Ab broker dec 2013 jan 2014 by Insurance Brokers Association of Alberta

Ready for Take Off New Players in Alberta Insurance Market Buck Consolidation Trend

Disaster Communication

December 2013 - January 2014

The Price Is Right?

Cdn Publication Mail Registration 40018149

weren’t worth the risk. Turns out, the reasons are the same as they’ve always been: desire (for independence, autonomy, the ability to achieve a vision, financial rewards) meeting opportunity —the essence of the entrepreneurial spirit. In “Ready for Takeoff,” freelance writer Laurie Jones talked to a few of the leaders of these new brokerages, which span the gamut from rural to urban and from “start from scratch” to expansion from other markets (page 6).

Annette Hubick

Message from the Editor Although stories about moisture of another kind (snow removal complaints, anyone?) dominate the news these days, the southern Alberta floods continue to be top of mind for most in the insurance industry—even more so for the clients who are still knee deep in the process of putting their homes and businesses back together. With that in mind, you’ll find a few flood-related articles in this issue of The Alberta Broker. • IBAA president Gord Enders talks about the important work of brokers advocating for consumers to insurers (page 4). He also touches on the next big thing in auto insurance: telematics. • IBC’s Bill Adams attempts to answer the question, “Now What?” (page 12).

• Industry consultant Karen Rutherford delves into the components of a brokerage disaster communications plan so that you can be ready for “the next one” (page 22). • IBAC president Ken Myers calls on industry and government to address the new flood reality (page 28). Ever since I started producing this magazine (wa-a-ay back in the 90s!), I’ve been hearing about industry consolidation and the shrinking insurance brokerage population. So I was intrigued by news of several new entrants to the marketplace and wondered, why? What made these men and women decide to start up a new venture despite supposed commonly held beliefs that the industry’s barriers and challenges for small start ups

IN THIS ISSUE

December 2013 - January 2014

The Alberta Broker is the official publication of the

No matter in what phase you are in your insurance career or business, I wish you much success and fulfilment in 2014. I hope you enjoy good times with family and friends this holiday season and that the presents under the tree are the least of your bounty. Merry Christmas!

3010 Calgary Trail, Edmonton, AB T6J 6V4 T: 780.424.3320 •1.800.318.0197 F: 780.424.7418 • www.ibaa.ca

President Gord Enders Chief Executive Officer George Hodgson Published six times annually by:

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10 9249-48 Street Edmonton, Alberta T6B 2R9 T: 780.448.0936 • F: 780.465.6201 E: albertabroker@linkpr.ca

Message from the Editor Message from the President Ready for Take Off Know E & O The Price Is Right?

IBC Insight After the Flood ... Now What?

Member Services

Get Your Bipper’s Worth with Our Newest Affinity Partners

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.

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Northern Exposure PYIB Perspective

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.

New players in Alberta Insurance Market Buck Consolidation Trend

Publisher and Editor Annette Hubick Printing McCallum Printing Group Design and Layout Ron Leckelt Advertising Michele Schuldhaus 780.448.2890 michele@linkpr.ca

Are You Prepared?

Legal-Ease

Viewpoint

Communicating During and After a Disaster

A Picture of an Orange Sign Is Worth a Tousand Words Heads Above Water

The Advocate

Commercial Break

32 34 36

Did You Know? Chinook Country Report Professional Development

37 38

IBAA PD Calendar 2013 Southern Alberta Floods

Spook-tacular Conference Offered Loads of Treats

Gifts and Wishes Credit Where Credit Is Due

It’s All About You and Your Experience

Broker Response: Hope for High River

The Alberta Broker December 2013 - January 2014

Gord Enders

Message from the President When I became IBAA president in May, I outlined three priorities I wanted to focus on during my term: technology, PYIB and encouraging principals to plan and work “on” their business. This was fine until June 20 when the flood gates literally opened. Since then it’s been a blur—working with member brokers, insurers and other associations to try to figure out just how to solve this puzzle of property insurance. IBAA believes that brokers and consumers are seeing a lot of the same signposts that we did leading up to auto reform in 2004: increasing rates, higher deductibles, and coverage limitations. We have a responsibility to advocate the need for restraint and multi-faceted solutions to our insurers that are trying to return property insurance portfolios to profitability. The danger is that the consumer may not be a willing partner if insurers try to recoup losses too quickly—and understandably so. Don’t get me wrong, I’m the first to acknowledge that our insurer partners have been very patient with property insurance and supporting an unprofitable business line. However, the comprehensive homeowner’s policy that most consumers enjoy today was built up over decades to address consumer needs but also, in large part, to gain market share. To strip away coverages, exponentially increase rates and increase deductibles to the point where they are no longer affordable isn’t responsible and it’s not fair. It may also result in government being forced to take action to further regulate our industry should consumers begin to complain to MLAs. It happened in 2004 and it can happen again. At the end of September’s property insurance forum, IBAA volunteered to compile discussion points from the meeting, circulate them to participants and organize next steps. We felt the next round of discussions should involve one-on-one meetings between IBAA and individual insurers, which did take place November 5, in Calgary. As you’d expect, we were able to have much more candid conversations than at the forum. These sessions yielded very productive dialogue in which insurers were able to share some of their strategies and plans for upcoming changes, the direction they felt the industry was going and where it should go. IBAA was also able to restate our messages of concern and the need for moderation. 4 The Alberta Broker December 2013 - January 2014

Next on the agenda will be meetings with some of the associations and government bodies, including the Superintendent of Insurance’s office. During these sessions, we’ll continue to advocate for consumers (as well as insurers) to work towards market stability—promoting the need for updated flood mapping, infrastructure improvements, building code updates and support for the industry to continue to operate with minimal government regulation. IBAA’s and your efforts are working. As individual brokers, you’ve been vocal with your insurers when you don’t agree with the approach they’re taking. These are issues that require many touch points. As an association, we put the message out globally to our insurer partners, and when that’s backed up by individual members contacting insurers, we can advocate successfully for our clients. We have seen recently where some companies’ proposed changes have been delayed and revised. So continue to keep up your efforts; they make a difference. As you can imagine, flooding as a potentially covered peril provides for some interesting discussions with insurers. Canada is the only G8 country that does not provide flood coverage for personal property. Moreover, reinsurers are extremely interested in Canada as a potential flood market. There are numerous flood models throughout the world, some of which have been very successful and profitable. So reinsurers have an interest in flood coverage, brokers and consumers have an interest in flood insurance but the primary insurers are nervous—justifiably so. There are a number of items that need to be addressed: updated flood maps, flood mitigation projects and the role of government. IBAA supports the premise that the insurance industry has the knowledge and expertise to provide creative solutions in providing a product that is workable and profitable, but there are no quick solutions. Some major questions need to be addressed such as whether flood coverage would be optional or mandatory—most reinsurers would tell you it needs to be mandatory in order to be profitable. Germany has introduced a successful model in which flooding and sewer backup have been redefined as simply water, and clients either purchase the entire package together or they don’t receive any coverage at all for water. Some of our insurer partners have told us they believe that only by placing limits on sewer backup can they consider potentially

introducing some type of flood coverage. At this point, similar to the German program, water is water, regardless of how it damages the home, but there are limits to how much is covered for this peril. As you can see, it’s a complex issue but the good thing is that IBAA is taking a lead on these discussions and insurers are willing to listen. As an industry, we haven’t talked much about auto insurance lately but get ready because we’ll all be talking about it again soon. Telematics is working its way into Canada at a very rapid rate. Telematics is the system in which insureds agree to have a “black box” placed in their vehicle that transmits driving habits back to their insurer who then uses the data to rate the policy on a monthly basis that will charge the “appropriate” premium back to the client. This type of rating platform is being used in numerous markets around the world and is just coming to Canada. Our sister association in Ontario has taken the lead on this to identify and offer a broker-based solution, in which the broker, through a third-party vendor, offers a black box that transmits data back to said vendor. The insurer then accesses the data it chooses from the vendor. The black box will collect a variety of data points and different insurers can choose the data they wish to use for rating. The key to this model is that it is

consumer controlled and broker managed, rather than insurer controlled, so the broker is not bypassed in the transfer of the data. Should the broker and client decide to move the policy to another company, the same black box is used for the next insurer and the data is “portable” and owned by the client, similar to a motor vehicle or autoplus report. The Insurance Brokers Association of Canada has looked at how telematics has influenced other insurance markets in other countries. It seems to be that telematics ends up being another tool used by underwriters to help determine rates, but does not become the one and only factor. IBAA will be reviewing the Ontario solution to determine if this is a potential match for the Alberta market in the coming weeks. Stay tuned for more info! This is an exciting time to be a broker. Now, more than ever, the broker channel has an enhanced value proposition as we prepare to help our clients navigate the changing world of insurance. IBAA is once again focused on advocacy issues with our insurer partners on property insurance and will continue on in this vein as telematics enters our auto insurance marketplace. We all have a role to play as consumer advocates. Continue to deliver the messages back to your insurer partners. As well as making a living, we’re making a difference.

The Alberta Broker December 2013 - January 2014

Ready for Take Off New Players in Alberta Insurance Market Buck Consolidation Trend By Laurie Jones

6 The Alberta Broker December 2013 - January 2014

In the ever-expanding arena of mergers and acquisitions occurring in industries around the globe, the entrepreneurial spirit is alive and well and forging new paths in Alberta’s insurance industry. For many people who decided to take on the challenge of stepping away from the known environment to running their own brokerage, it was often due to a matter of differing philosophies. As independent houses were incorporated into a larger entity, life changed and to some those changes were not what they envisioned for their career in insurance. No hard feelings, it was just time to move on to follow their passion. “When you have an industry that is consolidating, as we have been for approximately ten years, you will find the entrepreneurs who want to make their own way,” says George Hodgson, CEO, Insurance Brokers Association of Alberta (IBAA). “This is good for the industry as the small start-ups will grow over time. “These are the kind of companies that people often feel give more personalized service, particularly in smaller communities in Alberta where brokers can shine.”

Edmonton-based Insight Insurance and Risk Management opened its doors in the spring Alexis of 2013 with Alexis Harke Harke, CEO, at the helm. “I have nine colleagues and together we have over 170 years of experience in commercial, surety and personal lines,” says Harke. “We will be using ‘the power of Insight’ to provide our clients with outstanding service, insurance and risk management products.” Covering a broad range of industries including hospitality, construction, manufacturing, large property and

international risks, the Insight team will use its long-standing relationships with domestic markets and Lloyd’s underwriters to place local, Canadian business and international risks. “One of Insight’s specialties is in understanding our clients’ specific insurance and risk management requirements, then assembling and managing the necessary resources to provide complete and comprehensive insurance programs and superior client service,” says Harke. Previously Harke was a managing director and on the executive for a large international brokerage group for almost 24 years. With that knowledge and experience, she is eager to make her mark on the Alberta insurance market with her own brokerage.

Luck has been on Jay Sproule’s side since a networking function in 2003 where he was Jay introduced to an Sproule employee of Jones & Salt Insurance. Shortly after that meeting, Sproule met his new boss and future mentor, John Salt, principal. Finding he had an affinity for the industry, Sproule worked hard and, by 2008, Salt offered him an equity position in the company. With a book of business that exceeded 1,000 clients and $2 million in premiums, Sproule took the leap of faith, with the mentored assistance from Salt, and opened Sproule Insurance Inc. in May 2013. “My way of doing business is unique in that I work with clients purely on a referral basis. When a new client comes to the door, there’s already an understanding we are going to write a policy. This procedure worked well at Jones & Salt, and I am expanding on that system in my own business.” Technology plays a significant role at Sproule Insurance with the majority of transactions done on iPads, including

It is an exciting time and I look forward to building my business in Alberta. signatures. “Eliminating reams of paper makes the transaction seamless and the details are stored in secure locations,” he says. “It is an exciting time and I look forward to building my business in Alberta.”

Back row: Robert Major, Sheldon Ward; Middle row: Jackie St. Denis, Kimberley Gardner; Front row: Trevor Sodergren, Sheldon Bos

Broker Age General Insurance Inc. in Grande Prairie, Alberta, combines the talents of four experienced individuals to form a multi-dimensional financial and insurance brokerage. “Alberta has always been a very positive environment (in which) to do business,” says Sheldon Bos, partner— operations, acquisitions and business development. “We see unlimited opportunity, combined with the fact that Alberta has matured beyond the boom and bust mentality of 15 to 20 years ago. Albertans are focused on long-term economic growth versus the feast or famine of days gone by. That same opportunity exists outside of Alberta which is why we are working toward expansion into other provinces as well.” Other managing partners include Sheldon Ward, Trevor Sodergren and

continued on page 8

The Alberta Broker December 2013 - January 2014

continued from page 7

We see unlimited opportunity, combine with the fact that Alberta has matured beyond the boom and bust mentality of 15 to 20 years ago. Robert Major, with three people holding financial interest only. Bos adds a key to the new company’s success is that they all come from a different sector and have their own network of contacts which gives them a huge base of clients to draw from without overlap. “We believe we are seeing a shift in the insurance consuming public back to personal contact and professional advice, and we are filling that need.”

L.J. Stein Canada, a Canadian office for a New Yorkbased specialist energy insurance Jeff broker, was Peters granted its license in September 2013. Jeff Peters, president, is well versed in the need for a specialist broker to assist Canadian customers doing business in the US. “Our past experience suggests there are many barriers to working across borders, especially in relation to the procurement of insurance. We broke these barriers down by integrating one company, L.J. Stein, in both countries rather than having to source out an unrelated third party to assist clients.” “We are based in Calgary, but do business all across Canada and the U.S.A.,” says Peters. “We deal with upstream energy and energy services-related companies who not only require knowledge of their industry but also a broker who has an ability to navigate complex regulatory and legal environ-

ments.” In addition to serving North American clients, they also look after international exploration and drilling companies in places like Africa, Asia, and South America.

One company that is bringing an entirely new business model Aly to Alberta Kanji is Sussex Insurance. Founded in 1976 by Ken and Debby Armstrong, Sussex is a franchise operation with 47 locations operating in B.C., primarily based in Wal-Mart or Real Canadian Superstore locations. “We think of ourselves as innovators in the insurance industry,” says Aly Kanji, chief operating officer and general counsel for Sussex. “We are unique in that each location is independently owned and operated and our hours are

8 The Alberta Broker December 2013 - January 2014

from 9:00 a.m. to 9:00 p.m. every day, excluding Christmas and New Year’s Day.” The insurance franchise model is something that does not currently exist in Alberta but Kanji is confident the success factor is there. “Having franchises will give brokers an opportunity to own their own business with the ease of a turnkey operation.” Brian Wills, vice president, strategic partnership, says consumers want to buy insurance when it is convenient for them. “Sussex is the fastest growing broker in B.C., which tells us that consumers want to deal on their terms. Our first Sussex Insurance branch opened in Alberta in October 2013 and our plan is to build 12 more stores to get things going, all of which will be in Wal-Mart locations.”

Pirbright Professions Inc. brings another innovative style to the Alberta insurance market for small-to medium -sized companies with both traditional and online services. Having background experience as former employees of Jardine Lloyd Thompson in Calgary, Dafydd Griffith, president and Barb Taylor, assistant vice-president, are

in the final stages of organizing the company’s launch. “We will primarily be providing insurance solutions for professionals,” says Griffith. “We have very specific areas we’re looking at because we Dafydd don’t want Griffith to be a jack of all trades. We both specialize in professional liability and cyber liability which is going to be the backbone of our company.” The company name reflects the fact that they didn’t want to be regular insurance brokers. “We are specializing in insurance for professionals and professional businesses,” says Taylor. “Pirbright Professions Inc. has office space, but the majority of our clients will be contacting us by phone or email. The system we have designed can take advantage of the efficiencies of working online and doing a paperless program.” Griffith adds they will also work with small brokers in a wholesale capacity by offering access to online quotes. Whether policies are written for auto, personal or commercial via faceto-face, phone or online, it is clear that the new players in the Alberta insurance market are ready to establish their unique place in this ever changing industry.

About the Author Laurie Jones has been a freelance writer for 12 years, including profiles and stories for the insurance industry since 2010. See more of her work at www.conceptsunlimited.ca. The Alberta Broker December 2013 - January 2014 9

Know E&O

Matthew Davis

The Price Is Right? At the heart of America’s longestrunning game show, “The Price Is Right®,” is an age-old and deceptively simple question: “What’s it worth?” Deceptive, indeed. If the answer was easy, the show would not have lasted 41 years. For more than 7,800 episodes contestants have been venturing their best guesses about the cost of everyday items. And, time after time, most of those guesses have been wrong. A similar, but far less entertaining contest rages among a very different set of contestants over the valuation of real estate, both residential and commercial. Carriers want covered properties insured to full replacement cost, with premiums to match. Property owners, on the other hand, want low premiums but “full coverage” in the event of a complete or partial loss. Lenders just

want their loans secured, but increasingly, (e.g., in Florida) they are reluctant to offer appraisals that others might rely upon to their detriment. Their collective unease is understandable. In recent years, a difficult task has become more so as the cost of new construction moved in anything but a straight line. Perhaps that explains why Florida’s state-run carrier, Citizens Property Insurance, elected to rely solely on its chosen software for estimating the replacement cost of homes in 2011, only to reverse course weeks later with legal actions brewing.

In the face of this storm, to whom do our contestants turn for valuation advice? The humble—but well-insured —insurance broker. That is a role brokers should decline. Dabbling by insurance brokers in

Valuation Best Practices

Brokers should consider some of these best practices when assessing their own operation current procedures: • The Best Practice: do not agree to become an appraiser in the first place. Instead, urge customers, in writing, to have their property (re)appraised by a licensed professional on a regular basis to ensure that the limits in place are, and remain, adequate. • Explain that the “replacement cost” of a building will likely exceed both the “actual cash value” and “purchase price” of a building, often by a significant margin. • Explain what a “coinsurance penalty” is and how a loss may not be fully covered even if it is within policy limits. • Examples of resources you might suggest to find a licensed appraiser include: www.aicanada.ca and www.appraisalinstitute.org. Other alternatives: reconstruction cost estimates by licensed general contractors, architects or engineers. If your customer is unmoved, and you cannot refrain from offering an opinion about replacement cost, you should: • Document your recommendation that a licensed professional be consulted, as well as the customer’s refusal to do so. • Make clear to the customer the substantial limitations on your training and experience as an appraiser— 10 The Alberta Broker December 2013 - January 2014

particularly with respect to determining the “replacement cost” of a commercial or residential building and document those warnings, too. • If you use one of several commercial replacement cost estimator programs on the market to arrive at a number, provide a copy of the program’s disclaimer (it’s sure to have one) to the customer, indicating that your estimate is subject to the same limitations. Offer the figure to your customer as evidence that the current number is too low and that a professional valuation is needed. • Replacement cost estimators are affected by a number of variables e.g., location, square footage, usage, materials and design. Document the information used in arriving at an estimate and the source of that information. • Be explicit: construction costs go up every year by varying amounts, depending on market conditions; so should policy limits. A yearly inflationary increase likely will not keep pace with the cost of construction, which brings you back to the subject of periodic appraisals. • Request that the carrier confirm that the property is insured to replacement cost such that no coinsurance penalty will apply. Above all, place the final decision firmly in your customer’s lap.

unfamiliar lines of business has always been ill-advised. Dabbling in other professions entirely—like real estate appraisal —can be downright perilous. Commercially available replacement cost estimator programs may be used to fill the “expertise gap,” but those programs, too, have their limitations. They cannot bring order, logic and predictability to the roller coaster real estate and construction markets. Yes, they are better—much better— than merely guessing (or ignoring the issue altogether), but if you take a look at the disclaimers attached to those programs you will see just how sure their creators are of their digital crystal ball’s accuracy. They understand better than anyone how many variables affect the outcome and how many alternate scenarios may play out, especially over time. To make matters worse, some third parties such as lenders are now attempting to offload their own appraisal burdens onto brokers. They are not customers. They pay no fee or commission.Yet they boldly request copies of the broker’s replacement cost estimates with a simple endgame in mind: if it turns out to be wrong such that there is a shortfall in coverage, blame the broker and force him to pay the difference. The simple answer to those requests: just say no.

What does the busy insurance broker know about a property’s value that a mortgage lender does not? Because of the business they are in, both lenders and carriers are in a far better position, in terms of both volume and resources, to ascertain whether a particular property is adequately insured—at least when it comes to limits. Their reluctance to do so is instructive, to say the least. They have learned a hard lesson over time: they do not know whether “the price is right,” and cannot afford to be wrong. Can you?

MATTHEW DAVIS Claims Manager / Vice-President Swiss Re Corporate Solutions

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specificallydisclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice.

The Alberta Broker December 2013 - January 2014 11

IBC Insight Bill Adams

AFTER THE FLOOD... The flood waters have receded, and Alberta is picking up the pieces in its recovery and rebuilding efforts.Yet there is still a great deal of activity in the insurance world in the wake of Canada’s costliest insured natural disaster, at $1.7 billion and counting. Let’s look at how the industry handled the flood situation and what we are doing in the medium-to-long-term to address this ongoing risk. In late June and July, there were more than 5,000 claims and industry professionals on the ground in Southern Alberta to assess losses. To date, there have been more than 25,000 claims. The numbers don’t tell the whole story; as brokers know, the emotional toll on many Albertans has been incalculable. As brokers also know, the claims handling process had some bumps along the way. In the direct aftermath of the flooding, insurance was one element of frustration for some homeowners. As insurers, we understood consumers’ disappointment when some discovered that overland flood damage (or, in some cases, sewer backup) was not covered under their individual home insurance policies. That is why we worked extremely hard to answer insurance questions and provide accurate information. IBC immediately added more resources in our Alberta office— increasing staffing and extending hours for our consumer information centre (CIC). Our CIC also worked with IBAA to ensure that customers seeking to reach their broker were able to connect. We put out regular updates to consumers and corrected misleading information that appeared in traditional and social media.

NOW WHAT?

Our consumer education initiatives continue to this day. In late October, IBC introduced an interactive mall display that is visiting several communities throughout Alberta before Christmas to deliver important safety messages and demonstrate practical loss prevention measures. With an interactive kiosk known as “The Dry House,” we will show Albertans how to protect their homes and reduce potential flood losses. Brokers should look for this touring information program, called “Let’s Be Smart—Let’s Be Ready.”

contributing to keeping disaster-damaged vehicles off the roads and protecting Canadian consumers. The database currently contains 3,000 VINs for flooded vehicles and the site has attracted thousands of visitor inquiries. The southern Alberta flood of 2013 and a string of other severe weather events across the province this year that went largely unreported in mainstream and social media are more than just bad luck. In the past four years, insurers have paid out billions of dollars in claims for property losses related to windstorms, hail, wildfires and flooding. Brokers are on the front lines Unfortunately, the weather is with consumers and have an not likely to get any better. Our ideal opportunity to discuss risk IBC-commissioned research management and loss report “Telling the Weather Story” suggests that increasingly prevention measures. severe weather trends will continue, with more hail, storm and IBC’s work involved more than wildfire events anticipated over the consumers. We met with government coming decades. Albertans can expect officials on an ongoing basis to share warmer summers, more heavy information about insurance coverage, precipitation and more flash flooding whether for homeowners in areas such combined with more frequent periods as High River or small businesses in of drought. Calgary. IBC also engaged several At IBC, we are focused on helping groups such as the Alberta Flood Canadians and Albertans adapt to our Recovery Task Force and the Alberta changing weather patterns. We have Emergency Management Agency in several projects on the go, including insurance-related discussions so that the launch late this fall of a Municipal well-informed government policy Risk Assessment Tool (MRAT). This decisions could be made. We also diagnostic and planning tool will help provided regular progress updates to municipalities better allocate limited government and the public on how resources to the most pressing storm insurance companies were responding water and sewer infrastructure demands to claims throughout Southern Alberta, and alleviate basement flooding in areas discussing how obstacles could be overthat are most vulnerable. come so that claims could be settled As we look to the medium term, we quicker. understand that the nature of the For flood-related damage to vehicles, discussion on flood risk has changed IBC created VIN Verify: an online, in Alberta (and indeed, in Canada). searchable database of vehicles reported Premier Alison Redford’s quick as damaged and branded as nondecision this summer to put in place repairable due to flood. With help from a multi-point policy for future flood participating member companies and disaster mitigation confirmed that government agencies, the list is

12 The Alberta Broker December 2013 - January 2014

direction. IBC supports this plan, which includes improved flood hazard mapping, restrictions on (re)building in high-risk zones and changes to financial assistance. The Alberta government has also appointed an advisory panel on community flood mitigation. IBC has reached out to this group to share its member companies’ substantial expertise on loss reduction techniques. We also commissioned a report on adaptation and mitigation measures from the Institute for Catastrophic Loss Reduction (ICLR) to provide industry’s perspectives to the Alberta government on reducing future losses from flooding. While we don’t have all the solutions for managing issues resulting from climate change and severe weather, we have some ideas to contribute. We are eager to participate with key stakeholders, including brokers, in the discussion about how we can better protect our communities and neighbours. We have a window of significant opportunity for a healthy and frank dialogue about how we can make our homes and our province stronger and more resilient. Brokers are a key part of these strategic risk management plans and we look forward to building on our ongoing discussions such as those at IBAA’s property insurance forum earlier this fall. Brokers are on the front lines with consumers and have an ideal opportunity to discuss risk management and loss prevention measures. We know that flood risk has taken on a new urgency in Alberta and that we collectively have two years to consider and implement significant changes to better protect Albertans. However, we also want to avoid knee-jerk responses such as ill-considered decisions on a flood insurance program. Instead of perceived quick fixes to managing flood risk, we need significant investment in the latest flood risk mapping techniques, sound mitigation measures and a realistic discussion of what a sustainable flood insurance program might look like.

In natural disaster situations like floods, someone ultimately pays for the damage—whether it is the government, the insurance industry or the customer, we all know that at the end of the line there is only one set of pockets. It is time to have a realistic discussion involving all three groups about housing development in vulnerable flood zones, modern flood risk mapping and the right kinds of investment in flood protection for Albertans and indeed all

Canadians. Insurers are ready, willing and motivated to help Canadians adapt to the new realities of climate change. The time for such a discussion is now and in the months ahead. BILL ADAMS VP, Western and Pacific , Insurance Bureau of Canada badams@ibc .ca

The Alberta Broker December 2013 - January 2014 13

Member Services

Janis Losie

Get Your Bipper’s Worth with Our Newest Affinity Partners Brokers have told me that there are several critical issues they’d like to see IBAA address. As a result, we have researched solutions for members to focus on their top priorities: managing costs, hiring staff, recording calls for E&O protection, improving the bottom line and use of the Bipper to drive clients to our members. Your IBAA has teamed up with four new partners that we are confident will deliver more value for your membership dollar. We are excited to share them with you and invite you to take advantage of all they have to offer.

Start saving on your everyday office supplies. All we need is a list of items you use regularly. Lyreco will create a “deep discount” list for items our brokers use most. Lyreco has promised next day delivery anywhere their trucks are available—48 hours to most rural areas. We have a dedicated account manager who will ensure issues are resolved promptly and all your orders can be placed online for your convenience. Take advantage of your buying power to make your membership work for you!

14 The The Alberta Alberta Broker Broker December December 2013 2013 -- January January 2014 2014 14

Most of you have told me how difficult it is for you to find good, experienced staff. As a result, IBAA has worked with InsuranceWorks to develop a program to help fill your vacancies. Using our members-only promo code, you can now save on job ads. We will have a page devoted exclusively to IBAA to attract the best candidates to our members.

help add to your bottom line with the technology you use most. Blue C802 is bringing its blueButler to IBAA members. Their phone software helps add E&O protection, increase staff productivity, automate lead generation and much more—all while using your existing phone and broker management system. Our members-only program will

Build your brand. Use the IBAA’s buying power to get out of the rut of buying the same old promo items. Shop our online store for deals on

items you can customize to take advantage of the power of the Bipper —recognized by consumers as one of Canada’s top corporate symbols.

JANIS LOSIE Director of Member Relations, IB AA jlosie@ibaa.ca

Bipper on Parade Alberta’s Nicolet Insurance made a big Bipper impression when it incorporated IBAA’s inflatable Bipper into its float for Falher’s parade this summer. The association provides the inflatable free of charge to IBAA members.

The Alberta Broker December 2013 - January 2014 15

Who? What? Where? Chris Lewis

Northern First off, I would like to take this time to wish everyone a very Merry Christmas and Happy New Year and I hope everyone has a safe and joyous holiday season. I can tell you that we are quite excited for the holiday season as this will be our first Christmas with our two newest bundles of joy. Many of you have asked me how the year has gone, and I would be lying if I said it was all sunshine and roses. I can safely say I have learned more in one year than I have in the past 29, such as: 1. It’s amazing how one can function with only four hours of sleep a night. 2. 2 + 2 + 2 + 2 hours of interrupted sleep does not equal 8 hours of sleep. (Thanks, Christine Cassidy at Harmony Insurance.) 3. You can never REALLY baby proof your house. 4. Two crawling monsters = one very unhappy dog.

Brayden & Nickolas

I joke around about the past year but can definitely say we have two amazing little boys who are growing and

flourishing before our very eyes. A few people have asked me to keep them updated with photos, so thought I would add a recent picture. How can I not include a picture of our two little monsters when they are so cute? What’s Going On? The PYIB hosted the IBAA’s annual fall conference, October 24–26 at the Westin hotel. The event was once again a great success and quite well attended. There was an executive panel on Thursday followed by the Halloweenthemed trade show. Peace Hills, Intact, RSA, Aviva and Wawanesa were represented on the executive panel, which was moderated by Robyn Young (Lundgren & Young). Numerous insurance companies and vendors participated in the trade show but two companies kind of stood out. Economical hired a make-up artist to turn everyone into zombies and Intact hired a couple tarot card readers to go along with the theme. Costumes ranged from Wayne’s World to Batman & Robin, even Rex Ryan made an appearance. On October 8 the IINA hosted the battle of the bands at On The Rocks. This is slowly becoming one of the best events to attend and always draws a crowd. The night started out with last year’s winner Hammered by Sound (featuring Chris Twardzik from Townsend and Leedham Adjusters). The night continued with three competitors: Back Pages (featuring Pat Hall of Access Insurance), Short of Able

16 The Alberta Broker December 2013 - January 2014

(featuring James Rutherford from Cornerstone Insurance) and The Drivers (featuring Dean Foster of BrokerLink). Congratulations to Pat Hall and his band Back Pages for winning this year’s battle of the bands. As always, the year was filled with a number of insurance golf tournaments. From council tournaments to company tournaments and fundraising events, I would like to personally thank all the volunteers who put in the time and effort to make these events such a success. This industry does a wonderful job of fundraising for numerous charitable organizations and the amount of money that is donated to these organizations from our industry is something we should be very proud of. One of the most memorable moments of this year’s golf season, would be the hole-in-one by Julie Lewis (Intact Insurance) at the Edmonton local council golf tournament. Unfortunately for her, the hole did not have a hole-in-one prize but she will forever have bragging rights among many of her industry peers. Welcome to the club. The two tournaments that I will make a special mention of are the Men’s Insurance Ryder Cup and the first annual Women’s Insurance Solheim Cup that were held at Legends Golf Course. These jointly-held tournaments are competitions where the company people face off against the brokers in a 27-hole battle to determine who has bragging rights for the year. Unfortunately, I will have to admit that this

year’s winners of both the Ryder Cup and Solheim Cup are the brokers. Maybe next year they should spend more time in the office than on the golf course. A big “thanks!” to the men and ladies of Foster Park who played a major role in organizing both of these events; however, hopefully next year the Ryder Cup will be named the “The Insurance Ryder Cup” and not the “Foster Park Tournament” as it was conveniently changed to this year. Who? What ? Where ? When? • Christian Metivier joined BrokerLink Century Point after leaving his position with Aviva Insurance. • Amanda Pratt joined Peace Hills Insurance after moving back to Edmonton from her time in Fort McMurray. • Veronica Hipkiss is rejoining Peace Hills Insurance after trying the broker side with Boulevard Insurance.

• Nathan Gregory joined E Anderson Insurance Agencies in Hughendon, Alberta. • Kevin Park celebrated his 25th Anniversary with Portage Mutual. • Farzina Coladon joined The Guarantee Company as a senior underwriter. • Congratulations to Travis and Behjan Gregory (Aviva Insurance) on their baby boy, Hunter Gregory. • Doug Lyall, formerly with WFG, joined HUB International. • Jimmy Bacchus left Aviva Insurance to join JLT Canada. • Clint Parmenter left Capital Insurance to try his hand at something outside the insurance industry. • Congratulations to Allie Davis Redgwell on her new position of regional branch manager within BrokerLink. • Jeanine Fahey moved positions within Wawanesa Insurance. She is

leaving her position of a marketing rep and heading into the claims department. • Ryan Fowler joined Access Insurance. • Congratulations to Ryan Yarmuch on his promotion to commercial underwriting manager of Wawanesa Insurance. • Helen Voneggers is the new personal property manager of Wawanesa Insurance. • Cathy Mundt joined Roberts McClure Insurance. • Sandra Van Raalten, who is a claims manager with Wawanesa in Edmonton, will be moving to the Calgary office in the same role.

CHRIS LEWIS Business Dev. Advisor, Peace Hills Insurance clewis@Phgic .com

The Alberta Broker December 2013 - January 2014 17

PYIB Perspective Irfan Manji

Spook-tacular Conference Offered Loads of Treats As a new member of the board, and a new resident of Alberta, this was my first time attending the IBAA fall conference, hosted by PYIB. The event was educational, engaging and allowed for lots of networking opportunities for all the attendees. On behalf of PYIB, I would like to thank everyone involved for making the conference as successful as it was. Here’s my play-by-play of the conference and the key learnings I took away from each session. The convention began with an all-out education day that saw participants earn up to five and a half CE credit hours. Our first speaker was Gary Faber from SCM who spoke on the topic of property insurance nightmares. His presentation included examples of property risks that are common to the industry. From the beginning to the end of his presentation, he kept the audience captivated as he discussed the issues with respect to knob and tube wiring, plumbing systems and, especially, woodstoves. He brought in examples of wiring and piping to pass around and also kept us awake with Halloween candy as rewards for correct answers! The highlight of his presentation was at the end when he asked what the leading cause of property losses in the United States was, and before anyone could answer, he got on all fours on the table in the front row and began barking—in case you don’t know, the leading cause of property claims in the U.S., is animal claims (dogs in particular). Our next presenter was Thom Young, CEO of Lundgren & Young and also the writer of “Young’s Stuff.” His first presentation of two was “Dealing with Customers from Hell.” One of the main

points discussed was the importance of retaining customers who you care about and who are a good fit for the firm versus letting clients go who are a detriment to the company. Furthermore, Thom advised that the cliché of “the customer is always right” depends on the level of determination that the broker has with respect to wanting to retain the client. Generally, brokers will want to bend over backwards to retain clients, as the cost of retention is far less than acquisition. But sometimes the scenario exists in which the cost of the client far outweighs the profitability of retaining the client. Without a positive benefit to the firm, the client should be let go. The second session that Thom delivered was “Auto Insurance Nightmares.” (The entire convention had a Halloween theme, as you can tell.) The most

18 The Alberta Broker October - November 2013

important topic that was addressed was the impact of softtissue injury caps. Since the introduction of these caps on the total payout with respect to soft tissue claims, the overall auto insurance premium for Albertans has decreased. If the majority of claims involve such injuries, the premiums would proportionately go up if we wanted these caps lifted, potentially leading to customer dissatisfaction. A director for the Facility Association of Canada, Thom has expertise in this area. Under the “Take All Comers” legislation, more residual market auto risks have been dispersed throughout insurers. As brokers, we must know when to place clients in the residual market, and further to that, we should be aware of the underwriting criteria according to which they are rated. We have the ability to look in the same manual that the Facility underwriters do, and should do so.

continued on page 20

Thom Young

continued from page 18 Christine Nealon of Verge Leadership spoke on the topic of bullying in the workplace. We as individuals have the responsibility to make sure that if one of our fellow coworkers is being negatively treated in this kind of manner, we should step up and be able to address the issue. The bully in the workplace doesn’t get pleasure from the act of bullying itself; the bully instead derives satisfaction from the suffering of the actual victim at hand. The victim in the workplace is commonly viewed as a superior worker, with a good work ethic, and the bully feels threatened by him or her. A problem arises when the victim’s productivity decreases since he ends up spending more time thinking about how to address being bullied. In some cases, the victim’s performance is impacted because the bully holds a position of power and chooses to withhold material information. The next session, presented by Janis Losie (IBAA director of member relations) focused on errors and ommissions (E&O) insurance for clients and brokers themselves. As insurance professionals, it is part of our due diligence to review what sort of E&O exposure our clients may have in the course of their business. Our notations in clients’ files are the single most important resource when it comes to defending an E&O lawsuit. If a client refuses to increase coverage, or declines what we consider important coverages, it is highly important to document these in writing. The court can summon these notes in the event of a lawsuit. To avoid a “he-said, she-said” argument, having the notes on the file allows the broker to defend her position. In this day and age, with the type of markets that exist

Christine Nealon

and the coverages that are available with wholesalers and other forms of insurers, unique coverages do exist, and it is part of our due diligence to determine whether specialized coverages are available rather than assuming a particular risk cannot be insulted. The insurance marketplace is dynamic, and coverages are changing, so it is important to be up to date. To wrap-up the first day at the conference, PYIB held a volunteer opportunity at the local Edmonton Food Bank, where some volunteers joined members of the PYIB board and we sorted through several pallets of donated food items to prepare them for the local people in need. This was a fulfilling experience that also allowed us, as an organization, to bond since we had members from all over Alberta, from Taber to Grande Prairie, come together and do something for the community. I would like to encourage other young brokers to take part in our future volunteer events since it helps enrich the lives of others. I personally do not believe that we encourage this enough in our society today. The second day of the conference began with Mark Prefontaine, the Superintendent of Insurance, speaking on several issues including the Alberta Insurance Rate Board (AIRB) that administers the Alberta Grid program, regulation and policy with respect to insurance and the financial sector, as well as consumer complaints. One of the major points that Mark touched on was the complaint department of his office. The majority of the complaints received this past year were not with respect to lack of claim payment regarding weather-related disasters as most of us thought; in fact, most complaints were “routine,” generally

20 The Alberta Broker December 2013 - January 2014

regarding the dollar amount for which everyday claims are settled. The office also fields questions about how claim settlements are determined, why auto and property rates are increasing and issues regarding the insurance policy. Mark explained that, the number of complaints is proportionate to the quality of explanation and care with which brokers address their clients’ questions. The topic of natural disasters with respect to property insurance in Alberta was also discussed. Mark explained that, since Alberta has the highest number of property claims in this regard, the idea of sub-limits for certain perils and higher deductibles is becoming a reality. The insurers cannot deny the fact that claims payouts are higher than they have ever been, and we should expect ramifications in the marketplace to help combat these issues. The second event of the day was the Alberta Executive Panel. We were graced with the presence of five executives from insurance companies: RSA vice president of sales Rosetta Bilodeau, Wawanesa vice president, Northern Alberta Keith Hartry, Aviva vice president of business development Mark Rouleau, Peace Hills branch manager Neil Klawitter and Intact director of actuarial-personal Sylvain Renaud. Some of the important topics discussed were the dynamics in the marketplace in regards to emerging threats such as competition from direct writers, lack of industry professionals, weather-related claims and distribution channels of product offerings. In today’s society, the younger generation, being more tech-savvy, is moving away from the traditional method of purchasing insurance in person to online methods.

In relation to weather-related claims, one after another, each executive made suggestions that property insurance in Alberta would be subject to increases. Our final speaker of the day was the legend, Henry (Gizmo) Williams. What an enthusiastic and motivational speaker. From start to finish, the audience members were at the edge of their seats. Gizmo had a very rough childhood—he lost his mother and father at a young age and then proceeded to lose several of his brothers and sisters to Multiple Sclerosis. Every time someone would exit his life, he would channel his sadness into productivity and continue to strive to be the best that he could be at the thing he loved most: football. Gizmo was not afraid of calling himself the best; he even said that he drew parallels to Muhammad Ali, claiming he was the greatest. With no hesitation he told the crowd that he set 23 CFL records and said confidently he knew that 21 of them will never be beat. He went on to say, “I’m not one of the best, I am the best.” When we become complacent in our everyday lives, that’s when we no longer strive to be the best that we can be. Every day we must try to be better than we were the last. We ended off the conference with the trade show, which was highlighted by the Halloween theme. Whether it was a team dressed up as zombies led by Michael Jackson from Thriller or the crew from The Wizard of OZ, everyone dressed up and had a great time. Insurance-related merchandise was handed out at every booth, and industry professionals had a chance to mingle and view product offerings from insurance companies, as well as from other industry-related businesses such as restoration and roofing companies, software companies and the like. The fall conference was a tremendous success, and we would like to thank again the people and companies that made this possible. Be it attendance, sponsorships, or participation throughout the conference, we would not have

been able to put on a conference such as this without the help of the supporting industry. We look forward to seeing you next year!

IRFAN MANJI PYIB Director-at-Large irfan@allso.com

The Alberta Broker December 2013 - January 2014 21

Communicating During and After a Disaster

Are You Prepared?

By Karen Rutherford If your brokerage was the next to receive a couple hundred claims because of a disaster in your town, would you be ready? With train derailments, floods and fires all in the last couple years, I’m sure you all recognize your town is not immune to a big event. There are many things to consider when planning for a disaster including staffing, quality control, time management, IT, facilities and communicating with your clients. You should have a full blown disaster recovery plan but today I just want to talk about the communication element with your clients and your community. If you don’t step into the lime light during a crisis, your clients and your community will be talking about you at the local coffee shop and it won’t be very flattering. You have all heard how your friends in the insurance community handled the flood crisis; what have you taken from that experience and how have you prepared your brokerage? Are you waiting to see the next phase of the June 2013 flood? Have you anticipated that in the next 6–9 months there will be another big story about how the insurance industry handled this disaster and the fall out of the flood? Brokers anticipating that eventuality will have a communications plan to cope with that need. A communications plan requires that you prepare today for an unknown event. The preparation needs to be flexible so that you can adjust when you have an actual event. The plan also needs to identify the dates following the disaster that will also pose a problem, such as the first annual press review, the recovery of some of the victims, perhaps the funeral of some of the victims or the date that lawsuits must be registered with the courts. LOOK WHO’S TALKING The first thing you must decide is who will be your spokesperson during and after the event. You may want one person to be the face of your brokerage or you may want several people to be trained and ready to go. The most 22 The Alberta Broker December 2013 - January 2014

important consideration is how you want to be perceived by your community, and then pick the person best able to achieve that goal. Have you identified the best person in your firm to be the spokesperson? There is a skill to sounding kind, compassionate and strong, and the right person may not be the president of the company! In corporate media planning, the goal is to never put the president out front too soon—a number two or three guy goes first to allow the president to step in later if there is a need to change the story or the strategy. You may want to follow that strategy especially if you have a good communicator on staff. KNOW YOUR AUDIENCE The second item is to identify your audience and how to craft different messages for the different audiences. You have to consider your clients, the broader community, the media, some of your business associates (such as adjusters) and, depending on the situation, regulators. THE MEDIUM FOR THE MESSAGE The third item to consider is the method of getting your message out—not only during the actual disaster but also for the subsequent occasions such as the disaster’s anniversary. Newspapers are not a very practical idea during the event if no one is home to pick up the paper. TV may not be practical for the same reason. However, on the anniversary date, the newspaper may be the perfect tool. Radio is a great strategy for many types of events as is the Internet during the event. People tend to have access to radio or Internet with them regardless of the disaster. Have you set up an e-communications program like Constant Contact with your clients? Have you captured your clients’ email addresses and cell phone numbers so you can easily broadcast email and text messages to them? INFO AT THE READY The fourth thing to plan is the information you need to provide. Have you created the information clients will need if they have suffered property damage such as their right to

The Alberta Broker December 2013 - January 2014 23

continued from page 22 hire whoever they want, the advantages and disadvantages of using the insurance companies’ recommended contractors, steps they should take to mitigate damage, etc.? Have you prepared a “How to Hire a Contractor Checklist” so your clients can take steps to protect themselves from the opportunists who come out of nowhere to take advantage of overwhelmed homeowners. Create the checklist today, brand it to your brokerage and be ready to give it to those in need—they will thank you for your help. Are you ready to give a press conference or answer the media’s questions? What should you say and what topics must you avoid? Brokers can always provide great advice without committing their carriers to anything. Being prepared means you won’t make mistakes in the heat of the moment. Brokers who hit the air waves can provide basic information and can do a lot to calm and reassure clients at a time when they really need a reassuring word. Brokers have told me it is not their place to comment on claims. But you can provide solid advice without crossing the line into the job of an adjuster. Brokers sell the product, know what is in the contract and know that contracts can be enforced by the courts if necessary. Brokers also know that it is the clients’ duty to protect their property from further loss and that repairs can begin immediately, even if the adjuster hasn’t been there, as long as there is photographic evidence of the loss as it was. No client needs to wait for an adjuster to start protecting and saving their property. No business owner needs permission to start to save his business. What they are obligated to do is ensure that insurance companies can determine the extent of the loss and that can occur through pictures. So, do you have a client-friendly plan for when a disaster strikes and affects your clients? Grab your disaster communication plan right now and check it. Does it offer high-quality advice to your clients? Have you identified the various adjusters

You can provide solid advice without crossing the line into the job of an adjuster. and insurance company people on whom you would call to test your message before going public? Have you asked your lawyer to check the language to be sure that it is accurate without over-promising results? Do you know which subject matter experts you want to call? Have you arranged to have high quality information placed on the front page of your website? Can someone in your office make the changes or will you be dependent on others to do this for you? When it comes to media relations, remember the adage, “The media is a beast! Either you feed it, or it will find something to eat.” BE PREPARED Before the next disaster, become familiar with protocol for responding to the media. Create and maintain a press contact sheet. Prepare templates for Internet publishing. Be prepared to update your website daily or as developments arise. If you don’t have a “Constant Contact” protocol, build one today. Create a press release. Be ready to do that by having a template partially prepared. Put together media materials, including questions and answers and bulleted facts. These materials may be developed by the designated spokesperson to increase her effectiveness in providing the media information. Having other background information ready and made available to the media immediately frees them up to focus on gathering information about the event at hand. Throughout any event, be proactive. Notify the press of new information, for example the number of claims you have received, new temporary claims offices or new claims procedures. Always start with a positive statement about your brokerage, such as, “We at ABC Brokers have extended our hours to be sure our customers can reach us when they have questions. We are working

24 The Alberta Broker December 2013 - January 2014

with our customers to arrange the fastest possible claims response to their individual situation. Today we can report …” Use every opportunity with the press to correct any misinformation that may be circulating. Of course, remember that anything you say to the press can be used. There is no “off the record” so stick to a helpful script with key messages and resist the urge to throw in off-the-cuff remarks. Basic rules to remember include: Don’t speculate on the future actions of others. If you aren’t the spokesperson for a direct writer, then don’t offer comment on its actions. Let the fire and police chiefs speak for themselves and only speak for your brokerage. Your personal opinion is not helpful if you are supposed to be speaking on behalf of your brokerage. Stay within your field of expertise—contractors should answer questions about reconstruction, government officials should speak about government responses and you should talk about what you can offer. When you meet with the media or offer them information, accuracy is critical. Take the time to ensure you are correct before you publish information. Remember, the key reason to reach out to the media is to help your clients. They need information even when we all know that nothing can be done in the immediate future. Clients under stress don’t want to wait; they want answers in their moment of greatest distress. Brokers are able to provide that resource. For the brokers with flood claims, are you ready for the next wave of media coverage your clients will create? At some point in the next 6–9 months, some clients will be at a breaking point. Nothing will have gone as well as they had hoped. The positive energy they felt with everyone helping them will be a distant memory. Now they are alone, fighting with contractors to finish the job, fighting with both the government and their insurance companies for pay-

ment and feeling the stress of having their personal lives upset for months. What should a broker do when we all know this day is coming? Prepare! Reach out regularly over the next weeks and months. Have your staff well versed in helping clients work through their problems with insurance companies. Brokers should be up to date on the basics such as how long the claims process may take. What can you do when the process is stalled? What is a reasonable response time? Have you communicated this information on a regular basis to all clients with claims? Are you up to speed on how a client can fire a bad contractor? Once the claims are concluded, are you ready for the next dangerous date? The statute of limitation date is an important one. If clients are really unhappy with their settlements, they can sue you for bad advice, bad coverage or inadequate limits. Are you preparing for that date as well? Do you know how to prepare for that date?

You have the opportunity to prepare a solid communications plan today that will serve your image and reputation well. Good luck as you work to ensure your brokerage is ready for the next big disaster.

KAREN RUTHERFORD International Accelerated Learning kruther@telusplanet.net

The Alberta Broker December 2013 - January 2014 25

Legal-Ease

Shelley L. Miller and Terry J. Williams

A Picture of an Orange Sign Is Worth a Thousand Words

Gordon Mah purchased a house at 7812 - 106 Street in Edmonton from his brother Peter and asked Pratt Lambert and Brown (“PLB”) to add the house to his existing policy with Wawanesa Mutual Insurance Company (“Wawanesa”). Wawanesa asked PLB for an inspection and photographs. PLB directed a retired surveyor, Bill Laurie, to do the inspection and take the photographs for Wawanesa. Laurie prepared a report that described the house, its finish and roof, including foundation, structure, appearance, yard and trees. The report said that the house was sound and could be made presentable. Laurie’s inspection report and the photographs he took were sent to Wawanesa. Wawanesa got the photos and report, and then agreed with PLB’s decision to insure the house. The house in question was vacant, and Wawanesa knew that. After a time, it was declared by a public health inspector to be unfit for human habitation. Wawanesa did not know that directly. However, the health inspector had immediately printed notice of that

declaration on bright orange paper, laminated it, and attached it to the back door. The house burned about a year later. Wawanesa declined to pay, saying that it did not know two facts: the declaration of unfitness by the health inspector, and abandonment. The trial judge found that there was no abandonment but held in favour of Wawanesa on the ground that Mr. Mah had failed to disclose the declaration of unfitness by the health inspector. Mr. Mah appealed. A majority of the Alberta Court of Appeal allowed the appeal and held in Mr. Mah’s favour. The majority found that Mr. Laurie knew that the house was declared unfit. Although Mr. Laurie had not been called to testify, the majority stated that the three photos and report showed

that Mr. Laurie made an inspection up close and must have seen the bright orange placard, which he photographed. The majority of the Court of Appeal stated that, as a matter of law, knowledge is imputed to a principal in two situations: when notice is given to its agent or when the agent gained the knowledge in the course of his duties. In that regard, Mr. Laurie performed inspections of insured properties for PLB, and was paid to do so. The majority stated that Mr. Laurie may or may not have been PLB’s employee, but he certainly was its agent to get information. Therefore, Mr. Laurie’s knowledge was PLB’s knowledge, under the law. The majority of the Alberta Court of Appeal observed that it had been agreed by the parties that PLB was the agent of Wawanesa, and had authority to bind Wawanesa to risks. Therefore, Mr. Laurie was Wawanesa’s agent’s agent. Both Mr. Laurie and PLB were acting to help Wawanesa, and under a duty to do so. As a matter of law, Mr. Laurie’s knowledge was PLB’s knowledge, and so was Wawanesa’s knowledge. With that imputed knowledge, Wawanesa had expressly confirmed the renewal of coverage. The majority concluded that Wawanesa was therefore legally obligated to pay the claim. One of the judges in the Alberta Court of Appeal dissented from the majority’s decision. In his view, it was unreasonable to find that the surveyor knew of the notice based solely on the evidence that a bright orange sign on the back door of the house appeared in the surveyor’s photograph. In the view of the dissenting judge, it was not notice of the order of unfitness to have simply seen a bright orange sign.

SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMS are lawyers with Dentons Canada LLP and practice in the professional liability insurance area. terry.williams@dentons.com shelley.miller@dentons.com

26 The Alberta Broker December 2013 - January 2014

Viewpoint

Ken Myers

Heads Above Water Flood.

Depending on whom you ask, “flood” could be what happens when your water heater fails, when the bathtub overflows, when the do-it-yourself handyman in the household didn’t install the dishwasher correctly or simply just anytime water damages the home. Ask anyone in the property casualty insurance business in Canada what flood is, and you could get a complicated, and for a layman, difficult to understand, explanation. Stated simply, most homeowners believe they have “flood” coverage, as they define it. Reality, of course, is quite different. Sewer backup coverage is an extension that provides coverage for most of the water damage type claims many homeowners face. And, until just a few years ago, came at a relatively nominal cost. However, that has all changed. Faced with an increase in both the frequency and severity of water damage claims,

insurers have been forced to take a hard look at this peril. Whether the blame gets put on climate change and an increase in severe weather events, aging infrastructure or the reality that

“Do Canadians want overland flood coverage? Do they want to pay extra for it?” some of the most expensive belongings in our home are located in our basements, the facts are there. This is a problem that needs to be addressed. The issue for consumers is that overland flood coverage is not available to Canadian homeowners, while their sewer backup extensions pay many

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claims that are, in fact, flood events and not sewer backups at all. Many would argue that overland flood is provided now; following a large water damage event federal and/or provincial emergency assistance steps in and responds, although with limited compensation, and with considerable delay. Do Canadians want overland flood coverage? Do they want to pay extra for it? And if it can be made available, should everyone, regardless of where they live, qualify? Will Canadians accept that those in flood prone areas will pay a lot for it, if it is available at all? The insurance industry needs to wrap its collective head around this as Canadians are expecting a solution in the face of this ever-increasing peril. While encouraging development away from identified flood plains can help future homeowners, flood is not occurring just from rivers spilling over their banks or from a storm surge during a hurricane. Flood can now come from the sky; an increase in severe weather events means that people who thought they were not exposed to flood now are. Canadian brokers help protect the insurance buying public; insurers and government recognize that it is brokers who are advocating on behalf of consumers for workable solutions and making sure the products offered and the price charged by insurers are in the consumers’ best interest. The support of government from all levels, that must be part of the discussion will help set the regulatory table for a viable solution. Without this key piece, we all might be under water. KEN MYERS, B. COMM., FCIP, CAIB President, Insurance Brokers Association of Canada

The Advocate

George Hodgson

Gifts and Wishes Once again, ’tis the season to give, to receive, to celebrate, to make lists, to reflect and to start anew. The holiday season gives me pause to remember the causes that you, the IBAA members, support through your association.

Victim Services Victim Services, an organization most of us are fortunate enough to have never heard of, operates units in over 100 communities throughout Alberta. Victim Services Units assist people who have suffered losses, financial and otherwise, from accidents, crime and disasters. In some cases, they provide nothing more than compassionate company to families facing the tragic sudden death of a loved one due to an accident or a crime. In whatever form the assistance arrives, Victim Services is often a lifeline for those trying to put their lives back together again. Again this year, Victim Services continues to be IBAA’s flagship community involvement organization. IBAA teamed up with the Alberta Junior Hockey League and launched the Insurance Goal of the Game program. For every home game that is won by an insurance goal, IBAA and a sponsoring local broker donate a total of $100 ($200 during playoffs) to the local Victim Services unit of the sponsoring broker’s choice. This is badly needed funding for local Victims Services units, particularly those in the flood-ravaged areas of Alberta. By the end of the 2013–14 hockey season, the association and members will have donated in excess of $40,000 to Victim Services throughout Alberta. Last year, the Professional Young Insurance Brokers (PYIB) donated the funds raised from its golf tournament to Victim Services.

Students Against Drinking and Driving Students Against Drinking and Driving (SADD) is an organization of university, college and high school students who “strive to promote smart decisions through public awareness to prevent tragedies caused by impaired driving.” This organization seeks to prevent deaths and injuries due to this avoidable and largest cause of teenage deaths in Alberta. SADD is another organization that relies upon donations to fund itself. PYIB has supported this organization in the past with donations from their charity golf tournaments.

Kidsport Alberta In the future PYIB will support Kidsport Alberta with donations from its charity golf tournament. Kidsport believes that no child should be left on the “sidelines and that all should be given the opportunity to experience the positive benefits of organized sports.” Kidsport provides support to children in order to remove financial barriers that prevent them from taking part in organized sports. They do this in part by raising funds to provide sporting opportunities for children who are prevented from taking part due to financial barriers. Operation Red Nose Operation Red Nose is a safe ride service offered by volunteers and generally operates during the Holiday Season of Christmas and New Year’s Eve. This organization is funded only by donations at the local level and is staffed entirely by volunteers. It is a service offered to those who may be impaired not just by alcohol, but drugs, medication, fatigue or any other cause of impairment. While many volunteer organizations suffer from lack of funds and volunteers, Operation Red Nose suffers more than

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most as it is often unable to maintain operations in many parts of the Province. IBAA and PYIB have supported Operation Red Nose with volunteers in the past. It is truly a worthy cause particularly from a volunteer perspective. … and now George’s Wish List for Christmas and Beyond (the top ten anyway!)

That the IBAA board and executive continue to provide the inspired leadership that brokers have come to expect of them over the years. These people truly are the best of the best who devote an inordinate amount of their free time (and a lot of the not-so-free time) to the betterment of the broker channel and the insurance consumer.

That those brokers who are not members of IBAA see all that our association does to ensure the broker channel remains strong in Alberta. Aside from being one of the oldest trade associations in the province, it is truly one of Alberta’s most remarkable organizations of its type. Increased membership will only make it stronger.

That after a busy and often trying year, the staff of the IBAA have the opportunity to relax and recharge during the holiday season.

they can mitigate and prevent losses: winter tires, smoke detectors, sewer backup valves, fireplace maintenance, flame-retardant building materials, etc.

That we keep in mind that in the midst of all our riches, monetary and otherwise, there are those in our communities who do not have the basic necessities of life and that there are those that have everything and are alone this Christmas. Often in a time

That IBAA continue to strengthen its relationships with all of the stakeholders in the insurance industry including our provincial regulators, insurer partners, provincial and federal politicians of all political persuasions, sister provincial associations and all the other organizations the association comes into contact with. The strength of these relationships determines how well the association can advocate on behalf of brokers and consumers.

That the conversation that began with the IBAA-sponsored property insurance forum bears fruit over the next year. It is important that the property insurance product be affordable, available and sustainable and that a viable solution come from within the industry rather than being imposed upon us.

That after a difficult summer and fall, victims of the Alberta floods and other disasters find comfort and warmth with their families and friends this holiday season.

of “too busy,” through our giving and thoughtfulness we can make this truly a blessed season for us all.

“Happy Holidays” one and all!

GEORGE HODGSON CEO, IB AA ghodgson@ibaa.ca

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That brokers and other players in the insurance industry work with government at all levels to ensure that property owners are adequately informed, covered and prepared for flood damages. The floods that occurred in Southern Alberta and Fort McMurray will happen again – it is only a matter of when and where. Canada is one of the few developed countries that do not have personal property flood coverage. It is only a matter of time before the public outcry becomes so loud that a solution may be imposed on us.

That the public, our insureds, get informed and take action on ways

For application or more information, please call Nancy: 1-888-603-1931 or email: nwells@nwinsurance.ca

Affinity Program through Encon Group

The Alberta Broker December 2013 - January 2014 31

Commercial Break Karen MacWilliam

Credit Where Credit Is Harry the Plumber was at the house recently, hooking up the ice and water dispenser for my snazzy new fridge. The fact that the retailer from which the fridge was purchased doesn’t do that “for insurance reasons” so I needed to hire a plumber is fodder for another entire article, but I digress. Harry and I chatted about business. I asked Harry what he perceived to be the biggest risk facing his business. I should mention that Harry is 82 and continues to work five or six days a week. There is virtually no plumbing issue that stumps Harry. He told me that customers not paying him or people being slow to pay him was number one on his list. Having to work well past customary retirement age because he has no company pension was implied, but not discussed.

Did You Know... The last Alberta executive panelist from the IBAA Fall Conference standing was Rosetta Bildodeau from RSA? Rosetta showed off her excellent dance moves on the Friday evening of the conference along with the other 130 attendees. Our newest addition to the IBAA staff is named Diana Dai? (Another odd fact: We have five staff members whose names all start with the letter “J.”) Diana brings a wealth of knowledge and is a fantastic addition to our office. If you haven’t already, check out her article on page #.

“Do people call you to unblock their sink and then never pay you?” I asked, incredulously. “Often,” said Harry, with a worldweary expression. As the owner/operator of a small business, I must honestly confess that I have had nightmares about people who don’t pay. Taking a retainer in advance seems cheeky but working for free is no fun at all. “Is there some kind of insurance for that?” he asked. Not wanting a lengthy dissertation, I told him it would be nice if there was. Of course, there is. Credit insurance has existed for a long time. Most brokers with whom I interact don’t sell it, forget about it or don’t understand it. While it probably won’t help Harry the Plumber, it may help

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many of your clients who do a great job controlling property and liability risk but stay awake at night worrying that their receivables will run dry. Credit insurance can be purchased on an individual customer, a portfolio of select customers, customers from particular geographic areas or all customers, subject to the approval of the insurer. There are a number of “main stream” insurers that sell it, as well as Export Development Canada (“EDC”), a federal crown corporation. The coverage responds to the default of customer payment obligations. Typically, it is subject to a deductible, waiting period, and/or a co-insurance requirement to make sure the policyholder has some “skin in the game.” The insurer will provide limits of coverage based on the credit extended to the

Our keynote speaker for the 2014 IBAA Convention will be Arlene Dickinson? Arlene is CEO of Venture Communications and YouInc.com, a successful entrepreneur and a Dragon on Canada’s highest-rated unscripted show, CBC’s Dragon’s Den. We are looking forward to hearing her words of wisdom in May. Female elephants lead the herd? The corporate environment sometimes mirrors the animal kingdom in some respects. The matriarch elephant is able to remember the location of watering holes and food which are vital to the survival of the herd. Now think back to who you asked where all of your “stuff” was when you were growing up … yep, it was your mom.

32 The Alberta Broker December 2013 - January 2014

After digging up the birth records of more than 59,000 women between 1800 and 1970, University of Utah researchers found that moms of twins tend to live longer than moms without twins? I guess that bodes well for me … my twins turned 4 years old in April and I think that moms of twins likely live longer because they end up laughing with their kids so much.

Sources: IBAA, IBC, Statistics Canada, National Geographic and the Internet. Compiled by Rikki McBride.

policyholder’s customers and/or will provide a maximum on specific customers based on the insurer’s assessment of the risk. The insurer examines the financial health of the counterparties with which the insured is doing business and accepts or rejects counterparties to which the credit insurance applies. The underwriting process can be helpful because rejection of a counterparty by an insurer usually demonstrates a high likelihood of severe financial impairment and possible collapse. The process is advisory in that it may indicate that credit should be rescinded or reduced. There are different policy forms including coverage for: • Accounts receivable • Single buyers • Performance security • Political risk • Domestic credit • Contract frustration If the insured is doing business in politically unstable zones, coverage for war risks and political perils can be included. If a national government suspends the export of funds from a particular country, coverage may also respond. Underwriters may make suggestions about payment terms, the limit of credit extended and the size of individual orders, all of which can be very helpful risk management tools. If the insurer suspends coverage for a particular customer during the policy term, this is a signal that major trouble could be brewing, and the insured organization should revisit the granting of credit. Premiums tend to be quite affordable for the coverage provided and can assist your clients in closing deals by alleviating the concerns of shareholders and executive management when entering into new business models. Like a surety bond, the trigger for payment under the policy is typically “default,” which tends to be a higher hurdle to prove than simply a situation where a customer is slow to pay. The insured organization needs to sign over its right of recovery against the customer to the insurer, who can then attempt to collect the debt owed from the counterparty. Like surety bonds, credit insurance can fill some of the “holes” that emerge

when only property and liability insurance is purchased. Most organizations with which I work consider the impact of accidental losses; however, most of them (myself included) are flummoxed by the notion that if someone doesn’t pay them for goods or services received, they may face serious threats to their business. Not surprisingly, most insurers will exclude national and provincial governments as customers. The last time I billed the Government of Canada, a

net 30 invoice took them 117 days to pay. They quite diplomatically added 87 days of interest on the invoiced amount. Credit where credit is due.

KAREN MacWILLIAM is an insurance and risk management consultant karen_macwilliam@telus.net

The Alberta Broker December 2013 - January 2014

Who? What? Where? Darrell Verbonac

BROKER NEWS A new brokerage started operations in Calgary as Jeff Peters and Kyle Albert, who both had been with Renfrew Insurance, opened up under the banner of LJ Stein Canada ULC. This is a subsidiary of LJ Stein and Company Inc., which is based out of Lakewood New York, and which specializes in oil and natural gas insurance. Their office is situated downtown at 703 6 Avenue SW. At Canyon Insurance in Airdrie, Richard Mueller, Geoff Boughton and Adam Taylor purchased the business from Harry Mason of Canyon Insurance in Calgary, and renamed the operation Parklane Insurance Brokers Inc. Joining the staff at Parklane is Lisa Boomer, who was with Airdrie Insurance. Also in Aidrie, Western Financial Group has closed its local office. Up in Central Alberta, Rob Clarke of Clarke Insurance Brokers in Red Deer purchased Lacombe Agencies, and Nick Heaton has taken over as the office manager. Nick, who worked with Platinum Insurance in Red Deer a few years back, returned to the insurance industry after a spell working in the oil patch. In Calgary, two brokers moved office premises, as Julie Crawford and The Insurance Place moved to 427E -38 Avenue NE, while Ian Best and Church Eaton Insurance moved to 1812 4 Street SW. In staffing changes in Calgary, new at Rogers Insurance are Jenna Eisenhut, who was with Wilson M. Beck Insurance, and Tennille Unruh, who was with HE Hunt. Others joining Calgary brokerages include Linda Toth at Collis Insurance, Art Jukes at BFL Canada, Murray Lowick at Jardine Lloyd Thompson and

Christine Penner at All City Insurance. In news from Renfrew Insurance, Karen Peterson joined the team, having previously been with MHK Insurance, while Brad Diebert left to go over to Aon. Also new at Aon, in its group services sector, is Gary Rusnack. At Link Insurance, Gord Easton moved from its head office, where he was the manager of operations, to the Westwinds office where he returned to his real preference in a producer role. Replacing Gord is Kathy Uniac who was in Link’s Mount Royal office. New to Link’s Prairie Winds office is Amir Jinnah. In Red Deer, Trish Harvey was promoted to the position of manager at Alpine Insurance and John Benson took over as the new manager of Western Financial Group’s office. Other staffing additions around town include Dustin Nakonechy (previously with Alpine Insurance) at Platinum Insurance, Debra Cartier (previously with Godfrey Morrow Insurance in Calgary) at Mooney Insurance and Joanne White (previously with Sylvan Agencies) at HUB Phoenix Insurance. In Cochrane, Angela Brown is new at Riverside Insurance Services. In Strathmore, Dan Blazenko is new at Action Insurance, and best wishes go to Valancy Mitchell who got married and left both Action and the industry. COMPANY NEWS On the company side of things, Rhonda Daniels joined Intact Insurance as an equipment breakdown underwriter, coming over from The Boiler Inspection and Insurance Company. Chris Sharp joined Zurich Insurance in the business development side after having been

34 The Alberta Broker December 2013 - January 2014

with Western Financial Group in its High River head office. Long-time industry veteran Donna Engel joined CP Rail in its risk management and claims recovery department. Arnie Zippel retired from Travelers Insurance. Congratulations go to Nicole Price of Intact Insurance and husband Mike Bertocchi of Aviva on the October 11 birth of their son Liam Joseph and to Intact’s Hana Abed-Rabbo on her October 5 wedding to Fahad Al-Issa, which was followed by their honeymoon vacation to Maui. A special note of recognition goes out to Ginny Bannerman, Intact Insurance vice president of finance west, on being announced as a recipient of the Insurance Institute of Canada’s Established Leader Award. The awards were created to recognize achievement within the industry across Canada, and only five people were so honoured this year. Ginny has been a long-time advocate for the industry not only with Intact, but also as owner of a brokerage which lead to her serving as president of the Insurance Brokers Association of Alberta (and later, its CEO), the Insurance Brokers Association of Canada and the Insurance Institute of Southern Alberta. OTHER NEWS IBAA held its annual fall conference October 24–26 in Edmonton. There were two days of educational courses and topics, including talks by the Superintendent of Insurance Mark Prefontaine and Canadian Football League Hall of Famer and former Edmonton Eskimo Henry “Gizmo” Williams. Mark spoke on the state of the industry, while “the Giz,” a two-

time Grey Cup champion who looked like he could still play at age 51, talked about personal achievement including his rise from a tough background growing up in Memphis Tennessee. Afterwards, Gizmo posed for pictures and signed autographs. There was also an executive panelâ&#x20AC;&#x201D;with a number of insurer representatives speaking on a host of topicsâ&#x20AC;&#x201D; a trade show, dinner and Halloween-costume-themed ball.

Sadly, there are a couple of passings to report, as both Ken McCracken and David Turner passed away. Ken was the owner of McCracken Insurance in Airdrie, while David was the founder of the original Action Insurance, which went dormant for a number of years before being restarted in 2008 by his son, Jim. Dave was also the president and CEO of Western Union Insurance

and was with Countryside Agencies in Strathmore for a period of time. DARRELL VERBONAC, FCIP, CRM Regional Business Development Manager Intact Insurance Company darrell.verbonac@intact.net

The Alberta Broker December 2013 - January 2014

Professional Development

Diana Dai

It’s All About YOU and YOUR Experience Timeline: Less than 72 hours since I ventured back into the fascinating world of professional development. I am both excited and anxious. Getting back to professional development feels like coming home. I have educator’s blood—my parents and my grandfather were all professors. A quick flutter at my core: it has been more than 15 years since I left William Mercer’s Beijing representative office where we provided training programs to global clients such as Sony, Autodesk and Nortel China. Do you even remember Nortel? Over the last 15 years in the field of marketing communications, including over ten years in the Alberta financial industry with Servus Credit Union, I have learned that the most effective way to differentiate a great company and drive brand loyalty is delivering outstanding customer experience. Wikipedia defines customer experience as “the sum of all experiences a customer has with a supplier of goods and/or services, over the duration of their relationship with that supplier. This can include awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy.” As the director of professional development, my goal is to bring you such an outstanding learning experience that IBAA becomes your learning provider of choice. In order to do

that, I need to understand what your learning needs and wants are and what IBAA can do to improve your experience. I need your help! In the coming months, I hope to meet and speak with many of you. I look forward to connecting with you and learning more about the intriguing world of insurance brokers. After spending three days with my colleagues, taking in numerous acronyms, abbreviations and program names—CAIB, CPIB, Captus, VOLT, iMIS and many more—I can proudly say that I am as clear as mud. As I begin to climb this sharp learning curve, I am utterly energized by the commitment of my colleagues here at IBAA to you, the brokers. I very much look forward to working with them, learning about the insurance industry and, most importantly, meeting with you and understanding your professional development needs.

36 The Alberta Broker December 2013 - January 2014

It is all about YOU. We are here to help you excel, stay current and promote the broker-distribution channel. The quality of your education matters to us, as does your total learning experience with IBAA. We are committed to bring you the best learning experience for Alberta insurance brokers, diverse as your fields and situations are. We can’t do that without your input. I very much want to hear from you. Call me at 780.702.3718 or send me an email to ddai@ibaa.ca with your suggestions and feedback, or simply to say “Hi.” Let’s tailor your learning experience to fit.

DIANA DAI Director of Professional Development, IB AA ddai@ibaa.ca

IBAA Professional Development Calendar SEMINARS WEBINARS Understanding the Claims Process: The Legal Dimension (a.m.) • Calgary, February 10 • Medicine Hat, February 11 • Red Deer, February 12 • Edmonton, February 13 Social Media and Cyber Liability (p.m.) • Calgary, February 10 • Medicine Hat, February 11 • Red Deer, February 12 • Edmonton, February 13 Bullet-Proof Manager: The Leader’s Mindset/Develop Effective and Devoted Employees • Edmonton, February 11 • Calgary, February 12 Fraud (a.m.) • Calgary, March 18 Directors and Officers Liability (p.m.) • Calgary, March 18 Bullet-Proof Manager: How To Improve Workplace Performance/Increase Accountability and Responsibility • Edmonton, March 25 • Calgary, March 26 E&O Seminar • Edmonton, April 1 • Calgary, April 22 Pigs and Slug Catchers: Oil and Gas Basics • Lloydminster, April 29 Bullet-Proof Manager: Stimulate Strategic Thinking/ Take Your Job Seriously, Take Yourself Lightly • Edmonton, April 29 • Calgary, April 30 Bullet-Proof Manager: Strategies for Dealing with Dissatisfied Customers/Ten Ways To Increase Morale and Motivation • Calgary, May 21 • Edmonton, May 20 Introduction to Commercial Property Wordings • Calgary, June 10 • Red Deer, June 11 • Edmonton, June 12 Bullet-Proof Manager: Conflict Resolution Techniques/Leadership Strategies • Edmonton, June10 • Calgary, June 11 Valuation, Valuation, Valuation (a.m.) • Lethbridge, June 17 • Calgary, June 18 • Red Deer, June 19 • Edmonton, June 20 Making the Puzzle Pieces Fit: Designing Commercial Insurance Programs (p.m.) • Lethbridge, June 17 • Calgary, June 18 • Red Deer, June 19 • Edmonton, June 20

CAIB/CPIB/CCIB/IRM Exam Dates

• February 12 • May 14 • July 9 • September 10 • December 3

LICENSING IMMERSION Level 1: Level 2:

Edmonton: January 6–10; March 3–7; May 26–30 Calgary: January 27–31; April 7–11; June 9–13 Red Deer: July 14–18 Edmonton: February 4–6; April 8–10; June 24–26 Calgary: January 7–9; March 4–6; May 13–15 Red Deer: August 12–14

Understanding Residential Heating Systems Including Wood Heat January 21 January 23 Crime Insurance Policies E & O Webinar January 29, March 12, April 8 CYA and Other Perks of February 6 Commercial Umbrella How To Complete the Commercial Lines Application Part 1 February 13 How To Complete the Commercial Lines Application Part 2 February 20 Introduction to Surety February 18 Personal Umbrella Liability March 11 Insurance Solutions for Residential Condo Unit Owners March 13 An Introduction to Insurance March 20 Brokers, Duty of Care March 27 Liability in the Electronic Age April 3 Bad Faith Issues In Insurance April 24

CAIB IMMERSION CAIB 1 CAIB 2 CAIB 3 CAIB 4

Edmonton, September 22–27 Calgary, October 27–November 1 Edmonton, January 27–31 Calgary, March 24–29

CAIB Fast Track Edmonton & Calgary CAIB 1 CAIB 2 CAIB 3 CAIB 4

January 4, 11, 18, 25 (Exam February 12) April 5, 12, 26, May 3 (Exam May 14) September 6, 13, 20, 27 (Exam October 3) November 1, 8, 15, 22 (Exam December 3)

CAIB Discussion Groups Edmonton CAIB 1 CAIB 2 CAIB 3 CAIB 4

February – April February – April February – April February – April

CERTIFICATION COURSES Best Practices Introduction: Setting the Framework for Change Edmonton, February 25 Best Practices: Sales and Marketing Edmonton, February 26 Best Practices: Human Resources Management Edmonton, February 27 Best Practices: Operations and Financial Management Edmonton, June 3 Best Practices: Action Planning Edmonton, June 4 Professional Selling for Insurance Brokers Calgary: May 13–15 The Alberta Broker December 2013 - January 2014

2013 Southern Alberta Floods: BROKER RESPONSE

Hope for High River By Annette Hubick

Moved by a desire to help flood victims in fellow rural Alberta town High River, Gord Ironside, owner of Ironside Insurance Brokers in Carstairs, spearheaded a town-wide fundraising effort. Building on his own personal and business donation of $5,000, Ironside and others from the local Chamber of Commerce pounded the pavement asking for donations with a goal of raising $50,000. There was a tremendous response from area residents and businesses and on August 27 a cheque for $52,276.30 was presented to High River Mayor Emile Blokland. In addition, Ironside and his wife decided to forego their summer vacation and instead drove their motorhome down to High River so it could be used by displaced residents. Leading the charge to help others is right in the wheelhouse of insurance brokers, especially those in rural Alberta. “We have contact and relationships with many in our community and can have an influence, trust and respect from our community that many other businesses don’t have,” Ironside contends. “I would challenge all rural Alberta Brokers to take these needs to their local businesses and residents, and they would be surprised at what the outcome would be and what their community could do. I have had nothing but great support and appreciation from the community for heading this up.” Ironside, and Carstairs, are not done. “Our community is now collecting Christmas decorations for the High River families, as many residents lost their decorations, which were stored in their basements,” says Ironside. “I toured the town with Emile Blokland,

L to R: Emile Blokland, mayor of High River; Gord Ironside, owner of Ironside Insurance Brokers; Lance Colby, mayor of Carstairs. Photo reprinted with permission from the High River Times.

mayor of High River, for a couple of hours when we presented the cheque and saw the devastation first hand. He stressed that it is after the flood emergency clean up that many of his residents will feel the effect and they fear they will be forgotten. He thought that providing something as little as Christmas decorations will help put some sort of ‘norm’ back in their lives and pick up their spirits.”

38 The Alberta Broker December 2013 - January 2014

If you’d like to share your story about how you were affected by and responded to the 2013 floods, please send an email to albertabroker@linkpr.ca. High resolution photos welcome.