Understand the insurance Canadian market
Competitive landscape: Shawn
The Canadian P&C insurance industry is known to have a reasonable level of market share concentration. While observing the top organizations within this industry, these businesses are estimated to have over 36% of total P&C industry revenue in 2017. These companies are; Intact Financial Corporation, Aviva Canada Inc., Desjardin Group, TD Insurance Group and Co-Operators Group. Within the next five years, the industry’s market concentration is projected to grow at a moderate rate. This is mainly due to competitors looking to acquire businesses who specializes in different niches within the Canadian P&C insurance industry. Looking at the level of competition regarding this industry, there is no doubt that P&C insurers
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This will lead insurance companies to adjust premium rates upwards. The cycle continues until insurers have strong financial positions and lean towards gaining market share. Therefore, top companies will once again pour all efforts on price competition. Moving on to gaining and maintaining customers, insurance companies need to hire a proper labor force who has experience in the industry and has great P&C knowledge. Additionally, to remain a top player, insurers need to acquire the top brokers and agents by paying them competitive commissions. Therefore, this salary with commission expense plays an important role when it comes to costs which adversely affects insurers competitive pricing schemes. Consequently, insurance companies need to compete on wages. The P&C industry wage average is estimated at roughly 15% of revenues. Thus, it is obvious that insurance companies rely heavily on employees for the sale and underwriting of their products and services. Although insurers highly depend on their labor force, the top businesses are gradually investing on innovation in order to decrease reliance on a large work force and increase employee productivity to
Engineers, contractors, and other businesses must be mindful of and knowledgeable of their legal obligations when performing their occupation or supplying a product. Negligence in the design or construction of a product that results in damage or bodily harm, or could result in damage or bodily harm, can result in liability for economic loss under Canadian Tort law. Engineers, architects, and contractors need to be respectful of their duty of care to ensure their product is precisely produced with no danger of negligence.
I have never had a strong opinion on monopolies in Canada. However, I believe that monopolies can stifle innovation, competition, and affect the prices that the consumer has to pay for a product or service. Since we live in a mixed market economy, Canada has very few monopolies such as the health, airspace, and telecommunications industries. Companies within theses industries are notorious for price fixing, lack of innovation, and competition. These problems are prevalent because of the barriers to entry the new players face such government regulation, the cost of doing business, and infrastructure.
On March 10, 1937, Joseph Lewis and Jack Green started Progressive Mutual Insurance Company. They wanted to provide vehicle owners with security and protection and they thought an insurance company was a good investment for a couple of lawyers who were just getting started. Since its beginning, Progressive has taken an innovative approach to auto insurance. They offered drive-in claims service before any other auto insurance company and in another industry first, they allowed customers to pay their premiums in installments. An appealing option for those who could not afford annual payments. Progressive wanted and still wants to make auto insurance accessible and easy so more people could protect their vehicles.
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Such level of importance creates a highly competitive environment, and currently 71.5% market share is dominated by the top three major players: Loblaw Canada Ltd., Sobeys and Metro, all canadian companies. The attractiveness of the retail segment brought international competition, and in 2005 the giant Wal-Mart entered the market, being then the second big american company in the Canadian reatil industry,
Today, Canadians are concerned with many issues involving health care. It is the responsibility of the provincial party to come up with a fair, yet reasonable solution to this issue. This solution must support Canadians for the best; it involves people and how they are treated when in need for health care. The Liberal party feels that they have the best solution that will provide Canadians with the best results. It states that people will have the protection of medicare and will help with concerns like: injury prevention, nutrition, physical activity, mental health, etc. The Canadian Alliance Party’s plan is to make several policy-developments to benefit Canada’s health care. They believe it will serve the security and well-being best for all Canadians. The last party involved in this issue is the NDP Party; who indicate that they are fighting hard for a better Health Care system in our economy. The NDP Party states that the income of a family should not dictate the quality of health care.
Primary health care is the essential step to the Canadian health system. It is often associated with other specialized health care sectors, and community services. Many patients visit various services under primary health care such as family doctors' offices, mental health facilities, nurse practitioners' offices; they make phone calls to health information lines, for example, Tele-health; and receive suggestions from physicians and pharmacists (First Ministers; meeting on healthcare, n.d.). This service can prevent patients from visiting the emergency department, when all that is required is some guidance and advice. Having primary care services can reduce the consumption of acute beds, where only seriously ill patients can use the acute beds when it is available. Primary care not only deals with sickness care, but it helps patients receive preventable measures; it promotes healthy choices (Primary health care, n.d.). The focus on appropriate health care services, when and where they are needed, enhanced the ability of individuals to access primary care in various settings: at home, in a hospital or any number of family health care venues, such as Family Health Teams (FHTs), Community Health Centres (CHCs), or Nurse Practitioner- led clinics. This paper will look at the litigious heated argument in the Romanow Report concerning primary care. It will begin with a discussion of the outcome of the Accord on Health Care Renewal (2003) and The First Ministers' Meeting on the Future of Health in Canada (2004), both referring to primary care, which will then be followed with an assessment and analysis of the different ways in which the accords have been addressed in support of primary care. Followed by a discussion about the changes on ...
In America, the number of uninsured rises every year and no solution to the problem has
The Canadian health care system is widely known and described by the term “free”, which makes those individuals that classify the Canadian health care system as free, oblivious of what is actually taking place. What this article reveals and Canadians need to understand is that in Canada we have a 70:30 percent ratio of publicly and privately ran health services and those privately ran health services are to be increasing. That 70% is being financed by the government through taxation dollars while the other 30% is directly coming out of individual’s pockets or any benefits or insurance they are covered over. In the mythbuster article it states dental hygiene care is paid by individuals directly out of their pocket or by private insurance
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
Armstrong, P., & Armstrong, H. (1996). Wasting Away: The Undermining of Canadian Health Care. Toronto: Oxford University Press.
Guidelines Recently, the Canadian Life and Health Insurance Association (CLHIA) released a new guideline concerning compensation disclosure. The proposed guideline sets out new standards when it comes to disclosing the compensation paid to intermediaries in group benefits and retirement services. The guideline has been met with mixed reviews, particularly from insurance brokers and other intermediaries in the benefits industry. Many wonder why the guideline is necessary.
For the contrary the loading change (fee to cover the incurred administrative expenses) can be expensive. Also, the insurance sometime fails to meet demand providing limited protection, this insurance shortage can lead to ineffective insurance regulations. As well as, for consumer with minimum loss experience, their premium will be high, because their probability of loss is high.
The unrestricted rate increases are ultimately abused by the corporations. For example, the Insurance Corporation of British Columbia has a system emplace for safe driving. The discount includes a 5% discount for each year you are claims-free, to a maximum of 43% (Claim Rates Scale, 2010). Although that seems appealing, in 2017 ICBC increased insurance rates by 4.9% and 5.5% in 2016, counteracting that discount (Compare car insurance quotes to get the lowest rates in British Columbia). In addition, an increase in insurance rates is predicted to increase by 42% by the year 2020 at the worst-case scenario and 15.8% at the best case.
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.