Insurance Business Canada 3.04 by Key Media

WWW.INSURANCEBUSINESS.CA ISSUE 3.4 | $6.95

BROKERS Find out who made this year’s list of Canada’s top 30 performers

EMERGING MARKETS

THE TWO PRODUCTS YOU NEED TO START SELLING NOW

OFC & spine-SUBBED.indd 2

HOSPITALITY HAPPY HOUR

WHAT ONTARIO’S NEW LIQUOR LAW MEANS FOR THIS CHALLENGING SECTOR

MEDIA MATTERS

HOW TO INSURE THE NEW BREED OF ADVERTISING AGENCY

14/08/2015 5:30:00 AM

Capitalize on new opportunities insurance brokerages must be able to quickly identify new ways to grow. Applied software provides a single view of your entire book of business, enabling you to see and quickly capitalize on new opportunities for profitable growth. IN TODAYâ&#x20AC;&#x2122;S COMPETITIVE MARKETPLACE,

See how Canadaâ&#x20AC;&#x2122;s leading insurance software provider enables Schill Insurance Brokers to grow more profitably. appliedsystems.ca/capitalize

KARI SCHILL

Operations Manager and Partner Schill Insurance Brokers Ltd.

appliedsystems.ca

IFC-p1.indd 10

14/08/2015 5:27:35 AM

RBC1

Get all the kudos you deserve. RBC Insurance Group Benefit Solutions can give your clients access to over $20,000* in value-added services. ®

Give accces to value-added services, best-in-class disability products and advice with

RBC Insurance Group Benefit Solutions HOW DO YOUR CLIENTS’ CURRENT GROUP BENEFIT PLANS COMPARE? Value-added services

including Work-Life Employee Assistance Program, Best Doctors‡, HR Support for Small Business and Perkopolis at no additional cost

Best-in-class Disability coverage including Residual, Partial and Total Disability

Health and Dental coverage backed by industry-leading technology and claims-management support

Comprehensive online tools making plan administration easier for your clients

RBC Insurance continues to be the fastest growing Group Carrier in Canada.††

Talk to an RBC Insurance Sales Consultant today at 1-855-264-2174 or visit rbcinsurance.com/solutions TM

Underwritten by RBC Life Insurance Company. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. *Value of services based on size of group. ‡All other trademarks are the property of their respective owner(s). ††LIMRA, 2014 Q3 results.

RBC16396_Insurance Business Ad V2.indd 1 IFC-p1.indd 11

2015-04-17 10:43 14/08/2015 5:27:45 AMAM

ISSUE 3.4

CONNECT WITH US Got a story or suggestion, or just want to find out some more information? twitter.com/InsuranceBizCA

CONTENTS

plus.google.com/+InsurancebusinessCa facebook.com/IBCanada

UPFRONT 04 Editorial

Agents continue to flourish

06 Head to head

FEATURES

AN EASIER SELL

COVER STORY

Brokers needn’t be hesitant to jump into selling environmental coverage in today’s marketplace

10 News analysis

Auto insurance for driverless cars

12 Intelligence

This month’s big movers and shakers

14 Technology update

Canada’s burgeoning MGA association

18 Opinion

How to pitch cyber insurance

FEATURES

BACK IN VOGUE Ontario’s new liquor law has put hospitality insurance in the spotlight once again

Berkshire Hathaway Specialty Insurance CEO Peter Eastwood discusses the insurance giant’s role on the global stage

PEOPLE 42 Producer profile

Rachel Cheong proves that millennials can get excited about insurance

54 Career path

CJ Nolan’s unwavering commitment to the industry

55 Other life

Andrew Robertson embraces a family tradition

FEATURES 46 What’s coming down the road?

FEATURES

READ ALL ABOUT IT

The media business is rapidly evolving – and so is the way it’s insured

Sobering facts about flooding

16 MGA update

Find out who made our annual list of the top 30 insurance brokers in Canada

INDUSTRY ICON

08 Statistics

Tech to improve the customer experience

ELITE BROKERS 2015

PEOPLE

Dissecting Saskatchewan’s motorcycle coverage

A trucking insurance expert answers questions about the future of the sector

56 Expert advice

How insurers can help brokers get certified

INSURANCEBUSINESS.CA CHECK IT OUT ONLINE

www.insurancebusiness.ca

02-03_TOC-SUBBED.indd 2

14/08/2015 5:13:47 AM

OUT OF THE BOX INSURANCE DESIGNED FOR BROKERS COMMERCIAL . RESIDENTIAL . TRANSPORT *. MARINE .

*auto liability cover available in Quebec only.

At APRIL Canada, we understand that not all risks are created equal. Our team specializes in designing “out of the box” solutions for “out of the box” risks, working in partnership with insurance brokers for the benefit of your clients.

TORONTO . MONTREAL . CALGARY 1-855-745-1010 www.april.ca Changing the image of insurance.

02-03_TOC-SUBBED.indd 3

14/08/2015 5:13:42 AM

UPFRONT

EDITORIAL

Defying expectations

t’s 2015, and industry observers continue to predict the death of the independent broker. Hardly anyone outside the industry, it seems, expects brokers to stick around. And yet the independent broker channel has never been stronger. The Insurance Brokers Association of Canada, founded in 1922, boasts more members today than ever. With 35,000 brokers belonging to 11 member associations, the distribution channel is clearly alive and thriving as corporate executives and risk managers look to skilled professionals to help them navigate an increasingly complex world. Through innovative business models such as broker networks and program business, the sector has continued to survive and flourish, even in the face of technological revolution and changing consumer preferences. In fact, a recent study suggests that even millennials – a generation famed for their tech dependency – are just as likely to purchase insurance in person with a broker as they are to purchase it online.

The broker sector has continued to survive and flourish, even in the face of technological revolution and changing consumer preferences It seems that if history is any guide, the independent broker will continue to be a vital component of insurance distribution and consumer knowledge. While the entire sector is worthy of recognition for its success despite repeated death sentences from industry analysts, a few brokers have emerged as especially innovative and effective. Insurance Business Canada has compiled a list of some of the leading producers in the insurance industry today. We hope that by browsing the profiles of your top-performing peers, you’ll be inspired to reach higher and think better, continuing to defy the expectations of the outsiders.

The team at Insurance Business Canada

www.insurancebusiness.ca SEPTEMBER/OCTOBER 2015 EDITORIAL Editorial Director Vernon Clement Jones Associate Editor Donald Horne Writers Caitlin Bronson Jill Gregorie Tim Garratt Maryvonne Gray Olivia D’Orazio Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Michael Loeters Janine Garner Dan Gregory Kieran Flanagan John McNeil

ART & PRODUCTION Design Manager Daniel Williams Designer Joenel Salvador Production Manager Alicia Salvati

SALES & MARKETING National Account Manager Eric Langille Associate Publisher Trevor Biggs

General Manager, Sales John Mackenzie Marketing and Communications Claudine Ting Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

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

www.insurancebusiness.ca

04-05_Editor's page-SUBBED.indd 4

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 the magazine can accept no responsibility for loss

14/08/2015 5:14:45 AM

38168

BURNS &

PROVIDE THE ANSWERS TODAY

WILCOX

SPEED IS OUR MIDDLE NAME. Our vast global market relationships speed up our quoting and binding process, quickly providing insureds the solutions they need. When it comes to the hard-toplace, think fast. Think Burns & Wilcox Canada.

888.591.9125 | burnsandwilcox.ca Toronto, ON St. Johnâ&#x20AC;&#x2122;s, NL Calgary, AB

Ottawa, ON Halifax, NS Edmonton, AB

38168_Burns_Canada-MiddleNameAds_InsBusiness_APPROVED.indd 1 04-05_Editor's page-SUBBED.indd 5

8/10/15 11:53 AM 14/08/2015 5:15:24 AM

UPFRONT

HEAD TO HEAD

Is Saskatchewan’s motorcycle insurance a smart move? Despite their higher-than-normal medical claims, motorcycles will receive limited no-fault insurance coverage in the province

Tim Longworth

CEO Cornerstone Insurance Services

Matt Johnson

Broker ACU Insurance Services

Dave Nussbaumer

“If there are differentiated rates for motorcycles, that’s fair, but then you can take that one step further and have differentiated rates for different classes of motorcycles. They don’t all fit in one category. Stepping the other way, the purpose of insurance is to spread risk among many, so people pay a homogenized rate. Insurers have enough data to see where the most risk is, and that’s where they pay out the most. As for the no-fault coverage, I think that if it’s good enough for everybody else, it’s good for motorcyclists, too. If it’s not good enough for everybody else, it’s not good enough for motorcyclists.”

“I think more options for consumers are a good thing, as long as they are properly educated on the subject. In my professional opinion, I would never recommend any less coverage than is currently offered. I would actually recommend increasing coverage for motorcyclists because of the liability issues. There are many people out there who are just looking at the dollars they pay. What they need to realize is that they pay those dollars because of the risk associated with the activity. The reason the government is offering limited no-fault insurance is to get the premiums down for the people, but the risk is great.”

“Our role as brokers is to explain the coverages available to consumers. The amount paid out versus what is collected is up to the individual insuring companies. In Saskatchewan’s case, we have a Crown-owned insurance provider that has to be accountable to its stakeholders and to the general public – not necessarily an easy task. To my knowledge, there is no difference between a motorcycle claimant’s payout versus an automobile claimant’s payout. Should the government decide to change the coverages, we will continue to play our role as brokers and discuss with our clients and provide the coverages as available and requested.”

Owner Farrell Agencies

ARE ALL VEHICLES CREATED EQUAL? It’s no secret that the inherent risk is higher for motorcyclists than for your run-of-the-mill driver. Bikers are far more exposed to the potential for serious injuries and, in the event of a less devastating crash, vehicle damages are often significantly higher – much like motorcyclists’ insurance payouts. The Saskatchewan government, which owns and runs a province-wide insurance company, will begin offering motorcyclists varying levels of coverage, including limited no-fault insurance. Needless to say, the industry is divided in its opinion of the move. Some argue it could force higher premiums on drivers of traditional vehicles, while others believe it could encourage the lowest level of coverage for the riskiest type of vehicle.

www.insurancebusiness.ca

06-07_Head to Head-SUBBED.indd 6

14/08/2015 5:15:45 AM

WE CAN TAILOR THAT COVERAGE FOR YOU. Property | Casualty | Executive & Professional Lines | Healthcare Professional Liability

Berkshire Hathaway Specialty Insurance is pleased to bring underwriting flexibility, claims handling excellence, and financial strength to Canada. Our experienced team in Toronto is committed to providing precisely the coverage you need.

BHSI Canada Royal Bank Plaza North Tower 200 Bay Street, 15th Floor Toronto, Ontario M5J 2J2 info@bhspecialty.com

06-07_Head to Head-SUBBED.indd 7

14/08/2015 5:15:47 AM

UPFRONT

STATISTICS

Ready for the next flood? FROM 2009 to 2014, insured losses from catastrophic events were close to or above $1 billion each year – and most of this was due to water damage. Based on recent estimates, the Canadian insurance industry pays $1.7 billion each year in claims due to water damage. Canada has an immense number of lakes, rivers and streams, and based on recent weather patterns, it looks like floods will remain a part of the weather landscape for years to come. Some companies,

28%

Percentage of Canadian consumers who have experienced flood damage to their homes

including RSA Canada, are introducing flood coverage to combat this change. Ottawa is also recognizing the threat posed by overland flooding, taking a proactive approach to disaster relief by launching such initiatives as the National Disaster Mitigation Program. “This important investment will help reduce flood-related costs for all levels of government,” said Minister of Public Safety and Emergency Preparedness Steven Blaney.

29%

Percentage of Canadians who are not sure what type of water damage coverage they have under their existing policy

C C

Whitehouse, Alta.

45%

C-

Percentage of consumers who reported they had coverage for water damage from within the home

Edmonton, Alta.

Calgary, Alta.

Vancouver, BC

Source: RSA survey, spring 2015

TOOL FOR BROKERS Education is a key to success, which is why RSA has invested in a Climate Smart resource hub for brokers. This hub includes: • Access to tools and tips about disaster preparedness and risk mitigation • Ability to gather information and insights to start conversations with clients about climate topics

For more information, visit www.rsabroker.ca/climatesmart

MOST COMMON DISASTERS BY COUNTRY 166

Australia

France

Canada

37 35

132

286 254

India

33 103

118 66

31 38 37

Germany 0 Flood

143

136

Philippines

465

237

China

Japan

104

100 Earthquake

Tropical cyclone

200

300 400 Number of disasters since 1900 Epidemic Storm Land mass movement

500

600

Extreme temperatures

700 Wildfire

Source: International Disaster Database

www.insurancebusiness.ca

08-09_Stats-SUBBED.indd 8

14/08/2015 5:16:08 AM

GRADING CITIES’ FLOOD PREPAREDNESS A recent study from the University of Waterloo reveals that Canadian cities have made significant strides in preparing for floods, although some remain more vulnerable than others. The analysis examined how well 15 cities could tolerate the 16 areas of flood vulnerabilities caused by extreme rainfall.

C C-

B-

B+ Winnipeg, Man.

Fredericton, NB

St. John’s, NL

C-

Quebec City, Que.

Montreal, Que. D

AOttawa, Ont. C+

C-

Charlottetown, PEI

B-

Regina, Sask.

Halifax, NS

Mississauga, Ont.

Toronto, Ont. Source: IB Canada

MORE MONEY FOR FLOOD RECOVERY Disaster Financial Assistance Arrangements has provided more than $3.4 billion to Canadian provinces and territories for flood recovery efforts. This reinvestment will serve as a supplement to the $53 billion offered through the New Building Canada Plan, which includes the $32 billion Community Improvement Fund, intended for disaster mitigation projects and rebuilding infrastructure.

$3.4 BILLION

$32 BILLION

for flood recovery efforts

$53 BILLION

CALGARY STILL IN DANGER? Despite being one of the communities hardest hit by the Alberta floods, almost two-thirds of Calgary residences remain uncovered for flood damage. This coverage can be added to an existing home policy – but it’s up to brokers to arm themselves with the facts and open the conversation with clients.

65%

Residences in Calgary, Alta., that remain uncovered by flood insurance

$38,000+

Average claim for floodrelated damages between 2008 and 2012

for New Builiding Canada Plan

for Community Improvement Fund Source: Floodinsurance.ca Source: Insurance Business online

Source: Floodinsurance.ca

www.insurancebusiness.ca

08-09_Stats-SUBBED.indd 9

14/08/2015 5:16:13 AM

UPFRONT

NEWS ANALYSIS

Navigating the future of auto insurance Driverless cars will complicate liability and disrupt traditional sales of personal and commercial auto insurance, but industry experts still foresee a role for brokers – perhaps an even greater one DRIVERLESS CARS could be rolling up to Canada by the end of the decade, and a survey from the Boston Group suggests that North American consumers are ready. But it isn’t the novelty, the lower fuel consumption or the improved safety record of driverless cars that appeals to them – it’s the measurable savings on auto insurance premiums. Of the thousands of drivers interviewed, 55% said they were likely to buy a semiautonomous car, while 44% said they would buy a fully autonomous vehicle in 10 years. They are banking on a significant decrease in the average $800 they pay in annual auto

That leaves little time for insurance professionals to sort out what could be a complicated liability issue and a shift in the role independent insurance agents and brokers play in sourcing auto risk. According to the International Organ ization for Road Accident Prevention, the $157 billion auto insurance industry thrives on human error as the cause of 90% of road accidents. Because self-driving cars would remove that primary contributor, revenue for auto insurers is likely to see a major reduction. The decrease in human error also transfers liability for an accident from the

“While the insurance industry is adapting, it will take a lot of research and consideration to insure a driverless car” Steve Kee, Insurance Bureau of Canada insurance costs – discounts already available to European customers who have purchased semi-autonomous vehicles made by Volvo. The sentiment is so strong that Edmonton-area transportation advocate Paul Godsmark estimates that driverless cars could be on Canadian roads within four years. By 2040, the vast majority of vehicles will be autonomous.

driver to the manufacturer. “When, if ever, will a faultless driver be ‘legally responsible’ for an accident or be ‘legally entitled’ to recover from a faultless, uninsured motorist?” asks Robert Peterson, director of the Center for Insurance Law and Regulation at Santa Clara University. Of course, such an approach would significantly cut into broker business – and if

brokers listen to Godsmark, their role will be entirely wiped out by the advent of driverless cars. Insurance Bureau of Canada spokesman Steve Kee is less fatalistic, but admits that the industry is not yet close to solving coverage issues for these vehicles. “Driverless cars may be a ways out on the horizon, and while the insurance industry is adapting, it will take a lot of research and consideration to insure a driverless car,” he says. “We are not sure yet what that product would look like. I don’t think many of us would have predicted even five years ago that we would see pilot projects for driverless cars.” In the US, industry representatives remain upbeat on the prospect of brokers’ future in the auto business. Thanks to the range of additional risks inherent with self-driving cars, many believe the advent of such technology will actually solidify the need for independents. Of most obvious concern is how driverless cars will interact with traditional

www.insurancebusiness.ca

10-11_News Analysis-SUBBED.indd 10

14/08/2015 5:16:35 AM

DRIVERLESS CAR FACTS TIMELINE

By 2040 More than 75% of vehicles on North American streets will be driverless August 2015 Google announces that its driverless cars had made it across 300,000 accident-free miles and handled various traffic conditions 2015 An autonomous car fitted on an Audi Q5 SUV embarks on a 3,500-mile, coastto-coast journey across the US Late 2000s Google, Audi, Nissan, Toyota, Bosch and the University of Oxford begin to work on self-driving vehicles

vehicles on the road. According to research from the UK’s Institute of Engineering and Technology, driverless cars may actually increase the risk of accidents, as human drivers have been proven to change their behaviour when interacting with

could be hacked, causing chaos on the roads on increasing liability for both manufacturers and drivers. Similarly, any auto-locking technology could result in drivers making mistakes – locking passengers in the vehicle remotely

“You may not be buying a liability policy anymore, but you may need a cyber policy or an operator policy ...” John Tiene, Agency Network Exchange autonomous cars, copying their driving styles and leaving less space between the vehicle in front of them. While autonomous vehicles would be outfitted with sensors able to detect and react to this threat instantly, human reaction time is much slower. Cyber ramifications are also top of mind. The computers that operate driverless cars

or irresponsibly leaving the vehicle unlocked and accessible to thieves. “Owners of these cars may be taking on responsibility for a piece of technology when they purchase these vehicles,” says John Tiene, CEO of Agency Network Exchange, which represents thousands of independents. “You may not be buying a liability policy anymore, but you may need a cyber policy

BY THE NUMBERS

1.9 billion

Gallons of fuel that could potentially be saved by driverless cars

1,600

National road fatalities that could be prevented each year by using driverless cars

$3,000

Average potential cost savings per household Sources: MapsofWorld.com, EIA, Forbes, BizTech Magazine, Conference Board of Canada

or an operator policy or any number of new insurance products.” For that reason, he says, the role of the independent agent is safe. “The reality is, there’s still going to be a huge need – maybe even a greater need – for professional insurance agents and risk managers to help owners of driverless cars navigate what will be a much more complicated insurance world than it is today,” Tiene says. “It may actually create more work.”

www.insurancebusiness.ca 11

10-11_News Analysis-SUBBED.indd 11

14/08/2015 6:04:42 AM

PRODUCTS

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

ACE

Chubb

The $28.3 billion acquisition is set to create a global P&C leader of colossal size; Chubb will continue to operate under its own name

ALIGNED Insurance

Precept Insurance & Risk Management

The purchase allows ALIGNED to expand its offerings in management liability, property insurance, commercial general liability and risk management

Anthem

Cigna

If approved, the $54.2 billion deal will create the largest health insurance provider in the US by membership

Financial Horizon

Excel Private Wealth and Certika Investments

The two deals will give Financial Horizons approximately $2 billion in assets under management in the Quebec and Ontario markets

Hub Insurance

Gamble & Associates Insurance

The transaction will incorporate Gamble into Hub Insurance Ontario, which will double its offices and increase staff to 650 employees in the province

Marsh & McLennan Agency

Vézina Assurances

Strategic acquisition of the Montreal-based independent brokerage represents MMA’s entrance into Canada

Meiji Yasuda Life Insurance

StanCorp Financial Group

The Japanese firm bought the US group for $5 billion in what is reported to be a ‘friendly’ transaction

Sun Life Financial

Bentall Kennedy Group

Sun Life paid $560 million for the firm in an attempt to diversify its asset management and investment arm

New app to aid in global emergencies

Active Care Management [ACM], an Ontario-based global provider of emergency assistance services, medical case management and claims processing, has announced the launch of TravelAid.The GPS-enabled app was designed to assist Canadians with medical concerns, no matter their location. Features include immediate assistance from ACM staff during an emergency, directions to the nearest hospital or medical center, and customer support in the claims submission process. In addition, users enjoy a more seamless claims process, which boasts such provisions as the ability to submit a bill via a smartphone photo.

Chubb launches broker marketing app

ACE announces management changes

Less than a month after its $28.3 billion purchase of Chubb sent a shockwave through the property and casualty industry, ACE is already making moves. The insurer has announced that John Lupica will serve as vice chairman of the parent company and co-president of the North America insurance division, along with Dino Robusto, who will also serve as the executive vice president of the parent company. ACE also has named Paul Krump, currently president of personal lines and claims for Chubb, to the role of executive vice president for global underwriting and claims for the parent company.

Many insurance providers develop mobile apps to assist policyholders, but Chubb has launched one to make brokers’ lives easier. “Essentially, the app houses of all our brochures, highlight sheets and videos in a digital format, and allows brokers access to Chubb resources, such as our corporate website, access to reporting a claim and our @ChubbCanada broker site, which is an online portal to view customers’ policy information, all with the swipe of a finger,” said Melanie Wilcox, assistant vice president and Canadian zone marketing manager for Chubb Personal Insurance.

www.insurancebusiness.ca

12-13_Intelligence-SUBBED.indd 12

14/08/2015 5:16:58 AM

PEOPLE

PEOPLE Insurer launches new operational risk cover

In response to increased regulatory and financial pressures, XL Catlin is launching customized operational risk coverage in Canada and around the world. “Essentially the solution helps business leaders put the right capital structure in place to support their businesses effectively,” said Gerard Bloom, chief underwriting officer for financial institutions. “Being able to build insurance into both capital models and internal financial reports also helps leaders discharge their Pillar 2 obligations by ensuring the right strategies are in place to manage their risk.”

Insurance duo pioneers flood insurance tool

Rogers Insurance has partnered with Sharp Insurance to launch Floodinsurance.ca, an online tool designed to provide information on overland water insurance for Albertan homeowners. Floodinsurance.ca not only highlights consumers’ various options for coverage, but also includes weather advisories, a blog on flood-related topics and a quick quote feature with a supplemental chat function that connects homeowners with an expert to discuss insurance options. The site also searches for rates and delivers quotes to users in less than an hour.

Agency software provider releases new performance measurement tool

Applied Systems has released Applied Performance Management 2015, which will offer insurance executives greater visibility into operational performance based on their organizational structure, clients and geographies. “With Applied PerformanceManagement 2015, insurance executives gain additional levels of organizational insights, enabling users to extend traditional reporting from ‘what happened’ to ‘why something happened,’” said Michael Howe, senior vice president of product management for Applied Systems.

NAME

LEAVING

JOINING

NEW POSITION

Don Bailey

Marsh US and Canada

Marsh LLC

President of global sales

John Barclay

N/A

South Western Group

Branch manager

Scott Egan

Towergate Insurance

RSA Insurance Group

Executive director and group CFO

James Franson

Arch Reinsurance Co.

Validus Americas

President

Doug Guzman

N/A

Royal Bank of Canada

Group head of wealth management and insurance

Tom Phelan

Willis Group Holdings

JLT Re (North America)

Senior vice president in North America

Industry association appoints new CEO

The Insurance Brokers Association of Ontario [IBAO] has announced the appointment of Jim Murphy as the organization’s new CEO. Murphy joins the association from the Canadian Association of Accredited Mortgage Professionals, where he has served as president and CEO since 2007. This appointment reflects the IBAO’s first official successor to Randy Carroll, who departed suddenly from the position last September. Colin Simpson, CEO of Independent Brokers Resources, had been acting as interim CEO since Carroll’s departure. The IBAO represents 12,000 P&C insurance brokers throughout the province of Ontario.

Allianz appoints new Canada chief

Allianz Global Corporate & Specialty [AGCS], the specialist corporate insurer overseeing Allianz Group, has appointed Ulrich Kadow as Canada’s chief agent, beginning immediately. He most recently served as global head of package and multiline, where he helped develop “the mid-market property, liability and engineering business in Canada, Asia, South Africa, Australia and Denmark.” Kadow will work out of the organization’s Toronto office, reporting to AGCS president and CEO Arthur Moossmann. He will build upon Allianz’s Canada initiatives in the mid-market package and multiline product, entertainment practice, and such financial lines as professional indemnity, directors & officers and errors & omissions.

www.insurancebusiness.ca

12-13_Intelligence-SUBBED.indd 13

14/08/2015 5:17:03 AM

UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Insurance could be ‘Uber’-ized, warns Lloyd’s chief

Technology and big data analysis trends that have disrupted the transportation trade also threaten the insurance industry, according to Lloyd’s of London CEO Inga Beale. Data-rich companies like supermarkets and social media networks could branch out into other mainstream retail and wholesale policies, and new competition could arrive in a matter of one to two years. “We need to focus on covering the complex, bespoke and innovative risks that no one else can,” said Beale, “because the less complex risks are going to become commoditized pretty fast.”

Insurer partners with brokers on tech tool

Guarantee Gold has partnered with brokers to develop a mobile app that alerts users to inclement weather and offers tailored suggestions to protect property. National VP Marilyn Horrick describes a situation where a client with a second home “can get the notification and contact a service provider to say, ‘Can you clear the snow off of our roof? I just received notice that it’s necessary to safely clear snow from roofs to prevent them from collapsing or bearing any snow load damage.’” It also features claims reporting and management tools.

Independent brokerages are underutilizing technology

According to a new study conducted by Velocify, not only do “relatively few agencies” enjoy the full benefits that technology has to offer, but most tools remain underutilized by the industry as a whole. In particular, the

study found that larger agencies were 93% more likely to adopt technology than organizations with 10 or fewer employees, and direct-to-consumer trumped independents by 26%. “A lot of agencies leave it up to the agent to follow up with leads, but in many cases, they fall through the cracks or get lost in the system,” said director of research Jorge Jeffery.

Insurance impact of driverless cars seriously downplayed

Senior insurance executives in the US are skeptical about the potential transformation that self-driving cars will trigger on the auto insurance industry, according to a KPMG survey. It found that 84% of executives don’t expect autonomous vehicles to have a significant impact on their businesses until 2025, while 42% expect a significant impact in six to 10 years. The views run contrary to KPMG’s own stance. “No one has a crystal ball that can predict the future, but we are convinced that a period of unprecedented change has begun,” said Jerry Albright, principal in KPMG’s actuarial and insurance risk practice.

CSIO updates eSignatures Vendor Dashboard

The Centre for Study of Insurance Operations [CSIO] has added two vendor companies to its eSignatures Vendor Dashboard. The dashboard allows brokers to view vendors’ products side-by-side and examine their legal, operational and pricing specifications. “This expansion of the eSignatures Vendor Dashboard increases its value to our members as a research tool when investigating the solution that best fits their business needs,” said Catherine Smola, president and CEO of CSIO.

What’s hot in the insurance IoT? New technologies offer opportunities for brokers to improve customer service Customer satisfaction with the insurance industry is low and seems to be getting lower – recent studies show that only 42% of customers think their insurer can be counted on to provide good service. To drastically improve the customer experience, insurance companies can adopt leading-edge technologies to support customers in areas they value. While the industry is highly regulated, which slows the adoption of innovations, Canadian insurance providers seem to be realizing the importance of advanced technology solutions. In fact, The Financial Services Commission of Ontario has already approved 11 insurers to offer usage-based insurance products. Today, the insurance industry is at the forefront of transforming the business using the Internet of Things [IoT], where technologies have become instrumented, interconnected and intelligent. More specifically, insurers are beginning to integrate advanced technologies like telematics to align to consumer preferences. Telematics capture real-time data to allows insurers and brokers to build tailored services based on details previously unavailable, such as individual driving patterns. Using this data, insurance companies can deliver customized rates and discounted offerings that produce – and increase – positive customer interactions. Experts have developed a list of effective ways auto insurance companies can leverage IoT technologies like telematics

www.insurancebusiness.ca

14-15_Tech Update-SUBBED.indd 14

14/08/2015 5:17:38 AM

to increase consumer loyalty and gain a competitive advantage, including pay-asyou-drive offerings that allow for personalized premiums, geo-fencing capabilities to encourage safe driving and value-added services based on the prediction of automobile accidents. As evidenced by a number of projects, telematics is more than an abstract idea. Using a pay-as-you-drive platform, Canada-based Baseline Telematics offers insurers and brokers the ability to market highly differentiated products for their customers. Its telematics platform pulls personalized data to generate premiums on an individualized basis. Rather than creating products to comply with regulations or to offset historical claims, Baseline helps insurers and brokers modify products and services to meet specific needs. There’s no question that IoT innovations are disruptive. However, they also create opportunities to leverage technology to help solve big problems in the insurance industry, and they supply organizations with an arsenal of new opportunities that can expand business offerings, improve existing processes, increase efficiency and reduce costs – all while creating opportunities to improve customer satisfaction. Contributed by Christine Haeberlin, insurance business development executive, IBM Canada

ADVANTAGES OF TELEMATICS Pay-as-you-drive: Allows insurers and brokers to adjust premiums based on real-time driving data Geo-fencing: Location-specific data that incorporates traffic updates and road quality information, encouraging safe driving and allowing for add-on coverage opportunities based on consumers’ desired driving locations Value-added services: By using telematics to analyze data from brakes, seat belts, air bags and more, insurance providers can predict an automobile accident and initiate value-added services such as emergency response

Q&A

Jorge Jeffrey

Embracing new technologies

Director of research VELOCIFY

Fast fact More than 1,000 insurance brokerages took part in Velocify’s State of Techsurance 2015 survey, designed to help brokers understand what technologies topperforming companies are investing in

The Velocify State of Techsurance survey revealed that larger, more successful brokerages tend to be more frequent users of sales and marketing technology. Can we assume brokerages that regularly update their technology can better satisfy customer needs? I think that’s definitely a conclusion that can be made. I think one of the things we saw in the research, though, is that there’s never an absolute. Just because somebody’s using technology, it doesn’t necessarily mean they’re going to more effectively satisfy the customer’s needs – but there’s definitely that increased likelihood. It’s important to note that it’s not enough to just get the technology, but to make sure that it’s fully implemented, that the entire brokerage and everybody who will be using it is fully bought in and is maximizing the potential of that technology so that they do become the best at satisfying their customers’ needs.

What advice would you offer to brokerages unsure as to where to start upgrading their technology? I think the fact that some of the smaller or independent brokerages are a little behind on implementing and using technology doesn’t mean that they can’t catch up, because even the directs or the larger brokerages aren’t fully utilizing all of these technologies. So if any company is able to come up with a strategy for choosing the best technology to implement and to fully implement it, they can gain ground very quickly, and they also have other advantages that their competition doesn’t have. With independent brokerages, for example, they have that personal touch that a direct agency may not be able to provide. So if they even the playing field with the technology … they can benefit greatly from the technology, possibly even more than the larger brokerages. But there is no one technology that everybody should have. It is dependent on where they already have strengths and weaknesses and … there are different factors that influence whether you might benefit more from [a particular] type of technology, [such as] where you’re getting your leads, what your lead sources are, what type of insurance products you sell, etc.

How can smaller brokerages afford or justify the cost of integrating technology into their businesses? I would say, how can they not afford to do it? Technology is not something you can continue to ignore. As technology, businesses and insurance brokerages evolve, I think fewer and fewer of them can get away with the mom-and-pop approach to selling insurance. I think how you really justify the cost is by looking at the benefits of it and saying, “If I get even a 5% increase in my conversion rate, or if my revenue increases by this small percentage, it already pays for whatever investment I’m making into these technologies.” And it becomes pretty clear right away that the benefits far outweigh the cost.

www.insurancebusiness.ca

14-15_Tech Update-SUBBED.indd 15

14/08/2015 5:17:42 AM

UPFRONT

MGA UPDATE

Planning for MGA association underway The industry leader spearheading AAMGA’s counterpart details the substantial progress

Woodall praises AAMGA for its cohesiveness, and says the process of forming its Canadian counterpart has already forced the fragmented nature of Canadian MGAs to “disappear.” “The Canadian part may not be 100% formalized as of yet, but the bond is there between MGAs to make it work and make it go forward,” he says. “It’s clearly adding to our level of professionalism, and when you have companies like the Co-operators that want to invest in members of our group, that’s a clear reflection of how highly they view us.”

“The bond is there between MGAs to make it work”

Although Canada’s MGA association has yet to be formally established, its members are already casting wide influence. “We have over 10 MGAs in Canada that have now joined the American Association of Managing General Agents [AAMGA] as full members, and we’re talking with a number of other MGAs as well,” says Mark Woodall, president and CEO of Special Risk Insurance Managers. “We’re also talking with a number of

NEWS BRIEFS

other MGAs about the benefits of membership, and numerous MGAs are sending Canadianbased underwriters to some of the training facilities in the US created by AAMGA.” Woodall is leading this crusade with the help of Grant Kimball from Angus Miller Insurance. Together, they are working in conjunction with the AAMGA to ensure a well-founded establishment of its Canadian arm and facilitate ongoing collaboration.

SUM Insurance acquires Morin Elliott

SUM Insurance, an MGA specializing in casualty products, has announced it is acquiring Montreal-based MGA Morin Elliott. Morin Elliott shares the same founder as Elliott Special Risks, where SUM’s leadership team originated. “There was a strong incentive to bring together the complementary product lines,” said Jeff Somerville, SUM’s president and commercial general liability practice leader. “SUM is very much a casualty and liability-focused MGA, and this gives us competency and fantastic results in property as well.”

The association hopes to tackle such issues as professionalism, licensing, engaging with regulatory bodies and establishing standards for new entrants. While Woodall and other industry leaders have expended tremendous effort to make these strides, they feel the benefits of a robust MGA association make it all worthwhile. “It was a lot of work to get it off the ground, but it’s been like a snowball in the sense that you can now feel it gaining momentum and feel it growing,” Woodall says. “We’re not just a small secondary component of the market anymore – we’re a dominant portion of it. Going forward, we have to meet our goals and show that we’re no longer second-class citizens.”

Canadian MGA rebrands to emerge as a carrier

Elliott Special Risks has begun to operate as Markel, following an acquisition by Markel Corporation in 2009. Accompanying this rebranding is a strategic transformation. “In the past, we would write the most difficult area of a business ... and then the broker had to go to someone else to have the property and casualty placed around it,” said Karen Barkley, president of Markel Canada. “What we’ve done is expanded our products ... to incorporate the whole package, instead of selecting against ourselves and just writing the tough portion of the risks.”

www.insurancebusiness.ca

16-17_MGA update-SUBBED.indd 16

14/08/2015 5:18:28 AM

Q&A

Clinton D’Souza Senior consultant, insurance strategy

Opportunities for MGAs around cyber coverage

DELOITTE CANADA

Fast fact D’Souza holds a Chartered Insurance Professional designation through the Insurance Institute of Canada and has more than 20 years of insurance industry experience in commercial lines underwriting and marketing

How fast has the cyber insurance space in Canada grown?

What are the key opportunities available for MGAs as far as cyber insurance is concerned?

The cyber insurance space in Canada is growing; it’s just maybe not growing as fast as in some other jurisdictions, such as the US and Europe, where companies are required to report data breaches. At the moment only Alberta has a mandatory reporting law, which affects organizations in that province. Federally, there are talks underway about mandatory reporting for companies that have a data breach. The act that would incorporate these provisions is the Personal Information Protection and Electronic Documents Act [PIPEDA], which would have a number of provisions for organizations covered by federal law, including mandatory notification to victims and notification to the federal privacy commissioner when personal information has been lost or stolen.

We believe a mature approach to risk assessments that is tailored to the specific customer and [their] industry will be where an MGA can take advantage [of] cyber insurance. For example, Deloitte offers support in identifying cyber risk specific to industry and size. A small retailer who uses a third-party payment system faces very different risks than a manufacturer, whose industrial control systems, if breached, may cause physical damage or even loss of life. Most MGAs work in the Lloyd’s market, where complex and innovative products are designed, and cyber insurance is a good fit for that type of market offering.

How big do you envision the space becoming in Canada over the next few years?

To this end, they should be looking for a partner who can provide a ‘one-stop shop’ with core services, including pre-breach risk assessment support and post-breach incident response services – a partner who understands not just what the issues are, but how best to communicate them so that their customer understands and can act upon them. [Also], a partner who can help their customers greatly reduce their cyber risks, providing more actionable insights from the process and information collected during that process, can help the MGA take advantage of those opportunities.

Canada is one of the most wired countries in the world. Statistics Canada reports that in 2013, 89% of Canadian businesses used the Internet, and nearly every enterprise used some form of information technology. The Canadian Internet Registration Authority found that 87% of Canadian households were connected to the Internet in 2013, the second highest rate among the G7 nations. The potential for this space in the next few years will be large based on … where things are going.

BMS Canada launches Lions Gate MGA

BMS Canada Risk Services, the Canadian arm of Minova Insurance-owned BMS Group, has announced the launch of Lions Gate Underwriting, a specialist MGA. Lions Gate, set to begin underwriting immediately, will operate as a Lloyd’s coverholder and will underwrite “on behalf of large A-rated global insurers.” Its specialty lines include travel medical insurance, war risk & terrorism insurance, professional liability, cyber and privacy, and personal lines. Industry professionals familiar with BMS Canada welcome the MGA’s launch.

What crucial factors should MGAs be aware of before deciding to take advantage of those opportunities?

MGA acquisition moves insurer into new business

Advisors will have the chance to follow leading insurers by entering the wealth management business, thanks to Financial Horizon’s acquisition of Excel Private Wealth and Certika Investments. Canada’s leading insurers have increasingly been acquiring wealth management businesses in order to lessen the effects of the low-interest-rate environment. Financial Horizons is currently in talks with numerous other mutual fund firms; the MGA is looking to expand this business across Canada, and hopes to reach $8 to $10 billion AUM.

South Western Group appoints branch manager

John Barclay, president and CEO of South Western Group, has announced the appointment of Ghazal Hamid to branch manager of its Toronto office. Hamid was previously the marketing manager, and will continue to play a significant role in developing and executing South Western Group’s corporate and regional branch strategies. He will be tasked with achieving market share objectives while managing broker and vendor relationships and overseeing the continued growth of the property and casualty business line.

www.insurancebusiness.ca

16-17_MGA update-SUBBED.indd 17

14/08/2015 5:18:33 AM

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email insurancebusiness@kmimedia.ca

Budgeting for cyber insurance Helping your clients understand cyber crime is the first step in protecting them from this very real – albeit intangible – risk, writes Michael Loeters THE INSURANCE industry in Canada has struggled with the successful positioning of cyber insurance coverage as part of the commercial insurance portfolio. Other than insureds in verticals such as healthcare, financial services, retail and education, the conversion rate of discussions to quotes and quotes to binds has remained quite low. This is despite the onslaught of information, articles and underwriter presentations – not to mention the constant flow of high-profile breaches. The truth is that this is the normal evolution of a new insurance product in the marketplace. First of all, it is a product that came into the market not because of a widespread demand, but rather due to the demand of a few select segments that were facing increased regulatory and balancesheet pressure. As an industry, we are now trying to broaden the appeal of this product to those who have not yet experienced this same pressure. Second, clients are not opposed to spending money on additional balancesheet protection as long as they clearly understand the magnitude of the risk and its impact. Why should they now finance this risk with an insurance policy as opposed to continuing to self-insure? Dealing with this objection has been one of the biggest stumbling blocks for brokers. Quantifying cyber risk requires an insurance professional to think about their insureds’ risks differently. What data do they hold? What contractual obligations do they have to protect that data? How is

their supply chain set up from a network perspective? How would operations be impacted by a network outage, loss of data or privacy breach? As insurance brokers, we are comfortable talking about fires, windstorms and product liability. We have been talking about it for years, and we can illustrate our points with a lot of existing claims. Insureds do not question their exposure to these perils because they have become part of the standard insurance program. The templates used by lawyers for leases and contracts

to someone else? What would be the impact on the value of the company if they lost access to the data, or if all that data was public knowledge? The answers are not surprising. The next step is quantifying the exposure. Many insurance carriers have created simple tools brokers can use to sit down with their insureds and quantify the risk in terms of cost impact. These tools are not perfect, but that isn’t the point. We have had our insureds filling out profit worksheets for years, knowing that it is our best guess of future exposure. Take one of these tools from an insurer, get comfortable with it, and use the process of completing it with an insured as an opportunity to have an intelligent conversation about their operations and risk profile. You are both likely to learn a lot. Finally, be prepared to deal with the common objections you are going to hear: We have a firewall and antivirus protection. We are not high-profile. It has never happened to us. View these not as objections, but rather requests for more information. The Internet is full of high-quality publications that will give you all the

“You have to help your insured understand that no matter what business they are in, they are a data company” already include the requirement for this coverage, so they are part of the insurance program by default. Not so for cyber insurance. So how do brokers successfully position cyber coverage as a critical part of an insured’s portfolio of coverage? First, you have to help your insured understand that, no matter what business they are in, they are a data company. Data is one of the most important assets a company holds today – from their intellectual property and customer data to their market information and financial records. How long could they function without this data? If it is valuable to them, why would it not also be valuable

credible statistics and information you need. Insureds have sprinkler systems and alarm systems, and have never had their premises burn down – yet they still buy property insurance. Qualify and quantify the risk, then tie it back to the balance sheet like you have always done, and you will be successful in getting your clients to adopt cyber insurance as part of their portfolios. Michael Loeters is the vice president and cyber insurance team leader at BFL Canada Risk and Insurance Services, and has provided insurance and risk management services to a wide range of industries over his 21-year career.

www.insurancebusiness.ca

18-19_Opinion-SUBBED.indd 18

14/08/2015 5:18:49 AM

SWGINS.COM Your specialty insurance provider

18-19_Opinion-SUBBED.indd 19

14/08/2015 5:18:56 AM

PEOPLE

INDUSTRY ICON

EXPANDING HORIZONS Peter Eastwood, global president and CEO of Berkshire Hathaway Specialty Insurance, discusses the insurance giant’s progress to date on what he describes as a ‘decades-long journey’ THE NAME Berkshire Hathaway has long been synonymous with success in global business. It’s a name inextricably linked with investor and business magnate Warren Buffett, who, at 84, continues to serve as the holding company’s chairman, CEO and president. According to its 2014 annual report, total revenue for Berkshire Hathaway and its subsidiaries last year was approximately $194.7 billion. Forbes magazine, in its most recent ranking of the world’s biggest public companies, put the Nebraska-based group at number five. While 60 subsidiaries involved in a variety of industries have contributed to these staggering results, 27% of Berkshire Hathaway’s net earnings are in the insurance space, where the group has been a player since 1940. A rapidly growing arm of the Berkshire Hathaway family is Berkshire Hathaway Specialty Insurance [BHSI], a company launched in April 2013. Globally headquartered in Boston, Massachusetts, BHSI is principally focused on commercial lines and has grown exponentially within a very short time. “We’ve gone from four people on the team to 585 people today,” says Peter Eastwood BHSI’s global president and CEO. “From a geographic standpoint, we initially launched the business in the United States, and we have since entered five other countries” – Canada, Singapore, Hong Kong, New Zealand and Australia.

Eastwood’s career in insurance has spanned a quarter of a century; before he was presented with the opportunity to build BHSI, he oversaw AIG’s property and casualty insurance businesses across the Americas. “I was fortunate to be introduced to the industry and to AIG in 1991 by a long-standing family friend who, at the time, was a broker at Marsh in New York,” he says. “When I graduated, in a fairly

have a finish line,” he says. “Everything that gets done in this organization has a long-term perspective around it. We’re here to build a long-term, focused, diverse – both by product line and geography – principally commercial property and casualty insurance business.” As for determining which markets BHSI will operate in, Eastwood says the criteria are twofold. First, the company looks for countries where it can write business that

“We haven’t thought about essentially timing the insurance cycle and launching the business in a highly opportunistic way, but building the business and positioning it for success over the long term” challenging economic environment, he was nice enough to introduce me to some people at AIG. I’ve enjoyed a lot of fun and have had the pleasure of being in the business now for 24 years.”

Long-term strategy Eastwood emphasizes that BHSI’s strategy is very much long term. “In the world of Berkshire Hathaway, ‘long term’ I would describe as ‘forever.’ We effectively don’t

adds value to a country’s indigenous risks and exposures. Second, Eastwood cites the importance of catering to the needs of multinational customers. “I would describe us as building an international company that has global capabilities … there are customers that have exposures that cross borders,” he says. “So where there’s a need for us to satisfy that multinational customer’s needs, and particularly where there’s a need for a locally

www.insurancebusiness.ca

21-23_Industry Icon-SUBBED.indd 20

14/08/2015 5:19:54 AM

PROFILE Name: Peter Eastwood Company: Berkshire Hathaway Specialty Insurance Title: Global president and CEO Years in the industry: 24 Fast fact: Before starting BHSI in 2013, Eastwood served as CEO and president of AIG Property Casualty in the Americas

www.insurancebusiness.ca 21

21-23_Industry Icon-SUBBED.indd 21

14/08/2015 5:20:02 AM

PEOPLE

INDUSTRY ICON admitted policy, we want to be in a place to have a network to do that.” Eastwood says market conditions haven’t factored into the timing of BHSI’s launches into new international markets. “We think about this as a long-term play,” he says. “We haven’t thought about essentially timing the insurance cycle and launching the business in a highly opportunistic way, but rather building the business and positioning it for success over the long term.” He says BHSI has some key characteristics that position it for success in the international markets in which it has a presence. “We’ve got a very large and very strong risk-taking balance sheet – in fact, the largest balance sheet in the insurance

solution-oriented and we put real pace behind delivering a solution back to the broker and ultimately to that broker’s client, that combination … is a winning formula.” Eastwood also stresses that accuracy is essential to BHSI’s execution of its vision, which involves “making sure that everything that we deliver is what it is we promised we would deliver, and making sure there’s a high degree of accuracy with it.”

Times ahead Casting his mind forward, Eastwood identifies profitability and profitable growth as the greatest challenge for the global insurance industry now and in the foreseeable future.

“We’ve got a very large and very strong risktaking balance sheet – in fact, the largest balance sheet in the insurance industry globally” industry globally. It’s got wonderful financial strength ratings; we’ve got a brand that represents some very positive things … and we’re part of a larger organization – Berkshire Hathaway – that really knows and values the insurance business.” Eastwood emphasizes that BHSI wants to be a solution-oriented organization. “Our underwriters go into the marketplace every day, thinking about the opportunities that our broker partners are presenting to us, with the objective of finding a solution and finding a way to say ‘yes,’ and not thinking about approaching the business from a rigidly defined risk appetite standpoint where, effectively, a box has been built and we [don’t] step outside of the box.” He also stresses the importance of his global BHSI team being able to move swiftly. “I want to make sure that the decision-making … is done at a rapid pace, and that involves us hiring very talented people and then empowering them locally in their engagement with both brokers and customers to be able to make decisions,” he says. “My belief is that if we take the very large balance sheet that we have, if we’re

“We’ve got an external environment where the supply-demand equation really isn’t in favour of the seller,” he says. “We’ve got high levels of competition in the business, and so those that are best at underwriting and at executing on their strategy are the ones that will win.” The current market conditions are making this prospect even more challenging, he adds. “You’ve obviously got a somewhat long-standing low-interest-rate environment as well, and so companies’ ability to get meaningful investment returns [is] muted.” However, he still sees an opportunity for BHSI to stand out from its competitors. “One of the most important things for us – and, I think, for the success of our business – is to have simplicity as an overarching guiding principle … keeping things as simple as we can, in terms of the way decisions are made, in terms of the way that reporting relationships exist in the organization, in terms of policy forms [and] in terms of the way that claims are handled,” he says. “If we keep simplicity in mind at all times, I think in a complex world, we’ve got a chance to differentiate ourselves.”

BHSI AT A GLANCE

SPECIALTY COVERAGE BHSI provides commercial property, casualty, healthcare professional liability, executive and professional lines, surety, travel, programs, and homeowner’s insurance to customers worldwide

GROWING GLOBALLY BHSI has underwriting and service teams worldwide in the US, Canada, Singapore, Hong Kong, Australia and New Zealand

STRENGTH IN NUMBERS BHSI has gone from having four team members to 585 team members across the world within two years

HIGHLY RATED BHSI’s coverages are underwritten on the paper of Berkshire Hathaway’s National Indemnity group of insurance companies, which hold financial strength ratings of A++ from AM Best and AA+ from Standard & Poor’s

www.insurancebusiness.ca

21-23_Industry Icon-SUBBED.indd 22

14/08/2015 5:20:05 AM

You can expect more at Trisura.

a step above www.insurancebusiness.ca 23

21-23_Industry Icon-SUBBED.indd 23

14/08/2015 5:20:10 AM

FEATURES

COVER STORY: ELITE BROKERS

BROKERS

2015 THIS IS our third year searching for Canada’s top brokers, and our survey attracted entries from all corners of the country. As expected, those with big numbers rose to the top of the list. But there are many other qualities that make for an elite broker.

Methodology In order to rank performance, we didn’t simply invite applications from the most advanced brokers and senior execs working at high-profile firms. We also wanted to

Insurance Business Canada crunched the numbers to determine the 30 brokers who are at the top of their game – and at the top of the Canadian insurance industry

reward brokers from smaller firms and niche industries who were punching above their weight and achieving big things. Our yardstick for success included: • Premium income • Revenue per client • Industry awards and recognition • Number of policies written • Book of clients As you’ll see, we didn’t simply rank the top brokers in terms of gross income. We also broke down the top brokers in each available

province, brokers who’ve put together the biggest book of business and wrote the most policies, and the top brokers by average revenue per client and per policy. Finally, a place on the Elite Brokers list is clear recognition of each broker’s professional standing as one of the top brokers in the Canadian insurance market. However, in interviews with our top brokers, we heard again and again that they couldn’t have achieved what they did without a strong network of support staff and stakeholders.

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 24

14/08/2015 5:20:39 AM

E BROKE LIT

2 015

THE TOP 30 RANK

NAME

COMPANY

REVENUE

LOCATION

Danny Sgro

Jones DesLauriers Insurance Management

$3.15 million

Mississauga, Ont.

Wendy Wildeman

Rogers Insurance

$2.8 million

Calgary

Kevin Stedman

Jones DesLauriers Insurance Management

$2.68 million

Mississauga, Ont.

Chris Sikorski

Renfrew Insurance

$2.05 million

Calgary

Mark McKinley

Lloyd Sadd Insurance Brokers

$1.8 million

Edmonton

MORE THAN $1 MILLION IN REVENUE RANK

NAME

COMPANY

LOCATION

Bryce Kumka

Rogers North Insurance

Fort McMurray, Alta.

Gillian Van Kempen

Best Buy Insurance

Ajax, Ont.

Steve Woolridge

Sound Insurance Services

Toronto

Joe Palmer

Palmer Atlantic Insurance

Hartland, NB

Bill Moretti

Tredd Insurance Brokers

Toronto

Marv Martin

Rogers Insurance

Calgary

$500,000 – $1 MILLION IN REVENUE RANK

NAME

COMPANY

LOCATION

Colin Matychuk

Hub International

Winnipeg

Rick Messier

Paisley Manor Insurance Brokers

North York, Ont.

Mark McKay

Highcourt Partners

Toronto

Mike O’Grady

O’Grady & Associates Insurance Services

Tillsonburg, Ont.

Brock Longworth

Cornerstone Insurance Services

Prince Albert, Sask.

Gordon D. Clark

Gordon D. Clark Financial Services

Chilliwack, BC

Brian Jardine

Renfrew Insurance

Calgary

Mark Jackson

The Insurance Market

Pickering, Ont.

Linda Colgan

Bryson & Associates Insurance Brokers

Ajax, Ont.

Debbie Arnold

Sound Insurance Services

Toronto

Tony Thompson

Hub International

Burnaby, BC

BY THE NUMBERS TOP 5

Total policies: Total clients: Average revenue: Total revenue:

3,592 1,538 $2.5 million $12.48 million

TOP 10

Total policies: Total clients: Average revenue: Total revenue:

12,642 8,459 $1.96 million $19.66 million

TOP 30

Total policies: Total clients: Average revenue: Total revenue:

27,811 17,300 $1.06 million $31.7 million

$300,000 – $500,000 IN REVENUE RANK

NAME

COMPANY

LOCATION

Chris McNeil

Sylvan Agencies

Sylvan Lake, Alta.

Sheila E. Thompson

Rosenberg & Parker of Canada

Toronto

Marsha Jones Dooley

Jones-Dooley Insurance Brokers

Ajax, Ont.

Michael Abraham

Paisley Manor Insurance Brokers

Toronto

Jonathan Hines

Wilson Insurance

Moncton, NB

Tereen Mowrey

Henderson Insurance Agency

Moose Jaw, Sask.

Brad Toole

Wilson Insurance

Fredericton, NB

Lee Sherback

Hub International

Calgary

www.insurancebusiness.ca 25

24-35_Elite brokers-SUBBED.indd 25

14/08/2015 5:20:45 AM

FEATURES

COVER STORY: ELITE BROKERS

TOP BROKERS BY PROVINCE Even though some of these brokers didn’t quite make the top 30 nationally, they’re all at the top of the game in their respective provinces ELITE BROKERS BY PROVINCE

ALBERTA Brokers in Top 30: 8 Average revenue: $1.72 million

BRITISH COLUMBIA Brokers in Top 30: 2 Average revenue: $606,000

SASKATCHEWAN Brokers in Top 30: 2 Average revenue: $540,287

TOP BROKER: BRITISH COLUMBIA GORDON D. CLARK

President, Gordon D. Clark Financial Services

Gordon Clark has been in the insurance game for 29 years, starting as an advisor in 1986. In 1995, he established Gordon D. Clark Financial Services in Chilliwack and the Fraser Valley. A specialist in life insurance, retirement planning and group life and health benefits, Clark serves a clientele that ranges from business owners to young people to retirees. He says the secret to his success is simple: “Having clients’ interests first and helping them achieve financial independence – at the same time helping employers protect and retain employees in Canadian small business.” Clark is also dedicated to charitable work with organizations like Habitat for Humanity, and has done humanitarian work in countries like Cambodia, Costa Rica, Chile and Mexico.

NEW BRUNSWICK Brokers in Top 30: 3 Average revenue: $659,268

MANITOBA Brokers in Top 30: 1 Average revenue: $1 million ONTARIO Brokers in Top 30: 14 Average revenue: $1.11 million

TOP BROKER: NEW BRUNSWICK JOE PALMER President and CEO, Palmer Atlantic Insurance

Joe Palmer handily took the top slot for New Brunswick, racking up more than $1.3 million in revenue in 2014. Palmer Atlantic specializes in trucking insurance, and since 1980 has been the leading truck insurance and risk services provider in Atlantic Canada. But becoming a leader in any market is more than blind luck, Palmer points out. “It certainly takes hard work and organizational skills,” he says. “You need to be good with people and be able to adapt to different clients and personality styles. Technical knowledge is important, but how you deliver services and help add value to clients is the real key. Clients need to see you as their trusted partner – not just a broker who issues pink cards, certificates and insurance policies.”

TOP BROKER: SASKATCHEWAN BROCK LONGWORTH Senior account executive, Cornerstone Insurance Services

A commercial broker, Longworth specializes in contractors’ insurance policies. After a decade and a half in the game, he knows the value of being prepared for change. “I think more than anything these days, what it takes to be an elite broker is recognizing and embracing new technology – and utilizing the tech that’s available to connect with customers the way they want to be connected with,” he says. Longworth has worked to launch online quote capabilities, a mobile phone app, a live-chat feature on Cornerstone’s website and a new social media strategy. “We’re finding more than ever that people want to communicate with their broker differently, and they want to have access via the formats they want.”

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 26

14/08/2015 5:20:52 AM

E BROKE LIT

2 015

British Columbia RANK

NAME

COMPANY

LOCATION

Gordon D. Clark

Gordon D. Clark Financial Services

Chilliwack

Tony Thompson

Hub International

Burnaby

Alberta RANK

NAME

COMPANY

LOCATION

1 2 3 4 5 6 7 8 9

Wendy Wildeman Chris Sikorski Mark McKinley Bryce Kumka Marv Martin Brian Jardine Chris McNeil David Mousseau Lee Sherback

Rogers Insurance Renfrew Insurance Lloyd Sadd Insurance Brokers Rogers Insurance North Rogers Insurance Renfrew Insurance Sylvan Agencies Procom Insurance Brokers Hub International

Calgary Calgary Edmonton Fort McMurray Calgary Calgary Sylvan Lake Red Deer Calgary

Mo Radmacher

Lloyd Sadd Insurance Brokers

Calgary

Saskatchewan RANK

NAME

COMPANY

LOCATION

1 2

Brock Longworth Tereen Mowrey

Cornerstone Insurance Services Henderson Insurance Agency

Prince Albert Moose Jaw

Mike Hudey

Henderson Insurance Agency

Regina

COMPANY

LOCATION

Ontario RANK

NAME

Danny Sgro

Jones DesLauriers Insurance Management

Mississauga

Kevin Stedman

Jones DesLauriers Insurance Management

Mississauga

Gillian Van Kempen

Best Buy Insurance

Ajax

Steve Woolridge

Sound Insurance Services

Toronto

Bill Moretti

Tredd Insurance Brokers

Toronto

Rick Messier

Paisley Manor Insurance Brokers

North York

Mark McKay

Highcourt Partners

Toronto

Mike O’Grady

O’Grady & Associates Insurance Services

Tillsonburg

Mark Jackson

The Insurance Market

Pickering

Linda Colgan

Bryson & Associates Insurance Brokers

Ajax

“Technical knowledge is important, but how you deliver services and help add value to clients is the real key. Clients need to see you as their trusted partner”

New Brunswick RANK

NAME

COMPANY

LOCATION

Joe Palmer

Palmer Atlantic Insurance

Hartland

Jonathan Hines

Wilson Insurance

Moncton

Brad Toole

Wilson Insurance

Fredericton

www.insurancebusiness.ca 27

24-35_Elite brokers-SUBBED.indd 27

14/08/2015 5:20:57 AM

FEATURES

COVER STORY: ELITE BROKERS BIGGEST BOOKS Elite brokers with the highest number of clients in 2014 RANK

“We strive to never lose sight that we are working for all of our clients – no matter how big or small”

NAME

COMPANY

CLIENTS

Gillian Van Kempen

Best Buy Insurance

5,703

Mike O’Grady

O’Grady & Associates Insurance Services

2,299

Michael King

Intercity Insurance Services

2,000

Dan McLean

Sylvan Agencies

1,800

Chris McNeil

Sylvan Agencies

1,500

GILLIAN VAN KEMPEN Principal broker, Best Buy Insurance Brokers With more than 5,000 clients and 8,000plus policies written, Best Buy Insurance’s Gillian Van Kempen easily rose to the top of the list when it comes to the biggest book of business and the most policies generated. The principal broker for Best Buy, Van Kempen specializes in P&C and generated

nearly $1.48 million in revenue last year. What makes her – and her brokerage – so successful? “Ethics and hard work, combined with always increasing our knowledge of insurance trends and products,” she says. “We strive to never lose sight that we are working for all of our clients – no matter how big or small. Our business is built primarily on referrals from satisfied customers.”

THE WRITE STUFF Elite brokers who generated the highest number of policies in 2014 RANK

“Whether it’s staff, clients or company people, we all need to learn every day – and be humble and open-minded enough to be taught”

NAME

COMPANY

POLICIES

Gillian Van Kempen

Best Buy Insurance

8,010

Mike O’Grady

O’Grady & Associates Insurance Services

3,500

Brock Longworth

Cornerstone Insurance Services

2,546

Marsha Jones Dooley

Jones-Dooley Insurance Services

2,105

Chris McNeil

Sylvan Agencies

1,800

MIKE O’GRADY Owner, O’Grady & Associates Insurance Services Coming in right behind Gillian Van Kempen in both biggest book of business and most policies written is Mike O’Grady, owner of O’Grady & Associates Insurance Services. With 37 years of experience, the P&C specialist has a reputation for putting his customers first. “Our motto, ‘Knowledge and service you can count on,’ says it,” O’Grady says. “Clients are first and foremost. As there is so much misinformation and few know anything

about insurance, sharing of knowledge is essential.” O’Grady isn’t stingy in sharing that knowl e dge; in the past year or so, he’s mentored three young brokers from other brokerages. “They feel they’re now in university, and I’m honoured to be their professor,” he says. And even after nearly four decades in the industry, O’Grady says he’s still learning. “Whether it’s staff, clients or company people, we all need to learn every day – and be humble and open-minded enough to be taught,” he says.

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 28

14/08/2015 5:21:04 AM

Your specialty mga

E BROKE LIT

2 015

Hospitality programs Host Liquor & Special Event Liability Weddinguard Server Liability Performer Liability Event Planners Caterer Liability Exhibitor/Vendor & Kiosk Liability

contingency programs Event Cancellation/Non-appearance Prize Indemnity

UniqUe property coverages Contents in Storage ATM, VLT & Vending Machines Miscellaneous Property automatic rates and instant policy issuance available for most pal products online!

www.palcanada.com 24-35_Elite brokers-SUBBED.indd 29

14/08/2015 5:21:09 AM

FEATURES

COVER STORY: ELITE BROKERS TOP 10 BROKERS BY AVERAGE REVENUE PER CLIENT RANK NAME

FAST FACT

This year’s elite brokers averaged more than 700 clients and wrote 1.59 policies per client in 2014

COMPANY

LOCATION

AVERAGE REVENUE PER CLIENT

Wendy Wildeman

Rogers Insurance

Calgary

$43,076

Bill Moretti

Tredd Insurance Brokers

Toronto

$30,232

Lee Sherback

Hub International

Calgary

$30,000

Mark McMinley

Lloyd Sadd Insurance Brokers

Edmonton

$25,097

Colin Matychuk

Hub International

Winnipeg

$20,000

Mo Radmacher

Lloyd Sadd Insurance Partners

Calgary

$14,500

Joe Palmer

Palmer Atlantic Insurance

Hartland, NB

$14,327

Danny Sgro

Jones DesLauriers Insurance Management

Mississauga, Ont.

$13,363

Mark McKay

Highcourt Partners

Toronto

$11,350

Linda Colgan

Bryson & Associates Insurance Brokers

Ajax, Ont.

$9,629

When choosing elite brokers, we didn’t just want to honour those who brought in the highest gross revenue. That’s why we also wanted to give a shout out to the brokers who generated the most revenue per client. Wendy Wildeman of Rogers Insurance took the number-one spot, averaging

$43,076 per client, while Bill Moretti of Tredd Insurance Brokers and Lee Sherback of Hubb International also posted impressive numbers. Overall, the top performers in this category posted an average of $21,157 per client in 2014.

TOP 10 BROKERS BY AVERAGE REVENUE PER POLICY RANK NAME

COMPANY

AVERAGE REVENUE PER POLICY

Chris Sikorski

Renfrew Insurance

Calgary

$78,883

Lee Sherback

Hub International

Calgary

$30,000

Bill Moretti

Tredd Insurance Brokers

Toronto

$14,444

Mo Radmacher

Lloyd Sadd Insurance Brokers

Calgary

$6,444

Luke Horcica

Lloyd Sadd Insurane Brokers

Edmonton

$6,400

Bryce Kumka

Rogers Insurance North

Fort McMurray, Alta.

$5,662

Mark McKay

Highcourt Partners

Toronto

$5,503

Joe Palmer

Palmer Atlantic Insurance

Hartland, NB

$5,073

Lori Fernandes

Aon Risk Solutions

Burlington, Ont.

$5,000

Danny Sgro

Jones DesLauriers Insurance Management

Mississauga, Ont.

$4,715

We also wanted to honour those brokers who posted the most revenue per policy. Coming in at the top of the list in this category was Chris Sikorski of Renfrew Insurance, who boasted an average revenue of $78,883 per policy. Hubb International’s Lee Sherback and

LOCATION

Tredd Insurance’s Bill Moretti switched places from their ‘revenue per client’ rankings, coming in at numbers two and three, respectively. Everyone in the top 10 racked up impressive numbers – the average revenue per policy was $16,212.

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 30

14/08/2015 5:21:17 AM

E BROKE LIT

2 015

SO WHAT DOES THE AVERAGE ELITE BROKER LOOK LIKE? We wanted to see what the ‘average’ elite broker looked like, so we broke it down to basics to look for some through lines. This year, 73% of elite brokers were male and 27% were female. That’s slightly more balanced than last year, when 83% of elite brokers were male. This year’s average elite broker has more than 19 years of experience and wrote 1,135 policies in 2014. This year’s elite brokers averaged more than 700 clients and wrote 1.59 policies per client in 2014.

MALE

73%

FEMALE

1,135

712

AVERAGE NUMBER OF POLICIES WRITTEN IN 2014

AVERAGE NUMBER OF CLIENTS

AVERAGE YEARS OF EXPERIENCE

1.59

27%

19.36

AVERAGE NUMBER OF POLICIES PER CLIENT IN 2014

WWW.INSURANCEBUSINESS.CA

Insurance Business is Canada’s newest industry magazine, encompassing news analysis, expert opinion, exclusive interviews and industry trends for today’s sophisticated insurance brokers and advice professionals.

INSURANCEB USINESS.CA ISSUE 1.1

KNOW ANYONE WHO SHOULD BE READING INSURANCE BUSINESS? Insurance Business magazine is free to all Canadian insurance brokers and those within the insurance industry who deal with brokers directly. So if you know someone who should be added to our distribution list, advise them to please call us on (416) 644 8740.

The finest insurance brokers in Canada revealed

ADRIAN HUMPHREYS LLOYD’S CANADIAN BOSS ON BROKERS

UNDERWRITING AGENCIES THE GENUINE ALTERNATIVE FOR BROKERS

MOTOR INSURANCE HOW BROKERS CAN ACCELERATE THEIR PROFITS

Insurance Business is proudly brought to you by KMI Publishing & Events Ltd.

IB_UpcomingIssues_HP.indd 1

23/10/2013 10:56:45 AM

www.insurancebusiness.ca 31

24-35_Elite brokers-SUBBED.indd 31

14/08/2015 5:21:24 AM

FEATURES

E BROKE T I L

COVER STORY: ELITE BROKERS

2 015

THE TOP 5 The top five Elite Brokers this year are a mix of new faces and perennial winners. With 3,592 policies written, 1,538 total clients and a combined revenue of $12.48 million between them, these five insurance professionals are among the best the industry has to offer. All five work in Ontario or Alberta. Danny Sgro of Jones DesLauriers took the top spot for the third year in a row, while fellow Jones DeLauriers pro Kevin Stedman is also making his third consecutive appearance in the top five. New to the top of the list are Mark McKinley of Lloyd Sadd Insurance Brokers, Chris Sikorski of Renfrew Insurance and the person who just barely toppled Stedman from his traditional number-two spot: Rogers Insurance’s Wendy Wildeman. Together, these five averaged $1.96 million in revenue for 2014.

MARK MCKINLEY Principal, Lloyd Sadd Insurance Brokers EDMONTON

Mark McKinley kicks off the top five with more than $1.8 million in revenue and 400 policies for 2014. A partner at Lloyd Sadd and an account executive for the company’s construction risk services in the bonding division, McKinley is responsible for over seeing the service delivery platform for its clients. Prior to Lloyd Sadd, McKinley spent nine years specializing in bonding with major international insurance brokers. What’s the secret to success? According to McKinley, it’s simple enough. “Have a genuine interest in your client’s businesses and strong personal connections with clients and under writers,” he says. “Be an active listener and have good problem-solving skills.”

CHRIS SIKORSKI Senior vice president and partner, Renfrew Insurance CALGARY

Chris Sikorski is no stranger to excellence; he was featured in IBC’s Elite Broker list in both 2013 and 2014. He was also the youngest employee at Renfrew Insurance to be promoted to senior vice president and the company’s youngest account executive to exceed $1 million in revenue. Sikorski was named Renfrew’s producer of the year for largest percentage growth in 2014. Sikorski has found his greatest success with construction insurance, particularly builder’s risk and wrap-up liability. “I specialize in the construction industry, and find that clients are lacking education on this type of insurance,” he says. “I work closely with my clients to help them under

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 32

14/08/2015 5:22:07 AM

E BROKE LIT

2 015

stand the risk, applicable coverage and how the coverage works.” Sikorski puts his success down to simple perseverance and the willingness to put in the work necessary to excel. “I think it really comes down to drive and determination,” he says. “I believe that if you have these attributes, the rest will follow. The insurance industry can provide a very rewarding career, but it can but a long road. It’s crucial to have a goal and stay motivated to ensure you achieve it. I have found that this mentality has helped me develop my expertise, grow my client base and attract the right personnel.” But drive and determination won’t get you far unless you have the right people to support you, he adds. “I must give credit to my team. I work with six individuals that I feel are the best of the best. They are extremely good at what they do and make me look good on a daily basis. Without them, I truly believe that I wouldn’t be where I am today.”

“I think it really comes down to drive and determination. The insurance industry can provide a very rewarding career, but it can but a long road. It’s crucial to have a goal and stay motivated to ensure you achieve it”

“The job of mentoring never stops. I enjoy giving advice and providing guidance to young brokers on how to achieve their goals and be successful”

KEVIN STEDMAN Partner and chief sales officer, Jones DesLauriers Insurance Management MISSISSAUGA, ONT.

Kevin Stedman is becoming a fixture at the top of IBC’s Elite Brokers list; this year marks his third appearance in the top five. Most of Stedman’s clients are within the transportation and construction sectors, which makes auto, fleet and CGL coverage his top-selling product. And with 1,748 policies written in 2014 and 878 clients to care for, Stedman is obviously doing something right. That something, he says, is simply a willingness to work hard and go after the knowledge he needs to help his clients. “An elite broker holds the clients’ best interests in mind and is very results-driven for them,” he says. “They would also be an experi-

enced professional with strong insurance and risk-management knowledge, which is essential to providing clients with the best insurance experience. You also need to be a diligent and tenacious worker to ensure optimal performance.” And as chief sales officer, Stedman is more than willing to share his experience with younger brokers. ”Part of my responsibly in this leadership role is mentoring brokers new to the business,” he says. “The job of mentoring never stops. I enjoy giving advice and providing guidance to young brokers on how to achieve their goals and be successful. More recently, part of the Belleville office has relocated to Port Hope to further grow the business, and I have been involved in the transition and mentoring of new producers as JDIMI has combined forces with Whitley Insurance.” In addition to mentoring young brokers and juggling the needs of hundreds of clients, Stedman finds time to give back to the community. “I support multiple charities and organizations through JDIMI, including local youth sports clubs and recreations,” he says. “My family and I also help out at a local community food bank, where we prepare and serve food to those less fortunate.”

www.insurancebusiness.ca 33

24-35_Elite brokers-SUBBED.indd 33

14/08/2015 5:22:13 AM

FEATURES

COVER STORY: ELITE BROKERS

WENDY WILDEMAN Senior account executive, Rogers Insurance CALGARY

Wendy Wildeman’s top-selling products are programs designed specifically for condominium and strata property management firms. Wildeman says they offer great coverage for a competitive price, along with ease of handling. Given that her 2014 revenue topped out at $2.8 million, she clearly knows how to

sell those advantages to her clients. “To be an elite broker, one needs to get to know and understand the needs of the client,” she says. “Then combine technical skills to design and market an insurance program at competitive pricing to best fit the client – now and in the future. And most importantly, look after the day-to-day issues so that the client simply cannot live without you.” When she’s not racking up sales, Wildeman works with new employees on their sales and technical skills and instructs other producers in a classroom setting. She’s also active in charity, supporting STARS and Autism Canada.

DANNY SGRO

Partner and chief sales officer, Jones DesLauriers Insurance Management MISSISSAUGA, ONT.

Danny Sgro has topped IBC’s Elite Brokers list for three years in a row, and his results this year are reliably impressive: $3.15 million in revenue and 668 policies written. Sgro specializes in large property risks for commercial property. “Large commercial properties are important to clients due to the huge investment and the potential negative impact if damaged or destroyed,” he says. “[Large property insurance] covers a broad range of common risks most relevant to my clients’ needs, including damages to office equipment and/or property caused by fire, smoke, water and vandalism.” Sgro also focuses on specialized products like cyber liability, professional liability and coverage for company directors and officers. A consistent top producer, Sgro also makes a point to pass his knowledge on to those new to the business. “I have taken the responsibility of mentoring the majority of the young producers at Jones DesLauriers,” he says. “I also am one of the firm’s chief sales officers responsible for the management of 21 producers. Of these producers, I have a formal mentorship relationship with eight young producers. Mentorship is an area that I strongly believe in, and supporting the next generation of insurance professionals is very important for the success of a brokerage. This mentoring role requires a significant commitment and is tough to juggle with the management of my large book of business.” Although there are a lot of demands on Sgro’s time, he still finds time to be active in charity work, supporting a number of local hospitals, advocating for educational charity Free the Children and participating in a number of mission trips. “My experience supporting Free the Children has been so engaging and rewarding that I encouraged Jones DesLauriers to support this cause,” he says.

www.insurancebusiness.ca

24-35_Elite brokers-SUBBED.indd 34

14/08/2015 5:22:20 AM

E BROKE LIT

2 015

WHAT DOES IT TAKE TO BE AN ELITE BROKER? When interviewing our top 30 brokers, several common strategies for success became clear:

Customer service An unwavering commitment to customer service is essential, from the first point of contact with a potential client all the way to follow-up after a claim has been processed.

Relationships If you want longevity and success with clients, colleagues, insurers and other brokers, you need to nurture relationships across the board.

Personal connections

“An elite broker needs to have a great work ethic and an innovative mindset to help find the best solutions for each client. But it’s deeper than this. I strongly believe that to be an elite broker, you need to be critically involved in the development of young [brokers] and be active to promote the insurance business”

It’s no longer acceptable to sit behind a desk and correspond via email. If you want to be a cut above the rest in today’s market, you need to be able to hit the phones, visit clients in person and make a genuine connection.

Internal teamwork Every broker agrees that continued success is impossible without a qualified and supportive team behind you.

www.insurancebusiness.ca 35

24-35_Elite brokers-SUBBED.indd 35

14/08/2015 5:22:27 AM

FEATURES

ENVIRONMENTAL

“Sometimes environmental insurance gets lost in the background, even though it is in some cases more important” Ricardo Philip, Markel Canada

AN EASIER SELL The exposures and liabilities associated with environmental risk have turned off a lot of brokers and insurers in the past, but sharper underwriting is turning this once hot potato into a lucrative product ENVIRONMENTAL EXPOSURE risks have outstripped the coverages provided in a typical commercial general liability policy – and normally that would provide brokers a tremendous opportunity to pitch

a variety of environmental coverages to clients. But there are still brokers who defer on offering those coverages due to the risks associated. However, the product has evolved into

what is now a more affordable – and less risky – insurance coverage, making it more attractive for formerly skittish brokers, says Ricardo Philip, AVP and national product line leader for environmental risk at Markel Canada. “They should do it right away,” he says. “It is the perfect time to do it. The insurance marketplace has been very soft, and many of our clients have been able to take advantage of some very good pricing conditions over the last four or five years for traditional P&C insurance.” Those savings on the P&C side can be supplemented by offering environmental coverage to ensure clients are properly protected, Philip adds. “Not only does it fill in those gaps, but it is a very competitive marketplace,” he says. “Many brokers are aware that if they don’t place this coverage for a client, and something happens, it may lead to a loss of revenue for them – so it can be critical.”

www.insurancebusiness.ca

36-39_Ad led Markel-SUBBED.indd 36

14/08/2015 5:22:44 AM

Heightened need The growing need for environmental coverage has been highlighted by some recent tragedies, such as the 2013 crash of a freight train carrying crude oil in the Quebec town of Lac Megantic. “We’ve seen losses in some cases that haven’t been adequately covered by traditional insurance placement – like Lac Megantic, where there has been a significant environmental impact and loss associated with those events, which has called into question how environmental insurance may not be contemplated as seriously as it should be in the routine cycle of insurance,” Philip says. Many clients have very sophisticated insurance placements, he adds, but while they’re concerned about their traditional property and casualty placement and cyber liability, “sometimes environmental insurance gets lost in the background, even though it is in some cases more important.” When you don’t have traditional insurance responding to an incident, “there has to be a lot of goodwill and business decisions to pick up for that coverage,” he says. “Right now in a delicate economic cycle, there is only so much of that to go around.” While the traditional pollution ‘give back’ from a CGL policy will often provide sudden accidental coverage under the IBC 2313 endorsement, “anybody with significant environmental exposures should be looking well beyond that,” Philip says. Contractors or consultants rendering professional services to third parties are routinely required to meet an ever-growing set of environmental insurance criteria – much more than they were just three to five years ago, he adds. “Back then, there would have been an easier way to negotiate those insurance requirements away with other considerations; that really isn’t happening anymore,” he says. “People realize that they have to get the coverage … if you look at a traditional P3 arrangement construction project, if performance or insurance criteria isn’t met, people don’t get paid. So we find ourselves facing an unprecedented demand in the Canadian marketplace for environmental coverage.”

NOT YOUR FATHER’S COVERAGE Improved underwriting, along with the inclusion of industry experts on environmental exposure risk, has produced a variety of specific products for clients looking for coverage. Markel Canada has developed five products designed to meet the specific needs and coverage demands of clients. CONTRACTOR’S POLLUTION LIABILITY “We have refined the format and questions to make our application convenient and easy to complete,” says Markel Canada’s Ricardo Philip. “This coverage may be written to include all the contractor’s activities on a blanket basis.” Coverage can be written on a single-job basis, for owner’s interest, contractor’s interest or full wrap-up. The standard CGL policy provides reduced cover for work on or around sites; a speciality policy may be necessary to cover off-site work. ENVIRONMENTAL IMPAIRMENT LIABILITY “Our EIL program covers third-party exposures for the manufacturing or servicing industries, as well as other several important areas for owned, leased and rented locations,” Philip says. It provides gradual and sudden & accidental pollution coverage for events such as fire, explosion or sudden spill, as well as seepage or gradual pollution coverage, including third-party cleanup expenses, bodily injury and property damage arising from a pollution event, first-party cleanup expenses, and pollution from waste materials. ENVIRONMENTAL CONTRACTORS PROGRAM The environmental contractors program is designed to provide a policy that combines both commercial general liability and environmental impairment liability for contractors. “This package policy is specifically tailored for a variety of environmental contractors, including those involved in asbestos, lead and mould remediation,” Philip says. POLLUTION EVENT INSURANCE Not all clients want or need full gradual pollution cover, as they feel their pollution exposure is so small – that’s where this product comes in. “Some clients recognize the need for sudden pollution cover as important protection for fortuitous events like fires, spills or other accidents,” Philip says. “What sets us apart is the ability to customize our forms to the client’s needs.” ENVIRONMENTAL CONSULTANTS Environmental professionals are held to higher standard than non-professionals, and when a question of liability arises, any claim or allegation against their business can result in a damaged reputation and financial loss. Ensuring those professionals have adequate coverage to address the legal expenses involved in resolving claims and maintaining their reputation is key. “Our environmental consultants program is designed to provide broad cover for engineers, biologists, geologists, chemists, testing laboratories and any other consultants in the environmental field,” Philip says. “The policy itself has no environmental exclusion and can provide cover for prior acts exposure.”

www.insurancebusiness.ca 37

36-39_Ad led Markel-SUBBED.indd 37

14/08/2015 5:22:49 AM

Rising to your risks.

Environmental exposures have profoundly outstripped the coverage provided in the standard commercial general liability policy. Our wide range of specialty pollution coverage options can provide excellent protection in this dynamic area of commercial liability. It is easier than ever before to tailor a pollution cover to the individual needs of your client. Find out more at www.markelinternational.ca

CA EIL advert IBC DPS.indd 2 38 36-39_Ad led Markel-SUBBED.indd

14/08/2015 5:22:57 AM

36-39_Ad led Markel-SUBBED.indd 39

17/07/2015 17:49 14/08/2015 5:23:02 AM

SPECIAL PROMOTIONAL FEATURE

HOSPITALITY WHAT DOES HOSPITALITY COVERAGE INCLUDE? BASIC COVERAGE • Liquor liability Capacity up to $5 million

Back in vogue Hospitality insurance is taking center stage once again, especially in Ontario, where a new law will significantly change how alcohol is sold FRAUGHT WITH claims and difficult underwriting, hospitality coverage was once the black sheep of the insurance industry – but not anymore. Particularly in Ontario, where a new law will allow beer to be sold in 450 retail locations outside the Beer Store and the LCBO, including supermarkets (which, according to Premier Kathleen Wayne, will be “the biggest shake-up to the sale of beer in Ontario since we repealed prohibition in this province”), hospitality insurance is more important than ever. “For brokers, having a stable market for hospitality is key in this ever volatile occupancy,” says Kent Pitkin, national director of commercial lines at April Canada. “Having underwriting expertise in this field of insurance is hard to come by. Our underwriters are able to provide brokers with the assistance they need to ensure their clients have the right coverage.” While Ontario’s new law has its critics, many consumers are embracing the change because of its convenience, while business owners look forward to a new line of revenue stream. However, as with any hospitality expansion, it brings some significant risks.

Unlike in bars and nightclubs, patrons will not be consuming alcohol on the premises – and supermarkets and convenience stores come with their own liabilities. In the case of loosening restrictions on restaurants, those liabilities are changing too. “We see the emerging trend of higher

OPTIONAL COVERAGE • Property Capacity up to $20 million, including: • Buildings • Equipment and machinery • Business interruption • Available additional coverage: stock, valuable papers and records, earthquake and/or flood, sewer backup, boiler • Commercial general liability Capacity up to $5 million, including: • Bodily injury and property damage liability • Advertising injury • Personal injury • Tenant’s legal liability • Non-owned and hired auto • Crime Capacity up to $100,000, including: • Employee dishonesty • Money and securities • Boiler and machinery • Legal expense

“For brokers, having a stable market for hospitality is key in this ever volatile occupancy. Having underwriting expertise in this field of insurance is hard to come by” Kent Pitkin, April Canada liquor sales due to changes in the hospitality industry, such as restaurants not only brewing their own beer and serving it, but also selling to consumers, more importation of specialty beers and wines, as well as increased special events and promotional activities to increase customer traffic,” Pitkin says. Ensuring clients have the proper cover

age is important as Canadians become more litigious, he points out. “The ability to offer emerging lines of business, such as legal expense, is important to complement the traditional package policies,” he says. “Making insureds aware of the coverage options and being able to provide solutions for out-of-the-box risks are April’s specialties.”

www.insurancebusiness.ca

40-41_Ad led April-SUBBED.indd 40

14/08/2015 5:23:25 AM

Canada’s Online News Source and Community for Life and Health Insurance Professionals

Industry-leading Special Reports & Analysis Read up on trends and economic events that affect your business Expert Advice and Strategy Insights Learn about what makes a success-driven practice SIGN fromUP the bestFOR and brightestYOUR minds in the industry

FREE E-NEWSLETTER! Up-close and Personal Gain access to exclusive interviews with Canada’s top life and health insurance professionals and discover Industry-leading Special Reports & Analysis their strategi es in enhanci ng theirevents businessthat Read up on trends and economic affect your business

Expert Advice and Strategy Insights Learn about what makes a success-driven practice from the best and brightest minds in the industry

Real-time Content Delivery Keep informed with daily market updates and Up-close and Personal Gain access to exclusive interviews with Canada’s top regul atoryhealth newsinsurance deliveredprofessionals straight to yourandindiscover box life and their strategies in enhancing their business Real-time Content Delivery Keep informed with daily market updates and regulatory news delivered straight to your inbox

www.lifehealthpro.ca www.lifehealthpro.ca 40-41_Ad led April-SUBBED.indd 41

14/08/2015 5:23:31 AM

PEOPLE

PRODUCER PROFILE

Young achiever Rachel Cheong might be a newcomer to the insurance industry, but her achievements suggest she’s one to watch

RACHEL CHEONG is passionate about insurance, passionate about helping others, and knows the sky’s the limit when it comes to what she can achieve in her career. Until recently, Cheong was a client service associate at British Columbia-based CMW, one of the province’s top brokers. She completed her Chartered Insurance Professional designation at the Insurance Institute of Canada in 2014. During her studies, Cheong was awarded the Insurance Institute’s Frank Dougan Prize for top graduating student in Canada from a full-time insurance program. She also received the prize for top graduating student from an independent broker. And she received three other major awards recognizing her scholastic achievements in 2013 and 2014. But Cheong is remarkably humble when it comes to discussing her accolades. When asked to name her proudest achievement, she singles out the prize for top graduating student in Canada. “I really did not expect to win,” she says. “I was really shocked.”

“I believe my achievements stem mainly from my passion, my determination and curiosity to learn,” Cheong says. “I always like to find out what the big picture is and question why things happen. To me, insurance is really interesting because it’s not an area where you can just sit back and know that things will stay the same, because it never stays the same.” Working mainly on the construction team, Cheong describes her time at CMW as “really enjoyable and fulfilling.” And now she’s embarking on a new chapter in her career, bringing her dedication to the industry to the Vancouver-based Boiler Inspection and Insurance Company of Canada as a marketing representative. “I find most satisfaction in the work when I’m able to help others and help them to understand how effective insurance is,” she says. “I find it very fulfilling when I’m able to help somebody out in a crisis.” Cheong says she’s particularly interested in following the introduction of drones to insurance, and contemplates questions raised by that significant technological development. “First, I question how we can insure the risk itself. What kind of factors do we use to underwrite this? Because these are unmanned aircraft, there are so many unknowns. On top of that, there isn’t much data to back it up – there isn’t a risk pool that’s large enough, [and] there’s no history to back it up for the actuaries to calculate the risk. I’m really excited to read about emerging products … and claims stories.”

“People always say they fell into insurance by chance. I think that we can change that”

The first spark Prior to embarking on a career in insurance, Cheong studied economics at National University in her native Singapore. After graduation, she set her sights on working in the insurance industry in either the UK or Canada. Ultimately, she chose to pursue her career in Canada and has since gone from strength to strength.

www.insurancebusiness.ca

42-43_Producer Profile-SUBBED.indd 42

14/08/2015 5:23:49 AM

OUTSIDE THE INSURANCE WORLD When not working feverishly to further her career, Cheong, a selfconfessed animal lover, spends much of her free time at home with her dogs. “I have one golden retriever and a Maltese mix,” she says. “They’ve picked up the tricks that I’ve taught them.” And when she’s not spending time with her dogs, there’s a chance you’ll find Cheong pursuing another interest she recently developed – crocheting. “I’ve become quite a fan of this art,” she says. Next generation Cheong’s passion for the insurance industry is not something she shares with the majority of job-seekers in her generation, who continue to be swayed by outdated ideas of careers in insurance. “People think it’s a 9-to-5, door-to-door salesmen thing,” she says. “People always say they fell into insurance by chance. I think that we can change that. We need more mentors or ambassadors to help influence the millennial generation.” She offers up ideas such as summer programs, graduate training programs and field trips as effective ways to expose students to the wide variety of opportunities on offer in the industry. “I feel, in insurance, there are endless possibilities as to what route you can take,” she says. “There’s broking, underwriting, loss prevention, actuarial, analytics, claims, reinsurance … I can’t even name them all! You have so many streams of choice.” When it comes to her own future in the industry, Cheong is focused on ensuring she’s a valuable asset to her employer. She also looks forward to being able to enroll in Insurance Institute’s Fellow Chartered Insurance Professional Program. “I just want to keep growing, improving and stay updated as the industry changes. My goal is to challenge myself … [to get] out of my comfort zone and to keep advancing.”

www.insurancebusiness.ca 43

42-43_Producer Profile-SUBBED.indd 43

14/08/2015 5:23:56 AM

FEATURES

MEDIA

Read all about it Media liability has changed in the past few years. Insurance Business Canada sat down with David Alexander of the Sovereign General Insurance Company to find out what today’s media clients need IBC: What changes have happened in media liability, and how has that affected coverage? Does Sovereign target any particular type of media professional? David Alexander: There have been so many changes in the way we broadcast and distribute media over the last few years. Desktop publishing, print-on-demand, social media and the ease with which anyone can create a website have all contributed to the change. One of the areas where we noticed significant change was within advertising. Take, for instance, producing a TV commercial. While there are still large, traditional ad agencies where the account manager/creative director/agency producer/production house approach is still used, there are also hundreds of smaller agencies that look after the entire

It’s a claims-made and reported professional liability product created with the multimedia professional in mind.

IBC: How should brokers open a discussion with current clients about revisiting their media policies? DA: Find out exactly what they do. Get a handle on the slate of services the media professional or agency offers. It’s no longer a surprise to have three people working at an agency, and between them they look after the creative process – creative writing and storyboards, etc. – graphic art, budgeting, promotional work, filming and post-production, all under one roof. It’s good to confirm exactly what they’re doing and to start a conversation about the agency’s work and where they place their ads, whether they’re TV, print, radio, podcasts. The

and how can brokers mitigate potential claims? DA: When you create and film, and perhaps even broadcast an ad, you are not only open to the obvious intellectual property rights infringement claims, but also allegations of negligence related to the actual creative work, contextual errors, allegations of false light or recall costs. It’s wise to get to know your media client and, again, get a handle on what they offer and what protocols they have in place – things like client sign-off and the depth of their infringement checks. The more time and effort they have invested in written protocols, the better.

IBC: Where are media policies headed in the next five years? DA: That’s difficult to say. There is so much out there in terms of media – you can watch, read or listen to content with so much ease and flexibility now. Media liability coverage will have to become more tractable, and that might mean the underwriter has to think creatively and [write] coverage to suit the unique needs of the media professional. We’ve been doing that here at Sovereign. Media professionals are generally a creative and nimble group because their business moves pretty quickly, and they deal with very high client expectations; everyone wants their ad or media to look cutting-edge, and they want it done at the lowest cost. We strive to find solutions and keep up with it all.

“A plain vanilla copyright infringement coverage will likely fall short for many of the allegations to which the one-stop agency is susceptible” creative and production process in-house. The same goes for print ads and radio spots. Technology has allowed the media professional to become very agile. When we rewrote our media professionals’ liability policy, we did so with the new agile, one-stop-shop ad agency in mind. The policy is not simply copyright infringement coverage.

broker will probably find they do it all. A plain vanilla copyright infringement coverage will likely fall short for many of the allegations to which the one-stop agency is susceptible.

IBC: What might clients not be aware of in terms of exposures and liabilities,

www.insurancebusiness.ca

44-45_Ad led Sovereign-SUBBED.indd 44

14/08/2015 5:24:15 AM

THE CHOICE IS YOURS WITH

MAGAZINE-EMAG

WEBSITE-ENEWSLETTER-MULTIMEDIA

Insurance Business magazine features a series of industry reports recognizing the achievements of key individuals and businesses as well as providing the latest in business best practice. Access every emag from our website or download on your iPad from the iTunes store for access anywhere, anytime.

Insurance Business Canada has an online industry hub committed to delivering the latest industry news, opinion and analysis for todayâ&#x20AC;&#x2122;s sophisticated insurance professional. Subscribe to the exclusive e-newsletter and get up-to-theminute insurance news delivered to your inbox daily.

FOR MORE INFORMATION, VISIT INSURANCEBUSINESS.CA 44-45_Ad led Sovereign-SUBBED.indd 45

14/08/2015 5:24:20 AM

FEATURES

TRUCKING

What’s coming down the road? The trucking insurance segment can never be seen as a short-term play to capitalize on top-line premium growth – in fact, it must be treated as the exact opposite. Angelique Magi of The Guarantee Company of North America answers some common questions about the sector WITH LIABILITY limits from $2 to $10 million on every truck travelling to the US, the trucking insurance segment isn’t for the faint of heart. Successful insurers take the time and effort to understand the necessary increase limit factors and loss development curves to get to an acceptable permissible loss ratio. They also aim to understand what affects their customers’ ability to be successful, viable businesses and invest in comprehensive risk management expertise to help clients build their businesses safely. Trucking clients face exposures that impact their businesses’ profit margins – not just their insurers’ loss ratios – every day: winter storm pileups that can stop their trucks for days on major routes, contract requests from customers that present unforeseen costs, changes to cross-border bonding requirements and paperwork that get their trucks turned away at the border. Legislated safety requirements such as electronic onboard recorders can affect long-term drivers, and of course, the economy can affect their profit margins (i.e., exchange rate, fuel prices, retaining the best drivers). Insurers need to be engaged with brokers

and customers on their three- to-five-year business plans and develop an insurance program to help them reach those goals. This type of investment has historically resulted in higher retention rates and better long-term returns.

Insurance products will change in the coming years. Are we looking at the demise of typical auto coverage as we know it? I would call it more of an evolution of the product. Vehicle ownership has dictated where coverage and liability is allocated, through the Insurance Act and provincial auto policies. Currently, risk factors that impact consumers and insurers are identified based on usage: Uber, the driving behaviour of a new teenage driver or the number of hours a commercial driver has been behind the wheel. These factors influence coverage costs to the consumer in many of the North American UBI rate plans, but it’s not a stretch to see specific usage risk factors influencing what coverage is available to the operator as well. These new underwriting guidelines can create financial benefit for the operator if their usage

matches the insurer’s target appetite.

Who will offer vehicle insurance in the future? Will brokers be squeezed out as trucking companies, manufacturers or even delivery companies like Amazon decide to provide insurance coverage? There will always be a place for a trusted independent advisor to provide insight into the nuances of the insurance contract and coverages provided. The Canadian consumer still views the insurance purchase as a significant financial decision, and consultancy with detailed product comparisons still matters, especially on the commercial side.

A sinking loonie has dramatically changed exposures, risks and claims for Canadian truckers operating in the US. What variables are insurers contending with today? The exchange rate can be a double-edged sword for Canadian truckers. It allows for more flexibility when negotiating contracts

www.insurancebusiness.ca

46-47_Ad led Guarantee-SUBBED.indd 46

14/08/2015 5:24:44 AM

operation is viewed by the government as skilled trade, public confidence in operator skill level is increased by promoting consistent training requirements of operators and mandatory entry-level testing, and greater visibility is achieved on technological advances.

What will the truck driver be like in the year 2030 – a pilot, a diagnostician or simply a robot? That’s only 15 years away, but it’s amazing to see how technology has changed so radically just in the last two years, such as with autonomous vehicles. Planes and larger commercial ships have autopilots that are engaged for the majority of the route, but human monitoring occurs at key intervals to ensure that the impact of outside forces can still be a judgment call. The difficulty with autonomous vehicles – trucks or cars – is the volume involved, the variety of navigational routes and risks that could happen on any given day. An example of this is the impact of the temporary HOV lanes in Toronto during the Pan Am games. To say nothing of dealing with Canadian winter! A truly autonomous vehicle would have with US-based shippers, manufacturers and distributors; however, the travel costs for those trucks when operating in the US also increase. This also includes the claims costs for incidents that occur in the US – in particular, towing or repair costs. It is the increase in the amount of bodily injury payouts that is not always anticipated by the trucking companies – and, unfortunately, their Canadian insurers. The cost of settling a loss in the US has gone up by 25% in the last year, just with the exchange rate. That does not apply to losses that have happened in that time period, but for any loss that is going to be settled or sent to trial. There should be an increase in the amount of loss cost prior-year development for any insurer who has written US exposure and has an open claim. The potential ripple effect is a reduction in the excess capacity based on US mileage.

There is a shortage of qualified drivers. What can the industry and government

“The Canadian consumer still views the insurance purchase as a significant financial decision, and consultancy with detailed product comparisons still matters, especially on the commercial side” do to remedy this situation? Do millennials and the generation to follow see a future in the trucking industry? There is a huge amount of effort and awareness on the part of the Canadian Trucking Alliance, provincial trucking associations and Trucking HR Canada to highlight the importance of having a strong workforce in the transportation sector. For future generations to look at the transportation segment as a viable and long-term employment option, there must be a shift from current perceptions. This shift will begin when heavy commercial vehicle

to be equipped with thousands of contingencies based on schedules rather than a GPS re-route update from a single accident or construction zone. Even when vehicles can assimilate the operating environment data quickly to process the technical response required, there will still be a need for human interaction on judgment calls.

Angelique Magi is vice president of transportation for The Guarantee Company of North America.

www.insurancebusiness.ca 47

46-47_Ad led Guarantee-SUBBED.indd 47

14/08/2015 5:24:47 AM

FEATURES

LEADERSHIP

Commercial collaboration: the operating system of the future A new methodology of collaboration is necessary to keep pace with the speed of today’s business environment, according to Janine Garner THE PHENOMENAL speed of change that got us to the 21st century’s technological frenzy is not going to slow down any time soon – and it is creating an uncertain future on a global business level. There is an ongoing war between the need for stability and the need for growth. It is up to each of us to actively listen to the demands of this society and evolve how we operate accordingly so that what we do aligns with – and leads – the new paradigm. We live in a highly connected world. The constant transformations happening on both domestic and global levels are affecting us as we try to maintain balance in our personal lives while striving for our dreams. Business is under pressure – evolution within society demands constant innovation and invention in product design, delivery, communication, marketing and customer service, as well as in business itself, from office layouts to organizational structures, from leadership styles and culture to working hours and communication platforms. Societal evolution is driving a feeling of uncertainty about what the future will hold – especially for Gen X and the Baby Boomers, who have had both financial and philosophical certainties stripped away over the last decade. For these two generations in particular, who make up the majority of the

leadership pool at present, this feeling of the unknown is resulting in business methodology regression. Regression to what? To the comfort of the known, of protecting ‘me,’ when what is actually needed is the courage, confidence and bravery to move to the new operating system of ‘we’ – one that will enable leaders to create the solutions needed to future-proof personal, business and team successes. Those who are willing to be a part of a collaborative working environment are doing so because they want to be challenged. They want the opportunity to constantly learn from others, and to share what they’ve learned. To engage on an intellectually challenging level with

like-minded thinkers. To see their own business benefit from the knowledge of specialists. To be happy knowing that they are on the edge of technological advancement, constantly pushing the ‘what if’ button – because as a team, they feel secure enough to take risks.

Moving from ‘me’ to ‘we’ The concept of commercial collaboration, and the move from the ‘me’ space to the ‘we’ space, is not for the faint-hearted. It’s for those who can see the far-reaching benefits of what the ‘we’ space is about — and yes, it is a gradual move, one that involves challenging thinking. But it is not something one has to contemplate in solitude.

THE BENEFITS OF ‘WE’ Leaders who are already operating in the ‘we’ space: Are able to think big

Promote based on merit, irrespective of gender or age

Recognize the need to act as a team

Are innovative

Embrace fears and vulnerabilities

Disrupt the status quo

See the value in helping others see their worth

Lead with a questioning spirit

Actively engage with others

See what commercial collaboration brings to an entrepreneurial mind

Act with bravery

www.insurancebusiness.ca

48-49_BizStrat Collaboration-SUBBED.indd 48

14/08/2015 5:25:11 AM

A COLLABORATIVE ENVIRONMENT This new operating system is one where: Networks of connected individuals, communities and businesses work together to drive success We can bring our skills, strengths and talents to the table, and together amplify and share expertise to create progressive, results-oriented solutions Collective intelligence means we work smarter and quicker together Diversity and difference of opinion is actually the new competitive advantage Commercial collaboration: Creates momentum Drives new thinking Builds resilience and determination to succeed Enables individuals and businesses to explore possibilities and develop strategies to future-proof success Every part of the ‘we’ space has the backing of others. Overcoming fear and facing up to vulnerability are done with full disclosure and honesty, with the knowledge that by sharing your fears, you are empowering not just yourself, but those who work with and for you. You are giving the team the opportunity for empowerment and trust. When you disrupt the status quo, when you disturb the accepted and the everyday, you are forging a new strength and getting rid of the weak and humdrum, which bog down business decisions and keep processes stale and stagnant. In the spirit of openness and full disclosure, you are not moving secretively, but so that those in your team or circle of excellence are aware of your thought processes and why you are taking the actions you are. In this way, you have backup – and trust in your actions.

Understanding the power of your network and using its potential is intrinsic to the ‘we’ mentality. To care about the well-being of those who are connected to you through business similarities or ethical focus or a desire to advance the same cause – while expecting nothing in return – creates a fantastic opportunity for collaborative relationships, and also for a true value exchange, where ‘what’s in it for me’ turns into ‘what can I do for you.’ The ‘we’ space is not a pipe dream. There are businesses and leaders who are clearly succeeding by operating within this framework. It is the centre of discussion among academics, thought leaders and consulting groups. Those corporations and entrepreneurs who are using the space well, and understand the shift in thinking needed to get there, are seeing procedures streamlined, the bottom line coming up, and employees happier and more

engaged. Their ‘communities’ are becoming actual communities. It is not enough, in the words of Sheryl Sandberg, to ‘lean in’ to future-proof our success, our businesses and our careers. For leaders who are taking teams into an uncertain future, it’s now about leaning out and collaborating with others. Because to lean out means to embrace and engage on an unforeseen aggregated level – where thinking bigger than ever before will bring rewards to a collective commercial mind.

Janine Garner is a businesswoman and entrepreneur, and is the author of From Me To We: Why Commercial Collaboration Will Future-proof Business, Leaders and Personal Success. She is the founder and CEO of LBDGroup. For more information, visit www.janinegarner.com.au.

www.insurancebusiness.ca 49

48-49_BizStrat Collaboration-SUBBED.indd 49

14/08/2015 5:25:19 AM

FEATURES

LEADERSHIP

Why fearlessness often leads to failure In this extract from their book Selfish, Scared & Stupid, Dan Gregory and Kieran Flanagan reveal how being fearless – while idealized to a great extent – can lead to sloppy mistakes and poor decisions

to settle within a short drive from where we grew up. Also, we are mostly inclined to base our judgment on past experience instead of speculating with the new, however compelling. In truth, we love to look at the adventurous road, but mostly from the comfort of the safe path. But is that such a bad thing? Can fear be a factor in achievement? And is the favouring of heroism and persistence over contrary data and good judgment actually a formula for success or simply a way to have stories told about you in the past tense? As is the case with many such questions, it kind of depends.

Fear is one of the reasons we have survived THROUGHOUT HISTORY, the headlines and accolades have always belonged to the fearless. We celebrate the heroic souls who dismiss personal safety and stride forth into the fray against odds that seem insurmountable. St. George and the dragon, Jason and the Argonauts, Odd and the Frost Giants – almost every culture has its myths and legends lionizing bravery and self-sacrifice. So, what is it that we find so enticing about bravery and fearlessness when most of us, in reality, prefer lives of relative safety and comfort?

Certainly, part of it has its origins in our evolutionary history: Adrenaline in correct doses is a highly addictive substance, hence our obsession with horror films and roller coasters. However, one of the more significant reasons the fearless are so admired is that they very much represent the outliers in the human experience. Few of us regularly seek out truly risky situations. For instance, most of us prefer job security to the unknown of the entrepreneurial lifestyle, and though many of us do travel, most of us prefer

Fear, it turns out, is actually quite a useful emotion when it is appropriately applied. An overly curious nature mixed with naivety and overconfidence can be a recipe for disaster. Sending a canary into a mine to test for the presence of gas, while cruel, is actually a pretty savvy thing to do. In this case, fear not only ensures the survival of many miners, it also increases the chances of eventual success while reducing costs – miners are rather more expensive than songbirds. What’s more, many of our latent fears – spiders, heights, water – are based on our survival; all have their origins in some pretty

www.insurancebusiness.ca

50-51_BizStrat Why Fearlesness-SUBBED.indd 50

14/08/2015 5:25:36 AM

rational concerns. Where fear can undermine leadership is when it becomes paralyzing, when judgment is replaced by constant evaluation and data-seeking. The truth is, in any decision we make, we never have the complete picture or enough information. This, it turns out, is why good judgment is so critical to good leadership.

order to generate the behavioural change we so desire? How can we generate an opposite fear, one that is linked to not changing? TEDx speaker Kelly McGonigal and other health psychologists assert that, contrary to popular belief, not all stress (which is essentially a fear of possible outcomes) is necessarily bad. They further state that stressful experiences can be used to promote adaptive responses, and that individuals can be

Rebalance the fear This is perhaps the most important point. We are not advocating that you ignore your fears or throw yourself at them as part of a midlife extreme-sport crisis, nor are we suggesting they are all irrational and imaginary. What we are suggesting is that they can be useful for driving change and shifting behaviour, and this relies on shifting the balance of the fear equation from one side to the other.

Fear can be an aid to judgment One of the things that particularly defines leadership is a willingness and ability to make decisions and back them up. What this really means is embracing ownership of the results. One of the burdens of leadership is that when you do achieve success, it’s your team who won, but should failure be the outcome, only you lost. This makes good judgment one of a leader’s key accountabilities, and fear must necessarily be a part of this equation. It has us identify and weigh risks, and consider more than just the possibility of success and account for it. One of the criticisms we often make of strategic business plans is that the margins allowed for error are so slim. In other words, success is only guaranteed if everything goes exactly according to plan. Of course, this is statistically unlikely, and a far better approach is to stack the odds of success in your favour by implementing systems and processes that allow for success, even on those days when not everything goes as it should. Failure is often cited as being critical to success. But this is far more than a twee catchphrase of the eternally optimistic; it is a recognition that failure, rather than being a result, is a constant feature of the results we produce daily, and should therefore be accounted for.

See fear as a lever for positive change If we accept that fear has a lot of downsides, how can we turn this around and use fear as an asset in achieving positive change, in

One of the burdens of leadership is that when you do achieve success, it’s your team who won, but should failure be the outcome, only you lost trained to think of stress arousal as a way of maximizing performance. The long and short of it is that reframing fear as an asset can not only remove impediments to performance, but can actually serve to heighten and lift it. Fear (and its close cousin, stress) is suffering from some bad PR and really needs some rebranding. We all need reminding that sometimes fear has been the good guy, and it has certainly been a considerable asset in the armoury of social change. Rory Sutherland, vice chairman of Ogilvy Group UK, famously tells the story of Atatürk, a military leader in the then Ottoman Empire and later the first president of Turkey, who, in an effort to stabilize the food supply, added an additional carbohydrate to the mix – in this case, potatoes – flipping the fear of eating potatoes into a fear of not eating them. In fact, by decreeing them a ‘royal’ vegetable that no commoner was to eat, he ensured that not only was the fear flipped, but a desire to eat them was achieved. Rather than seeing fear as one-sided, these examples show that, by seeking to defeat or decrease the fear that was limiting them, people found that a better, or more compelling, strategy was to increase the fear on the other side of the equation.

For instance, if you are afraid to go for a jog because you’re looking a little soft around the middle and are scared that people might laugh at ‘the fat guy in tight-fitting exercise gear,’ that’s one side of the fear ledger. But if a chainsaw-wielding madman were storming through your house, you would not only jog, but hurdle, parkour, long-jump and sprint, all while dialling for the emergency services. (And if anyone did choose to criticize you at this juncture, you would happily use them as an obstacle to slow down the chainsaw-wielding maniac.) Next time you’re quaking in your boots and wishing you had picked up that ‘clinical strength’ antiperspirant, stop to consider fear not as a barrier to success but possibly as one of the most overlooked and underutilized motivators we have for driving us to success. Then set about reframing your fear. The trick is to see fear – when appropriate – as a useful tool of leadership rather than as something to avoid.

Kieran Flanagan and Dan Gregory are behavioural researchers and strategists. Flanagan is chief creative officer at The Impossible Institute, while Gregory is president and CEO of The Impossible Institute.

www.insurancebusiness.ca 51

50-51_BizStrat Why Fearlesness-SUBBED.indd 51

14/08/2015 5:25:41 AM

FEATURES

VOLUNTEERING

Does corporate volunteering really work? Does letting staff go out and volunteer one day a year really create value for the charity? Peter Baines outlines a different approach to corporate volunteering – one that all parties can truly benefit from I OFTEN get asked the question: Does corporate volunteering really work? To put it simply, it can, but it often doesn’t – and even if it is working, it’s very unlikely to be reaching its full potential. As a senior executive, partner or director of a business, setting the strategy for the organization is part of your duty. Maximizing returns for the partners or shareholders is also part of your fiduciary responsibility. Getting your corporate social responsibility strategy right can and should be a profit centre back to your company, and how you deploy your resources in this area is very much part of that strategy. Corporate volunteering, in the traditional sense, is when businesses give their staff one work day to volunteer with their charity of choice – a tactic that is probably wasting both the company’s time and that of the charity partner. You may ask, “How can this be a waste of time for the charity? We are skilled professionals working for free to make a difference.” Put yourself in the charity’s shoes, and consider that you have a well-meaning, highly qualified individual turn up for the day to help. Just for one day. Once a year. After you get the introductions out of the way, have shared a coffee and arranged a

security pass, the charity has approximately six hours worth of productive time left before you leave their office and return again, perhaps, in a year’s time. No one stands to get much value out of this type of relationship because, really, how can they? One of two things is likely to happen when staff members participate in corporate volun teering. Those who take the day off and work productively with a charity have most likely been doing some sort of volunteering for

several years, and it is already part of their life. The business giving them the day off just allows them to go on company time. The other likely scenario is that the employee’s volunteering day is spent at the beach, where they’ll be working hard on catching waves or getting a tan.

So, can it work? The answer is yes, it can work. Just like any other initiative the company takes, if there

www.insurancebusiness.ca

52-53_BizStrat_Volunteering-SUBBED.indd 52

14/08/2015 5:25:57 AM

is a considered strategy behind the program, there is a greater chance of success and a meaningful value exchange between both parties. In Doing Good by Doing Good, I share a number of examples as to how corporate volunteering can work, from large firms down to small businesses and even sole practitioners. Often the most effective resource you can offer a charity or nonprofit is those skills you use on a daily basis and get financially rewarded for. If you are an accountant, lawyer

volunteering really for?” If the honest answer is the charity partner, then the provision of professional services they are in need of will achieve that outcome. If it is more akin to a team-building exercise, and the charity is the vehicle for that program, then the direction of the program is different. The latter is not wrong, just a different approach with a different outcome. It’s about getting the strategy right, and this is where the opportunity to create a meaningful experience really exists.

Often the most effective resource you can offer a charity or nonprofit is those skills that you utilize on a daily basis and get financially rewarded for or provider of professional services, there is a strong chance that you are better at providing those services than you are at building houses or mending leaking roofs. Sashi Veale of Sashi Veale and Associates is an accountant who, for years, has been supporting charity by preparing the financial accounts for a select number of charities on a voluntary basis. She does this above and beyond her commercial work, and, although I haven’t seen Sashi on the end of a hammer, I have a strong suspicion that the value she brings to the charities she supports is far greater through her provision of ‘voluntary’ professional services. After all, this is what the charities she supports need. Part of the argument around corporate volunteering is, if the firm that I’m a partner of only offers our professional services on a pro bono basis, do we miss out on the engagement and the shared experience of actually ‘getting our hands dirty?’ After all, isn’t part of a good corporate social responsibility program the shared experience that leads to higher levels of staff engagement, improved morale and increased staff retention, and if so, how is doing more of what they do, but for no fee, achieving that outcome? This is where a strategic approach is required. Ask those internally who are par ticipating in the program: “Who is this

Is one day per year helpful? Let’s return to the concept of volunteering one day per year. You might be the senior executive or director of an organization with 400 people. You offer each of them one day off a year to volunteer with their charity of choice, or perhaps with the charity your business supports. The first question to ask is how many of those 400 staff actually avail them selves of the day and use it for the intended purpose? Of those, how many are providing meaningful assistance to the charity they are working with? And finally, how many of those who don’t take it would be happy to see it used by someone who was interested and did have the relationship? This is where we can leverage some real value. If two-thirds of the staff donated their day back to the organization, and those days were taken consecutively by one person to work at one organization, this would give the charity a dedicated full-time worker for the entire year. Now we start to see real value to the charity. What flows back to your business? A story of meaningful change – one person working full-time leading a project within a charity can bring about real change. So, does this mean there is no place for the group volunteering days when we all put

on overalls and insert a paint brush into our right hand? No, it does not. One of the most memorable days I have had working with a corporate team was when I led 103 members of AIA Insurance into the Khlong Toei slums of Bangkok in Thailand. For close to eight hours, they toiled away in a place they had never been and were unlikely to ever return, for people they had never met nor were likely to meet again, but they had one of the richest shared experiences you can imagine.

KEY QUESTIONS If you have volunteering as part of your CSR platform or you are looking to introduce it, ask yourself a number of questions: Is there a strategy behind our corporate volunteering? Is it aligned to our values? Who is it really designed to benefit, and are those who are meant to benefit from the program in fact doing so? Can we re-engineer our volunteering to create a multiplier effect or shared experience? What is the return to our business, and how are we measuring it? If you can answer the last of the questions above in the affirmative and clearly articulate the program’s positive return to your business, then you are well ahead of 90% of organizations who are engaged in corporate volunteering. If your answer to the final question is in the negative, then you are missing opportunities and are failing to capitalize on the returns you could be bringing in. It’s not only in the communities’ interests for you to get this right – it is in your interests as well.

Peter Baines, OAM, became passionate about sustainable leadership after he was part of the natural disaster response team for the 2004 Boxing Day Tsunami. Today, he helps businesses build effective sustainable leadership. He is the author of Doing Good by Doing Good. Find out more at www.peterbaines.com.au.

www.insurancebusiness.ca 53

52-53_BizStrat_Volunteering-SUBBED.indd 53

14/08/2015 5:26:02 AM

PEOPLE

CAREER PATH

BORN INTO INSURANCE E BROKE LIT

As a second-generation broker, CJ Nolan hardly fell into the industry – he jumped in with both feet 2013

MAKES INSURANCE BUSINESS 2 013 CANADA’S ELITE BROKERS LIST Nolan’s work with Munn Insurance and the Insurance Brokers Association of Newfoundland is hardly going unnoticed. In 2013, Insurance Business Canada named him one of our Top 30 Elite Brokers “I was very humbled by that. I thought it was so terrific to be named in such an elite group”

A few years after training in commercial lines, Nolan took over as manager of the division at Munn. He 2012 more than doubled the BECOMES VP company’s commercial volume and OF SALES AND BUSINESS has increased sales by double-digit percentages DEVELOPMENT year after year. That dedication led to his being named the VP of sales and business development in 2012, a position he still holds

“I think the greatest challenge for us as brokers right now is utilizing technology and progressing in a digital environment. That’s something that we’re very challenged with every day”

2013

BECOMES BROKERS ASSOCIATION PRESIDENT

2005

HELPS START YOUNG BROKERS ASSOCIATION

2004

TRAINS WITH AVIVA’S COMMERCIAL DIVISION Feeling his personal lines learning curve beginning to plateau, Nolan took nearby Aviva Insurance up on its offer to train him in commercial lines “You’re never dealing with the same risk, whether it’s a home policy, an auto policy, a commercial policy or a professional liability policy. Everything is a little different, and I think that’s what keeps it interesting” Nolan can honestly say he’s been in insurance his entire life. As a high school summer job, Nolan helped around his father’s Munn Insurance office, doing some small underwriting tasks. He went on to take his licensing exam when he was barely out of high school

Nolan spent two years as president of the Young Brokers Association before graduating to the board of the senior provincial organization. In 2013, he became president of that association and worked tirelessly to usher the industry into the 21st century

2001

In an effort to get more young people involved in the industry, Nolan and a colleague started the Young Brokers Association of Newfoundland and Labrador “I don’t know if we do a real good job of letting people know how great our industry is. A lot of people fall into the industry”

GRADUATES FROM UNIVERSITY

1997

EARNS HIS GIE LICENSE

Nolan entered the Memorial University of Newfoundland with the intention of earning a business degree, but took a special interest in sociology “Sociology is the study of human behaviour, and I found that very interesting. Doing a full-on business degree wasn’t the path I wanted”

www.insurancebusiness.ca

54_Career Path-SUBBED.indd 54

14/08/2015 5:26:21 AM

PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email insurancebusiness@kmimedia.ca

CATCHING THE WIND Whether he’s steering a boat or behind his desk at work, life is one big family tradition for Andrew Robertson

ANDREW ROBERTSON, the vice president of marine programs for Skippers’ Plan, has been boating for twice as long as he’s been selling insurance. In fact, boating is something of a family tradition, passed down to him from his grandfather – and he’s keeping it going with his own children. “Boating or sailing is one of the few activities that you can enjoy with your entire family,” says Robertson, a former Canadian Armed Forces helicopter pilot. “I like getting out on the water with the kids on the weekends and weeknights, and it’s one of the few

Fastest speed, in knots, that Robertson has sailed

activities where you can do that.” Skippers’ Plan, which was formed in 1948 and specializes in marine insurance, is also something of a family tradition. Robertson was the third generation to run the company before it joined the CG&B Group in 2010. Robertson says boating provides a great psychological escape from the stresses of the insurance industry. “Once you step off the dock and onto the boat to go sailing, you leave all the problems on land behind you. Everything that goes on on-shore is out of mind for the time you’re out there.”

Largest boat, in feet, that Robertson has skippered

1,500

Longest non-stop trip, in nautical miles, that Robertson has completed

www.insurancebusiness.ca www.ibamag.com

55_Other Life-SUBBED.indd 55

14/08/2015 5:26:39 AM

FEATURES

EXPERT ADVICE WHAT ARE BROKERS MOST INTERESTED IN LEARNING ABOUT? According to John McNeil at RSA, the top three most popular continuing education topics are:

1 Telematics

How insurers can help with certification THE BROKERAGE landscape is changing as a wave of new talent enters the insurance industry. With that comes the need for brokerages to instill confidence and know-how into their teams in order for them to sell new products and face new challenges. This can best be attained through training and continuing education programs. The insurance frontier is also changing. With the emergence of new products and weather-related threats, education and training are in higher demand now more than ever. As a broker, you might find it difficult to locate continuing education programs that cater to your learning style and fit into your busy schedule. Brokerages and their teams are not in it alone. Although training programs are offered through the Insurance Institute and regional governing bodies like the IBAO, at RSA we believe it’s also up to insurers to work with

brokers and help prepare them to become leaders in the industry and to face tomorrow’s challenges together. Insurers also can simultaneously help brokers earn their continuing education credits. What can insurers offer? There’s a big difference between providing education for the sake of fulfilling hours and providing education that will make a difference to your future as a broker. It should be insurers’ ultimate goal to provide a quality educational experience. When it comes to training brokers, the best way to achieve this is to tailor the way insurers present their courses to accommodate an array of learning needs. When building a continuing education program, it’s important to cater to different learning styles, using approaches like hands-on and scenario-based methods to train brokers. This allows brokers to learn via a variety of

2 Flood

Cyber liability

formats, using the tool that works best for them, be it a class, webinar or a podcast. Gone are the days of passive learning and lecturing for hours in front of a class via Power Point. Education and training experiences need to resonate with the learner so the information that is being presented sticks. Learning programs should be designed with consideration of different learning needs, as well as consideration of brokers’ busy schedules. You should have the option to self-manage your continuing education, making it easier for you to stay well informed and achieve your goal of certification. As part of RSA’s transformation, we are making a significant investment in our broker partnerships by providing quality broker education programs. Realizing that our brokers are the difference makers, we’ve put together a series of comprehensive training sessions that are designed to accommodate a broker’s busy schedule. These programs are not just about training you on how to succeed using RSA’s tools and products, but also offer you training on the latest industry issues, soft skills, negotiation and sales. Our programs were launched to RSA brokers on September 1. To find out more about how you can benefit from RSA’s educational offerings, visit www.rsabroker.ca/ brokereducation.

John McNeil is manager of learning and development, national sales and distribution for RSA.

www.insurancebusiness.ca

56-IBC_Expert Advice-SUBBED.indd 56

14/08/2015 5:27:06 AM

For those who know peace on the water starts with insuring what can happen above and below the surface. You can depend on our 140 years of experience, financial strength, specialized underwriting and claims expertise as we partner with brokers and agents to deliver innovative solutions to target customers.

Know more at guaranteegold.com

For those who know

56-IBC_Expert Advice-SUBBED.indd 57

4950 Yonge Street

Phone: 416.223.9580

14/08/2015 5:27:16 AM

Stolen laptop. Malicious Code. Hacked network.

Why travel?

When you can TravelWell®

You didn’t plan for a privacy breach, but are you covered?

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.

The types of privacy breaches are evolving. Your business insurance There should too.options to choose from: are two

• TravelWell® Emergency Medical Plan

Intact Insurance Company’s new cyber endorsement provides first-party coverage for • TravelWell® All-Inclusive privacy breaches. In the event of a breach, we provide resources, access to tools and Plan support to help customers get back. • Policy limit of $25,000* to spend on related remediation costs • No questionnaire or form is required

Talk to your Intact Insurance representative about TravelWell® today.

• Introductory fee of $96 per year • Access to information and services provided by IDT911, an independent service provider, specializing in: • Education, assessments and best practices • Identifying security gaps and controls to help prevent a breach • Expertise and technical support during the policy period The rapidly evolving threat of cyber risk in Canada is hard to ignore. With Intact Insurance’s Cyber Endorsement, now is the best time to enhance your existing commercial property coverage. At Intact Insurance, we make protecting your business our priority. Contact your Broker for more information about Cyber Endorsement.

HOME • CAR

•

B U S IN E S S

*Per claim and in the aggregate. Certain conditions, limitations and exclusions apply. The information that appears on this advertisement is provided to you for information purposes only. Your insurance contract prevails at all times. Please consult it for a complete description of coverage and exclusions. Non-insurance services are provided by The logothird is aparty. registered trademark Association of Canada (IBAC). All other trade-marks IDT911, Inc., BIP an independent These services provided do not constituteof legalthe advice.Insurance If you require legalBrokers advice, please consult a lawyer. Intact Financial Corporation and its affiliates assume no responsibility for making the services available to you or for your use of the services. The BIP logo is a registered trademark of the Insurance Brokers of Canadaof (IBAC). All other Financial trademarks are property of Intact Financial Corporation under license. © 2015, Intact areAssociation property Intact Corporation used used under license. ©Insurance 2009,Company. Intact Insurance Company.

OBC.indd 10

14/08/2015 6:08:32 AM