THE RTA ALBERT
REBUILDING FORT McMURRAY
Getting Clients Through the Afterburn Lessons Learned So Far Top 8 Benefits of Investing in PD Photo by Scott Hamilton, supplied by Claimspro
December 2016January 2017
Cdn Publication Mail Registration 40018149
Annette Hubick
Message from the Editor In Alberta, the biggest story of 2016 was without a doubt the Fort McMurray wildfires. Whether it was in the news, social media, coffee shops, offices or homes, it was all people talked about. Who can forget the images of vehicles driving down the highway flanked by flames with embers falling on the windshield, of people loading up supplies to drive up to those stranded on the roads and in evacuation centres, of the devastation the fire left in its wake and of the first responders hanging a banner to welcome the evacuees home? For the insurance industry and its partners, it was more than a news story—it was, and is, a test like no other of how it will deliver on its very core promise: to help victims recover from the financial impact of this disaster. At times, the enormity of the task of writing about the largest insured
disaster in Canadian history seemed to parallel the size of the fire. With it being just over six months since the fire first started, I decided to focus on the status of the recovery as well as incorporating the personal perspectives from the industry spectrum: broker, insurer, and restoration company. You’ll find the story on page 12. I’m certainly not the only one with something to say about the 2016 wildfires (and, although fire related, the insights apply to many other situations.) • IBAA president Julia Marshall shares her impressions after personally visiting Fort McMurray (page 4). • Bill Adams looks at the lessons learned so far in “IBC Insight” (page 20). • Lori Wells’ “PYIB Perspective” offers advice on being pet prepared for a disaster (page 24).
The Alberta Broker is the official publication of the
3010 Calgary Trail, Edmonton, AB T6J 6V4 T: 780.424.3320 •1.800.318.0197 F: 780.424.7418 • www.ibaa.ca President Julia Marshall Chief Executive Officer George Hodgson
3 Deacon Lane, Sherwood Park, Alberta T8H 1M7 T: 780.945.1934 E: albertabroker@linkpr.ca Publisher and Editor Annette Hubick Printing McCallum Printing Group Design and Layout Ron Leckelt Advertising Michele Schuldhaus 780.910.2601 michele@linkpr.ca The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members.
Speaking of gifts, I wish you all an abundance of what brings you happiness this holiday season and a fantastic 2017! Correction: In the “WICC Report” that ran in the October/November issue, the name of Anna Vaillancourt of Silvercrest Insurance was misspelled. We apologize for the error.
IN THIS ISSUE
December 2016 – January 2017
Published six times annually by:
• IBAA’s director of member services and communications Janis Losie advises brokers on how to guide clients through the recovery process (page 26). If the wildfires taught me anything, it was to be grateful. Not only for what is truly important—the health and safety of our loved ones—but for the many examples of the kindness, heroism, selflessness and generosity that were displayed during and after the fires. In this day and age of cynicism, fear and negative media, having a restored faith in humanity was a great gift.
3 4 6 10 11 12 18 20
Message from the Editor Message from the President Legal-Ease Honesty Is the Best Policy
Chinook Country Report IBAA Courses
Rebuilding Fort McMurray The Advocate Advocacy: A Gift for Your Customers
IBC Insight
22
From the Superintendent
23 24
Did You Know?
26
Getting Clients Through the Afterburn
28 30
Northern Exposure
Update
PYIB Perspective Be “Pet Prepared” in an Emergency
Professional Development Top 8 Benefits of Investing in Professional Development
Lessons Learned So Far in the Fort Mac Recovery
Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Association of Alberta’s magazine - The Alberta Broker (date).” Please send a copy to the publisher.
The Alberta Broker December 2016 – January 2017
3
Julia Marshall
Message from the President
Much has transpired in Fort McMurray and the association since my last column. Janis Losie, IBAA director of member relations, Trevor Brick, Economical VP claims Western Canada, and I travelled to Fort McMurray in early fall to assess the situation for residents, brokers and the insurance industry. Rob dePruis, the insurance industry claims liaison with IBC, graciously gave us an informative tour, showing us the current state of the city. Rob made the time to take us to all the affected areas and areas of interest, which included Chateau Nova, right across from the airport, Prairie Creek, Beacon Hill, Waterways, Abasand, Wood Buffalo and Stone Creek. We saw communities that had been completely wiped out, as well as homes that were demolished as firebreak houses. We also viewed the area where 65 temporary accommodations will be set up by the government in Parsons Creek to provide relief. At first, I was taken aback that the areas were still so unsettled, but Rob, Trevor and Janis all concurred that significant progress had been made compared to months, weeks and even days ago. Each step in the process takes a significant amount of time and, seeing it with my own eyes, I can understand why. As we drove through the areas, I was at first confused as to why some of the lots appeared to be under reconstruction, while others sat untouched. Some lots were already rebuilt to foundations and framing while, at the opposite extreme, other lots were still full of debris. The lack of action could stem from different reasons, for example, a communication issue between the insured and the
A scene of the wildfire’s destruction.
insurer, the absence of insurance or just a delay with rebuilding or demolition permits. The medical examiner had the timeconsuming task of going into each standing home in the affected areas to access it and put a colour-coded placard on the door stating the risk. If it was a total loss, entry may result in death or injury (blue placard). If it was restricted use, occupying these premises without proper precautions may result in personal injuries (yellow placard). If it was unsafe, entry may result in death or injury (red placard). The industry’s process is far from perfect but, given any circumstance of this calibre, perfection is far from expected. Using knowledge garnered from the Slave Lake Fires in 2011, the various industry parties have implemented improvements, such as using TAC spray for the ash to eliminate the travelling particles. For public safety, they also hired a company to come in and sift through the debris, instead of relying on the homeowners. As we drove around these areas, we saw that the fire had turned at any given moment and redirected itself, something I would have expected to
4 The Alberta Broker December 2016 – January 2017
see from a tornado. The sheer volume of land and the multiple areas to which the fires travelled was a huge difference between the Fort McMurray and Slave Lake wildfires. Trying to manage the aftermath of such a large disaster is difficult enough and even more challenging when the affected areas are so spread out and remote. Another challenge that the different people I spoke to consistently mentioned was the bigger role social media played in the Fort McMurray wildfire than in Slave Lake’s. While social media helped to disseminate information when communications were down, they also required heavy monitoring to answer consumer questions and respond to any false information. One of the highlights of this trip was having the opportunity to speak to other brokers, which Janis and I prioritized in our tight schedule. We met with brokers from two broker offices who, as usual, greeted us graciously. The image they described of the initial day at work after being allowed back in made my stomach sink. Lined up about
Visiting Fort Mac’s TW Insurance Brokers. L-R: Regina Short, Me, Paula Edwards and Janis Losie.
We stopped in at Rogers Insurance in Fort Mac too. L-R: Nichole Deitz, Me, Janis Losie and Bryce Humka.
90 people deep, residents were waiting to speak to a broker. To add to this tragedy, some brokers who had lost their own homes completely and others who were displaced were among the brokers taking the claims. Reasons for frustration varied from claims handling to the inability to write business or the inability to rewrite business where renewals were being denied. Some people want their coverage
rewritten with different insurers for several reasons but, of course, price then becomes an issue. Under all of these difficulties, peace of mind stemmed from the conversations and a strong consistent sense of togetherness in their community. A broker we spoke to, who had little damage to her property but whose son’s house was totally gone, exemplified this sentiment. “We will be okay. We are resilient,” she said.
That strength and unity still sticks with me. I remember thinking as we left to go home that the people we spoke to seemed determined to make their town back into what it used to be. On another note, I have just returned from the Insurance Brokers Association of Canada’s annual general meeting in Prince Edward Island. It was a week full of firsts for me and an introduction to what the next few years will hold in my role with the national association. I then had the opportunity to attend the Atlantic conference in Halifax. The ability to meet new people and experience our sister associations’ conferences is always great. I have to say that the folks in Prince Edward Island are probably the friendliest fellow Canadians I have encountered. We intend to continue monitoring the situation in Fort McMurray and be available to help in whatever manner is appropriate for our broker members and other stakeholders. I wish you all a very Merry Christmas and a Happy New Year.
The Alberta Broker December 2016 – January 2017
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Legal-Ease
Shelley L. Miller and Sara Hart
Undisclosed Tenants Void Homeowner’s Policy
Insurance contracts require both parties to exercise utmost good faith during negotiations and in relation to the performance of the contract. Just as brokers and insurers owe a duty of care to their customers and are required to explain risk and insurance options to insureds, insureds must be honest and forthright as to what they are insuring. If circumstances materially change during the term of the policy, the insurer must be notified so it can assess if it will continue to provide coverage under the existing policy, if it will require new coverage to be placed or if it will charge a higher premium. A person who buys a residential
homeowner’s policy and advises the insurer there are no tenants will be found to have misled the insurer if it is later discovered that the home is rented. Such a material change in the risk will void an insurance policy ab initio, leaving an insured without insurance coverage. In the case of Jianlong Zheng v. John Galon Insurance Services Ltd. Operating as Galon Insurance Brokers and Saskatchewan Government Insurance Operating as SGI Canada (“Zheng v. Galon”), 2016 SKPC 90 (Sask. Prov. Crt.), the Plaintiff, Jianlong Zheng (“Zheng”) owned a home in Regina, Saskatchewan. He purchased a homeowner’s policy with Saskatchewan
6 The Alberta Broker December 2016 – January 2017
General Insurance (“SGI”) through a broker, John Galon Insurance Services Ltd. (“Galon”). In the “Habitational Insurance Application” form (“application”) with SGI, Zheng was asked the following questions, all of which he answered in the negative: (a) Are you seeking coverage for rental income? (b) What is the number of weeks the location is rented to others? (c) What is the number of rooms that were being rented to others? (d) Will there be a business operated out of your home? (e) Will your property be tenant occupied versus owner occupied? The application and the “consent and disclosure” form signed by Zheng with Galon/SGI contained typical contractual clauses requiring full disclosure. The homeowner’s policy obtained by Zheng with SGI also contained the standard statutory conditions, including those relating to misrepresentation and material change. In October 2013, a fire damaged Zheng’s house. He presented a claim through Galon to SGI for the damages. An investigation by SGI revealed that Zheng had three paying tenants residing in his home at the time of the fire. Although Zheng did not have any tenants at the time of purchasing his initial insurance policy from SGI, he subsequently had as many as four tenants at the property. Zheng had tenants living in his home at the time of his policy renewal but failed to advise SGI or Galon. SGI denied coverage for the fire loss on the basis that the presence of the tenants constituted a material change to the risk. As a result of the coverage denial, Zheng sued SGI and Galon. He alleged that Galon was negligent for failing to advise him that renting out his home to tenants could invalidate his insurance policy. Zheng also alleged that because SGI failed to draw this to his attention, as such, he was not aware that having
continued on page 8
continued from page 6 tenants would constitute a material change in the risk. He further alleged that because the fire was not caused by one of his tenants, SGI was in breach of the contract for failing to indemnify him for the losses caused by the fire. Galon denied that its broker had breached his duty of care. Galon also argued that Zheng had knowledge that renting out his home to others might constitute a change that would invalidate his policy coverage. SGI agreed with Galon’s defence and also argued that even if Zheng did not know that his decision to have tenants reside with him was material to the risk, this subjective knowledge is not required. In law, an insurer can void coverage if there is a material change in the risk. SGI also argued that it did not matter that the tenants were not the cause the fire when assessing its coverage denial. Key Provisions of the Plaintiff ’s Homeowner’s Policy with SGI The statutory conditions of the Plaintiff ’s policy that were relevant to the court’s analysis are as follows: “Misrepresentation 1. If any person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance which is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract shall be void as to any property in relation to which the misrepresentation or omission is material. Material Change 2. Any change material to the risk and within the control and knowledge of the insured shall void the contract as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its local agent; and the insurer when so notified may return the unearned portion, if any, of the premium paid and cancel the contract, or may notify the Insured in writing that, if he desires the contract to continue in force, he must,
within fifteen days of the receipt of the notice pay to the Insurer an additional premium; and in default of such payment the contract shall no longer be in force and the insurer shall return the unearned portion, if any, of the premium paid.” The Court heard argument on three key issues: 1. Did Galon breach its duty of care owed to Zheng because: a. It failed to review the application form and the consent and disclosure form with him prior to execution; b. It failed to advise him of the existence of any insurance that might be available if he had paying tenants; c. It failed to provide him with a copy of the SGI policy; and d. It failed to advise him that a decision to have tenants residing in his home would represent a material change in the risk and could void his policy of insurance. 2. Did SGI breach its contract with Zheng because he did not have personal knowledge of the fact that having tenants would constitute a misrepresentation of the use of the property or a material change in the risk? 3. Did SGI breach its contract with Zheng when it voided the policy because the fire was not started by any of the tenants? After hearing evidence from Zheng, representatives for Galon and SGI, as well as an expert in relation to the standard of care of an insurance broker, the Court decided as follows: 1. Galon did not breach its duty of care to Zheng on the basis of the following findings: a. The broker reviewed the application and consent and disclosure form with Zheng before it was signed; b. The broker did not have to notify Zheng of the existence of any form of insurance available to him if he
were having tenants live at his property, when Zheng had not asked the broker about tenants insurance and, in fact, indicated he would not be having any tenants residing at the property; c. The broker provided Zheng with the SGI policy; and d. The broker’s failure to discuss the meaning and importance of a material change, without questions raised by the insured, is not negligent.
2. SGI did not breach its contract with Zheng, as he knew or should have known that taking in paying tenants was a material change to the risk.
3. It does not matter whether one of the tenants started the fire when assessing whether to terminate the policy due to a material change in risk. 4. SGI would have raised its premiums and required an inspection had it known that Zheng had tenants residing at the property.
The Zheng v. Galon case provides a very helpful refresher of the obligations of insureds, brokers and insurers when underwriting and applying for an insurance policy and when assessing the applicability of that policy to a loss. Insurance application forms and the resultant insurance policies should be reviewed and read carefully by brokers and insureds alike. Where an application form specifically asks questions about whether tenants will be living at the property, which is denied by an insured and the insurer underwrites the policy on the basis of this understanding, if an insured subsequently rents out his property without informing the broker and/or insurer, the insurance coverage in the event of a loss will be voided due to the misrepresentation that is material to the risk insured. As is evident from the foregoing, honesty is truly the best policy!
SHELLEY L. MILLER, Q.C. and SARA HART are lawyers with Dentons Canada LLP and practice in the professional liability insurance area. sara.hart@dentons.com shelley.miller@dentons.com
8 The Alberta Broker December 2016 – January 2017
The Alberta Broker August – September 2016
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Who? What? Where? Darrell Verbonac
BROKER NEWS Staff Changes Blue Circle Insurance added a number of staff to its ever-growing office including Jody Lohr (current president of Professional Young Insurance Brokers) who was with Rogers Insurance, Robyn Booth from Cooperators/Truman Insurance Agency, Beth Fortin from Morgex Insurance, Marcelle Bisson from Western Financial Group (WFG), Magda Clark from Alpine Insurance and Summer Driscoll. New staff at Builders Insurance are Isabella Restrepo and Jessie Drew. New at Beneficial Insurance are Kent Miles, who was with BrokerLink, and Amanda Jenner. Taylor Sande joined Westland Insurance in its Deerfoot Meadows location, and new at Lloyd Sadd Insurance is Mackenzie Brandon. Staffing moves around Calgary include: • Phong Le from Lundgren & Young to Costen & Associates • Teresa Smith from Northgate Insurance to All City Insurance • Donna West from Haggett & Rogers Insurance to Lucas & Wright • Kassandra Schafer from Action Insurance to Western General’s south office • Chris Tucker from Alpine Insurance to Rizk Insurance • Danna Petkau from Haggett & Rogers to Godfrey Morrow Insurance • Donnie Leung from Rogers to Link Insurance, working out of its Country Hills Blvd. NW office • Catherine Rogers from WFG’s head office in High River to Rogers Insurance.
New faces joining brokerages outside of Calgary are: • Jaylene Capnerhurst at Knievel Insurance in Trochu • Chris Sayer at Ing & McKee in Red Deer • Adam Taylor at BrokerLink in Cochrane, previously with Parklane Insurance in Airdrie. Congratulations Frank McLash, of Godfrey Morrow Insurance, celebrated a milestone of 70 years in the insurance industry on September 10th! Frank is still going strong and is in the office three days a week. Congratulations to two brokers with Westland Insurance’s commercial office on their recent weddings. Kayley Chartrand-Evans celebrated her nuptials on September 24th. A month later, Westland’s Ashley Batke married Intact Insurance’s Brent Buchan in Banff on October 22nd. Brokerage Changes In the central part of the province, Red Deer’s Ing & McKee Insurance bought Vermilion Insurance Services, while down south in Raymond, Ridgeview Insurance, owned by Mark Zemp, was acquired by Lance Miller’s Surex/Cross Country Insurance of Raymond and Magrath. Two related offices, Rockyford Agencies located in Rockyview and Harvest Insurance located in Strathmore changed their name to Hillcrest Insurance Ltd. Down in High River, C. Bradley Insurance moved locations and is now situated at 110B 3rd Avenue SW, and
10 The Alberta Broker December 2016 – January 2017
in Calgary Link Insurance opened a new office in the Inglewood area. Condolences Sadly, there are a few passings to report. Vern Epp, formerly the owner (along with his wife Holly) of Calgary’s Holly Gordon Insurance that became part of the Westland Group, passed away of cancer October 19 at the age of 60. Two former brokers in Edmonton, Ed Cannon and Mark McDonald, who were the C and M in CMB Insurance both passed away this fall. COMPANY NEWS Peace Hills Insurance’s president and CEO Gene Paulsen retired and formerly retired Diane Brickner stepped back into these roles on a temporary basis while a permanent successor is sought. At SGI Canada, Morgan Boyle returned to Edmonton from the Regina head office as the new regional vice president, replacing Glenn Forbes who retired. At Intact Insurance, Renee McQueen moved into the role of manager of the AcceL department, looking after the small commercial-lines team, and Ryan Kloster joined the commercial auto department from RSA.
DARRELL VERBONAC, FCIP, CRM Director of Business Development Intact Insurance Company darrell.verbonac@intact.net
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The Alberta Broker August – September 2016
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REBUILDING At over $5 billion, the Fort McMurray wildfire has claimed the unfortunate title of Canada’s costliest natural disaster. It devoured over 580,000 hectares of land, forced an entire city of 80,000 residents to evacuate for weeks (some for months) and destroyed 2400 structures, including 1600 homes. Photo by Scott Hamilton, supplied by Claimspro
FORT MAC By Annette Hubick
With such mind-boggling numbers, it can be easy for the public to forget the people those numbers represent. “This was a human event, with many human faces and many human stories,” says Jodi Getson, FirstOnSite Restoration’s senior vice president, Atlantic. The restoration company was on the ground in Fort McMurray from the outset of the wildfires until the end of the restoration process. “There are many stories that stand out. One family had to evacuate with a newborn infant not yet 24 hours old. Another father told us about packing his children into the family car while his hair singed and he felt his skin starting to blister from the heat. As a company we respond to disasters regularly—it is what we do. But this event was a true reminder of why we do what we do. It reminded us all that, at the end of the day, we are people helping people when they need it most.” Bryce Kumka, a senior account executive with Rogers Insurance in Fort McMurray, was driving home from Edmonton with his family on May 3, when news of the evacuation order came and they were forced to turn back. They drove to Calgary, and Kumka went to work the next day in a Rogers Calgary office—it would be four months before his wife and children returned home. On May 16, Kumka returned to Fort Mac, joining a client who was assessing the state of his 600 hotel rooms. Per the municipality, this was a priority so that lodging could be provided to first responders. The scene was shocking. “We couldn’t see the sun,” Kumka recalls. “The air quality index was 56 on a scale of 10.” By 4:00 p.m., the group was told to evacuate as the fire had turned back towards the city. It was a long day with a total of 20 hours to driving back to Calgary. He returned twice again before staying for good in June, and has been going pretty much nonstop since, exemplifying the “get , er done” attitude that proliferates this community.
In the early days, social media provided unprecedented disaster communication challenges. “There was a lot of misinformation and people were relying on it as gospel,” says Kumka. He cites an example where a direct writer call centre employee told a caller that no expenses would be covered until a claim was started. This person shared this info on a popular Fort McMurray Facebook group page (with over 30,000 members), “and our phone system almost died due to the influx of calls,” Kumka says. “Not only wasn’t it true, the fact was that we (Rogers) had already made the decision to report a claim for every single policy we had in Fort McMurray.” During the evacuation period, Intact Insurance reports it activated over 1000 claims employees, including close to 100 people from its brands on the ground at six locations in Fort McMurray and nearby areas. “The top three questions we received were about safety, when they could return to Fort McMurray and their homes, what their policy covered and how the claims process works,” says Rosa Nelson, vice president, sales and business development. “There was a lot of misinformation from various sources and with the evolving situation,
Lending a Hand
Nearly $300 million raised by Red Cross for the Fort McMurray wildfire recovery—$165 million from donations, $104 million from federal government and $30 million from the Government of Alberta in matching fund programs (source: theglobeandmail.com, Aug. 3/16). These funds are in addition to the countless donations of time, goods and money to evacuation centres and food banks, the myriad of ad hoc fundraisers and relief efforts and the hundreds of individual stories of food, lodging and other assistance Albertans provided directly to wildfire victims.
many customers were confused by some of the information they heard or read.” Nelson personally visited Fort McMurray and saw the destruction first hand. “Driving through the destroyed areas made me realize just how devastating and indiscriminate fire really is. It was heart wrenching to see so many individuals lose their homes and their communities. But it was comforting to know that we were there to help AND that the town was so resilient. There was such a community feel and a desire to rebuild and be strong. It was inspiring.”
continued on page 14
The Alberta Broker December 2016 – January 2017
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continued from page 13 There have and will be many lessons that come out of the Fort Mac wildfire experience, but for Kumka, the importance of having a business continuity plan, especially in terms of communicating with clients, was highlighted. “We have made a tremendous investment in technology and it served us well. The company’s contact system allowed us to stay in touch with clients electronically. With a disaster of this magnitude, there is just no way we could have called everyone.” “Although every catastrophe is unique (Slave Lake, for example, was different than Fort McMurray), we learn something every time,” says Intact’s Nelson. “In Fort McMurray, it was very important to work with IBC and the government every step of the way; by aligning with their direction, we believe we helped customers deal with uncertainty much better … Social media proved to be a popular way for customers to get information and that is reshaping our social media strategy. We will also look at cross training our teams to ensure that we can support one another during these times.” On November 10th, the Regional Municipality of Wood Buffalo (RMWB) ended the state of local emergency it had declared on May 1,
The unprecedented scale of the rebuilding efforts will push builders to their limits in Fort McMurray over the recovery and rebuilding period.” 2016. “When you look around our community, you can see the results of our residents’ strength and resilience,” said Mayor Melissa Blake. “Six months ago, destruction was all around us and now we see our community standing up again and working together as recovery and rebuilding continues to gain momentum.”
14 The Alberta Broker December 2016 – January 2017
It’s estimated that about 74,000 of the city’s 88,000 evacuated residents have returned. “We are getting past the emergency response stage—all destroyed properties have been cleaned up, burned out vehicles removed and we’re ready to rebuild,” says Kumka. A status update from Jim Mandeville, senior project manager–large loss North America for FirstOnSite Restoration confirms that the process is moving to the rebuilding state. “We have slowly been wrapping up our restoration projects in Fort McMurray over the past few weeks. A lot has been done over the past six months to restore the community back to normal, including restoration of commercial buildings and infrastructure, and residential restoration. Life is starting to return to normal in Fort McMurray, with many local industries showing evidence of rebounding from the fires, and residents returning to daily routines in many cases.” “The majority of businesses are reopened and three of the largest condo developments will be rebuilt this year—that’s a positive visual for residents,” Kumka reports. “The municipality has been doing all it can to expedite the restoration and rebuilding process. In the early days,
continued on page 16
WILDFIRE $$ IMPACT
According to a report by the Conference Board of Canada released November 15, 2016: The Fort McMurray wildfire covered 589,552 hectares, roughly the size of Prince Edward Island. The cost of wildfires to governments and insurers is estimated at more than $5 billion. The estimated cost of wildfire insurance claims is $3.6 billion—$2.4 billion in personal property and $1.2 billion in commercial and industrial payments. The fires reduced oil production by an estimated 47 million barrels in May and June, worth about $1.4 billion in lost revenues. The increased economic activity will generate close to 16,000 person-years of employment between 2016 and 2019—employment would peak at almost 9,000 jobs next year.
continued from page 14 they issued 900 demo permits in three weeks.” As of November 9, 2016, 1,767 demolition permits and 291 rebuild permits have been issued, according to the RMWB’s website. Government and industry came together to establish a vetting process and registry for building contractors (all homes being built must have a new home warranty) caused a bit of a delay, “but it’s worth it to protect consumers,” says Kumka. Timing has also been an issue. Although hundreds of claims adjusters were deployed to Fort Mac in the early weeks, soon after residents began returning the summer vacation season
started, which caused delays in some cases. Now that the rebuilding phase is set to begin, so is winter, which traditionally slows the home building season due to increased costs. That said, Kumka reports that, “we’ve been able to convince a number of insurers that the grand unknown of building costs next spring is worth the extra cost to build now.” It’s no secret that when the wildfires hit, Fort McMurray was in the midst of “challenging” economic times due to falling oil prices. The ironic silver lining of the depressed economy was that many displaced residents were able to find lodging due to city’s 30% rental vacancy rate. The flip side was that
16 The Alberta Broker December 2016 – January 2017
because the home building market had dried up, many skilled tradespeople had left to find opportunity elsewhere. “In 2013, 1300 homes were built (including multi-family dwellings). This year was slated for 20,” illustrates Kumka. “The home building industry had pretty much shut down.” While this skills shortage has caused delays in the rebuilding process, it also spells opportunity for many Albertans who’ve been hit hard by the recession. “It’s kind of a rebuilding Alberta kind of project. It’s going to take the resources and skill set of many, many people and organizations to get this done.” In fact, in a recently released report by the Conference Board of
Canada, it’s projected that the increased economic activity will generate close to 16,000 person-years of employment between 2016 and 2019—employment would peak at almost 9,000 jobs next year. According to a statement on the Insurance Bureau of Canada’s website, “A rebuild period of 14 to 18 months is not uncommon after a large-scale disaster (the 2013 Calgary floods or the Slave Lake fire, for example). There are many factors involved. For example, the availability of labour, resources and supplies affects how quickly work can be done. And winter creates a limited window for construction … The unprecedented scale of the rebuilding efforts will push builders to their limits in Fort McMurray over the recovery and rebuilding period.” “One of the biggest challenges in the rebuilding process has been the inconsistency in the way insurance companies responded to claims as well as some of the treatment clients have experienced with claims adjusters,” says Kumka. “It’s shown me which
companies I want to place clients with in the future.” The fact that so many people share their experiences through social media has only compounded the confusion, demonstrating that more than ever, clients need the expert
advice and guidance of their insurance brokers. “It (the wildfire disaster) is a reminder that we are in the claims business and that clients need our help knowing their rights and responsibilities during the claims process.”
The Alberta Broker December 2016 – January 2017
17
The Advocate
George Hodgson
Advocacy: A Gift for Your Customers
X “Financial institutions ought not to retail insurance at the point of granting credit.” This quotation has been the rallying cry of the federal and provincial lobbying efforts of the Insurance Brokers Association of Canada, the Insurance Brokers Association of Alberta and its sister associations for as long as anyone can remember. While some might say the statement is rather banal, why has it become even more important today than ever? The reasons are twofold: the Canadian Bank Act was up for renewal in 2017 but has been extended for two years to 2019, and the credit unions in Alberta appear to have a proposal allowing them to retail insurance from their branches. The extension given to the Bank Act Review process indicates that the review will likely be more comprehensive than in the past. Before going into details regarding the Bank Act review and the credit unions, let’s imagine the following scenario wherein the financial institution is permitted to retail insurance at the point of granting credit: George, in his mid-twenties, is just out of post-secondary school, maybe relatively newly married and about to purchase his first home or first new car.
Other than a credit card, this is George’s first large credit purchase. His excitement bubbles over. Once he finds the right home or car, he sets off to a financial institution (probably a bank) to secure a mortgage or auto loan. His stress level is high. The only thing standing between him and his new home or auto is the lending institution. During the loan negotiations and credit assessment, George worries whether the application will be approved. Just before signing, the financial representative starts to ask a series of questions, such as, “Do you want a weekly or monthly payment schedule?” and “Do you want property taxes to be included in the mortgage?” One question that will certainly come up in this scenario is “Would you like to have your property or auto insurance included with us (the bank)?” George feels very pressured and vulnerable. He thinks he should just say “ Yes,” sign the papers and go celebrate, but how does he know whether he is getting the best insurance for his situation? The person across the desk is not an insurance broker and would not have shopped the available markets for his insurance needs. What are his needs,
18 The Alberta Broker December 2016 – January 2017
anyway? He doesn’t really know, since he has received little to no pertinent or relevant insurance advice. More importantly, he fears the response if he says, “No, I would like to purchase my insurance from my broker.” Could the loan or mortgage be refused? Will his new home or new car purchase be in jeopardy? George will likely purchase the bank’s insurance product in spite of his unease about its potential inferiority and misfit. He may run into some serious problems if he later makes a claim. Were financial institutions able to retail insurance directly from their branches, the above scenario in various forms would play out many times a day across Canada. The federal and provincial brokers’ advocacy efforts to maintain this prohibition are not about the broker channel’s unwillingness or fear of competition. They are not about wanting to keep financial institutions out of the P&C insurance business. They are about protecting the consumer from tied selling at a point where the consumer is at his or her most vulnerable moment. With what appears to be a comprehensive Bank Act review undertaken by the federal government, the federal advocacy effort must be ramped up more than ever. We need to establish and maintain our relationships with our elected officials and senators. These lines of communication are the most effective way to get our message to the government officials responsible for implementing changes to the Bank Act and its accompanying regulations. More important for IBAA and the Alberta consumer, however, is the more immediate change to the Alberta
Insurance Act that is being proposed to the Government of Alberta. Aside from the obvious problems for the consumer described above, this change, should it be enacted, will place the credit unions at an unfair advantage with the federally regulated financial institutions. It would also severely weaken the Insurance Brokers Association of Canada advocacy position vis-à-vis the federal Bank Act. What can you, as a broker, do? Grassroots advocacy is the main strength of IBAA’s and IBAC’s efforts. While meetings and other communications with ministers and bureaucratic officials are crucial, they are much less effective without the critically supportive meetings between brokers and their local representatives. Constituent brokers need to deliver the message to their local MLAs or MPs that “Financial institutions ought not to retail insurance at the point of granting credit” because such a relationship puts the consumers in the officials’ constituency, along with their family members, at a severe disadvantage. This message, well delivered at the local level, will resonate. The delivery of this message should not stop with the official government MPs or MLAs but must include opposition members for at least two reasons. First, one of the main tasks of the opposition, at both at the federal and provincial levels, is to hold the government to account. In order to do so, they need information and an issue. The possible government approval for financial institutions to retail insurance from their branches could be that issue. (Hopefully, our successful advocacy with the government members will mean that the opposition will not need to be called to task on this issue.) Second, advocacy with the opposition is also crucial for the long term. In the vast majority of cases when the government changes hands in a future election, the next government will come from the ranks of the current
Refusing to see your local official merely because he or she does not represent your political view is short sighted in the extreme. opposition. The relationship we establish and cultivate with MPs, MLAs and senators in today’s opposition may be crucial in our advocacy with tomorrow’s government. When IBAA calls out for members to meet their local representatives, be they provincial or federal, make the wise choice and respond in the affirmative. After all, you will be protecting insurance consumers in general and your consumers in particular. Whether or not you voted for your MLA or MP is irrelevant. Elected officials and senators, even those with whom we disagree, are generally like the rest of us—decent folk who merely want to make our society a better place. Refusing to see
your local official merely because he or she does not represent your political view is short sighted in the extreme. Get out there and talk to your MP, MLA or senator. You may find it actually more fun than you thought it would be! Merry Christmas and best of the holidays to one and all! See you in 2017!
GEORGE HODGSON CEO, IB AA ghodgson@ibaa.ca
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Email: AlbertaBroker@LinkPR.ca
The Alberta Broker December 2016 – January 2017
19
IBC Insight
Bill Adams
Lessons Learned So Far in the Fort Mac Recovery We are only six months into the recovery from the Fort McMurray wildfire—a mammoth undertaking that will take years to finish. However, the first half-year has been filled with valuable lessons on municipal emergency response at its best, the power of collaboration and the benefits of bringing insurance industry representatives into a disaster site as early as possible. The scope of the property damage in Fort McMurray was well documented in media reports and stunning images. In total, 2,400 homes and buildings were damaged or destroyed, as were thousands of vehicles and many businesses. This was not a typical wildfire. It was so hot that there was nothing but powder where homes used to stand and molten puddles where trucks were once parked. The latest estimate for insured damage stands at $3.77 billion, making it the most costly insured disaster in Canadian history. Insurers arrived at evacuation centres immediately to get cheques into the hands of those in need. And within a
few days of the event, three P&C insurance industry representatives were in the abandoned town with a seat at the provincial Regional Emergency Operations Centre (REOC). At that time, active firefighting was still top priority; REOC controlled the area with tight security at entry checkpoints. The air quality health index was above 10 (indicating very high risk), often reaching 30 and even as high as 50. Breathing masks were mandatory equipment. Embedding insurance industry representatives in the province’s emergency response so early helped smooth the way for the 88,000 evacuees, many of whom would soon be making insurance claims. Embedding also connected the industry closely to the community that insurers would help to rebuild. Including the P&C insurance industry — with IBC acting as the conduit between the government and insurers — in all aspects of the provincial emergency response is unprecedented and likely to become a best practice for future responses in Canada. The
20 The Alberta Broker December 2016 – January 2017
collaboration went well beyond government, emergency response officials and insurers. Brokers played a key role as a familiar and trusted industry presence to help families coping with devastating loss. The key benefits of early embedding included: • Earlier-than-usual access for adjusters to begin the claims process. • Efficient removal of white goods. Insurers coordinated the removal of 12,000 ruined fridges and freezers, working mainly with local firms, which contributed to the devastated local economy. • Access to accurate insurance information. Insurers staffed information centres to help evacuees as they returned to their destroyed neighbourhoods to begin to rebuild their lives. What quickly became evident was the need for brokers and insurers to work together to improve Canadians’ financial literacy. Industry representatives heard stories of folks who had cancelled their insurance policy after they had paid off their homes, not to save money but because they thought that was what they were supposed to do. After the white goods cleanup, the P&C insurance industry continued to coordinate its efforts to tackle demolition and debris removal. The strategy was modelled after lessons learned from the 2011 Slave Lake fire, which destroyed 400 homes. After that event, insurers initially treated the recovery as they always had, but soon saw the challenges of competing backhoes and bulldozers trying to access the same roads, properties and landfill sites. Needless to say, it didn’t work and the revelation led to a coordinated effort that was more efficient in both time and cost. Now fast forward to Fort McMurray, and consider demolition and debris removal of 2,400 properties instead of 400. Neither insurers nor the municipality have faced this size of
cleanup job before. Based on their Slave Lake experience, insurers recognized that they again needed a coordinated response. The municipality saw the value of coordination as well but was very sensitive to the need to hire local, considering the tough economic times that the community was already facing before the fire. Insurers understood that they needed to be a partner to government and the community in helping to rebuild and boost the local economy. This time the process has been more challenging than either the white goods removal or the Slave Lake cleanup. Early on, there was a delay in the process as insurers and the contractor sorted out the authorizations required from homeowners, which led to frustration by those waiting for their properties to be cleared. As I write this at the end of October, with winter looming, most sites have been cleared. Although there will be some rebuilding work done through the winter, construction on the vast majority of destroyed homes will begin in the spring. Of course there have been challenges along the way. There were debates around the rights and responsibilities of landlords, tenants and insurers in determining when tenants could return to their homes. Also, the question of whether homeowners need to rebuild on the same site has come up, and will undoubtedly be an ongoing issue during the rebuild. As the P&C insurance industry continues to fulfill its responsibilities to its policyholders in Fort McMurray, it’s important to recognize that we aren’t just rebuilding homes here, we’re rebuilding a community. That’s the lens through which the municipality and industry are looking when they make decisions. Local brokers will continue to play a critical role in bringing comfort to distraught families while managing
expectations during trying times. One of the elements of the recovery that was unexpected, for me, was the focus on mental health. Throughout the process, government and the industry have been careful to ensure that residents were able to return home before debris was removed to help with the grieving process. It will be equally important that we respect those displaced residents who are facing a long road to get back into their homes. Rebuilding of
Fort McMurray will be a marathon, not a sprint. And the P&C insurance industry will be there to support the community and its residents until the last home is completed. BILL ADAMS Vice President, Western & Pacific , Insurance Bureau of Canada
The Alberta Broker December 2016 – January 2017 21
From the Superintendent
Nilam Jetha
UPDATE
t n e d n e t n i r e p Su e h t f o e c fi f From the O
This year has been full of news and activity and I am pleased to have the opportunity to provide an article in this issue. Starting with some news from the Office of the Superintendent of Insurance, in October we welcomed Michael Twittey as our new Manager of Compliance. I am very excited for Mark Prefontaine who will be stepping into a permanent position on November 1st with the Alberta Investment Management Corporation (AIMCo). Now a more personal announcement, effective October 24, I was permanently appointed into my current role, as the Assistant Deputy Minister of Financial Sector Regulation and Policy, Treasury Board and Finance and Superintendent of Pensions, Insurance and Financial Institutions. I look forward to continuing to work with our stakeholders to ensure that Albertans have affordable access to the insurance coverage they require. Earlier this spring, many brokers and insurers were affected by the disaster
in Fort McMurray. Response from industry was immediate. In fact, most insurance companies were onsite at the evacuation centres within days of the evacuation, providing additional living expenses to their customers and starting to process claims. As the costliest insured natural disaster in Canadian history, estimated at $3.58 billion, the Fort McMurray wildfire created an unprecedented influx of claims. My office expects that the majority of these claims will be resolved smoothly but we also recognize that there will be some challenges. We have received some complaints from Albertans about how their claims are being handled. My staff always encourages claimants to undertake a complaint resolution process. The first step is to speak to their adjuster, and if that is not productive, they are advised to contact a claim supervisor or manager. In Alberta, licenced insurers must have a Complaint Liaison Officer (ombudsperson). Insureds may also
22 The Alberta Broker December 2016 – January 2017
contact the ombudsperson for an additional level of review. If a claimant’s issue is still not resolved the General Insurance OmbudService (GIO) is available to assist with home, auto, commercial and other types of general claim concerns. The GIO will review the complaint and provide an impartial non-binding assessment of the issue at no cost to the insured. If a claimant has a dispute about the amount of the loss there is a Dispute Resolution Process (DRP) outlined in the Insurance Act. For more information please see our website at www.finance.alberta.ca/ business/insurance/index.html
NILAM JETHA Superintendent of Insurance tbf.insurance@gov.ab.ca
Did You Know... There is now a flexible lithium-ion battery in development? This new innovation on batteries has the ability to hold its charge while being deformed. What could be next? A smart phone that is also flexible?
IBAA can provide professional development courses to your brokerage staff in your brokerage? We are happy to develop a course that meets your brokerage’s individual needs. Just let us know what your staff wants to learn about the most and then we can arrange with you to come and deliver fantastic content in your place of business.
The first autonomous commercial delivery was made in October? A self-driving semi-truck made a 200 km delivery in Colorado.The vehicle, owned by Otto (an Uber company), was able to deliver a truck load of beer without any human intervention.We often think of autonomous vehicles in the private passenger arena, but this delivery proves that this technology has applications for commercial uses as well.
Sources: IBAA, IBC, Statistics Canada, National Geographic and the Internet.
Credit unions are hoping to be able to retail insurance in Alberta? IBAA is committed to educating elected officials about the dangers of allowing insurance to be offered at the point of granting credit. We also encourage you, our members, to speak with your MLAs about this very important issue. IBAA has more information and the association’s position available on our website: ibaa.ca. PYIB is hosting the annual curling bonspiel in February of 2017? Show off your curling skills, or at least your networking skills, at this annual event. PYIB will be hosting this fun event at the Granite Curling Club in Edmonton, AB. Check out www.ibaa. ca for more event details and registration. Hurry hard!
The Alberta Broker December 2016 – January 2017 23
PYIB Perspective Lori Wells
Be “Pet Prepared” in an Emergency
The many Facebook posts about lost and found pets during the Fort McMurray wildfire made me think that many of us may be disaster prepared for ourselves but not for our pets. As a huge pet lover and mother to two miniature dachshund fur babies, it scares me to think how they would react in an evacuation situation. Our cats and dogs and other creepy crawlies are just as much family to us as our aunts, uncles, brothers and sisters. We want to make our animals as calm and comfortable as we can. No one knows when a disaster will hit, so those of us with pets should look at implementing the following steps for the love of our fur babies.
1.
Get a rescue-alert sticker. You can get these alerts online for free or purchase them at various locations. Place one on or near your
door in a visible spot that a rescue worker will see in the event of a disaster. Some stickers have a place to write the number of pets and species you have, as well as the pet’s name. If you are able, write EVACUATED on the rescue-alert sticker when you are evacuating your home and have retrieved all your animals.
2.
Prepare for retrieval of your pet(s) in case you can’t go home. If an emergency happens and you cannot make it home, someone needs to retrieve your animals for you. Plan in advance by discussing the retrieval with one or more friends, family members or neighbours (those who might be best able to access your home in an emergency situation) and giving those who agree a key to your home. The person closest to your home may have the most convenient access but,
24 The Alberta Broker December 2016 – January 2017
in an evacuation or other such disaster, that person may be in a similar situation and unable to travel.
3.
Arrange a safe place for your pets in an evacuation. Pets need to be evacuated for their safety, but clear thinking and time are both usually compromised. Plan before such an event happens. Find motels/hotels near your town and in the neighbouring towns—wherever your plan to evacuate may take you— that will allow animals. If you plan to stay with family or friends, ask them in advance if you can bring your pets to their home. If you have to stay in an emergency shelter, look into boarding kennels in the area that may be able to take your pet. You may find yourself in a panic trying to find another option to keep your pets safe.
comfortable if you are away from home for a long period of time. Pets can develop anxiety and other disorders, just like humans, so try to normalize their daily routine as soon as you can. If your pet is on medication, also have at least a week’s worth of it until you can get in touch with your veterinarian to refill the prescription.
Without such advance planning, you may find yourself in a panic trying to find another option to keep your pets safe. 4.
Have an emergency kit prepared for your animals. In an emergency, your pets may be even more frightened than you are. They do not understand why they are getting ripped out of their homes and away from all they know. Have a kit ready with your pet’s essentials for at least a week, such as food, bottles of water (in case you do not have access to fresh water), treats, toys, and leashes —whatever will make the pet
5.
Keep up-to-date shots and records on your pets. Keep your pet’s shots up to date. In the event of an emergency, your pets may be exposed to other animals with sicknesses such as kennel cough and feline panleucopenia that could make them very sick. Keep up-to-date documents on your pet’s health and shots in a safe place, such as the same place you keep your birth certificates and passports, so they are easily
accessible in an emergency. Store your veterinarian’s name and number in your cell phone for easy contact when you are away from home. Having up to date photos of your animals is essential as well, in case they get lost or are frightened and run away. These are just some of the essentials for your pet in a disaster. Each and every pet has different needs, just like each individual has. I hope you do not experience a disaster but, in the event one does occur, you need to get all your family out, including your fur babies. From me and my fur babies to you and yours, stay safe.
LORI WELLS, Director, PYIB lori@whitecourtinsurance.ca
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The Alberta Broker December 2016 – January 2017 25
Fort McMurray
Getting Clients Through the Afterburn
but something has to be done eventually, even with the vacant lots. Medical and government personnel are in a grim situation here—caught between a health and safety issue and the emotional turmoil of a public in limbo. Regardless of what happens with the homes, there is also the matter of contents. This is true for homeowners, condo owners and tenants. Victims have two choices: 1. Start planning for move-in now. 2. Wait until the home/condo/building is rebuilt and fight over whatever inventory is available in Fort McMurray stores at that time or spend weeks and months waiting for purchases to arrive. Imagine, under the circumstances, the number of homes that may be under construction at any given time. Does Fort McMurray have the capacity to outfit them all? Will clients be waiting months for items on back-order? Now that back-to-school is over and kids are occupied with studies, your clients can start mapping out what they will need once their home is rebuilt. Brokers can be a huge help to their insureds by helping them be proactive. In all cases, brokers should consult with their carriers before providing any of the following advice. It is essential to ensure your carriers are able to provide the proper coverage for goods purchased in advance and stored.
For a month, 88,000 evacuees lived with nothing, on the edge, waiting to see if they had anything to go home to. Spirits, however, were pretty good. People were happy to be alive and overwhelmed by the amount of support they received. Now they are back in Fort McMurray with almost nothing, on the edge again, waiting to see if they can ever go back to their houses. Spirits are dampening. Although alive, your clients are going to start feeling the sense of desperation that comes with the uncertainty surrounding their return to burned out shells. Frustration and anger will start
spilling into broker and adjuster offices the longer victims continue to wait in limbo. Anger will turn to outrage as insureds start to feel that they cannot get answers, have been misled or that insurers and government are deliberately dragging their feet. Brokers need some tools they can use to help keep clients focused while they are waiting. Insureds will need to be organized for moving in once homes are rebuilt and many will not know where to begin. 88,000 people were evacuated. If only 50% ended up with a claim, that’s 44,000 claims to handle. 2000 homes may or may not be rebuilt,
26 The Alberta Broker December 2016 – January 2017
1
Provide your clients with a home inventory checklist from one of your markets or from the IBC website. Even though a list might already have been made, this is a good way to help people remember items they may have initially forgotten. They can use the inventory as a shopping list.
2
Can they rent a storage container for items as they are purchased? Discuss how best to provide coverage under these special circumstances with your client and your insurers.
3
Help your clients develop a budget for purchases in keeping with their policy coverage and wordings. Discuss with carriers whether up-front funding is available and how much, how receipts are to be presented and when.
4
Explain the policy provision with respect to like kind and quality so clients can both manage their finances and adhere to the policy.
5
If clients do not wish to have their interior finished exactly as it was before the fire, they can purchase some decorator magazines and flag rooms they like for ideas on colour, flooring, furniture style, window coverings, etc. This will help them get started and hopefully provide something to look forward to.
6
Some people will want to rebuild their home as it stood. Regardless, they will still need to make decisions as to finishing in the same way as those who don’t. Counters, tiles, floors, paint—all will need to be chosen based on the budget.
7
Some clients may wish to pay a designer to help them, in which case, the designer’s cost may need to be accounted for in the budget.
10
Items (like upholstered and case goods) that need to be ordered in advance may need to be chosen now depending on how long it will take for delivery.
11
Appliances can typically be selected and ordered last. Keeping them in storage in cold weather may damage the mechanics and appliances are usually available on fairly quick order.
12
If the clients have children, they might want to involve the kids in decisions with respect to their own rooms. This may help them deal with the trauma of losing all their belongings.
13
Clients with collections will want to try to catalogue items according to what was lost, what can be replaced, what is irreplaceable or what they may not wish to replace.
14
Back to school shopping, Halloween and Christmas items will need to be factored into the replacement budget if they are substitutions for lost items.
15
The sheer magnitude of everything that needs to be replaced is usually unclear until a list is done, and often when the shopping starts. Insureds will realize when they start to purchase items that they have forgotten to account for everything. Serving dishes, lamps, garbage containers, soap dishes, mattress covers, bath mats and area rugs, among other things, are often missed until your client walks by them in a store.
16
This is also a great time to have your clients do a home inventory. As they replace items, they can be photographed and/or catalogued for future reference, including updated insurance information. These are merely suggestions for helping your clients focus on the future in a difficult situation. Some are invigorated by the thought of starting over. Those who aren’t still need some preoccupation while waiting to get their lives back in order. JANIS LOSIE Director, Member Relations, Marketing & Communications, IB AA jlosie@ibaa.ca
8
Ask your clients if there are any items they might not want to replace. For example, clothing, toys, items that would have been left unused or sent to charity. These items do not need to be replaced, or may need to be replaced with alternatives.
9
Seasonal goods and clothing might be available at reduced cost or might need to wait for replacement until next year—budget needs to be set aside for these, but they don’t need to be replaced now. Perhaps the client wishes a cash settlement instead of replacement. The Alberta Broker December 2016 – January 2017 27
Who? What? Where? Tracy Fata
Northern
BROKER NEWS A.P. Reid out of Nova Scotia purchased Robinson Insurance Brokers (RIB) as of November. Daniel Robinson, president and owner of RIB will be joining AP Reid as western regional manager. Bridge Financial Insurance purchased The Insurance Doctor from Doug Zimmerman effective this past August 31. COMPANY NEWS Glenn Forbes, Alberta regional manager of SGI retired on August 31. Morgan Boyle took over this position on October 1. IN MEMORIAM Ed Cannon, cofounder of CMB passed away on September 5. Our heartfelt sympathies go out to Ed’s family. Mark McDonald, also of CMB, passed away later in September, with a memorial held in October. Ray Callies, founder of Ravenhill Agencies Ltd, passed away this summer. A much loved father, grandfather and great-grandfather, Ray created a long-lasting legacy for his family. After a rewarding career as a chartered accountant, Ray started his insurance brokerage selling his first policies from his home office. Jim Harris, Ray’s son-in-law, joined the firm shortly after it was started, and together they began to grow the business into the agency it is today. Ray became the financial accountant managing the firm, while Jim built the client base. After selling the firm to Jim, Ray continued to come into the office almost every day to grab lunch and visit, but more importantly managed the accounting. Ravenhill recently purchased a new office building. Although Ray never saw the completed
28 The Alberta Broker
project, he would be more than impressed at how it has turned out and how much everyone is enjoying the new office—a living testament in memory of a great individual. ASSOCIATION NEWS The Insurance Institute of Northern Alberta recognized all the incoming CIP and FCIP graduates on November 24. Congratulations to all the new graduates.
December 2016 – January 2017
The AAIA held their Charity Ball on November 5th, raising funds for the Terra Centre of Edmonton.
TRACY FATA Regional Manager of Branch Operations, Portage Mutual Insurance Company tfata@portagemutual.com
Professional Development Rikki McBride
Top8 Benefits 1
Professional development ensures you are up to date on current practices, products and trends. Like other professionals whose clients depend on accurate advice and performance, we commit to being competent in our field when we become licensed. Would you consider a brain surgeon who knew only of the surgical practices from 1968 still competent? Would you want that surgeon working on your brain? Why would our clients expect any less of us in relation to our own expertise?
2
Professional development can help you keep pace with others in our field. Knowing the current products, technology and service expectations will help you to determine focus areas for your brokerage to remain competitive.
3
You keep your staff happy by investing in them. Lower staff turnover rates and increased morale are directly connected to keeping staff satisfied.
4
Educated staff tend to increase production. The more skills your staff learn, the more tools they have to sell to clients, increase customer satisfaction and get the job done efficiently. Increasing production and efficiency will positively impact your bottom line.
5
You meet the continuing education requirements for holding a General insurance licence in Alberta: 15 hours of continuing education per year. Don’t waste your time and dollars. Choose quality courses so you can reap the benefits of points 1–4.
6
Marketing your knowledge can increase client confidence in the quality of your commitment. You can brag to customers about the staff ’s continual learning that improves customer service. You can post online information for consumers. Marketing
of Investing in Professional Development
your commitment to learning builds your reputation.
7
Professional development courses deliver resources for practical use after the course. Whether the take away is an idea, a checklist or a procedure that you can look at implementing, the ability to access a template or starting idea means that you do not have to think of everything by yourself (from scratch).
8
Courses are often a great opportunity to build a network. In addition to your own in-house mentoring and collegial development, other brokers can act as a resource for staff who have questions or need additional information. Studies show that staff who have the opportunity to grow and learn have better morale and loyalty than those whose freedom is curtailed. A network of industry contacts can be extremely helpful when trying to find markets for hard-to-place risks, gathering information on a client or even finding out how to interpret insurance rules correctly.
Would you consider a brain surgeon who knew only of the surgical practices from 1968 still competent?
IBAA can help you meet your professional development needs. Our dedication to the above principles means we strive for quality courses and materials. Our new textbook, Insurance Licensing Preparation Level 2: Property, Liability, Farm, Auto, & Specialty Insurance, aims to make the content as interesting as it is informative. Lately, we have been seeing a trend towards distance learning and in-house courses. Both of these options allow your staff to remain in the office and get training while they are at work. Course offerings can range from soft skills training, such as sales and customer service, to technical insurance offerings,
30 The Alberta Broker December 2016 – January 2017
such as cyber liability and licensing classes. Get in touch with our professional development team at the IBAA office. The beauty of in-house training is that it can be customized to your brokerage’s needs and timetable. In the online space, IBAA is offering a number of classes via webinar with a live instructor to ask questions and digital components that help to drive the concepts home. Our Canadian Accredited Insurance Broker (CAIB) programs are now utilizing an online forum for students to engage with one another and the facilitator to discuss concepts and questions. Online courses can also be tailored to your brokerage’s needs. Thus members who are not located in a major urban centre can have the same professional development opportunities as those members who are located in larger centres without having to incur the additional costs of travel and accommodations. Another option for you to increase your professional development uptake is to attend insurance industry events. Events are held in every geographic area of the province through the IBAA local councils as well as the two major events, fall conference and spring convention, which are held every year. The professional development offered at each of these events often focuses on up-and-coming topics that will affect your industry. Participating in these events will not only get you CE credits but also develop additional knowledge and help to build relationships with others in the industry. Please get in touch with the IBAA professional development team to let us know what we can do for you. Being committed to quality professional development is as important to us as it is to you.
RIKKI McBRIDE Chief Operating Officer, IB AA rmcbride@ibaa.ca