX Capital
DAC transaction was twice as
large as the one completed
in the first quarter of 2015,
PCS reports.
In a separate report, Aon
plc reported that Atlas IX
Capital DAC issued $300
million in cat bonds on behalf of SCOR Global P&C SE.
The covered perils of that
bond include U.S. hurricane,
as well as U.S. and Canadian
earthquake.
In its Insurance Linked
Securities Q1 2016 update,
Aon Benfield notes that
“U.S. named storm and
earthquake dominated the
market, as did, to a lesser
extent, Japan typhoon.” Aon
adds the Galileo Re issuance
was made on behalf of XL
Insurance (Bermuda) Ltd.
9
Profile
Right Place, Right Time
Angela Stelmakowich
Editor
John Sharoun,
recipient of The
CIP Society’s
2016 Greater
Toronto Area
Fellow of
Distinction
Award, knows
making an effort
can produce
solid results.
One could argue that John
Sharoun owes a rewarding,
four-decades-long career in
insurance to a “beater” and
an assertive broker.
Insurance was not on his
career radar, in his mind or
even a passing notion when
Sharoun, now executive
general adjuster and senior
consultant with Crawford
& Company (Canada) Inc.,
returned to Toronto from
a stint of backpacking in
Europe after his first year of
university. What was on his
mind was getting a car.
Enter the beater: that
cheap, seen-better-days
mode of transportation that
may have been regarded as
a staple for a young man in
1973. But what is a vehicle
without insurance?
Enter the assertive broker.
A friend of the family, the
broker gave Sharoun the, “‘So
now that you’ve been fooling
around for a year, what are
10 Canadian Underwriter May 2016
you really going to do with
your life?’ routine,” he relays.
Later that day, the broker
called back. “‘Here’s your quote
for your insurance,’” he said.
“‘And you have an appointment at the Hartford tomorrow morning for an adjuster
training position. Be there at
9 o’clock.’ And so I was.”
That Sharoun had no idea
what an adjuster trainee did
was beside the point. He
interviewed, and with the
broker’s recommendation,
began his insurance career.
It has been a wide-ranging
career, providing views from
the carrier, business owner
and independent adjusting
sides of the business. At
Hartford Insurance, where he
worked from 1973 through
1979, Sharoun advanced to
assistant branch manager
of the Toronto office; at
Allstate Insurance Company
of Canada, he joined the
company’s fledgling commercial division — starting
as commercial examiner in
1979 and finishing in the
late 1980s as Canadian
commercial claims manager
— to witness the entire
commercial team grow from
a staff of about 20 or 30 to
more than 275 Canada-wide
thanks to the concerted
efforts of the whole team;
and at Laurentian Casualty
Company of Canada, he
assumed duties as vice
president of claims.
Ending his tenure on the
carrier side, Sharoun joined
three other partners to
launch an independent
adjusting office, initially
known as Cherrie Lowthian
Smith and Sharoun in 1990.
There, he learned plenty
about insurance, but also
about running a business.
“There’s a direct correlation
between the telephone ringing,
getting a new assignment and
actually being able to pay all
of your employees,” Sharoun
quips, adding it was a different
kind of pressure, but a great
learning experience.
“Whatever
opportunity anyone
gave me to learn,”
Sharoun says,
“I took absolute
advantage of that.”
The firm was acquired in
1996 by what was then
Adjusters Canada, which itself
was acquired by Crawford
& Company (Canada) in
1998, to become Crawford
Adjusters Canada. With his
solid experience in commercial
lines, Sharoun was named
Canadian head of major and
complex loss before taking on
duties as Crawford Canada’s
chief operating officer in
2006 and chief executive
officer (CEO) in 2007.
Starting in 2013, he spent
a few years in the United
States — serving first as CEO
of specialty markets, the
Americas and then as CEO of
global technical services, the
Americas — before returning
to Toronto this past January.
Now, he pursues his interests
in major and complex loss
management while also being
involved with consulting
projects across the Americas.
Sharoun never finished
that university degree, opting
instead to concentrate on his
insurance education, training
and designations.
Beyond the internal training
he received at Hartford and
Allstate — “American
companies in those days
trained their own.” — he
obtained his Chartered
Insurance Professional (CIP),
Fellow Chartered Insurance
Professional (FCIP) and
Associate of the Insurance
Institute of Canada designations. Later on came the
Canadian Risk Management,
Fellow Canadian Independent
Adjusters Association, Certified
Fraud Examiner and Fellow
of the Insurance Institute
of Canada designations.
“Whatever opportunity
anyone gave me to learn or
have any formal education,
I took absolute advantage of
that,” Sharoun says. “I also
took every assignment, no
matter whether it was a good
one or a bad one,” believing
“the more exposures I had
to different things, the more
that I would learn,” adds
the recipient of the 2016
Greater Toronto Area Fellow
of Distinction Award from
The CIP Society, the graduate division of the Insurance
Institute of Canada.
Nominated by colleagues,
Profile
Photo: David Chang, courtesy of Crawford & Company
the final selection is based
on industry reputation, leadership ability and a number
of personal qualities, including
core values, mentoring and
volunteering pursuits.
Both honoured and
humbled, Sharoun says, “I
try to contribute each and
every day and I try to make
sure that I do the right
things, and, then, I think
the right things beget some
pretty good outcomes.”
Changing ENVIRONMENT
For those in independent
adjusting, there are certainly
challenges ahead, Sharoun
says. Citing the future of
automobiles, what is going to
happen with driverless cars
and how that may change
“the insurance business and
the claims reaction is obviously
something that’s on the table.”
Whether driverless cars, the
Internet of Things (IoT) or smart
homes, claims adjusters
will need to be ready and to
respond in an informed way.
Consider, for example,
smart homes. “How we deal
with that, how we react to
that and the information it
provides from a claims perspective when a loss happens
is going to be very interesting,” Sharoun suggests.
With the rapid growth in
technology, it will be important to leverage technology,
but take care not to “lose the
people piece,” he says. “At
the end of the day, technology
enables us to have more information and to provide more
options to the policyholder,
but when they’re in their time
of need, they want to speak
to a real, live person.”
Beyond new drivers like
IoT, analytics and artificial
intelligence, though, are
old ones, like the impact of
weather. Improved technology
and communication is helping to understand the nature
and extent of catastrophic
events quickly, Sharoun says.
“The ability to gauge how
bad an event is, how widespread an event is and what
the local resources are versus
what might be required is
something that has come
an awful long way,” he notes.
Having a firm grasp of data
and trends could help to
meet ever-increasing customer demands. “I don’t think
there’s any question that we
have a much more demanding
customer than we ever did,
both in terms of immediacy
and the level of customer
service expectation,” he says.
“Using technology to be
able to not only leverage that
focus, but measure that and
have a path of continuous
improvement, I think, is
something that is very high
on everyone’s mind.”
There are things about the
claims picture today that are
different than when Sharoun
began his career, but some
things remain constant.
One change is having a
global view, perhaps
advanced by industry consolidation. This wider view has
opened up the potential for
companies to communicate,
individuals to advance beyond
their borders and everyone to
share lessons learned.
It is now more “simple to
share ideas and put best
practice into place across the
globe very quickly,” Sharoun
suggests. To his mind,
co-ordination and openness to
new ideas is a positive. From
a leadership perspective, it is
something he strives to foster.
“When I got into the role
of a leader,” Sharoun sought
to “create a very challenging
team environment and create
opportunities for people,
empower them, surround
myself with the best people
I could find and let them do
their thing.” People need to
be in a position to step up.
“Sometimes, a manager
appreciates that you took
on a challenge even if it’s a
loser at the end of the day,”
he says. “I created the opportunity where I was, hopefully,
always at the right place at
the right time.”
11
Function Test
Principal,
Forget Smith Morel
Changes to Ontario’s statutory accident benefits
schedule (SABS) — which take effect for accidents occurring on or after this June 1 — will
make 2016 a memorable year for professionals
dealing with auto claims disputes.
The use of the Glasgow Outcome Scale (GOS)
will address flaws in the use of the Glasgow
Coma Scale (GCS) and should lead to fewer erroneous determinations of catastrophic impairment. However, this is likely to lead to fewer
catastrophic impairment (CAT) determinations
Outcome-based measure
Over time, the courts have become more liberal
in the interpretation of CAT designations, the
result of which has been to produce a broader
range of coverage. As of June 1 in Ontario, the
new narrowing of the CAT definition will assist
in ensuring predictability, as opposed to the variability that is often encountered in the case law.
Among the many changes, in the criteria for
determining catastrophic impairment are the
following: (1) the removal of the Glasgow Coma
Illustration by Scot Ritchie
Marc Smith
The criteria to obtain a
catastrophic impairment
designation, in Ontario, will
be narrower as of June 1,
as the Glasgow Coma Scale
will be replaced with the
Glasgow Outcome Scale.
and is likely to be challenged by some claimants.
On June 1, the mandatory coverage for accident benefits will be reduced considerably, and
the criteria to obtain a CAT designation will
be narrowed. Plaintiffs’ lawyers are alarmed
because the changes may reduce a claimant’s
entitlement and make it more difficult to be
deemed CAT under the SABS. However, this
raises the question of whether or not this is the
catalyst of change that the insurance industry has
long awaited.
BURNS &
PARTNER,
NOT
COMPETITOR
WILCOX
WHOLESALE IS OUR MIDDLE NAME.
Free of retail divisions, ownership or even affiliations,
we never cross the line between wholesaler and
competitor. Your best interests always come first,
keeping the focus on growing your business. Don’t
compromise. Partner with the leader who works with
you instead of against you — Burns & Wilcox Canada.
888.591.9125 | burnsandwilcox.ca
Commercial | Professional | Personal | Wholesale | Binding | Risk Management Services
a legal definition to be met by a claimant
and not a medical test.”
Fewer erroneous designations
Scale (GCS), which is to be replaced by
the Glasgow Outcome Scale (GOS), in
the definition of brain impairment; and
(2) the new mental behaviour criteria.
The GCS has been in use under SABS
for the past 20 years. Not surprisingly, the news of replacing it with the
GOS has sparked a great deal of debate
among the plaintiff and defence bars.
While counsel for claimants tend to
view the GCS as a simple, efficient and
precise tool, counsel for insurers have
criticized it as being an unreliable and
inaccurate measure of the neurological
functions of a claimant.
The flaws with the GCS have been argued by defence lawyers for years, but
the courts continue to place a great deal
of reliance upon it. A striking example
is the Court of Appeal for Ontario ruling, released in 2009, in Liu v. 1226071
Ontario Inc. A pedestrian was struck by a
motor vehicle, and the issue to be ad14 Canadian Underwriter May 2016
dressed was whether the claimant was
catastrophically impaired on the basis of
his GCS.
The accident occurred at approximately 8:15 pm, at which time and after which Mr. Liu’s GCS ratings were: (a)
3/15 at 8:31 pm; (b) 8/15 at 8:43 pm;
(c) 12/15 at 8:55 pm; and (d) 14/15
at 8:57 pm. The trial judge found that
“the GCS was above 9/15 in less than 40
minutes from the time of the accident”
and, accordingly, found that Liu was not
catastrophically impaired.
It was also held that there was evidence of a highly functional individual,
which would not support the finding of
someone being deemed CAT. On appeal,
however, the decision was overturned
based upon the conclusion reached that
the GCS score of 9 or less meant that
there was a catastrophic impairment. In
this regard, Justice Jean MacFarland remarked that catastrophic impairment “is
The GOS is a detailed and focused comparison of a claimant’s functionality prior to and after an accident, as measured
at different stages throughout a claimant’s recovery following the accident.
With this tool, it is expected that there
will be fewer erroneous determinations,
such as in the case of Liu.
Briefly, the GOS is commenced by
obtaining a baseline narrative (pre-accident occupational status, social skills,
activities of daily living, mode of transportation used, and a claimant’s general
condition), which is obtained from the
claimant or family members. The same
inquiry is repeated at three and six
months post-accident.
This approach enables the assessor to
measure whether or not the claimant
has returned to a pre-accident level of
functioning and, based upon that information, attribute an appropriate GOS
rating.
Clearly, an outcome-based measure
that looks at function prior to and following an injury-producing event, as
measured across different stages of a
claimant’s convalescence, must be more
effective than the GCS, which uses eyeopening and verbal and motor responses as measured only within a short period of time after an accident.
Although the GOS will now replace
the GCS, the GOS has still been in use for
more than three decades, and has been
enhanced over the years. Unlike the GCS,
however, the GOS has not been subject to
substantial interpretation by arbitrators
and the courts.
Under the current SABS, GOS is included in Section 3(2)(d)(ii) to determine if
a claimant is catastrophically impaired,
such that a score of “2” (vegetative) or
“3” (severe disability) must be assigned
following a test that has been administered more than six months following
the accident by someone trained to do so.
A thorough and well-reasoned consideration of the validity of the GOS
is found in the 2015 decision, Wat-
ters v. State Farm Mutual Automobile Insurance
Company, issued by an arbitrator with
the Financial Services Commission of
Ontario (FSCO). There, a pedestrian
was struck by a vehicle, and the issue
to be determined was whether Watters
had sustained a catastrophic impairment, pursuant to section 3(2)(d)(ii)
of SABS.
Given that this was the first decision
to rely upon the GOS, as opposed to
GCS, arbitrator Richard Feldman reviewed the history of the tool, placing
reliance on a scholarly paper titled Assessment of Outcome After Severe Brain Damage
— A Practical Scale by Dr. Bryan Jennett
(neurosurgeon) and Dr. Michael Bond
(physiatrist).
It was recognized that the goal of
GOS “is to accurately reflect a braininjured person’s level of function in the
real world.” To achieve this objective,
the creators of the GOS have specified
that conducting a “structured interview provides a standardized methodology for gathering the necessary
information and for converting that
information into a GOS score.” In the
result, Feldman preferred the evidence
of the claimant’s physiatrist due to her
undertaking of the GOS assessment, as
opposed to that of the defence’s neurologist who “only administered a minimental status test.”
In sum, utilizing the GOS method of
determining a claimant’s catastrophic
impairment will substantially reduce
erroneous designations of catastrophic
impairment that are likely to have otherwise resulted from employment of
the GCS. This, in turn, has the potential
to avoid findings which are in no way
reflective of neurological functioning in
the “real world.”
One marked impairment
no longer sufficient
Another example where the courts are
seen to expand upon the CAT definition is the Court of Appeal for Ontario
decision, released in 2012, in Pastore v.
Aviva Canada Inc. This case involved a pedestrian who was struck by a vehicle
while crossing the road. Pastore was as-
sessed at a designated assessment centre (DAC) under Section 2(1.1.)(g) of
SABS, which, at the time, stipulated the
following: “subject to subsections (2)
and (3), an impairment that, in accordance with the American Medical Association’s Guides to the Evaluation of Permanent
Impairment, 4th edition, 1993, results in a
class 4 impairment (marked impairment) or class 5 impairment (extreme
impairment) due to mental or behavioural disorder.”
The DAC concluded that Pastore was
catastrophically impaired, as she had
one class 4 impairment (marked) in
the activities of daily living category,
“An outcome-based
measure that looks at
function prior to
and following an
injury-producing event,
as measured across
different stages of a
claimant’s convalescence,
must be more effective
than the GCS, which uses
eye-opening and verbal
and motor responses
as measured only within
a short period of time
after an accident.”
with the balance of the assessment falling into the class 3 impairment (moderate).
The insurer challenged the determination, arguing that a finding of one
marked impairment ought to be insufficient to qualify Pastore as being
deemed catastrophically impaired. The
Court of Appeal for Ontario disagreed
and upheld the director’s delegate decision as reasonable, holding that “one
function at the marked impairment
level was sufficient for qualification of
catastrophic impairment.”
In light of this decision, more and
more claimants found themselves
deemed CAT, based upon a finding of
one marked impairment in their functioning. Now, however, given the introduction of the changes that take effect
June 1, there is likely to be a “marked”
reduction in the number of CAT determinations.
The Ontario legislature has now clarified the requirements for assigning a
CAT designation under the functional,
mental, and behavioural disorders categories. The new section 3.1(1)(8) will
read as follows:
Subject to subsections (3) and (5), an impairment that, in accordance with the American Medical Association’s Guides to the Evaluation
of Permanent Impairment, 4th edition,
1993 results in a class 4 impairment (marked
impairment) in three or more areas of function
that precludes useful functioning or a class 5 impairment (extreme impairment) in one or more
areas of function that precludes useful functioning,
due to mental or behavioural disorder.”
Therefore, as of June 1, future findings of catastrophic impairment for
mental or behavioural disorders will require a marked impairment in three of
four aspects of function, or otherwise
an extreme impairment in one aspect,
where the individual must be precluded
from useful functioning.
The path forward now appears to be
clear when it comes to assessing CAT
determinations. However, as has been
with past amendments, clarity does not
necessarily mean certainty.
It is expected that this amendment
will be challenged and/or will receive
much scrutiny as it is dealt with in hearings and appeal courts.
SABS disputes are now being heard
by the Licence Appeal Tribunal and, as
has been well-publicized, the Tribunal’s
mandate is to resolve claims within
extremely tight timelines (six months
from beginning to end). This, coupled
with the implementation of the new
CAT definitions, as well as others being
introduced on June 1, 2016, leads to a
prediction of a certain period of adjustment, and perhaps upheaval, for everyone within this system.
May 2016 Canadian Underwriter 15
LAT
Have Mercy
Willie
Handler
Consultant,
Willie Handler &
Associates
As of April 1, the Financial
Services Commission of
Ontario stopped accepting
applications for mediation
and arbitration of auto
accident benefits insurance
claims disputes. That
responsibility now rests with
the Licence Appeal Tribunal.
On April 1, Ontario’s Licence Appeal Tribunal’s
(LAT) Automobile Accident Benefits Service
(AABS) was officially open for business. After
26 years, the Financial Services Commission
of Ontario (FSCO)’s Dispute Resolution Group
stopped accepting new applications.
The transfer of responsibility has created considerable apprehension among its users. FSCO
was flooded with new applications in the weeks
leading up to April 1. For many, it is a matter
of “better the devil you know.” What will this
change mean for stakeholders? Will it really be
different?
How did ontario get here?
The establishment of the AABS at LAT brings
to a conclusion a process that began with the
appointment of Justice Douglas Cunningham
in August 2013. Justice Cunningham was asked
to review the auto insurance dispute resolution system. He was asked to make recommendations to the government to address a
significant backlog, in disputed auto insurance
claims pending mediation and arbitration, that
existed at the time — and to propose system
improvements. His report — delivered in February 2014 — included 28 recommendations.
As a result, Bill 15 — the Fighting Fraud and Reducing Automobile Insurance Rates Act — included a provision transferring responsibility for resolving
disputes over statutory accident benefits from
FSCO to LAT. Regulation changes filed by the
government on March 7, 2016 — which came
into effect April 1 — was the final step in implementing the new dispute resolution system.
What are the changes?
• the only dispute resolution process available
to parties is an arbitration through LAT;
• mandatory mediation is no longer part of the
Broker-Centric Services,
for all your needs
Crawford has extensive experience managing all aspects of the claims cycle. We provide
integrated and customized solutions to brokers and their clients. Centered on superior
24-hour service, we adhere to key metrics using advanced user-friendly technologies
for all claims and data management needs.
We achieve higher client satisfaction and retention levels by establishing and implementing
effective insurance programs anywhere in the world, regardless of size and scale.
For more information on any of our services, contact us at [email protected].
Let Crawford help you
build partnerships that last.
Independent
Adjusting
Data
Analytics
Third Party
Administration
24-Hour
Contact Centre
www.crawfordandcompany.ca
Crawford-Broker-Services.indd 1
4/29/2016 4:41:03 PM
If the Licence Appeal Tribunal is reluctant to dismiss these
applications, then the gatekeeper function, envisioned by
Justice Douglas Cunningham, will not be put into practice.
dispute resolution process;
• no court action can be commenced
for statutory accident benefits disputes,
even where there is a companion tort
action;
• there is no right of appeal, other than
a reconsideration option with the
executive chair of the Safety, Licensing Appeals and Standards Tribunals
of Ontario (SLASTO) for exceptional
circumstances and the Divisional Court
on a question of law;
• a total of 22 new full-time and parttime LAT adjudicators have been
appointed to date. Auto insurance
stakeholders will be interacting with
a largely unknown group of adjudicators as only three have had experience resolving disputes at FSCO; and
• LAT is committed to resolving most
(90%) of disputes within six months.
What happens to FSCO?
Applications for mediation, neutral
evaluation and arbitration have not been
accepted since March 31, 2016. A mediation, arbitration, court proceeding,
appeal, variation or revocation that was
commenced before April 1 may be continued at FSCO after that date. If a mediation fails before April 1, an application
for arbitration can only be made to LAT
on or after April 1.
Applications to the Director of Arbitrations — for appeals, variation or revocation — may only be made where the
application for arbitration was received
by FSCO before April 1.
How does LAT work?
Since there is no longer mandatory
mediation, an applicant will be able to
apply for arbitration following the denial or termination of statutory accident
benefits. The applicant (an insured or
insurer) files an application for arbitration with LAT. The other party files a
response.
It is intended that all procedural issues, lack of production or failures to
attend insurer examinations are to be
dealt with up-front by the registrar.
LAT may dismiss an application without a hearing if:
• the claim is an abuse of process;
• the matter is outside the tribunal’s jurisdiction;
• the statutory requirements for bringing the application have not been
met; or
• the party filing the application has
abandoned the process.
This is a significant departure from
the FSCO process, which included preliminary hearings. However, if LAT is
reluctant to dismiss these applications,
then the gatekeeper function, envisioned by Justice Cunningham, will not
be put into practice.
The first step in the arbitration process is a case conference. This is the
settlement meeting described in Justice Cunningham’s report. It must take
place within 45 days of the date LAT
receives an application.
The case conference is analogous
to a FSCO pre-arbitration meeting
except most will take place over the
phone instead of in person. Prior to
the case conference, the parties are
required to outline the documents
to be used at a hearing, any produc-
tion issues, the preference for the
type of hearing (written, video/
telephone or in-person), a list of
witnesses and details of the most recent settlement offer.
Should the dispute not be resolved at
a case conference, then a hearing will
take place within 60 days. The type of
hearing will be decided by the adjudicator at the case conference. Decisions will be issued within 30 days for
written hearings, within 45 days for
video/telephone hearings and 60 to 90
days for in-person hearings.
Lingering concerns
There is no LAT appeal process other
than the possibility of a reconsideration by the executive chair of SLASTO if
there is a clear error that was made by
the adjudicator. Appeals based on merit
are not available. A party can apply for
judicial review where there is a question of law.
Is this a significant departure from
the FSCO process? The simple answer is
yes. But how much different can only
be determined over time. The forms and
practice rules are simpler.
In an attempt to create a different
culture, very few FSCO arbitrators have
been appointed to LAT. Some see this
as a good thing while others are concerned. But it does add an element of
uncertainty for an initial period.
There are other elements of the
new process to be concerned about.
Justice Cunningham recommended the
0creation of statutory timelines and
sanctions regarding settlement meetings (case conferences), arbitration
hearings and the release of arbitration process as the first step in the new dis- Cunningham has been the culture surdecisions. He apparently felt that there pute resolution process. It does not ap- rounding the previous system. LAT has
needs to be strict adherence to timelines pear that all companies have established made a considerable effort to create a
and that creating statutory obligations an internal review process.
new culture. However, the new adjuwas the most effective way of accomdicators will be dealing with the same
Conclusion
plishing this.
clientele and will need to interpret the
However, no statutory timelines have A lot of time and effort has gone into same complex and frustrating statutory
been created and, instead, LAT will creating the AABS at LAT to replace accident benefits. It will take some time
manage timeline requirements. This is FSCO’s dispute resolution process. One to determine how much different the
essentially how things existed at FSCO. of the problems identified by Justice new system is.
What will happen if the parties are not
ready for a quick hearing? Will adjournments become common occurrences?
Stakeholders will be waiting to see if
Surprised? ARC isn’t.
Surp
the promised timelines will be met or
erode over time.
Your customer has a list of the vehicles that
In response to criticism of FSCO pracare covered by your fleet policy. You have
tices in conducting mediations, Justice
a list of the vehicles that are covered by
ARC Group Canada
Cunningham recommended that settleARC Group Canada is a national
that policy.
network of independ
network
of
independent
law
firms,
ment meetings be conducted in person
each intimately
And your lists aren’t
theintimately
same.
each
connected to
their
or by video conferencing. He rejected
their local market.
telephone meetings. LAT, however, will
Insurance and risk
When the one vehicle that is involved in
experts. Regio
predominantly be conducting case conInsurance
risk appear
management
an accident is the
one thatand
doesn’t
on
Na
experts.
Regionalnext?
strength.
both lists, do you know
what happens
ferences over the phone. Considering
That
is
th
National
scope.
that FSCO pre-arbitration meetings are
ARC does.
in-person, this is really a step backGo to As
That is the ARC Group.
wards.
Go to AskARC.com
Justice Cunningham wanted hearings
to follow three streams: paper reviews,
expedited in-person hearings and full
in-person hearings. He recommended
criteria be adopted to determine under
which stream a case falls. Those criteria have not been adopted. Instead, the
LAT adjudicator will exercise his or her
discretion to determine the format of a
hearing.
At FSCO, similar discretion existed but
all hearings were inperson. Although
ARC Group Canada is a national network of independent law firms,
each intimately connected to their local market.
LAT has suggested that many hearing
Insurance and risk management experts. Regional strength.
will be paper reviews, will stakeholders
National scope. Go to AskARC.com
pressure adjudicators to provide more
in-person hearings?
A number of other recommendations
by Justice Cunningham seemed to have
The ARC Legal Reporter
been abandoned. The settlement of fuWinter Issue – Article #1
A National Network of Independent Law Firms
ture medical and rehabilitation benefits
were to have been prohibited until two
When is a medical examination considered a second examination
years after the date of the accident. The
under Rule 36 of the New Brunswick Rules of Court?
Statutory Accident Benefits Schedule
The ARC Legal Reporter
(SABS) has not been amended and setv. Crowther and Kelly
Case:
Winter IssueReported
– Article
#1 Blyth
2009 NBCA 80
Citation:
tlements will still be permitted one year
When both the plaintiff’s physical and mental condition are in issue in an action, an
At Issue:
A National
Network
of Independent
Law Firms
after the
accident.
In addition,
every
inthe plaintiff undergoes a physical examination, will a subsequent application for
psychiatric examination be considered an application for a second medic
surer was to establish an internal review
examination?
When is a medical examination considered a second examination Should medical examinations that are ordered as part of the discovery process b
characterized as ‘independent’ medical examinations?
under Rule 36 of the New Brunswick Rules of The
Court?
Court of Appeal of New Brunswick
Court:
If you’re in
Manitoba, this is
considered an
automobile.
ARC_Fleet ad_1/2 page.indd 1
Reported Case:
Citation:
At Issue:
Judgment Rendered:
Factual Summary:
If y
Manitoba
consid
auto
October 13, 2009 (Reasons delivered November 2015-02-14
26, 2009)
1:05 PM
The plaintiff suffered injuries in a motor vehicle accident and commenced an actio
seeking damages. Both the plaintiff’s physical state and mental state were in issue
the action. The plaintiff submitted to a physical examination by the defendant’s exper
but subsequently refused to submit to a psychiatric examination.
Blyth v. Crowther and Kelly
2009 NBCA 80
When both the plaintiff’s physical and mental condition are in issue in an action, and
Insurance Bureau of
Canada’s 20th Annual
Financial Affairs
Symposium
Toronto
Bottom Line
Greg
Meckbach
Associate Editor
Insurance Bureau of Canada
held its 20th Annual
Financial Affairs Symposium
April 13 in Toronto.
Speakers discussed the risk,
to insurers’ balance sheets,
of earthquake, as well as the
progress on a new capital
guideline for mortgage
insurers and efforts by
authorities to address base
erosion and profit shifting.
Geological hazard
The financial risk from an earthquake in
Québec is “a lot bigger than maybe people think,”
Claudette Cantin, senior vice president, chief
actuary and chief risk officer of Munich Re
Canada, suggested during Insurance Bureau of
Canada’s Financial Affairs Symposium.
“We need to create more awareness” on earthquake risk in Québec, Cantin told attendees, in
reply to a question on whether or not any risks are
under-reinsured. “The pick-up rate on earth-
quake in Québec is very small. It is small from
our own modelling perspective. I think we have
a different view from the market and what the
exposure in Québec is, and it’s a lot bigger than
maybe people think and I think that this market
is really underinsured,” she reported.
Cantin was on a panel titled P&C Insurance
Perspectives on Reinsurance, the moderator of which
was Jonathan Turner, senior vice president and
chief financial officer of Swiss Reinsurance
Company Ltd.’s Canadian operations. Turner
asked panelists how companies view risk in the
reinsurance relationship and how important
risk reduction, stress testing and managing
earnings are.
“If I look at Economical, I think historically
our focus was predominantly solvency-type aspects, so if you have the ‘big one’ and certainly
we have a [British Columbia] presence, what do
we look like after that?” said Philip Mather, senior vice president and chief financial officer for
Waterloo, Ontario-based Economical Insurance.
“How does the reinsurance kick in?” after
an earthquake on the west coast, Mather asked.
“What does it do to the balance sheet and the
capital position after? That can change with a
company’s appetite, that can change with a company’s strategy.”
AMFU
Peace of mind coverage,
day and night.
At A.M. Fredericks Underwriting Management Ltd., we believe that experience
makes all the difference. That is why you can count on us to provide peace of
mind coverage for all your clients’ needs.
As one of Canada’s leading federally licensed Managing General Underwriters,
our national expertise in niche and non-standard commercial liability, professional
liability and property risks is second to none.
Visit us at www.amfredericks.com to learn more!
AMFUM_FP_8.125 x 10.75.indd 1
15-03-04 12:10 PM
APPOINTMENT
Karen Mak
B.Sc (Hons), FCIP, CRM
Jeff Somerville, President of Strategic
Underwriting Managers Inc. (SUM
Insurance) is pleased to announce
that Karen Mak B. Sc. (Hons), FCIP,
CRM has joined the company as
Senior Underwriter, Toronto.
Prior to joining SUM Insurances’
growing Umbrella and Excess practice, Karen developed extensive experience while working over 15 years in
commercial lines insurance, starting
at a prominent national insurer before
moving to an international carriers’
Umbrella Liability Department.
She holds an Honours B. Sc. Degree
from the University of Toronto, is a
Certified Risk Manager and Fellow
Chartered Insurance Professional.
SUM Insurance is an independent and
100% Canadian Managing General
Agent. Serving Canada coast to coast
with offices in Toronto and Montreal,
SUM Insurance works collaboratively
with first class insurers and reinsurers to design, underwrite and deliver
commercial insurance products to its
customers - insurance brokers. For
information about SUM Insurance
please see www.suminsurance.ca.
In October 2013, IBC released a report it commissioned to AIR Worldwide, Study of Impact and the Insurance and
Economic Cost of a Major Earthquake in British
Columbia and Ontario/Quebec. AIR essentially predicts damages from two possible
earthquakes.
One — the Eastern Charlevoix Crustal
Scenario — is 7.1 on the Richter
scale and occurs under the St. Lawrence River northeast of Québec City.
Total direct losses were forecast at
$49.2 billion. The other hypothetical earthquake — at 9.0 on the Richter scale off the west coast of Canada
— could cause $60 billion in direct
economic losses to properties and
$1.89 billion in direct economic
losses to infrastructure in British
Columbia, AIR notes.
“I think, as a country, we could also
be underinsured on west coast quake,
purely on the face of deductibles,” said
the panel’s third speaker, David Sloan,
president and chief executive officer of
Aon Benfield Canada. “The economic
impact of that, I think, is not fully understood and the personal impact could
and will likely be enormous.”
Capital standard
An international capital standard for
global systemically important insurers
is “probably not going to have much
of an impact” on the Canadian property and casualty insurance industry,
Mark Zelmer — deputy superintendent,
regulation sector for the Office of the
Superintendent of Financial Institutions
(OSFI) — said at Insurance Bureau of
The International Association of Insurance Supervisors (IAIS) “has been
busy introducing a capital standard for
insurance companies and my colleagues
at OSFI have certainly been very actively engaged in that work,” Zelmer said
during a presentation, A Regulatory ‘Walk
Down Memory Lane.’ He was alluding to
the International Capital Standard (ICS),
which IAIS notes is part of a project to
develop risk-based group-wide capital
requirements for global systemically
important insurers.
“There is no question we will see the
emergence of a new international capital standard,” Zelmer predicted. “Like its
banking counterpart, it will be very much
focussed on internationally active insurance companies, whether they are life
companies, p&c companies, you name it.”
With ICS, IAIS “aims to create a level
playing field in terms of capital requirements for global insurance companies,”
IBC president and chief executive
officer Don Forgeron said during a
separate presentation — Financial
Regulation in an Era of Constant Change.
The ICS is one development in global
regulation “that will likely affect the
Canadian p&c insurance industry,”
Forgeron told attendees.
Profit shifting
Efforts by the Canadian government and
the Organisation for Economic Co-operation and Development (OCED), to
“crack down on multinational corporations that minimize their taxes by operating in many jurisdictions and moving
money among them,” is one development that will likely affect Canadian
p&c insurers, suggested Don Forgerson,
president and chief executive officer of
Insurance Bureau of Canada, during
IBC’s Financial Affairs Symposium.
Forgeron alluded to a section in the
federal government’s budget document
for the 2016-2017 fiscal year — released
March 22 — that refers to base erosion
and profit shifting (BEPS). The ruling
Liberals report that Canada “is participating in international work to develop a
multilateral instrument to streamline the
implementation of treaty-related BEPS
recommendations, including addressing
treaty abuse.”
The “overall aim” of OECD “is to close
gaps in international tax rules that allow
multinational enterprises to shift profits
to low-tax jurisdictions,” Forgeron suggested at the symposium. “The OECD
and the G20 are currently working
on a multinational framework to prevent this practice and we know Canada
intends to participate as last month’s
federal budget clearly indicates,” Forgeron added. “Because it will involve
rules on the re-characterization of
capital, it’s an initiative that the insurance industry needs to watch closely.”
choice for buyers
Speakers at Insurance Bureau of Canada’s Financial Affairs Symposium were
asked what effect they think industry
consolidation, in global reinsurance, is
having on cedents and brokers.
“I think, a little surprisingly, to date
there has been very little impact from
the (mergers and acquisitions) and overall consolidation,” David Sloan, president and chief executive officer of Aon
Benfield Canada, said during a panel.
The question was posed by the moderator, Jonathan Turner, senior vice president and chief financial officer of Swiss
Reinsurance Company Ltd.’s Canadian
operations.
“In the last two or three years there
actually has been quite a lot of activity,
varying in type and scale, but I think
the real impact has been minimal,”
Sloan said. “The market remains fairly
fragmented, there is lots of new different forms of capital, which has creating
the diversity in it, so it still provides an
awful lot of choice for buyers.”
guidance for directors
Officials with Canada’s Office of the
Superintendent of Financial Institutions (OSFI) are working on a “wide
range of amendments” to OSFI’s
guidelines for corporate boards of
directors, as well as a new capital
guideline for private mortgage insurers, reported Mark Zelmer, deputy
superintendent, regulation sector for
OSFI, during Insurance Bureau of
“We are in the process of reviewing the requirements that we impose
on boards of directors across all of our
guidance .... to make sure that it is properly aligned with corporate governance
guidelines,” said Zelmer. “This is going
to result, down the road, in a wide
range of amendments to our guidance
to make sure that everything is aligned
with the corporate governance guideline and you will hear more information from my colleagues later this year.”
Zelmer made his remarks during a
presentation titled A Regulatory ‘Walk Down
Memory Lane.’
“When it comes to capital requirements we are going to have to do something different for mortgage insurers,”
Zelmer told attendees. “While we have
typically used the (property and casualty) capital framework for both p&c
companies and mortgage insurers, we
are learning that we are going to have
to .... have a different framework for
mortgage insurers as opposed to p&c
companies given the very different risks
that mortgage insurers face and how
they play relative to a typical p&c company. So we are working on a new capital
guideline for private mortgage insurers
which you will see out for public consultation in the near future.”
Take your
Leadership Defined.
Leadership skills
to new heights
The Fellow Chartered Insurance Professional (FCIP) designation
gives you the strategic skills and insights to become an effective
leader in any role within your organization.
FCIP graduates confirm that they have directly benefited from
the broad perspective they gained from the FCIP program’s
comprehensive business education with a p&c focus.
Are you ready to become an industry leader? Take our short FCIP
self-assessment quiz and hear FCIP grads talk about the program at:
www.insuranceinstitute.ca/fcip
1-866-362-8585
Single
Recovery
In its ruling in Basandra v. Sforza, the Court of Appeal for Ontario
upheld the decision of a trial judge who reduced a jury’s award,
from $105,000 to nil, for past and future attendant care,
medical/rehabilitation and housekeeping costs. The decision was
made to ensure the plaintiff did not recover from the same losses
both from no-fault accident benefits and from a tort award.
Matthew Owen
Associate,
Zarek Taylor Grossman
Hanrahan LLP
In a ruling released April 6, the Court of Appeal for Ontario emphasized that in judgments
in lawsuits arising from injuries sustained in
motor vehicle collisions, plaintiffs are entitled to
be fully compensated for their losses, but not to
double recovery.
In Basandra v. Sforza, the Court of Appeal considered the deductibility of accident benefits
payments in tort pursuant to section 267.8 of
Ontario’s Insurance Act. This is good news for the
insurance industry.
Readers may recall a 2013 decision, by
Ontario’s Superior Court of Justice, in Mikolic v.
Tanguay and Albano. In that case, Justice Harrison
Arrell refused to deduct anything from awards
for future loss of income or future care costs.
The underlying settlement disclosure notice
described lump sum payments for “all past and
future income replacement benefits” and “all
past and future” medical, rehabilitation and attendant care benefits. However, that notice did
not provide a breakdown as to what proportions
were for past and future benefits, respectively.
In arriving at this conclusion, Justice Arrell
relied heavily on a statement made by Justice
George Finlayson, of the Court of Appeal, in Bannon et al. v. McNeely, released in 1998.
Separate apples from oranges
In Bannon, Justice Finlayson wrote:
“I believe that, where possible, any no-fault benefit deducted
from a tort award under [Insurance Act] s. 267(1)(a)
must be deducted from a head of damage or type of loss akin to
that for which the no-fault benefits were intended to compensate. In other words, and employing the comparison of Morden
J. in Cox, supra, if at all possible, apples should be deducted
from apples, and oranges from oranges.”
In Mikolic, Justice Arrell essentially found that
past benefits were apples and future benefits
were oranges.
As such, precise evidence was required as to
what proportion of each benefit was intended
for past and future benefits to make the appropriate deductions in tort.
In 2013, the Mikolic decision caused some
consternation among the defence bar, particularly where the mandated settlement disclosure
notice used in the accident benefits realm does
not obligate the parties to distinguish between
past and future benefits. Instead, it lumps them
together.
In April, Justice Peter Lauwers, writing for the
unanimous three-judge panel in Basandra, threw
some cold water on the Mikolic approach.
In the underlying trial, the jury made the fol-
lowing relevant awards of damages:
1.$55,000 for “past care, medical/rehabilitation and housekeeping;” and
2.$50,000 for “future care, medical/
rehabilitation and housekeeping.”
AVOID DOUBLE RECOVERY
The evidence at trial in Basandra showed
that, in respect of his accident benefit claim, the plaintiff had received
$81,658.67 for medical rehabilitation
benefits, $58,271.76 for attendant care
benefits, and $6,939.84 for housekeeping benefits, which included a 2009
lump sum settlement of all past and future no-fault benefits. As such, while it
was clear that the plaintiff had received
more in accident benefits than the jury
had awarded in tort for these heads of
damages, it was not possible to distinguish between past and future entitlements in accident benefits, nor between
care, medical expenses and housekeeping in the jury’s awards.
The trial judge, Justice Wendy Matheson, was faced with having to determine
whether or not it was appropriate to
deduct the accident benefits, totaling
$146,870.27, from the $105,000 that
the jury had awarded for those heads of
damages.
Justice Matheson recognized the dual
objectives of avoiding double compensation on the one hand, and fairness to
the plaintiff in receiving full compensation by ensuring only like amounts are
deducted on the other hand.
So Justice Matheson ultimately determined that the entire jury award — for
those heads of damages — ought to
be reduced to nil in order to avoid the
plaintiff recovering a complete double
recovery.
Justice Lauwers, writing for the
Court of Appeal, agreed with this approach, despite the lack of distinction
between the relative proportions that
were intended to be for past and future
benefits on the accident benefits side,
and the lack of distinction between attendant care, medical/rehabilitation
and housekeeping in the jury’s award
on the tort side.
Justice Lauwers began his analysis
by reiterating that the Ontario scheme
of compensation for motor vehicle accident victims involves an exchange
of rights “wherein the accident victim
loses the right to sue unless coming
within statutory exemptions, but receives more generous first-party benefits, regardless of fault, from his or
her own insurer.” Once the plaintiff’s
injuries meet threshold, Justice Lauwers observed, the plaintiff can receive no-fault benefits and maintain
an action in tort subject to the principle of recovery recognized by Justice
Matheson: that the person be fully compensated for their loss, but for no more.
“While it was clear that the
plaintiff had received more
in accident benefits than
the jury had awarded in tort
for these heads of damages,
it was not possible to
distinguish between past
and future entitlements
in accident benefits, nor
between care, medical
expenses and housekeeping
in the jury’s awards.”
The purpose of section 267.8 of Ontario’s Insurance Act, was, of course, to prevent double recovery, which amounts to
unjust enrichment.
LACK OF DISTINCTION
Justice Lauwers also reiterated the importance of ensuring that the relevant
jury questions, agreed upon by counsel
and accepted by the trial judge, distinguish between past and future amounts
in order to meet the statutory scheme
in a way that permits the trial judge to
make the appropriate deductions.
The reason for this necessary distinction is two-fold. First, the burden of
proof for past awards, being on a balance of probabilities, is stricter than
that for future awards, being on a
“substantial possibility based on such
expert or cogent evidence,” and that
pre-judgment interest is only granted
for past losses. Second, section 267.8 of
Ontario’s Insurance Act distinguishes between entitlements for past and future
collateral benefits.
Yet in this case, the jury questions did
not reflect the statutory scheme in that
they did not distinguish between the
various heads of damages. Despite this
inadequacy, the appeal judges accepted
that the trial judge was reasonably assured that the plaintiff had been fully
compensated for each head of damage
by comparing the relative quantum of
accident benefits received against the
jury’s award. In doing so, she gave effect
to the policy objective of full compensation, while respecting the competing
objective of avoiding overcompensation, and committed no error.
Best practices might suggest that it
would be helpful for an accident benefits carrier to delineate, in the statutory
disclosure notice (SDN), what is being
paid for past benefits and what is being
paid for future benefits, even where the
SDN does not require such a breakdown.
However, the reality remains that if an
accident benefit settlement happens at a
point other than the first day of trial,
there will still be an evidentiary debate
over which of the future benefits have
been consumed before trial. As such,
there will almost never be exactitude in
determining the amounts of past and
future accident benefits to which the
tortfeasor is entitled to a credit.
In Basandra v. Sforza, the Court of Appeal
for Ontario softens the lens through
which these claims are to be viewed
from that which the Court of Appeal
articulated 18 years earlier in Bannon v
McNeely. An apples-to-apples comparison is still called for when looking at
what collateral benefits are deductible
in tort. However, when one looks at
the purpose of the Ontario automobile insurance scheme — that claimants receive full compensation for
their injuries — but nothing more,
it has been made clear that an exacting analysis of what type of apple was
received by way of collateral benefits is
not required to allow for the deduction
in tort.
Tired of Losses
Driver distraction and fatigue are believed to be the root causes
of many large auto losses. Even when drivers have their eyes
on the road, the mere act of talking on a hands-free wireless
device can adversely affect both field of vision and the ability
to concentrate on the task of driving, one risk management
expert cautions. While hours of service regulations stipulate
the amount of rest that commercial drivers must have, one
sleep expert warns that sleeping at the right time is just as
important as getting the right amount of sleep.
GREG MECKBACH
D
river fatigue and distraction are major
sources of commercial auto losses, insurance professionals report, and one expert
contends that authorities need to provide more guidance on random drug and
alcohol testing of employees. While texting and driving is getting a lot of attention,
one commercial auto expert suggests that it is also dangerous for drivers to use
hands-free devices because people are not good at multi-tasking.
“When we take a look at our losses and the leading frequencies and severities,
many times the indication from the claims notes is people were looking at their
cellphone, GPS or texting,” reports Rob Beneze, risk control consulting director,
commercial auto for CNA Financial Corporation. “In that regard, distracted driving
is a major focus for us when we look at losses from commercial auto.”
In addition, impairment from drugs and alcohol also contributes to losses,
Beneze adds.
In Canada, “what we do tend to see is driver fatigue, or driver error in terms of
being on the phone, reaching for their lunch and rolling the vehicle,” notes Ken
Parsons, assistant vice president, commercial auto underwriting at CNA Canada.
“The losses we have seen coming from either fatigue or distraction have been
multi-million dollar losses.”
In the United States, 26% of auto crashes involve cellphone use, Beneze reports,
quoting from the Itasca, Illinois-based National Safety Council.
“There are many other forms of distracted driving, but that has been getting
most of our attention in helping to control that factor in commercial losses.”
In British Columbia, in 2014 alone, “66 people were killed and 631 were
seriously injured in crashes with distracted or inattentive driving as a contributing
factor,” a spokesperson for the province’s Ministry of Public Safety writes in an
email to Canadian Underwriter.
The problem is being studied by experts with Virginia Tech Transportation Institute
(VTTI), part of Blacksburg-based Virginia Polytechnic Institute and State University.
“Estimates based on cellphone records indicate that cellphone use among all
drivers increases the risk of a crash by a factor of four,” VTTI researchers report in
an article published in the New England Journal of Medicine.
COVER STORY
Tired of Losses
“Distracted driving has been defined as
the diversion of attention away from activities critical for safe driving toward a
competing activity,” the authors note in
the article, Distracted Driving and Risk of Road
Crashes among Novice and Experienced Drivers.
The authors were: VTTI director
Thomas Dingus; three other VTTI academics (Sheila Klauer, Feng Guo and
Suzanne Lee) and two researchers (Bruce
Simons-Morton and Marie Claude
Ouimet) from the Bethesda, Marylandbased Eunice Kennedy Shriver National
Institute of Child Health and Human
Development (NICHD), part of the
U.S. Department of Health and Human
Services. “Our analysis showed that the
performance of secondary tasks, including dialing or reaching for a cellphone,
texting, reaching for an object other
than a cellphone, looking at a roadside
object, and eating, was associated with a
significantly increased risk of a crash or
near-crash among novice drivers,” the
authors report. “Among experienced
drivers, only dialing a cellphone was
associated with an increased risk; data
on secondary tasks performed by experienced drivers were collected before the widespread use of texting. The
secondary tasks associated with the risk
of a crash or near-crash all required
the driver to look away from the road
ahead,” they add.
Other organizations studying distracted driving include the Liberty Mutual
Research Institute. In a paper in The
Journal of the Human Factors and Ergonomics
Society, three authors discuss the results
of a study in which participants were
given text-reading tasks while driving
on a test track.
“One of the worst potential distractors is reading text information while
driving, as it imposes both visual and
cognitive interference to driving,”
write Yulan Liang, William J Horrey
and Joshua Hoffman in the paper,
Reading Text While Driving: Understanding
Drivers’ Strategic and Tactical Adaptation
to Distraction.
Liang is a research scientist with
Liberty Mutual Research Institute,
Horrey is a senior research scientist at
Liberty Mutual Research Institute and
Hoffman is manager of enterprise user
experience at Deere & Company, which
makes farming, construction and forestry vehicles under the John Deere brand.
“We used a text-reading task as distraction to examine whether the
type and timing of driving demands,
and the formatting of text, influence
drivers’ strategic decision-making and
“Hands-free is not
risk-free. From a
distracted driving point
of view, it is not the fact
that you are holding
the device in your hand
that’s the problem. It’s
having the conversation
and how that impacts
people’s brains,”
contends Rick Geller of
Marsh Risk Consulting.
tactical time-sharing in a situation in
which drivers are fully aware of workload levels and transitions,” the authors
write in the Journal of the Human Factors
and Ergonomics Society. In their study, they
“hypothesized that drivers would
choose the area with relatively low driving demands to initiate text reading.”
However, most participants in that
study “initiated the secondary task be-
fore they had passed the demand zone
even though they would have had
enough time to complete.”
CLOSE CALLS
Other research — conducted in conjunction with VTTI — shows that a
driver’s crash or “near crash” rate
“nearly tripled when reaching for, answering or dialing a cellphone,” reports
the Insurance Institute for Highway
Safety (IIHS) of Arlington, Virginia.
In an experiment, VTTI researchers
“coded a near-crash event when drivers braked hard or made a sudden evasive manoeuvre to avoid a conflict,”
IIHS reports.
“Distracted driving is a huge issue right now,” contends Rick Geller,
Toronto-based vice president and
transportation industry leader at Marsh
Risk Consulting. “When we are talking distracted driving, we tend to
focus in on smartphones and cellphones and hands-free, those kinds of
issues. But really, when you are talking
distracted driving, anything that takes
your eyes off the road for more than
about two seconds falls into that category of causing a distraction. Things
like eating, shuffling paper, looking at
GPS screens,” Geller explains.
What is worse is that operators who
use hands-free devices to talk on their
mobile phones are not necessarily giving their full attention to the road, and
Geller suggests that insurance providers
“need to raise awareness” of this fact.
“When you are talking on the phone,
whether it’s hands-free or actually
holding the device, your ability to process moving images decreases by about
a third, and your field of view narrows
by about 50%,” Geller warns. “Handsfree is not risk-free. From a distracted
driving point of view, it is not the fact
that you are holding the device in your
hand that’s the problem. It’s having
the conversation and how that impacts
people’s brains,” he points out.
When multi-tasking, people’s brains
need to “toggle” between the functions they are trying to perform,
Geller explains. To illustrate that point,
DRIVE
YOUR BUSINESS
FURTHER
HAGERTY KNOWS HOW IMPORTANT EFFICIENCY IS TO YOUR BUSINESS.
We work to create better options for brokers, like our improved online portal
and vehicle valuation tools, with no appraisals required. Hagerty’s commitment
continues with our streamlined online quoting, Agreed Value 19A coverage
and resourceful local field staff. For same-day sign up & quoting visit
hagertybroker.ca, email [email protected], or call 888-216-2379.
Coverage available in AB, BC, NB, NL, NS, ON & PEI. Hagerty Canada, LLC policies are underwritten by Elite Insurance Company, an Aviva Canada company.
COVER STORY
Tired of Losses
“I ask people to say the letters A to I
as quickly as you can and then say the
numbers 1 to 9 as quickly as you can,”
he says.
“Most people can rattle them off fairly quickly. But then if you try and go
‘A1B2C3,’ watch how much that slows
you down, because your brain has to
toggle between letters and numbers.”
SLEEPING PATTERNS
Driving while drowsy is also a problem among commercial operators,
Geller suggests. “It goes beyond just
compliance with the hours of service
regulations,” he says, referring to federal
and provincial regulations that stipulate
hours of service.
In Canada, the federal government
regulates commercial drivers’ hours of
service, for commercial operators who
cross provincial borders, Geller notes,
reporting that “most often” the federal
and provincial hours of service regulations “mirror each other.”
In Ontario, for example, commercial
drivers “must have 10 hours off-duty
in a day,” the Ministry of Transportation
explains. Drivers are not allowed to
drive more than 13 hours in a day and
may not drive after being on duty for
14 hours, the ministry adds.
“Typically, when people look at
drowsy driving, they are usually
thinking after midnight and certainly
that is one of peak times, but there is
also a peak time of 2 pm to 4 pm,”
Geller notes.
Alistair MacLean agrees, noting the
other peak time for crashes is between
4 and 6 am.
“Those both coincide with our biological alertness rhythm,” reports
MacLean, a psychology professor at
Kingston, Ontario-based
Queen’s
University. MacLean’s areas of expertise include the effect of sleep loss and
sleepiness on skills such as driving.
“It’s great saying you’ve got enough
time to get good sleep but if that’s between 8 am and 4 pm, and you are
typically on a daytime cycle, your body
isn’t ready to go to sleep at that time,”
MacLean contends. “So I think getting
the balance between the amount of
sleep and the pattern of sleep is probably an important factor.”
But MacLean notes the role of the circadian rhythm is not well-understood.
“Our attentional capacity waxes and
wanes throughout the 24-hour period, as does our level of sleepiness,”
MacLean explains. “So sleep is not
something that, as it were, you could
just pick up and teleport to any part of
the 24 hours.”
dent) and Dr. Peter Munt (founder and director of the Sleep Laboratory at Kingston
General Hospital, who died in 2012).
Those researchers “looked at the relationship between alcohol and sleep
loss,” MacLean recounts.
“If you’ve got somebody getting up
at 8 in the morning, and then staying
up all day and then driving through the
following night, by about 2:30 am their
driving is as bad as if they had (.05%)
blood alcohol level, and by 5 am it is as
bad as if they were at .08% blood alcohol level,” MacLean suggests.
“We thought, ‘Society has already decided that .05 or .08% blood alcohol
level is unacceptable,’ so we used those
as standards against which to judge the
sleepy driving,” MacLean reports.
CATCHING TIPSY DRIVERS
“What we do tend to
see is driver fatigue, or
driver error in terms
of being on the phone,
reaching for their lunch
and rolling the vehicle.
The losses we have
seen coming from
either fatigue or
distraction have been
multi-million-dollar
losses,” reports Ken
Parsons of CNA Canada.
MacLean is co-author of a paper, published in 2001 in Accident Analysis and
Prevention, titled How do prolonged wakefulness and alcohol compare in the decrements they
produce on a simulated driving task.
MacLean’s co-authors were Queen’s
Psychology professor Gerald Wilde, J.
Todd Arnedt (then a Queen’s PhD stu-
It is a criminal offence in Canada to drive
with a blood alcohol level of .08% or
greater. However, some provinces have
administrative suspension programs for
drivers with lower blood alcohol levels,
MADD Canada reports.
British Columbia, for example, has
had an automatic roadside prohibition regime (ARP) since 2010. The
province imposes a mandatory driving
prohibition when a motorist registers
a warn (blood alcohol level of .05%
or more) or fail (.08% or more) on a
screening device.
That regime was challenged, unsuccessfully, on constitutional grounds by
Richard Goodwin and other B.C. motorists who had been subject to 90-day
roadside driving prohibitions — and
had their vehicles impounded 30 days
— after either failing to provide breath
samples or failing the roadside breath
tests ordered by police or peace officers.
Insurance Bureau of Canada (IBC),
which had intervener status in Goodwin’s
appeal, gives examples of measures
proposed and in place in Canadian
provinces and territories.
For example, the Saskatchewan government amended its Traffic Safety Act to
“provide for immediate licence suspension for drivers who have [blood alcohol concentration] of .04% or more,
We are
Markel.
Commercial general liability
Cyber risks insurance
Directors and officers liability
Environmental impairment liability
Life sciences
Professional liability
Property and inland marine
Security and protection industry
Umbrella and excess liability
Helping brokers with effective
insurance solutions since 1966
Calgary
Montreal
Toronto
Vancouver
www.markelinternational.ca
CA corp advert CU 8.125x10.75.indd 1
14/03/2016 13:44
COVER STORY
Tired of Losses
immediate roadside vehicle impoundment, and increased penalties for new
drivers found operating vehicles while
having consumed alcohol or drugs,”
IBC reports.
The Supreme Court of Canada ruling, Richard James Goodwin, et al. v. British
Columbia (Superintendent of Motor Vehicles),
et al. which upheld roadside licence
suspensions and vehicle impoundments in B.C., was released October
16, 2015. Goodwin and the other motorists argued, among other things,
that the province did not have the
power to impose penalties on motorists found to be impaired because the
constitution gives the federal government exclusive power over criminal law.
But all seven Supreme Court of Canada
judges who heard the case disagreed.
“No doubt the ARP scheme has incidental impacts on criminal law,” Justice
Andromache Karakatsanis wrote on
behalf of six of the seven judges who
heard the case.
“No doubt it targets, in part, specific
criminal activity and imposes serious
consequences, without the protections
attendant on criminal investigations
and prosecutions,” Justice Karakatsanis
noted of B.C.’s ARP system. “However,
the consequences relate to the regulation of driving privileges.”
Chief Justice Beverley McLachlin dissented, in part, but not on the division
of powers issue.
As an intervener, IBC’s submission
was limited to the division of powers between the provinces and the
federal government.
“As it relates to this case, the actual historical loss data used by insurers is presently based on the provincial administrative and civil impaired driving regimes
and other comparable safety schemes in
place,” IBC notes in its factum.
“IBC submits that the striking down
of the ARP regime, and similar provincial and civil impaired driving
legislation, would have the effect of
increasing road collisions to a degree that is not reflected in current
insurers’ historical claims records
and premiums.”
Since B.C. implemented its automatic
roadside suspensions in 2010, there
has been “a 52% decrease in drinking
and driving fatalities,” the B.C. Public
Safety spokesperson writes.
“If you’ve got somebody
getting up at 8 in the
morning, and then
staying up all day, and
then driving through
the following night, by
about 2:30 am their
driving is as bad as if
they had (.05%) blood
alcohol level, and by
5 am, it is as bad as if
they were at .08% blood
alcohol level,” suggests
Queen’s University
psychology professor
Alistair MacLean.
LACK OF GUIDANCE
“Incidents of a commercial motor vehicle driver being impaired and involved
in an accident is almost unheard of,”
says Geller. “It’s probably less than 1% of
crashes. It’s a very, very rare occurrence.”
However, he adds, “there are a couple
of public policy issues we need some
guidelines on.”
One is medical use of marijuana,
which “really does require further
study,” Geller contends. “Right now
people are authorized to use it, but it
hasn’t been studied enough to make
it on to the list of prescribed medications and that kind of creates a grey area
and some difficulty for how companies
should manage it.”
The other public policy issue in need
of further guidance is alcohol and drug
testing for workers in safety-sensitive
positions, Geller suggests.
One
organization
implementing random drug and alcohol
testing for employees, in safetysensitive positions, is the Toronto
Transit Commission (TTC).
“We will now take steps over the next
few months to finalize the program, including hiring a third party to administer and implement random alcohol
and drug testing at the TTC,” the transit
commission’s chief executive officer,
Andy Byford, writes in an April 18 letter to Toronto public transit employees.
“Since 2010, when the Fitness for
Duty policy allowing for several forms
of testing, but not random testing, was
implemented, there have been continued
instances of impairment while at work,”
Byford writes. “That is simply unacceptable. How do we not strengthen our
existing Fitness for Duty policy with a
proven deterrence of random testing?”
In 2014,” there were 16 cases of impairment or refusal to take an impairment test, 30 such instances in 2015
and six from January to the end of
March this year,” a TTC spokesperson
writes in an email to Canadian Underwriter.
It was not clear whether or not all of
those employees were drivers.
The issue of random drug and
alcohol testing in the workplace was
the subject of a Supreme Court of
Canada ruling, in 2013, in the case of
Communications, Energy and Paperworkers Union
of Canada, Local 30 v. Irving Pulp & Paper, Ltd.
“The fact that a workplace is found
to be dangerous does not automatically
give the employer the right to impose
random testing unilaterally,” wrote
Justice Rosalie Silberman Abella, on behalf of six of the nine Supreme Court
of Canada judges, in Irving. “The dangerousness of the workplace has only justified the testing of particular employees
ACCEPT THE BATON.
Join WICC Ontario at Relay For Life
WHAT IT’S ABOUT:
What: Canadian Cancer Society’s Relay For Life – the largest WICC fundraising
event in Ontario.
Why: To celebrate cancer survivors, commemorate those we’ve lost, and raise money
for life-saving research.
Where: Downsview Park.
When: Friday June 17th, 2016 6:00pm – midnight.
Who: You – be a captain and sign up your team right away. It’s easy – we’ll show you how.
WHAT YOU DO:
Build your team: Friends, family, colleagues, clients. Teams are often 10 people, but
more or less is great too.
Register: go to www.relayforlife.ca/wicc
Choose your WICC Relay For Life event, either Downsview Park or any other Relay
event around the province.
Pick WICC! Select WICC under “Team Company” to make sure your funds count for the
industry campaign.
Questions? Go to www.wicc.ca
Design compliments of
READY. SET. WALK.
29554_RelayAd_Magazine.indd 1
3/29/16 9:24 AM
COVER STORY
Tired of Losses
“The actual historical loss data used by insurers is presently based on the
provincial administrative and civil impaired driving regimes and other
comparable safety schemes in place,” Insurance Bureau of Canada writes in a
factum to the Supreme Court of Canada.
in certain circumstances: where there
are reasonable grounds to believe that
the employee was impaired while on
duty, where the employee was directly
involved in a workplace accident or
significant incident, or where the employee returns to work after treatment
for substance abuse.”
In 2006, Irving Pulp and Paper Ltd.
brought in random alcohol testing for
employees at a mill in Saint John, New
Brunswick. CEP Local 30 filed a grievance challenging the random testing aspect of the policy. An arbitration board
allowed CEP’s grievance, but the board’s
ruling was set aside — by the New
Brunswick Court of Queen’s Bench —
on judicial review.
The New Brunswick Court of
Appeal also disagreed with the arbitration board, but the Supreme Court
of Canada allowed CEP’s appeal, with
the majority agreeing with the arbitration board, in that Irving “had not
demonstrated the requisite problems
with dangerousness or increased safety concerns such as workplace alcohol use that would justify universal
random testing.”
The arbitration board held that random alcohol testing was “an unreasonable exercise of management rights”
under its collective agreement with CEP.
Quoting from case history, Justice
Abella noted the Supreme Court of
Canada has ruled in the past that “seizure of bodily samples is highly intrusive and ... subject to stringent
standards and safeguards to meet
constitutional requirements.”
In Irving, “the Supreme Court said employers have to show drug and alcohol
abuse is a problem,” the TTC spokesperson told Canadian Underwriter. “Because
we see these numbers continue to rise,
we have an obligation as a public transit
agency and as an employer of 14,000
people to make the TTC as safe as we
can possibly make it.”
TTC’s policy applies to all employees
in safety-sensitive positions.
For alcohol and drug testing for people
in safety sensitive positions, “there does
need to be further independent study
so that we can come up with guidelines
and not after the fact,” Geller says, commenting in general and not on the TTC
specifically or on the Irving ruling. “Let’s
have the discussion now while it is
still philosophical.”
There are privacy issues involved
in random drug and alcohol testing of commercial drivers, suggests
CNA Canada’s Ken Parsons.
“Each case will have to be measured
on its own merits,” Parsons says, com-
menting in general and not on either
the TTC or the Irving decision. “We are
extremely sensitive, at least in Canada,
that it has to be germane to the employment and we have to respect the rights
of the individual and the courts will
hold us to an extremely high standard.”
But the hazards of impaired, distracted
or drowsy drivers can be mitigated with
autonomous vehicles, Parsons suggests.
“It won’t eliminate all of the accidents but will eliminate a great
percentage of them,” Parsons predicts, pointing out that the computers that control autonomous
vehicles “can’t get drunk and they can’t
get stoned.”
Driver assist technologies —
such as forward collision warning,
adaptive cruise control and lane
departure warning systems — “are helping improve driver and vehicle safety,”
Beneze reports.
“If you keep in mind that driver
error is considered to be a 90% contributor to automobile accidents, when
you have autonomous vehicles that are
programmed to do everything correctly, I am not saying you will get rid of
90% of the automobile accidents, but
it will reduce them significantly as we
have more autonomous vehicles on the
road,” Beneze believes.
Recent Insurance Press Releases featured
on insPRESS.ca
Residential Oil Spills: A Messy Business – Origin and
Cause thanks you for making this webinar a success
Apr 29 - by Origin & Cause
People are often the most overlooked and
underestimated weakness in a company’s cyber security.
CHES Special Risk explores the risks.
Fire at Surrey Used Car Lot Creates Massive Problem
Apr 20 - by CHES Special Risk Inc.
Apr 29 - by APRIL Canada Pario Engineering & Environmental Sciences Extends its
Ontario Service Reach by Opening New Ottawa Location
Bermuda experts head to Canada to promote
jurisdiction
Apr 28 - by Bermuda Business Development Agency (BDA)
Thursday June 2 – save the date! The ARC Group
Canada’s 2016 Annual Seminar & Cocktail Event
Apr 28 - by The ARC Group Canada
PT&C|LWG Announces John Hicks as Director of
Complex Loss in Canada
Apr 19 - by SCM Insurance Services
ENCON to Enhance Coverage for Miscellaneous E&O
Professionals
Apr 18 - by ENCON Group Inc.
Roofing Contractors Insurance as Provided by CHES
Special Risk Inc. Supports Canadian Constructions
Industry
Apr 27 - by PT&C|LWG Forensic Consulting Services
Apr 18 - by CHES Special Risks
CSIO Introduces New eSignatures Savings Calculator
AssessMed Announces the Addition of Chris Nguyen
as the Director of Functional Assessment Services for
AssessMed Inc.
Apr 26 - by CSIO (Centre for Study of Insurance Operations)
Residential Oil Spills: A Messy Business — Don’t miss it,
sign up now! FREE 1 HOUR WEBINAR WEDNESDAY
APRIL 27
Apr 25 - by Origin & Cause
High Profit in a High Risk Sector, Many Operators go
Un-Insured in the Medical Marijuana Industry
Apr 25 - by CHES Special Risk Inc.
DAS Canada is being recognized as a Great Place to
Work®
Apr 15 - by Assessmed
Euler Hermes launches trade credit insurance solution
for small businesses
Apr 15 - by Euler Hermes
CSIO Highlights Technology, Future of Broker Channel
at 2016 Member’s Meeting
Apr 15 - by CSIO (Centre for Study of Insurance Operations)
FIRST Canada Welcomes Sébastien Hamel
Apr 22 - by DAS Canada
Apr 15 - by FIRST Insurance Funding of Canada
Coaching 360˚ – Broker Consulting Comes Full Circle
Shaun Delorey Joins AL-CARE DKI As New Director Of
Operations – Mississauga Branch
Apr 21 - by Gradient Solutions
Unexpected Problems Can Lead to Burst Pipes, Property
Damage
Apr 14 - by DKI Canada
Apr 21 - by April Canada
Apr 12 - by CSIO
IBAM Participants – Confidently offer pre-approved
financing terms from FIRST Canada
Economical Insurance continues supporting
Campbellford Memorial Hospital
CSIO adds New Forms Analyst to its Toronto team
High Networth Provider CHES Special Risk Inc. looks
forward into 2016 – Reminding brokers to review
contents regularly to avoid underinsurance
Apr 12 - by CHES Special Risk
FIRST Canada Welcomes Alex Husain
Pario Engineering & Environmental Sciences Opens
New Thunder Bay Office Extending Its Ontario Service
Reach
Apr 11 - by SCM Insurance Services
Apr 20 - by Economical Insurance
To Read the Full Story for Each Press Release visit insPRESS.ca
INSPRESS COLUMN AD MAY 2016.indd 1
16-05-16 11:40 AM
The CIP Society
Ethics Series
The CIP Society
Insurance Institute
of Canada
The CIP Society represents
more than 17,000 graduates
of the Insurance Institute of
Canada’s Fellow Chartered
Insurance Professional
(FCIP) and Chartered
Insurance Professional (CIP)
Programs.The CIP Society,
through articles such as this,
is working to bring ethical
issues to the forefront and
provide learning opportunities
that enhance the professional
ethics of all insurance
professionals.
When placing
commercial
liability coverage,
insurance brokers
should never tell
policyholders how much
coverage is enough. Clients
should be advised there is
always a possibility of being
underinsured for a potential
judgment or settlement.
During a heavy windstorm, an improperly constructed sign was destroyed. A portion of it struck
and seriously injured a pedestrian. The accident
caused significant spinal injuries, leaving him
without the use of his legs. As a result, he was
unable to support himself or his young family.
The sign was owned by a developer, installed
by an independent contractor and located on
property owned by a third entity. The injured pedestrian sued in an action alleging negligent construction, supervision/inspection/maintenance
and occupiers’ liability against the three parties.
The claimant’s lawyer pleaded relief seeking $33
million in damages including future care costs,
future lost income and loss of companionship,
among other claims.
The developer was adequately insured, but the
independent contractor and property owner had
each only purchased $5 million of commercial
general liability (CGL) coverage, based on advice
from their respective brokers. The case was eventually settled for $16 million, with $6 million
assessed against the independent contractor, $2
million against the property owner, and $8 million against the developer.
At the time of this accident, there had been
public press coverage of automobile and general
liability claims, and medical malpractice judgments and settlements in Canada that exceeded
$10 million.
In this case, the independent contractor was
not adequately insured for the settlement value. If
the property owner had been advised by its brokers that there had never been a liability claim in
Canada exceeding $5 million, the owner might
not have been adequately insured, either. Other
than the developer, these clients did not receive
the necessary advice on exposure and risk management from their respective insurance brokers.
As policy limits change, as new and different
Unlimited
Liability
claims are taken to court, and as new
risks arise, clients expect their brokers
to provide advice that ensures they
have necessary coverage. What is a broker’s responsibility in advising clients
regarding the adequacy of policy limits? How can brokers ensure they are
meeting their ethical commitment to
protecting their clients?
Bradley J. Wells, LLB
As occurred in this scenario, the verdict (and settlement) value of an unexpected catastrophe resulting in partial
paralysis (or worse) will easily exceed
a $1-million or even $5-million limit.
A prudent broker should advise the
client about the highest liability limits
available in the marketplace, with candid disclosure of where other markets
might be approached if additional limits are needed. Once the pricing and
Coverage Counsel
Snowden LLP
Brokers are held to a high professional standard by Canadian courts. This is
sometimes described as a stringent duty
to provide correct information and advice to their clients. The duty includes
providing ongoing advice on which
coverage is needed to protect against
foreseeable losses.
A Registered Insurance Brokers of
Ontario (RIBO) licensing course instructor once advised students that they
should never tell a client how much liability insurance is enough. Even if directly asked, brokers should never give a
maximum liability limit as “sufficient”.
Instead, a broker should advise the
client on which limits are available
and the associated premium. A broker
should assist, not instruct, the client to
determine sufficient limits.
In this scenario, it seems the independent contractor’s broker gave bad
advice on liability limits and did not adequately discharge its obligation owed
to the client. However, one would need
to look back at the broker’s file to see
the advice that was requested, the advice that was given and whether or not
this advice was followed.
A careful professional will always
make a written record of risk management questions received from clients
and the answers or advice given.
When considering which limit to
purchase, a client will be tempted to
think in terms of the average or common losses and choose a less costly limit.
However, a broker providing advice on
limits should invite the client to consider the “worst-case” scenario that could
result in catastrophic injury or damage.
A broker’s role is to work
with the client to determine
the best coverage possible
within the client’s budget.
limits options are laid out, the broker
can inform the client of the serious
property and casualty (or other relevant
line) exposures from a claims settlement perspective.
At this point, the broker can step
back and let the client decide for himself or herself what policy is desirable
and affordable. This way the broker has
educated the client, satisfying the professional duty owed, and the client can
make an educated business decision.
Scott Meadwell
Commercial Lines Producer
Meadwell Mowat & Fennell Insurance
In this scenario, the most concerning
issue is that the broker advised the cli-
ent that no court case had ever exceeded
a claim of $5 million. Brokers should
never assume they know all legal decisions and settlements. Most financial
payouts result from out-of-court settlements, and it is impossible to know
these cases when many of them include
non-disclosure terms.
While brokers should never discuss
maximum possible payouts to a client,
they can discuss the risks associated
with limits and allow the client to make
an informed and comfortable decision.
Each broker must determine the comfort level of each client with regard to
liability limits. Most clients will weigh
the risk against the possibility of going “insurance poor” if the broker tries
to place insurance against claims of all
sizes. It is a good practice to inform the
client that there is always a possibility of
being underinsured. Regardless which
policy limits the clients choose, the broker should tell clients that higher limits
are available if, and when they choose to
explore them.
In this scenario, it is impossible to
comment on whether or not a prudent
broker would consider these clients
underinsured prior to the loss without
knowing much more about the companies involved. It is easy to say that a
client is underinsured after a loss, but
prior to the loss, not many brokers
would consider a property owner underinsured with $5-million limits.
The term “underinsured” has a very
different meaning post-loss then it does
prior to the loss.
In the absence of a crystal ball or
bottomless pockets for insurance, the
best advice is to communicate with
each client and revisit the limits of
coverage annually. This way, the client is represented in the best manner
possible, and that is the goal as professional insurance brokers.
Diane Brickner, CIP
President & Chief Executive Officer
Peace Hills General Insurance
Insurance brokers have a tremendous
amount of information readily available to them, such as trade articles or
online information that will assist them
in having an informed discussion with
their client about how much coverage
is enough. They can certainly advise a
range of coverage, but it is up to the client to choose the limits.
A broker who advises a client that
there has never been a liability claim
in Canada exceeding $5 million should
have his or her license revoked. That
broker should probably find another career outside the insurance industry. It is
a huge disservice to a client to suggest
a specific amount of liability coverage
is adequate.
A broker cannot know what a judge
will determine in court, nor can he or
she profess to be experienced in such
areas as professional risk management
or fiduciary responsibilities. A broker’s
Recent Insurance Press
Releases featured
on insPRESS.ca
responsibility is to understand the business of their clients and learn the risks
they may face with as much knowledge
and insight as they can obtain. A broker’s role is to work with the client to
determine the best coverage possible
within the client’s budget.
THE LAST WORD
From an ethical perspective, the best
approach is to ensure that clients understand their extreme risk profile, not
based on known precedence but, rather,
on the best possible risk profiling and
assessment of all the available options.
Once the client is fully informed, the
broker can strongly recommend the cli-
Winnipeg Incident Highlights Insurance Issues When Water
Mains Break
Construction Firms Must Consider Premises Pollution in
Insurance Needs
DKI Canada Hosts Seminar for Lloyd’s of London
New Business Owners Should Consider Insurance Needs Early
Clean Up Contractors Are Better Off Being Safe Than Sorry
PT&C|LWG Announces Scott Broad as its Vice President of
Forensic Consulting Operations in Canada
Apr 6 - by PT&C|LWG Forensic Consulting Services
Study Finds Lack of Fire Protection for First Nation Reserves
Support WICC at Relay For Life
Apr 5 - by WICC Ontario
DKI Canada Announces New Member With Locations in
Winnipeg & Brandon, Manitoba
Peace Hills Insurance Launches CSIO eDelivery, Obtains
Certification
Apr 4 - by CSIO
To Read the Full Story for Each Press
Release visit insPRESS.ca
ent have as much liability coverage as
they can afford.
From a client relationship perspective, best practices suggest that brokers
maintain regular, frequent and appropriate communication with their clients
to ensure they are aware of changes in
their client’s risk profile and that their
clients are appropriately covered. Brokers
should always retain thorough notes.
As a client’s business grows or changes, a broker must ensure that he or she
is providing their clients with information customized to the evolution of
the client’s business. Not only is this
the broker’s professional duty, but it
is also the added value brokers should
be bringing to their clients, as a trusted
advisor.
MARK YOUR
CALENDAR!
Tuesday, August 30, 2016
SHERATON CENTRE TORONTO
Turning Insurance Outside-In
Leading analysts and practitioners agree:
To meet customer expectations over the next
decade, we need to turn insurance Outside-In.
Customers are comparing insurance products and services
against a wide range of other offerings and suppliers. Continuous
improvements in the total customer experience — from product
development and marketing, through the sales and service
domain, to fulfillment at time of claim — will be an essential
differentiator for the next decade.
The 2016 Insurance-Canada.ca Executive Forum will bring
together a faculty that understands — and lives — the broader
customer experience from a variety of perspectives. We are
including executives from outside the P&C community to share
their successes and challenges.
Keynote Presentation: “Defining and Operationalizing an Effective
Digital Strategy” –Joseph Cooper, Global Technology Executive
Joe will underscore key digital elements impacting insurers, and
the dramatic pace of change facing the insurance community.
Other presentation topics include:
•
•
•
•
•
•
Where is disruption happening; what are the outcomes
Innovating the next insurance product
The moment of truth: Claims goes digital
Digital Psychology @ the tip of the insurance marketing funnel
IOT and Insurance: Transitioning from theory to reality
Customer Experience: How does insurance stack up against
other sectors
Join your colleagues at the 2016 Insurance-Canada.ca
Executive Forum to see how insurance looks — from the
Outside-In.
REGISTER NOW & SAVE!
$875 REGULAR RATE
$750 FOR INSURERS
$525 FOR BROKERS
Early Birds:
Get 10% off above
fees if you book
before July 15th!
For information on
sponsor opportunities,
please contact:
Kathryn Bertsch
416-244-4361
[email protected]
Doug Grant
416-921-7756
[email protected]
Patrick Vice
416-540-3008
[email protected]
PRESENTED BY
For more details, please visit
www.insurance-canada.ca/icef
Adding Risk
Mandip
Hullait
Director,
Commercial Auto,
RSA Canada
Modifications to commercial
vehicles, such as cranes
and welders, can give rise to
insurance coverage issues.
When slip tanks are added,
this should get commercial
auto brokers thinking about
pollution liability risk.
Modifications to commercial vehicles, especially
involving the transportation of hazardous substances, can affect both safety and insurance coverage.
When vehicles are carrying cargo such as fuel,
fleet managers need to consider the risk of long-tail
liability in the event of a pollution incident, and methods of reducing the risk of spills into bodies of water.
Commercial vehicles are subject to minimum
performance standards to ensure their safe operation. Examples include Canada’s National Safety
Code standards under the mandate of Transport
Canada and the Canada Motor Vehicle Safety Standards.
Evidence of safety fitness certificates (SFCs)
are also required by provincial authorities for
trucks, tractors or trailers that have a registered
gross vehicle weight exceeding 4,500 kilograms.
Whether operating light vehicles or heavy trucks,
fleet managers should include the impact of modifications on safety. Examples of modifications
that could affect operations include adding a slip
tank, welder, crane, bucket or toolbox.
It is also very important to install these components properly to avoid any unsafe conditions.
During installation, safety devices must not be
disabled or circumvented.
One should also take into careful consideration
the types of activities the vehicle is expected to
perform and ensure it still meets all the requirements outlined in a company’s fleet safety program.
Understanding auto coverage
Clients who have modifications carried out on
their vehicles need to be aware of considerations
concerning insurance coverage. One is the thirdparty liability arising out of the operation of the
attached equipment that is non-automobile in
nature; the other is the physical damage to the
attached equipment.
It is important for the broker to speak with the
client to ensure the right type of coverage is in
or rivers. A common example in Western Canada is in the oil and gas sector,
where heavy equipment is loaded with
dangerous goods on a regular basis for
oilfield operations.
When dangerous goods are being
transported, there are several ways of
mitigating exposures. For example, fleet
managers can pre-plan trips to avoid
rough terrain as much as possible.
Another example of a risk mitigation method is to plan alternate routes
that will avoid passing near any bodies
of water. This can mean the difference
between shorter-term, less expensive
environmental clean-ups and clean-ups
that drag on for years.
When a body of water is involved,
the risk is significantly higher, and high
claims costs can drive up the overall insurance costs.
place for the type of modifications being completed and the function of the
equipment that is separate from transportation and travel.
Modified commercial vehicles may
also increase the severity of claims because they inherently are more expensive with their additional equipment or
modifications to replace. In addition,
the added weight of these vehicles may
increase the chances of fatal accidents
and loss of life.
Aside from vehicle modifications, another often noted concern around fleet
vehicles is adequate environmental protection. While pollution may not be excluded from a commercial auto policy,
the client may wish to purchase extra
coverage if there is higher risk, given
the type of commodities carried in the
commercial vehicle.
One example would be a fleet hauling fuel as a core part of its operations.
Insurance Bureau of Canada (IBC) is
one source that offers some preventive
tips for fleet managers. These tips, on
mitigating risk, include implementing
policies and procedures, such as incorporating safety training for proper fuel
storage and disposal.
For fleets hauling fuel, there are also
long-tail liability concerns with pollution if substances spill into nearby lakes
While pollution may
not be excluded from a
commercial auto policy,
the client may wish to
purchase extra coverage
if there is higher risk,
given the function of the
commercial vehicle.
The value of advice
IBC offers step-by-step instructions to
help clients manage these types of claims
most effectively. Risk control consultants can advise fleet managers to make
sure they have the right kind of controls
and measures in place to mitigate loss.
Brokers need to ask the right types of
questions to ensure adequate protection
is put in place to control commercial
auto exposures in accordance with a business’ unique needs or challenges.
Bates
Revisited
Partner
Samis + Company
Jenna Meth
Lawyer
Samis + Company
In 1992, the Supreme Court of Canada ruled
that insurers can determine auto insurance rates
for drivers using discriminatory criteria such as
age and sex. The court held that a discriminatory
practice is “reasonable” if it is based on “sound
and accepted insurance practice” and there is no
practical alternative.
Would this decision hold up today, in an era of
telematics, drones, Facebook and the Kardashians? In other words, with 30 years of progress in
databases and resources, should age and gender
still be bona fide reasons for segmenting risk?
Approved criteria
All Ontario insurers writing non-fleet auto insurance must have their rating and classification
systems approved and authorized by the Financial Services Commission of Ontario (FSCO).
The Private Passenger Automobile Filing Guidelines are
followed when a company is initially entering
the private passenger auto market or changing
its rates or risk classification system.
Every model of car and light truck for every
model year is grouped according to assessed
risk, the expected claims frequency, cost and the
likelihood that it will be stolen. A higher Canadian Loss Experience Automobile Rating (CLEAR)
number indicates a higher claims risk; a lower
CLEAR number indicates a lower claims risk,
which is reflected in lower insurance rates.
Ontario’s Insurance Act and its regulations give
FSCO the power to control rates. Underwriting
rules that are deemed subjective or arbitrary,
bear little or no relationship to the potential risk
to be assumed, or are deemed contrary to public
policy by FSCO’s superintendent are prohibited
from being used.
Regulation 664 indicates that, except as permitted under subsection 16(5), no element of a
risk classification system shall use any of a number of factors, including income, employment
history, credit rating, and physical or mental
Daniel
Strigberger
In the early 1990s, the
Supreme Court of Canada
found there were no
practical alternatives — as
of 1983 — to rating auto
policyholders on the grounds
of age, sex and marital
status. But would today’s
telematics products, which
detect acceleration, braking,
and cornering, help provide
such alternatives?
2 16
September 28 - 3 0 The Westin Bayshore, Vancouver, B.C.
Register Now! www.niccanada.com
The NICC is Canada’s pre-eminent insurance conference
attended by senior executives of insurers, brokers, reinsurers,
risk managers, regulators and industry associations.
Sessions include:
• The View from OSFI
• Client-Centricity Shouldn’t Be a Foreign
Language - External and Insurance Views
• The Road We’re Heading Down
• Are Commercial Insurance Distribution
Models Changing?
Together with our senior advisory committee of industry
CEO’s, we are once again making the NICC a can’t miss
industry leadership event.
NICC 2016 is accredited by RIBO: 9 hours Management
• Harnessing The Power of Data Analytics in
the Insurance Space
• Global Deals - Local Consequences - UN
Climate Conference, Feeling the Heat
• Understanding The Blockchain Potential
• Preparing for Seismic Risk in Canada - A
Multi-Disciplinary View
• Global Leaders’ Panel
• The Future of Market Conduct Regulation
• Are We Ready for the Cyber Threat Horizon?
Platinum Sponsors
Gold Sponsors
Keynote Speaker
Jessica Yellin
Award-winning former
Chief White House
correspondent for CNN
2016 NICC Emcee
Amanda Lang
Where Industry Leaders Meet
Silver Sponsors
Media Sponsors
health. There are no prohibitions against
using factors such as age and sex.
The Ontario Human Rights Code provides
individuals with protection against discrimination in areas of race, ancestry,
place of origin, colour, ethnic origin,
citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, marital status, family status
or disability. However, under Section 22
of the Human Rights Code, those rights are
not infringed upon where some insurance contracts (including automobile
polices) differentiate or make distinctions, exclusions, or preferences “on
reasonable or bone fide grounds because
of age, sex, marital status, family status,
or disability.”
Discrimination complaint
In the 1980s, an insured named Michael
Bates brought a human rights complaint
against Zurich Insurance Company, alleging that he, a young single, male
driver, had to pay insurance rates that
were higher than comparable classes of
individuals. Bates alleged that this practice was contrary to the Human Rights Code.
The insurer acknowledged that its
practices were prima facie discriminatory, but argued that they fell within the
“reasonable and bona fide grounds” exception contained in the code.
This case proceeded to the Supreme
Court of Canada. In a 1992 split decision, Justice John Sopinka, writing for
the majority, defined the test for “reasonable and bona fide grounds,” stating
that a discriminatory practice is “reasonable” if it is based on “sound and
accepted insurance practice” and there
is no practical alternative.
“Soundness” means the practice was
desirable to adopt for the purpose of
“achieving the legitimate business objective of charging premiums that are
commensurate with risk.” Whether or
not there is a practical alternative is a
question of fact. For a practice to be bona
fide, it must be “adopted honestly, in the
interests of sound and accepted business practices and not for the purpose
of defeating the rights protected under
the Code.”
The Supreme Court of
Canada was clear in Zurich
that the insurance industry
bears the responsibility of
making a concerted effort
to develop methods of
rating that are not based
on discriminatory grounds,
while still reflecting the
disparate risks of different
classes of drivers
Lack of alternatives
A considerable portion of the majority’s analysis was devoted to the availability of practical alternatives. It ultimately concluded that, at the time the
complaint was brought, there were no
practical alternatives to rating on prima
facie discriminatory grounds such as age,
sex, and marital status. The Court was
clear, however, that this did not mean
there never will be practical alternatives.
Justice Sopinka concluded by stating
that the insurance industry “must strive
to avoid setting premiums based on
enumerated grounds.”
On dissent, Justice Beverley McLachlin (Chief Justice of Canada since 2000)
found the insurer had not demonstrated an absence of practical alternatives.
She was initially inclined to accept the
argument that Zurich had no practical
alternative because, in 1983, it did not
possess statistics based on non-discriminatory grounds. However, she blamed
the Superintendent of Insurance for not
requiring insurers to collect such data.
Upon reflection, however, Justice
McLachlin found that this absence of
statistics did not demonstrate the absence of a practical alternative; it merely established that “we do not know
whether viable alternative bases of risk
evaluation exist.”
Accordingly, she found that Zurich
had not met its burden of proving there
were no practical alternatives to its prima
facie discriminatory rating system. She
did, however, agree with the majority
that the insurance industry should be
allowed time to determine whether or
not it can use non-discriminatory factors to set premiums.
Risk Rating in 2016
Does today’s insurer have practical alternatives to its prima facie discriminatory
rating system? One would think that
the exponential growth in technological advances over the past 24 years since
the supreme court’s decision has, or
should have, provided today’s insurers
with practical alternatives.
The most obvious argument supporting “practical alternatives” is the availability of telematics or “usage-based
insurance.” Today, a number of insurers
are using vehicle telematics to help determine risk.
Sensors and communication devices
track common driver behaviours, such
as accelerating, braking, and cornering.
They also track driving characteristics,
such as when a driver gets behind the
wheel and where he or she is going. The
insurer can then analyze the resulting
data and assess risk.
In 2014, Ontario drivers with Des-
jardins Insurance were offered a usagebased product called Ajusto, which
monitors activities such as the time
of day a driver is driving, the distance
the person drives in a year, and how
fast the person is braking and accelerating. The company has offered users
discounts on their premiums based on
their driving habits, which are recorded by Ajusto.
Another alternative might come in
the form of online databases or surveys. It is difficult to surf the Internet
today without being prompted at least
once to complete a survey. Perhaps the
insurance industry can use similar surveys with their customers (or potential
customers) to gather information about
driving habits.
natory grounds, while still reflecting
the disparate risks of different classes
of drivers. It may be arguable that the
decades that have passed since this decision was issued have afforded the industry ample time to determine whether or not alternate grounds are viable.
That said, however, it is not clear
whether or not a set of non-discriminatory criteria as effective as age, gender
and marital status has emerged to replace the historical practice of rating
on these grounds. The Supreme Court
notes that this does not permit insurers
to stop trying to establish, test and build
data based on alternate grounds, with
the long-term goal being to move away
from prima facie discriminatory practices.
Perhaps a few more years of telematics
will assist.
The Broker’s Source for Specialty,
Niche & Non-Standard Risk
since 1973!
One would think that the
exponential growth in
technological advances
over the past 24 years
since the supreme court’s
decision has, or should
have, provided today’s
insurers with practical
alternatives.
That said, one major obstacle for insurers today might be privacy. Everyone lives
in an age where companies are getting
slammed for privacy breaches. Courts are
doing whatever they can to protect privacy rights and punish those who infringe
them (a case in point is the Court of
Appeal for Ontario ruling in Jones v. Tsige).
Desjardin’s Ajusto has already raised some
privacy concerns, with fears that customers might not fully understand how the
company is tracking their usage and what
might happen with that data over time.
10
15
Search the Marketer Online at:
Order Extra Copies of Print Edition (published July):
http://bit.ly/marketerorder
Going Forward
The Supreme Court of Canada was clear
in Zurich that the insurance industry
bears the responsibility of making a
concerted effort to develop methods of
rating that are not based on discrimi-
For more than 40 years,
Canadian Underwriter magazine’s Insurance Marketer has been
the trusted source to assist insurance brokers in finding a market
for the most unique risks.
Putting the pieces together.
Events and Seminars Calendar
You work hard to protect your clients’ property. Now, it’s time to ensure that you apply the same kind of energy and
commitment to your own success. CIP Society Events and Seminars give you the opportunity to learn, to network, to catch
up on industry developments and to think about your career.
CIP Society Events
CIP Society Seminars and Professional Development Courses
Surrey - CIP Society Golf Tournament ..................................................... June 3
Toronto – Essential Management Skills .............................................................................May 17-19
Uxbridge - CIP Society Fellows’ Golf Tournament ........................... June 6
Ottawa - Ottawa Fury Game ......................................................................June 11
ADVANTAGE Live Webinar: The 3 D’s changing customer expectations ...............June 2
in the insurance industry: Digital, Data, and Demographics
Victoria - CIP Society Golf Tournament ................................................June 22
Edmonton - Essential Management Skills............................................................................ June 7-9
Edmonton – CIP Society 28th Annual Golf Fun Day .......................July 18
Ottawa - CIP Society Spring Luncheon - MVA: ....................................................................June 14
The Future of Accident Reconstruction
Calgary - Lie to Me Interview Essentials and Linguistic Lie Detection .................June 22
Looking for information and research on the latest trends in the p&c industry?
Go to insuranceinstitute.ca and visit the CIP Society’s INFORMATION SERVICES section
for a free online library of Trends Papers, with topics like Uber, Airbnb, and Drones.
Joining
Forces
The consolidation trend continues in the property and casualty
market in Canada, as carriers seek new product lines and
distribution channels. But a sound integration plan, including
technology, legal and actuarial processes, is just as important
as selecting an acquisition target.
Janice
Deganis
Canadian Insurance
Leader,
EY
Ron Stokes
Canadian
Financial Services
Transactions
Leader,
EY
The fragmented property and casualty industry
in Canada continues on its consolidation track.
This has implications for all of the players in the
industry, whether they are acquiring, divesting
or simply trying to compete with increasingly
larger competitors.
Canadian p&c carriers operate in an ultracompetitive market, with ongoing pressure on
margins. Competition on price, the continuing
outlook for low investment yields and other factors impacting profitability have once again put
the spotlight on expense efficiency.
Many business models will not be sustainable
unless management teams can find ways to cut
costs. This pressure is leading many groups to
improve margins by merging.
The results of Ernst & Young (EY)’s latest Capital Confidence Barometer, indicates Canadian executives overall report renewed optimism about the
Canadian economy and a healthy sustainable
outlook of the mergers and acquisitions (M&A)
market. With 61% of Canadian respondents
expecting to pursue acquisitions in the next
12 months, Canada is the most bullish in the
Americas and well ahead of the 50% of global
respondents. Further strengthening the outlook
on the Canadian M&A market is that 54% of respondents report that acquisitions are on the agendas
of their boards of directors compared to only 5%
from six months ago.
Looking at the insurance sector, based on 2014
direct premiums written, Canada’s five largest
insurers accounted for approximately 47% of
the market — fragmented in comparison to
Canada’s banking and life insurance sectors. The
combined share of the top five players in those
businesses ranges from 65% to 75%. Consolidation in the Canadian p&c market will continue
in 2016 and beyond. Over the last three years
the market has been consolidating as the largest
players continue to acquire competitors and the
trend continues in 2016.
Omni-channel approach
Insurers need to think about where they might
have gaps in their business and if filling those
gaps with M&As is possible. Recent acquisitions
have shown that large insurers, rather than starting from scratch, are looking to add to their distribution channel mix through acquisitions. The
goal of those buyers is to have an omni-channel
approach. Through M&As, insurers can improve
product offerings or underwriting teams; improve data collection activities; and add run-off
operations to leverage stronger balance sheets
and claim settlement capabilities.
anada
1%
4%
3%
8%
9%
right expertise to properly weigh its
options, plan and execute seamless integration, and preserve value by avoiding
business disruption.
Why use Fintech?
The top reasons FinTech users give
Easy to set up an account
43.4%
43.8%
sound integration
Carrying out a transaction, even a megadeal, does not, in and of itself, create
transformation. Transactions simply cre20.4%
ate the conditions for transformation to
Access to different
12.4%
occur.
products and services
Why use Fintech?
13.6%
Transformation requires a fundamental re-evaluation of how the combined
11.2%
reasons FinTech users givebusinesses will operate after the deal. It
Better online experience The top
7.4%
and functionality
is a lot more
than a standard acquisition
Easy to set up an account
43.4%
and
integration
process. These challeng10.3%
43.8%
Better quality of services
es
are
multiplied
when M&A activity
9.9%
crosses
borders
or
regulations change
15.4%
More attractive rates/fees
during
an
acquisition.
That is why the
5.5%
More innovative products than
20.4%
creation of a sound integration plan
available from traditional bank
4.3%
Access to different
12.4%— weaving together finance, IT, legal,
Greater level of trust than with products
1.8%
actuarial and other internal processes
and services
13.6%
traditional institutions 0.6%
— is just as important as choosing the
11.2%right target in an insurer’s M&A strategy.
Better online experience
A successful M&A depends on having
7.4%
and functionality
Note: Respondents selected the most important reasons
the right due diligence team involved
10.3% throughout the transaction lifecycle.
Better quality of services
9.9% This includes actuarial support to idenCompanies that develop well-thought- of acquisition opportunities, with 88%
out integration plans can reduce costs of respondents reporting that they have tify the key risk areas, financial exper5.5%
More innovative
than
walked awayproducts
from a proposed
transacand achieve back-office synergies
tise to identify risks and items impactavailable
from
traditional
bank
tion. When looking at recently completthrough acquisitions.
ing enterprise value, an appropriate tax
4.3%
Some p&c carriers are acquiring other ed transactions, Canadian respondents team to structure the deal effectively, IT
Results
survey
of senior
executives
from
large
companies
Greatercited
level
of trust
than
with
1.8%
failure
to achieve
synergies
as the experts to allow for proper integration,
firms in of
order
to increase
economies
traditional
institutions
0.6%not regulatory experts aware of upcomof scales, diversify geographic concen- primary reason for a transaction
Global
tration, enter into new markets and meeting expectations.
ing changes and future considerations
Expect to create jobs / hire talent in the next 12 months
28%
To counter this, there is an increased across all countries involved, support
product lines, acquire new distribution
Note: Respondents
selected
the most important reasons
Say discussion
about sell
acquisitions
have been
elevated
to
the boardroom
agenda
focus
on due diligence
and pre-closing 28%
channels,
unprofitable
businesses
during the negotiation phase, integraBelieve that
valuation
gap (i.e. gap between buyer integration
and seller expectations)
is lesslook
thanto
10%
work, as buyers
get 52%
andthe
create
new alliances.
tion planning and management asit
right
before
completing
a
transaction.
EY’s
Capital
Confidence
Barometer
notes
sistance, and financial and operational
Are willing to walk away from deals
85%
Whatever the purpose of the acquisi- restructuring experts. It is imperative
that Canadians are being more disciLikely to pursue a cross-border acquisition opportunity in the next 12 months
74%
plined and prudent in their evaluation tion, it is vital that a company has the that, post-merger, management teams
More attractive rates/fees
15.4%
rom EY Canada’s latest Capital Confidence Barometer, released May 2016
Results of survey of senior executives from large companies
Canada
Global
61%
Expect to create jobs / hire talent in the next 12 months
28%
54%
Say discussion about acquisitions have been elevated to the boardroom agenda
28%
83%
Believe that the valuation gap (i.e. gap between buyer and seller expectations) is less than 10%
52%
88%
Are willing to walk away from deals
85%
79%
Likely to pursue a cross-border acquisition opportunity in the next 12 months
74%
From EY Canada’s latest Capital Confidence Barometer, released May 2016
continue to look closely at the strategic
objectives of the deal and ensure that
they are pulling all of the levers available
to achieve the target end state.
Face it: not every insurer can jump
on the M&A trend. Whether it is better
to build than buy, a lack of capital, or
lack of appropriate gap-filling targets,
insurers that do not acquire other firms
will need a strategy to compete more
effectively against larger, better capitalized companies.
Hiring people will become paramount, as will accessing distribution
that provides high-retention, profitable
business.
Smaller insurers will be forced to cut
costs to compete against larger insurers.
Examples of cost-containment strategies could include system upgrades,
process automation and claims strategic sourcing.
Focusing on improving the customer
experience is also an important growth
lever. Accelerating growth begins by
moving from a transactional to a relationship view of the customer. Rather
than focusing on the number of products customers buy, insurers should
weigh the strength and length of their
customer relationships.
Personalizing sales and marketing strategies and enriching the customer experience is critical to making
this shift, which insurers are driving
through better use of data and analytics.
Learn from fintechs
Traditional insurance firms can also
learn from the approach of fintechs in
the customer proposition and using
technology to deliver value and convenience. Identifying which customers
are most at risk from the new competition — and developing new products and services to retain them — is
a must.
It is important to note that although
some insurers will be seen as vulnerable
to takeovers given all of the M&A activity in 2016, others should look to take
advantage of it. Companies that divest
of non-core areas could potentially be
seen as a good fit for an acquirer. This
insBlogs
could help raise the capital required to orities in this rapidly evolving environemploy a more effective competition ment. The M&A strategy is just one of
strategy. But in order to be successful, those components. Ensuring a company
companies that diversify their busi- has the organizational capacity to take
nesses, with options other than M&As, on another initiative is critical to the
need to be just as well-thought-out as success of whichever M&A strategy is
companies that are acquiring — from selected. Reviewing all company prioriplanning, to implementation, to track- ties and building the capacity to be able
ing progress and financial results.
to effectively handle each of these conInsurers haveInsurance
many competing
priflicting
priorities is paramount.
Blogs hosted by Canadian
Underwriter
insBlogs
Recent Blog Posts Featured on
insBlogs.com
The launch of Sonnet Insurance.
A game changer?
by Peter Morris – May 10
Sneak Peek: Cyberrisk and Cyberinsurance
by Christian Bieck – May 9
SCC Dismisses Leave Applications in Loss
Transfer Laches Cases
by Daniel Strigberger – May 5
A new age of supply chain disruption
by Glenn McGillivray – Apr 28
Benefit Cuts Lead To Modest Rate Reductions
by Willie Handler – Apr 26
A great opportunity to show the value
brokers can offer consumers
by Peter Morris – Apr 14
ONCA Clarifies Discoverability in Limitation
Periods
by Daniel Strigberger – April 6
Our storm sewers can’t handle today’s
extremes, they never really could
by Glenn McGillivray – Apr 1
ONSC: Excluded Driver is Not a Listed Driver
for SABS Coverage
by Daniel Strigberger – Mar 23
MOVES & VIEWS
upcoming events: for a complete list visit
www.canadianunderwriter.ca
and click ‘my events calendar’ on the home page
1
Former British
Columbia cabinet
minister Barry Penner
(1) was appointed chair of
the Board of Directors for
the Insurance Corporation of
B.C. as of March 31. Most
recently senior counsel and
strategic advisor for Penner
Pacific Advisory Services,
Penner has served as the
province’s environment
minister, attorney general,
minister of aboriginal relations and reconciliation and
deputy house leader. Penner,
whose appointment runs to
March 31, 2019, replaces
Ronald Olynyk, who has
served as interim chair since
December 31.
2
Zurich Canada has
named Patrick Healey
[2] as senior vice
president of distribution and
regional management, effective May 1. Toronto-based
Healey, who will work with
members of the company’s
Canadian senior management
team, will be responsible for
leading and managing broker
relationships. Among other
positions with the insurer,
he has been vice president
and national segment head
for Zurich North America’s
Commercial Markets
business unit.
3
Linda Regner Dykeman
assumed responsibilities on April 18 as
head of mid-corp, Canada
for Allianz Global Corporate
& Specialty (AGCS), Allianz
Group’s dedicated carrier for
the corporate and specialty
insurance business. Based in
Toronto, Dykeman oversees
more than 20 underwriters
in her new role, the company
reports. She joins AGCS from
Travelers Canada, where she
served as head of business
insurance, responsible for
Canada’s business insurance
strategy.
4
In late March, insurance software provider
Vertafore announced
the closing of the acquisition
of Keal Technology, a
Concord, Ontario-based
provider of broker and commercial management systems
in Canada. Keal Technology
president Patrick Durepos [4]
will work directly with Greg
Wright, senior vice president
of agency and carrier solutions for Vertafore. Durepos
will focus on specialized
product development. Keal
will continue to maintain its
own brand and identity.
5
ClaimsPro has
announced Fred Plant
[5], current senior
vice president (SVP) of the
company’s Atlantic region,
will take on tasks in the newly
created national role of SVP
of London Open Market.
Reporting to president Ross
Betteridge, Plant will focus
1
2
8b
9
on field adjusting services
for the open market insurance offerings of Lloyd’s,
notes a ClaimsPro statement.
Plant is also president of
the Canadian Independent
Adjusters’ Association. In his
new role at ClaimsPro, Plant
will work to expand the firm’s
offerings to Canadian brokers.
As part of the company’s new
organizational structure for
the region, ClaimsPro has
further announced Wayne Guy
will resume full accountability
of Atlantic Canada operations
as vice president of operations, Atlantic Canada; Peter
Gormley will serve as district
manager, New Brunswick
West; Calvin Roberts will
be district manager, New
Brunswick East and Prince
Edward Island; and Michael
Connolly takes on the role of
branch manager, overseeing
the Nova Scotia offices of
Halifax and Coldbrook, following the retirement of Peter
Christensen.
6
Slice Labs Inc. has recently named Michael
B.C. Fitzgibbon as its
vice president of insurance
services and chief underwriting officer. Fitzgibbon has
28 years of experience as an
underwriter and broker. He
has held senior leadership
positions with Marsh, has coowned and was president of
a regional independent insurance agency, and has been
an underwriting and product
manager at CNA, reports
New York-based Slice. He
will lead product and policy
MOVES & VIEWS
MOVES & VIEWS
of Calgary; Gordon Adams;
Robert Cartwright, Jr.;
Al Gorski; Leslie Lamb; John
Phelps; Michael Phillipus;
Frederick Savage; and Lori
Seidenberg.
3
4
9
positions have included general
adjuster, branch manager,
10a
vice president of operations
development,
underwriting,
and
Lloyd’s Division
leader.
actuarial and insurer engagement, company statement
adds. Macdonald Chisholm
6
7
Trask Insurance (MCT)
BrokerLink’sinacquisiannounced
early
&
Januarytion
thatofitBerglund
will join propDubray
Insurance
erty and
casualty
brokerage
Services Inc.
establishes
BrokerLink.
The
terms of the
its
service
footprint
the
transaction were not in
disAlberta
communities
of
closed, notes a statement
Edson
and Hinton.
Sonny
from
BrokerLink.
BrokerLink
Bennett,
president
of
companies, subsidiaries of
Berglund
& Dubray
Insurance
Intact
Financial
Corp.,
Services,
herserving
team
include
84“and
offices
will be in
vital
in helping
us
clients
Atlantic
Canada,
serve
the
local
needs
of
Alberta and Ontario. Dating
customers,”
says
back
more than
60Keith
years,
Jerke,
head
of
Alberta
forinMCT has more than 110
BrokerLink.
BrokerLink
surance professionals in has
18
also acquired
four
brokeroffices.
Michael
Brien,
who
agesled
in MCT
Ottawa,
has
overoperating
the last 12
as Beardsley
Laundy Finnie
years,
joins BrokerLink
as
Group
The group
will
head
ofLtd.
its Atlantic
operations.
5
5
10
7
10b
Carolyn Snow [7] will
lead RIMS as president
join BrokerLink
as part
of
for the 2014
term,
four
separate
transactions,
which took effect January 1.
meaning
it will
Snow, who
has acquire
been onthe
the
business
operations
of G.K.
RIMS Board of Directors
for
Finnie
& Son isInsurance
seven years,
currentlyLtd./
diCampbell
& Moore
Insurance
rector of risk
management
for
Ltd.,
McGuire
& Laundy
Humana
Inc. She
previously
Insurance
Brokerstreasurer,
Ltd.,
served as RIMS’s
Beardsley
Insurance
secretary and directorBrokers
of
Ltd.,
andaffairs.
David Morris
external
The RIMS
Insurance
Management
Ltd.,
board for 2014
also includes
all
of
which
operate
out
vice president Richard of
aRoberts,
single location
in Ottawa.
Jr.; treasurer
Julie
David
Finnie,corporate
Phil Laundy,
Pemberton;
secreGord
Beardsley
and David
tary Nowell
Seaman,
director
Morris
willrisk
joinmanagement
BrokerLink for
of global
as
account
executives,
Potash
Corporation
of and
BrokerLink
will
welcome
15
Saskatchewan Inc.; Gloria
employees.
Brosius; Steve Pottle, director
8
of risk management services
Co-operators
has
at YorkThe
University;
Jennifer
welcomed
two new
Santiago;
Janet Stein,
direcdirectors,
both from
tor of risk
management
and
Alberta,
to at
thethe
insurance
and
insurance
University
8
As of January 8,
Toronto insurance broker Jones DesLauriers
Insurance Management Inc.
8a
(JDIMI) had acquired Whitley
Insurance and Financial Serfinancial
services
co-oper-has
vices. Whitley
Insurance
ative’s
of Directors.
offices Board
in Belleville,
Ontario
Hazel
Corcoran
(8a)
and
and the nearby communities
Bob
Petryk
(8b)
will
of Trenton, Deserontoreplace
and
retiring
Dave Abel
Stirling.directors
“The acquisition
is
and
AlberttoDe
Boer.
Corcoran
expected
build
a solid
is
the executive
director
of
presence
for JDIMI
in Eastern
the
Canadian
Worker the
Co- firm
Ontario
and position
operative
Federation.
to better service
their Petryk
clients,
has
managingcommerdirector
withbeen
strengthened
of
Petwin
Bancorpinsurance
Inc. for
cial
and personal
15
years
and
serves
onand
the a
offerings in the region
board
of
Credit
Union
Central
new financial services diviof
Alberta
(CUCA).
sion,”
notes
a statement from
9
JDIMI. President and CEO
Restoration
ShawnFirstOnSite
DeSantis will
lead the
has
reached
a
teams LP
from
both
companies.
definitive
asset
purLoris Clarke
[8] has
been
chase
Texasnamedagreement
successor with
to Paul
based
Interstate
Restoration
Whitley, president of Whitley
LLC,
in which
will
Insurance,
whothe
willlatter
remain
acquire
the
former.
Terms
during a transition period.
of the agreement, subject
to court approval, were not
disclosed,
Kenreports
RaynerFirstOnSite
[9] has
Restoration
Inc., the
joinedG.P.
Anderson
generalMcTague
partner of
& FirstOnSite
Associates
Restoration
LP.
Joining
forces
Ltd. as its director of busiwill
produce
North
America’s
ness development, Central
second
independent
Region.largest
“Ken brings
a wealth
restoration
and
of experience toreconstruction
our comservice
provider.
pany, having
held“Interstate
various
Restoration
complements
senior management
positions
our
service,”
says
withCanadian
insurers and
other MGAs,”
9
says Chuck McTague,
president of Anderson McTague & Associates, a familyowned MGA based in New
Dave
DemosIn[9],
chief exBrunswick.
January,
Anecutive
officer of &
FirstOnSite
derson McTague
Associates
Restoration.
announced itThe
wastransaction
expanding,
will
be implemented
by
adding
an office in Toronto
to
way
of
proceedings
under
service the brokers of Ontario
the
Creditors
andCompanies’
Manitoba. Rayner’s
Arrangement
Act
and isthe
appointment confirms
expected
to
close
in less to
company’s “commitment
than
two
months.
the Ontario/Manitoba marketplace, and to the building of
FIRST
Insurance
a local support
team
to assist
of
brokers withFunding
their surplus
Canadatorecently
lines and difficult
place
welcomed
Alex
Husain
[10a]
business,” McTague
adds.
as its new relationship
manager, Alberta and
Prairies, and The
Sébastien
Guarantee
Hamel [10b]Company
as its relaof
tionship manager,
North Atlantic
America
Provinces.
With that
moreTara
than
has announced
20
years
of
industry
experiWishart [10] became vice
ence,
Husain’s
“strength
president
of claims
for the
in
relationship
manageinsurer’s Toronto branch on
ment
and brand
marketing
December
2, 2013.
Having
combined
with
his
ability
21 years of experience
in to
The
adopt
innovation
and collaboGuarantee’s
claims
ration
to build
a competitive
department,
Wishart
will be
advantage
responsiblefor
forhis
theclients
operations
make
a valuable
of the him
Toronto
Branchasset
Claims.
for
our
broker
partners
in his
She first joined The Guaranregion,”
notes
a
statement
tee in 1995 as an adjuster
from
the held
company,
which
and has
roles of
increasprovides
payment
products
ing seniority with the comfor
insurance
providers.
pany,
including,
most
Hamel,
his part,
bringsfor
recently,for
claims
manager
to
his postlines.
moreWishart
than eight
specialty
is a
years
of
sales
experience
member of both the Surety
with
technological
organizaAssociation
of Canada
and
tions
within
the
insurance
the Canadian Association of
industry.
Women in Construction.
10
10
Follow @CdnUnderwriter on
http://twitter.com/CdnUnderwriter
February 2014 Canadian Underwriter
57
APPOINTMENT
GALLERY
Joseph El-Sayegh
SCOR is pleased to announce the
appointment of Mr. Joseph El-Sayegh
as President and Chief Executive
Officer, SCOR Canada Reinsurance
Company.
Mr. El-Sayegh joined SCOR Canada
in 2000. His prior responsibilities at
SCOR include Property & Casualty
Chief Underwriting Officer for Canada, underwriting manager for the
Québec market and Risk Manager for
SCOR Canada. Prior to joining SCOR
in 2000, he was Branch Manager for
Property Facultative in the MiddleEast for Gen Re; and Underwriter
and Loss Prevention engineer for FM
Global in Montréal.
Joseph holds a Bachelor of Engineering degree from the Ecole Polytechnique de Montréal in addition to
being a Chartered Insurance Professional (CIP) and CRM.
SCOR Canada Reinsurance Company
operates in Canada and is part of the
SCOR group, the fifth largest reinsurer
in the world. SCOR has a worldwide
network of over 2,000 professionals
operating from 38 offices across 5 continents structured around 4 Hubs.
www.scor.com
WINMAR Toronto/Brampton,
Burlington/Hamilton, Durham,
Guelph/Orangeville, Markham,
Newmarket, Oakville/Mississauga
hosted “The Better Late Than Never
Christmas Party” in support of Wounded
Warriors at The Real Sports bar in
Toronto February 18, where $3,000
was raised. Guests enjoyed great
food and drinks, prize giveaways and
watched the Leafs take on the New
York Rangers.
APPOINTMENT
GALLERY
RSA Canada hosted a series of
Strategy Sessions this spring in
Toronto, Calgary, Vancouver and
Montreal. The events provided an
opportunity for RSA’s executive team
– Rowan Saunders, Donna Ince
and Martin Thompson – to engage
with its closest broker partners in
each market. They presented results
of RSA’s transformation in 2015,
shared insights on the future of the
insurance industry, and unveiled
RSA’s plans for 2016.
Neil Ringrose
SCOR is pleased to announce the appointment of Mr. Neil Ringrose as Senior
Vice President, Canadian National Manager - Business Solutions, SCOR Canada
Reinsurance Company and Chief Agent,
SCOR Insurance – Canadian Branch,
SCOR UK Company Limited.
Mr. Ringrose joined SCOR Canada in
1997. Prior to the promotion, Neil was
Vice President, Canadian National Manager - Business Solutions for SCOR Canada Reinsurance Company, overseeing the
Canadian large industrial risk facultative
operations, which included the development, underwriting and servicing of
the Company’s Canadian Business Solutions’ clients. Additionally, Neil has been
instrumental in co-leading the SCOR UK
Company Limited initiative to establish
SCOR Insurance – Canadian Branch in
Canada. Neil’s professional experience
prior to joining SCOR Canada included
senior executive sales and senior loss prevention engineering roles within large,
international insurance firms, in both
Canada and the UK.
Neil holds a Bachelor of Engineering degree from the Southampton University in
the UK.
SCOR Canada Reinsurance Company operates in Canada and is part of the SCOR
group, the fifth largest reinsurer in the
world. SCOR has a worldwide network of
over 2,000 professionals operating from
38 offices across 5 continents structured
around 4 Hubs.
www.scor.com
53
GALLERY
WICC Ontario held its 20th Gala
Dinner, “Unmasked – 20 Years of
Uncovering a Cure” on April 6 at
the Westin Harbour Castle Hotel
in Toronto. The evening’s emcee
was Don Martin (brother of Paul
Martin of RRJ Insurance Group), a
Canadian television and newspaper
journalist, and host of Power Play
on CTV News Channel. WICC
dinner co-chairs Laurel DiMaso and
Sandy MacSpadyen presented a
$200,000 cheque from WICC to
Patricia George and Susan Drodge of
the Canadian Cancer Society. WICC
co-chairs Ellen Moore and Marilyn
Horrick acknowledged WICC’s
Tribute Recognition initiative – the
seven WICC Tributes currently
established have raised more than
$115,000, including Tributes for
Leona Charbonneau, Cristina De
Vargas, Linda Hajekerou, Mary
Goodbrand, Jamie Knowles, Jim
McRae and Micki Traikos. Gold
Flame Awards, recognizing significant contributions to WICC, went to
Heartland Farm Mutual Insurance,
OIAA-Windsor and SPECS. The Hall
of Flame Award went to Enterprise
Canada Ltd. and the Lew Dunn
Memorial Award was presented
to Enterprise Canada Ltd. Now
celebrating its 20th Anniversary,
since WICC’s inception in 1996, the
Canadian p&c insurance industry
has raised more than $12.6 million
for cancer research.
GALLERY
55
GALLERY
Crawford & Company (Canada)
Inc. kicked off the RIMS (Risk &
Insurance Management Society)
2016 Conference & Exhibition with
its annual RIMS Conference Client
Event, which was held on April 9
at the House of Blues San Diego.
An enjoyable evening was had by
all, filled with live music by local
up-and-comer, Ryan Hiller, and an
array of tantalizing canapés and hors
d’oeuvres.
APPOINTMENT
GALLERY
On April 10, immediately following RIMS Opening
Reception in San Diego’s Gaslamp Quarter,
AIG held its RIMS 2016 Conference & Exhibition
Reception at Petco Park, home of the San Diego
Padres. Guests were treated to a true night at the
ballpark, complete with all the culinary fixings.
Lana Kelly
Insurance Woman of the Year 2015
The Canadian Association of Insurance Women is pleased to announce the 2015
Insurance Woman Of The Year has been awarded to Lana Kenny of the Nova
Scotia Insurance Women’s Association.
Over the past 29 years Lana has worked in personal and commercial lines, and
is an Account Executive Officer in the Select, Business Insurance Department
for Atlantic Canada at Travelers Canada.
Lana is a passionate insurance professional, a determined volunteer, a devoted
advocate for women and committed member of the Nova Scotia Insurance
Women’s Association and the Canadian Association of Insurance Women.
The Nova Scotia Insurance Women’s Association is a nonprofit association for
women and men, which promotes education, professional development, and
networking among its members.
The Canadian Association of Insurance Women is a national association that
provides a forum for insurance professionals to showcase their dedication to the
consumer and the industry through programs such as the Insurance Information
Campaign.
Lana’s own personal tragedy in her family motivated her to be an advocate to
eliminate violence again women.
In December 2005, Lana’s sister, Paula Gallant, a 36 year old mother and grade
three teacher, was murdered in a domestic violence incident.
Inspired by her sister’s life and legacy, Lana and her sister, Lynn have worked
to give a voice to the many women and victims who may not have, or no longer
have, the opportunity to have a voice. They have worked with politicians, the
public and the media to create awareness for the rights and needs of victims,
and bring justice for her sister, Paula. Lana was recognized in the legislature
and was awarded a Democracy 250 Award for her efforts in creating awareness
about violence again women.
Lana is also a full-time mom and along with her husband they are raising Paula’s
daughter, along with their two children, in Hammonds Plains, Nova Scotia.
The Insurance Woman Of The Year award is the highest honour given. Each
nominee is judged on her dedication to the Association (both CAIW and her
local Association), the Insurance Industry and the public.
www.caiw-acfa.com
57
GALLERY
More than 400 exhibitors filled
the Exhibit Hall at the RIMS 2016
Conference & Exhibition April 10 to13
in San Diego. Held at the San Diego
Convention Centre, the show floor
bustled with thousands of delegates
from throughout North America and
around the globe. The booths offered
unlimited opportunities for learning,
networking and sharing.
GALLERY
59
GALLERY
Canadian delegates of the RIMS
2016 Conference & Exhibition in
San Diego gathered with their U.S.
and international risk management
friends at Canada Night on April 12,
hosted by SCM Insurance Services
and the Canadian Litigation Counsel.
The event provided delegates a
chance to connect and network while
enjoying fine food, drinks, entertainment and a great Californian sunset.
GALLERY
61
APPOINTMENT
GALLERY
Jamie Lyons
Guardian Risk Managers Ltd. is pleased to
announce the appointment of Jamie Lyons
as President of Guardian Risk Managers
Ltd.
Jamie brings a wealth of insurance and
industry knowledge to the organization,
having spent the past 13 years with Guy
Carpenter & Company in Toronto (part
of Marsh & McLennan Companies), most
recently as Managing Director and a member of the Canadian Senior management
team. He previously held positions in merchant banking with Canadian Corporate
Funding Limited, in Investment Banking
with CIBC’s Mergers & Acquisitions Group
in Toronto and in Strategy Consulting with
Breakaway Solutions in Boston, MA.
In this role, Jamie will oversee all aspects
of the organization and will be responsible
for development and oversight of the strategic growth plan for Guardian.
Formed in 2006, Guardian is a leading
MGA provider of commercial lines and
niche personal lines products, including
specialty and high value habitational risks.
Guardian currently provides these products to over 500 brokerages across Canada.
ConTACT InFoRMATIon
Media Contacts:
Guardian Risk Managers Ltd.
David Lyons, Vice President,
Personal Lines
Phone: 604.522.8870
[email protected]
www.guardianrisk.com
More than 200 senior insurance
industry executives gathered in
Toronto for the Swiss Re 2016
Canadian Outlook Breakfast on April 6
at One King West Hotel in Toronto.
Attendees got their first look at the
Canadian p&c industry’s 2015 results
and learned about market trends,
economic factors and outlook for
2016. Speakers included Veronica
Scotti, the president and CEO of
Swiss Re Canada; Philip Ryan,
chairman, Swiss Re Americas Holding
Corporation; and David McGown,
senior vice president of strategic
initiatives for Insurance Bureau of
Canada.
SAVE THE DATE!
Annual WICC Québec
fundraising event to beneﬁt
the Canadian Cancer Society
TUESDAY
OCT
2016
25
C alm &
Le Windsor Hotel,
Montreal
Come relea
ﬂexibility w
help co
Uniting the industry
in the Fight for Life
Mont
Registration and payment:
wicc.ca/qc
For information:
Holly A. Moore
1 800 361 8200, ext. 5315
Jo-Anne Polidoro
1 800 361 8200, ext. 5242
Water is beautiful.
Until it isn’t.
Protection from overland water damage – brought to you first by Aviva*
Heavy rains
Spring run-off
Overflow from
lakes and rivers
avivawaterprotection.ca
Insurance – Home | Auto | Leisure & Lifestyle | Business | Surety
Aviva, proud Canadian partner to 1500 independent brokers from coast to coast.
Aviva and the Aviva logo are trademarks used under licence by the licensor.
*

to the May 2016 Digital Edition

Transcription

Similar documents

The Board of Directors of Qatar Fuel (WOQOD) is pleased to invite

View Full Story

media kit

Playdium is pleased to present our new Education Program

Annonce S1

Guide Map - Ontario Science Centre

The Northern Light - Canadian Red Cross

Colchester / East Hants Canadian Tire Jumpstart Chapter

attached pdf. - Department of English

Making Haste Slowly - Investing at TD TD Wealth