Wildlife collisions are in the sights of Canadian insurers, particularly between March and June, when wildlife collisions are most frequent.
“The most costly result of these collisions is injury or even death of both the wildlife and the driver,” Aviva Canada notes on its website. “They’re more common than you’d think — a report from Transport Canada found that between four to eight large animal vehicle collisions take place every hour in Canada.”
The Wildlife Collision Prevention Program, an initiative led by the B.C. Conservation Foundation, has a website dedicated to education and prevention of wildlife collisions. It cites statistics showing that about one out of every 25 crashes in 2007 were wildlife crashes, costing B.C.’s public insurer more than $30 million.
Five B.C. drivers were killed in wildlife crashes in 2007 and another 449 were injured.
In addition to paying attention to the road and wildlife signs, Aviva Canada offers the following tips to reduce change of being involved in a wildlife collision:
• Stay in control of the vehicle: Never swerve abruptly, because hitting a tree or moving into oncoming traffic can result in significantly more harm than hitting the animal. Brake firmly if an animal is standing on, or crossing, the road.
• React: If you can’t avoid striking the large animal, be ready to duck inside your car. Big animals weighing well in access of 100 kilograms can come through your windshield and cause severe injuries.
Friday, March 16, 2012
Corporate board directors need to be aware of risk of data breaches in light of regulatory guidance on disclosing cyber threats
U.S. board directors need to be acutely aware of the risk of data breaches at their companies in light of recent regulatory guidance on disclosing cyber threats, according to speakers at a Willis-hosted cyber liability conference in London.
The U.S. Securities Exchange Commission (SEC) issued guidance on disclosing cyberthreats in October 2011.
“The SEC guidance is a useful wake-up call to the risks of data breaches for boards everywhere but [boards] now have a delicate balancing act,” Francis Kean of Willis Group Holdings told the audience on Mar. 13. “The problem with exposing cyber breaches is you don’t want to provide a route map to hackers or potential plaintiffs down the road, but you also don’t want to expose yourself to a shareholder class action.”
Kean stressed the need for boards to better understand emerging cyber threats.
“There is a whole universe of potential cyber risk not understood at a board level,” he said. “Their fiduciary duties require them to gain some understanding of the cyber threat faced by their companies and to ensure adequate and proportionate procedures are adopted to mitigate the consequences of a serious data breach.”
The SEC guidance was issued to address concerns that investors could not assess security risks properly if companies failed to disclose data breaches in their public findings.
Some of the SEC’s expectations about disclosure call for specifics: “A registrant may need to disclose known or threatened cyber incidents to place the discussion of cybersecurity risks in context,” the SEC guidance says.
“For example, if a registrant experienced a material cyber attack in which malware was embedded in its systems and customer data was compromised, it likely would not be sufficient for the registrant to disclose that there is a risk that such an attack may occur.
“Instead, as part of a broader discussion of malware or other similar attacks that pose a particular risk, the registrant may need to discuss the occurrence of the specific attack and its known and potential costs and other consequences.”
At another panel at the event, Jeremy Smith, Willis’ cyber liabilities practice leader, discussed the development of cyber liability insurance.
“The convergence of cyber coverage in recent years was largely due to a lack of sophisticated claims data and significant increases in cyber crime,” Smith said.
Now, however, Smith observed that brokers are now pushing for further innovation from the market and have managed to secure additional coverage for PCI fines, third party vendors and terrorism.
Also, advanced persistent threats (APTs), such as the Aurora virus and Nightdragon, are the next challenge for the insurance industry according to Smith. “APTs are sustained attacks designed to steal intellectual property over a number of years. The insurance industry hasn’t fully tackled this threat yet, but I hope that brokers and insurers will find a solution together in the future.” he said.
The U.S. Securities Exchange Commission (SEC) issued guidance on disclosing cyberthreats in October 2011.
“The SEC guidance is a useful wake-up call to the risks of data breaches for boards everywhere but [boards] now have a delicate balancing act,” Francis Kean of Willis Group Holdings told the audience on Mar. 13. “The problem with exposing cyber breaches is you don’t want to provide a route map to hackers or potential plaintiffs down the road, but you also don’t want to expose yourself to a shareholder class action.”
Kean stressed the need for boards to better understand emerging cyber threats.
“There is a whole universe of potential cyber risk not understood at a board level,” he said. “Their fiduciary duties require them to gain some understanding of the cyber threat faced by their companies and to ensure adequate and proportionate procedures are adopted to mitigate the consequences of a serious data breach.”
The SEC guidance was issued to address concerns that investors could not assess security risks properly if companies failed to disclose data breaches in their public findings.
Some of the SEC’s expectations about disclosure call for specifics: “A registrant may need to disclose known or threatened cyber incidents to place the discussion of cybersecurity risks in context,” the SEC guidance says.
“For example, if a registrant experienced a material cyber attack in which malware was embedded in its systems and customer data was compromised, it likely would not be sufficient for the registrant to disclose that there is a risk that such an attack may occur.
“Instead, as part of a broader discussion of malware or other similar attacks that pose a particular risk, the registrant may need to discuss the occurrence of the specific attack and its known and potential costs and other consequences.”
At another panel at the event, Jeremy Smith, Willis’ cyber liabilities practice leader, discussed the development of cyber liability insurance.
“The convergence of cyber coverage in recent years was largely due to a lack of sophisticated claims data and significant increases in cyber crime,” Smith said.
Now, however, Smith observed that brokers are now pushing for further innovation from the market and have managed to secure additional coverage for PCI fines, third party vendors and terrorism.
Also, advanced persistent threats (APTs), such as the Aurora virus and Nightdragon, are the next challenge for the insurance industry according to Smith. “APTs are sustained attacks designed to steal intellectual property over a number of years. The insurance industry hasn’t fully tackled this threat yet, but I hope that brokers and insurers will find a solution together in the future.” he said.
Friday, March 2, 2012
Drivers aged 56-60 pay less for auto insurance than 41-45 age group - unless they live in Ontario
Canadian drivers in the 56-60 age category can pay an average of up to $15 per month less for car insurance premiums than younger drivers in the 41-45 age bracket — unless you live in Ontario.
InsureEye Inc., a Canadian company providing independent online services to help consumers better understand and manage their insurance, found that Ontario drivers in the 56-60 age group pays roughly the same ($144 per month) as the 41-45 group ($146 per month).
“Interestingly, Ontario premiums are stuck in the past,” InsureEye Inc. said in its analysis. “The 56-60 group in Ontario hardly saves in comparison with the 41-45 crowd, and still pays around $144/month.”
Overall, Canadians’ average auto insurance premiums decrease by approximately 15% during a lifetime.
InsurEye’s study showed an average Canadian in the 25-30 age bracket pays $130 per month for auto insurance, with men paying $140 and women spending $123 monthly. Costs vary across provinces, and in Ontario the average premium for this youth segment was as high as $163 per month.
As might be expected, as drivers become more experienced, their premiums decrease. The study found drivers in the 41-45 age bracket paid an average of $115 per month for auto insurance, with the men paying $117 per month and the women paying $113 per month.
In the 56-60 age category, premiums across Canada averaged $108 monthly — $109 for men and $108 for women
InsureEye Inc., a Canadian company providing independent online services to help consumers better understand and manage their insurance, found that Ontario drivers in the 56-60 age group pays roughly the same ($144 per month) as the 41-45 group ($146 per month).
“Interestingly, Ontario premiums are stuck in the past,” InsureEye Inc. said in its analysis. “The 56-60 group in Ontario hardly saves in comparison with the 41-45 crowd, and still pays around $144/month.”
Overall, Canadians’ average auto insurance premiums decrease by approximately 15% during a lifetime.
InsurEye’s study showed an average Canadian in the 25-30 age bracket pays $130 per month for auto insurance, with men paying $140 and women spending $123 monthly. Costs vary across provinces, and in Ontario the average premium for this youth segment was as high as $163 per month.
As might be expected, as drivers become more experienced, their premiums decrease. The study found drivers in the 41-45 age bracket paid an average of $115 per month for auto insurance, with the men paying $117 per month and the women paying $113 per month.
In the 56-60 age category, premiums across Canada averaged $108 monthly — $109 for men and $108 for women
Friday, February 17, 2012
OSFI releases updated instructions for filing unpaid claims and loss ratio analysis electronically
The Office of the Superintendent of Financial Institutions (OSFI) has released updated instructions for insurers in filing Unpaid Claims and Loss Ratio Analysis Exhibit data through the automated data transfer system.
The only change from prior years is a revision in the file names, OSFI said in a letter. Both insurers and reinsurers are now asked to use the same naming convention.
For insurers using the PricewaterhouseCoopers software, files with the correct names will be automatically created.
Instructions published by the Autorité des marches financiers should be consulted for guidance on filing the Unpaid Claims and Loss Ratio Analysis Exhibit data with the Autorité.
The only change from prior years is a revision in the file names, OSFI said in a letter. Both insurers and reinsurers are now asked to use the same naming convention.
For insurers using the PricewaterhouseCoopers software, files with the correct names will be automatically created.
Instructions published by the Autorité des marches financiers should be consulted for guidance on filing the Unpaid Claims and Loss Ratio Analysis Exhibit data with the Autorité.
Online surveillance legislation latest development in ever-evolving cyber liability risks
Recent legislation tabled in the House of Commons on Feb. 14, would allow law enforcement to monitor consumers’ telecommunications and Internet usage and reminds underwriters that the area of cyber liability is constantly evolving and far reaching, said Lynn Oldfield, president and CEO of Chartis Insurance Canada.
Oldfield offered the keynote address during the Property Casualty Underwriters Club luncheon in Toronto on Feb. 15.
“There is a raging debate in this country right now about new legislation [Bill C-30, ‘The Protecting Children from Internet Predators Act’] that has just been introduced on the [House of Commons] floor that would give police in this country more access to your cell phone records and your telecommunications lines, so that they can adequately protect our children against Internet pornographers and child predators,” she said.
The privacy commissioner has weighed in, claiming that the powers granted under the proposed legislation are far too intrusive under Canada’s robust privacy laws.
“So folks, this is an evolving area — literally, with major developments this week. And we don’t know where Canada is going to land with this new legislation, but it behoves us as risk underwriters to understand the issues, educate ourselves and stay current.”
Oldfield offered the keynote address during the Property Casualty Underwriters Club luncheon in Toronto on Feb. 15.
“There is a raging debate in this country right now about new legislation [Bill C-30, ‘The Protecting Children from Internet Predators Act’] that has just been introduced on the [House of Commons] floor that would give police in this country more access to your cell phone records and your telecommunications lines, so that they can adequately protect our children against Internet pornographers and child predators,” she said.
The privacy commissioner has weighed in, claiming that the powers granted under the proposed legislation are far too intrusive under Canada’s robust privacy laws.
“So folks, this is an evolving area — literally, with major developments this week. And we don’t know where Canada is going to land with this new legislation, but it behoves us as risk underwriters to understand the issues, educate ourselves and stay current.”
Toronto, Niagara police lay 500 charges in connection with investigation of alleged chop shop operation
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2012-02-16
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Toronto and Niagara Regional Police have laid more than 500 charges against five men in connection with an investigation of an alleged chop shop operation.
The charges follow a joint forces investigation first launched in 2009 involving the Toronto Police Service, Ontario Provincial Police, Niagara Regional Police Service and the Ministry of Transportation of Ontario Enforcement Unit.
The project targeted the alleged fraudulent issuance of structural certificates for rebuilt vehicles and the selling of those salvaged vehicles. The charges have not been proven in court.
Police say the owners of two Toronto body shops, Downtown Collision and Car Care Centre, applied to the Ministry of Transportation to become Structural Inspection
Stations and were granted certification. Both owners entered into an agreement with an insurance appraiser, who provided them with structural certificates.
Police say the appraiser attended various locations and conducted improper structural inspections of vehicles, even though he was not qualified to conduct such inspections. The appraiser would then have the shop owners sign papers saying the inspections were conducted.
According to police, some of the inspected vehicles were stolen and assigned new Vehicle Identification Numbers (VINs). Some of the vehicles were re−inspected and found not to have met safety requirements.
Police say the shop owners split the financial profits from the re-sale of the inspected vehicles.
Charged are John Keen, 51, of Toronto; Giovanni Bellisario, 53, of Toronto; Osvaldo Savia, 57, of Toronto; David De Oliveira, 33, of Toronto; and Gabor Toth, 39, of Toronto.
2012-02-16
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Toronto and Niagara Regional Police have laid more than 500 charges against five men in connection with an investigation of an alleged chop shop operation.
The charges follow a joint forces investigation first launched in 2009 involving the Toronto Police Service, Ontario Provincial Police, Niagara Regional Police Service and the Ministry of Transportation of Ontario Enforcement Unit.
The project targeted the alleged fraudulent issuance of structural certificates for rebuilt vehicles and the selling of those salvaged vehicles. The charges have not been proven in court.
Police say the owners of two Toronto body shops, Downtown Collision and Car Care Centre, applied to the Ministry of Transportation to become Structural Inspection
Stations and were granted certification. Both owners entered into an agreement with an insurance appraiser, who provided them with structural certificates.
Police say the appraiser attended various locations and conducted improper structural inspections of vehicles, even though he was not qualified to conduct such inspections. The appraiser would then have the shop owners sign papers saying the inspections were conducted.
According to police, some of the inspected vehicles were stolen and assigned new Vehicle Identification Numbers (VINs). Some of the vehicles were re−inspected and found not to have met safety requirements.
Police say the shop owners split the financial profits from the re-sale of the inspected vehicles.
Charged are John Keen, 51, of Toronto; Giovanni Bellisario, 53, of Toronto; Osvaldo Savia, 57, of Toronto; David De Oliveira, 33, of Toronto; and Gabor Toth, 39, of Toronto.
Thursday, February 9, 2012
Direct writers likely to be first to use social platform for selling insurance: Celent
The first U.S. property and casualty insurer to use a social networking site as a platform for its business will likely be a direct writer that offers personal auto, motorcycle or dwelling insurance and not necessarily one of the biggest insurers in the market, Mike Fitzgerald, a senior analyst at Celent, wrote on his Feb. 3 blog.
In his blog post, Which U.S. P&C insurance company will be the first to use a social network as a platform to transact insurance?, Fitzgerald listed key characteristics he believed the first P&C insurer to use a social network site for selling insurance would possess.
Facebook's initial public offering on Feb. 1 prompted the blog post. The vision of Mark Zuckerberg, the founder of Facebook, is reportedly to establish the site as a platform on which people can actually complete their commercial transactions.
According to Fitzgerald, key characteristics would include:
• A commoditized product like personal auto, motorcycle or home insurance, where price and service separate the offerings.
• Companies that are targeting consumers currently most comfortable using social networking platforms. Such consumers are typically irritated by traditional insurance distribution and not as concerned about personal privacy.
• Insurers with intermediated distribution will pass on using the platform. "Upsetting their existing agents with a direct social network approach will be too much to bear," Fitzgerald wrote.
• Insurers that have a reputation for being innovative will be more likely to reach acceptable terms with the platform provider.
• Although the first insurer to use a social network may not be the largest, it will still need to meet the network provider's "steep rent."
• "The most likely insurer, in my view, is one that has a good reputation with the regulators and a decent reputation at addressing their concerns in past market conduct reviews and inquiries," Fitzgerald wrote. "As the response of regulation to this new way of doing business is such an unknown, the company willing to take this step will be confident in its ability to respond to its overseers
In his blog post, Which U.S. P&C insurance company will be the first to use a social network as a platform to transact insurance?, Fitzgerald listed key characteristics he believed the first P&C insurer to use a social network site for selling insurance would possess.
Facebook's initial public offering on Feb. 1 prompted the blog post. The vision of Mark Zuckerberg, the founder of Facebook, is reportedly to establish the site as a platform on which people can actually complete their commercial transactions.
According to Fitzgerald, key characteristics would include:
• A commoditized product like personal auto, motorcycle or home insurance, where price and service separate the offerings.
• Companies that are targeting consumers currently most comfortable using social networking platforms. Such consumers are typically irritated by traditional insurance distribution and not as concerned about personal privacy.
• Insurers with intermediated distribution will pass on using the platform. "Upsetting their existing agents with a direct social network approach will be too much to bear," Fitzgerald wrote.
• Insurers that have a reputation for being innovative will be more likely to reach acceptable terms with the platform provider.
• Although the first insurer to use a social network may not be the largest, it will still need to meet the network provider's "steep rent."
• "The most likely insurer, in my view, is one that has a good reputation with the regulators and a decent reputation at addressing their concerns in past market conduct reviews and inquiries," Fitzgerald wrote. "As the response of regulation to this new way of doing business is such an unknown, the company willing to take this step will be confident in its ability to respond to its overseers
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