MAY 2015: Articles from our monthly print edition

27 May 2015

Foresters reorganizes to cement its niche presence

In the United States, Foresters ranks among the 44th largest insurers and in the United Kingdom it grew its market share considerably, but the firm is seen as a niche player in Canada. Recently appointed CEO Tony Garcia has reorganized the business to optimize its “intellectual capital” and boost the profitability of the insurer’s niches. His strategy centres on international risk management. (Read more)

25 May 2015

No changes on timelines for graduated rate estates, s.148 “Loophole”

The provisions of the federal government’s 2015 budget, released April 21, have generated significant discussion. Insurance and estate pros have identified several areas where further clarity might have been provided by the feds, but was not. These include the use of s.148 of the Income Tax Act to extract funds tax-free (or close to it) from a corporation; and changes to the timeframe for Graduated Rate Estates to use tax credits. (Read more)

22 May 2015

Budget 2015 for advisors: Ripples in banking, disclosure and help for small business

By now, you’ve no doubt heard all about the increased contribution room clients have available in their Tax Free Savings Accounts (TFSAs), and the massage given to Registered Retirement Income Fund (RRIF) withdrawal rules unveiled in Finance Minister, Joe Oliver’s Economic Action Plan 2015. (Read more)

19 May 2015

Concerns raised over Quebec regulation of online insurance sales

Both managing general agents (MGAs) and Quebec’s life insurance self-regulatory organization, the Chambre de la Sécurité financière (CSF), are concerned about guidelines that would allow life insurance to be sold over the Internet without the involvement of a licensed agent. (Read more)

18 May 2015

The choice of whether or not to use an advisor should exist for all products – CLHIA

The Canadian Life and Health Insurance Association (CLHIA) says that it should be possible to sell all kinds of products over the Internet without involving a licensed advisor. For the association, it is only natural that this kind of distribution channel should emerge for insurance, since it builds on the regulatory work that has already been undertaken both in Canada and around the world. (Read more)

15 May 2015

New licensing class for MGAs in Saskatchewan expected to increase compliance burden

The Saskatchewan government has caught insurance industry stakeholders off guard, proposing a new, separate licensing class for managing general agencies (MGAs) that do business in the province. Some say this will create an unneeded compliance burden. (Read more)

14 May 2015

Building the business that builds itself

Established, mature insurance advisory practices would appear to have at least one trait in common: They feed themselves, without the need to constantly chase new sales. (Read more)

13 May 2015

MGA agreements spur Humanias growth

At its annual general meeting on March 26, Humania revealed the extent of the progress it has made in markets beyond its home province; 30% of the insurer’s individual life insurance sales came from outside of Quebec in 2014. (Read more)

12 May 2015

Hot buttons are financial security coachable moments

Isn’t hitting a prospect’s “hot buttons” manipulating them and a bad thing?

That’s what I thought when I started selling life insurance. To me, finding a “button” you could press to “make” a prospect do what you wanted was the height of manipulation. It seemed like black magic. (Read more)

12 May 2015

Personal directive to be followed irrespective of grantor’s best interests

At issue

For a few decades now, we have witnessed the introduction and modernization of laws dealing with powers of attorney and personal health directives (or similar terms according to the particular province). (Read more)

12 May 2015

Some industry stakeholders foresee a new era of super MGAs

Some of Canada’s largest managing general agencies (MGAs) are growing even bigger, leading some to speculate the country could soon be in store for “super MGAs” that can only be bought out by insurance companies. But many in the industry think advisors’ independent streak will prevent insurers from reverting to their previous stronghold on distribution. (Read more)

12 May 2015

RBC launches pension derisking solution

With employee pension plans proving increasingly challenging for private-sector companies, RBC Insurance has recently launched a solution to help reduce the risk associated with defined benefit (DB) pension plans. (Read more)

12 May 2015

Executors should proceed with caution

Your client is considering naming a son or a daughter to act as the executor of his will. Another client has just begun the process of settling her mother’s estate. Are they aware that executors may be leaving themselves open to unlimited personal financial and legal liability? (Read more)

11 May 2015

Regulators investigate travel insurance

Travel insurance is a product known to create a lot of complaints – to regulators, but often in the media and in social media as well – possibly creating consumer confidence issues, which have regulators taking a closer look at the product and the processes used in selling it. (Read more)