Morning Briefing: Insurers hit with $20 million lawsuit over Canadian seniors homes

Insurers hit with $20 million lawsuit over Canadian seniors homes… UK insurers report rise in confidence… Insurance company fired by Tom Cruise…

Insurance News


Insurers hit with $20 million lawsuit over Canadian seniors homes
A lawsuit claims that insurance companies failed to pay out on policies for seniors’ and assisted living properties hit by the Alberta floods in 2013. Ten companies are being sued by Foothills Foundation for $20 million. The court papers allege that payments are still outstanding for four High River and Black Diamond residential properties and an office building. CBC News reports that no defence has been filed so far and that the allegations have not been proven in court. The insurers named in the lawsuit are; AMSC Insurance Services, Alberta Municipal Insurance Exchange, Catlin Canada ,Northbridge Insurance, Northbridge General Insurance ,Temple Insurance, Lombard General Insurance, ACE INA Insurance, AIG Insurance (aka. Chartis Insurance) and BFL Canada.
UK insurers report rise in confidence
The insurance industry in the UK is in a confident mood according to a new survey from PwC and the Confederation of British Industry. Life insurers are particularly optimistic following the sector’s first profit increase since September 2014. Business volumes between March and May grew for insurance brokers, life and general insurers with continued growth expected over the coming three months. Overall profitability of business rose sharply for life insurers over the past three months and it is expected to continue expanding. General insurers saw a more moderate improvement, but profitability is expected to rise more quickly over the coming quarter.

Jim Bichard, Insurance London Market and broking leader at PwC, commented on the insurance broker market commented: “Brokers continue to invest heavily in technology in order to replace old core systems, increase speed and efficiency and provide data analytics that customers increasingly expect. This will continue to put pressure on profitability in the near term. As the new systems bed in, alongside an expanding physical footprint, brokers hope to see profitability start to improve through accessing both new and existing customers as well as providing additional value through insights.” Insurers are also intending to increase spending on regulatory compliance this year.
Insurance company fired by Tom Cruise
Tom Cruise fired his insurance company for saying a stunt planned for the Mission Impossible 4 movie was too dangerous. In one famous scene in MI4: Ghost Protocol Cruise was seen leaping off Dubai’s Burj Khalifa but the insurance company was not willing to insure the movie if he went ahead with the stunt. The CEO of Sundance Pictures revealed the issue at the premiere another movie recently and said that Cruise wanted to fire the insurance company rather than scrap the scene or get a stuntman to do it. The movie studio went with the actor’s wishes and found another insurer. 

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