We’re wrapping up the year with a look back during the holiday season. To start things off, we take a look at the some of the big news makers from March, through to June.
We’re wrapping up the year with a look back during the holiday season – and what a year it’s been! To start things off, we take a look at the some of the big newsmakers from March, through to June.
March
Canadian insurers welcome South Korean free trade agreement
The recently announced free-trade agreement between Canada and South Korea has received kudos from Canadian life insurers. But why?
“As one of Canada's most internationally active business sectors, the life and health insurance industry is a major supporter of free-trade agreements,” said Frank Swedlove, president of the Canadian Life and Health Insurance Association. “We are pleased that such an agreement has been reached with such a large and important market as Korea.”
The surprising way the world’s largest life insurance policy was sold
Headlines were made when it was revealed that an anonymous Silicon Valley tech company billionaire in California had taken out the largest life insurance policy ever with a death benefit of US $201 million, more than double the value of the previous record-holding policy.
Dovi Frances of SG LLC, the lucky Southern California-based financial services adviser who arranged the policy, declined to disclose his client’s identity but did say that the annual premiums for the policy will be “in the low single-digit millions.”
Wilton Re purchase a first for Pension Plan investment
Canada Pension Plan Investment Board (CPPIB) recently announced that it has agreed to buy Bermuda-based Wilton Re Holdings Limited for US$1.8 billion in CPPIB’s first investment into the life insurance sector.
Wilton Re is a provider of life insurance and reinsurance solutions to the U.S. life insurance market and a leading acquirer of closed blocks of life insurance policies. Since its inception in 2005, Wilton Re has successfully invested over US$1.7 billion in a variety of strategic in-force reinsurance and M&A transactions.
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April
Insurance industry remembers Flaherty
Industry reaction to the death of former finance minister Jim Flaherty has been immediate, as those in the insurance and investment sectors remember not only the man, but his professionalism.
“Over the years Advocis has had the great pleasure of working closely with Mr. Flaherty on a number of issues impacting financial advisors and their clients,” says Greg Pollock, president and CEO of Advocis. “He was an outstanding finance minister, and it was with a heavy heart that we received this terrible news. Our condolences go out to the Flaherty family during this difficult time.”
Where Canadians buy the biggest life policies
Two-thirds of Canadians hold life policies, but the level of coverage varies dramatically depending on which province you call home.
Canadians across the nation don’t differ much in the rate at which they purchase life insurance policies. According to provincial data from the Canadian Life and Health Insurance Association (CLHIA), roughly 60 to 70 per cent of residents in each province purchase an individual life policy.
Companies need convincing on mandatory employee cover: report
A recent report shows participation rates for eligible employees in voluntary defined contribution plans to be 81 per cent, but only 61 per cent for voluntary group registered retirement savings plans, a sign companies should take to heart when considering mandatory enrolment, says one senior insurance executive.
“While these figures are healthy, when 20 to 40 per cent of eligible employees are not participating in their voluntary workplace pension plans, we can see there is room for improvement,” says Jeff Aarssen, senior vice-president of group retirement services for Great-West Life, suggesting employers consider implementing mandatory enrolment as one strategy to increase employee participation.
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May
Herr handing over the reins at Empire Life
Mark Sylvia has been appointed president and CEO of Empire Life in Toronto, effective June 2, 2014, succeeding Les Herr, who is stepping down as the CEO at the end of May.
“Mr. Sylvia has an impressive track record of leading and growing mid-size and specialty insurance companies in Canada by focusing on service, simplicity and strategic partnerships,” said Duncan Jackman, chairman, CEO and president of E-L Financial Corp. Ltd. and chairman of the board of Empire Life, in making the announcement.
American insurer takes aim at Canadian testing model
A major U.S. life insurance company is saying changes to the testing system for new agents in Canada may harm ordinary consumers.
The new national testing system – to be administered by the stock-market regulator in Quebec – could lead to higher costs, less agents, and less people buying life insurance, says Primerica, which touts itself as the largest independent financial services marketing company in North America.
World Cup Coverage designed to protect HNW fans
An all-encompassing insurance product for travelers heading for the World Cup soccer tournament in Brazil this June has been introduced by Exceptional Risk Advisors, a leader in specialized insurance for high-net-worth individuals.
The World Cup kicks off hot on the heels of the 2014 Winter Olympic Games in Sochi, where headlines were occupied with a grave tone for potential 'Black Widow' terror events. The question is: will spectators and the media yet again find themselves in an unsettling environment, namely a country rife with kidnappings, political unrest and the seventh-highest homicide rate in the world? The answer is almost most certainly; yes they will.
June
New CEO appointed at Manulife
Manulife Financial has appointed a new president and chief executive officer of Manulife Bank, its banking subsidiary.
Rick Lunny will assume his new duties on June 2, the company announced Thursday. He replaces Doug Conick, who had been CEO since April 2010.
Quebec grants insurer licence to administer VRSP
Quebec’s Autorité des marches financiers (AMF) has granted a major player in the life market a licence to administer a Voluntary Retirement Savings Plan (VRSP) in that province starting July 1.
“The AMF's licence is an important step in the setup of our VRSP offering,” says Philippe Toupin, Vice-President, Group Solutions, Standard Life. “We've developed a clear and simple tool to help mainly small and medium business employers offer a retirement income solution for their employees.”
Time to educate Canada Revenue: CALU
Brokers have been beating the drum on client education for years – but educating the Canadian Revenue Agency may be necessary to ensure life insurers cannot only maintain but expand their market presence, says one association president.
“The CRA does not like life insurance in non-traditional structures,” says Kevin Wark, the president of the Conference for Advanced Life Underwriting (CALU). “It is a question of us educating them.”
March
Canadian insurers welcome South Korean free trade agreement
The recently announced free-trade agreement between Canada and South Korea has received kudos from Canadian life insurers. But why?
“As one of Canada's most internationally active business sectors, the life and health insurance industry is a major supporter of free-trade agreements,” said Frank Swedlove, president of the Canadian Life and Health Insurance Association. “We are pleased that such an agreement has been reached with such a large and important market as Korea.”
The surprising way the world’s largest life insurance policy was sold
Headlines were made when it was revealed that an anonymous Silicon Valley tech company billionaire in California had taken out the largest life insurance policy ever with a death benefit of US $201 million, more than double the value of the previous record-holding policy.
Dovi Frances of SG LLC, the lucky Southern California-based financial services adviser who arranged the policy, declined to disclose his client’s identity but did say that the annual premiums for the policy will be “in the low single-digit millions.”
Wilton Re purchase a first for Pension Plan investment
Canada Pension Plan Investment Board (CPPIB) recently announced that it has agreed to buy Bermuda-based Wilton Re Holdings Limited for US$1.8 billion in CPPIB’s first investment into the life insurance sector.
Wilton Re is a provider of life insurance and reinsurance solutions to the U.S. life insurance market and a leading acquirer of closed blocks of life insurance policies. Since its inception in 2005, Wilton Re has successfully invested over US$1.7 billion in a variety of strategic in-force reinsurance and M&A transactions.
#pb#
April
Insurance industry remembers Flaherty
Industry reaction to the death of former finance minister Jim Flaherty has been immediate, as those in the insurance and investment sectors remember not only the man, but his professionalism.
“Over the years Advocis has had the great pleasure of working closely with Mr. Flaherty on a number of issues impacting financial advisors and their clients,” says Greg Pollock, president and CEO of Advocis. “He was an outstanding finance minister, and it was with a heavy heart that we received this terrible news. Our condolences go out to the Flaherty family during this difficult time.”
Where Canadians buy the biggest life policies
Two-thirds of Canadians hold life policies, but the level of coverage varies dramatically depending on which province you call home.
Canadians across the nation don’t differ much in the rate at which they purchase life insurance policies. According to provincial data from the Canadian Life and Health Insurance Association (CLHIA), roughly 60 to 70 per cent of residents in each province purchase an individual life policy.
Companies need convincing on mandatory employee cover: report
A recent report shows participation rates for eligible employees in voluntary defined contribution plans to be 81 per cent, but only 61 per cent for voluntary group registered retirement savings plans, a sign companies should take to heart when considering mandatory enrolment, says one senior insurance executive.
“While these figures are healthy, when 20 to 40 per cent of eligible employees are not participating in their voluntary workplace pension plans, we can see there is room for improvement,” says Jeff Aarssen, senior vice-president of group retirement services for Great-West Life, suggesting employers consider implementing mandatory enrolment as one strategy to increase employee participation.
#pb#
May
Herr handing over the reins at Empire Life
Mark Sylvia has been appointed president and CEO of Empire Life in Toronto, effective June 2, 2014, succeeding Les Herr, who is stepping down as the CEO at the end of May.
“Mr. Sylvia has an impressive track record of leading and growing mid-size and specialty insurance companies in Canada by focusing on service, simplicity and strategic partnerships,” said Duncan Jackman, chairman, CEO and president of E-L Financial Corp. Ltd. and chairman of the board of Empire Life, in making the announcement.
American insurer takes aim at Canadian testing model
A major U.S. life insurance company is saying changes to the testing system for new agents in Canada may harm ordinary consumers.
The new national testing system – to be administered by the stock-market regulator in Quebec – could lead to higher costs, less agents, and less people buying life insurance, says Primerica, which touts itself as the largest independent financial services marketing company in North America.
World Cup Coverage designed to protect HNW fans
An all-encompassing insurance product for travelers heading for the World Cup soccer tournament in Brazil this June has been introduced by Exceptional Risk Advisors, a leader in specialized insurance for high-net-worth individuals.
The World Cup kicks off hot on the heels of the 2014 Winter Olympic Games in Sochi, where headlines were occupied with a grave tone for potential 'Black Widow' terror events. The question is: will spectators and the media yet again find themselves in an unsettling environment, namely a country rife with kidnappings, political unrest and the seventh-highest homicide rate in the world? The answer is almost most certainly; yes they will.
June
New CEO appointed at Manulife
Manulife Financial has appointed a new president and chief executive officer of Manulife Bank, its banking subsidiary.
Rick Lunny will assume his new duties on June 2, the company announced Thursday. He replaces Doug Conick, who had been CEO since April 2010.
Quebec grants insurer licence to administer VRSP
Quebec’s Autorité des marches financiers (AMF) has granted a major player in the life market a licence to administer a Voluntary Retirement Savings Plan (VRSP) in that province starting July 1.
“The AMF's licence is an important step in the setup of our VRSP offering,” says Philippe Toupin, Vice-President, Group Solutions, Standard Life. “We've developed a clear and simple tool to help mainly small and medium business employers offer a retirement income solution for their employees.”
Time to educate Canada Revenue: CALU
Brokers have been beating the drum on client education for years – but educating the Canadian Revenue Agency may be necessary to ensure life insurers cannot only maintain but expand their market presence, says one association president.
“The CRA does not like life insurance in non-traditional structures,” says Kevin Wark, the president of the Conference for Advanced Life Underwriting (CALU). “It is a question of us educating them.”
