Risky Business: Inside Canada's $86-Billion Insurace Industry

Vernon V. Kakoschke was a lawyer in the law department of Canadian Pacific.

This book provides an inside look at the insurance industry in Canada and does so without overwhelming the reader with reams of facts and figures. It presents a lively and controversial portrait of some of the largest insurance corporations and the men that run them. McQueen goes into the boardrooms and executive offices to analyze their business strategies and evaluate their performance. He does not mince his words or spare any criticism of those companies that he considers to be poor performers. In his view, the management at some companies is so entrenched that the resulting lackadaisical attitude rubs off on all employees. He is particularly hard on those companies that have a predominance of actuaries at senior levels, since he considers that they lack the marketing and general management skills to manage effectively in today’s fast-changing world. Other companies, on the other hand, have brought in brash outsiders to clean house and shake things up — with great success.

The author has devoted one chapter to each of the major companies. Each chapter traces the history of the company from its incorporation to the present day, with particular emphasis on certain milestones such as takeovers and the mutualization of stock companies. He has not, however, ignored the people who work in this industry; he includes a detailed account of one day in the life of a life insurance salesman. Another day is spent following the trials and tribulations of an insurance adjuster. The introductory chapter provides a useful overview of the industry in general and the current trends that will shape the future of the industry, such as the move by some companies toward the concept of one-stop financial services.

Written in the same style as McQueen’s 1983 bestseller The Moneyspinners, which dealt with the Canadian banking industry, this book is a welcome addition to contemporary business history in Canada and is essential reading for anyone seeking to gain a good understanding of the insurance industry.