BC woman quoted 10 times more than her previous auto insurance rate

Insurance Business America | April 26, 2019

A Burnaby woman was surprised to find that an insurance quote for her car ended up costing four times the value of the vehicle and 10 times more than the previous rate she had been paying. Lindsay McArthur was changing her auto insurance policy by adding her partner, Chris Hodge, as the principal driver, when the Insurance Corporation of British Colombia (ICBC) gave her a quote of nearly $21,000 a year for her 2008 Honda Fit. Prior to the quote, she had been paying only $2,000 a year. McArthur claimed that while he is new to BC, Hodge had a 25-year clean driving record. She also said that her partner even has the documentation to prove it. Although her partner has a spotless driving record, it was McArthur that had some previous claims. Under the current premium pricing system, her claims history would hurt Hodge’s, even if he was listed as the principal driver of the vehicle. “They’re deciding a future insurance on a fictional history,” McArthur commented. CTV News approached ICBC regarding the sudden surge in McArthur’s quote, and the insurer responded, saying that it would resolve the concern.

Spotlight

Health care costs, and consequently employee health benefit costs, have been growing at an alarming rate in recent years. As health care costs climb, the amount your employer must pay for your health benefits also increases. Unfortunately, the trend of health benefit costs rising faster than the rate of inflation is expected to continue. Unpredictable and uncontrollable health insurance rate increases are having a very serious financial impact on many employers and employees. Employers are also passing more of these costs onto employees, as the percentage that employees are asked to pay is also increasing.


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INTELLECTUAL PROPERTY

illumifin to Acquire LTCG to Expand Third-Party Administration Capabilities

Hoplon Capital | February 28, 2022

illumifin, a leading insurance third-party administration and software provider, today announced it has signed a definitive agreement to acquire LTCG, a leading provider of administrative solutions and clinical services to the long-term care (“LTC”) insurance industry. The transaction is expected to close within the next 60 days. The strategic acquisition will make illumifin one of the largest insurance third-party administrators in the country with leading capability in underwriting, policy administration, health risk assessments and claims management. By combining illumifin’s third party administration and technology solutions with LTCG’s proprietary long-term care administration platform and claims capabilities, the company will be well positioned to advance digital capabilities across the market and provide end-to-end administration of next generation hybrid long-term care policies in addition to all the other products currently supported. “The integration of illumifin and LTCG will deliver superior value to customers through our deep insurance knowledge, technology innovation and operational excellence. The combined company will be a true market innovator with unparalleled depth and capabilities to assist insurers as they continue their digital transformations.” -illumifin’s CEO Phil Ratcliff “Given our 25-year history as the leading partner for long-term care insurers and our deep customer relationships, the integrated company will allow us to build more strategic partnerships with our clients and help them enhance the customer experience for both policyholders and distributors,” - Peter Goldstein, LTCG’s CEO. illumifin was formed in July 2021 by Abry Partners and Hoplon Capital to be an innovative partner to the insurance industry, delivering visionary technology enabled services and software solutions, to individual and group insurers. About illumifin illumifin provides third party administration and technology services to individual and group insurers. The company, launched in 2021, blends insurance industry knowledge, technology leadership and operational execution to prepare insurers for the digital future. illumifin is a diverse, passionate and empowered team of insurance specialists committed to the growth and success of its customers. About LTCG LTCG is a leading provider of administrative solutions and clinical services to the long-term care and life insurance industry, with over two decades of experience in this space. The company addresses all types of customer needs and policy requirements—from application processing and underwriting of new business to claims and administration of open and closed blocks. LTCG’s advanced data analytics, actuarial and risk management capabilities and unmatched industry expertise can help organizations manage their business and develop emerging products such as hybrid life/long term care policies. In addition, LTCG provides clients with unique insight about risk management built upon the industry’s largest database of long-term care underwriting and claims outcomes. About Abry Partners Abry is one of the most experienced and successful sector-focused private equity investment firms in North America. Since its founding in 1989, the firm has completed over $90 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages over $5 billion of capital across its active funds.

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INSURANCE TECHNOLOGY

Demotech Withdraws Financial Stability Ratings® Assigned to Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company

Demotech, Inc. | April 01, 2022

Effective March 29, 2022, Demotech, Inc. withdrew the Financial Stability Ratings® (FSRs) previously assigned to Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company. Despite a substantial capital contribution in the fourth quarter 2021, the operating loss in 2021, which reflected the evaluation of losses and loss adjustment expenses associated with Hurricane Ida, resulted in a level of capitalization below what was needed to sustain FSRs at the A level." Joseph Petrelli, President, Demotech, Inc. About Demotech, Inc. Demotech, Inc. was the first firm to review independent, regional and specialty insurers. Since 1985, Demotech has served the industry by assigning accurate, reliable, and proven Financial Stability Ratings® to Property & Casualty insurers and Title underwriters. FSRs provide an objective baseline of the solvency of an insurer. Demotech's philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size. Demotech's increasing accreditations and acceptances has resulted in its review of more than 450 insurers operating in the US.

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INSURANCE TECHNOLOGY

Arthur J. Gallagher & Co. Acquires Commercial Insurance Underwriters, Inc.

Arthur J. Gallagher | March 25, 2022

Arthur J. Gallagher & Co. today announced the acquisition of Springfield, Missouri-based Commercial Insurance Underwriters, Inc. (CIU). Terms of the transaction were not disclosed. Founded in 1984, CIU is a surplus lines agency offering commercial, personal and professional lines coverages for businesses and individuals with complex, unique or hard-to-place risks, primarily throughout the upper and lower Midwest. Kim Moore and her associates will remain in their current location under the direction of Matt A. Lynch, head of Central Region-Binding for Risk Placement Services, Inc., Gallagher's U.S. wholesale brokerage, binding authority and programs division. CIU is a widely known, well-managed agency that enhances RPS's existing presence in the Springfield region, I am very pleased to welcome Kim and her associates to Gallagher." J. Patrick Gallagher, Jr., Chairman, President and CEO. Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. The company has operations in 68 countries and offers client service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

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RISK MANAGEMENT

Truist Insurance Holdings launches new Insurance Services Division with close of Kensington Vanguard acquisition

Truist Insurance Holdings, Inc | March 03, 2022

Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation and the sixth-largest insurance brokerage in the U.S., announced todaythat it has closed on the acquisition of Kensington Vanguard National Land Services (KV), one of the country's largest independent full-service national title insurance agencies. BridgeTrust Title Group, the company's existing title and settlement services business, will be integrated into and operate under the KV brand. The consolidated operation will be one of the largest real estate service agencies in the U.S. Concurrent with the close of this transaction, Truist Insurance Holdings announced the creation of a new Insurance Services Division, which will include not only the combined KV organization but also its Premium Finance business, which is marketed through its AFCO brand in the U.S. and CAFO brand in Canada. The new division will report to Todd Wartchow, executive vice president of business development and strategy for Insurance Holdings. "At Truist Insurance Holdings, we serve our clients across a broad and diversified portfolio of businesses, augmented with value-added services like real estate transaction support and premium financing, We're excited about how our expanded title insurance business and our new division allow us to deliver on our purpose of inspiring and building better lives and communities." -John Howard, the company's chairman and CEO. The newly combined KV business will be led by Brian Cooper and Jarett Fein, currently co-chief executive officers of KV. Barbara Jones, title insurance manager at BridgeTrust, will delay a previously planned retirement until year-end to support the transition. Additional KV leadership announcements will follow as the business integrates into Truist Insurance. There are no changes to the Premium Finance organization and leadership as part of its transition to the new Insurance Services Division. About Truist Insurance Holdings Truist Insurance Holdings, Inc., the sixth-largest insurance broker in the U.S. and seventh-largest in the world, is a subsidiary of Truist Financial Corporation (NYSE: TFC). Headquartered in Charlotte, NC, Truist Insurance Holdings operates more than 240 offices through its subsidiaries: McGriff Insurance Services, Inc.; CRC Insurance Services, Inc.; Crump Life Insurance Services, Inc.; AmRisc, LLC; and its Premium Finance companies (AFCO Credit Corporation and CAFO Inc.). To learn more, visit www.truistins About Kensington Vanguard National Land Services Kensington Vanguard National Land Services, LLC, headquartered in New York City with 400 employees, is one of the largest full-service national title insurance and settlement agencies in the U.S. Founded in 2002, Kensington Vanguard provides commercial and residential title insurance, settlement, escrow and 1031 exchange services.

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Spotlight

Health care costs, and consequently employee health benefit costs, have been growing at an alarming rate in recent years. As health care costs climb, the amount your employer must pay for your health benefits also increases. Unfortunately, the trend of health benefit costs rising faster than the rate of inflation is expected to continue. Unpredictable and uncontrollable health insurance rate increases are having a very serious financial impact on many employers and employees. Employers are also passing more of these costs onto employees, as the percentage that employees are asked to pay is also increasing.

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