CanEquity Blog on Insurance

A recent report on the U.S. and Canadian life insurance industries reveals a greater number of providers are turning to mobile-based technology as a way to offer their services.

The Mobile on the Move: Reaching Insurance Stakeholders Wherever They Are report polled life insurance companies across North America and found nine in 10 are meeting producer demands with mobile technology offerings.

"Like we saw with social media, life insurers recognize that using mobile technology is not negotiable if the company wants to be competitive now and in the future," said Mary Art, LIMRA research director, technology in marketing and distribution research. "In fact, three of four companies surveyed said they were using mobile technology to keep pace with their competitors and nearly as many anticipate these investments will increase sales." Continue reading »

Canadian immigrants who want to take advantage of the nation's healthcare offerings have numerous options to choose from.

Citizens and permanent residents of Canada are eligible for health insurance. Those who have the proper amount of coverage will not have to pay directly for most healthcare services, which are instead paid through their taxes. All that is required is a health insurance card that is presented at the medical clinic or hospital.

Migrant workers can also benefit from the nation's healthcare offerings. It is the responsibility of the farm owner to enroll his or her migrant workers in the provincial health plan.

Canadian immigrants can be a source of inspiration for citizens and permanent residents alike. RBC Royal Bank recently announced plans to team up with Canadian Immigrant magazine to begin voting for the fourth annual Top 25 Canadian Immigrant awards. Continue reading »

Desjardins Financial Security recently announced the launch of a new offering that will bring a critical illness insurance product to employers looking to help alleviate the financial stress felt by their employees who are suffering from health issues.

Although modern medicine has made surviving various medical issues a realistic possibility, the financial cost that is incurred is still relevant, and if the individual isn't on a group insurance plan then he or she may be in serious financial trouble.

Desjardins Financial Security is offering two different plans for employers who want to further serve their employees' health insurance needs.

"The basic plan covers the four most common critical illnesses, and the enhanced plan covers 31 illnesses – the most comprehensive coverage available," Nathalie Laporte, vice president of group and business insurance product development at marketing at Desjardins Financial Security. Continue reading »

Three migrant workers who were injured in a crash this week will be eligible for healthcare coverage through the Works Safety and Insurance Board, according to CTV News.

A representative of the WSIB also confirmed the families of the 10 individuals who died in the crash may also be eligible for compensation and said the crash survivors would be eligible for healthcare coverage. But the lawyers of the survivors remain skeptical.

"We're very pleased to hear that families of the men who died will receive compensation, but at the same time, we have to ask what's going to happen to the men who survived," Maryth Yachnin, a lawyer with the group, recently told CTV News Channel. "In our experience, what happens to migrant workers is shortly after (they get injured), they are deported to their home country." Continue reading »

Canadian life insurance company Union of Canada Life Insurance is closing after 148 years of service, according to The Globe and Mail. The collapse of the provider is the first from any Canadian insurance company in 18 years.

A smaller company with only about 22,000 policies outstanding, Union of Canada Life Insurance was based in Ottawa as a mutual insurer with the majority of its client base in Quebec. It received court approval on February 2 to wind up.

“We will be focused on arranging the transfer of the policies to another life insurance company expeditiously in order to ensure the policy holders continue to be served seamlessly,” said Michael Creber, the partner from Grant Thornton who is in charge of the liquidation. “In the interim, operations of Union of Canada Life will continue from its head office in Ottawa.” Continue reading »

According to the Toronto Star, roughly 24,000 migrant agricultural workers come to Canada each year to fill the shortage in agriculture labor, and it is the responsibility of the farm owner to register these workers with the provincial health insurance plan.

Of the tens of thousands of migrant agricultural workers who enter Canada each year, roughly 90 percent are destined for Ontario and are at the mercy of farm owners, as they can be forced to leave the country once their work is completed, the newspaper states.

“The Seasonal Agricultural Worker Program matches workers from Mexico and the Caribbean countries with Canadian farmers who need temporary support … when qualified Canadians or permanent residents are not available,” states Service Canada's website. Continue reading »

According to a recent report from The Globe and Mail, life insurance companies across Canada will begin reporting their quarterly results, which, in recent years, has led to significant losses and unexpected surprises.

Experts are predicting added losses for Sun Life Financial and Manulife Financial Corporation, with insurers already warning that goodwill charges and other deductions are around the corner, the newspaper states. Meanwhile, UBS Securities Canada is predicting that 10-year U.S. bond yields will grow to 2.4 percent this year, with 10-year Canadian yields increasing to 2.5 percent.

“While we project long bond yields to increase, they are expected to remain well below the interest rate assumptions currently priced into Canadian LifeCo products, undermining near-term performance,” the company wrote in a recent report. Continue reading »

Genworth MI Canada, the nation's second largest mortgage insurer, recently announced plans to take advantage of government constraints on the Canada Mortgage and Housing Corporation, its Crown corporation rival.

According to The Globe and Mail, executives at the mortgage insurer have made it clear they view the situation as a new business opportunity, as Ottawa mulls loosening restrictions on the CMHC.

“Given economic conditions and concerns around personal leverage/housing in Canada, we would be surprised to see the government increase CMHC’s limit in the near term,” Jason Bilodeau, analyst at TD Securities, recently wrote in a note to clients. Continue reading »

The Canada Mortgage and Housing Corporation recently revealed it's nearing the limit on mortgage insurance it can offer lenders, and one economic expert says Canada's federal housing agency may raise the $600 billion cap.

According to a Bloomberg report, Sheryl King, head of Canada economics at Bank of America, said the CMHC may be forced to increase its mortgage insurance limit by 25 percent to $750 billion. The CMHC recently said it has received an unexpected level of requests for portfolio insurance, most likely the result of a boost in housing demand after several banks reduced their mortgage rates to all-time lows.

King told the source a limit increase could be implemented in April or May, while a minimal extension "would likely signal the government is trying to prevent the housing market from roaring at the pace we've seen since 2009 or at least trying to force the risk back onto the private sector." Continue reading »

Genworth MI Canada, the largest private mortgage insurer in Canada, recently announced that its business has plenty of remaining capacity and is not planning to push up against its legislated cap, according to the Wall Street Journal.

However, Canada Mortgage and Housing Corporation, a quasi-government agency, reported earlier this week that it is close to its near C$600 billion lending limit with the Canadian government guaranteeing 100 percent of the agency's obligations and 90 percent of the obligations of the private sector, the news source states.

Meanwhile, Genworth is calling for a flat home price appreciation in the country over the next year to year and a half.

"We see a soft landing, which bodes well for the long-term health (of the housing market)," Stuart Levings, chief risk officer at Genworth, told the news source. Continue reading »