Uber is Just the Beginning!

Mike Wills

Much has been written about the recent Intact decision to partner with ride sharing giant Uber to provide insurance products to part-time drivers. The announcement essentially removes the number one criticism of the service, opening the door for further expansion.

But, Uber is just the tip of the new “sharing economy” that is changing the way we look at resources. Consider:

  • Airbnb is now the largest vacation accommodation provider in the world, connecting travelers with private owners who have unused accommodations they would like to rent.
  • RelayRides allows car owners to rent their vehicles for a few hours, when not being used
  • Boatbound connects watercraft owners with those seeking to rent a boat for a few hours or a few weeks
  • Snapgoods connects owners of high value items such as musical instruments, power tools and cameras with those needing them temporarily.

In the future, we can likely expect services that connect pilots to unused aircraft, introduces cargo haulers (companies and private individuals) who have excess capacity in their vehicles to those who need to ship something fast or cheap, and allows owners of expensive heavy equipment to earn money by renting their gear to someone in need.

Each of these poses an interesting insurance challenge, that likely makes most underwriters cringe. After all, our manuals tell us that mixing personal and commercial use is bad, right? And what is the wisdom of handing over expensive property to a stranger?

But that old-school thinking completely misses the opportunity that this new sharing economy offers. Insurers need to think of ways to offer insurance to these emerging risks; to respond to the needs of our customers, and do it profitably and responsibly.

The insurance industry has an opportunity to shape how these relationships are defined, and to lead, rather than respond.

All it takes is a fresh outlook, a lot of creativity, some true innovation, and a will to benefit from emerging opportunities.

Resources & inspiration

Lead the Pack or Follow the Leader: Insuring Risk in the Sharing Economy, Michael Costonis, Accenture, 2015

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Environmental Liability Insurance isn’t for you? You might want to reconsider

Mike Wills

In 2012 directors of Northstar Aerospace Inc. were held personally liable by the Ontario Ministry of Environment for contaminating the surrounding area of their Cambridge, Ontario manufacturing facility. Unfortunately for Northstar, environmental remediation costs were excluded from the directors’ and officers’ insurance policy.

In the end, “the directors and officers were forced to pay approximately $800,000 out of their own pockets for the completion of interim remediation work,” and “subsequently reach a settlement with the Ministry of Environment to withdraw the remediation order at $4.75 million.
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Ever Wondered About Cargo Insurance?

Mike Wills

International trade represents one of the largest and fastest growing industries in the world today. Many people, however, are not aware of the risks attached to the shipment of goods, and consequently the marine risk is often overlooked. For the logistics professional, whose business it is to move, store or clear goods, marine cargo insurance covers their customer’s interest, while reducing and protecting their own legal liability exposures.

Marine cargo insurance is somewhat different from other classes, and requires a knowledge of shipping, international geography, banking, transportation law, documentation, and economics. A knowledge of the basic principles, definitions, and coverage will provide a practical understanding of this area of international trade.

There are several types of risks that need to be identified and protected:

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Developments At Eagle Underwriting In Western Canada

Mike Wills

We are pleased to advise that Eagle has opened a service office in Vancouver!

Our new location is:

                 Eagle Underwriting (Pacific) Inc.
                 885 West Georgia Street, Suite 1500
                 Vancouver, BC Canada V6C 3E8

                  Tel (604) 683-0506

Cheryl Belland will be operating out of this office, and will be available to assist our brokers. She can be reached at cbelland@eagleunderwriting.com (more…)

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Introducing Insurance for “Things That Move”

Mike Wills

“Our vision for Eagle is to become a one-stop insurance provider for risks associated with “Things That Move”.

We’re excited to share our new vision for Eagle Underwriting.

Changes in the insurance marketplace and the globalization of business for companies of all sizes, have resulted in the need to view many risks differently – especially those with a transportation component.

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A unique strategy for an increasingly complex industry

Mike Wills

Eagle underwriting’s ‘things that move’ strategy was developed in response to a challenging insuring climate that is making it difficult for brokers and clients to source adequate insurance protection, at a time when business risk itself is undergoing rapid change.

Much of the insurance industry sees players making substantial changes in strategy and direction based on what other carriers are doing, rather than examining what their clients actually need. Narrowly defined profit centres prevent many carriers from examining the while risk, and it is not uncommon for parts of an attractive account to be declined, simply because it falls slightly outside of one departments target class or fails to meet a minimum premium threshold.

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