JANUARY 2014
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CHRIS FLOYD, IBAO PRESIDENT, 2014
“GET READY” ISSUE
02 CEO’S MESSAGE 04 VIEWPOINT 05 HR STRATEGIES 06 MEMBER BENEFITS 10 TERRITORY UPDATE 11
LEGAL MATTERS
12 EDUCATION UPDATE 13 IBRI UPDATE 14 CONTINUITY PLANNING 15 COMMUNITY VIEW
The official publication of the Insurance Brokers Association of Ontario (IBAO)
The Official Publication of the Insurance Brokers Association of Ontario (IBAO) Published by
What Will the Coming Year Bring?
Editor Angela Stelmakowich astelmakowich@canadianunderwriter.ca
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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
Randy Carroll CEO IBAO
When I think of what the coming year will bring, words like consolidation, politics, change management and technology all come to mind. It is easy to figure out why consolidation is top of mind, especially given Desjardins Group’s acquisition of State Farm announced in January. Over the course of three years, the industry has seen Intact acquire Axa in 2011, Intact acquire Jevco in 2012, and Travelers acquire The Dominion in 2013. Each of these acquisitions was what would be considered major shifts within the marketplace — and each removed a layer of choice for consumers. We have to be mindful that not all the merger activity is limited to the big guys. In 2013, the industry also witnessed the merger of three mutual insurers that have come together as a single
02 January 2014 / THE ONTARIO BROKER
entity now known as Commonwell, again removing choice for consumers. Will we see more, or will mergers and acquisitions slow down? To be safe, I would say that we will see more. Brokers are advised to be mindful of this and need to be confident that they have the right markets, the right number of markets, strong relationships and the ability to continue to offer choice. If not, it is time to make changes. As your association, we are here to do whatever we can to assist. Whether it is buying, selling, looking for new markets or just getting an opinion as to what you might want to consider, we are just a phone call or e-mail away.
Political spin The politics of politics — love it or hate it — is here to stay. That said, we need to do what we can to influence some major change. Who would ever have thought that government would be party to the insurance transaction like it is today? As noted at the onset, we agree with lowering premiums in a responsible fashion, but what we have is political promises that, if delivered as promised, will do nothing but add to our consumers’ pain. Insurers have been pushed to their limits and have delivered what they can. As such, there is nothing left to give without responsible change. The politics of politics will win consumer votes,
but at the end of the day, less choice and product availability will be the result of irresponsible actions. Brokers must use our united voice and continue to deliver our message to influence change. If you are willing to deliver the message — but are not sure exactly how to do so — or if you are willing and just need a message update, as I stated earlier, we are just a phone call or e-mail away.
Managing change Change management is an interesting pick, but it is what we all need to embrace. From Understanding the 21st Century Consumer, implementing a social media strategy and redefining your business, each of these must be part of the 2014 plan of every broker. Consumers’ buying and communication habits have changed, and understanding them and implementing changes to adopt them is key to broker success. Social media strategies have been proven by a good number of brokers within our network, and successful strategies are tied to our future growth and success. Affinity partners such as Candybox can provide you with the tools and the knowledge to enter this space. If it is education or implementation that you are looking for, consider experts like them to assist you and make what seems to be a daunting task a very easy one. We all need to spend
APPOINTMENT
more time on our business — versus in our business — and we have to become expert change agents. Brokers need to better understand what consumers can learn from us and focus on delivering on that value proposition. From understanding telematics to better understanding policy coverage changes to risk mitigation advice, brokers need to own and become champions of this space. Take a look at your internal operations with a focus on implementing valueadded opportunities. Take your knowledge and expertise and use it to expand on your value proposition by taking a risk management and mitigation approach with all of your customers — not just those you deal with in the commercial space. There is so much that can be done in this space. Please do not overlook what we have to offer. Technology is our game changer: Adopt it early, lead and succeed; adopt it later, follow and catch up. Ignore technology
and you will fail. When implemented, these are two technologies that will save your operation both time and money and have been implemented successfully by 30% of IBAO member brokers. You might ask, “What’s the urgency?” Premiums are coming down. Some brokers will see premium reductions greater than 4%; some will see less — but rest assured, revenue premiums are coming down. The introduction of eDocs and iClarify will help offset the lost revenue that will result from Ontario’s auto reforms. Failing to implement this new technology will result in no change or savings. Our president’s message is not just a catchy slogan that looked good on paper; it has meaning and was well-thought-out. “Get Ready for Tomorrow, Today” — that is exactly what we need to do. Complacency is our enemy and the status quo is an option we simply cannot afford.
CEO’s Schedule: February 4 IBRI Board Meeting February 4-5 IBAC PD Conference February 10 Working Group Meeting
Tara Wishart
February 11-14 American Society of Association Executives February 18 IBAO Board Meeting
The Guarantee Company of North America (The Guarantee) is pleased to announce the appointment of Tara Wishart as Vice President of Claims
February 18 Exec to Exec Meeting with Aviva
for The Guarantee’s Toronto branch, effective December 2, 2013.
February 19 IBAO Executive Meeting
With 21 years of experience in the claims
February 20 YBC Team Leaders Meeting
brings a wealth of knowledge to this role.
February 21-24 IBAC Long Range Planning
tions of our Toronto Branch Claims, all
department for The Guarantee, Tara
February 25-27 Michigan Agents Conference
Tara will be responsible for the operalines, ensuring an exceptional customer experience. Tara began her career in claims with The Guarantee in 1992, and has held roles of increasing seniority with the
President’s Schedule:
company. Most recently Tara held the
February 11-14 American Society of Association Executives
Lines, where she was responsible for es-
February 18 IBAO Board Meeting
ance and Transportation claims across
February 18 Exec to Exec Meeting with Aviva
Association of Canada (SAC).
position of Claims Manager for Specialty tablishing the file strategy and claims response of all Surety, Corporate InsurCanada. Tara is also a member of Surety
February 19 IBAO Executive Meeting
The Guarantee Company of North America is a leader in specialty insurance within the North American market-
February 20 Niagara South Brokers Association Luncheon
place. We offer in-depth knowledge and
February 21-24 IBAC Long Range Planning
grams, transportation and customized
February 25-27 Michigan Agents Conference
tion visit theguarantee.com.
expertise in niche segments, including the construction industry, corporate propersonal insurance. For more informa-
January 2014 / THE ONTARIO BROKER 03
VIEWPOINT Ken Myers, B. Comm., FCIP, CAIB President IBAC
Ready to Elevate the Broker Brand Brand symbols have always been important to businesses and organizations. The name logotype, while injecting the enterprise with a distinct identity and character, is often supplemented by a brand symbol for extra dimension and emphasis. Consider the elegant simplicity of Mac’s Apple, the power of Merrill Lynch’s bull, the agile aggressiveness of Jaguar’s cat and the empathetic appeal of the World Wildlife Association’s endangered panda. Such symbols provide depth and meaning to a brand, setting the tone for what customers should expect. The magenta BIP blanket has been a vital part of the insurance broker brand for many years. 2014 marks the 25th anniversary of the Insurance Brokers Association of Canada’s (IBAC) Broker
Identity Program (BIP) — and our blanket is key to how the brand effectively communicates its importance to politicians and the public. Around the world, IBAC and the broker brand symbolism is recognized by other national broker groups as one of the most developed and comprehensive programs in the industry. An extrapolation of our humanistic BIPPER or “blanket man” logo, the BIP blanket is a metaphor for comfort, protection and caring. It carries an implied promise that brokers will take care of customers and look after their best interests — an expression of a sacred trust between broker and client. IBAC research tells us time and time again that consumers interpret the BIP magenta blanket exactly as intended. It reminds consumers that they are protected and will be supported and comforted by their insurance brokers in times of trouble — next to no cynicism or rejection of any sort. While brand symbols are not new, brand symbols that are particularly relevant to the sponsoring business or organization are not as commonplace. For example, the famous Starbucks “Siren” is well-recognized, but do people connect it to the seafaring history of coffee, interpret it as an inspirational
(even seductive) muse, a storyteller or invitation from the brand to explore and connect with others? Perhaps not. Such a well-understood and relevant asset as the BIP blanket is incredibly important to the overall reputation and credibility of our profession. IBAC incorporates it into its advocacy and marketing efforts, as an investment in the perpetuation and growth of the broker brand. Brokers, brokerages and broker associations each make use of the blanket in various ways. Tens of thousands of blankets have been donated to national organizations, and at the grassroots level, community centres, shelters, blood banks and the like. All are grateful recipients. The goodwill and positive association of our magenta BIP blanket with the broker brand story will carry forward for years to come, adding an extra measure of popularity to the protection and coverage brokers have provided Canadians for generations. With the seemingly more impersonal service that many people feel they get these days in every quarter, a reserve fund of blankets in your community will help underscore the broker’s commitment to customer well-being. Donate BIPPER Blankets in your community. Contact Norah Black at nblack@ibao.on.ca.
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HR STRATEGIES Teresa Landry HR Manager ENGAGE HR
In addition, WCAG 2.0 contains three levels of accessibility from lowest to highest, namely A, AA and AAA. Organizations with 50-plus employees were required, as of January 1, to ensure new public websites and web content conform to WCAG 2.0 Level A.
Mandatory OH&S awareness training
Compliance Ready Employers are advised to take note of the new 2014 deadlines for meeting legislative compliance obligations that will apply to your firm. As always, it can be expensive and damaging for employers found not to be in compliance with employment or occupational health and safety (oh&s) requirements. Beyond the possibility of considerable human costs, oh&s non-compliance, for instance, could result in a client firm also facing harm. This may take many forms, ranging from reduced efficiency to fines and penalties, damages to reputation, and even imprisonment of key personnel. In 2014, employers must meet the requirements below.
The mandatory oh&s awareness training requirement is set to come into force July 1, 2014. At that time, employers must have ensured all workers and supervisors have completed a basic oh&s awareness training program that meets the requirements set out in the new regulation. For employers who already meet the minimum proposed regulatory requirements prior to the effective date, the mandatory awareness training will not pose any additional burden. Also under the regulation, employers will need to maintain records of workers and supervisors who have completed the training, and to verify that for new employees, training has occurred and meets requirements. Take advantage of your complimentary, one-hour IBAO member benefit by reaching out to ENGAGE HR’s Advantage Helpdesk at 905/306-8111, Ext. 240, or e-mail me directly at teresa@engagehr.com.
Accessibility for Ontarians with Disabilities Act AODA is continuously evolving legislation with staggered compliance deadlines scheduled to unfold until 2021. January 1, 2014 was the deadline for all private and nonprofit organizations with 50 or more employees to comply with the following requirements: • Accessibility Policy — develop, implement and maintain a policy that outlines how the employer will meet the requirements of the Integrated Accessibility Standard. The policy and statement of commitment must be in writing and available to the public. • Multi-year Accessibility Plan — the accessibility policy sets out the rules to implement to become more accessible (the what), while the accessibility plan creates a roadmap for achieving compliance and removing barriers to accessibility (the how). The plan must be in writing, be publicly available and be reviewed every five years. • Self-serving Kiosks — other than government and public sector organizations, firms that utilize self-serving kiosks (such as those used for parking payments, ticket validation, self-check-out grocery purchases or licence renewals) must consider the following needs: technical aspects (such as colour contrast and voice-activated features) and structural aspects (such as height and stability, specialized keypads or keyboards and headset jacks with volume control). • Accessible Websites — websites and their content must meet the Web Content Accessibility Guidelines (WCAG) 2.0, an internationally accepted standard for web accessibility developed by the World Wide Web Consortium. WCAG 2.0 contains guidelines on how to write web content in clear language, provide alternate text for images and ensure that individuals can navigate the website using only a keyboard.
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MEMBER BENEFITS Greg Dalton Chief Operating Officer DirectNet Corp.
of coverage — consider, for example, off-premises vehicle impact damage to telephone lines, or an excavation contractor severing buried fibre optics line. Loss or damage away from the insured’s premises likely will not fall within the scope of coverage.
Consider all possibilities
No Phone? Get Ready for Back-Up It goes without saying that telecommunication is critical to the livelihood of almost every Canadian business. Even businesses that rely solely on web-based e-commerce platforms are dependent on telecommunications for services, such as tier 1 customer support and backroom administration. However, like many risk management, disaster recovery and business continuity (DR&BC) issues, the majority of small and medium enterprises (SMEs) in Canada have not planned how to react to a loss of telecommunications and, in most cases, are not aware of the options available to them. Brokers, naturally, think inside the insurance box — where strictly from an insured loss standpoint, there exists coverage for repair or replacement of physical damage along with the application of any available business interruption cover. But not all exposure to loss of telecommunications falls within the scope
Telecommunication service can also be interrupted with no physical damage being sustained. Failure as a result of obsolescence, Telco network failure or an inability to access the business premises — hence phones — for any reason, is not unusual. All of these exposures should be considered when contemplating a backup plan. Consider your own brokerage operations and how you might deal with loss of the phone system. Sure, everyone has mobile smartphones — which are fine for outgoing calls or for inbound ones from people who know your mobile number. But the majority of customers and suppliers reach out to you by calling your business number. And if the cause of the service interruption is a local emergency, the last thing that a broker needs is to think about how to get calls routed. Consider last year’s flooding in Toronto and Calgary, or the Quebec train derailment in Lac-Megantic.
Survey the options So, what are the options? Four possible solutions are close at hand. Some Telcos have emergency routing services that they have developed for Fortune 500-level clients which auto-
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.ca
matically route calls to another number if service is interrupted. However, this option usually caters only to service outages involving the Telco’s own network — and the cost to set up and maintain the service is, yes, typical of a Telco. Another possible solution is a DR&BC service provider such as Agility, which will integrate a telecommunications failover into a core disaster recovery and business continuity service. Typical costs begin at around $3,500 annually and involve satellite communications vehicles, temporary worksites and other high-tech solutions, all geared to catastrophic events. Some telephone system and service providers, like Fibernetics’ BrokerLine Solutions, have built-in alternative call routing that instantly re-routes calls when a network interruption is detected. The BrokerLine solution comes at no additional cost — like its call recording feature — but the service is available only with the company’s system. CatastroPhone Telecom ReadiRecovery service is a stand-alone solution that allows the business to create a mirror image of its company directory and extensions. As well, a telephone number is assigned that remains dormant until the business in question redirects its regular number to it when service is required. The cost of service begins at $199 a year for five or fewer extensions — and the service can be sold by brokers to their commercial clients or handled on a referral fee basis. When a broker considers the cost of losing even a single client because of an inability to receive and handle the client’s call, it makes good sense to consider all options before the phone stops ringing. It also makes great sense to talk to commercial clients about their planning process as a value added to your insurance and risk management services. Greg Dalton is a former insurance broker and telecommunication service solution provider. You can contact Greg at gdalton@directnet.ca. IBAO members receive exclusive pricing on a number of continuity planning services, including phone. Call us to learn more!
06 January 2014 / THE ONTARIO BROKER
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IBAO president Chris Floyd sees change coming for brokers. But the consumer-focused strategic thinker is ready for the challenge. BY ANGELA STELMAKOWICH
BUSINESS CASE New Year, new challenge. No problem. Chris Floyd, who became president of the Insurance Brokers Association of Ontario (IBAO) on January 1, is up to the task. Replacing Debbie Thompson, who became IBAO chair at the beginning of the year, Chris is looking to build on the efforts of those before him, but also to leave his own mark. His theme in 2014 — Get ready for tomorrow, today — marries well with those of recent predecessors: using technology such as eDocs to realize greater efficiencies, and encouraging brokers to employ their brand in a more fulsome way. “Those are all things we need to do to be ready for tomorrow,” Chris says. Absent being prepared, it could be a tough row to hoe for brokers. “As brokers, we need to be very aware and ready for things that are coming into
our business which are not only impacting the efficiency and effectiveness of our business, but impacting what consumers want and need. If we’re not ready to accept and adapt those things, we’re going to be left behind.” Meeting customer demands is a constant goal for brokers. Doing so also holds promise of not just maintaining — but strengthening — the channel in both the short and long terms. “As a channel that advocates for the consumer, we need to be ready to adapt to what the consumer needs,” Chris says, though steps cannot be taken blindly. For example, customers are signalling that they want longer hours, but this must be done “within the system (so) we’re not straining our businesses to deliver services that aren’t being used.” The rallying cry to get ready and be open could not come at a more appro-
priate or opportune time. Right now, change may be the only constant. If Chris had to choose one thing — in fact, he would choose many — that he would like brokers to take from his theme in 2014, it would be greater understanding of telematics. However, his message is about more than simply understanding; it is about brokers realizing the importance of adapting to, and gravitating towards, telematics. Beyond understanding how it works, he notes, there must also be education of how telematics will work as an executable process at the brokerage level. Although telematics is not for everyone, “there’s a portion of consumers who are going to continue to grow that want this type of feedback. So how the broker can continue to advocate in that transaction in helping change driving behaviours and educating consumers
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even more is pretty critical,” Chris says. “This is a differentiator; it is a game changer,” he says of telematics. “It is something that the directs are adapting at a quick pace and we need to be able to respond and adapt with a broker-owned solution.” By its very nature, though, change often requires some convincing. Citing the need for a broker-owned solution, Chris points to the experience with company portals and how they influenced internal workload, workflow and efficiencies. “We want to use that as a learning experience to say we don’t want to be managing 10 different telematics programs. We don’t believe that’s in the consumer’s best interest. We believe the consumer is best-served by having a single device that can be portable between insurers and can be portable from the way of their data as well.”
Photography by Peter Tym
Up to the task Change is in the air, but Chris feels both excited about and able to take on those challenges as part of the IBAO board. At ease with the workings of the board — Chris has been a member for much of the last 11 years — the Hamilton native who grew up in Kitchener has amassed experience and developed skills that fit well with his upcoming duties. Chris is president of Individual Insurance Services for OTIP (Ontario Teachers Insurance Plan), specifically OTIP/RAEO Insurance Brokers Inc., TW Insurance Brokers Inc. and Canadian Labour Insurance Services Inc. In this position, he is responsible for marketing, business development and management of operations, as well as results for the sales, service and underwriting business efforts of the group. Chris expects this experience will be of use as part of the IBAO board and team. “I like to think of myself as a very strategic person, so thinking about long-term visions and long-term planning as it relates to my business,” he says. “Being ready for tomorrow, today is about planning, but it’s also about understanding what’s happening both within the business and within our environment that is going to change and could change our business,” he says. Chris would also likely characterize himself as being very consumer-focused. “A lot of what I do here is listen to what our customers are saying,” he says, “and trying to make sure the business is responding to those needs.” Before becoming president of OTIP/RAEO Insurance Brokers Inc., Chris served as vice president from 2001 to 2004, and as general manager from 1998 to 2001. He also worked at Gore Mutual Insurance Company for eight years. Beyond his work experience, Chris has attained his CIP designation, serves as a director on the Insurance Brokers Association of Canada’s Board of Directors, and is a graduate of the Institute of Corporate Directors Program at the University of Toronto’s Rotman School of Management. “I think brokers absolutely have to be ready for the change and then, in turn, have to get themselves ready to change,” Chris suggests. That readiness and willingness covers a spectrum from auto to telematics and all manner of technology, he says. But it also speaks to the ability of brokers “to get ready for change within succession, within their own businesses, and enable that change within their businesses so that they’re setting up the perpetuation of brokers to brokers.” January 2014 / THE ONTARIO BROKER 09
TERRITORY UPDATE Scott Goodison Director, Territory 9 IBAO
Are You Ready? It seems eons ago we all heard President Chris Floyd announce our rallying cry at Convention: Get ready for tomorrow, today. As an ice storm survivor in the Greater Toronto Area, I have had time to reflect on Chris’s words. In fact, as I look forward to 2014, I find his words are prescient to say the least. This year will be a very turbulent one with a great deal of activity in all areas of property and casualty insurance. How do I interpret Chris’s message? In preparing for 2014, brokers will have to be very prepared and very proactive in working on their initiatives. Sitting by the gas fireplace in the dark before Christmas, I had plenty of time to reflect on the major weatherrelated claims in 2013. With more of these events likely in the future, I wondered: How can I help my custom-
ers “Get ready for tomorrow, today”? First, with respect to home insurance, the prices will increase and coverages will change. These are compelling reasons for brokers to communicate effectively with our clients. We can do this much better than our competition. How can social media help? What other innovative ways can we be in closer contact with customers? Being prepared and proactive will be critical to brokers’ success in selling homeowners insurance this year.
Auto ready Get ready for tomorrow, today. How will brokers handle the change in auto rates? How will we inform customers they will not be getting the 15% decrease all at once? How will we explain that in some territories, a customer may not see a decrease at all! Brokers need to be both prepared and proactive to deal with high customer expectations. Keep in mind that there are 6 million policyholders that brokers represent — all of whom will need, and will be looking for, an answer.
Change of Government? Get ready for tomorrow, today: A spring provincial election is possible. Should that happen, the auto insurance issue
will be front and centre. In fact, I have not yet seen an election where auto insurance will be such a major issue. The role of brokers is to ensure the truth gets out about auto insurance. In the war of words played by politicians, the truth is the first casualty. Brokers must guard against letting that happen. Get ready for tomorrow, today: Telematics. Welcome to the future! This initiative led by the IBAO will be a game changer for brokers! It is the most dramatic change that the insurance world has seen in 40 years. The change will allow brokers to remain front and centre in the underwriting of auto insurance. Telematics is a very exciting and dynamic initiative. Brokers must be prepared and proactive to assist our customers in dealing with this change. I’m not sure how wise an oracle we can brand President Floyd, but his theme is clearly a timely one. It will allow brokers to be successful in handling challenges that are sure to unfold in 2014. Weather disasters can hit any community at any time. If your town falls victim, call the IBAO for support. We can field media calls, connect you with helpful services or simply lend a helping hand.
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Published by:
LEGAL MATTERS Brad Wells Partner Snowden LLP, Coverage Counsel
COIs: Problems Ahead Given the theme of looking ahead, it may be fitting to kick off the New Year with a discussion of Certificates of Insurance (COIs) and the potential for future problems. A typical broker’s workday will often include fielding policyholder requests for a COI. Normally, such a request is made to satisfy a policyholder’s obligation in an underlying contract for one of two reasons: provide details of the insurance program and liability limits to another party; or add another party to its insurance program as an “additional insured”. Problems can arise — and this has been seen more often lately in our practice — if the broker treats this request as a routine or mundane task. The first problem relates to a failure to review and understand the scope of the underlying contract. A broker who takes it on faith that the policyholder’s current insurance program meets the requirements in the underlying contract does both the broker and policyholder a disservice. In doing so, the broker is accepting that the policyholder understands and is correctly communicating its contractual obligations. But this can lead to further potential problems, including inadequate liability limits, an insurance program missing one or more necessary coverages, providing merely “proof of insurance” when the contract requires another party to be an “additional insured”, or the COI’s stated scope of coverage does not match the required scope in the contract.
pages, but the key is to focus on the clauses addressing insurance and indemnity requirements. Only then can a broker properly discharge his/her duties owed to the policyholder client. First, the broker must ensure the insurance program — including both limits and scope coverage — is in compliance with the contractual requirements and promptly advise if the program is inadequate. Any recommendations to put the program in compliance should clearly set out any elements that the broker cannot address. This course of action provides the policyholder client fair notice and a chance to either renegotiate the underlying contract or take other steps to address the risk. A broker’s review of the contractual requirements will also confirm if the COI is either merely serving as “proof of insurance” or as evidence of “additional insured” status and the scope of coverage. A broker is in the perfect position to correct a policyholder’s misunderstanding of how contractual obligations and an insurance program fit together. This also ensures that a correct COI is provided. Ignoring this important first step risks expensive litigation and a soured business relationship. Looking ahead to the future, brokers should always request the underlying contract before issuing a COI to ensure that the policyholder’s needs are properly understood and met.
OTIP’s employees and trustees congratulate Chris Floyd on being elected the 71st IBAO President.
Best and Worst Cases At best, the policyholder or the certificate holder immediately discovers the COI is inadequate and requests a corrected COI or an amendment to coverage. While the broker may face some embarrassment, this is, in fact, the best-case scenario. The policyholder will have met its contractual obligations and, as such, litigation is unlikely. In the worst-case scenario, though, the inadequate COI is only discovered when the certificate holder seeks coverage for a claim under the policyholder’s insurance program. If the certificate holder’s claim is denied, or coverage is inadequate, the policyholder will very likely face a lawsuit (or a claim over if sued along with the certificate holder) for breaching its contractual obligations. The policyholder, in turn, will very likely sue the broker for professional negligence. To avoid (or at least minimize) the risk of this unpleasant experience, a prudent broker will request and review a copy of the underlying contract. The contract often runs to many
www.otip.com
January 2014 / THE ONTARIO BROKER
11
EDUCATION UPDATE Nora Black Marketing Coordinator IBAO
Ready to Serve You – IBAO Education Department IBAO would like to introduce its Education Team. Fivemembers strong, the team includes a hopeful country singer and a soaring Snowbird. It even has a real-live queen, a super hero and a banana bread importer.
We want to hear from you! Give us a call and let us know how we can help.
Lola Thake Director of Education Specialty What I bring to IBAO Me, in one word Hidden talent Ask me about... When I grow up, I want to be...
Broker education and leadership Excitement and passion Authentic Cooking My obsession with SOA A country singer – bring on the cowboy boots! Yee haw!
Claudette Hutchinson Education Administrator, Courses & Seminars Role Hidden talent Me in one word Passion What I bring to IBAO When I grow up, I want to be...
Licensing guru, aka “RIBO Queen” Designing clothing Fantabulous Helping youth tap into their dreams Regulatory flavour Grow up...nope, I’m staying a toys r us kid.
Tracey Blouin Education Administrator, Courses & Seminars Specialty What I bring to IBAO Me, in one word Hidden talent Ask me about... When I grow up, I want to be...
Continuing education; onsite/offsite seminars; webinars Accountability Enthusiastic Crocheting My opinion of the Toronto Maple Leafs Part of the Canadian Air Force Snowbirds Aerobatic Team.
Lida Chachula Education Administrative Assistant Role What I bring to IBAO Personal brand When I grow up, I want to be... Ask me about...
Providing support to education; assisting with political receptions, fundraisers and events Banana bread I am what I am Young again All the above.
Camille Davis Education Administrator, National Programs What I bring to the IBAO Personal brand Passion Me, in one word When I grow up, I want to be... 12 January 2014 / THE ONTARIO BROKER
Energy Wonder Woman on the outside, Diana Prince on the inside Contributing to the learning, growth of others Fire Me, in whatever form that evolves into.
IBRI UPDATE Kevin Warren Vice President, Operations Independent Broker Resources Inc.
Ready to Target Your Specialty Markets?
marketplace requires a consistent and diligent watch on the “players” and their product lines. The Marketing Assist service does all of this for you, incorporating in real time any change to any product in any market. Being a player online is one way for brokers to meet IBAO’s key message in 2014, “Get Ready For Tomorrow, Today.” My Insurance Shopper is constantly evolving to meet broker and online consumer needs — Contact Up Front was introduced in December to ensure all abandoned quotes are still available
to your brokerage, thereby enhancing the ability to build leads and expand market share; Marketing Assist will go live for brokers and consumers on February 15; and IBAO Education webinars are coming to provide training, assistance and helpful hints to maximize the experience of current and future customers through My Insurance Shopper profile online. Are you ready? IBAO members are eligible for free enhancements to their profile on MyInsuranceShopper.
Get ready to make the web bring business to your door. My Insurance Shopper has introduced Marketing Assist. Every year, Canadian Underwriter publishes a list of specialty insurers and MGAs that have the appetite to write specialty risks that make up 15% of broker new business every year. As lists change, so do markets — not only in Ontario, but in every province. Imagine an online tool accessible through My Insurance Shopper that allows member brokers to identify the specialty markets connected to their brokerage. Searchable by category, product listing or company, it is now possible — in real time — to showcase your brokerage appetite to write the specialty risk for which you are searching. Not only will company information be available, there will be a printable value proposition handout to help with marketing efforts. This will include key phone numbers and e-mail addresses to connect your brokerage directly to consumers who need your help. Consumers can access Marketing Assist via the My Insurance Shopper homepage, and then have the option to search by category and product list. Just like auto and home quotes, the customer will be asked to provide his or her postal code to be routed to a local broker with the expertise to help place that specialty risk. All configurations to support engagement with Marketing Assist can be done through www.mislogin.ca. By self-managing your markets, the site reflects a brokerage’s current offerings. The evolving and ever-changing January 2014 / THE ONTARIO BROKER
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COMMUNITY PLANNING Bob Boyd CEO Agility Recovery
Protect Your Promise It’s 10:30 am on a Saturday. A previously underestimated snowstorm is gaining strength and is expected to dump more than three feet of snow in 12 hours. That evening, you are told by your grounds supervisor that the heavy snow has caused your building’s roof to collapse. Half of your employees have lost power to their homes; reports from local utilities estimate it will take as long as five to seven days to restore power. Claims and angry calls begin to flood in.
When disaster strikes — insurance brokers face a unique set of challenges. Most will be taking 50 times more calls daily than normal, and often will be facing many of the same challenges and interruptions that are crippling their clients — power outages, inability to occupy their office space, etc.
Make or break pieces So what are insurance brokers to do? While there are many parts to a wellconceived disaster recovery plan, two small steps prevail as “make or break” pieces: communication and testing. Having a 10-pound, 3-ring binder filled with emergency procedures is great. But unless you and your employees know how to implement the plan and know what hiccups to expect, both your plan and your promise to clients are at serious risk of failure. When talking with new broker members, we discuss (and then discuss again) the importance of these two steps.
First, we tell members to ensure their staff understands the company’s disaster recovery plan and, more important, what is expected of them as employees. If possible, include staff members in the planning process. Communication is vital to an organization’s ability to survive disaster — as well as its ability to offer immediate assistance so that clients can do the same. It is often said that communication is vital during a disaster. While this is a crucial part during any recovery plan, never underestimate the importance of proper and effective communication beforehand either. In our experience, nothing will bring down a plan more quickly than skipping this step. Second, practice! When disaster strikes, there is little time to respond and make changes on the fly. “Testing” is the best way to identify vulnerabilities and allow an organization time to update and improve the plan.
Prepare for the worst
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14 January 2014 / THE ONTARIO BROKER
When talking with our members, we recommend testing once a year and practising with “worst-case scenarios” since they offer a better opportunity to expose gaps in the plan. (that is, pray for the best, prepare for the worst.) During Agility’s 2013 annual test, a fictional quake cut off power and communication to the company’s entire east coast operations for several days. The exercise challenged our employees to consider: Who assumes what roles? Who is the back-up to the back-up? The week concluded with teams focusing on how to improve processes and work laterally with other departments to better serve members during times of disaster. In our 25 years, Agility has responded to thousands of disasters and has never failed. Much of this 100% success rate can be attributed to the company’s emphasis and commitment to preparing for tomorrow, today. In the end, insurance brokers have a promise to your clients. Do not let skipping little — and easy — steps beforehand jeopardize everything and everyone that has helped get your organization where it is today. You will be glad you did tomorrow.
COMMUNITY VIEW Director of Education IBAO
ICY WARM
The Insurance Brokers Association of Ontario is pleased to welcome Lola Thake in the role of Director of Education. Lola will be responsible for championing the identification of relevant and engaging educational opportunities for Ontario’s independent brokers at all life stages. Lola has been in the insurance industry (on the company side) since her university days, when she got involved as a summer student. With more than 20 years of insurance and education experience, she has focused on broker education since 1998. She started with Zurich Canada, training nationally, and then transitioned over to ING, where her focus was on Ontario brokers. Lola has designed, developed and facilitated hundreds of broker education programs, ranging from customer service to change management, leadership development, new company product launches, focus groups, National Broker Advisory Committees and customized education programs. She has worked with customer service reps, commercial producers, broker management and owners. Lola has been happily married for eight years and has two daughters (ages 6 and 4) who keep her busy, young at heart and up to date on the life and times of Justin Bieber and One Direction.
Power knocked out by the late-December ice storm was restored Christmas Eve, just in time to lighten the mood and allow staff at Paul C. Armstrong Insurance Brokers Inc. in Georgetown, Ontario to snap this pic. Staff at the brokerage collected non-perishable food items for Georgetown Food Bank. Though Halton Hills was hard hit by the ice storm, the office remained on call throughout the event. Left to right: Mandy Armstrong Rogers, Cathy Flaxbard, Jody Armstrong Jackson, Paul Armstrong, representing the Georgetown Food Bank, Don Burt, Samantha Armstrong Rogers and Lindsay Brown.
HOLIDAY GIVING
REGISTER TODAY! www.insurance-canada.ca/2014 FOCUS ON:
• Technology helping you market? • Customers Serving themselves • Manage Business Intelligence • BMS Vendor Shoot-out
A niche job board providing a solid career pipeline for today’s top industry talent.
March 17-18, 2014
SHERATON CENTRE TORONTO RIBO CREDITS REQUESTED SPECIAL RATES - SEE IBAO BULLETIN
Insurance-Canada.ca
12th Annual P&C Insurance T E C H N O L O G Y
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Left to right: Jennifer Hillier, past secretary of St. Thomas Elgin Insurance Brokers Association (STEIBA); STEIBA Vice President Jason Amero; Andreana Collins of Christmas Care; and STEIBA President Crystal Underhill.
www.myinsurancejobs.ca
Giving at Christmas time just seems right. The St. Thomas Elgin Insurance Brokers Association (STEIBA) continued to do so in 2013. Local insurance brokers donated $500 to St. Thomas Christmas Care and $500 to MADD St. Thomas. “We are thrilled to help such great causes and to donate to such deserving services,” STEIBA president Crystal Underhill says in a statement. “The holiday season is the perfect time for giving, and we hope our donation will impact those who need it,” Underhill adds.
C O N F E R E N C E
14-01-14 7:17 PM
January 2014 / THE ONTARIO BROKER
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IBAO School of Insurance EDUCATION FOR BROKERS BY BROKERS
WHAT’S HAPPENING IN FEBRUARY WEBINARS Insurance Solutions for Condos & Life Lease Units Date I February 4 Time I 9:30 – 11:45 a.m. Accreditation I 2 Technical Hours Fee I $125 (group rates available)
Addresses the range of condos – from high-end to low-rise apartment buildings – including townhouses, duplexes, triplexes, single-detached homes and freehold, and the variety of amenities that come with them.
Personal Umbrella Liability Date I February 6 Time I 9:30 – 11:45 a.m. Accreditation I 2 Technical Hours Fee I $125 (group rates available)
Many clients own recreational properties and vehicles, travel regularly outside Canada and serve as volunteers, officers or directors with non-profit organizations. At the same time, the frequency and size of third-party liability awards has increased dramatically over the past 10 years. Learn how a Personal Umbrella policy enhances thirdparty liability protection in a comprehensive and cost effective way.
Insurance Needs of Home-Based Business Owners Date I February 19 Time I 9:30 – 11:45 a.m. Accreditation I 2 Technical Hours Fee I $125 (group rates available)
While some home-based businesses need only minor amendments to the personal lines residential policy, others require full-scale commerical lines policies. Discover the growing home-based business trend and learn the insurance implications that come with it.
CAIB CAIB 1 Immersion Date I February 3 – 7 Time I 9:00 a.m. – 4:00 p.m. Location I IBAO Toronto Examination I February 12 Fee I $899 Members I $1,169 Non-Members
An instructor led, 5-day intensive course with hands-on exercises, practice exams and group discussions. The concise format helps students prepare to write the final exam scheduled the following week in their local affiliate area.
RIBO EXAM PREP I RIBO Level 1 Licensing Date I February 26 – 27 Time I 8:30 a.m. – 4:00 p.m. Location I IBAO Toronto Fee I $299 (materials not included) I $25 Admin Fee for Non-Members
Additional tutoring for individuals experiencing difficulty passing the RIBO Level 1 Licensing examination. Students require a recent version of the Fundamentals of Insurance textbook, and must book their own exam with RIBO.