Current events by Remi Moreau

La crise québécoise du verglas de 2008 : le bilan final du recours collectif – 2. Les inondations albertaines en juin – 3. La tragédie québécoise de Lac-Mégantic en juillet – 4. La collision mortelle ontarienne d’un train et d’un autobus en septembre – 5. Une tarification automobile modulée en fonction des données de surveillance par GPS – 6. Le Lloyd’s a renouvelé avec la rentabilité en 2012 – 7. Séisme au Pakistan – 8. Retour sur l’explosion de la plateforme pétrolière au printemps 2010 – 9. Le Canada est-il bien préparé pour faire face à une gigantesque marée noire ? – 10. Publication d’un important rapport sur le réchauffement climatique – 11. Les Rendez-Vous de Septembre (édition 2013) – 12. Une taxe sur les transactions financières européennes à l’horizon de 2014 – 13. Subprimes : JP Morgan dans la tourmente – 14. Le gouvernement québécois continue de s’opposer au projet fédéral visant à créer une commission canadienne des valeurs mobilières – 15. Les textos au volant Font l’objet d’une nouvelle champagne de sensibilisation par la SAAQ – 16. Georges Dionne, l’ancien directeur de la revue Assurances et gestion des risques, est élu président de l’EGRIE/ Georges Dionne, former director of Insurance and Risk Management journal, was elected EGRIE president. Continue reading

Abstract To Islamic Insurance (Takaful) par Bouaziz Cheikh

Takaful is the means of bringing the social and economic benefits of modern insurance coverage, in a form consistent with their religious beliefs, to Muslims and to the merging economics of many predominantly Muslims countries. As such, the development of Takaful is crucial, both to social inclusion in non–Muslim countries, and to economic development in a number of countries with emerging market economies. It is therefore only surprising that the Takaful industry is undergoing a period of rapid growth. Yet the development of Takaful faces some formidable barriers that are largely due to the complex structure of takaful understandings and the unresolved issues associated with it. These issues contribute to making the development of an appropriate legal and regulatory infrastructure, as well as financial reporting, corporate governance, rating and other related matters, problematic for the Takaful industry.

 

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L’apport du mix marketing dans le développement des assurances vie en Algérie by Yazid Kahoul and Boualem-Ammar Chebira

This article highlights the Algerian insurance companies’ experience in the realm of marketing and asks whether the principles and techniques of this discipline can be applied to these firms. It emphasizes the need for these companies to invest heavily in marketing development schemes if they are to develop and promote life insurance products and encourage households’ subscriptions. This is mainly because the Algerian social-economic and cultural setting does not encourage the development of this type of product. To achieve this, changes are needed at many levels including: adoption of a new approach to customers, improving after-sales service, quicker compensation procedures, aggressive sales efforts, introducing new distribution channels and innovations in business processes, organizational structures, and products etc. These are real challenges for marketers in these firms, but if dealt with properly, they will help them re-position their life insurance products and achieve growth. This paper, by analyzing relevant data and reviewing the specific Algerian institutional, economic and social context, will examine the conditions of a successful marketing mix policy that enable the development of the life insurance industry in Algeria. Continue reading

La tragédie de Lac-Mégantic – une gestion des risques déficiente by Remi Moreau

The author is reviewing the tragedy of the Quebec small town of Lac-Mégantic, where runaway railroad tank cars filled with dangerous oil and toxic products derailed and exploded over that early Saturday of July 6, 2013, killing 47 people and destroying destroying half of that small city-center.

Days and months after a large portion of the small town of Lac-Mégantic was devastated by a runaway train owned by Montreal, Maine & Atlantic Railway, based in Hermon, Maine and affiliated with Rail World Inc. (Chicago-based rail management company), a lot risk management questions are surfacing about the long chain of responsibility behind such a huge explosion : the MMA company that owned the train, the causes of the brake failures, the type of the tank cars, the rules the state of the rail tracks, the nature of the petroleum products and their mislabelling and the dangers inherent of transporting oils through cities and towns each day, the environmental risks and the lack of adequate rules and standards about the safety inspection by the federal government.

The author concludes on the necessity to learn proper lessons from that tragedy. Continue reading

Assurance juridique : Regards croisés sur son évolution au Québec et en France par Pierre Gagnon et Guillaume Brunel

The authors, in Québec M. le bâtonnier Pierre Gagnon and in France Mr. Guillaume BRUNEL, have been interested for years in legal insurance. M. le bâtonnier Pierre Gagnon chaired the Committee on legal expenses insurance for the Barreau du Québec for ten years. At the request of the Minister of Justice of Québec, he co-chaired a group of experts who were mandated to make recommendations to promote the development of legal insurance in Québec. His works led him to be in contact with Mr. Guillaume BRUNEl, a Ph D resercher in the Faculty of law and economics sciences, Research center Yves Serra Perpignan whose thesis concerns the legal protection insurance in France. Mr. BRUNELis the author of several published articles on the subject. He was heard by both houses (Assemblée nationale and Sénat) for its work on legal aid and legal protection insurance.

Both authors have had the project of writing a joint article demonstrating the features and the development of this type of insurance in Québec and France. The authors will also publish a revised version of the text for the French legal journal La Gazette du Palais Continue reading

The Impact of Regulation on the Availability and Profitability of Auto Insurance in Canada by Mary Kelly, Anne Kleffner, and Si Li

This article investigates the impact of automobile insurance regulation on the size of the involuntary insurance market as well as the level and volatility of auto insurance loss ratios in Canada. We find that rate reduction orders, product reform and a pricing “Grid” that establishes maximum premiums increase the size of the involuntary market, while prior approval does not have any significant effect. In addition, unlike U.S. studies, we find that prior approval does not significantly impact loss ratio volatility. Our models also incorporate the impact of macroeconomic variables that proxy for the underwriting cycle and investment returns. The results suggest that the insurance underwriting cycle and stock market returns appears to be as important in determining insurers’ usage of the involuntary market as regulation. Taken together, our results suggests that regulatory interventions aimed at addressing affordability issues may have the unintended consequence of aggravating availability issues, and underlying market conditions may exacerbate this effect. Continue reading

The history of the Insurance Market in Spain by Ramon Alemany and Montserrat Guillén

We review the evolution of the insurance market in Spain up to the end of the 20th century. From a detailed account of the earliest written records of insurance dating from 1435 in Barcelona, we trace the strong influence that the markets in other West European countries have had on the Spanish market. We report how national insurance regulators have taken steps to promote greater liberalization and harmonization, while the creation of the European Union has led to the consolidation of the presence of many multinational insurers in the Spanish market. Today’s industry is mature, but the market penetration of insurance in Spain, and in the many countries in which Spanish insurers have expanded their business, still lags behind that of the leading economies.

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Réflexions sur la réassurance par Patrick Thourot

This article aims at presenting a broad vision of the reinsurance industry economic model. In fact, reinsurance plays the role of “lender in last resort” in the insurance system, which means that it provides liquidity and necessary capacity to create insurability of most risks, by building up mutualities in space and time for extreme risks. Therefore, the business model is basically founded on risks diversification by nature of risks (Life and Non-Life), by geographical localization, and through optimal structuring of the portfolio, taking into account the available equity and the economic capital required. Whereas the Industry has faced an important movement of concentration during the last three decades, the barriers to entry, which should result from this concentration, do not seem to have discouraged the building up of new reinsurance companies, entering the market from Bermuda. Reinsurance now is strongly regulated in the US, Asia, and Europe.

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