Shawn
Regulations & legislation:
The Canadian P&C insurance industry has high standards regarding regulations which companies need to comply with. This is specifically true when analyzing the auto insurance segment. Due to these highly regulated requirements, provincial governments need to interact in order to administer how claims are managed as well as how complaints are handled. Furthermore, the federal government is also involved when it comes to evaluating a fair play between consumers and insurance companies. In order to protect and benefit customers as well as helping insurers by improving the effectiveness of regulatory proposals, the federal government oversees the regulation process. Since the financial crisis of 2008, the Canadian
…show more content…
Looking at the legal environment, both the provincial and federal government have authority concerning insurance legislation in Canada. The federal government looks over most federally incorporated insurance companies in order the ensure the insurer’s credibility while the provincial government looks over provincially incorporated ones. Furthermore, all licenses, contracts and conditions concerning agents, brokers and insurance rates are evaluated by the Canadian government.
Influence of technology & industry’s future:
Looking at progression of technology within the industry, it is clear that all technological innovation concerning the insurance world is raising customer expectations. Moreover, these new advances in tech are creating technological business models. Therefore, insurance companies need to adapt to these new innovations in order to support increasing demands and expectations from their customers. The threat of new insurers who have taken advantage of Insuretech has forced big players to quickly revise and adjust their current business model to digital solutions. This new Insuretech trend allows insurance companies to use technology in way to acquire new
The financial crisis of 2007–2008 is considered by many economists the worst financial crisis since the Great Depression of the 1930s. This crisis resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis led to a series of events including: the 2008–2012 global recessions and the European sovereign-debt crisis. The reasons of this financial crisis are argued by economists. The performance of the Federal Reserve becomes a focal point in this argument.
It was not until October 29th, 1929 that the Canadian economy but more importantly the world experienced the ‘Great Depression’. Large amounts of money were lost over the period of five days, as investor’s worldwide scrambled to withdraw th...
Engineers, contractors, and other businesses must be mindful of and knowledgeable of their legal obligations when performing their occupation or supplying a product. Negligence in the design or construction of a product that results in damage or bodily harm, or could result in damage or bodily harm, can result in liability for economic loss under Canadian Tort law. Engineers, architects, and contractors need to be respectful of their duty of care to ensure their product is precisely produced with no danger of negligence.
RBC first established its insurance platform in the early 1980s where it promoted creditor and basic travel insurance, as those were the few products that can be promoted by bank employees under Canada’s Bank Act. Through the acquisitions of various insurance companies, they eventually entered the life, health, property and casualty insurance markets; demonstrating significant growth in the industry and eventually being level in the playing field among other large insurance competitors (McLaren, Babin, & Schuster).
report of the national commission on the causes of the financial and economic crisis in
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
The global financial crisis affected the many advanced economies, particularly the United States. Unemployment significantly increased, people were evicted from their homes, and the search for employment was a dead end. However, Canada was not affected by the same force as the United States: “Canada’s financial sector was less affected than most advanced economies and it had the highest bank soundness rating in the World Economic Forum surveys from 2007-2008 through 2012-2013.” Despite the relatively stable status of the Canadian economy, Canada was very much involved in the review and improvement of international financial regulations. Canada was in a position to make changes to financial regulations due to their perceived experience in the matter, as Canada escaped the crisis relatively unscathed.
Health Maintenance Organizations, or HMO’s, are a very important part of the American health care system. Also referred to as managed care programs, HMO's are combinations of doctors and insurance companies that are formed into one organization. This organization provides treatment to its members at fixed costs and decides on what treatment, if any, will be given based on the patient's or doctor's current health plan. Sometimes, no treatment is given at all. HMO's main concerns are to control costs and supposedly provide the best possible treatment to their patients. But it seems to the naked eye that instead their main goal is to get more people enrolled so that they can maintain or raise current premiums paid by consumers using their service. For HMO's, profit comes first- not patients' lives.
Today, Canadians are concerned with many issues involving health care. It is the responsibility of the provincial party to come up with a fair, yet reasonable solution to this issue. This solution must support Canadians for the best; it involves people and how they are treated when in need for health care. The Liberal party feels that they have the best solution that will provide Canadians with the best results. It states that people will have the protection of medicare and will help with concerns like: injury prevention, nutrition, physical activity, mental health, etc. The Canadian Alliance Party’s plan is to make several policy-developments to benefit Canada’s health care. They believe it will serve the security and well-being best for all Canadians. The last party involved in this issue is the NDP Party; who indicate that they are fighting hard for a better Health Care system in our economy. The NDP Party states that the income of a family should not dictate the quality of health care.
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
... accommodating the needs of a changing population, while maintaining the fundamental principles of the Canada Health Act.
Lastly, the Insurance sector offers solutions to individual and group clients around the world who are seeking insurance or reinsurance products for health, retirement, property, and casualty, as well as wealth accumulation. In 2016, The Royal Bank of Canada has implemented recent technology to better its services to help its clients thrive. It first introduced the new mobile banking app to its clients worldwide for easier access. Also by joining the first interbank group for global payments through the usage of blockchain technology, they were able to improve functionality towards their clients for its loyalty program.
Guidelines Recently, the Canadian Life and Health Insurance Association (CLHIA) released a new guideline concerning compensation disclosure. The proposed guideline sets out new standards when it comes to disclosing the compensation paid to intermediaries in group benefits and retirement services. The guideline has been met with mixed reviews, particularly from insurance brokers and other intermediaries in the benefits industry. Many wonder why the guideline is necessary.
Auto insurance is one of the most widespread utilized insurances in Canada. Insurance provides protection from liability claims after accidents and is required for licensing a vehicle. The concept of why basic automobile insurance is compulsory for modern-day Canadians is justifiable, as it holds the wrongdoer accountable for the potential losses of others that they have inflicted (Lanzenauer, 2006). However, if you live in British Columbia, Saskatchewan, Manitoba, or Quebec, where there is a monopoly of public auto insurance, you probably have a strong distaste for this provincial government-owned enterprise.
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.