WWW.INSURANCEBUSINESS.CA ISSUE 3.1 | $6.95
TOP TOP BROKERAGES
BROKERAGES What they’re doing right – and what you can learn from them LIGHTS, CAMERA, ACTION THE ADVENTURES OF INSURING THE FILM INDUSTRY
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NATURAL DISASTERS HOW TO PREPARE YOUR CLIENTS – AND YOUR BROKERAGE
TIME TO EVOLVE WHERE THE INSURANCE INDUSTRY NEEDS TO GO NEXT
28/02/2015 1:36:12 AM
Move up to Chubb. Your customers have built a great lifestyle. Entrust us to understand its value. At Chubb, we understand the value of your customers’ lifestyle and offer them a world of superior coverage and services, a place where unfortunate events are met with a surprisingly easy, supportive claims experience. Unlike typical insurance, Chubb is here to help protect your customers’ standard of living, not just their things. With over 85 years of excellence in Canadian customer service, Chubb Personal Insurance offers leading customer experience and smart policies tailored to your customers’ individual needs.
Insure wisely. Live confidently.
chubbinsurance.com
Chubb refers to member insurers of the Chubb Group of Insurance Companies.
IFC.indd 38 Chubb.indd 1 Move up to
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MARCH/APRIL 2015
CONNECT WITH US Got a story, suggestion or just want to find out some more information?
CONTENTS
twitter.com/InsuranceBizCA plus.google.com /+InsurancebusinessCa
UPFRONT
TOP FEATURES
38
FLOODED WITH INTEL
BROKERAGES
COVER STORY
20
TOP 10 BROKERAGES
These 10 Canadian brokerages surpassed all the rest in terms of revenue and growth over the last year
With flood mitigation insurance more important than ever, new technology can help to provide accurate quotes
06 Statistics What are the biggest risks in 2015?
08 Head to head How critical is critical illness insurance?
10 News analysis
12 Intelligence This month’s big movers and shakers
44
14 Technology update How automated client management can drive business growth
FEATURES
MAKE YOUR WEBSITE (RE)DESIGN EASIER
PEOPLE
INDUSTRY ICON
PEOPLE 40 Producer profile Insuring film productions has taken broker Guylaine Déchaine on an incredible career adventure
46 Career path After trying on several careers, Kevin Pfau finally found a home in insurance
Aviva Canada’s president and CEO, Greg Somerville, explains why the insurance industry must evolve – now
2
Secrets of success from the Top 10 Brokerages
Ride-sharing service Uber’s insurance gap
Follow these 5 tips to design a website that draws customers
16
04 Editorial
FEATURES
47
PREPARING FOR THE NEXT BIG SHAKE-UP How to ensure your customers are earthquake-ready
48 Favourite things Dwayne Gagne of Ontario West Insurance Brokers and the Young Brokers Council
INSURANCEBUSINESS.CA CHECK IT OUT ONLINE
www.insurancebusiness.ca
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When the 2nd largest claims event on record hit Canada, CAA Insurance Company was ready. Insurers are at the heart of every community. They bring peace of mind and support when it’s needed most. That’s exactly what CAA Insurance Company did when Ontario was hit with one of the most catastrophic storms in Canadian history—leading to nearly a billion dollars worth of losses.
watch compassion in action>> guidewire.com/CAA
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UPFRONT
EDITORIAL
www.insurancebusiness.ca MARCH/APRIL 2015
The view from the top I
t’s one thing to flourish when the economy is booming and competition is low. It’s quite another to continue to grow in a softening market when your very livelihood is being threatened. Yet that’s just what the country’s top insurance brokerages have done this year. Facing unfavorable rate changes and increased competition from alternate distribution channels, Canada’s best brokerages have nevertheless bucked trends to maintain their spot at the head of the pack. In sifting through the many submissions for this month’s issue honoring the best in the Canadian insurance industry, several common themes emerged that offer keen insight on what it takes to succeed in today’s market. Almost unilaterally, top brokerages say they owe their success to solid customer service. These businesses strike the right balance between embracing the technological developments needed to provide 24/7 customer service and providing real, face-to-face interaction with clients beyond simply assessing their insurance needs. Second, a large number of our top brokerages have achieved their status by
A unique selling point has become crucial to ensuring the survival and the success of an independent brokerage
r
carving out a niche in an over-crowded market. Whether that’s specializing in transportation or servicing the unique needs of seasonal homes on Lake Erie, a unique selling point has become crucial to ensuring the survival and the success of an independent brokerage. The country’s best brokerages also have managed to retain top talent in a time when attracting fresh faces does not happen easily. Brokerages on our list stress that creating a flexible, fun and engaging company culture is paramount. Some have installed pool and ping pong tables in the office; others are experimenting with an open office plan and free-flowing communication between owners and the youngest employees. Finally, nearly every company noted that they do more than provide insurance solutions. By ingraining themselves in the places they do business, the best brokerages in Canada establish themselves as community fixtures that can be relied upon for charitable causes and local activities as well as top-level risk management advice. We hope that reading about these brokerages will underline the attitudes and actions that are needed to truly rise to the top, solidifying the independent distribution channel’s place now and in the future.
The team at Insurance Business Canada
4
www.insurancebusiness.ca
04-05_Editor's page-SUBBED.indd 4
EDITORIAL Editorial Director Vernon Clement Jones Associate Editor Donald Horne
SALES & MARKETING National Account Manager Eric Langille Associate Publisher Trevor Biggs
Writers Caitlin Bronson Tim Garratt Maryvonne Gray Ryan Smith
General Manager, Sales John Mackenzie
Copy Editor Clare Alexander
Project Coordinator Jessica Duce
CONTRIBUTORS
Marketing and Communications Claudine Ting
CORPORATE
Maggie Crowley Philip Kaszuba Nadya Rahim Samantha Tisdel Wright
President & CEO Tim Duce
ART & PRODUCTION
Events and Conference Manager Chris Davis
Office/Traffic Manager Marni Parker
Design Manager Daniel Williams
Chief Information Officer Colin Chan
Designer Joenel Salvador
Human Resources Manager Julia Bookallil
Traffic Manager Kay Valdez
EDITORIAL INQUIRIES vernon.jones@kmimedia.ca
SUBSCRIPTION INQUIRIES tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca
ADVERTISING INQUIRIES trevor.biggs@kmimedia.ca
KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Sydney, Denver, Auckland, Manila
Insurance Business Canada is part of an international family of B2B publications and websites for the insurance industry INSURANCE BUSINESS AUSTRALIA tim.garratt@keymedia.com.au T +61 2 8437 47OO
INSURANCE BUSINESS AMERICA caitlin.bronson@keymedia.com T +1 720 316 0154 Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as IB magazine can accept no responsibility for loss
28/02/2015 1:09:29 AM
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5|D
UPFRONT
STATISTICS
The year ahead As the calendar turns to 2015, we look at some of the biggest risks and rewards facing the insurance industry While the major risks to businesses remain much the same as in 2014, their relative importance reveals much about the ways the world is changing. All-too-frequent breaches of consumer data have catapulted threats like cyber crime to the top of the list, and worldwide disasters like last year’s Ebola outbreak have put the potential for business interruption top of mind. Tellingly, the aging workforce made the Allianz Risk Barometer for the first time this year, debuting at number 7. What does this mean for the insurance industry? The market is ripe for new products and channels that address these growing threats.
TOP 10 RISKS FOR NORTH AMERICA (% of respondents who identified risk)
1 Business interruption and supply chain 55%
2 Natural catastrophes 35%
3 Cyber crime, IT failures, espionage, data breaches
Growing and diminishing risks Cyber crime +14% 2015 rank: 4 2014 rank: 8
Commodity price increases +9% 2015 rank: 9 2014 rank: None
27%
4 Fire/explosion 25%
5 Changes in legislation and regulation
Talent shortage/aging workforce
+1%
2015 rank: 7 2014 rank: 9
30%
Percentage of insurers and reinsurers surveyed by Guy Carpenter who noted undisciplined and unprofitable underwriting as the biggest threat to business growth in 2015
17%
6 Loss of reputation or brand value (e.g., from social media) 16%
7 Talent shortage/aging workforce
Natural catastrophes -28% 2015 rank: 2 2014 rank: 2
10%
8 Intensified competition 10%
9 Commodity price increases 9%
10 Quality deficiencies and serial defects
Loss of reputation -4% 2015 rank: 4 2014 rank: 6
Business interruption -1% 2015 rank: 1 2014 rank: 1
8% Source: Allianz Risk Barometer: Top Business Risks for 2015 Source: Allianz Risk Barometer: Top Business Risks for 2015
6
$4 billion
The insurance losses caused by fire globally in 2013, accounting for eight of the 20 largest non-natural catastrophe claims
Loss of reputation The biggest cause of economic loss from cyber attacks, according to 61% of businesses.
Sources: Allianz Risk Barometer: Top Business Risks for 2015 and Guy Carpenter Top Emerging Risks of 2015
www.insurancebusiness.ca
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Which risks are business least prepared for?
Cyber risk
39%
Business interruption
18%
Natural catastrophes
16%
Biggest emerging risks of 2015 Political social upheaval
7%
Cyber attacks
Climate change
Terrorism
40%
31%
29%
Terrorism
6%
Biggest growth opportunities
Most likely global risks of the next decade
40%
NEW PRODUCTS
> Interstate conflict
23%
NEW GEOGRAPHIC MARKETS
> Extreme weather events
17%
NEW DISTRIBUTION CHANNELS
> Failure of national governments
14%
MERGERS AND ACQUISITIONS 0
10
> State collapse or crisis 20
30
40
50
Source: Guy Carpenter Top Emerging Risks of 2015
> Unemployment and underemployment Source: World Economic Forum: Global Risks 2015
www.insurancebusiness.ca
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28/02/2015 1:10:33 AM
UPFRONT
HEAD TO HEAD
Q:
GOT AN OPINION THAT COUNTS? Email iba@keymedia.com or join the discussion at www.insurancebusiness.ca
Only 16% of Canadians have a critical illness insurance policy – so is it really critical?
Edlyn Bathan
Jerry Curtis
Ken MacCoy
Financial advisor SUNLIFE FINANCIAL
Certified financial planner INVESTIA FINANCIAL SERVICES
Benefits specialist RITEPARTNER FINANCIAL SERVICES
Making prospects buy critical illness insurance uses an emotional selling approach. You have to ask them if they know anyone who had cancer, a heart attack or a stroke, and what the emotional and financial results were. I give examples of true stories of how a lump-sum cheque can support them when they cannot work and the huge help it can be in paying the bills. I stress that critical illness insurance is as important as life insurance to their families. They might not buy, but you can make them [aware] that there is a product out there that covers the gap.
Some risks have such a high probability of occurring that insurance doesn’t work well – the premiums are too high for the potential payout. Dental insurance is one example, and CI is, in my opinion, right up there as well. The risks that best lend themselves to insurance are the rarely occurring high-dollar-loss ones – like one’s home being destroyed by fire or dying early. For someone in their 50s or 60s with a decent level of assets, the premium to buy enough CI to significantly affect their financial situation makes it not a compelling deal.
Anyone who has delivered a CI claim cheque knows the answer – yes. My 52-year-old client, to whom I delivered a $100,000 claim cheque in October, would say yes because it saved his car, home and savings. Statistics support the sale, but emotional stories will close the sale. For those who don’t believe the ‘one in three’ statistic, perhaps peace of mind for their spouse, RRSP or mortgage protection and the retirement savings provided by ROP might help make the sale. Some CI coverage is better than none at all.
CRITICAL ILLNESS – THE FACTS • The average age of people who make a claim on critical illness insurance is 49 • Heart disease, stroke and cancer are the leading health issues facing Canadians today • Approximately 38% of Canadian women and 44% of Canadian men will develop cancer during their lifetimes
• Cancer mortality rates are declining for males at all ages and for females under the age of 70 • More than 70,000 heart attacks happen in Canada each year • The rate of survival among patients hospitalized for a heart attack has increased to 92% • Among those hospitalized for stroke, 80% leave the hospital alive
8 www.insurancebusiness.ca
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25/02/2015 28/02/2015 12:13:17 1:11:01 AM
UPFRONT
NEWS ANALYSIS
What’s driving Uber? As both municipalities and insurers struggle to determine just how to regulate and cover this upstart business, Donald Horne looks at where the ridesharing service fits into the marketplace STIFF FINES, a loss of car insurance – those have been the knee-jerk reactions to Uber, the new ride-sharing service. Hamilton, Ont., told Uber drivers in no uncertain terms that that they risk fines of $5,000 and the loss of their car insurance if they’re caught driving for the service. “We share the opinion of other municipalities that Uber would be operating as a taxicab service,” said Ken Leenderste, Hamilton’s director of licensing, in a statement. “As such, they are required to register with the municipality as a broker and are subject to the same provincial and
UBER – THE DRIVERS New drivers added to Uber monthly
50,000
Uber drivers who work 15 hours or less a week
51%
Drivers who were not driving for a living before Uber
50%
Drivers who are women
14%
Drivers who are over the age of 50
25%
Driver under the age of 30
19%
Source: Digital Marketing Ramblings, January 2015
10
municipal regulations – and penalties – that ensure consumer protection of residents and visitors, and ensure the health and safety of passengers and drivers.” But is this the answer, or should moves be made to create a coverage that would be a better fit for Uber drivers? The ‘insurance gap’ for Uber drivers could be closed with a new personal-commercial auto policy hybrid – a solution that has already gained some momentum in the United States. “The industry knows how to … insure taxis and personal autos – so it is just a matter of who is going to cover what and when,” says Peter Kochenburger, a professor of insurance law at the University of Connecticut School of Law. “This will hopefully be a good news story from an insurance and regulatory perspective.” Uber’s Lauren Altmin has said that “every ride on the UberX platform in Canada is backed by $5 million of contingent auto liability insurance.” However, Kochenburger points out that
there are three periods of potential exposure for an Uber driver – the first when the driver is driving around, hoping to get business, the second when the driver has been contacted and is en route to pick up the passenger, and the third when the driver picks up the passenger and is going to the destination. Uber’s coverage applies during period three, so the current gap in cov-
“You want to be enabling new technologies, not discouraging them. We’re struggling as an industry with tobogganing as a technology yet” Alister Campbell, CEO, The Guarantee Company of North America
www.insurancebusiness.ca
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UBER - THE NUMBERS Uber users worldwide
8 million+ Uber drivers
160,000 Countries that have Uber service
50
Cities that have Uber service
250
Daily Uber trips, on average
1 million
Uber rides in 2014
140 million Amount Uber paid to US drivers in Q4 2014
$650 million
Source: Digital Marketing Ramblings, January 2015
that insurers and brokers need to get up to speed or risk being left behind. “You want to be enabling new technologies, not discouraging them,” says Alister Campbell, CEO of The Guarantee Company of North erage occurs during period two. Although confusion remains as to whether Uber drivers are adequately covered, the industry – at least in the US – is making an effort to meet those needs. To date, at least five insurers have expressed interest in providing insurance; MetLife Auto & Home announced back in May that it was working on coverage for drivers affiliated with Lyft, a similar service. But the generosity shown to the entrepreneurial spirit south of the border isn’t being shared by many cities here in Canada. Calgary has already banned Uber, and Vancouver is considering the same. Montreal mayor Denis Coderre has gone on record saying that he believes UberX is illegal, and bylaw officers in Ottawa have conducted sting operations that resulted in the fining of two UberX drivers. However, in Toronto, new mayor John Tory is supportive of the service, despite the fact that
“The competition of the future for brokers isn’t here today. It may be Google, or whatever comes after that, but there will be a substantive change to how car insurance is sold” George Cooke, president, Martello Associates Consulting his executive director of municipal licensing and standards, Tracey Cook, has blasted Uber as posing “a risk to residents.” “It is time our regulatory system got in line with evolving consumer demands in the 21st century,” Tory told reporters. For those in the insurance industry, Uber is a cautionary tale that change is coming – and
America. Perhaps, for now, the best advice comes from the Insurance Bureau of Canada, which asked brokers to remind clients that personal car insurance “won’t cover them if they’re in a collision or a passenger is injured” – meaning that if they choose to become an Uber driver, they should carry commercial insurance coverage.
www.insurancebusiness.ca
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28/02/2015 1:11:29 AM
UPFRONT
INTELLIGENCE CORPORATE Acquirer
PRODUCTS
Target
Comments
Burns & Wilcox Canada
Avec Insurance Managers
Marine, inland marine and specialty commercial insurer will join independent wholesale broker
XL Group
Catlin Group
The $4.2 billion deal makes XL Group one of the largest insurance and reinsurance players in the world
Cowan Insurance Group
The Williamson Group (TWG)
The takeover by one MGA of another drew praise from the broker channel
Allianz Global Assistance Canada
TIC Travel Insurance Coordinators
The merger has created one of the largest travel insurance providers in the country
Co-operators General Insurance Co.
Bill Hartley Insurance Services
Acquisition will strengthen the Co-operators’ presence on Vancouver Island and grow the agency distribution system in BC
ACE Group
Fireman’s Fund Insurance Company
The sale will give ACE Group the renewal rights, reinsurance of existing liabilities and access to roughly 1,100 agents and brokers
CRU Group
Maltman Group International
Maltman’s services include loss adjusting and claims administration in specialty lines, directors' and officerrs' liability, professional liability, and errors and omissions.
Ageas Group
AIG expands its presence in the UK market with a $293 million acquisition
AIG
Catlin acquisition positions XL Group as global player With the roughly $4.2 billion acquisition of London-based Catlin Group, XL Group stands to position itself as a key player in specialty insurance and rank among the top 10 players in the global reinsurance market. “We are delighted to announce this compelling combination, which positions us strongly to provide more – and even better – answers for the world’s most complex risks while enhancing our opportunities to create value for shareholders and better serve clients and brokers,” said XL Group CEO Mike McGavick. The acqui sition is expected to be scheduled in the second quarter, and the deal complete by mid-2015.
12
>> CREECHURCH has expanded its cyber-privacy coverage. The MGA’s new CyberPlus Plat inum insurance policy offers the broadest coverage with policy limits up to $50 million. Creechurch offers access to the services of CGI, including a 24-hour breach reporting hotline, forensic evidence collection and analysis, investigations and expert testimony. “With the seemingly endless trail of high-profile breaches, an increasing number of Canadian companies are now ready to purchase cyber and privacy insurance,” said Creechurch president Phil Baker. >> THE INSURANCE BROKERS ASSOCIATION OF ONTARIO [IBAO] and e-SignLive by Silanis now have an affinity partnership to offer e-SignLive e-signatures to IBAO members. With this partnership, said IBAO vice president Traci Boland, brokers will benefit from tailored pricing for an electronic signature solution. “Our partnership with e-SignLive is a secure step in the right direction for our industry when it comes to supporting brokers in servicing clients in today’s electronic environment,” Boland said. >> STANTEC, one of Canada’s largest environmental services, engineering and architectural firms, is now providing a nationwide, 24/7 toll-free response number
www.insurancebusiness.ca
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PEOPLE Name
Leaving
Joining
New Position
Siddhartha Chopra
BMO
RSA
Senior VP of operations and COO
David McNamara
N/A
Cowan Insurance Group
Branch manager, brokerage division, Ottawa office
Spencer Bailey
N/A
Crawford & Company
Property and casualty supervisor, Toronto West
Deborah Mannisto
N/A
Crawford & Company
Branch manager, Thunder Bay
Bob Fitzgerald
ClaimsPro
SCM Insurance Services
CEO
John Tung
Creechurch International Underwriters
CNA Canada
Assistant VP of technology and professional liability
CNA APPOINTS TUNG FOR CYBER ROLE
(866-569-6577) for the insurance industry. “In over 30 years of work with national insurance companies, we’ve come to understand that rapid access to support a claim is a defining factor in the quality of service our clients receive,” said Robert Smith, Stantec’s director of insurance sector services. >> CNA NORTH AMERICA is now offering specialty products in Canada, including coverage options for healthcare, D&O liability, technology and telecommunications liability, and employment practices liability, among others. “This announcement represents our overall strategy to serve the unique and expanding needs of multinational customers,” said John Hennessy, president and COO of CNA Canada. >> VERISK has introduced a new product intended to streamline the commercial auto pricing and underwriting process. Verisk Commercial Auto Prefill auto-populates information relating to vehicles registered to a business or business owner with the input of the business name and address. Agents and underwriters will no longer have to manually input vehicle attributes like year, make, model, new cost and registered owner, which will greatly reduce the number of keystrokes expended in processing commercial auto insurance applications.
CNA has announced the appointment of John Tung to assistant vice president, technology and professional liability for CNA Canada. Tung will assume responsibility for the strategy and underwriting of professional liability and cyber, with a focus on technology. He also will have oversight of the miscellaneous professional liability product offering. Tung comes to this job with more than 20 years of experience, including 15 years of information technology underwriting with Creechurch International Underwriters. During that time, he managed the overall risk profile of the information technology errors and omissions and commercial general liability lines of business.
RSA BRINGS ON NEW SVP OF OPERATIONS RSA, Canada’s third largest P&C insurer, has appointed Siddhartha (Sid) Chopra as senior vice president of operations and COO. He will be responsible for building RSA Canada’s first Operational Centre of Excellence. Chopra will also lead the operations team tasked with developing and driving operational excellence for brokers and customers. “Sid’s appointment, together with the creation of an Operational Centre of Excellence, demonstrates our dedication to becoming the best insurance provider in Canada and delivering the best possible service for our brokers and customers,” said RSA president and CEO Rowan Saunders.
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UPFRONT
TECHNOLOGY UPDATE NEWS BRIEFS client will be more willing to answer and engage, Kelly adds.
Sharp app can cut calls by 27% Sharp Mobile is now offering brokerages across Canada a subscription to its mobile app and web portal, with the promise to reduce incoming customer-service calls by 27%. Founder Sherif Gemayel explains that brokerages can use the app and portal to cut down on incoming transaction calls and instead focus more on developing their book of business (see more at right). “If a client needs a copy of their pink card, they have to call or email a broker to get a copy, or call to get payment information or policy details,” Gemayel explains. “Once the app is downloaded, the client can do all of the above with just two or three taps of their finger.”
Applied Systems announces expanded big data application Applied Systems has introduced an updated and expanded version of Applied Performance Management, a software program that aims to give agencies “data-driven business insights for analysis and tracking,” to US and Canadian markets. Applied PerformanceManagement 2014 R2 was built based on feedback regarding the original product from agency owners. The program accesses information from a group’s agency management system and allows executives to manipulate and work with the data to learn more about their client base, their carrier partners and their own employees.
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The Bank of Canada’s decision to lower its key interest rate early this year took the entire real estate industry by surprise, but some experts don’t believe it’ll be the last or the deepest cut to come CJ NOLAN, vice president of sales and business development at Munn Insurance in St John’s, NL, has certainly played his part in bringing the brokerage into the 21st century. Currently, Munn’s major initiative is deploying Applied’s Epic system to allow online quoting for the company’s 33,000 clients. Epic provides a single, integrated system for agencies and
Splice aims to sidestep auto fraud The technology is here to take clients step-by-step from an accident scene to the auto body shop – and it promises to remove the fraud that has plagued the auto insurance sector. Software manufacturer Splice has leveraged telematics technology to direct insurance claims recipients to certified auto repair shops in their region, streamlining a traditionally traumatic customer journey and ensuring only approved shops are used. “It is set up to create outbound audio or text, and will identify itself as your company to the client,” says Splice CEO Tara Kelly. By ensuring that the Caller ID as well as the messaging is 100% personalized and real-time accurate, the
NL brokerage using technology to grow business
Adapt quickly to ‘disruptive’ technology, say CEOs Technology is changing how people buy their insurance, and the industry is at risk of being left behind if it doesn’t adapt quickly to ‘disruption,’ a panel of CEOs warned in January. Representatives from several major insurers discussed the industry’s biggest challenges, including usage-based insurance telematics, driverless cars and companies like Uber. The speed of change and the risk of becoming obsolete should be taken seriously by the insurance industry, panelists warned, citing the example of the demise of Blockbuster and the rise of Netflix.
EPIC BENEFITS Should your brokerage consider adopting a ways the software helps to streamline processes: Manages benefits and P&C business within a single application Accesses information faster and track all customer contact Automates auditing and configure workflows
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For more technology news as it happens, visit www.insurancebusiness.ca
brokerages to efficiently manage all their customer relationships, policy administration and accounting. The system’s unique software architecture provides scalability for agencies and brokerages with multiple, global locations to manage expansion and business growth more easily, and seamlessly integrates with other Applied applications. Through an intuitive user interface, brokers can view client information and internal operations to make more informed decisions and capitalize quickly on new opportunities. Epic is still a few months away from full deployment, but Nolan expects the agency management system to cut down on overhead costs and improve efficiency. And it’s not the only way Munn is leveraging technology. “We are still a two-tiered brokerage here, but we have moved from radio and TV ads to digital online marketing,” he says. “Now everything is search engine optimization. You want to be among the first five on that search page. The days of people looking you up in the Yellow Pages are gone.” He also manages to balance in-person relationships with the expanding definition of community, facilitated by social media and technology-enhanced communication. “Our clients have very personable relationships with our representatives – a situation bolstered by the fact that we have offices close to where they live,” Nolan says. “Further information is gained through satisfaction surveys conducted as part of each claim process, online feedback forms, social media feedback, and yearly marketing studies designed to measure consumer opinion and expectations.”
Q&A: Mobile app technology IBC: What prompted Sharp Insurance’s decision to utilize mobile apps? SHERIF GEMAYEL President Sharp Insurance
Sherif Gemayel: We developed our first app for our clients back in 2010. We were still a relatively new brokerage … It was three years after the iPhone first launched, and the app stores were becoming very popular, and we thought we should probably do something for insurance. We went and built the first Sharp app, and it was kind of cool. Clients were liking it … and then we realized, ‘Wow! We could be onto something here.’ So we started developing it a lot more into the current form … which we believe is the most advanced mobile app in the market right now.
IBC: What are the most significant benefits of your recently launched iMobileBroker app? SG: We believe that insurance is now moving to a point where it’s satisfying the ‘me now’ attitude with consumers. The liability card is mobile on [a client’s] phone. While it’s not yet legal, we’re working with the government to make it legal for clients to be able to show their liability cards. It’s actually already legal at registries, so people can register their vehicles using the digital pink cards that we use on the phone. Also, [clients are] able to go on and see, ‘When’s my next payment?’ ‘What’s the coverage that I have on my policy?’ So even if a client changes a vehicle today, the next day, they’ve got an updated liability card on their app and all the updated coverage, including payments and everything.
IBC: Do you think apps like iMobileBroker have the potential to significantly alter the way brokers do business? SG: It has for us … it actually reduced the number of calls into our brokerage by 27%. For us, it’s allowed our brokers to spend more time selling and growing our business versus servicing our clients.
IBC: What sort of interest in the app have you seen so far? management system like Epic? Here are some of the Customizes invoices, statements and reporting Offers access to a policy summary comparison tool Tightens security for sensitive data Manages data for increased risk control
SG: We’ve had about 3,000 downloads of the app. The whole idea is let the clients serve themselves when they want to. They don’t really like to talk to brokers – let’s be honest. We’re not the most popular folk out there!
IBC: What else do you see this kind of technology offering to insurance industry professionals? SG: We see a lot. In fact, we have numerous new features that we’re developing using mobile technology that have the potential to really change the game. And I think that’s what differentiates Sharp from other brokers. You have your technology companies that are out in the market to service brokers, and then you have brokers who are consuming that technology. But they’re typically ‘off-the-shelf’ products. What we’ve done is, we’re the broker who designed it for the brokers. We know what the consumer wants. We live it, we eat it, we breathe it every day. So we’re constantly developing the app to satisfy the needs of the consumer right from within.
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PEOPLE
INDUSTRY ICON
ROLLING WITH THE CHANGES Aviva Canada president and CEO Greg Somerville says the insurance industry must evolve to meet new regulations and customer expectations – or get left behind THE INSURANCE INDUSTRY is constantly evolving – and those who don’t evolve with it run the risk of being left behind, says Greg Somerville. Somerville, the president and CEO of Aviva Canada, has witnessed that evolution as changing customer expectations – on top of catastrophic weather events – have pushed the Canadian insurance industry to innovate.
bution through independent brokers, and I continue to be impressed with the entrepreneurial spirit of the broker channel in the context of the need to evolve,” Somerville says. “We’re constantly engaged with the entrepreneurial, forward-looking brokers who are looking to evolve their business model to meet the changing demands of consumers. I find it exciting, and it gives me reason to be
Customer preferences The way customers buy insurance products is changing. “We’ve been saying for some time at Aviva that it’s not necessarily a question of direct versus broker distribution, but rather a question of distribution to meet the needs of customers,” Somerville says. Customer preference, he says, should drive how products are delivered and serviced, and a company’s focus should be on providing customers with an easy way to do business, keeping self-service options and price-sensitive solutions available – regardless of how customers choose to buy insurance products. “Continually evolving customer preference solutions will always be a theme for Aviva,” he says. Changing customer expectations don’t just mean evolution for providers, though. Brokers, too, need to constantly assess how well they’re providing service to their customers – and adapt their approach to meet changing customer needs. “Our company is largely focused on distri-
Weather challenges The 2013 floods in Alberta and Toronto were the first and third largest CAT loss events in Canadian insurance industry history. All told, insurers paid out $3.2 billion in weather-related claims that year. The Toronto flood alone cost insurers nearly $1 billion – as much as they’d paid for water-related damage across the entire country in each of the previous four years. “2013 was the year of the catastrophe with the floods in Toronto and Alberta, followed by months of relentless winter,” Somerville says. “In 2014, it [was] more a story of frequency of weather than catastrophe. It created some challenges.” It’s also served as a wake-up call to insurers. “What is the new normal is the question,” Somerville says. “We’re reflecting on the last two years as we look forward and plan for the next two or three years. What can we expect from weather, both from a frequency and severity perspective? That’s caused us to rethink our assumptions about weather.”
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Reducing rates responsibly In August 2013, the government mandated a 15% reduction in auto insurance premiums. The Ontario government had established interim goals of lowering premiums by 8% in one year and 7% the following year. The dead-
FAST FACTS ON AVIVA Longevity: Aviva has been in business since 1835. A winning team: Aviva Canada boasts more than 3,000 employees in more than 25 locations, and serves 17,000 broker partners and 3 million customers. Satisfaction guaranteed: Aviva guarantees its customers will be satisfied with their claims service, and boasts a claims service satisfaction rate of 93%. Worldwide: Aviva Canada is part of Aviva plc, one of the world’s leading insurers, serving 31 million people in 17 countries. Giving back: Aviva Canada and its employees are committed to helping homeless and other at-risk youth reach their potential, investing in their future through the $1 million Aviva Community Fund, Eva’s Initiatives, YouthLink, United Way and other community groups.
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“We’re constantly engaged with the entrepreneurial, forward-looking brokers ... I find it exciting, and it gives me reason to be optimistic about the future of that distribution channel”
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PEOPLE
INDUSTRY ICON
“We’re going to get behind a campaign that tries to raise awareness of distracted driving as a risk that’s unacceptable. Wouldn’t it be great if distracted driving was deemed as socially unacceptable as drinking and driving?” line for that final rate reduction will hit in August. If rates aren’t reduced in a responsible fashion, there is a risk that some insurers may exit certain segments of the industry, leaving customers stranded – or at the very least, with access to fewer coverage options. The rate-reduction goal was helped along by the passage of Bill 15 in November 2014, which lowered prejudgment interest rates, called for a more efficient dispute resolution
system for auto insurance and took steps to combat fraud in the towing and vehicle-storage industries; however, the old concerns are still very much present. In Somerville’s view, more needs to be done if the industry is to hit the target set by the government. “We need to see some urgency,” he says. “We need some reforms that are bolder in nature to allow us – in a responsible way – to keep premiums down without creating any risk around availability.”
Aviva’s future So what’s ahead in 2015 for Aviva? One of the company’s big pushes will be to raise awareness of the dangers of distracted driving, a problem that Somerville says “deeply concerns” Aviva from several perspectives. “The obvious one is cell phone usage and texting, but there are a lot of things people are doing behind the wheel that they shouldn’t be,” he says. “We’re going to get behind a campaign that tries to raise awareness of distracted driving as a risk that’s unacceptable. Wouldn’t it be great if distracted driving was deemed as socially unacceptable as drinking and driving?” In the US, 10 teenagers die every day while texting and driving – and the issue is claiming Canadian lives as well. “And who knows what’s not being accounted for? How many of these accidents are happening that they aren’t able to link to distracted driving?” Somerville says. “Those numbers could be higher. It’s alarming enough that we think it should be talked about, and we will in 2015.”
GREG SOMERVILLE’S LIFE IN INSURANCE
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Greg Somerville has extensive experience in property and casualty insurance and claims management. Prior to joining Aviva Canada in 1997, he was vice president of claims for General Accident, one of Aviva’s predecessor companies. IBC sat down with Somerville to ask him about his time at Aviva, the importance of insurance to its customers and the secret to success in the industry.
or an intrusion onto their property as a result of theft or burglary. These are traumatic experiences, and the compassion and empathy – not to mention the compensation – we deliver are critically important to Canadians. That’s a big theme that continues at Aviva – the focus on the customer and delivering solutions at that moment of truth when they need to call on the insurance product to respond.”
ON HIS CAREER AT AVIVA “I’ve been at Aviva or the legacy companies since 1991 and [have] held various positions in the organization. The majority of my career was spent in claims, and that was a tremendous exposure for me to the great things this industry does to help people in times of need – whether it be a weather event, a car accident
ON THE IMPORTANCE OF INSURANCE “I think the work we do in the insurance industry is meaningful and important work. We often don’t celebrate it enough. We have opportunities like during the Toronto and Alberta floods to celebrate the wonderful things we do to help people in their time of need. Those two events were in the top three largest catastrophes in
Canadian history – and we had them both in one year. I think the industry did a pretty good job of looking after the needs of consumers. ON SUCCESS “Success from the general insurance perspective really hasn’t changed a lot over the years. It’s about the execution of fundamentals: pricing, underwriting, risk selection, distribution management, claims and expense management. What’s changing is how you go about delivering them. I’d make a similar comment around the broker distribution channel. The foundational elements of the broker distribution channel and the value proposition to consumers of advice, choice and advocacy really don’t change. But how brokers go about delivering those propositions will change – has to change.”
www.insurancebusiness.ca
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FEATURES
COVER STORY
TOP TOP BROKERAGES
BROKERAGES Insurance Business Canada ranks brokerages to find the top performers in the country
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TOP TOP BROKERAGES BROKERAGES
WELCOME TO THE 2015 Insurance Business Canada Top 10 Brokerages special report. After seeking out, receiving and vetting nominations from brokerages across the country, our research has identified the companies worthy of the title of Canada’s top brokerages. But when it comes to deciding who gets the top spot, it’s not just about the biggest gross written premium. Our unique ‘handicap’ methodology means we place brokers large and small on a level playing field to find the country’s best performers. Think your firm belongs among on our distinguished list? Make sure your brokerage is nominated for next year’s rankings! We appreciate the effort of brokerages that put themselves forward through this year’s process, and we hope readers enjoy the insight provided by our top honourees.
TOP 10 BROKERAGES
The methodology The Insurance Business Canada ranking system is an objective means of ranking the best-performing insurance brokerages. Each brokerage that was nominated was required to supply its own details to Insurance Business Canada to be eligible. In total, there were 13 criteria: • Revenue (2014) • Revenue growth (2014 vs 2013, as a %) • Revenue from new policies written in 2014 • Revenue per broker (2014) • New revenue per broker (2014) • Brokers (end of 2014) • New brokers (brought on during 2014, as % of total) • Clients (end of 2014) • Client growth (total clients at end 2014 vs end 2013, as a %) • New clients (brought on in 2014) • New clients per broker (2014) • Policies written (2014) • Policy growth (policies written in 2014 vs 2013, as a %) Each brokerage was ranked by each of these criteria, and the sums of all their rankings were added together. The brokerages were then placed in order of who had the lowest overall score (think of it like a golf score – higher rankings in each section means you have a lower overall score). By ensuring that the majority of the criteria used rewarded business per broker rather than just critical mass, and that metrics like revenue increases were expressed as percentages of total business, the very best-performing brokerages were rewarded, rather than just those producing large amounts of business.
1
Sharp Insurance
2
Mitchell & Whale
3
Jones DesLauriers Insurance Management
3
Rogers Insurance
Composite score:
(TIE)
(TIE)
Composite score:
Composite score:
Composite score:
62 63
69 69
4 My Insurance70Broker Composite score:
5
KTX Insurance Brokers Composite score:
88
Group 6 Cowan Insurance 89 Composite score:
7 8
Highcourt Partners Composite score:
95
Best Buy Insurance Brokerage Composite score:
96
9 107 10 Bryson & Associates 112
C.M. Steele Insurance Brokers Composite score:
Composite score:
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FEATURES
COVER STORY Which brokerages fared best for each criteria? IN ADDITION TO our overall rankings, we also calculated the top five brokerages for each criteria. For some criteria (such as total revenue), larger firms naturally rose to the top. However, we didnâ&#x20AC;&#x2122;t want larger firms to dominate the competition merely through sheer size. So for other criteria, we ranked brokerages on a sliding scale to allow smaller firms to shine as well. For criteria like revenue per broker and total number of policies, for instance, brokerageâ&#x20AC;&#x2122;s numbers were ranked as a percentage of total business.
In that way, brokerages were ranked on a level playing field regardless of their size. So while large powerhouse brokerages like Jones DesLauriers Insurance Management and Cowan Insurance Group were always going to come out on the top of the heap for absolute criteria like total revenue and number of brokers, smaller firms like Mitchell & Whale and C.M. Steele were able to top the list for other criteria like percentage client growth and revenue per broker.
TOP 5 RANKINGS REVENUE Top 5 average: $24.5 million 1 Jones DesLauriers Insurance Management 2 Rogers Insurance 3 Cowan Insurance Group 4 My Insurance Broker 5 Mitchell & Whale
REVENUE GROWTH Top 5 average: 35.7% 1 Sharp Insurance 2 My Insurance Broker 3 Best Buy Insurance Brokerage 4 Mitchell & Whale 5 Highcourt Partners
REVENUE FROM NEW POLICIES Top 5 average: $4.5 million
1 Mitchell & Whale 2 My Insurance Broker 3 Highcourt Partners 4 Bryson & Associates 5 Rogers Insurance
BROKERS Top 5 average: 100 1 Jones DesLauriers Insurance Management 2 Cowan Insurance Group 3 Rogers Insurance 4 My Insurance Broker 5 Sharp Insurance
NEW BROKERS Top 5 average: 74.5%
1 My Insurance Broker 2 Rogers Insurance 3 Jones DesLauriers Insurance Management 4 Mitchell & Whale 5 Cowan Insurance Group
1 Mitchell & Whale 2 Sharp Insurance 3 C.M. Steele Insurance Brokers 4 My Insurance Broker 5 Highcourt Partners
REVENUE PER BROKER Top 5 average: $626,070
CLIENTS Top 5 average: 24,793
1 C.M. Steele Insurance Brokers 2 Jones-Dooley Insurance Brokers 3 Bryson & Associates 4 Rogers Insurance 5 Mitchell & Whale
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NEW REVENUE PER BROKER Top 5 average: $112,698
1 Cowan Insurance Group 2 Jones DesLauriers Insurance Management 3 Rogers Insurance 4 KTX Insurance Brokers 5 Sharp Insurance
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TOP TOP BROKERAGES BROKERAGES
TOP 5 RANKINGS (CONT.) CLIENT GROWTH Top 5 average: 34% 1 Sharp Insurance 2 Mitchel & Whale 3 Jones DesLauriers Insurance Management 4 KTX Insurance Brokers 5 Best Buy Insurance Brokerage
NEW CLIENTS Top 5 average: 5,395 1 Jones DesLauriers Insurance Management 2 Cowan Insurance Group 3 Sharp Insurance
4 KTX Insurance Brokers 5 Rogers Insurance
NEW CLIENTS PER BROKER Top 5 average: 116 1 Highcourt Partners 2 KTX Insurance Brokers 3 Sharp Insurance 4 Jones-Dooley Insurance Brokers 5 C.M. Steele Insurance Brokers
2 Rogers Insurance 3 Jones DesLauriers Insurance Management 4 Sharp Insurance 5 Best Buy Insurance Brokerage
POLICY GROWTH Top 5 average: 32.3% 1 Sharp Insurance 2 Mitchell & Whale 3 My Insurance Broker 4 Highcourt Partners 5 Best Buy Insurance Brokerage
POLICIES WRITTEN Top 5 average: 33,662 1 Cowan Insurance Group
Open minds. Better solutions. At Sovereign General, we believe that open minds create better solutions. Operating as an established ‘A’ rated Canadian Insurer, our experienced Equipment Breakdown professionals are empowered to create innovative solutions to support your specialized insurance needs. So next time you’re facing a complex challenge, our knowledgeable team is committed to solving it. Rest assured your client’s policy will be underwritten with an open mind. sovereigngeneral.com
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FEATURES
COVER STORY
10 BRYSON & ASSOCIATES BROKERAGES TOP TOP
BROKERAGES
TRACY MAKRIS, PRESIDENT
FAST FACTS Head office: Ajax, Ont., with a branch office opening in Brooklin, Ont., in July Founded: 1980 Brokers: 32 staff in total – 28 RIBO-licensed (8 of which are producers), 4 administration Specialties: Commercial fleet insurance Website: www.brysoninsurance.ca
What sets your firm apart from others? Our amazing team and our collaboration as a unit to continuously focus on our goals. A continuous vision into the future, not allowing room for complacency. We don’t just think outside the box – we replace the box! Name five factors about your business that have helped you succeed: • Clear and transparent short- and longterm growth targets established and communicated to the entire team • Attracting and retaining talented team members • Persistent focus and discipline • Taking a customer-centric approach to brokering by understanding ways beyond brokering that we can deliver value • Creating and upholding a culture that begins internally and extends to our clients What kinds of coverage have contributed the most to your firm’s success?
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The kind the customer needs. True risk analy sis and understanding our clients’ needs drives the answer to the question. What’s the most important thing brokers can do to develop their business? Focus on their existing portfolio, round out accounts – there are so many new offerings in the marketplace, I think brokers forget to look in their own backyard. How does your firm retain top talent?
Respect is always at the forefront. We conduct team-building activities, keeping everyone engaged. We recognize and promote key performers. What’s next for your brokerage? We’re opening a branch office in Brooklin, Ont., in July 2015. This will provide us with community representation in a great demographic area. We will focus on our niche, which is the transportation industry, at head office. We will continue to research new technology that enters the marketplace that can assist our customers with risk and operational costs.
“There are so many new offerings in the marketplace, I think brokers forget to look in their own backyard”
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WE KNOW
CONTRACT SURETY
TOP TOP BROKERAGES BROKERAGES
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FEATURES
COVER STORY
9 C.M. STEELE INSURANCE BROKERAGES BROKERS TOP TOP
BROKERAGES
WILLIAM C. STEELE, PRESIDENT
FAST FACTS Head office: Port Colborne, Ont. Founded: 1898 Brokers: 8 Specialties: Personal lines with a small commercial book of business, as well as a specialized seasonal package Website: www.cmsteeleinsurance.ca What sets your firm apart from others? I believe our family’s long standing in the community and our volunteer work sets us apart from our competition. … C.M. Steele Insurance Brokers has supported many organizations financially over the years. We are very proud of our achievements within the community, and this has helped us in our business as well. Name five factors about your business that have helped you succeed: • Personal service to our clients • Answering phone calls right away • Giving good advice in preparing our clients’ insurance needs • Keeping up with technology • Supporting our community What kinds of coverage have contributed most to your firm’s success? Personal lines is our forte; we have very good insurers who offer the products our clients look for at reasonable prices. Seasonal dwelling insurance also has been popular with our clients, and we have seen a tremendous growth in this area due to our location on Lake Erie. Special vehicle insurance also has been good to our
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office, as we sell a large volume of antique and classic vehicle, motorcycle, vacation trailer and boat insurance. What’s the most important thing brokers can do to develop their business? Be seen in the community, whether it is at a social function, a fundraiser or helping local charities – people like to know the companies they deal with are involved in their community. Word of mouth is the best salesman – treat your clients with respect and give them great service, and they will tell their family and friends, and your business will grow. How does your firm retain top talent? We hire locally, and having five generations of the Steele family associated with the firm helps. We keep our staff up to date on all our company products, as well as continuing education. But treating staff professionally and the way we would want to be treated has been very good to us.
What’s next for your brokerage? We recently opened an office in Stoney Creek with Eric Pienkosz, whom I met during an insurance licensing course. Eric just completed his CIP, and we know he will carry on the C.M. Steele tradition of great service to our clients. We are always on the lookout for opportunities that will help our brokerage grow, whether through special products or acquisitions. C.M. Steele Insurance will continue to look at our past, which enabled us to get to where we can look toward a successful future with our customers and partners.
“We are very proud of our achievements within the community, and this has helped us in our business as well”
www.insurancebusiness.ca
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TOP TOP
property
|
auto
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business
BROKERAGES BROKERAGES
Because their story is ours too. When our policyholders feel good about their claims experience, so do we. That’s why we’re committed to providing quick, reliable and caring service, earning a reputation our broker partners have counted on since 1871. Watch real claims journeys at economicalinsurance.com/stories
The Economical brand includes the following property and casualty insurance companies: Economical Mutual Insurance Company, Perth Insurance Company, Waterloo Insurance Company, The Missisquoi Insurance Company, Federation Insurance Company of Canada. ©2015 Economical Insurance. All rights reserved. Economical® and related trademarks, names and logos are the property of Economical Mutual Insurance Company and are registered and/or used in Canada. All other trademarks are the property of their respective owners.
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FEATURES
COVER STORY
8 BEST BUY INSURANCE BROKERAGES BROKERAGE TOP TOP
BROKERAGES
GILLIAN VAN KEMPEN, MANAGING DIRECTOR
FAST FACTS Head office: Ajax, Ont. Founded: The roots of the family business date back to 1946. Managing director Gillian Van Kempen is the fourth generation (and the first woman) to head the business, which became Best Buy Insurance in 2005. Brokers: 17 Specialties: Commercial lines products, both domestic and international, and a wide range of personal lines Website: www.bestbuyinsurance.ca
What sets your firm apart from others? We pride ourselves on providing a combination of good old-fashioned customer service with modern technological conveniences to provide the best of both worlds. Our personalized service means we can offer mid-sized businesses a value-added experience – much more so than the larger national brokerages. Name five factors about your business that have helped you succeed: • Our generations of expertise give us an advantage in providing innovative solutions for customers who require customized or unique coverage. • Our client base is largely based on referrals from existing clients who have been with us for years – some for generations. • We take pride in the services we provide. We’ve been doing this for four generations – that’s a very definitive commitment to this industry!
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• We place an emphasis on having qualified staff, who are constantly being trained on new products and who are encouraged to continue their education and training through pursuit of professional designations. • Our office has no geographical boundaries – we have insured Canadian clients in the US, South America, Africa, Europe, the UK, China and Indonesia. The world is our marketplace. What kinds of coverage have contributed the most to your firm’s success? Customized and unique coverages for commercial clients who don’t fit in a specific insurance ‘box’ or packaged policy. What’s the most important thing brokers can do to develop their business? Know and educate your clients. Take the time to explain the policy to them and make sure you understand what’s important to the customer. How does your firm retain top talent? It’s a challenge at times, but we work hard to make sure we offer a pleasant work environment that appeals to and compliments the staff ’s needs. The bulk of our staff works close to the office and enjoys a better quality of life thanks to a shorter commute time that allows for more time with their family. What’s next for your brokerage? Onward and upward! We are looking for new ways to offer our services in the way that dif-
ferent customers expect – whatever form that takes. We are working on some new and innovative products for both commercial and personal lines clients. Our mission is, as our name suggests, to provide the ‘best buy’ for the client’s dollar.
“Know and educate your clients. Take the time to explain the policy to them, and make sure you understand what’s important to the customer”
www.insurancebusiness.ca
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28/02/2015 1:20:25 AM
TOP TOP BROKERAGES BROKERAGES
TOP BROKERAGES
7 HIGHCOURT PARTNERS DAVID GARLAND, CFO, AND MARK R. MCKAY, CEO
FAST FACTS Head office: Toronto Founded: 2011 Brokers: 16 Specialties: Commercial/industrial, international, private client, equine, revenue insurance products, professional indemnity, captive consulting and formation, and risk/ insurance consulting Website: www.highcourtpartners.com
What sets your firm apart from others? We have a unique discipline and singular client focus that is guided by a vision and driven by a mission. Name five factors about your business that have helped you succeed: • Strategic planning • Global footprint • Great people • Driven culture • Supportive clients What kinds of coverage have contributed the most to your firm’s success? Tough US products liability, Lloyd’s binding authorities, specialty clinical trials and governance products. What’s the most important thing brokers can do to develop their business?
• Demonstrate value • Create predictable outcomes • Walk away from price • Leverage technology that solves business problems • Unique market positioning How does your firm retain top talent? • Casual yet driven environment with public accountability • Opportunity to travel around the world • Educate, educate and educate • Technology empowerment and investment
“We have a unique discipline and singular client focus that is guided by a vision and driven by a mission”
What’s next for your brokerage? • US entry • Strategic hiring and presence in two more Canadian cities • Capital markets entry • Reinsurance
www.insurancebusiness.ca
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28/02/2015 1:20:35 AM
FEATURES
COVER STORY
6 COWAN INSURANCE GROUP BROKERAGES TOP TOP
BROKERAGES
HEATHER MCLACHLIN, PRESIDENT
FAST FACTS Head office: Cambridge, Ont. Founded: 1927 Brokers: 160 Specialties: Represents leading national and international insurance companies in order to provide the best balance of coverage, risk management services and specialized expertise available Website: www.cowangroup.ca What sets your firm apart from others? We listen to our clients’ needs and provide thought leadership – asking the questions that clients themselves do not know they need to ask, and then suggesting innovative products and services that clients can understand and that meet personal and business needs. Name five factors about your business that have helped you succeed: • Our segmentation strategy identifies key market segments in which we have a strong existing core base of business and see solid opportunity for strategic growth. • For Cowan, our work is not done unless it is done right. Delivering our best every day is embedded in our culture. • We truly belong to the communities we do business in. Many of our employees are active participants in improving the lives of people who live and work in our communities through charitable involvement. • We hire and retain the best. Most organizations say that, but we practice it. We have earned Canada’s Best Managed Companies designation for two years in a row as a result of our employees’ commitment to
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common goals, and consistently attain high levels of employee engagement in our annual employee survey. • We are an ethically strong company. We practice what we preach. We are as forthright with our carriers as we are with our clients. And that pays dividends in the end, as we build trusted status with our suppliers and customers. What kinds of coverage have contributed the most to your firm’s success? There is no one specific product that has contributed most to our success. We can and do conduct business with a vast array of clients. What’s the most important thing brokers can do to develop their business? Being responsive to our clients – understanding what keeps them awake at night – is how we continue to develop. … We believe that we are only in a position to provide sound advice when we fully understand a client’s risks and
can offer sound risk mitigation, benefits or retirement solutions. How does your firm retain top talent? Our people strategy is based on a high performance model that links total rewards to employee contributions. We engage our employees through our Individual Performance Plans (IPPs); those with upward potential are given stretch assignments, special project work and/ or exposure to other lines of business. What’s next for your brokerage? Organic growth has been a cornerstone of our success over the course of our 85-year history. For Cowan, future acquisition will be predicated on cultural fit – just like the recent addition of The Williamson Group to our company. They share the same entrepreneurial spirit and the never-ending pursuit of excellence that Cowan does. We are proud to have them as part of the team, as collectively we focus on strategic growth aligned with the goals of our clients and business partners.
“Delivering our best every day is embedded in our culture”
www.insurancebusiness.ca
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28/02/2015 1:20:41 AM
TOP TOP BROKERAGES BROKERAGES
5 KTX INSURANCE BROKERS BROKERAGES TOP TOP
BROKERAGES
SEAN GRAHAM, PRINCIPAL BROKER
FAST FACTS Head office: Toronto Founded: 2002 Brokers: 25 Specialties: Online insurance Website: www.ktxinsurancebrokers.ca What sets your firm apart from others? We are Canada’s first and leading online insurance brokerage. Name five factors about your business that have helped you succeed: • Being a part of the Kanetix family of companies, we have access to a large number of online consumers looking to shop their auto insurance. • Being an innovator in our industry. Our technology and workflows allow us to be very efficient. • Our culture. Our brokerage has an openconcept, casual work environment that is rather unique to our industry. • Our people. We have had great success hiring mostly young, new entrants to our industry and teaching them our ways. Our relationship with Mohawk College’s insurance program has allowed us to hire amazing grad students. • Our focus on quality control and underwriting has allowed us to grow quickly and profitably. Our partners love us, as evidenced by our recent insurer survey, which gave us a 94% rating. What kinds of coverage have contributed the most to your firm’s success?
Personal auto is our bread and butter, but small commercial online is growing quickly. What’s the most important thing brokers can do to develop their business? Become customer-centric. Listen to what your clients are asking for in terms of price, coverage, service and the method in which they want to interact. Deliver on not one of those, but all of them. How does your firm retain top talent? Our culture makes KTX a fun place to work. We have pool tables, ping pong, video games and encourage our staff to get involved not only in social events but in feedback sessions, which strive to make our company a better place to work and play.
What’s next for your brokerage? Nothing less than trying to revolutionize the way insurance is purchased in Canada. We want to redefine what it means to be an insurance broker.
“Listen to what your clients are asking for in terms of price, coverage, service and the method in which they want to interact. Deliver on not one of those, but all of them” www.insurancebusiness.ca
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28/02/2015 1:20:49 AM
FEATURES
COVER STORY
4 MY INSURANCE BROKER BROKERAGES TOP TOP
BROKERAGES
RISHI JAITLEY, DIRECTOR OF SALES
FAST FACTS Head office: Richmond Hill, Ont. Founded: 2008 Brokers: 52 Specialties: Property and casualty, primarily for homeowners, with growth of approximately 50% in commercial lines since 2013. Also services clients’ life, disability and other financial needs through life line product offerings Website: www.myinsurancebroker.com What sets your firm apart from others? My Insurance Broker is grounded on the premise that we simply try to do the simple things better. Whether it be answering a question, transferring a call or touching base with insureds on renewal, it’s the quality of effort and quality of service that help to ensure an excellent customer experience. Name five factors about your business that have helped you succeed: • Strong core values: MIB prides itself on the being built on the firm foundation of honesty, trust, commitment, care and loyalty. • Repetition of great service: No matter the time of day or the gravity of the circumstance, the customer must receive our best in each and every interaction. • Importance of creating a family environment in the workplace: It is one of our main functions and our founders’ visions that our brokers and staff find their office to be an extension of their home. • Being attentive: Each day, within each moment of conversation, our customers tell us the things we do well and our areas for improvement. By simply tuning in to
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some of these subtle suggestions, we can improve our customer experience and inevitably our overall growth. • Instituting change: It is important to recognize that neither insurance as a product, nor our clients’ needs – our number one priority – are static. It is vital for any business to assess the needs and institute the availability of resources in order to evolve with our dynamic industry. What’s the most important thing brokers can do to develop their business? Know your customer. With each new referral, quote, application and policy comes a new set of questions, needs, requirements and solutions. It is vital to acknowledge, treat and assess their needs accordingly. How does your firm retain top talent? We like to believe that we don’t retain our associates’ talent, but rather encourage [them] to thrive and perform at their best [by] ensuring
that the workplace is an effective, efficient and evolved placed to be. What’s next for your brokerage? My Insurance Broker is focused on growth in both personal and commercial lines, and reaching more of our clients in the areas in which they work, live and play. We will be launching our newest location in the summer of 2015, with expectations of being across all major cities within southern Ontario by 2017. MIB also hopes to be a nationally recognized brand, representing other provinces throughout our great landscape.
“It is the quality of effort and quality of service that help to ensure an excellent customer experience”
www.insurancebusiness.ca
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28/02/2015 1:20:57 AM
TOP TOP BROKERAGES BROKERAGES
3 (TIE) ROGERS INSURANCE BROKERAGES TOP TOP
BROKERAGES
BRUCE RABIK, CHIEF OPERATING OFFICER
FAST FACTS Head office: Calgary Founded: 1977 Brokers: 260 Specialties: Commercial lines Website: www.rogersinsurance.ca What sets your firm apart from others? We are Canada’s most award-winning brokerage. One of the reasons we win the awards is that we are employee-owned. All employees have the right to become owners after two years, no matter what their position. In the past 11 years we have grown from 50 staff to over 300 under management. That is a lot of growth and a lot of change, but we have always stayed focused on being the best place to work in the insurance industry. Name five factors about your business that have helped you succeed: • Employee owned: [That] helps us attract and retain the very best staff. • Sales culture: We have grown very well organically through a focus on sales. • Expense control: We run a pretty lean operation but invest as much as we can back into our people. • Entrepreneurial: We are nimble and have invested in all kinds of things to help our clients, like the most sophisticated smartphone app in Canada that we will be launching shortly. • Full service: Even though we are primarily commercial, we are also very strong in high-net-worth personal lines, group personal lines, group benefits, key man life and so on.
What kinds of coverage have contributed the most to your firm’s success? We sell all kinds of coverages in an effort to make it easy for our clients. We have developed experts and practice areas in many areas of commercial insurance, but we also can provide insurance for the personal needs of the owners and officers. What’s the most important thing brokers can do to develop their business? Right now, the world is changing for insurance. But at all times, brokers have to be a sales organization – and that means meeting the needs of customers. At this point in time, customers are demanding a lot more than then they used to, including convenience – they want quicker access, and access on their terms, to the best insurance advice and prices. How does your firm retain top talent? We are employee-owned. We have a management style that has led us to win more top employer awards than any other insurance organization in Canada. Our core values are “respect, fun, owning it, and winning.” At the same time
we take pride in “a human approach to insurance,” which is our key slogan. We simply are working hard to be the very best for our staff. If we achieve that, then we will have the best people, who will be very engaged – and then we will have very happy customers. What’s next for your brokerage? We’re investing heavily in supporting our salespeople. We’re investing heavily in the Internet and technology to provide additional convenience to our customers. And we’re trying to think of new ways to up the bar in being a top employer.
“At all times, brokers have to be a sales organization – and that means meeting the needs of customers” www.insurancebusiness.ca
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FEATURES
COVER STORY TOP TOP
3 (TIE) JONES DESLAURIERS INSURANCE MANAGEMENT
BROKERAGES BROKERAGES
SHAWN DESANTIS, PRESIDENT AND CEO
FAST FACTS Head office: Mississaugua, Ont. Founded: 1951 Brokers: 183 Specialties: Transportation, manufacturing, construction, technology, hospitality, real estate, VIP personal lines, risk management Website: www.jdimi.com
What sets your firm apart from others? JDIMI is committed to offering only the best commercial and personal insurance, and financial services experience. The company prides itself on its passion for the industry, as each staff member has a dedicated and sophisticated approach to their knowledge and understanding of insurance and risk management. We are a company of the newly created Navacord Inc., which is a Canadian platform to benefit the independent insurance brokerage community. It enables us to share resources and provide our clients with enhanced risk management services, deep sector expertise, strategic capital and preferred access to carriers, while operating within an entrepreneurial culture focused on industry-leading growth, sales management best practices, acquisition and administrative support. Name five factors about your business that have helped you succeed: • Human capital • Strong sales culture • Training/mentorship • Strategic partnerships • Exceptional customer service
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What kinds of coverage have contributed the most to your firm’s success? With the ever-evolving industry, JDIMI stays at the forefront of new risks on the market. New products like D&O, E&O and cyber liability continue to drive our success as a firm committed to providing our clients with the broadest coverages available. What’s the most important thing brokers can do to develop their business? JDIMI is committed to developing the highest standards in recruiting, training and mentoring the best brokers in the industry. Having the right people working in the right places is a key driver to our success. Leveraging personal and professional strengths for the benefit of the client keeps our customers happy and our employees engaged and successful in their careers. How does your firm retain top talent? Our head office has been developed to accommodate for growth, as well as attract and retain top talent. It provides a collaborative work environment, which promotes employee engagement and fosters relationships and innovation.
Our culture is one of professional development, with continuing education and producer development programs being key to attracting talented individuals. We also offer competitive benefits packages and performance-based perks. What’s next for your brokerage? In 2015 we will continue our aggressive plans for future growth, enable our employees to further develop their skill sets and grow at the company, and take full advantage of being a founding company of Navacord.
“We know that nothing can replace employee dedication and commitment, and we ensure we provide our staff with the tools needed to outperform on the job every day”
www.insurancebusiness.ca
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28/02/2015 1:21:34 AM
TOP TOP BROKERAGES BROKERAGES
2 MITCHELL & WHALE BROKERAGES TOP TOP
BROKERAGES
ADAM MITCHELL, PRESIDENT
FAST FACTS Head office: Whitby, Ont. Founded: 1948 Brokers: 15 Specialties: General, “but we’re getting pretty good at competing with the directs online.” Website: www.mitchellwhale.com
What sets your firm apart from others? We are growing faster than most we know and succeeding in the new age of brokerages online. We have adapted to the new work of marketing a brokerage. Name five factors about your business that have helped you succeed: • Get off your high horse – ask for help, listen to others and provide value and reciprocate it. Collaboration is key. • Demonstrating effort and kindness to a person with a problem can earn you a loyal customer for life. Become a customer-centric company. • Don’t tolerate inefficiency, bad attitudes and resistance to change for change’s sake. The cheese has moved, and you have to adapt. • Write goals and shoot for the moon. Ambition is key in leadership and team members. • Networking really does matter. Stop working in your business and work on your business if you want to scale.
What kinds of coverage have contributed the most to your firm’s success? Personal home and auto and auxiliary lines. How does your firm retain top talent? An open and collaborative environment, transparent leadership and numbers, meritocracy, music, Wine Fridays, flexible hours, growing, winning. What’s next for your brokerage? We are going to grow by 400% and continue to accelerate organically, finding efficiency and operational excellence. We are going to be fighting ready as the insurance world changes around us.
“Demonstrating effort and kindness to a person with a problem can earn you a loyal customer for life”
www.insurancebusiness.ca
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28/02/2015 1:21:56 AM
FEATURES
COVER STORY
1 SHARP INSURANCE BROKERAGES TOP TOP
BROKERAGES
SHERIF GEMAYEL, PRESIDENT
FAST FACTS Head office: Calgary Founded: 2009 Brokers: 38 Specialties: Personal lines, home and auto Website: www.sharpinsurance.ca What sets your firm apart from others? Sharp Insurance is different from other brokerages because of our focus on technology and ingenuity. From its very inception, Sharp’s goal was to fill the gap missing in the brokerage industry at the time, which of course, was technology and market-specific saturation. Increasing our online profile through website development and social media platforms, along with creating a mobile app that allows its users to access and even change their policy details at any time, has really been a game changer for us. Name five factors about your business that have helped you succeed: The number one factor is our people. The second and third factors are our people. It is absolutely quintessential for a growing business to have loyal and dedicated employees who share in the company’s achievements and disappointments. The fourth factor is our unique culture, which is unparalleled in our line of business. We really do work hard to achieve our common goals, but we also have fun and enjoy our workday. Our technological focus rounds out our five factors for our success. We are constantly striving to be ahead of the industry in technology and marketing trends. What kinds of coverage have contributed the most to your firm’s success?
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Our personal lines auto insurance has been our greatest success. We were able to find a niche market that works great for us. What’s the most important thing brokers can do to develop their business? The most important thing any broker can do to develop their business is to really invest in their people. Compensate your employees well and provide them with tools and training they need to be exceptional at their jobs. How does your firm retain top talent? We created a highly engaging culture. Some of the most highly skilled brokers can feel underwhelmed and underutilized at their place of work. We challenge our employees by providing them with problems to solve or initiatives to plan and execute. It is important for us to create a safe and fun work environment where our brokers have a platform to communicate their ideas and share in the development and growth of Sharp. Putting aside time at work to have fun is also important – this is precisely how our great culture and sense of community was cultivated. We also provide fair and competitive compen-
sation, and we always share our success with our people. What’s next for your brokerage? Our goal is to continue our rapid growth and development. We also want to continue to grow our sister company, sharpmobile.ca, which aims to provide brokerages across Canada with our successful mobile app and online client portal.
“It is absolutely quintessential for a growing business to have loyal and dedicated employees who share in the company’s achievements and disappointments”
www.insurancebusiness.ca
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28/02/2015 1:22:27 AM
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28/02/2015 1:22:36 AM
FEATURES
FLOOD MITIGATION
FLOODED WITH INTEL
Recent floods in this country have highlighted the need for flood mitigation insurance. Philip Kaszuba of DMTI Spatial explains how new technology is making it easier to identify and insure against flood risks
WHILE SOME weather patterns are predictable, extreme weather events tend to run on their own calendar. Unfortunately, severe weather events have a tendency to cause the most damage and are occurring on a more frequent basis, resulting in a substantial financial impact on Canadian insurers. The Institute for Catastrophic Loss Reduction claims that from 2009 to 2014, Canadian insurers paid out upwards of $8 billion in weather-related claims â&#x20AC;&#x201C; in part due to the considerable flooding Canada has experienced in recent years. Canada will no doubt continue to experience catastrophic weather events, but insurance professionals now have solutions that can help mitigate risks and reduce the financial impact of these events. Location analytics is an emerging field that provides substantial benefit to the insurance industry â&#x20AC;&#x201C; from policy quote and approval processes to claims management and customer service. Advances in processing power and cloud computing are enabling insurers to migrate traditional geospatial analytics from an off-line manual process to real-time integrated solu-
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tions and automated workflows. Using location as a common point of reference, users are able to connect policy, property, claims and thirdparty data together to gain insight into the property and the surrounding area â&#x20AC;&#x201C; allowing them to quickly analyze, visualize and assess property risk. One common use case is the real-time, automated analysis of a proposed policy using flood zones, earthquake zones and other potential perils information. Getting a high-precision view of where a property sits versus identified risks allows for more accurate assessments. The availability of real-time location data offers two primary benefits. The first is increased productivity, delivered by automating assessments and consolidating the output on one screen so that agents can make better, faster decisions. The second is proper pricing for the risk scenarios being proposed. The key to enabling these benefits is to empower the end user with information in real time. While an agent is assessing the risk of a potential property, location data can answer a multitude of questions: Is this property exposed
to a 1/20, 1/100, 1/200 or 1/1,500 year flood event? What are the types and magnitude of historical claims in the surrounding area? Is my accumulation risk too high, or am I able to take on any more policies in this area? Are the current policies priced to cover identified risk? The answers to these questions are imperative when an insurer is trying to accurately calculate total risk exposure from perils and flooding, and quote the policy in a timely manner. While severe weather events and flooding will continue to present risks to Canadian insurers, access to real-time location data, including flood information, can enable insurers to make more informed decisions during the approval process. While weather will continue to be unpredictable, location analytics is a powerful tool to protect your bottom line.
Philip Kaszuba is president of DMTI Spatial, a software company that focuses on location-based analytics.
www.insurancebusiness.ca
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28/02/2015 1:23:49 AM
PEOPLE
PRODUCER PROFILE
The Imaginarium of Guylaine Déchaine As a leading film and entertainment broker, Guylaine Déchaine insures against everything from high-flying stunts to lavish movie sets A DECADE or two ago, covering the kinds of special effects that erupted across the screen in the 2014 box office hit Pompeii – which, as one movie reviewer put it, saw Mount Vesuvius “raining down a shower of ash and fiery meteors that targeted unpleasant major characters like cruise missiles – would have posed some serious challenges for a film and entertainment insurance broker. But thanks to the rise of computer-generated imagery (Pompeii featured millions of dollars of CGI exploding-volcano effects, a CGI crumbling Roman city, and thousands of itsy-bitsy CGI people), Guylaine Déchaine found that insuring the movie was a fairly straightforward endeavour. Déchaine, BFL Canada’s leading film and entertainment broker, is well-versed in customizing coverage for American and Canadian film, television and theatrical productions. In the beginning of her career, most special effects were done live. But these days, “It’s very seldom in the movie production business that they would actually blow up some stuff,” she says. “Now, they just do it on a computer. It’s much more cost-effective, and the exposure is a lot less. There’s no risk – or very minor risk.” Problems Déchaine solves on a daily basis can run the gamut from the surprisingly straightforward (CGI special effects) to minor bumps in the road (a film crew who ran over their own camera at the end of a long day of shooting) to tragic (her biggest claim ever was for Heath Ledger’s death during the filming of The Imaginarium of Dr. Parnassus).
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A big break When Déchaine first ventured into the insurance industry in her early 20s, she never dreamed that her career would evolve in such a fun and fascinating direction. She was more interested in administration. “I love paper and organizing and structuring everything,” she explains. She got her foot in the door as an intern with a group insurance company, and within a few years – thanks to her fluency in both French and English – she was leading the company’s customer service department for all of Canada. Her next big break happened shortly after transitioning into commercial insurance at Richard Melling Insurance Brokers. When an agent in the commercial, film and entertainment division departed for maternity leave, Déchaine took over her position. A few years later, in 1989, she and colleagues Ed Gathercole and Joanne Camacho jumped from Richard Melling to BFL Canada, where they continued in commercial insurance while pursuing their dream of growing a film and entertainment portfolio. Pooling their considerable talent, the team was able to reach out to both the Englishand French-speaking industry. “And here we are, 26 years later, with a beautiful clientele that we adore that are very loyal to us,” Déchaine says. Today, BFL Canada’s Montreal office boasts a highly trained and experienced team of 10 film, media and entertainment brokers, headed by Déchaine. They provide
www.insurancebusiness.ca
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comprehensive insurance protection and consulting services for productions in North America and internationally. Clients range in size from documentary filmmakers, international festivals and concert tours, to major studios with film budgets exceeding $90 million. As all-consuming as it can be, it’s clear that Déchaine loves her job. “A&E is a very beautiful niche, but extremely stressful and challenging,” she says.
Risk management
Copyright: Marcie Richstone
Much of what Déchaine and her colleagues do can be categorized as risk management. On a film production, for example, they read the story scenarios, go through the script and highlight anything that has to do with stunts, special effects, shooting with helicopters, animals and the like. “We consider if the main cast are going to be doing any high-risk activities. We really look at that script and address it line by line with the production company – ‘How are you going to do it? Are you going to have a stunt coordinator? Do you have any major cast stunt doubles?’” says Déchaine. They then approach the handful of insurance companies that specialize in film and entertainment, help them to “appreciate” the scope of the project, “and get a comfort zone to be able to give us a premium on whatever type of production we get involved in,” Déchaine explains. Each project is fraught with its own unique set of challenges. One of the current film projects with which Déchaine is involved, for example, is about the story behind the construction of the Chateau Versailles in France. “It’s an exotic period piece, which is very complicated,” she said. “You have got to make sure you insure the shooting location properly. And the props are priceless.” Déchaine has also recently insured the Resident Evil series, which has “a lot of action and stunts, a lot of weird things going on.” Midnight Sun, a 2014 action/adventure film set amongst the ice fields of northern Canada, also presented unique challenges. The storyline follows a young boy who defies the dangerous elements of nature to reunite an abandoned polar bear cub with its mother. Although Canada has plenty of its own resident bears,
www.insurancebusiness.ca
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PEOPLE
PRODUCER PROFILE
“We come in, and we never know if we will have heart attacks or Band-Aids. We just know we are ready for anything”
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the bruins for Midnight Sun were flown in from other countries, and some had to go through quarantine. “We hope that everything is going to be fine after the quarantine and that the animals will be able to perform and participate in the movie,” Déchaine says. But if not – well, that’s what insurance is for. Animal mortality, as it’s called, is one of the many specialized coverage needs that Déchaine’s clients sometimes have, sending a veritable menagerie of animals – including elephants, tigers and lions – parading through her career. Déchaine describes her film and entertainment department as an emergency ward that runs 24/7. “We come in, and we never know if we will have heart attacks or BandAids,” she says. “We just know we are ready for anything.”
THE TRINITY OF FILM & ENTERTAINMENT COVERAGE
When tragedy strikes
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The overdose death of Heath Ledger on Jan. 22, 2008, represented by far the biggest challenge – not to mention the biggest claim – in Déchaine’s entire career – “and a very disturbing one,” she says. Ledger was in the midst of filming The Imaginarium of Dr. Parnassus, a $30 million production in which the Australian actor played the lead role. BFL Canada was the film’s broker. The minute Ledger’s death happened, senior representatives stepped in, along with BFL’s head of claims department and the adjuster, to huddle with other key players on the project to find a solution to the seemingly unsolvable problem. For a while, Déchaine recalls, it felt like things were going from bad to worse. But ultimately, the producers rewrote the script in a way that enabled them to complete the production by casting three other actors (Johnny Depp, Jude Law and Colin Farrell) to portray transformations of Ledger’s character as he travelled through Dr. Parnassus’s dream world. “This could have been abandonment, but it wasn’t,” Déchaine marvels. The insurance company that was covering the production “went ahead and paid what they had to pay, in accordance with the financial agreement that they had, because it was a covered loss.” Many millions of dollars later, the production company was able to complete the movie, which went on to gross more than $60 million and earn two Academy Award nominations. For Déchaine, the claim was a once-in-a-lifetime expe-
According to Déchaine, there are three main insurance policies that every film or television production company needs:
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Entertainment package insurance covers the physical aspect of a production. That includes cast, crew and animals (if they pass away, get sick or have an accident), shooting locations, equipment, prop sets, wardrobes, rented vehicles and everything else on the property side of a project, right down to the footage that is being shot. Each package is tailor-made for its particular production. Comprehensive general liability covers the production company in case of negligence resulting in bodily injury or property damage to a third party. The errors and omissions policy is put in place prior to the airing of a TV series or release of a film project, and is designed to cover the production company in case of defamation or breach of rights.
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When a production company is shooting in a remote, high-risk foreign country, they need additional insurance coverages. Depending on the scenario, these might include major medical (including kidnap and ransom), accidental theft and dismemberment, travel delay and political insurance. (War and terrorism are excluded.) rience that she hopes never to endure again. But, she reflected, everyone walked away from it with some important lessons learned. “I think the communication and creativity and expertise at the table is key,” she says. “In the case of Dr. Parnassus, everyone was around the same table, putting their heads together, in order to make sure they would find a solution.” More than anything, the experience gave Déchaine a deeper appreciation for the value of the work she does. “When everything is fantastic, it’s great,” she says. “But you know what? That’s where you really determine the expertise of a brokerage firm – when it goes really sour, really bad, and you have this huge claim. And when you come through with a conclusion, it’s a fantastic feeling.”
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FEATURES
MARKETING
5 ways to make your web (re)design easier The numbers don’t lie, and if they’re saying your website has failed to connect with clients, it probably has, writes Maggie Crowley BROKERS OFTEN talk about being unhappy with their existing websites. While it’s not realistic to redesign your brokerage’s website annually, the gaining pace in the tech world makes every website a constant work in progress. Taking on a new website project may not sound like a walk in the park, but a site redesign can have a lasting positive impact on any brokerage. How do you know when it’s time for a complete overhaul of your site? Here are three telltale signs: Low traffic and conversions Numbers don’t lie. The biggest reason to give your website a refresh is when no one is using it. Best practice is to track and measure numbers on a monthly basis using Google Analytics. If you notice a drop in traffic or stagnant numbers over the course of at least one quarter, it’s time to try something new. It’s not a proper (or realistic or positive) representation of your brokerage Prospects who have never met you can make an impression of the brokerage based on its website – in less than three seconds. Your website is the only member of your team working
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24/7 to promote and advocate your brokerage … does it send a positive message to your target audience? If you don’t even like the way it looks, chances are neither do consumers. It’s not relevant in 2015 While I’m not suggesting a complete website redesign is necessary every year, consider some of the major changes in technology in the past five years: More people access the Internet from a mobile device than a desktop computer, Flash animations are no longer a ‘thing,’ and Google is the new Yellow Pages. If it’s time for a website redesign, the best way to get ready is to do a little prep work. Many brokers find web design quite daunting and complicated, and with good reason. It can be challenging to assemble the necessities to get started, but with the right people on the job, it’s not nearly as difficult a challenge as it may seem. The biggest obstacle brokers run into when tackling a website redesign is a general lack of focus and direction. As a result, they usually aren’t prepared to make decisions about the site, and generally that leads to a delay in the process. Start by taking a step back and looking at the big picture. What are you trying to achieve? A strong plan now will make for a smooth
process along the way. If you’re considering a new website in the near future, begin by planning now. Consider these ideas in order to streamline your upcoming web design project. Do some research Take a critical look at websites you love (and loathe) to help you figure out what you want your website to be like. Are there certain colours you find appealing online? Start by doing a Google search of other insurance websites to analyze the landscape. Having a good idea of what you want the site to look like will help your web design team produce a site that matches your expectations. Find several different layouts you’re comfortable with. What types of navigation do you like best? These are all questions that the team building your website will ask. Make the design process easier by answering these questions on your own first.
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“The biggest reason to give your website a refresh is when no one is using it. ... If you notice a drop in traffic or stagnant numbers over the course of at least one quarter, it’s time to try something new” where clients will be engaged and regularly logging in. Determining how you want to use your website should be part of the cornerstone of your brokerage’s marketing plan.
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Hire a photographer High-quality photos of real people (as opposed to stock images) are one of the best touches you can add to your website. Web visitors are more inclined to trust companies that provide a personal touch by showing who is operating behind the company. Highlighting pictures of your team (people love working with teams) throughout the site is a powerful way to engage an audience of potential prospects. Doing this in advance ensures that the images will be ready to go when your web design process begins.
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Write content Ready-to-go content is often the numberone element that delays the website creation process. Whether you’re writing your site’s content in-house or working with a copy writer or marketing, definitely start in advance. Have
some content prepared before you commence the process. This will ensure that the design team will be able to deliver your website quickly and efficiently. What are the essentials? An up-to-date biography (this should be updated every three to five years) and information about your company, team members and your services are all useful to have readily available.
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Determine functionality What should your website achieve? Ideally, who will be visiting your website? What should they do when they get there? It is worth brainstorming and setting goals so you have a clear direction for your site. If you want your website to act as an online business card to validate your brokerage and provide contact information, that requires different kinds of information than a website
Be prepared to spend a little time on it There’s no way around it: Your web design project will require time. In order to get a website that is reflective of your brokerage, assign someone from your team to lead the project, but expect everyone to get involved at some point. The goal of any great web design team is to make the production process as seamless and easy for you as possible. However, in the end, it is your website, and it needs your input. A website redesign can be a daunting task, but partnering with a good web design firm can make the process a lot easier (and even fun!). Remember, a well-designed website is one of the most effective marketing tools you’ve got – make the most of it by keeping it fresh, up-to-date and easy to use.
Maggie Crowley (@crowleymaggie) is the marketing coordinator for Advisor Websites, where she manages the company’s online presence and educates financial services professionals on how to maximize the potential of a strong web presence.
www.insurancebusiness.ca
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PEOPLE
FAVOURITE THINGS
DWAYNE GAGNE
Ontario West Insurance Brokers and Young Brokers Council Helping clients, Parisian architecture, lasagna for dinner – these are a few of Dwayne Gagne’s favourite things Favourite book The Alchemist. It’s a good book about life and has a positive message. It’s a feel-good story with good perspective.
Best day in insurance It has to be when I won the Broker of the Year award from the YBC in October of last year. It was an honour to recognized – it was both humbling and amazing.
Favourite vacation spot Paris. I’ve been there twice. It’s really an awesome city. I love the culture and architecture there. The Louvre, the Eiffel Tower and the Opera are some of my favourite places to visit there.
Favourite movie Top Gun Favourite music I’m a big country fan. Garth Brooks is probably one of my favourites. “Ain’t Going Down ‘Til The Sun Comes Up” is a classic.
Favourite sport Curling is my favourite sport to watch, but basketball is my favourite to play.
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Favourite food Lasagna, hands down
Best thing about working in insurance Helping people who can’t always help themselves. It’s all about building relationships and trust with people, and once you can do that, you’ll be successful in this industry.
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CAREER PATH
FINDING HIS WAY
The desire to spend more time with his family led Kevin Pfau into insurance – and he’s never been happier BEYOND Committed to a change in lifestyle, Pfau sought to become an insurance agent but had to seek a sponsor before enrolling in education.
“I cold-called 42 insurance brokers and firms to get a sponsor, and I finally was able to get a guy from GK Brown Insurance. While I was there, I got sound advice. Often we try to … force things to happen instead of letting them happen naturally. Waiting for things to develop is among the most important lessons that he taught me.”
This is only the beginning of Pfau’s career in insurance – and he has big plans for the future. “I want to get my life insurance license so I can start to selling products geared more toward people and their needs heading to retirement. I do a lot of property insurance right now … but I want to deal with more clients.”
2015
2013
BECOMES AN AGENT
GK Brown Insurance was eventually sold and renamed Reider Insurance; Pfau is now an agent. “I try to do as much for my clients as I possibly can to let them know I care, and also drum up more business. The most I’ve done is help a client move into a new home for free. If all goes well, then I’d suggest they set up with me for insurance.”
2012
ENTERS INSURANCE
2011
TRIES A DIFFERENT PATH
2007
HAS A CHANGE OF HEART
Pfau returned home to Manitoba to another security job before trying his hand at becoming a plumber. “I hated it. I was working for a guy who was always negative and didn’t really treat me well. But I thank him – the way he treated me, with little to no respect, allowed me to start thinking about other possibilities altogether.”
2004 Pfau soon realized that his dream of becoming a police officer would keep him away from his family more than he wanted. “I did the program for about three years, but realized that it was just too much. There’s very little time you get to spend with your family when you’re an officer. I care a great deal about my family and wanted to be there for them.”
GOES TO SCHOOL
1994
GETS FIRST JOB
It took Pfau a while to realize that insurance was the way to go. He worked as a security guard and did maintenance for a tire shop before ultimately deciding to go to school to become a police officer. “I love being involved in the community, so I wanted to become a police officer. I was committed to it, but later realized it wasn’t all it was cracked up to be.”
www.insurancebusiness.ca
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FEATURES
EXPERT ADVICE FAST FACTS British Columbia and the Ontario-Quebec corridor face the highest earthquake risk in Canada More than 4,000 earthquakes happen in Canada every year Some of the world’s largest earthquakes have occurred in Canada.
PREPARING YOUR CLIENTS FOR THE NEXT BIG SHAKE-UP AS A BROKER, you play a crucial role in helping your clients prepare for the worst. You understand your clients’ insurance needs best. You also have an established relationship with them, which you can tap into to help them understand the importance of having a plan for disasters. Earthquakes are a risk that we all have to be prepared for across Canada, particularly in seismic zones off the coast of British Columbia and the corridor between Ontario and Quebec. These areas have the highest risk for an earthquake – and are also where 40% of the Canadian population resides. Statistics show that only 45% of British Columbians currently carry earthquake insurance. Given the risk, why isn’t that number higher? Many customers have a mindset that the government will step in to help them rebuild their property if they don’t have insurance. Traditionally, the government does not step in if insurance coverage is available in the open market, which leaves those without earthquake insurance in trouble after a disaster. It’s up to brokers to educate customers and change this mindset. Besides reminding your clients of the importance of purchasing earth-
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quake insurance, there are other ways you can prepare your clients for an earthquake. As brokers, you are perfectly positioned to help your customers with disaster planning, as you know the risks your customers face and can assist in the planning and preparation process. Know the risks and be prepared Preparing for an earthquake involves going through your home and imagining all of the potential risks should an earthquake occur. Look at the shelves and walls: Are heavy and breakable items on the bottom shelves so they don’t fall during a quake? Are items like mirrors and frames, appliances and heavy furniture secured to the walls? Ask your clients to imagine all the dangers in their homes and try to help resolve them as soon as they can. Make an emergency plan Ask your clients to think about what could happen in the different places they frequent. What is the safest spot in your clients’ home or workplace? What would they do if an earthquake occurred? It’s important for your clients to know all of the safety procedures of places where they spend a lot of time. At home, it’s especially help-
A recent earthquake impact study commissioned by the Insurance Bureau of Canada found that a 1-in-500 year earthquake could cost Canadians $75 billion in economic losses and $20 billion in insured losses in BC, or $60 billion and $12 billion in the Quebec-Ontario corridor. ful to have an emergency plan that they, along with their families, are familiar with. They should write down their plan and practice it together. Prepare an emergency kit In the event of an earthquake, your clients will need sufficient supplies to last them for at least 72 hours. Items like water and canned food, flashlights and batteries, prescription medications, toiletries and other items should be stored in an area that is accessible and in a kit that is easy to carry. Remember to check the expiry dates annually on items that can go bad. Discussing earthquake insurance and working together with your clients on a safety plan can help put them in a better position after the next big shake-up occurs. For more information on how you can prepare your clients for an earthquake, visit www. rsabroker.ca/broker-services/climate-smart.
Nadya Rahim is the commercial insurance underwriting director at Canadian Northern Shield, part of the RSA Group.
www.insurancebusiness.ca
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SWGINS.COM Your specialty insurance provider
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Why travel? When you can TravelWell® Whether your customers are travelling outside the province or out of the country, Intact offers personalized travel insurance to ensure they are properly protected. Help them get covered against the cost of unexpected emergencies that may happen prior to or during their trip, such as trip interruption, medical insurance, and travel assistance. Most benefits packages or credit cards offer only limited protection. TravelWell® provides complete coverage for your customer, whether they travel once per year or once per week. There are two options to choose from: • TravelWell® Emergency Medical Plan • TravelWell® All-Inclusive Plan
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Talk to Small, your Intact Insurance representative about TravelWell® medium, or large, we have experienced underwriters whotoday. have the training and skills to write all sizes of operations. Bring us your submissions today – we’re confident we can work with you to develop the coverage your clients need. If the unforeseen happens, you can count on our dedicated Commercial Insurance Claims team. They have the expertise to get your customers’ business up and running as efficiently as possible.
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The BIPBIP logo is a registered trademark of the Insurance Association of Association Canada (IBAC).ofAllCanada other trade-marks areother property of Intact Financial Corporation used The logo is a registered trademark of the Brokers Insurance Brokers (IBAC). All trade-marks under license. © 2014, Intact InsuranceCorporation Company. are property of Intact Financial used under license. © 2009, Intact Insurance Company.
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