For the first time in more than six years, the U.S. composite commercial market has seen an average rate increase, signalling the end of the soft market, according to MarketScout.
Jumbo accounts, those worth more than $1 million, are the only segment of the market measuring a rate decrease. These accounts were down 1% in November 2011, MarketScout reported in its November 2011 ‘Market Barometer.'
All other classifications, either by coverage, industry group or account size, measured flat or up as compared to one year ago at this same time.
MarketScout added that the National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. The findings helped corroborate MarketScout's findings.
The following coverage classes saw the largest increases:
• Commercial property, 2%;
• Business Owner Policy (encompassing all major property and liability risks in one policy), 2%; and
• Workers' compensation, 2%.
Small accounts (up to $25,000) saw average rate increases of up to 2%. Medium accounts ($25,001-$250,000) saw an increase of 1%, MarketScout reported.
"After six years and eight months, the soft market cycle has finally broken," said MarketScout CEO Richard Kerr. "November 2011 is the first composite rate increase since the soft market began in February 2005."
Tuesday, December 20, 2011
Nearly 5-million Canadians admit to riding with a driver who had been drinking TEXT SIZE
Roughly 7% of Canadians surveyed admitted to being a passenger in a motor vehicle driven by someone who had been drinking any amount of alcohol on one occasion in the last month, according to the Traffic Injury Research Foundation (TIRF).
TIRF conducted a public opinion poll in September 2011 that investigated Canadians' behaviours and actions in relation to drinking and driving.
Another 6.7% of those surveyed indicated they had done so on two or more occasions - this corresponds to an estimated 2.3 million.
Adding the two above results together, the survey found a total of 4.7 million people rode with a driver who had been drinking.
Of the drivers who admitted to driving when they thought they were over the legal limit in the last 12 months, 42.2% reported doing so with a passenger in the vehicle.
TIRF conducted a public opinion poll in September 2011 that investigated Canadians' behaviours and actions in relation to drinking and driving.
Another 6.7% of those surveyed indicated they had done so on two or more occasions - this corresponds to an estimated 2.3 million.
Adding the two above results together, the survey found a total of 4.7 million people rode with a driver who had been drinking.
Of the drivers who admitted to driving when they thought they were over the legal limit in the last 12 months, 42.2% reported doing so with a passenger in the vehicle.
FSCO introduces two new processes to expedite mediation backlog
The Financial Securities Commission of Ontario (FSCO) has introduced two expedited processes in mediation in an attempt to ease the backlog that has formed.
In its December 2011 newsletter, FSCO describes the two new processes:
• Consent failures (the option to fail mediation on consent, without a mediation meeting); and
• Mandatory settlement ‘Blitz Days.'
With consent failures, FSCO is sending letters to the claimants and insurers on the oldest files awaiting assignment to a mediator advising of the option to fail the mediation upon mutual consent.
The parties will receive a ‘Consent to Fail Mediation Form' with the letter. It requires both parties to list the issues that remain unresolved and to jointly request that the mediation be failed. The form also requires the parties to confirm that they have made best efforts to resolve the dispute without success and that there is no reasonable prospect of a resolution if a meeting were to be held.
FSCO will then assign the form and any supporting document to a mediator who will review the file. If the mediator is satisfied best efforts have been made to resolve the dispute, and if the mediator believes a mediation meeting would not likely result in a resolution, then mediator will be able to close the file.
‘Blitz Days' are aimed at closing multiple files in a single day. They will be held once a week into January 2012.
FSCO will require claimant and insurer representatives with multiple common files that have not yet been assigned to a mediator to attend one or more settlement Blitz Days. FSCO will notify the parties' representatives of their common files and Dispute Resolution Services staff will book the meetings.
FSCO will then assign mediators to facilitate the sessions and record outcomes. At the end of the sessions, a Report of Mediator will be issued reflecting the outcome. Attendance at a Settlement Blitz Day is mandatory for both sides.
In its December 2011 newsletter, FSCO describes the two new processes:
• Consent failures (the option to fail mediation on consent, without a mediation meeting); and
• Mandatory settlement ‘Blitz Days.'
With consent failures, FSCO is sending letters to the claimants and insurers on the oldest files awaiting assignment to a mediator advising of the option to fail the mediation upon mutual consent.
The parties will receive a ‘Consent to Fail Mediation Form' with the letter. It requires both parties to list the issues that remain unresolved and to jointly request that the mediation be failed. The form also requires the parties to confirm that they have made best efforts to resolve the dispute without success and that there is no reasonable prospect of a resolution if a meeting were to be held.
FSCO will then assign the form and any supporting document to a mediator who will review the file. If the mediator is satisfied best efforts have been made to resolve the dispute, and if the mediator believes a mediation meeting would not likely result in a resolution, then mediator will be able to close the file.
‘Blitz Days' are aimed at closing multiple files in a single day. They will be held once a week into January 2012.
FSCO will require claimant and insurer representatives with multiple common files that have not yet been assigned to a mediator to attend one or more settlement Blitz Days. FSCO will notify the parties' representatives of their common files and Dispute Resolution Services staff will book the meetings.
FSCO will then assign mediators to facilitate the sessions and record outcomes. At the end of the sessions, a Report of Mediator will be issued reflecting the outcome. Attendance at a Settlement Blitz Day is mandatory for both sides.
Tuesday, December 13, 2011
Companies expect to use social media more often in the future, but most don't have plans to manage the risks TEXT SIZE
Companies expect to see corporate use of social media expand over the next year, including in marketing efforts, but many do not have a plan in place to deal with the risks.
Financial Executives Research Foundation Inc. (FERF), working in partnership with Grant Thornton LLP, developed a 23-question online survey and conducted in-depth interviews to produce a report, Social media and its associated risks.
One hundred and forty-one executives from public and private companies completed the survey, which was conducted during August and September 2011. Key interview findings indicate the speed with which social media has grown in the last five years caught many executives by surprise.
Almost half (48%) of the executives responding to the survey felt social media would be an important component of corporate marketing efforts going forward.
More than half (53%) of respondents predicted the corporate use of social media would increase significantly over the next 12 months.
And yet, companies clearly weren't yet prepared for the risks associated with the use of such media.
For example, more than three-quarters (76%) of respondent companies do not have a clearly defined social media policy.
And more than half (61%) of respondents indicated their organizations do not have an incident management plan to help them deal with instances of fraud and/or privacy breaches.
While many companies do have e-mail communication and technology usage policies, very few companies have policies that specifically address social media governance and risks.
Financial Executives Research Foundation Inc. (FERF), working in partnership with Grant Thornton LLP, developed a 23-question online survey and conducted in-depth interviews to produce a report, Social media and its associated risks.
One hundred and forty-one executives from public and private companies completed the survey, which was conducted during August and September 2011. Key interview findings indicate the speed with which social media has grown in the last five years caught many executives by surprise.
Almost half (48%) of the executives responding to the survey felt social media would be an important component of corporate marketing efforts going forward.
More than half (53%) of respondents predicted the corporate use of social media would increase significantly over the next 12 months.
And yet, companies clearly weren't yet prepared for the risks associated with the use of such media.
For example, more than three-quarters (76%) of respondent companies do not have a clearly defined social media policy.
And more than half (61%) of respondents indicated their organizations do not have an incident management plan to help them deal with instances of fraud and/or privacy breaches.
While many companies do have e-mail communication and technology usage policies, very few companies have policies that specifically address social media governance and risks.
Aviva and Hagerty partner to launch coverage for antique and classic cars
Aviva Canada Inc. and Hagerty Canada LLC have partnered to launch the ‘Hagerty Silver Wheel Plan.'
The plan offers Canadian antique and classic car enthusiasts extensive coverage, including agreed value coverage - with no appraisal requirements - and access to Hagerty's extensive network of products and resources in the United States.
As of Jan. 1, 2012, all Silver and Custom Wheel policies will be transitioned to the Hagerty Silver Wheel Plan upon policy renewal.
Current Silver and Custom Wheel clients will continue to receive all of the benefits afforded by their existing policy and there will be no changes to existing coverage.
The plan offers Canadian antique and classic car enthusiasts extensive coverage, including agreed value coverage - with no appraisal requirements - and access to Hagerty's extensive network of products and resources in the United States.
As of Jan. 1, 2012, all Silver and Custom Wheel policies will be transitioned to the Hagerty Silver Wheel Plan upon policy renewal.
Current Silver and Custom Wheel clients will continue to receive all of the benefits afforded by their existing policy and there will be no changes to existing coverage.
Travelers Canada launches cyber-risk coverage
Travelers Canada has launched a product designed to limit cyber exposures and manage associated risks.
‘CyberRisk' is the newest addition to Travelers Financial and Professional Services line. It's a standalone product with 10 coverage options that address exposures and the ripple effects associated with a cyber-related event.
Third party liability coverage includes network and information security liability; communications and media liability; and regulatory defence expenses.
First party coverage includes crisis event management expenses; security breach remediation and notification expenses; computer program and electronic data restoration expenses; computer fraud; funds transfer fraud; e-commerce extortion; business interruption and additional expenses.
A recent U.S. study found the average cost of a data breach in 2011 was $5.9 million. "The reality is that over 35% of data breaches are caused by employee negligence, from lost laptops to failure to erase hard drives off company computers prior to their disposal," said Jane O'Meara, assistant vice president of management and professional liability for Travelers Canada.
‘CyberRisk' is the newest addition to Travelers Financial and Professional Services line. It's a standalone product with 10 coverage options that address exposures and the ripple effects associated with a cyber-related event.
Third party liability coverage includes network and information security liability; communications and media liability; and regulatory defence expenses.
First party coverage includes crisis event management expenses; security breach remediation and notification expenses; computer program and electronic data restoration expenses; computer fraud; funds transfer fraud; e-commerce extortion; business interruption and additional expenses.
A recent U.S. study found the average cost of a data breach in 2011 was $5.9 million. "The reality is that over 35% of data breaches are caused by employee negligence, from lost laptops to failure to erase hard drives off company computers prior to their disposal," said Jane O'Meara, assistant vice president of management and professional liability for Travelers Canada.
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