The Ontario Broker August 2013 by Annex Business Media

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THE ONTARIO BROKER

THE OFFICIAL PUBLICATION OF THE INSURANCE BROKERS ASSOCIATION OF ONTARIO (IBAO) august 2013

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on a roll 02 president’s message 04 HR Strategies 05 ybc update 06 territory update

07 estate planning strategies 10 csio update 11 ibri update

12 osaid update 13 member benefits 14 community view

President’s Message The Official Publication of the Insurance Brokers Association of Ontario (IBAO) Published by

Editor Angela Stelmakowich astelmakowich@canadianunderwriter.ca 416-510-6793

The Next Generation

Senior Publisher Steve Wilson steve@canadianunderwriter.ca 416-510-6800 Associate Publisher Paul Aquino paul@canadianunderwriter.ca Account Manager Michael Wells mike@canadianunderwriter.ca Account Manager Christine Giovis christine@canadianunderwriter.ca Account Manager Elliot Ford eford@canadianunderwriter.ca Art Direction Sue Williamson The Ontario Broker is published monthly by Canadian Underwriter magazine (www.canadianunderwriter.ca). Canadian Underwriter’s Insurance Group of publications is part of Business Information Group (www.businessinformationgroup.ca), a subsidiary of Glacier Media Inc., a leading Canadian information company with interests in daily and community newspapers and business-to-business information services. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or in full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent. The articles that appear in this publication represent the opinions of the authors and do not represent or embody any official position of, or statement by, IBAO; nor do they attempt to set forth definitive action standards or to provide legal advice.

Insurance Brokers Association of Ontario 1 Eglinton Avenue East, Suite 700 Toronto, Ontario M4P 3A1 Tel: (416) 488-7422 Fax: (416) 488-7526 Toll Free: (800) 268-8845 (888) ASK-IBAO www.ibao.org Annual subscription is $52 + tax. To order email: contact@ibao.on.ca For information on submitting an article, contact Ashley Hunking Marketing Coordinator ahunking@ibao.on.ca

The Ontario Broker / August 2013

Debbie Thompson President IBAO I had the privilege of attending the Young Brokers Council (YBC) Conference this year in Niagara Falls, and I am so inspired by this next generation of leaders for our broker distribution channel. Our future is in these individuals — and we need to invest in this group of impressive minds if we want to have a sustainable channel. If you are a “trekky,” you will remember that in the television series, Star Trek, The Next Generation, the voyage of the Enterprise was to continue the mission, to explore strange new worlds and to boldly go where no one has gone before. Well, that is how I felt after three amazing days of being with our young brokers of today… and the future. The YBC Conference is clearly the arena for our young brokers to share ideas and have a common voice within our industry.

To truly live their mission statement of encouraging long-term success by building a strong professional network is to ensure that there is perpetuation of our industry. The excitement they share and their desire to learn will, no doubt, be the solid foundation for the future of our association and independent brokerage system. Much like the Enterprise, they are on a mission! BLASTING OFF With more than 100 in attendance, Dwayne Gagne and Alanna Taylor led us through a presentation of the YBC’s view of the Broker of the Future. They showed us what they saw as the new world and boldly went where we, as brokers, need to go — beyond traditional. This generation of brokers understands the will to connect with today’s consumer the way that consumers want, which is the way we need to do business now and in the future. They understand that it may be a strange new world for my generation — and those before me — but they are willing to help us adapt so that we can continue to be the distribution channel of choice for both the consumer of today and in the future. Young brokers are excited by what the future holds and how they can be the ones to lead us to our destination. The actions of this generation can inspire the next generation of leaders to dream more, learn more, do more and become more

— and that’s what I call leadership. The young brokers we have in our industry are the strength that we need leading into the future. It’s the greatest investment our industry can make, as this is the Next Generation. NEW LAUNCH Speaking of the Next Generation, IBAO has just recently revamped one of its flagship programs and, this September 24, will be launching its two-part series, entitled Developing a Leadership Mindset. The series is founded on the belief that “people assets” at any and every level within a brokerage are vital to the sustainable competitive advantage of an organization. This program is based on focus group findings from meetings with YBC members, brokerage owners and insurance companies. Each group was asked to identify what attributes a successful broker would need to have, and it is those competencies that form the foundation of this program. As an example, let’s consider the Customer Service Representative (CSR) role within a given brokerage. CSRs are the direct link between a brokerage and its client base. They are the initial point of contact, and their primary role is to help answer customer questions and provide assistance. In other words, CSRs influence the customer experience factor in a big way. With a focused vision, an

President’s Schedule: September 17 Executive Meeting September 18-21 IBAC AGM & Board Meeting enthusiastic attitude, the courage to initiate something new and the commitment to look within and reflect on ways to do things even better, a CSR can really move an organization forward. After all, a positive customer experience drives stronger customer retention and customer loyalty! LOOKING BEYOND Preparing for the future while delivering results today is one of the biggest challenges that our industry faces. It is a challenge that requires us to not only recognize the intricate linkages between developing individual and team

leadership and building organizational readiness for the future, but it is also about providing those in your organization with the tools they need to get you there. The next generation of talent cares about meaningful work and the chance to make a difference. It is important to provide them with the experience and the opportunity to do just that — allow them to refine their natural strengths, make a positive contribution and help move your brokerage forward. I am sure that there are individuals within your brokerage today that could

benefit from taking the Developing a Leadership Mindset program, details of which were released earlier in July. Please note that space is limited! If you have not already registered someone in your office and are interested, please contact Helen Dunlop, Director of Broker Development and Education, for more details at hdunlop@ibao.on.ca. John F. Kennedy said it best: Leadership and learning are indispensable to each other. Leading the Way... Our Vision, Our Brand, Our Strength

September 25-26 IBANB/IBANS Brokers Convention CEO’s Schedule: September 10 YBC Team Leaders Meeting September 11 Working Group Committee September 12 Group Plans Committee September 17 Executive Meeting September 18-21 IBAC AGM & Board Meeting September 25 AISAC Meeting September 25-26 IBANB/IBANS Brokers Convention September 29-October 2 TENCon Conference

IBAO would like to thank all our sponsors . . . MAGENTA SPONSORS

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GOLD SPONSORS

SILVER SPONSORS BMO Bank of Montreal Northbridge Insurance WINMAR Gore Mutual Insurance

BRONZE SPONSORS Totten Group Paul Davis Systems WineryPak Wawanesa Insurance Pembridge Insurance Company First Insurance Canada

FRIENDS MEDIA SPONSORS Zurich Canada Canadian Underwriter Insurance Bureau of Canada Magazine Industrial Alliance Ci — Top Broker Magazine Benefits Coordinators BCI Inc.

August 2013 / The Ontario Broker

HR Strategies

Alex Gallacher Managing Director ENGAGE HR

Professionalizing Your Brokerage Our last article focused on talent — that undeniable source of competitive advantage, particularly in customer service and engagement-driven businesses like that of most brokers. The question then becomes, how do we maximize the opportunity for talent to contribute to our all-important, and ideally unique, customer value proposition? The answer, strangely, but not really when you think about it, is to provide a friendly, effective and highly professional environment where talent can thrive based on individual contributions to the business. When we speak of a professional environment, we are largely speaking about a meritocracy. At its core, a meritocracy is an organization that allows people to achieve and advance based on their contributions. A professional environment in this day and age is also one that provides a strong employee value proposition, thereby driving employee engagement and performance. Providing such an environment typically consists of offering a number of core elements, usually referred to as a human capital platform. The platform is essentially a foundation that allows for the professionalization of your brokerage as it relates to its people. As with most foundations, it is difficult from which to build if elements are missing or damaged. These elements normally include the following: • Role Clarity: a clear understanding of what, how and why particular things must get done, in line with underlying 04

The Ontario Broker / August 2013

behavioural standards, and clarity of intent so that talent gets things done properly, the first time. • Attraction, Recruitment, Selection and Integration: the ability to draw talent to your employee value proposition, choose precisely for skills and fit, and, then, effectively integrate talent to contribute, sooner than later; • Reward & Recognition: fair, transparent and clearly understood rewards that include compensation elements such as base salary, bonus plans, benefits and potentially longer-term incentives in some cases, coupled with frequent, ideally personalized recognition efforts so that talent sees the fruits of its labours and creates a circle of continuous discretionary effort; • Performance Management and Appraisal: although much-maligned, performance management and appraisal efforts should enable brokerage managers to speak with talent about what motivates them, how they are doing in relation to the what, how and why elements of their roles, and to express themselves in a safe, constructive manner meant to help everyone succeed. Difficult conversations in this area should not be avoided, but may require detailed planning, particularly with newer or less-experienced people managers. • Training & Development: enables and develops talent at several levels: organizational — training designed to prevent conditions in the workplace (for example, harassment); task — addresses matters, for example, such as how the brokerage ensures the right questions are asked and the appropriate data is captured for the broker management system; and person — for example, ensure customers “hear the smile” during telephone interactions (real talent typically cares about its own development); • Employee Relations: normally consists of the policies, procedures and practices that ensure talent knows the “rules of the road” with respect to things like vacation time, hours of work, health and safety, accommodating disabilities, valid and defensible occupational requirements, and so on. Many of these have been captured and are available to IBAO broker principals through the association

directly. Numerous brokerages have worked with us to take this baseline work and move well beyond to create their own “magic recipes” to link more specifically to their organizational values and strategies. This helps to tailor the professionalization of a brokerage to the needs of talent, differentiating your brokerage from others and helping to create a unique employee value proposition; • Talent and Career: this is about aligning individual talent with organizational objectives in a way that enables talent and talent’s career growth opportunities. This level of alignment normally rests on underlying managerial strengths, which can be built over time or added to as necessary to support the business. A common tool in this area is creating self-awareness, such as that offered by ENGAGE HR’s 360° Feedback offering. • Culture: this is the key set of values, assumptions, understandings and norms shared by brokerage team members and taught to new members. It is the character or personality of your organization, and often determines how the brokerage “feels.” This element is probably the most elusive, but arguably the most important as it impacts all others. It is also relatively easy to measure through the Values Fit Surveys created specifically for IBAO members. This is particularly the case for the Employee Opinion Survey, which gives brokerage principals and general managers the opportunity to “check the pulse” of their own organization’s culture. A further refined tool will also be available for purchase by IBAO members and BBiC graduate brokerages this fall. Professionalizing your brokerage is an investment in a key source of competitive advantage: its people. It helps talent to support customers and has a very strong return on investment when done well and integrated into a robust, well-understood business strategy. To discuss any of these areas with respect to your brokerage, we invite you to take advantage of your complimentary one-hour IBAO member benefit call this month by reaching out to the ENGAGE Advantage Helpdesk at 905/306-8111, Ext. 240. Please also follow us on Twitter at @ENGAGE_HR or e-mail me directly at alex@engagehr.com.

YBC UPDATE

Chelsea Smyth President YBC

YBC Conference 2013: Nine Years and Counting Our recent Young Brokers Council Conference, held in June at the Sheraton on the Falls in Niagara Falls, was yet another record year for attendance and a general all-round success. This annual event attracts enthusiastic, professional young brokers from across the province. Young brokers with an appetite to grow industry knowledge, network with peers and learn about the latest industry trends and challenges come to share their vision for a lasting, strong, competitive broker channel. Last year, the conference featured a seminar on social media. With this in mind, YBC introduced a general information event app. The app’s “My Schedule” function helped participants organize schedules so that they could attend events such as Meet and Greet, Cirque Entertainment Night, speaker presentations and Casino Night. The app “Map” also helped them to locate Planet Hollywood, the new venue for the conference’s popular casino night. This was a well-attended event that gave everyone an opportunity to have fun and meet old and new friends. The “Photo” section of the app was designed to keep memories fresh and share all the fun via Facebook and Twitter. The app was an exciting addition to this year’s event! Each year, the YBC schedules informative and engaging speakers to deliver relevant, inspiring messages. The goal is for participants to learn, grow and be

motivated to share ideas with colleagues, renew their energy and confirm their career choice. This year, our speakers included George Cooke; Gair Maxwell, the Branding Provocateur; Shawn DeSantis, then Executive Vice President of RSA; Tim Shauf, President and CEO of Farmers’ Mutual Insurance Co.; IBAO President Debbie Thompson; and Dr. John Fast, an expert on family business. ABOUT THE BRAND Brand distinction as a means of strengthening the broker channel was a main topic. How can we grow our brand? An exceptional brand experience cements client loyalty and builds confidence in our independent brokers. Similar to people lining up at Starbucks or at the Apple store, we want consumers to line up to work with a broker. We want consumers to understand the benefits that independent brokers offer, as well as to experience the rewards of the broker channel as a whole. Debbie Thompson challenged us to think about how our broker association can help us lead the way. Technology is a big factor in being a leader in the industry and the association is working on initiatives such as eDocs and Data Exchange. Networking and

idea-sharing begins at the annual conference. Keep the YBC conference alive throughout the year by continuing to ask, build and share. The conference is designed with young brokers in mind. Feedback is welcome and appreciated. thanks all around Thank you to all participants who completed the conference survey. Your voice is heard — and your comments and ideas will factor into ongoing YBC initiatives and events, as well as influence the 2014 conference offerings. It is encouraging to note that 97.1% of survey participants would recommend the conference to other young professionals in the industry. And all — 100% — of respondents found value in networking and interacting with attendees. Confidence and optimism was evident with regard to the broker channel. Many expressed the intention to promote YBC to both co-workers and industry peers. We encourage you to move forward with that intent. It is a pleasure to share your enthusiasm, vision, energy and dedication to your chosen profession. Thank you for your contribution to the broker channel. You are our future!

It is encouraging to note that 97.1% of survey participants would recommend the conference to other young professionals in the industry.

August 2013 / The Ontario Broker

TERRITORY UPDATE situation regardless of the fact that hundreds of other homes are similarly affected. Their concern is for their home and their family — we as brokers must respect this and help them rebuild their homes and get their lives back to normal.

Wendy DaSilva Director Territory 10 IBAO

Caring Action As I write this, we are still in the throes of helping our customers recover from the July 8 rainstorms in the Greater Toronto Area. Insurance brokers should be proud of the way that they have responded and advocated for their customers during a time of stress and distress. While we continue to be faced with severe weather caused by climate change or the normal pattern of the planet (whichever you wish to believe), as insurance professionals, we must strive to provide a customer experience second to none. The recent event underscores our need to be there for our customers in whatever way they choose to deal with us. Today’s consumer expects fast response to their

an innovative approach To speed this along, brokers need to innovate technologically. We should have voice recordings to simplify the process for the consumers and direct connections to vendors by mobile means to ensure our customers get served first. We need to be able to keep our customers informed both by telephone and via an online presence, with updates posted through text messages or BBM as the customer prefers. This investment in technology proves itself to be well worthwhile in a crisis, as was the case in Toronto. I am proud to see that Toronto brokers responded to their customers’ need in such a positive and proactive manner, working with companies and restoration professionals to ensure our customers have been cared for. Brands are built on moments like this; they are known as “moments of truth.” Toronto brokers have endeavoured to bring strength and credibility to the broker brand and the Bipper. This has been a busy year for the Insurance Brokers of Toronto Region

(IBTR), with its continued focus on community involvement and charitable work. The IBTR Board of Directors, under the leadership of Greg Robertson, has built a playground set for Million Dollar Smiles, sponsored the York Region Special Olympics and worked with the Vaughan Food Bank to gather much needed donations for the less fortunate. IBTR has also hosted several events for its members, including Friendship Night, which attracted 450 attendees, a sold-out golf tournament, a Toronto Harbour boat cruise, which was scheduled to take place August 13. In December, IBTR will welcome Joe Carter as the motivational speaker at the holiday luncheon. In addition to this, luncheons are held at Le Parc — respected industry leaders like Brigid Murphy (January) and Jean-François Blais (November) have extolled their views on the industry and the plans of their own companies. Toronto region brokers must strive to follow the leadership shown by IBAO and innovate our operations to provide the customer experience that the insurancebuying public demands and continue to strengthen the broker brand. Beyond all of that, we can also take advantage of IBTR’s educational offerings and opportunities for fellowship and networking.

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The Ontario Broker / August 2013

Estate Planning Strategies

Derek de Gannes, CPA CA Tax Partner CW Partners LLP

Splitting Income In today’s environment — with tax rates on regular income approaching 50% — there is a lot of incentive to split income with family members so as to lower the overall burden by placing income in the hands of those who pay tax at lower marginal rates. This article reviews both the obstacles and the opportunities of splitting income. Our tax rules include rules that, when engaged, attribute income to the higher income earner when he or she tries to income split with a spouse or children. In our world of exceptions, the attribution rules will not apply when that person makes a loan to a spouse or minor child, and interest is charged on the loan at a rate at least equal to the interest rate prescribed by Canada Revenue Agency (CRA) at the time the loan was made. In addition, the interest owing must be paid annually within 30 days after the end of the year (i.e., January 30). Like most planning arrangements, a contract or agreement will be a key component. The difficulty with splitting income with kids and, in particular, minors, is that they cannot enter into enforceable contracts. For this reason alone, the comments that follow include a family trust where the beneficiaries include both minor children and children 18 years and over to achieve the income-splitting objectives. following the process Once a family trust is settled, a parent will make a loan to the trust at the prescribed interest rate in effect at the time of the loan (i.e., 1% if the loan is made on or before August 31, 2013). The 1% interest

rate will not change as long as the loan is in existence, even if the prescribed interest rate goes up. The trust will then invest the loan proceeds and pay the lending parent the 1% interest by January 30 of the following year. The parent will report the interest earned on the loan as taxable income, and the trust will deduct the interest amount paid in determining its taxable income. The net income earned by the trust less the interest expense paid will be paid or payable to the children. It will, in turn, be taxed to the children at their low tax rates, possibly resulting in no income tax to them. This type of planning works very well, say, in those instances where a parent pays the high cost of a child’s post-secondary education. Like any other tax planning, the devil is in the details. I cannot emphasize the importance of paying close attention to

the requirement to pay interest on the prescribed rate loan on or before the January 30 date. Miss a payment and the plan goes offside with little or no opportunity to bring it back on side. Who knows how long the prescribed rate will stay at 1%. The CRA resets the rate every quarter — the next announcement will be made for the last quarter of 2013.

It is critically important to pay interest on the prescribed rate loan on or before January 30. Miss a payment and the plan goes offside.

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August 2013 / The Ontario Broker

Donovan Insurance Brokers was named Brokerage of the Year for the second year in a row last fall. Changes are rounding into form, ensuring that the brokerage is well-positioned to grow even more. By Angela Stelmakowich

on a roll What’s better than once? Twice, of course. It was a bit of a surprise, but may have felt twice as good when Donovan Insurance Brokers Inc. (DIB) in Waterloo, Ontario was again honoured as Brokerage of the Year (more than 10 employees) at IBAO’s Awards of Excellence last October. “It was not really expected, but certainly welcomed,” says brokerage president Kevin Donovan. Is the DIB team setting its sights on three in a row? The submission has been filed, Kevin says, but only time will tell. In the interim, it may be time to enjoy how considerable efforts in recent years are bearing fruit. Noting that DIB purchased a brokerage a couple of years ago, Kevin says it has taken some time to move that business from paper files to a paperless system, match up files, get new staff trained and integrate new employees into the extra companies (DIB dealt with

eight companies while the purchased brokerage had dealt with just three). Still, Kevin considers it time well spent. It is important for everyone to be working off the same page, he says, and this takes time to make sure things are right. “We’re quick to implement, but slow to finalize,” he says, laughing. “We like to do that in stages and implement things piece by piece,” Kevin explains, taking care to ensure a high level of customer service is maintained. “The customers really shouldn’t notice what we’re doing internally,” he says. And what is being done internally seems to be working. Kevin reports that DIB’s growth year to date is about 15%. GROWTH CURVE The hope is there will be more growth, perhaps through more acquisitions. “We would entertain any acquisitions that

would make sense,” says Kevin. DIB’s appetite is fairly broad, he reports, pointing out that the most recent acquisition was his seventh, “going back to me buying this place,” since about the early 1990s. “We have strong management here. We have great market relationships with our insurers. We have processes and technology to leverage to make even the most basic operation easily integrateable and take care of those customers, which is ultimately what we’re here for,” Kevin says. “There’s no question the aging demographic of ownership is going to continue to bring sales about in the next two years,” he says. “There may be some great opportunities there.” Should the right ones present themselves, the DIB team will be ready. It recently revisited the brokerage’s business vision with an industry expert to assess where DIB is and where it wants to go.

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one, two... The efforts and performance of Donovan Insurance Brokers were recognized for the second year in a row during last fall’s Awards of Excellence. time well spent Taking time to do things step by step allows for an ease of integration that will pay off in the end, Kevin suggests. growth chart Internal changes are proving themselves. Kevin reports that DIB’s growth year to date is about 15%.

Photo: Terry Scott White, supplied by Donovan Insurance Brokers Inc.

retention attention Retention is one of the things that is foremost in the mind of the DIB team. “If you’re keeping your customers, you make it easier for yourself to grow,” Kevin says. easy flow Workflows are better with, among other things, quicker turnaround time on policy documents, a lower error rate and efforts to send out renewals super early. full of praise Kevin thanks DIB staff for embracing change, making the brokerage successful with customers and always putting forth their best effort.

DIB has initiated and documented its internal management model for optimum growth, with the focus being on retaining staff and upselling customers. Efforts around both are aided by the brokerage’s consistent radio advertising campaign, which encourages customers to visit DIB’s website and get an estimate. “Ninety-five per cent of our online hits on Google analytics are people searching for Donovan Insurance or Donovan Insurance Brokers online,” Kevin says. “So they’re specifically going to our address,” he adds. “Our retention has also been pretty key to our growth because we’re doing things that are keeping our customers,” Kevin says. “If you’re keeping your customers, you make it easier for yourself to grow.” Workflows are better, he says, citing a quicker turnaround time on policy documents, a lower error rate, sending out renewals early, and, although not for every customer, making “a conscientious effort to contact our customers well before renewal to have a discussion of what’s going on in their policy.” COMMUNITY FOCUS Beyond looking after things internally, DIB continues to look externally with its many charitable endeavours. These include raising more than $85,000 for local charities with its sponsorship of the 30 hole-in-one charity golf tournaments; having 14 charities benefit through its Oktoberfest hall, with $60,000 going to charity; raising more than $30,000 a year through the Ontario General Insurance Hockey Tournament for Camp McGovern, an affiliate of Big Brothers and Big Sisters; raising more than $10,000 for Scouts Canada and almost $25,000 for the Lutherwood Foundation and their Youth Mental Health programs; and taking part in DIB’s annual eye glass collection, which supports the “gift of sight” effort. Asked what he would like his legacy to be, “other than Freedom 95,” Kevin quips, “hopefully it will be said that I was a good, fair leader.” His biggest praise, though, goes to “staff for embracing change, making us successful with out customers and for putting forth their best effort every day,” he says. Kevin’s hope is that they feel “we accomplished a lot in our efforts and that these were well worth it, that our customers feel well-served by us and we’ve done well for the community.” August 2013 / The Ontario Broker

CSIO UPDATE

Pranab Pandey Manager, Standards & Business Process Improvements Centre for Study of Insurance Operations

Net Results CSIOnet is the Canadian property and casualty industry’s most successful EDI transmission network, with more than 2,000 brokers across Canada exchanging business with insurers on the network. CSIOnet is stable and mature; brokers and insurers have been using it to efficiently transmit policy data since 1999. CSIOnet makes it easier to do business with insurers and the network enables the implementation of important insurance industry standards, such as eDocs, which are policy documents transmitted automatically over CSIOnet. In 2012, more than 860,000 transactions were sent and received each month by brokers and insurers using CSIOnet.

Transactions include new and renewal policies, cancellations, endorsements and eDocs. The volume of transactions in 2012 was an impressive 11,527,571. Visit CSIO.com to learn about all the new developments around CSIOnet that promise to drive efficiencies for brokers. • CSIOnet eDocs: CSIOnet is the transportation backbone of the eDocs process that has generated so much industry attention in the past year. Each month, more and more brokers, insurers and vendors are using CSIOnet to transmit eDocs. In July, for example, Economical Insurance made eDocs an option for its broker partners on six broker management systems (BMSs). Brokers who have yet to implement eDocs should consider doing so. It saves time by allowing fewer touches to get documents into their BMSs, and these time savings lead to increased efficiency and higher productivity. For example, with eDocs, electronic policy declaration pages can be automatically pushed to the BMS and linked to the right account. Before eDocs, brokers had to log into a company portal to access these documents and manually import them into their BMSs. • CSIOnet Account Lookup: The CSIO Help Desk has received many inquiries from brokers requesting their CSIOnet account information. Often, brokers need information such as their CSIOnet

machine address and other credentials to connect with their insurer partners or to set up a new computer to perform EDI downloads. Now brokers can find this information quickly by accessing an innovative new tool on CSIO.com. This tool allows members to query their CSIOnet account information — such as EDI IDs and passwords — directly from the CSIO website and the information will be displayed immediately. Just log into your CSIO.com account and look under the CSIOnet heading to find the tool. • CSIOnet Videos: CSIO’s communications team has responded to the needs of members by creating a number of helpful videos that provide answers to common CSIOnet questions and troubleshooting tips. The videos feature Rita De Andrade, CSIO’s member services coordinator. One video answers some of the most common questions about CSIOnet, such as: “I cannot connect to CSIOnet to perform downloads. What do I do now?” and “I did not receive the downloads that I’ve been expecting. What is the problem?” Watch these useful videos and review the CSIOnet FAQ to help avoid any loss or gaps in your CSIOnet-related business. CSIO’s dedicated team continues to develop new support materials for CSIOnet and improve the overall performance of the network.

BROKERS – looking for markets for your specialty, niche and non-standard risks? Find them in the Insurance Marketer! www.insurancemarketer.com We’ve got you covered in the… Published annually in July by Canadian Underwriter magazine, the extremely popular Insurance Marketer is used daily by brokers across Canada. Both in-print and online at InsuranceMarketer.com, the Insurance Marketer is The Source to assist you in finding a market for even the most unique risk!

The Ontario Broker / August 2013

Published by:

IBRI UPDATE Broker Revolution, one with a single key priority: to develop, enhance and distribute sustainable products and services designed to strengthen the relationships that brokers have with their customers.

Kevin Warren Vice President, Operations Independent Broker Resources Inc.

Advancing the Broker Revolution Have you ever walked into a situation where you automatically knew you were going to win? A situation where the atmosphere, innovative culture and people were all in place to ensure your success? That’s the way I feel about Independent Broker Resources Inc. IBRI is starting a

BROKERING SOLUTIONS There are four things you need to know about IBRI: 1. long-term sustainability of the broker network is at the core of our mission; 2. brokers’ ability to compete in the marketplace today, tomorrow and into the future will serve as the basis of IBRI products and services; 3. brokers who are regarded as irreplaceable to the customer will be seen as even more essential with the rollout of our products and services over the next 12 months; and 4. our brokers’ effectiveness at the point of sale will soon include services to the customer only available through the broker network.

Ja n ua r y 2 9 t h , 9 : 2 2 a . m .

QuICK InsIGhts LEaD tO LOnG-tErm OPPOrtunItIEs I n a n I n s ta n t, KATE MORLEY UNLOCKED A NEW LEVEL OF SUCCESS

“What could be” instead of “what is” will propel IBRI as an industry leader in the solutions-based products that brokers will come to leverage in this competitive marketplace. I need your help as a broker community. Be a risk-taker. If you have not done so already, get access to IBRI’s mobile app and make it available to your customer base as a value-added service. Version 2 of the app is available now in both English and French, and across Android, Blackberry, Blackberry 10 and iPhone devices. Second, revisit the back office setup of myinsuranceshopper.ca for your brokerage and branches. If you have not already done so, maximize all fields available to you to promote your value proposition to future customers. My quest is to prepare you, the broker, for opportunity. I look forward to sharing more of our initiatives with you in the coming months.

Thirty minutes was all the time Kate had to spend with her CNA Underwriter, Phil Samms. And in that instant, Phil helped Kate unlock the code to a deeper understanding of her clients’ business insurance needs. Kate was able to deliver the products and expertise her clients depend on to work the bugs out of their exposures. Way to go, Kate. To learn more about our comprehensive portfolio of insurance products and services, and the industries we serve, visit www.cnacanada.ca.

Construction • Manufacturing • Oil & Gas • Life Sciences • Renewable Energy

August 2013 / The Ontario Broker

OSAID Update the number of students killed in vehicle accidents and, more specifically, crashes caused by inexperienced teen drivers and alcohol consumption. They came together to form what was to become Ontario Students Against Impaired Driving (OSAID). Matt Evans Executive Director OSAID

Partnership vs. Sponsorship OSAID has always had a great respect for the support and commitment of its government and business partners. This year, we felt that IBAO’s generous support should be recognized at the provincial level. That decision led to the nomination of IBAO for the Ministry of Transportation’s (MTO) Provincial Award for Road Safety, which recognizes excellence in corporate leadership and partnerships. IBAO president Debbie Thompson was on hand to accept the award! THE HISTORY Back in 1986 — when the box office hits were Top Gun and Star Trek: the Voyage Home, and the boss, Bruce Springsteen, rocked the billboard charts — a handful of Ontario students, teachers, police officers and community volunteers identified a need to do something about

THE REALITY It was not just a sense of invincibility among these teenagers that was thought to have contributed to the proportionally high numbers of deaths and injuries; it was also the almost universal misconception that most young people are good drivers. Where experience and practice are universally accepted by all ages as the only way to become, for example, an NHL player or an Indy race car driver, it appears most of us — as youth — feel that good driving ability is inherent. Ask an 18-year-old star hockey player why he regards himself as the best player on the team, and the answer inevitably will be something like this: “I am the best because I have worked hard and practised to be the best!” Yet ask any 18-year-old why he or she is an excellent driver, and the answer invariably is the same: “… because I am!” It appears that it is universally understood it takes practice to be good at sports, but that we are all naturally excellent drivers — and experience and practice are not needed. It is this “because I am” attitude held in a coming-of-age frame of reference that makes OSAID just as relevant now as it was back in 1987.

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The Ontario Broker / August 2013

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THE SUCCESSes, THE CHALLENGES MTO’s annual Ontario Road Safety Review shows that since 1993, the number of youth 18 and under who had been drinking and involved in accidents has decreased by almost 50%. This is excellent, but challenging news since we still have the other 50% of the way to go — and each and every impaired driving crash is a preventable one. Sadly, over the last 25 years, there are new forms of dangerous choices drivers are making. With issues to tackle — such as distracted driving and drugs and driving — OSAID is even more relevant than ever. THE PARTNERSHIP IBAO and OSAID have had a partnership for almost 15 years. Support from IBAO has helped OSAID student volunteers reach almost 300,000 people yearly with positive peer-led messaging about smart choices related to driving. IBAO brokers across Ontario have been instrumental in supporting students to attend provincial and national leadership-building conferences and workshops. Brokers themselves have also presented at OSAID conferences and workshops and are a regular presence at the OSAID annual provincial conference. IBAO representatives have also presented the annual Anna Pyles memorial scholarship to an OSAID graduate who has done excellent work in his or her community to promote sober driving. The key to the success of any youth program lies in building and training youth leaders — something that IBAO helps OSAID do every year to develop and train OSAID regional representatives. It may seem like 1986 was a long time ago, but consider that Star Trek is back on the movie screens, Springsteen was scheduled to play three sold-out shows and 50% fewer Ontario teenagers under the age of 18 are making the choice to drink and drive than their parents’ generation did. The IBAO/OSAID partnership has made a positive difference and it continues to help build empowered youth leaders and safer communities. Reaching the other 50% is well within our grasp!

MEMBER BENEFITS undermine the employer investment in providing them.

Gus Pappas Benefits Coordinator BCI Inc.

Solving the Benefits Puzzle Are you getting your money’s worth? Consider that several factors are putting employee benefits at a critical juncture today. A slow economy and rising health care costs are squeezing the ability of employers to offer core benefits without sacrificing the bottom line. As benefits become leaner, employees recognize that their health costs are going up. They are willing to accept more financial responsibility to pay for benefits, but three out of four also report that they need more education to understand how changes in their benefits affect their financial safety net. KNOWLEDGE GAP The vast majority of workers do not understand the value of the benefits they currently have. Benefits today account for more than 30% of employee compensation, yet few employees know the actual cost that employers pay for providing benefits — and health benefits in particular. Although 40% of employees surveyed admitted that they lack any knowledge of their health insurance costs, only 15% of those who thought they did know were able to provide a reasonable cost estimate. It is not simply a matter that employees underestimate how much their employers pay for health insurance; they also underestimate how much they pay out of their own pockets for non-health benefits. Employees without information about their current benefits are unable to appreciate their value, which serves to

TRUE VALUE A benefits knowledge gap carries a number of consequences. First, as the economy rebounds and employment opportunities increase, workers who do not know the value of their current benefits are more likely to look for greener pastures. The cost of employee turnover and new employee training is substantial, including the value of time involved in advertising, recruiting, selecting and training new employees, plus indirect costs. These include lower staff morale and lost productivity associated with the typical transition periods. Employers have a vested interest in retaining good employees. In a recent Unum survey, 87% of employees reported it is very important to work for a company that cares about their well-being.

Companies that do not effectively communicate the value of their benefits packages are not getting the credit they deserve. As employers continue to shift the rising costs of benefits to their employees, workers need to know the price components of their benefits package and what financial or lifestyle changes they will face if any of these components are revised.

Benefits today account for more than 30% of compensation, yet few employees know the actual cost that employers pay.

Exclusively Connect With Over 12,000 IBAO Member Licenced Insurance Brokers across Ontario Each Month

The Ontario Broker magazine provides insurance communicators with an exclusive and unmatched readership/reach within which to advertise and connect with brokers. See all the digital editions at: www.ibao.org/news/the-ontario-broker For advertising information contact:

Steve Wilson: steve@canadianunderwriter.ca

Official Publication of the Insurance Brokers Association of Ontario (IBAO)

August 2013 / The Ontario Broker

Community View Norah Black Marketing Coordinator Insurance Brokers Association of Ontario Norah joined the marketing team at IBAO in August. She will be responsible for the marketing initiatives for IBAO’s education offerings and contributing to the association’s overall marketing and communications strategies. Norah began her career in the marketing department at Fanshawe College in London. Her focus was creating unique sub brands for Fanshawe’s area campuses, delivering the new college website and various PR initiatives. For the last three and a half years, Norah has

BBQs, Blankets and More

been part of BMO’s event-based marketing team, holding progressive roles over that time. During her time at the Bank of Montreal, Norah supported all Private Client Group initiatives with specific focus on Harris Private Banking. Her portfolio included the Strategic Thought Forum, the Private Wealth Group Education Series and Women & Money — the last, a program empowering women to take ownership of their financial lives. Norah brought strong leadership and innovative thinking to the team and was a true partner to the lines of business she supported. She looks forward to new challenges at IBAO and contri buting to its marketing and communications strategies.

Special Support

Keil-Dadson Insurance Brokers Ltd. recently played host for the fourth annual Summertime BBQ in support of the Canadian Cancer Society. About $1,500 was raised this year, bringing total contributions to $6,200 over the last four years, as brokers sold popular BBQ treats and refreshments outside of the brokerage in Listowel, Ontario. The BBQ was followed by a generous donation by the brokers of 100 fleece blankets, 50 each to two local volunteer fire halls. Left to right: Chief Eric Jolliffe, Frank Silla and Maria Ahrens Left to right: Trish Fischer, Tracey Goetz, Jason Snider, Tim Keil, Miles Dadson and Fire Chief Gary Boyer

Prepare to Survive

A $10,000 cheque for the Special Olympics is presented by IBTR board member Frank Silla to Chief Eric Jolliffe of the York Regional Police and Maria Ahrens, an inspector and Special Olympics coordinator.

Membership has its

Benefits.

Your Group Insurance Plan, designed exclusively for IBAO members, brings big business solutions to small businesses.

Is it time to compare? For a complimentary quote.

Thank you to First Insurance Canada for its past support and to welcome it as an IBAO sponsor at the Bronze Level.

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The Ontario Broker / August 2013

OntBroker

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2013-07-22 3:29 PM

IBAO School of Insurance EDUCATION FOR BROKERS BY BROKERS

Summer & Fall Education Offerings Upcoming Webinars Understanding Residential Heating Systems, Including Wood Heat

Understanding Residential Plumbing, and Electrical Systems

Fuel types and heating appliances used by your clients have a direct bearing on their property insurance rates and eligibility. By attending this webinar you will increase your ability to perform front-line underwriting duties and confidently explain the residential heating system insurance concerns to your brokerage clients. Recommended for: Personal Lines, Account Executives and CSRs

Houses are more than four walls and a roof, plumbing and electrical are critical components in a home’s composition. Some topics covered include: galvanized plumbing; aluminum, knob and tube wiring and 60 amp electrical panels. Residential Plumbing and Electrical Systems will provide you with the knowledge needed to help your clients understand the risks associated with older wiring and plumbing systems. Recommended for: Personal Lines, Account Executives and CSRs

Date

September 18, 2013

Time

9:30 a.m. – 11:45 a.m.

CE www.ibao.org/education

Date

September 25, 2013

2 Technical Hours

Time

9:30 a.m. – 11:45 a.m.

Webinar Fees*

2 Technical Hours

$125 per person $150 group rate for 2-3 people $175 group rate for 4-6 people $200 group rate for 7-9 people

*Note: For group registrations, register one person using the appropriate group rate. Email the balance of the names to Tracey Blouin at tblouin@ibao.on.ca.

Connecting with the 21st Century Consumer Connecting with the 21st Century Consumer is built around an extended amount of market research and data with a focus on practical implementation strategies. With topics such as branding, technology, and customer experience, this seminar will provide you with the necessary tools to remain competitive and cutting-edge in today’s ever-changing market. You will walk away with an understanding of how to connect with your clients and adapt current business practices to new consumer expectations.

Check our website for 2013 education courses and programs ibao.org/register

2013 Dates & Locations September 10 September 11 September 12 September 17

Kitchener Hamilton London Richmond Hill

Time

9:00 a.m. – 4:30 p.m.

September 18 September 19 September 23 September 25

Barrie Ajax Ottawa Mississauga

6 Management Hours

Fee

$209.00 (members only)

11th Annual CSIP Workshop & Retreat IBAO is pleased to offer its 11th Annual Customer Service for the Insurance Professional (CSIP) Workshop & Retreat. This three-day retreat gives CSR and Personal Lines Managers the chance to be both educated and rewarded for exceptional performance. The program enables you to step away from the day-to-day hectic brokerage activities into a relaxed, yet refined learning environment where you will become equipped with the best practice solutions that define the CSIP program. Fine tune your customer service skills and network with professional peers at one of Toronto’s première spots – Pantages Hotel Toronto.

Date

November 12-15, 2013 QUESTIONS? Contact the IBAO School of Insurance at 416-488-7422 or 1-800-268-8845.

8.25 Personal Hours 8.25 Management

Fee

$1,750

IBAO Education Scholarships If you haven’t already heard, IBAO offers two education scholarships: The Young Brokers Council scholarship, and the IBAO Past Presidents’ scholarship, each valued at $2,500. The deadline for applying has been extended to September 20, 2013. Details and application forms can be found on the IBAO website.