The Societed'assurance
automobile du Quebec (SAAQ) has proposed increasing
its basic no-fault car insurance premiums. Individuals
could see their premiums jumping from $46 a year to
$102 in 2007 and $127 in 2008.
For taxis, the 2008 charge would rise to $706 and the
annual premium for large motorcycles would rise from
$253 a year to $1,332.
Quebec Premier Jean Charest has said that the Liberal
government's cabinet never endorsed the proposed premium
increases.
SAAQ premiums have been frozen since 1982. However,
it is operating at a $3 billion deficit and is looking
to another $500 million loss in 2006. Without rate increases
and higher premiums, the SAAQ could run out of money
by 2018.
--
New licensing system for British Columbia Brokers
The Insurance Council of B.C. is replacing the current
two-year broker's license with a “continuous” license
which will be updated each year. I.C.B.C’s
executive director says that the new system will be
more convenient, allowing brokerages to pay a smaller
licensing fee annually instead of a larger sum every
other year. As well, it will improve the council's oversight
function. As an interim step, all new and renewed licenses
will be valid for one year instead of two, as of June
1, 2006.
--
B.C. introduces “Apology Act”
B.C. Attorney-General Wally Oppal
has introduced legislation that would allow people and
organizations apologize without risk of legal liability.
If it is passed, the Apology Act would be the
first of its kind in Canada. Similar laws currently
exist in Australia and parts of the U.S.
Mr. Oppal, a former
B.C. Appeal Court Justice, said it would promote dispute
resolution “by removing concerns that an apology amounts
to an admission of liability or could void provisions
of an insurance policy.”
The bill maintains that an apology “does not,
despite any wording to the contrary in any contract
of insurance . . . void, impair or otherwise affect
any insurance coverage” of the person making the apology.
However, members of the Insurance Bureau of Canada
Pacific region say that the law could make it harder,
not easier, for insurers and their insureds to settle a liability case out of court.
“Courts have decided that saying 'I'm liable' is assuming
an obligation and you should not do that because the
(insurance) contract can be void,” said Serge Corbeil,
government relations manager.
After several intersections were equipped with red-light
cameras in the Manitoba capital, it was expected that
the number of collisions would decrease. But according
to an audit of the camera system, there has been a reduction
in right-angle collisions though city-wide figures remained
unchanged. “This indicates that the change in driver
behaviour observed at the
original sites has not yet resulted in a change of behaviour at unmonitored sites,” the audit said.
--
Small business sees premiums as a negative
According to a survey by the Canadian Federation of
Independent Business, high insurance premiums are second
only to energy prices among negative factors affecting
small business performance. “Despite high profit levels
in the insurance sector, concerns are showing no sign
of easing,” said a CFIB release accompanying its quarterly
business barometer.
--
Should insurers worry about Avian Flu?
Non-life insurance losses from an avian flu pandemic
are likely to be modest, says Fitch Ratings. Business
interruption due to absent workers likely isn't covered.
Property and marine policies generally exclude damage
due to the spread of infectious disease. Contingency
cover, a specialized form of insurance may cover it
but tends to be event-specific, leading to only modest
losses for insurers.
By now you should know that the ILS Advantage Performance
Series (at Sea) is scheduled for January 21 through 28, 2007.
Can you eschew the cold Canadian winter in favour
of a Caribbean cruise? A cruise where you can earn continuing
education credits?
It sounds good, but how much do you know about the ports
of call?
Sint Maarten/St. Martin is a small
island in the northeast of the Caribbean. The island is divided
roughly in half between France and the Netherlands and is
one of the smallest inhabited land masses in the world that
is divided between two nations.
The Dutch call it “Sint Maarten”, the French call it “Saint Martin”, while the English-speaking
world refers to the two halves collectively as “St. Martin.”
It was Christopher Columbus who, in 1493, first came upon
this island which was inhabited by Arawak
and Carib Indians. Today, more than 500 years later, the island
has become a favourtie vacation
spot for tourists across the world. Sint
Maarten, the "Dutch side", is known for its festive
nightlife, fun beaches, and plentiful casinos. St. Martin,
the "French side", is known more for its day life
of world-famous beaches, jewelry and clothes shopping, exotic
drinks made with native rum-based guava berry liquors, and
rich French Caribbean cuisine.
An added bonus: the average temperature in the winter months
is 27 degrees Celsius. Doesn’t that sound great?
Space on the ILS Advantage Performance Series (at Sea) is
limited and will sell out! Be sure to make your reservations
soon to avoid disappointment.
And don’t forget: if you book before May 15, 2006 you will
save $150!
April 18 of this year marked the 100 year anniversary of
one of the most significant earthquakes of all times. The
San Francisco earthquake of 1906 ruptured the northernmost
477 kilometers of the San Andreas fault from northwest of
San Juan Bautista to Cape Mendocino.
That morning at about 5:12 a.m., a foreshock occurred with
sufficient force to be felt widely throughout the San Francisco
Bay area. The great earthquake broke loose roughly 20 to 25
seconds later, with an epicenter near San Francisco. Violent
shocks punctuated the strong shaking which lasted between
45 to 60 seconds. The earthquake was felt from southern Oregon
to south of Los Angeles and inland as far as central Nevada.
More than 4.5 square miles of San Francisco burned and crumbled.
Nearly 200,000 people out of San Francisco's population of
450,000 were left homeless by the disaster. The Southern Pacific
and Santa Fe Railroads immediately closed their ticket offices
and opened the gates to the masses, allowing citizens to ride
away from the scenes of destruction and desolation. They were
carried free of charge to every section and corner of the
United States. Over 100,000 refugees were handled out of the
Oakland offices alone. Trains were so crowded and heavy that
they could not be moved by less than three engines.
The most widely accepted magnitude for the earthquake is
a moment magnitude (Mw) of 7.8; however, other values have
been proposed from 7.7 to as high as 8.3.
Swiss Re, a reinsurance and financial services firm, says
that an earthquake there today would bring an estimated economic
loss of about $200 billion USD, with $45 to $60 billion USD
in insured losses. California-based Risk Management Solutions
estimates an Mw 7.9 earthquake in the San Francisco Bay area
would bring with it a minimum of $260 billion USD in damages
to residential and commercial exposures, with just $50 to
$80 billion covered by Property and Casualty and workers compensation
insurers.
Scientists have for years been warning residents of Vancouver
and surrounding areas that “The Big One” is inevitable. No
one knows when it will happen or how severe it will be, but
they say it will definitely occur. Vancouver would likely
not fair too well. Most wood-framed homes would ride out the
shaking with little serious risk to their occupants. Modern
structures, including all high-rises and office towers, would
remain standing. The old and vulnerable water system would
inevitably fail. Gas mains would break and fires would follow.
Sections of bridges, port facilities and old masonry-walled
buildings would collapse. Train lines, roads and electrical
distribution systems would fail. Loose objects within offices,
factories and homes would be hurled around. Cornices and chimneys
would fall. Glass would fly. Many people would die. Earthquakes
search out the most vulnerable sections of a structure. And
the Vancouver area has many older buildings that have never
been tested in a great quake. The longer the shaking lasts,
the worse it will be.
The
Lighter Side: Pets
Are you treating your pets too well? Veterinarians in the
UK have found that many people are. Halifax Pet Insurance
says that many pet owners, though they have good intentions,
are inadvertently poisoning their furry friends with treats.
Research indicates that last year, there was an 87% increase
in cats and dogs falling ill after being fed “unsuitable foods.” A
third of those surveyed said chocolate - especially dark -
and other sweets as the worst culprits. One quarter of the
vets had treated pets that had been given alcohol as a treat,
which can cause animals to react violently.
Pet insurance is by no means a new concept. However, now
in the UK, even pet rats can get insurance. CavyRescue, an
animal welfare charity, is offering owners of “small furries”
access to specialized small mammal insurance. These small
furries include not only rats but ferrets and guinea pigs
as well. The insurance will help cover the costs associated
with the animals’ health and welfare. For each animal policy
sold, the charity will receive a donation. With a rat or guinea
pig x-ray amounting to as much as $160 and surgery amounting
to hundreds of dollars, maybe the insurance is worth it for
the small furries owners.
Comments
on our newsletter are appreciated and welcomed.
However,
if you do not to wish receive this newsletter, or wish to
subscribe another email address, please select your option
below.
