Group Insurance Canada - Three Key Options For Canadian Businesses!

By Rob B

You may have heard that the number of insurers in the Canadian marketplace has declined over the years. This is true ... sort of. The traditional life insurance companies have consolidated their group operations into just a few key players. But there are some innovative Group Health Insurance solutions being offered now. And even the traditional group plans have had to improve their offerings to stay competitive.

So what choices are there for a business to provide a group health benefit plan?

1. Traditional Group Insurance Canada Everyone is familiar with traditional workplace health benefits. They provide basic life insurance coverage, a disability insurance safety net and Accidental Death and Dismemberment Coverage. They also offer Prescription Drug and Dental coverage (not always both), and extended health benefits like chiropractic, massage, psychology, and the like. There are a lot of different ways to build a benefit plan now and a good broker will help you to find the right coverage for the budget of your business.

2. Administrative Services Only (ASO) An Administrative Services Only plan can offer all of the same benefits that a Traditional Group Plan. So what's the difference? The difference between ASO and a traditional group plan is that the ASO is essentially self insuring. This eliminates a lot of the "mark-up" in the group plan but also increases the risk of high claims to the business. This risk can be reduced through the use of stop loss insurance. All in all an ASO plan can save a business a lot of money while reducing overall costs.

3. Health Spending Accounts A Health Spending Account is essentially a savings account set aside for the purpose of medical spending. Small business owners and incorporated professionals find that this is a dynamic way to pay for health expenses they already have and to save for future costs. A HSA is recognized by the Canada Revenue Agency and allows the individual to pay for their annual healthcare costs in pre-tax dollars. Money put into the HSA are recognized as a full business deduction. This save significant tax dollars. Of course there are limits to how much can be put into a Health Spending Account. They are reasonable limits.

So you can see that there are choices to implement a health insurance plan for your business and employees. You might be surprised that you do not have to break the bank!

Rob B is a Canadian Insurance broker who is sharing general information on insurance in the hopes that it helps more people get the insurance they need. Rob is an independent broker from the Niagara Region in Ontario, Canada. He writes about insurance for Canadians at http://www.canada-insurance-source.com Visit Group Insurance Canada to learn more about Canadian Group Plans, ASO plans, and Health Spending Accounts. You may use this article on your site as long as you give full credit to the author by including this full resource box with active links.

Project Management Concepts and Insurance Companies

By Kimberley Ward

Many elements of project management (see Project Management Institute's website for more information) could be applied to help insurance companies manage their operations and projects better. One method in particular should be an area of interest for insurance company actuaries - the CONTROL area.

Control is the mate of Planning, another area that strong actuarial help is valuable. Control gets a bad rap from people that feel that the term implies heavy-handed oversight or punitive measures, but is, in reality, an essential part of the planning process. Where planning says what you are going to do and when, control checks on those plans and can suggest corrective action when plans are going awry, as they so often do.

There are three types of control processes - (1) Feedback Control, (2) Concurrent Control, and (3) Feed-Forward Control.

Feedback Control is frequently done by actuaries in insurance companies. Studies of rate levels, unallocated expense allocation, projected expenses, loss reserve calculations are often purely or nearly purely Feedback Control, in that they base the future projections on historical results. In project management, Feedback Control is considered the least optimal control method, since the undesirable events have already occurred well before the control function is initialized. Interestingly, projections based on historical events is quite favored by insurance departments of insurance, that frequently require explanation if your projections are based on anything else.

Concurrent Control is a type of control that takes place when a process is about to occur. The final checking before sending rate filings, Annual Statement reports, agent's bonuses, large claim settlement reports, etc. are are form of Concurrent Control. Training and periodic checking of employee work is also considered Concurrent Control.

The last form of control is an interesting one. It is a form of control more and more actuaries are getting involved in. This type of control function is called Feed-Forward Control and it's goal is to inspire corrective action before a deviation in the plan occurs. Actuaries call it "modeling" and have applied the concept to forecasts of future profitability, premium levels, claim costs for certain lines of business, enterprise risk management, or dynamic financial analysis.

The steps of Feed-Forward Control are as follows:

1. Identify all relevant input variables. For project management, these variables relate to time, volume, and money (or costs of the project). For actuarial work for insurance companies, the variables might be premiums, loss costs, expenses, investment income, risks of various company functions or operations, etc.
2. Build a dynamic model representing the process and keep it updated.
3. Collect data and enter into your model. For most projects I do, the data gets collected into the model before, during, and after it is built.
4. Perform regular assessment of the projected path and the variation from the plan. Are the loss costs out of range? Is persistency decreasing off planned values? Is the level of risk for a type of insured/coverage/policy unacceptably high? Are the number of claims or policies off plan?
5. Take action - Feed-Forward Control provides the early warning system needed to take action before getting too far away from plan.

Actuarial work for insurance companies generally uses the Feedback Control type the most, but Feed-Forward methods have the potential to change the profitability of the company quicker and more reliably.

The major disadvantage for insurance companies is the more complicated filing and approval process for applications that require state approval, but that is overcome with clear actuarial memos and an education process. The advantages of getting ahead of deviations to your insurance company's plan outweighs difficulties getting the process approved. Rating agencies also appreciate the use and application of Feed-Forward Controls both for the added stability of the company and the evidence of careful planning that is implied in the use of such a method.

Kimberley A. Ward, FCAS, MAAA, FCA - Kimberley serves as Partner at Windsor Strategy Partners and is located at their satellite office in Newark, IL. Prior to joining Windsor Strategy Partners, Kimberley served as Chief Actuary at AAIS. Kimberley is a Fellow of Casualty Actuarial Society. She is hold memberships in the American Academy of Actuaries, Conference of Consulting Actuaries, Project Management Institute and Association of Insurance Compliance Professionals. Kimberley's core expertise includes property-casualty actuarial pricing, reserving, product development, project management, mentoring, strategic planning, education, training and employee development. See Kimberley's blog at http://viewivorytower.blogspot.com and her company's website at http://wspactuaries.com

Common Misconceptions About Insurance in Africa

By Kihara Kimachia

In most African countries, insurance in a controversial and confusing subject for many. Much of the reason for this stems from the fact that the majority of Africans live on less than a dollar a day. Excluding South Africa and Egypt, the majority of Africans in other countries have never held any kind of insurance policy. Possibly the closest semblance of insurance policies for most are social arrangements where people come together and pool resources to go towards a common purpose. For example, in the event of death or illness.

As a result of this low penetration of insurance, it is understandable that most Africans do not fully grasp the 'mechanics' of insurance. Small business trainers employed by the many Non Governmental Organizations (NGO's) that are active on the continent have a particularly difficult task when they take on the topic of insurance; of course no small business course is complete without delving into some basics of insurance.

The most common misconception about insurance in Africa is that it is a preserve of the rich and upper middle class who work in the 'big towns'. The average African associates insurance with motor vehicles. This is because in most countries, the law requires every vehicle to be insured and certificate displayed on the windshield as proof. Another common misconception is that insurance premiums are refundable so long as no claim is made during the year. Interestingly, amongst those who have undergone some training or are educated to college level, there is the feeling that this is an unfair practice.

Lastly, most Africans tend to think that you can benefit from an insurance contract by receiving more than is stipulated in the event of a claim. The principle of indemnity is not well understood in this case. For example most believe that it is automatic that should you insure your property for $100 then in the event of a total loss you receive your full $100 irrespective of wear and tear and issues such under or over insuring. Anyone contemplating a foray into the African insurance markets needs to thoroughly understand these issues in addition to other dynamics unique to Africa.

CTP Green Slip Policies

By Jo Thomas

Mandatory third party Insurance or CTP Green Slips give third party coverage. Before the establishing of laws in Australia making third party insurance obligatory, the vehicle owner would usually request additional insurance to cover third party liability injury. Although, this was never an obligatory requirement.

As a result, many felt that innocent victims were left with large, costly bills because the driver of the vehicle chooses not to carry this type of third party insurance product. This altered following a public outrage over a handful of accidents which appeared to acquire extra coverage. Rightly so, the change in the NSW State Government's law, Motor Accident Act 1988, was amended. It now includes a requirement that drivers have compulsory third party insurance for all of their registered vehicles.

Coverage Under General CTP Green Slip Policies:

There are various types of car insurance products on the market, but you cannot escape having CTP Greenslip protection. Nearly all car insurance providers will offer this type of protection along with other car insurance plans such as comprehensive coverage. Under this type of insurance, the driver is protected from any liability of personal injury to anyone that has been hurt due to a motor vehicle collision you have caused or are found responsible for. Should someone be hurt while you are driving and cause their injury, this insurance will cover their personal injury claim against you.

Your CTP Greenslip coverage does not provide any type of insurance protection from damage to property or to the other person's car. It will not give you any cover for your personal medical expenses.

CTP Greenslips will cover:

* Other people who are on the road with you that are involved in the accident

* Pedestrians pedal cyclists or others on foot

* The people you have in your vehicle

* Injuries that are caused by your trailer

Questions for Your Provider:

CTP Greenslips are available through a variety of lenders, all of which you should talk to. You will be able to shop around for the right level of insurance protection at the right price. There are currently 7 insurers that provide CTP Greenslips as required by law. This includes:

* AAMI

* Allianz

* CIC Allianz

* GIO

* NRMA

* QBE

* Zurich

The pricing on these plans differs from one insurer to the next, but is depending, at some level, on your own situation. For example, premium prices for CTP Greenslips is set by a combination of factors including your driving and accident record, the age of those people who will drive your car, the type and age of the vehicle you have, the use of your vehicle (private use as compared to business use) as well as if the purchase will be a renewal or new.

Find out from these potential insures how your driving situation compares to the types of insurance they offer.

Ways to Save on CTP Greenslip Insurance:

Perhaps the best way to get the lowest costing CTP Greenslips possible is to use the Motor Accidents Authority's website where you can use a very helpful calculator. This calculator will take some basic information from you and compute the various quotes from each of the seven insurers. It saves you time and money by providing you with the lowest costing CTP Greenslips possible.

Additionally, you can phone, and get the individual insurers to give you information on the cover and packages they provide. While more time consuming, this more personal approach will deliver the best results for you in terms of cost.

Also, give thought to your driving tendencies, as well as your vehicle. Realize that your costs may be more if you are a reckless driver, but improving these habits over the long term will get you lower rates.

Beware Before Signing:

Before you sign on the dotted line with any insurer for your CTP Greenslips, do your homework. Read through the contract to know what you are signing and how much it will cost you. Do these numbers match the quotes you were given? Because the government regulates who can provide CTP Greenslips for you, you are likely to have no problem trusting the company, but that doesn't mean you shouldn't take note of the contract's fine details.

Additional Coverage to Consider:

While CTP Greenslips are a very necessary type of insurance coverage for your vehicle (you can't drive or get a registration for your car without it) this is not the only type of insurance that you need to remain safe. Comprehensive coverage is also required. It will provide you with protection from loss of your vehicle as well as that of another person you are involved with in an accident.

Insurance Compared provides consumers and businesses with explanations and information on most of the different types of CTP Green Slips (3rd party insurance) available today. Insurance Compared is working to take the mystery out of insurance policies and create transparency so that everyone has the right insurance for them (and nothing more). Find out more at http://www.insurancecompared.com.au/explained/vehicle/ctp.php.

Top Tips When Looking For Static Caravan Holiday Home Insurance - Part 2

By H Robinson

Some insurance companies will ask if your holiday home is anchored down. This can minimise storm damage, especially if your static is sited on an exposed park, open to the elements. This could be an essential requirement on your policy so speak to your park owner or manager, as failure to anchor your holiday home may invalidate your policy.

The sum insured under your insurance policy should not only include the value of the holiday home, but it should also cover any additional items such as verandas, patios and even extras such as sheds. If you are unsure about the value of your holiday home, your park owner should be able to give you a market value or new for old valuation.

Debris removal and resiting cover should cover the cost of removing debris from the pitch should your holiday home be a total loss. It should also pay for the transportation and reconnection of a new holiday home to the mains.

Items taken from the home to your holiday home are called personal effects. You may be able to include these in your holiday home insurance. However, most household policies will cover these items, so it's always best to check with your home insurer so you don't pay for cover you don't need.

Caravan parks will usually insist on their residents having a certain level of public liability insurance. This cover should offer protection should you, your family, or anyone you have lent the holiday home to, cause injury to someone else or damage someone else's property.

Finally, when contacting insurance providers, check that a leading, solvent insurance company underwrites their policies. You want to be sure the insurance company is around to pay claims if and when the worst happens.

Heather Robinson of Leisuredays. Leisuredays insurance specialise in static caravan holiday home insurance in the UK. For more information about insuring your holiday home, visit http://www.leisuredays.co.uk Leisuredays is a trading name of Caravan Guard Limited, which is authorised and regulated by the Financial Services Authority.

Insurance Crackdown

By Barry Loughran

Insurance is taken out for piece of mind, if you partake in an activity where there is a possibility that you may lose or damage something of high value or importance then it would be wise to insure that object. With the sheer number of different insurance policies out there for pretty much every product and every event, there is no shock to read that fraudulent claims have rocketed in recent years.

This has resulted in a stamp down on the way in which claims are handled as the insurers struggle to identify a genuine claim from a fraudulent claim. The stamp down has only negative repercussions for most as the border line genuine claims face being rejected due to tighter terms and conditions, higher premiums to make up for lost cash and even reduced policies for certain items.

If you have a claim rejected then you can still claim your money back if you feel that it was an unfair decision. If you fail to achieve any success after making an appeal then you can contact the financial ombudsman to complain about your insurance service.

The financial ombudsman has seen a large number of queries recently with the volume increasing by up to 25% in the past 12 months. This can be down to a number of reasons including stricter policies to people being confused over the wording on the contract.

Insurance is important and you will need to take it out many times in your life so you should ensure you follow the correct procedure when possible when making a claim.

You can obtain insurance for many things but you should always have car insurance, home insurance and travel insurance when traveling abroad. If you don't then you may be subject to losing a lot of money.

Talking About Car Cover

By David H Thomson

Car cover is compulsory, meaning that it is an offense to drive a motor vehicle on UK roads without having an insured vehicle. Saying that, there are a number of options available as to what insurance you actually buy. The following should give you an idea as to what to do. Bear in mind also, that when going to buy insurance from a provider that, while most policies are the same, the terms are not. So this means that when you buy some insurance for yourself and your vehicle, it is worthwhile having a clear discussion with the broker and finding out just what you will get for your money.

Insurance for you and your car covers, to varying degrees, liability that you may incur if you injure somebody or, damage other people's property while driving. It simply means that if the worst happens and an accident occurs, then you can be covered for a large amount of the costs needed to put things right.

Cover comes in a variety of forms, but the basic idea is that you can cover yourself to a minimum amount or to a fully comprehensive amount, which will take care of almost all eventualities while you are out on the road. Fully comprehensive cover can also cover the inconvenience of having a damaged car, with many insurers often offering replacement (courtesy) cars as part of a fully comprehensive service package.

The first type of insurance cover you can take out when it comes to motoring is third party insurance. This is the basic kind of car cover you can buy, and covers the impact of damage and injuries caused by you against someone else and/or their car. You and your vehicle are not covered by this type of policy. In this sense it may seem a little risky to most people, but for obvious reasons the cost of it is low.

Third party fire and theft takes the level of cover one step higher, and is designed to protect you as well as anyone involved in some unfortunate incident with you. This level of cover insures against replacement or repair of your car if it stolen or destroyed or damaged by fire.

Then, as explained earlier, the fullest level of cover comes under the name of fully comprehensive. This cover protects you for most eventualities. For example, it covers you if your car is damaged by an accident caused by yourself. Windscreen damage may also be covered by such a policy, for example.

Fully comprehensive insurance protects your car for all manner of uses, often including travel to work, and for pleasure. There are even some fully comprehensive policies that cover you when you wish to drive someone else's car (with their permission). This last type of cover often only covers you for any third party damage, so be wary of this.

Make sure you know exactly what type of car cover you are paying for when you take out a policy. This means asking what the cover entails and whether there are any extras that would make the cover more competitive.

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to giving consumers the best insurance deal. They offer great value home, life and car insurance.