Insurance Business Canada 4.03 by Key Media

WWW.INSURANCEBUSINESS.CA ISSUE 4.3 | $12.95

YOUNG GUNS In the hands of these 50 rising stars, the future of Canada’s insurance industry is bright

FROM BOATS TO CLASSIC CARS

The essential coverages your clients need to protect their summer pursuits

OFC & spine-SUBBED.indd 2

GOODBYE TO GOOGLE

The tech giant has exited the insurance space – but brokers shouldn’t get too comfortable

THE CYBER CONUNDRUM

Why your clients aren’t purchasing cyber insurance – and what you can do about it

21/06/2016 4:13:02 AM

IN LOCKSTEP WITH YOU, LONG TERM. 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

IFC-01.indd 4

21/06/2016 4:11:47 AM

4093

PROFESSIONAL COVERAGE IS OUR MIDDLE NAME. Only Burns & Wilcox has the depth and breadth of experience to deliver the right solutions right away.

burnsandwilcox.ca

40939 BURNS IFC-01.indd 5 Insurance Business Professional Canada Resize APPROVED.indd 1

6/8/16 5:12 21/06/2016 4:11:59 AMPM

ISSUE 4.3

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

Bridging the industry’s age gap

06 Statistics

YOUNG GUNS 2016 COVER STORY

FEATURES

PROTECTION FROM CYBER CATASTROPHE

A potential solution for increasing cyber coverage take-up rates

CLASSIC CAR COVERAGE

What brokers need to know about insuring vintage vehicles

Google’s exit from insurance hardly marks an end to industry disruption

12 Intelligence

This month’s big movers and shakers

14 MGA update

FEATURES 48 Are you making the most of your boat-loving clients?

Now that summer’s here, it’s important to protect boats both in and out of the water

56 Expert advice

Why directors and officers might need Side A DIC coverage

PEOPLE 46 Broker insight

Wilson Insurance’s Jonathan Hines on the broker’s role as an advisor

54 Career path

FEATURES

MAKING HIRING DECISIONS

When to rely on data and when to go with your gut

10 News analysis

Compelling evidence for small business clients who think they’re immune to cyberattacks

FEATURES

Intact Insurance’s JeanFrançois Blais weighs in on where insurance companies need to focus to prepare for the future

Will recent terrorist attacks drive demand for war and terrorism coverage?

16 Opinion

The insurance industry as a whole may be getting older, but these 50 young stars prove that there’s plenty of up-andcoming talent as well

INDUSTRY ICON

08 Head to head

MGAs are stepping up to cover Canada’s Olympains against Zika virus

YOUNG GUNS 2016

PEOPLE

The importance of education in attracting millennials

John Ferraro is as committed to his family and charity as he is to his career

55 Other life

Marsha Jones Dooley hits all the right notes

INSURANCEBUSINESS.CA CHECK IT OUT ONLINE

www.insurancebusiness.ca

02-03_TOC-SUBBED.indd 2

22/06/2016 3:04:22 AM

CA W

AVOID NASTY SURPRISES

When it comes to cyber risk our specialist insurance policies leave no stone unturned. For organizations that rely on technology, cyber threats can emerge in many ways. For some the consequences can be devastating. Our cyber product covers the liability which may arise, together with the policyholders own losses. And all in one affordable price. So you and your clients can rely on Markel 100% â&#x20AC;&#x201C; without a shadow of doubt.

www.markelinternational.ca/cybercover

WHY RISK GOING ANYWHERE ELSE?

CA Why Risk Cyber 8.25x10.875.indd 1 02-03_TOC-SUBBED.indd 3

08/02/2016 16:33 21/06/2016 3:48:02 AM

UPFRONT

EDITORIAL

Young, ambitious – and necessary

s summer continues, the insurance industry looks forward to another busy season of college job fairs, meetings and rounds of interviews. In between the conversations and frustrations that attend such a task, it isn’t an uncommon sight to see silver-haired professionals shake their heads and laugh – or cringe – at the changes in today’s youth. They seem uninterested in insurance, or to want too much too quickly, perhaps. Yet they are a critical piece to the continued survival and overall health of the industry. After all, the average age of an insurance professional in North America these days is 59, and the industry will need to fill 400,000 positions by 2020 to keep pace with retirement rates.

It’s easy to build up walls between the tried and true members of the industry and those who are just getting their start. It takes a lot more work to scale that wall It’s easy to build up walls between the tried and true members of the industry and those that are just getting their start. It takes a lot more work to scale that wall and join together in pursuit of shared success. This year’s Young Guns list features exceptional professionals under the age of 35 who have managed just that. Not only have they made a name for themselves despite their limited years, but they have benefited their respective workplaces and the industry as a whole in doing so. These future leaders from across the industry will help to inspire change in the way the insurance industry captures and utilizes young talent. We hope you will take the time to learn from these Young Guns and the stories they share in order to enrich diversity and scale the generational walls of your own agency – selfie stick in hand or not.

www.insurancebusiness.ca JULY/AUGUST 2016 EDITORIAL Senior Writer Penelope Graham Writers Libby Macdonald Tim Garratt Henry Preen Paul Lucas Joe Rosengarten Caitlin Bronson Lyle Adriano Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Michelle Lopilato Christine Khor

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

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

EDITORIAL INQUIRIES

penelope.graham@kmimedia.ca

SUBSCRIPTION INQUIRIES

tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca

ADVERTISING INQUIRIES eric.langille@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, London, Auckland, Manila

The team at Insurance Business Canada CMCA AUDITED

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

INSURANCE BUSINESS UK

editor@insurancebusiness.co.uk T +44 20 7193 0935

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

21/06/2016 9:19:04 PM

It’s not what we do that makes us different... it’s how we do it!

Find out more about our industry leading specialty insurance and surety solutions at

www.trisura.com

a step above

Trisura Guarantee Insurance Company is a Canadian owned and operated Property and Casualty insurance company specializing in niche insurance and surety products. We are a proud supporter of the Insurance Broker’s Association of Canada.

04-05_Editor's page-SUBBED.indd 5

21/06/2016 3:48:54 AM

UPFRONT

STATISTICS

The broker learning curve

ACCREDITATION REQUIREMENTS BY PROVINCE

Are Canadian brokerages adapting effectively to the shift in industry demographics? THE AGING population of the insurance industry has made it necessary for employers to invest in recruiting and retaining younger workers. Central to this investment is the need to provide engaging, relevant training, which can be delivered in various formats. More than any generation in history, millennials choose where they’re going to work based on considerations such as learning and development opportunities. If an ambitious millennial

doesn’t perceive a potential employer to be committed to educating brokers, there’s a good chance they’ll turn down a job offer. In today’s competitive industry, broker education is imperative, but it’s not just down to employers. Brokers have to be proactive and forward-thinking about keeping up-todate with the industry. So what is the state of broker education across Canada, and what do brokers need to get accredited?

Accreditation requirements vary provincially – Ontario, Alberta and Quebec require the greatest amount of time of continuing education hours per year. RSA’s continued investment in broker education has resulted in significant cost savings to brokerage principals, who usually bear the cost of training their staff. As seen here, these costs can add up quickly.

BRITISH COLUMBIA

Number of minutes the average learner can focus in one stretch

36.3

Number of hours, on average, Canadians spend online every month

90%

Amount of energy e-learning saves compared to traditional courses

4 hours for brokers with designation (CIP, CAIB, etc.) 6 hours for brokers with 5–7 years of experience 8 hours for brokers with less than 5 years of experience Average cost of broker training: $1,074

60%

Potential increase in information retention rates via e-learning

Sources: Faculty Focus, eCanadaNow, Lanterna: “Future Classroom: Why the digital textbook is becoming the preferred choice”

DEMOGRAPHIC SHIFT

GROWTH OF MILLENNIALS

The demographics of Canada’s insurance industry are clearly changing – in 2007, the median age was 42 for men and 41 for women, compared to 40.5 and 41, respectively, in 2012. The share of millennials has increased at the expense of the share of Baby Boomers.

Millennials have recently become the biggest cohort in the Canadian workforce, which has forced employers to change their workplace policies. This generation has higher expectations for continuous on-the-job training. In addition, because the vast majority of millennials are digitally competent, training programs should be sure to feature integrated technology for instruction.

2007

12% 36%

49%

Baby Boomers (age 41-60) Generation X (age 28-40) Millennials (age 12-27)

2012 27%

37%

35%

Baby Boomers (age 46-65) Generation X (age 33-45) Millennials (age 17-32)

Source: Insurance Institute of Canada, “A Demographic Analysis of the P&C Insurance Industry in Canada 2012 – 2022”

PROJECTED CANADIAN POPULATION BY GENERATION

12 million 10 million 8 million 6 million 4 million 2 million 0

2015

2020 Millenials

2025

2030 Generation X

2035 Boomers

2040

2045

2050

Pre-Boomers Source: Statistics Canada

www.insurancebusiness.ca

06-07_Stats-SUBBED.indd 6

21/06/2016 4:04:18 AM

QUEBEC

ALBERTA

20 hours for all brokers Average cost of broker training: $2,000

15 hours for all brokers Average cost of broker training: $1,575

MANITOBA 8 hours for general brokers 4 hours for auto-only brokers Average cost of broker training: $600

ONTARIO 10 hours for principals 8 hours for CSRs Average cost of broker training: $1,800

SASKATCHEWAN 12 hours for brokers with less than 25 years of experience 8 hours for brokers with more than 25 years of experience or a designation Average cost of broker training: $1,000

Source: RSA

THE IMPORTANCE OF TRAINING AND RETENTION Recent research indicates that 40% of employees who don’t receive the desired level of training leave their positions within the first year – and they cite the lack of skills training and development as the principal reason for moving on. Conversely, employers say ongoing training has positive implications for both the employee and the company as a whole.

90% YES Does ongoing education have a positive impact on job performance?

78% YES Does ongoing education factor into promotion and advancement?

Total global spending on education is around $4.45 trillion, and that figure is expected to grow 7% annually. Meanwhile, the online/e-learning market is slated to grow by 23% during the same period. Showing a strong commitment to broker education is a core strategy of RSA. Find out more at www.rsabroker.ca.

13%

22%

E-LEARNING: GROWTH SNAPSHOT

87%

$255 billion

YES Does ongoing education affect compensation and salary?

2017

$166.5 billion $90 billion

2015

2014 Source: Evolllution: Lifelong Education and Labor Market Needs

Source: World Economic Forum

www.insurancebusiness.ca 7

06-07_Stats-SUBBED.indd 7

21/06/2016 4:04:23 AM

UPFRONT

HEAD TO HEAD

What’s next for war and terrorism insurance? Will recent attacks cause an uptick in the market for war and terrorism insurance coverage?

Janice Ochenkowski

Chair RIMS External Affairs Committee

Rosemary Robbins

VP, property Liberty International Underwriters

Nick Greggains

“War and terrorism insurance remain high on the interest list of RIMS’ risk management professionals. As war and terrorist events escalate globally and new types of risk evolve, RIMS’ members are reviewing insurance policies and searching the insurance market for new options and increased limits of coverage. In the United States, reauthorization of TRIA provided a backstop that ensures coverage availability, although RIMS continues to recommend clarification regarding issues such as declaration of an event, in order to enhance the existing program. Broader coverage and higher limits for war-related risks such as NBCR are also needed globally and remain a key focus of risk professionals.”

“There is a growing public perception of terrorist activity on a global scale, with larger, well-organized groups posing an increasing threat of catastrophic damage, as witnessed recently in Paris and Brussels. Consequently, the commercial world is increasingly – and understandably – seeking insurance protection against the potential damage and cost that can result from terrorist activities. While terrorism continues to be excluded under all risks policies – a consequence of 9/11 – affordable cover is readily available with few restrictions. We should see continuing market growth as businesses – both domestic and those with foreign exposures – seek protection against the devastating impact of attacks.”

“Recent terrorist attacks show a change from large-scale, carefully orchestrated events to higher frequency, lower-severity attacks carried out by small groups or individuals. This doesn’t mean the need for comprehensive property and business interruption coverage has diminished – risk managers are still seeking large limits to protect company infrastructure and assets. Organizations are also looking for additional localized coverage to manage the broader spectrum of political violence risks to address their risks in emerging markets, as well as the more traditional terrorism risk in metropolitan areas. Understanding exposure to the full spectrum of risks has become essential to addressing the evolving threats.”

CEO XL Catlin Canada

COVERAGE FOR A CHANGING WORLD Recent attacks in France and Belgium and the downing of EgyptAir flight MS804 have generated greater demand for coverage. Recent statistics from the Institute for Economics and Peace show an 80% increase in the total number of deaths from terrorism over the last year for which figures exist – the largest yearly escalation seen over the previous 15 years. It is consistent with the overall trend seen since 2010, in which the number of deaths from terrorism has risen by almost a factor of 10.

www.insurancebusiness.ca

08-09_Head to head-SUBBED.indd 8

21/06/2016 4:05:09 AM

I am a CEO. Protect me. I have thousands of employees worldwide, working in dozens of offices. I have a C-suite of talented executives and my company’s reputation and profitability to protect. I have a broad range of risks facing me, my business and my employees. I want a particular kind of protection and level of service that comes from decades of experience insuring large corporations and their unique assets. Not just coverage. Craftsmanship.SM Not just insured.

Chubb. Insured.

©2016 Chubb. Coverages underwritten by one or more subsidiary companies. Not all coverages available in all jurisdictions. Chubb®, its logo, Not just coverage. Craftsmanship.SM and all its translations, and Chubb. Insured.SM are protected trademarks of Chubb.

08-09_Head to head-SUBBED.indd 9

new.chubb.com

21/06/2016 4:05:13 AM

UPFRONT

NEWS ANALYSIS

Googling the future of the broker Google Compare and other tech startups may have shut their doors, but their absence only creates a vacuum, and brokers shouldn’t get too comfortable THIS MAY well be remembered as the year of insurance startups. Already, a record 24 seed or Series A deals for technology-based insurance companies have been completed in North America, and investors continue to express interest in startups promising to disrupt a $1 trillion industry. And the area they see most ripe for disruption? The insurance broker distribution channel. Citing an aging workforce, changing customer expectations and the success of direct-selling models in other industries, startups and investors feel the days of the independent broker are numbered. Loath to accept even the possibility of such a reality, however, brokers are closing their ears to these arguments and are instead looking to the fall of some of these companies as evidence that

insurance business with enthusiasm, industry experts are urging them not to read the closure as either a failure of online comparison services or a validation of brokers who have shunned technology. Once billed as a serious threat to brokers, Google Compare operated for less than a year before the tech giant decided to pull the plug. However, both partners and competitors say this closure has more to do with the company’s good business sense than a sign that the online comparison model is flawed. “It wasn’t overly shocking. It’s always been strange that Google came into the industry,” says Laird Rixford, president of Insurance Technologies Corp., the US-based software provider that powered Google Compare’s back-end rating system.

“Insurance isn’t a pair of shoes being sold on Amazon. We feel like consumers need a trusted advisor ...” Keith Moore, CoverHound their dominance cannot be questioned. The closure of Google Compare in the US back in March particularly illustrates this misguided thinking, insurance professionals and business analysts say. While brokers may have greeted the news of Google’s exit from the

Rixford observes that, because Google’s main revenue source is keyword-based advertising, the extension into auto insurance essentially “cannibalized” the company’s $50to $300-per-word revenue stream. A failure to attract some of the country’s larger auto

insurers, such as Allstate and Progressive, also damaged the company. Another reason Google Compare may have failed to take off is an ongoing reliance on insurance brokers. While online insurance offerings have increased over the years, a majority of auto purchases are still completed through individual brokers. The comparatively hands-off approach presented by Google Compare probably hurt the service, says Adam Lyons, CEO of The Zebra, a US-based comparison company. “Auto insurance is a complex product, and a lot of folks underestimate that,” Lyons says. “I think Google really focused on the pricing piece, and while that approach works very well for some products, you need to be more involved and have a deeper understanding of others. Insurance is proving to be one of those.” The treatment of auto insurance as a

www.insurancebusiness.ca

10-11_News Analysis-SUBBED.indd 10

21/06/2016 4:05:36 AM

ONLINE INSURANCE SHOPPING BY THE NUMBERS While shopping for insurance online has remained a flat trend, there is evidence to suggest the internet will grow in influence in coming years.

71%

of consumers shopping for insurance in 2014 obtained a quote online – a 4% increase from 2013

37%

of consumers said they would be likely to buy a policy online, up 5% from 2011

44%

consider price the most important attribute when shopping for policies

20%

of the largest global insurers promote an ‘omnichannel’ distribution, or integrated digital selling Source: comScore, Bain

commodity was one of the reasons The Zebra chose to pass on an opportunity to work with Google Compare, adds Lyons, who plans to use Google’s failed venture as a cautionary tale.

human interaction will be key. The same is true for comparison site CoverHound, a former Google Compare partner. CEO Keith Moore says that along with delivering value to carriers, one of the

“The consumer has changed over the years. Google was trying to chase that opportunity” Laird Rixford, Insurance Technologies Corp. “I think the lesson learned is that you need to help folks understand what insurance is as a product,” he says. To that end, The Zebra is heavily focused on educating consumers through tools like carrier comparisons and a guide titled “Insurance – in Plain English.” And as always,

reasons for CoverHound’s success is its focus on education and nuanced advisement. “Insurance is not a pair of shoes being sold on Amazon,” Moore says. “We feel like consumers need a trusted advisor to match them to the best carrier and not show them a list of 30 options with prices.”

Regardless of the continued importance of personal insurance consultation, brokers should not interpret Google Compare’s exit as “time for a victory lap,” warns Rixford. “Brokers need to remain vigilant [because] the consumer has changed over the years. Google was trying to chase that opportunity.” Now that Google has abandoned that pursuit, there is plenty of room for other companies to take its place as a leader in the online comparison space. MIT-developed Insurify recently pulled in $2 million in seed money, and Chubb took out a 24% stake in CoverHound earlier this year. And though these comparison tools have their roots in auto insurance, they have not been shy about expressing interest in expanding their services to homeowners and small business lines. With these new players nipping at their heels, Rixford argues that now is the time for insurance brokers to invest in comparative raters and other technology to meet new consumer expectations. “Don’t rest on your laurels,” he warns.

www.insurancebusiness.ca

10-11_News Analysis-SUBBED.indd 11

21/06/2016 4:05:43 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

HUB International

1st Alaska Insurance LLC

1st Alaska owner Mike Pate joins HUB Northwest arm

HUB International

First Santa Fe Insurance Inc.

First Santa Fe’s acquisition marks First National Bank of Santa Fe’s exit from the insurance business

HUB International

FirstBank Insurance Agency Ltd.

FirstBank is a general agency and subsidiary of First Bancorp that offers property and casualty insurance solutions

Allianz

Zurich Assurance Maroc

Zurich Assurance Maroc is the seventh largest insurer in Africa’s property and casualty sector

Interstate Restoration LLC

FirstOnSite Restoration G.P. Inc.

The purchase of FirstOnSite expands Interstate’s operations into the Canadian market, with a combined annual revenue of $300 million

Economical Mutual Insurance Company

Western Financial Insurance Company, PetSecure

PetSecure, formerly Desjardins Groups’ pet insurance business, is the largest in Canada

MGB Claims Consultants Inc.

Performance Group Insurance Solutions Inc.

The purchase of Toronto-based Performance Group gives MGB Claims a presence in both the Lloyds of London and Canadian marketplace

Chubb offers cyberbullying insurance

Chubb now provides insurance coverage for cyberbullying as part of its Canadian Masterpiece Family Protection policy. The policy will cover some of the common legal expenses associated with cyberbullying, including wrongful termination, false arrest and wrongful discipline at an educational institution. Policyholders who cannot return to work or school for more than a week due to mental anguish and injury are also eligible for compensation. While details on premiums have yet to be disclosed, the product provides up to $60,000 worth of coverage.

NFP partners with Dalton Timmis

Bank relinquishes insurance business arm

First Santa Fe Insurance Services, the insurance arm of First National Bank of Santa Fe, has been purchased by HUB International. The business unit now runs as part of HUB New Mexico, under the direction of president Randy Perkins. The acquisition allows First Santa Fe’s clients access to HUB’s property & casualty, employee benefits, risk services and personal lines solutions. John Asbury, CEO of the First National Bank of Santa Fe, said that the bank’s sale of its insurance arm will allow it to focus on its core banking businesses.

Insurance broker NFP has entered into a ‘strategic partnership’ with insurance brokerage Dalton Timmis that will allow NFP’s Canadian clients full access to Dalton Timmis’ property & casualty insurance products. Dalton Timmis’ clients also can choose from among NFP’s various employee benefits, wealth management, life and disability options. “We are thrilled to be partnering with Dalton Timmis Group, as we share a commitment to ensuring clients are well protected and receive outstanding care,” said NFP Canadian managing director Marty Shaw.

www.insurancebusiness.ca

12-13_Intelligence-SUBBED.indd 12

21/06/2016 4:06:04 AM

PEOPLE Ironshore expands North American M&A presence

Ironshore International has announced that its mergers & acquisitions unit will establish itself in the Americas. According to the company, the unit will “address complex, multi-jurisdictional transactions within the North and Latin American regions.” The team will be headed by Navine K. Aggarwal, the New York-based senior vice president and head of mergers & acquisitions for the Americas. The team will also make management appointments in Toronto and Atlanta.

NAME

LEAVING

JOINING

NEW POSITION

Denis Dubois

N/A

Desjardins Group

Senior Vice-President, Property and Casualty Insurance

Denis Berthiaume

N/A

Desjardins Group

Senior Executive Vice-President and Chief Operating Officer

Martin Stevens

N/A

Chubb Global Markets

Chairman, Aviation Division

Stephen S. Oh

Chubb Custom Market

XL Catlin

President, Excess & Surplus

Dean Connor

Sun Life Financial

Canadian Life and Health Insurance Association

Chairman

Jim Murphy

Insurance Brokers Association of Ontario

N/A

Bright Health offers individual insurance

Bright Health has announced that it has partnered with Centura Health and applied for a license to operate in Colorado, offering individual health insurance on the state exchange. “By partnering with Bright Health in their strategy to enter the individual insurance market in Colorado, we are working to deliver optimal health value with resources and services delivered through CHN that educate, engage and empower consumers to make smarter decisions about their health,” said Centura Health CEO Gary Campbell.

AIG launches crowdfunding insurance product

AIG has launched an industry-first insurance product designed to protect investors on equity crowdfunding platforms against issuer fraud. The Crowdfunding Fidelity product defends individual investors against the theft of issuer assets by issuer directors, officers or general employees who cause a direct loss to the individual investor. Additionally, the product helps build investor trust in crowdfunding investment platforms. AIG will work with crowdfunding platforms to ensure underlying issuer honesty.

Chubb names new aviation chairman

Chubb has appointed Martin Stevens as chairman of its aviation division. Stevens has more than 40 years of experience in the insurance industry, having served several other senior aviation underwriting positions. Chubb said Stevens’ appointment would contribute to the strategic management of the company’s aviation portfolio, as well as the development of the team. “Martin, with his wealth of insurance industry experience and market knowledge, is a great addition to our team and will help us to further expand our aviation capabilities,” said Matthew Shaw, division president of Chubb Global Markets.

Murphy leaves IBAO post

The Insurance Brokers Association of Ontario announced at the beginning of June that CEO Jim Murphy is leaving his post, effective immediately. No reasons have been given for his departure from the association. IBAO’s executive board has implemented an interim plan. The association confirmed that its operations are being managed and that it is seeking a replacement CEO. “IBAO is aggressively pursuing future opportunities for our members and is committed to finding a new CEO who will offer leadership and vision for our association,” said IBAO chair Michael Brattman. “Our members’ needs are our number-one priority.

www.insurancebusiness.ca

12-13_Intelligence-SUBBED.indd 13

21/06/2016 4:06:10 AM

UPFRONT

MGA UPDATE

No sweat for MGAs this summer MGAs are playing a critical role in providing comprehensive coverage to Brazil-bound athletes

confident that standard athletes’ policies will provide sufficient coverage. “The Zika situation hasn’t created any impact on our capability of underwriting the athletes or the cost of doing so,” says George McCarter, president of Jones Brown and Game Day Insurance. “[The athletes are] getting the same extent of coverage that they would have had before, in spite of the potential issues caused by Zika. Our

“The Zika situation hasn’t created any impact on our capability of underwriting the athletes or the cost of doing so”

As the Zika crisis continues to create havoc in South America, experts are struggling to predict what impact it will have on this summer’s Olympic Games and Euro Cup soccer tournament. The virus, which has been declared a global health emergency by the World Health Organisation, has the potential

NEWS BRIEFS

to put a real dampener on the events for both fans and athletes. But Canada’s athletes will know that, should the worst-case scenario occur, they’re covered with comprehensive insurance policies. It’s clear that Canada’s insurance industry hasn’t overreacted to the Zika situation, and industry insiders are

Totten Group taps Dei Cont as new EVP and COO

Denis Dei Cont has been appointed as executive vice-president and COO of Totten Insurance Group. Dividing his time between the company’s Oakville and Toronto offices, Dei Cont will focus on new product development and enhancing broker relationships. He will also lead the National Specialty division. “Denis has a reputation for steady leadership and an innovative approach to underwriting challenges,” said Totten president and CEO Susan Murphy. “His expertise and business acumen will impress our brokers.”

athletes are going to be well protected.” If there are any reported cases of Zika, specialist MGAs are ready to respond from a coverage standpoint. Policies for sports stars usually provide coverage for an outbreak or catastrophe, even if the scenario has not been identified or discussed; athletes are usually covered even if they don’t know about it. “National associations send their members across the world every year to participate in competitions, so this year is no different,” adds Nancy Au, vice-president of sports and recreation at Jones Brown. “In fact, national-level athletes have been to this part of the world this year already, and we haven’t had any claims that are related to Zika.”

Loss adjuster veteran to join CHES Special Risk

Tom Stanton has joined CHES Special Risk as managing partner and senior underwriter. With more than 25 years of experience as a loss adjuster and underwriter, Stanton brings considerable expertise to the team as it expands in key Canadian markets. “CHES Special Risk is dedicated to providing Canadian brokers with underwriting solutions that other insurance wholesalers cannot provide,” said CHES president Douglas Everett. “Tom will be instrumental in enhancing our service to Canadian brokers as we grow our business.”

www.insurancebusiness.ca

14-15_MGA update-SUBBED.indd 14

21/06/2016 4:06:33 AM

Q&A

Jean Laurin

The growth of MGAs in Canada

President ENCON GROUP

Years in the industry 31 Fast fact Since 1981, ENCON has managed more than 44,000 claims across all of its product lines and has settled losses totaling more than $1.5 billion

How has the MGA space grown in Canada within the past five to 10 years? In recent years, there has been a sizable surge in the number of MGAs entering the market. New insurance and reinsurance companies expanding into Canada have also tapped into existing MGAs to provide access to established distribution networks. For MGAs, these insurers have provided new products to be sold through their broker networks. This has been a win-win for both parties and a key growth factor in the MGA space.

This ensures that the broker is provided the technical information they need when helping their clients find the right coverage, and that knowledge of the specialized nature of the client’s business is there for the client when they need it the most – when a claim occurs. Service and trust go hand-in-hand with expertise – and they are also critical. When service and expertise are delivered in spades, then trust grows. If one of these elements is missing, then the relationship will break down.

How do you see MGAs evolving? What are some new specialty lines of coverage that have become more prevalent? Cyber liability and environmental liability insurance are two coverages that have seen a lot of growth in recent years. For example, ENCON holds regular educational webinars for brokers on environmental insurance that are typically attended by close to 1,000 brokers, so we know that this represents a growth area for both brokers and MGAs with a high level of expertise in this area.

What are some of the most important elements of the MGA-broker relationship? One of the most important elements is expertise. You could say that an MGA must be a ‘triple threat’ – they must excel at product, underwriting and claims expertise.

New website offers direct broker submissions

APRIL Canada has launched a brand-new, fully responsive website that will allow brokers to send submissions directly to APRIL and receive a personalized response. “This is a key step in transforming our business in the digital age,” said president and CEO Nick Kidd. ”We enable our brokers to make submissions directly through the web through standard applications and will ensure a slick follow-up. It’s been great to see that many brokers discovered this new functionality before we even started communicating!”

MGAs will thrive in areas that require local or specialized knowledge, and areas that don’t lend themselves to highly regulated environments where size is a requirement to compete. Opportunities will remain for MGAs as insurer consolidation continues, as new entrants look for distribution and as brokers seek alternatives to the shrinking number of insurers. Technology will also play a significant role moving forward as insurers increasingly turn to automation to achieve greater efficiencies – particularly in the small commercial business, where many MGAs have expertise. Conversely, MGAs will require substantial IT investments in order to compete. Smaller MGAs that do not have the financial capacity to invest may need to align with larger players or sell to insurers or larger MGAs.

Energi launches new property & casualty programs

Initially launching in parts of Western and Atlantic Canada, Energi of Canada’s new P&C program will provide insurance coverage and risk management solutions for energy-related risks, and will be made available only to organizations that implement best practices and show a sustained commitment to loss prevention. Energi’s new program will focus on some specific industry segments, including fuel distribution, fuel transportation, energy contractors, renewable energy and alternative energy solutions.

New device helps to reduce burst pipe damage

Aquatrip, a new product from APRIL Canada, aims to reduce the risk of damage caused by burst pipes by constantly monitoring a building’s pipe system for leaks. If Aquatrip detects a potential leak or pipe problem, the system will automatically shut off the building’s water supply. In addition to mitigating the costs associated with burst pipes, the device can also detect dripping taps and broken toilets, helping to reduce water bills and insurance premiums. It’s recommended that Aquatrip be installed by a professional plumber or contractor.

www.insurancebusiness.ca

14-15_MGA update-SUBBED.indd 15

21/06/2016 4:06:38 AM

UPFRONT

OPINION

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

Cyber risks for small businesses Data is the small business owner’s greatest asset – and their biggest liability, writes Michelle Lopilato IF YOU have sensitive or protected data in your care, custody or control, you have obligations to safeguard it and can be held liable for its disclosure. Data that is crucial to a company’s success is also highly valuable and easily monetized. Calculating criminals are looking for personally identifiable information, protected healthcare information, payment card information, intellectual property, authentication credentials, insider information and more. Disclosure of sensitive data can put a small business in serious jeopardy. In fact, the International Data Corporation found that 71% of security breaches target small businesses, and Symantec research reveals that staggering 60% of small businesses will shut their doors within six months of a cyberattack. The single biggest oversight of most small businesses is the belief that they will not be the target of a cyberattack because of their size. Hackers enjoy a big payout, but they are also opportunistic – they prey on the weak and are in business to make money. Hackers do not discriminate; data from a small business is just as valuable and fetches the same black-market price as the data found at large companies. Sensational news stories covering megasized data breaches lead us to believe that only the largest of companies that been breached. This is simply not true. According to a 2015 NetDiligence report, nanoorganizations experienced the most data breach incidents (29%), followed closely by small organizations (25%). Further, extremely

large breaches occurred in nano, small and large organizations. Do your clients still think their small business is unnoticeable and not a target? Ask them these questions: Does the business have an online presence? Does it connect to the Internet? Does it transact credit cards?

business allows a third-party provider access to any protected data in its care, custody or control, and the third-party provider discloses this data, it’s the business that will be subject to privacy laws, compliance with data breach requirements and resulting regulatory investigations, fines and penalties. Employees are a hacker’s best friend, and they may not be aware of this ongoing relationship. Hackers will take advantage of any opportunity, and even the best cybersecurity in the world can be breached by human negligence. Lost or stolen laptops and mobile devices, clicking on dubious links embedded with malware, replying to a phishing email with password information, transferring money based on a compromised email address, and more have all led to large data breaches and significant costs that have had a major impact on a company’s bottom line. A recent IBM study found that in 2015, a large proportion (25%) of all data breaches were caused by human error. Not addressing this vulnerability with employee awareness,

“Hackers do not discriminate; data from a small business is just as valuable and fetches the same black-market price as the data found at large companies” Does it email or provide an e-portal for clients or vendors? Does the business have a ‘bring your own device’ policy? If the answer to any one of these questions is yes, trust that malicious actors can identify the business as a potential target. In addition, small business owners often delegate responsibilities to a third party, whether that be a cloud service provider, an Internet service provider, a payroll processor, a POS vendor or any number of professionals who assist with the day-to-day functionality of the business. In doing so, the small business owner needs to understand the liability of the contracted services. The first thing to know before entering into any contract is that privacy laws hold the ‘storefront’ (not the contracted service provider) responsible for a data breach. If a

education and training will leave a business susceptible to a breach. Small business exposures are really no different than those of their larger business counterparts, except that small businesses often do not have the resources to allocate and adequately address these exposures. Identifying a business’s data assets and correlating them to its exposures and liability is a necessary first step in assessing vulnerabilities and proactively creating steps to prevent or mitigate potential harm.

Michelle Lopilato is a senior vice-president and the director of cyber and technology solutions at HUB International. She is a licensed P&C producer and member of the Professional Liability Underwriting Society.

www.insurancebusiness.ca

16-17_OpinionNEW-SUBBED.indd 16

22/06/2016 2:42:38 AM

South

SWG’S SECURITY SERVICES PROGRAM DESIGNED SPECIFICALLY FOR THE SECURITY SERVICE INDUSTRY SOUTH WESTERN GROUP has a Security Package policy designed specifically for the Security Industry. Standard Liability policies are not designed to protect against the special exposures your security clients face. South Western Group’s Security Package has been designed specifically for the Security Industry... and offers the most important coverage required by this industry... Failure to Perform and No General Aggregate.

COVERAGE HIGHLIGHTS

Commercial General Liability (Occurrence Form):  Failure To Perform  No General Aggregate Limit  Design Errors & Omissions  Bodily Injury  Personal Injury  Intentional Injury in Defense of Personal Property  Fire Extinguishing Agent Release  Products & Completed Operations  Care, Custody and Control  Legal Expense & Defense Cost Reimbursement – $25,000 Each Occurrence; $25,000 Annual Aggregate  Advertising Liability  Property Damage – Broad Form  Non-Owned Auto (including physical damage)  Incidental Malpractice  Contingent Employers Liability  Employee Benefits Liability – Claims Made – $1,000,000 Limit  Employees as Additional Insureds  Tenants Legal Liability – $250,000 Sub-Limit  Lost Key Cover – $50,000 Sub-limit  Product Recall Extension – $25,000  Medical Payments – $25,000 each person; $25,000 each accident  Limited Pollution Liability Extension $1,000,000 Each Occurrence & Aggregate  Blanket Additional Insured’s Clause  Subcontractor Protocol  Owners and Contractors Protective coverage

COLLEEN BLISS

416-642-6777 | colleen.bliss@swgins.com

16-17_OpinionNEW-SUBBED.indd 17 1 South Western Group FP Ad_R1.indd

Operations Requiring These Special Coverages Include:           

Security Guard Services Private Investigators Training of Guards & Private Investigators Alarm Installers CCTV Installers Locksmiths Sprinkler Installers Alarm Monitoring Fire Extinguishers & Co2 Systems Telephone Answering – Paging Manufacturers/Distributors of Alarms & Protective Systems

Other Available Coverage:        

Security Guard Services Private Investigators Training of Guards & Private Investigators Alarm Installers CCTV Installers Locksmiths Sprinkler Installers Alarm Monitoring

Errors & Omissions Liability is also available:  Errors & Omissions Liability for Private Investigators – Claims Made $250,000 Limit Each Occurrence; $250,000 Annual Aggregate (higher limits available)  Errors & Omissions Liability for Training of Guards & Private Investigators – Claims Made Up to$2,000,000 Limit Each Occurrence; $2,000,000 Annual Aggregate  Errors & Omissions Liability for Security Consultants – Claims Made $250,000 Limit Each Occurrence; $250,000 Annual Aggregate

SWGINS.COM

22/06/2016 2:42:44 AMPM 13/04/2016 10:36:48

PEOPLE

INDUSTRY ICON

CLIMBING THE LADDER Jean-François Blais, the president of Intact Insurance Company, talks to Insurance Business Canada about his rise up the ranks, his passion for teaching and the importance of a smile

ALTHOUGH HE’S now president of a major Canadian insurance company, Jean-François Blais almost didn’t enter the industry at all. Growing up, his academic strengths lay in mathematics, so insurance was always an option. But Blais had also developed a passion for teaching, so he had a tough decision to make. “I had to decide between becoming a math teacher and doing something else with mathematics,” he says. “In the end, I decided to become an actuary; that’s how I started in the business. I didn’t know anybody in the industry – I guess you could say insurance found me!” However, Blais’ teaching skills have not gone to waste during his 28-year career. “I have definitely used my passion for teaching in my management positions; I have basically leveraged those skills in a different context,” he says. “I find management and teaching to be very similar, because in management your aim is to make people succeed, just like in school.” Coming from a technical background, Blais noticed a synergy between the role of educator and actuary. “On the technical side of the business, you need to communicate well and simplify complex situations,” he says. “It’s basically the same role as a teacher: trying to transfer complex knowledge simply so that people can learn and remember. That has always helped me in both board pres-

entations and managing teams.” After working as an actuary at AXA Canada for eight years, Blais moved into an underwriting position, where his education in the people side of the industry began. “It was in my first underwriter position that I started to develop the softer skills of communication and relationshipbuilding,” he says. “These skills have been very important as my career progressed and

Today, Blais sees an ever-increasing focus on data, analytics, digital capabilities and marketing. “This is especially true in the US, where a few dominant carriers have built very strong brands,” he says. “Although these modern factors are more important than they were 25 years ago, it doesn’t mean that relationships are any less important.” In an increasingly connected world, many traditional business models are facing

“We have to keep pace with the changing economy in order to provide solutions. We insure people and businesses, and I often summarize this by saying, ‘We insure the economy.’ When the economy is moving, so is the insurance industry” I became a leader who had to engage senior people on my vision of the organization.”

Keeping pace with technology Canada’s insurance industry certainly looks a lot different today than it did when Blais joined AXA in 1988. When he entered the industry, the key elements to success revolved around building relationships and having the right contacts in your address book.

disruption, and organizations are being forced to adapt how they operate. Recent years have seen a growing consumer demand for interactive tools, along with a push toward more intuitive technology. It’s not just question of thriving, but of surviving. However, Blais believes that Canada’s insurance industry, as a whole, has the ability and expertise to navigate any upcoming technological shifts and economic challenges.

www.insurancebusiness.ca

18-21_Industry Icon-SUBBED.indd 18

21/06/2016 4:07:02 AM

PROFILE Name: Jean-François Blais Company: Intact Insurance Company Title: President Age: 49 Years in the industry: 28 Career highlight: “The successful integration of AXA Canada into Intact” Biggest career challenge: “Finding life balance; everyone has their own recipe for how to get there”

www.insurancebusiness.ca

18-21_Industry Icon-SUBBED.indd 19

21/06/2016 4:07:09 AM

PEOPLE

INDUSTRY ICON

“The difficulty in managing data and analytics is being able to improve connectivity between all of the different systems and information,” he says. “I see companies and brokers investing more than ever in technology. It’s a work in progress, but it definitely is happening.” Although he’s confident that Canada’s insurance companies possess the talent and desire to keep up with technology, Blais urges organizations and brokers to be cautious when embarking on a project that could run into the millions of dollars. “Technology projects have to be considered as risky, and to make sure your project is successful, you have to manage it

will allow them to create a better customer experience in the future,” Blais says. “It’s hard to predict future disruptors, so it’s important that companies become stronger and offer a better experience to customers. I think brokers also benefit from having stronger partners.” Blais sees three consumer trends that he feels conscientious brokers should focus on: transparency, customization and improved communication. He also points to the growth of the sharing economy, everincreasing cyber risks and the imminent arrival of autonomous vehicles as challenges that Canada’s insurance companies will have to step up and tackle.

“When I work with energized people, I become more energized. I believe it’s the role of every individual to come to work every day energized and with a smile on their face” diligently,” he says. “To achieve success, it’s important to build a strong team and get executives involved every step of the way. A technology project is not something you can delegate; you have to invest your personal time if you want it to be successful.”

Shifting sands Blais sees the increase in consolidation between insurance firms as the biggest recent development in the industry. Major moves, such as ACE’s acquisition of Chubb, Desjardins Group’s purchase of State Farm Life Insurance and Aviva’s acquisition of RBC General, have shaken up the insurance world both here and south of the border – and, he says, it’s inextricably linked to changing consumer appetites for technology. “This consolidation is happening because companies need to find ways to fund all of their investments in data, analytics, technology and marketing – investments that

“These are the trends that are happening – they’re not futuristic,” he says. The whole industry is evolving, and we have to keep pace with it and the changing economy in order to provide solutions. We insure people and businesses, and I often summarize this by saying, ‘We insure the economy.’ When the economy is moving, so is the insurance industry.” Blais clearly has a passion for his role, and he depends on the energy and creativity of those around him to drive that passion. “When I look around today, I see passionate, engaged, energized people, and this is what fuels me to give my best every day,” he says. “You want to work with inspiring people, and you want to inspire people. Energy is contagious: When I work with energized people, I become more energized. I believe it’s the role of every individual to come to work every day energized and with a smile on their face.”

JEAN-FRANÇOIS BLAIS’ CAREER TIMELINE

2011

Blais becomes president of Intact Insurance Company

2011

Intact Financial Corp. acquires AXA Canada from Paris-based AXA in $2.6-billion deal

2004

Is named to AXA Canada’s board of directors

2004

Takes on role as president and CEO of AXA Canada

2000

Is promoted to executive vice-president of AXA Assurances in Quebec

1996

Becomes vice-president of underwriting and personal lines at AXA Canada

1988

Joins AXA Canada as an actuary

www.insurancebusiness.ca

18-21_Industry Icon-SUBBED.indd 20

21/06/2016 4:07:13 AM

Wynward’s Umbrella Liability

ADDED PROTECTION AND EXTRA COVERAGE Umbrella liability provides broad coverage over and above Wynward’s commercial general liability, as well as your client’s commercial automobile liability policy.

wynward.com

18-21_Industry Icon-SUBBED.indd 21

| 800-665-3351

Provide the peace of mind and flexibility your clients deserve with our umbrella liability solution.

facebook.com/wynward

www.insurancebusiness.ca

linkedin.com/company/wynward

21/06/2016 4:07:19 AM

FEATURES

COVER STORY: YOUNG GUNS

YOUNG GUNS 2016 22

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 22

21/06/2016 4:54:56 AM

Meet 50 young professionals who are energizing and revitalizing the Canadian insurance industry OUR ANNUAL Young Guns report pulls together the brightest rising stars in the business. We asked you, our readers, for your nominations and also reached out to top Canadian insurers and brokerages to uncover this list of 50 impressive young men and women who have already made a significant impact in just their first few years in the industry. Despite being 35 or younger, these individuals are emerging

NAME Abraham, Michael Ashraf, Fazal Beckley, Charles Belisle, Kelly Bennett, Ryan Billyard, Stephen Brown, Jonathan Brunet, Mathieu Burns, Ryan Carr, Matthew Coburn, Jessica Corbeil, Chris Coyle, Dan Farb, Brandon Haggis, Barry Hirst, Sarah Howard, Chelsea Judge, Melisia Kaufman Davis, Jodie Kimball, John Kojokin, Stanislav Kruk, Greg Lohr, Jody Longworth, Brock MacLeod, Chris Maksymchuk, Caleb

PAGE 39 38 28 38 30 28 30 35 42 26 41 39 33 42 42 35 40 32 39 36 41 34 34 26 38 38

COMPANY Bedrock Insurance Brokers City of Calgary Aon Reed Stenhouse Hancock Insurance Brokers St. Clair Insurance Brokers Billyard Insurance Group Peters Insurance Agencies MP2B Insurance Cowan Insurance Group Carr & Company Insurance Brokers Gen Re CNA Canada The Guarantee Company of North America Aviva Canada Young & Haggis Insurance Services ClaimsPro BMS Canada Risk Services BlueCircle Insurance Brokers Burns & Wilcox Canada Angus Miller Insurance KASE Insurance JWK Insurance Broker Rogers Insurance Cornerstone Insurance Services BrokerLink Ravenhill Agencies

leaders in their companies. Whether they’re brokers, underwriters or C-suite executives, their contributions and efforts are inspiring peers and mentors alike. With the world at their feet, this year’s Young Guns are attaining new heights in and out of the office. From technology-driven trailblazers and old-school gogetters to philanthropic entrepreneurs and passionate advocates, they represent the future of Canada’s insurance industry.

NAME McNamara, Sean Miller, Mark Miller, Matt Minaker, Leigh-Anne Misurka, Ashley Mitchell, Adam Orlecki, Tyler Parker Thompson, Melinda Quenneville, Charles

PAGE 36 40 36 32 38 34 34

COMPANY Mitchell & Whale Insurance Brokers Aon Risk Solutions Oracle RMS Gamble HUB International ClaimsPro Mitchell & Whale Insurance Brokers BrokerLink

The Sovereign General Insurance Company

Platform Insurance Management

Rankin, Lyndsay

Aurora Underwriting Services

Rizzuto, Nick

Wiesner Insurance

Russell, Christopher

Aon Reed Stenhouse

Sedgewick, Ken

Sharp Mobile Technology

Spilar, Ryan

Heart Lake Insurance Brokers

Tagert, Cassidy

HAL Insurance

Taylor, Alanna

KNOX Insurance Brokers

Turnbull, Reginald

Underhill, Crystal

Van Dyk, Peter

Turnbull-Whitaker Insurance Reith & Associates Insurance and Financial Services PV&V Insurance Centre

Van Kooten, Chris

Economical Insurance

Wingfield, Andrea

Brokerforce Insurance

Wingfield, Reigen

Moller Insurance

Wong, Nick

Sharp Insurance

York, Brayden

Axis Insurance Managers

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 23

21/06/2016 4:55:02 AM

FEATURES

COVER STORY: YOUNG GUNS MATTHEW CARR President CARR & COMPANY INSURANCE BROKERS Age: 29 Years in insurance: 9

Insurance is in Matthew Carr’s blood. Interested in following his father’s footsteps, Carr became a third-generation insurance professional and is the current president at Carr & Company Insurance Brokers, his family’s 60+-year-old insurance business. A former linesman for two National Championship Hockey tournaments, Carr is now an executive member of the Hockey Eastern Ontario Officials’ board of directors. He also sits on the board of the Insurance Brokers Association of Ontario. Carr continues to educate himself in commercial and personal lines, allowing him to effectively serve his clients and stay up-to-date with industry trends. “The industry is in a constant, rapid change,” he says. “Every day is unique and another day to innovate, find ways to be more efficient and do business differently.”

Best advice “Be creative and flexible. The talent you are looking to hire is doing the research on your company, so why not research what attracts the top talent and implement a strategy in your business?”

BROCK LONGWORTH Personal lines manager CORNERSTONE INSURANCE SERVICES Age: 30 Years in insurance: 15

Brock Longworth was exposed to the insurance industry at the age of 15, working part-time through high school and university at his familyowned brokerage, Cornerstone Insurance Services. In addition to placing insurance lines, Longworth has developed technology for the company, including client portals, online instant quote technologies, smartphone apps and more. Through the years, Longworth has had the opportunity to hire, mentor and develop brokers of all ages. “I really enjoy seeing the brokers I’ve helped develop succeed,” he says. “I would say my proudest moments are when clients compliment or comment on the positive experience they have had with my brokerage because of brokers I’ve had a hand in developing.”

ANDREA WINGFIELD Sanctuary Plus manager BROKERFORCE INSURANCE Age: 28 Years in insurance: 7

Andrea Wingfield comes from an insurance family – in fact, her brother also shares the honour of being a 2016 IBC Young Gun. “Growing up, I always said I would never go into insurance,” she says. “Both my mother and father were in the industry, and I had no intention of ending up on the company or broker side. Fast forward 20 years, and I started as an intern at Kingsway General Insurance.” At the age of 25, she was promoted to manager of her company’s commercial insurance program, Sanctuary Plus, a position she continues to hold today. Over the last seven years, Wingfield has had the pleasure of connecting with clients across the nation and says she loves being the person her clients call for advice or when something goes wrong. Outside of Brokerforce, Wingfield is involved in her local church and is a huge Celine Dion fan.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 24

21/06/2016 4:55:08 AM

KEN SEDGEWICK Director of sales SHARP MOBILE TECHNOLOGY Age: 35 Years in insurance: 5

After being approached by Sharp Insurance’s president with an opportunity to build a commercial book of business for the agency, Ken Sedgewick jumped at the idea. As the director of sales for Sharp Mobile Technology, Sedgewick is focused on building strong customer relationships through technology. “It’s pretty amazing and fulfilling to work with a team composed of some of the most talented developers around the globe to create tools that did not previously exist in the insurance industry,” he says. “We’re really making a difference in the way consumers and brokers think about insurance.” Active in local charities, Sedgewick participates in the annual Mother’s Day Walk for neonatal care in Alberta and the Alberta Ride to Conquer Cancer – this will be his eighth year participating in the two-day, 200-km ride along the Alberta foothills to raise funds for the Alberta Cancer Foundation.

ALANNA TAYLOR

CRYSTAL UNDERHILL Insurance advisor, new business development

VP of commercial business development KNOX INSURANCE BROKERS Age: 35 Years in insurance: 12

A dedicated insurance professional with more than 10 years in the industry, Alanna Taylor helps drive commercial business for KNOX Insurance Brokers. The current president of the Young Brokers Council, Taylor leads the organization of more than 650 young insurance professionals. In addition, she is an active political volunteer with IBAC, a mother of one, and an avid Crossfitter and marathon runner.

REITH & ASSOCIATES INSURANCE AND FINANCIAL SERVICES Age: 34 Years in insurance: 7

For the past seven years, Crystal Underhill has served as an insurance advisor for Reith & Associates, where she takes a holistic approach when providing insurance solutions to her clients. “Crystal has been a driving force in the office, in our surrounding community and the industry,” says president Dan Reith. “Her drive and involvement in anything regarding insurance and protection is evident in everything she does.” In 2015, Underhill was the recipient of the Insurance Brokers Association of Ontario’s Young Broker of the Year Award. She is also president of the St. Thomas Elgin Insurance Brokers Association, promotions chair at the St. Thomas Downtown Development Board and secretary at the Summers Corners Public School Parent Council.

Best advice “Be authentic – show up on time, say please and thank you, and do what you say you are going to do.”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 25

21/06/2016 4:55:16 AM

FEATURES

COVER STORY: YOUNG GUNS STEPHEN BILLYARD President BILLYARD INSURANCE GROUP Age: 34 Years in insurance: 5

Stephen Billyard took over Billyard Insurance Group in 2012 and has since grown the company from $3.2 million to $10 million in premium volume. His drive has also expanded the full-service brokerage to include 10 new staff members and a new online brand.

CHARLES A. BECKLEY Associate account executive

NICK WONG Account manager SHARP INSURANCE Age: 29 Years in insurance: 6

Following years in high-end retail, Nick Wong took a position at TD Insurance, where he learned and developed the skills he has today. In 2013, he joined the brokerage side of the industry at Sharp Insurance, where he achieved the top position in sales in his first year. Heavily involved in the community organizations his company supports, Wong volunteers each quarter at the Calgary Drop-In Centre, and last year raised the most money overall for the Banff Marathon. A native of Fort McMurray, Wong plans on organizing a volunteer group to help rebuild his hometown. Fluent in two languages and conversational in four others, Wong enjoys travelling around the world to different ski resorts to snowboard, a passion he also teaches seasonally in the winter.

AON REED STENHOUSE Age: 27 Years in insurance: 6

As an account executive working in Aonâ&#x20AC;&#x2122;s construction services group, Charles Beckley provides insurance and surety bonding services to contractors of all types and sizes. Beckley chose a career in insurance after it was recommended to him by the past president of the Insurance Brokers Association of Manitoba. Now, Beckley enjoys facing the challenges of construction risks head-on every day. He is a member of the Young Brokers Committee in Manitoba, the Young Construction Leaders of Manitoba and Lions Club of Stonewall. In his spare time, he enjoys playing music, specifically the piano, and jamming with other talented musicians.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 26

21/06/2016 4:55:18 AM

NICK RIZZUTO Commercial new business development executive WIESNER INSURANCE Age: 33 Years in insurance: 12

Over the last fiscal year, Nick Rizzuto has grown his commercial portfolio by 400% at Wiesner Insurance, where he focuses on large and complex files. “I take great pride in providing loss-control measures and sufficient insurance coverages to clients,” he says. “One of the most fulfilling elements of my job is educating businesses about the value of possessing correct insurance coverage and how it affects them day to day.” Starting at a young age, Rizzuto played competitive soccer all throughout Canada, the US and Italy, and he continues to play today for a competitive men’s team.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 27

21/06/2016 4:55:23 AM

FEATURES

COVER STORY: YOUNG GUNS CHRISTOPHER RUSSELL Account executive AON REED STENHOUSE Age: 28 Years in insurance: 7

After graduating with his two-year general business diploma, Christopher Russell decided that he wanted to specialize in one specific form of business. Having always been fascinated with the principles and practices associated with insurance, Russell joined the industry as a process analyst with Aon. In just five years, he was promoted to account executive; in that capacity, he works with individuals to help them better their companies’ overall risk profiles. Russell was a recipient of the James E. Bonnay Scholarship in 2009, awarded to an individual graduating from the insurance program at Mohawk College of Applied Arts and Technology. He’s also a member of the Insurance Institute of Canada and the Global Risk Management Institute.

Best advice “Do not be afraid to ask questions! Trust me, there are no dumb questions when it comes to insurance. The more questions you ask, the better you can grasp the vast amount of information associated with insurance procedures and insurance-related products.”

JONATHAN BROWN

RYAN BENNETT

Commercial and personal producer

Commercial sales & operations manager

PETERS INSURANCE AGENCIES Age: 32 Years in insurance: 10

ST. CLAIR INSURANCE BROKERS Age: 32 Years in insurance: 9

After leaving a career in the oil & gas industry, Jonathan Brown started his insurance career in the life and disability space before transitioning to commercial and personal lines. In the 10 years he has been in the business, Brown held various positions with Combined Insurance, BrokerLink, HUB International and Hardy-Colborne Insurance Brokers before joining Peters Insurance Agencies in 2014. Brown has served as director at large for Professional Young Insurance Brokers and is chair of the organization’s communications committee. In that capacity, he works to increase the visibility of the industry and the broker role in his daily life and through various events.

As the commercial sales & operations manager for St. Clair Insurance Brokers, Ryan Bennett works to create and execute strategic action plans while expanding the talents of St. Clair’s commercial lines staff throughout Ontario. He also spearheaded the creation of his company’s producer training program, the Elite Producer Academy. “We are able to take the right individual from a sales background, give them the insurance training and have them producing at a high level quickly,” he says. Bennett is also a self-proclaimed “car nut,” a 2015 IBC Young Gun alum and an active member of several community organizations.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 28

21/06/2016 4:55:28 AM

CA W

AVOID NASTY SURPRISES

www.markelinternational.ca/cybercover

WHY RISK GOING ANYWHERE ELSE?

22-43_Young 29 CA Why RiskGuns-SUBBED.indd Cyber 8.25x10.875.indd 1

21/06/2016 4:55:31 AM 08/02/2016 16:33

FEATURES

COVER STORY: YOUNG GUNS LEIGH-ANNE MINAKER Account manager GAMBLE HUB INTERNATIONAL Age: 27 Years in insurance: 6

An IBC 2015 Young Gun alum, Leigh-Anne Minaker joined the industry in 2010 at the suggestion of her father, who has been in the industry for more than 30 years. These days, she enjoys conversations with him about the industry she once knew very little about. In her current role, Minaker is responsible for writing new business while servicing her existing book of business. Outside of the office, Minaker is a member of the Young Brokers Council and the St. Thomas Executive Association, and sits on the board for the St. Thomas Elgin Insurance Brokers Association.

RYAN SPILAR Commercial account executive HEART LAKE INSURANCE BROKERS Age: 28 Years in insurance: 3

Just last month, Ryan Spilar was trekking around the Brazilian rainforest with his friend Filipe Leite for his OutWildTV show Journey America. Back home in Brampton, Ontario, Spilar manages commercial and life insurance contracts for Heart Lake Insurance Brokers. The advantage of having dual licences has allowed him to offer his clients various types of insurance, and he is currently in the process of earning his CIP designation to further his ability to service clients. “Being a broker is a tough gig, and it takes a lot of hard work and dedication to succeed,” Spilar says. “The fact that I am not only able to continue working, but am in a position to achieve my goals on a day-to-day basis is extremely rewarding.” In addition to his work at Heart Lake, Spilar has been an active volunteer with the Procyon Wildlife Rehabilitation Centre for the last four years.

MELISIA JUDGE Account manager BLUECIRCLE INSURANCE BROKERS Age: 34 Years in insurance: 15

The longest-serving broker at BlueCircle Insurance Brokers, Melisia Judge joined the agency just one year after it was formed. She broke her company’s sales record for most personal line sales in one month and continues to be a top producer. “Throughout her tenure, Melisia has been an essential part of our company and is our guru for everything personal lines,” says Dirk Bruggencate of BlueCircle. “She manages her own book of business, and at the same time is one of our top producers of new business and is critical to the operation of our in-house finance company.” Outside of insurance, Judge is a certified personal trainer and takes an active role in keeping her office healthy through weekly boot camps and teaching a healthy lifestyle.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 30

21/06/2016 4:55:38 AM

DAN COYLE Manager, Quebec Region DAN COYLE 34 GUARANTEE GOLD, THE GUARANTEE COMPANY OF NORTH AMERICA Age: 34 Years in insurance: 9 Manager, GUARANTEE GOLD, Quebec Region THE GUARANTEE COMPANY OF NORTHDan AMERICA Unlike many in the industry, Coyle choose a career in insurance straight out of university. “I was fortunate to be exposed to the Years in business: 9

business throughout my studies while working for my family’s renovation and restoration contracting company,” he says. “It was my observations theindustry, customer service coverage provided by adjusters, asout wellofas policies from companies The Guarantee, Contrary to many inofthe Dan Coyleand choose a career in insurance straight university. “I was fortunate like to be exposed madethroughout me choose my insurance.” to thethat business studies while working for my family’s renovation and restoration contracting company … It was my As a regional managerservice for Theand Guarantee Guarantee program, Coyle specializes in insurance solutions for observations of the customer coverageCompany’s provided by adjusters,Gold as well as policies from companies like The Guarantee high-net-worth him thefor opportunity to underwrite unique and spectacular lines, such asfor coverage a coffee that made me chooseindividuals, insurance.”giving As manager GUARANTEE GOLD, Coyle specializes in insurance solutions high netfor worth table made gold bars. In addition, Coyle is theunique Montreal chair of the 2016 Light the for Night Walk,table benefiting Leukemia individuals, givingof him the opportunity to underwrite andcorporate spectacular lines, such as coverage a coffee madethe of gold & Lymphoma Society ofMontreal Canada, and is a supporter his2016 corporate United Way fundraiser, along other& local charities. bars! In addition, Coyle is the Corporate Chair ofof the Light the Night Walk, benefiting the with Leukemia Lymphoma Society of Canada, and is a supporter of his corporate United Way fundraiser along with other local charities.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 31

21/06/2016 4:55:44 AM

FEATURES

COVER STORY: YOUNG GUNS ADAM MITCHELL

JODY LOHR

President

ROGERS INSURANCE Age: 34 Years in insurance: 11

MITCHELL & WHALE INSURANCE BROKERS Age: 32 Years in insurance: 8

Adam Mitchell currently operates his familyowned brokerage, which has been in the business for more than 60 years. “Adam is inspiring others to change the industry,” says Suzanne O’Halloran of Murray-Jackson Insurance. “[He’s] smart, multi-talented and innovative!”

Account manager, commercial insurance

A Fort McMurray-based insurance broker, Jody Lohr is proud to be in the industry during a difficult time. “I have seen the whole insurance community come together fast and strong to work hard for our clients affected by these fires,” she says. “From the brokers to the insurance companies to the adjusters – in such a sad, emotional time, I have seen some amazing things happen. Being in firsthand contact with so many customers affected by the fires has been very emotional, and I wouldn’t change it for anything.” Currently in her second term as president of the Professional Young Insurance Brokers [PYIB] of Alberta, Lohr has instilled procedures and protocols that have led PYIB to greater success. A leader among PYIB members, Lohr is “without a doubt, one of the nicest, most organized and talented individuals in the industry,” says PYIB member. “It is a pleasure to learn from her and be part of her PYIB team.”

GREG KRUK Principal broker JWK INSURANCE BROKER Age: 35 Years in insurance: 13

With a background in finance and economics, Greg Kruk didn’t initially plan on a career in insurance. However, “after spending some time in the industry, I became very interested in the endless opportunities a career in the industry provides for your personal and professional life in the communities you operate in,” he says. For the past 13 years, Kruk has leveraged his finance background to service clients and manage staff and company relationships. In addition to serving as JWK Insurance Broker’s principal broker, Kruk is a member of the board of directors for the Insurance Institute, is involved with IBAO, is a hockey coach in the Greater Toronto Hockey League and sits on the board of the nonprofit organization Nova’s Ark.

TYLER ORLECKI Commercial producer BROKERLINK Age: 25 Years in insurance: 5

Tyler Orlecki entered the industry in an entrylevel position in personal lines, where he realized all the opportunities insurance had to offer. As a commercial producer for one of the largest Canadian brokerages, Orlecki places unique lines of coverage for everything from engineering firms to oil-field manufacturers. “I love being able to help people,” he says. “Insurance often gets a bad rap, and I enjoy being able to not only turn clients’ opinions around, but also add value to their insurance program. Helping a client understand their coverage and what they need is very rewarding.”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 32

21/06/2016 4:55:49 AM

MATHIEU BRUNET Director of business development MP2B INSURANCE Age: 32 Years in insurance: 11

Working at his family’s brokerage for more than 10 years, Mathieu Brunet specializes in all forms of commercial insurance. Highly active in the industry and his community, Brunet is president of the Canada Day Committee of Laval, treasurer of Club Union Montreal, past president of L’Association de la Relève en Assurance du Québec and former administrator of the youth committee for the foundation of Cité de la santé Hospital in Laval. In addition, he is a member of an annual golf tournament that raises money for the AVIRON Hébergement in Laval.

CASSIDY TAGERT Commercial lines producer HAL INSURANCE Age: 25 Years in insurance: 4

Cassidy Tagert has worked her way up in the four years she has been with HAL Insurance and is now an insurance expert in the commercial transportation, cargo and construction industries. A part-time student at the University of Regina, Tagert sees the opportunity for the industry to create programs for the next generation of insurance professionals. “By developing a program that students can take to develop an understanding of the industry and what is involved in a career,” she says, “you not only open the door to young people looking for career opportunities in this industry, but you also get the chance to develop properly educated insurance professionals.”

SARAH HIRST District manager, Northern Alberta CLAIMSPRO Age: 33 Years in insurance: 16

Starting at the age of 18, Sarah Hirst has been immersed in the insurance industry, joining many of her family in the business. As district manager of Northern Alberta for ClaimsPro, she oversees seven branches of independent adjusters and has been heavily involved in the claims related to the recent fires that have hit the region. “Sarah is an exceptional professional in her dealings with insurers, brokers, contractors, insured and employees,” says Tom Hirst of AAMDC. For the past few years, Hirst has been a Blue Goose executive, and she currently sits on the CIAA board for Alberta.

22-43_Young Guns-SUBBED.indd 33

DKI Canada Ltd. Appoints Chris Schmidt Chief Executive Officer Mississauga, ON – DKI Canada Ltd announces a new leadership appointment that will further its development and expansion. DKI Canada Ltd. announces today the appointment of Chris Schmidt to the position of Chief Executive Officer effective June 1, 2016. "The handover and smooth transition from Ken Tucker to Chris Schmidt, comes at an important stage in DKI Canada’s development," stated Dany Roy, Chairman of the DKI Canada Board. "Ken's tenure left a strong legacy during a critical time for the company, with a far-reaching transformation that changed the face of the executive team, repositioned the company strategically, as well as turned the information management and compliance system into a benchmark for the industry. On behalf of the Board, I thank Ken for his leadership and tireless dedication. He will remain as an advisor to the Board and CEO.” "Chris’s appointment comes as we embark on the next stage of the company's evolution. Over the past four years, he led the company's growth and expansion extending DKI’s reach to almost 80 locations servicing all provinces across the country. The Board is thrilled to have a leader of his caliber with deep management and execution experience to lead the company." Mr. Schmidt has over 15 years of insurance claims and restoration industry experience. Since joining the company in 2012, his strong background and industry knowledge accelerated his growth within DKI Canada Ltd. quickly progressing through www.insurancebusiness.ca 33 various senior level positions including vice president and most recently COO. 21/06/2016 4:55:56 AM

FEATURES

COVER STORY: YOUNG GUNS SEAN MCNAMARA Commercial broker MITCHELL & WHALE INSURANCE BROKERS Age: 35 Years in insurance: 15

MATT MILLER

A commercial insurance professional, Sean McNamara has spent the past 15 years working for some of Canada’s best-known companies, including Royal & SunAlliance, Canada BrokerLink, John Shea Insurance Brokers and Petley-Hare Limited Insurance Broker. In the last year at Mitchell & Whale Insurance Brokers, McNamara has increased commercial clients by 120%. In addition to his day job, McNamara is the team leader for Young Brokers Council’s Territory 11, is a board member of the Oshawa Senior Citizens Centre and is president of the board for Boys & Girls Club of Durham Region.

Senior account executive ORACLE RMS Age: 33 Years in insurance: 10

Upon graduating from the University of British Columbia, where he was an Academic All-Canadian and baseball player, Matt Miller accepted a position as commercial underwriter with Gore Mutual. He has since ‘jumped the desk,’ transitioning from being an underwriter to a broker when he joined Oracle RMS at its inception in 2011. Miller now specializes in commercial and personal insurance for individuals and high-net-worth families all across Canada. “No two days are ever alike,” he says. “Each day brings new challenges and new learning opportunities. Acting as the preferred insurance professional for some of Canada’s leading businesses gives me a great perspective on the inner workings of our economy and tremendous respect for private business owners.” Miller remains active in the UBC Baseball Alumni Association and holds an executive leader position for a local business-networking group.

LYNDSAY RANKIN Senior broker/underwriter AURORA UNDERWRITING SERVICES Age: 35 Years in insurance: 15

Lyndsay Rankin grew up around insurance, thanks to her brokerage-owning parents. Starting off as a broker, Rankin joined Aurora Underwriting Services four years ago. In her first year of being an underwriter, Rankin was invited to Lloyd’s of London, where she was able to sit with the Lloyd’s underwriters. A member of AAMGA’s Under 40 Organization, she has attended AAMGA Underwriting University, furthering her skills in the space.

JOHN M. KIMBALL Senior specialty lines underwriter ANGUS MILLER INSURANCE Age: 32 Years in insurance: 9

A third-generation insurance expert, John Kimball writes commercial lines at New Brunswickbased Angus Miller Insurance. In 2014, Kimball was one of four Canadians invited to attend the Andrew Beazley Broker Academy at Lloyd’s of London, spending a week in London to expand his education and deepen his understanding of the Lloyd’s market. When asked about what he enjoys most about his job, Kimball says, “I love trying to find insurance solutions for complicated risks. Liability insurance is great because each risk has its own unique twist.”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 34

21/06/2016 4:56:00 AM

CHRIS VAN KOOTEN SVP and chief underwriting officer ECONOMICAL INSURANCE Age: 34 Years in insurance: 13

In the eight years Chris Van Kooten has been with Economical Insurance, he has risen through the ranks of one of Canada’s largest P&C insurance companies from vice-president to SVP and chief underwriting officer. Van Kooten was instrumental in the development and launch of Sonnet Insurance, and is also the business lead for the implementation of Economical Insurance’s new policy administration system. Van Kooten says what he enjoys most about his career is “changing the way insurance is seen by consumers and disrupting the status quo.” Active in the actuarial community, he is past president of Ontario Conference of Casualty Actuaries and teaches an actuarial course at the University of Waterloo, his alma mater. In addition, he is involved in various IBC committees, is a triathlete and is a black belt in karate.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 35

21/06/2016 4:56:06 AM

FEATURES

COVER STORY: YOUNG GUNS KELLY BELISLE Insurance broker HANCOCK INSURANCE BROKERS Age: 28 Years in insurance: 2

In the short time Kelly Belisle has been with Hancock Insurance Brokers, he has made a tremendous impact. “Kelly is an exceptional young man. He goes above and beyond what is asked and expected of him,” says Hancock’s Sarah Crocker. “He’s only been with us since September 2015, but the customer feedback I receive, as well as his producer totals since being here, have done nothing but go up.” A team player in all aspects of his life, Belisle has played for the Tri-Cities Baseball League for the last five years.

REGINALD TURNBULL Insurance broker TURNBULL-WHITAKER INSURANCE Age: 24 Years in insurance: 3

Introduced to the industry by his father, Reginald Turnbull switched his career from broadcasting to insurance after the amount of human contact changed his perspective on the industry. “What I love most about my job,” he says, “is when I reach that apex in a client-broker relationship where they no longer see me as their insurance broker in it for commission, but as Reg Turnbull, the guy taking care of us.” One industry peer says, “His innovation is his ability to do what others his age don’t – be old-school.” Turnbull recently completed his CAIB in a year’s time and keeps involved with industry and community organizations. He is a member of the Young Brokers Committee of IBAM, is involved with the arts student body council for the University of Manitoba and sits on the board of the Granite Curling Club.

ASHLEY MISURKA Assistant branch manager and senior adjuster CLAIMSPRO Age: 31 Years in insurance: 8

A former dental hygienist, Ashley Misurka started her insurance career working part-time at an independent adjusting company before switching fully to insurance. Currently, she co-manages ClaimsPro’s Special Risk Division office in Toronto. “I enjoy meeting people every day,” she says when asked what she loves most about her job. “I find it rewarding to help people during a difficult time in their life and help them recover from a stressful situation.” Misurka is a member of TIWA, OIAA, CIAA and the Insurance Institute of Canada, and is an active volunteer and blood donor.

FAZAL ASHRAF Leader, risk management & insurance CITY OF CALGARY Age: 30 Years in insurance: 13

Initially set on becoming a lawyer, Fazal Ashraf was pulled into the insurance industry after picking up a CIP book. After graduating from Mount Royal University, he pursued a career in risk management. Since 2007, Ashraf has worked in that capacity for the City of Calgary. “I love the variety and complexity of risks that I manage on a daily basis,” he says. “With a municipal corporation like the City of Calgary, it’s always a mix of potential risks, and each is evaluated on its own merits. Just when I think I’ve seen it all, something new comes up.” Ashraf is also the communications chair for this year’s RIMS Canada Conference. In addition, he is a past board member on the Southern Alberta Risk & Insurance Management Society, is an active volunteer at industry events and regularly gives presentations to entrepreneurs on risk management and insurance.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 36

21/06/2016 4:56:09 AM

MELINDA PARKER THOMPSON Underwriting specialist, cyber & technology THE SOVEREIGN GENERAL INSURANCE COMPANY Age: 33 Years in insurance: 10

When job-hunting, Melinda Parker Thompson was struck by the way professionals in the insurance industry retained their sense of fun, even after years in the business. “I wanted a career where I could work hard and play hard,” she says, “and while that’s a cliché, I find it truly does describe my career in insurance to date.” A specialist in cyber & technology insurance, Parker Thompson first took on the product when it launched at her previous company and has since led presentations on the topic for the broker community. Outside of working in specialty lines, Parker Thompson is the secretary and treasurer of the Imperial Order Daughters of the Empire Ubique Chapter, a women’s charitable organization.

MICHAEL ABRAHAM President & CEO BEDROCK INSURANCE BROKERS Age: 30 Years in insurance: 6

After finding success as an insurance broker with Paisley Manor Insurance Brokers, Michael Abraham founded his own Toronto-based brokerage this year, Bedrock Insurance Brokers. Focusing on client-based servicing, Abraham says he enjoys the daily diversity of learning about clients’ businesses, how they were built and how they function.

CHRIS CORBEIL Underwriter CNA CANADA Age: 28 Years in insurance: 6

For the last four years, Chris Corbeil has served as an underwriter at CNA Canada, responsible for writing business for brokers on all types of accounts. Corbeil previously held positions with CAE Safety Consultants and The Co-operators, where he began his insurance career. In addition to underwriting business, Corbeil has been an active volunteer with Students Against Drinking & Driving for the past 10 years. He is also involved with SARIMS, the Southern Alberta chapter of RIMS, and currently sits on the planning committee for the 2016 RIMS Canada Conference.

Best advice “Position yourself with a mentor, and dedicate time to learn as much as you can from them about both the technical and interpersonal aspects of the job.”

JODIE KAUFMAN DAVIS Corporate vice-president and managing director BURNS & WILCOX CANADA Age: 34 Years in insurance: 2

After practicing law for nearly eight years, Jodie Kaufman Davis jumped right into insurance at Burns & Wilcox Canada. In the two years she has held her role, Burns & Wilcox Canada has experienced a 120% growth in premiums and 80% growth in staffing – something Kaufman Davis is justifiably proud of today. “Every day is different,” she says. “I enjoy the strategic discussions and planning, internal development, broker and carrier relationships – I love the challenge of all of it.” She is a member of the board of United Jewish Appeal of Greater Toronto and is the vice-chair of membership for the organization; additionally, she is on the national young leadership cabinet of the Jewish Federation of North America. Last year, she was awarded the H.W. Kaufman Financial Group’s Leadership Distinguished Service Award for her outstanding mentoring and training of employees.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 37

21/06/2016 4:56:16 AM

FEATURES

COVER STORY: YOUNG GUNS

CALEB MAKSYMCHUK

CHRIS MACLEOD

Partner, VP of operations

BROKERLINK Age: 31 Years in insurance: 6

RAVENHILL AGENCIES Age: 35 Years in insurance: 8

Going from a career as a physical education teacher to insurance, Caleb Maksymchuk remains active in and out of the office. As past president of the Professional Young Insurance Brokers of Alberta, Maksymchuk remains involved with a close network of industry professionals. A lover of sports and outdoor activities, he also coaches a Community U4 soccer team and enjoys volleyball, basketball and camping.

Account executive

Six years ago, Chris MacLeod entered the insurance industry while searching for a dynamic and challenging career. Since then, he has grown his client base and his network of professional relationships.“Chris is always willing to go above and beyond for his clients,” says Dave Toivonen of BrokerLink. “He has built an organic book of business throughout his years working as a broker and exceeds all expectations. His love for knowledge excels him at his day-to-day work.” MacLeod is an active board member of the Construction Association of Thunder Bay and regularly donates his time to volunteer for the organization.

CHELSEA HOWARD

MARK MILLER

Broker

Account executive

BMS CANADA RISK SERVICES Age: 35 Years in insurance: 8

AON RISK SOLUTIONS Age: 28 Years in insurance: 8

Starting off in the fashion industry, Chelsea Howard took insurance courses while in business school and realized the endless opportunities the industry offered. Having worked at South Western Group, Aon Reed Stenhouse and PBL Insurance, Howard is currently with BMS Canada Risk Services. In addition to serving as a broker, Howard is active within her company’s volunteering program, reading to young children at a nearby school once a week. Always working toward furthering her education, Howard will add to her designations this summer when she completes her FCIP.

Best advice “The first day of my first full-time job in the industry, I was assigned to do scanning for the office, which was not what I had expected. Be patient, take the time to learn, volunteer to take on projects that will allow you to gain more technical experience and align yourself with successful professionals to begin building your network in this relationship-based industry.”

Mark Miller recently joined the Aon Risk Solutions team in June after serving for six years as a commercial account manager for Drayden Insurance. He also is a director-at-large on the board of Professional Young Insurance Brokers [PYIB]. Together with other PYIB members, Miller goes out to high schools and various career fairs all over Alberta to raise awareness about insurance industry careers. A true believer in education, Miller has CAIB, CIP and CRM designations, and advises young brokers to educate themselves: “Most employers will cover all of the costs, so take advantage, as it will be a great asset in furthering your career!”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 38

21/06/2016 4:56:20 AM

JESSICA COBURN AVP and senior underwriter GEN RE Age: 33 Years in insurance: 6

Recently promoted to AVP this past March, Jessica Coburn has stood out in the three years she has been with Gen Re, where she writes global third-party liability. She is also currently chair of the board for Young Insurance Professionals of Toronto, a group that brings young insurance professionals together to learn and network. A lover of world travel, Coburn has been an international build volunteer for Habitat for Humanity, where she worked to build homes in southern Africa. A recent CPCU grad, Coburn has also earned her MBA from the University of Victoria, where she was the recipient of the British Columbia Innovation Council Scholarship.

Best advice â&#x20AC;&#x153;Be present, be social, be humble and work hard.â&#x20AC;?

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 39

21/06/2016 4:56:26 AM

FEATURES

COVER STORY: YOUNG GUNS BARRY HAGGIS

BRANDON FARB

Insurance broker/producer

Rate change manager, personal lines

YOUNG & HAGGIS INSURANCE SERVICES Age: 33 Years in insurance: 5

AVIVA CANADA Age: 28 Years in insurance: 5

Barry Haggis left the film and television industry in Vancouver to become a licensed broker in 2011, when he joined the Young & Haggis team. As the vice-president of Professional Young Insurance Brokers [PYIB], Haggis has been integral to the success of PYIB ‘s events committee and the organization as a whole.

With his eyes set on a career that would provide challenge, opportunity, and both personal and professional growth, Brandon Farb joined the insurance industry after a two-year accelerated management training program focused on offering exposure to a variety of insurance departments. Within the first five years of his career, Farb achieved a management position, which has allowed him to influence decision-making, strategy and execution within Aviva’s personal lines department. “As a relatively new manager, I appreciate the support and latitude my coworkers and other leaders have given me to do my job in the most effective manner,” he says. Farb is involved with the Insurance Institute of Canada as both a student and volunteer exam proctor, in addition to being involved in a number of Toronto-based minor hockey organizations.

PETER W. VAN DYK Account executive

RYAN BURNS

PV&V INSURANCE CENTRE Age: 25 Years in insurance: 5

Commercial account executive COWAN INSURANCE GROUP Age: 30 Years in insurance: 6

Having chosen the same career path as his father, Ryan Burns is responsible for increasing the overall growth in the commercial sector at Cowan Insurance Group. “The proudest professional accomplishment that I have to date is proving to my father, who is one of the top commercial producers at Cowan Insurance Group, that I have the ability to carry my own weight and pick up the slack without being prompted,” he says. “Through the completion of my CIP and the strong underwriting background I gained at Economical Insurance, I have value to bring to the table on new and existing accounts.” One way Burns has decided to give back to the insurance community is through his involvement in the Insurance Institute of Canada's Insurance Ambassador Program. As an ambassador, Burns helps to motivate and inspire others to pursue insurance careers.

A musician who can also place insurance? Before joining the insurance business, Peter Van Dyk toured across Canada as a musician and continues to play guitar and sing with his band. He now is an account executive at his family-owned agency, PV&V Insurance Centre. In his role, he enjoys helping people find insurance solutions that work for them, learning about interesting commercial risks and finding new areas to innovate. Van Dyk is also proud to be an ambassador with the Hamilton Chamber of Commerce and is a member of its young professionals division, YEP Hamilton. He is also a member of CoMotion and volunteers with the YWCA and Streetlight Ministries.

Best advice “Embrace the paradigm shift that technology and big data are bringing to the industry. Early adopters always have a better chance of long-term success. Don’t be afraid to transform your company’s culture. Millennials are not afraid to work hard, but they do not want to be bound to archaic systems and companies that fear innovation.”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 40

21/06/2016 4:56:36 AM

STANISLAV KOJOKIN Partner KASE INSURANCE Age: 29 Years in insurance: 8

After nearly six years as one of Lyons & Butler Insurance Brokers’ top commercial producers, Stanislav Kojokin partnered with a fellow associate in April of this year to develop a new brokerage, KASE Insurance, that specializes in commercial insurance. Kojokin sits on the board of directors for the Insurance Brokers of Toronto Region and is currently working on his CRM designation. Active in sports, he also plays for and manages a Toronto men’s soccer team, participates in various charity races annually, and is an avid swimmer.

Best advice “When I started applying for commercial insurance producer positions, I was declined on numerous occasions due to lack of experience. A lot of small and mid-size brokerages today are looking for experienced producers with an existing book of business to join their team. In order to attract young talent, brokerages should invest in training and mentorship programs.”

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 41

21/06/2016 4:56:47 AM

FEATURES

COVER STORY: YOUNG GUNS REIGEN WINGFIELD Commercial lines manager MOLLER INSURANCE Age: 33 Years in insurance: 7

Joining his father, mother and sister in the insurance industry, Reigen Wingfield has been in the business since graduating from Liberty University in Virginia. He is now a commercial lines manager at Moller Insurance. “I am a very technical person,” he says. “I get a lot of pleasure finding coverage gaps, or where coverage applies in the wordings.” In 2014, Wingfield received the Top Student award for the CPIB designation.

BRAYDEN YORK Account executive AXIS INSURANCE MANAGERS Age: 24 Years in insurance: 2

While working toward his bachelor’s degree, Brayden York decided to take a basic risk management course; soon after graduating, he began working for The Co-operators as a commercial insurance advisor. Now with Axis Insurance Managers, York works with his clients daily to help them understand their risks, while realizing that saying ‘no’ can be just as important as saying ‘yes.’ “I understand providing professional advice is important to improve the reputation of our industry when it comes to claims,” he says. “Learning to turn down new business can be really hard, but it is important when you believe in the advice you provide.” York is a member of the Company of Young Professionals at the Greater Vancouver Board of Trade and is a sponsoring member of local technology organization ACETECH.

Fun fact York was on Canada’s first national championship Yukigassen (snowball fighting) team and was invited to compete at worlds in Japan.

CHARLES QUENNEVILLE Executive vice-president PLATFORM INSURANCE MANAGEMENT Age: 34 Years in insurance: 13

Along with his partners, Charles Quenneville co-founded Platform Insurance Management in 2014 to provide insurance services to contractors and real estate developers. Instrumental in driving the growth of the company, Quenneville’s commitment and innovation have led Platform to secure more than 60 commercial clients in its 20 months of operation. “Platform has quickly become a respected name in the insurance industry, representing some of the country’s largest construction risks, and it is due in large part to the drive and passion that Charles brings to the office every day,” says co-founder Shaun McPherson.

www.insurancebusiness.ca

22-43_Young Guns-SUBBED.indd 42

21/06/2016 4:56:52 AM

IB Aw

NOMINATE NOW! “I’m honoured to be part of this great event. It’s tremendous. We’ve really worked hard revising our processes to help clients look forward five years and 10 years” STEPHEN JONES Assante Wealth Management 2015 Wealth Professional Winner, Presented by Michael Lee Chin

“I’ve got a great team. I’m working with the best team on the planet. It’s been a wild ride. I’m really lucky I strongly believe in what I sell” ALAIN DESBIENS BMO Global Asset Management 2015 Wealth Professional Winner

Don't miss your chance to be honoured in front of your industry peers! Prove to your clients that you are indeed one of the country's best. The 1st Annual Insurance Business Awards brings together industry leaders to celebrate excellence in the insurance industry and is designed to recognize individuals, teams and companies for their outstanding achievements and contributions to the field. There are 20 organizational and individual categories that have been designed to ensure national recognition of both large and small organizations on their individual merits.

DEADLINE FOR ENTRIES IS ON SEPTEMBER 20TH 2016 ibawards.ca 22-43_Young Guns-SUBBED.indd 43 IB Awards_Nominate Now_Print Ad.indd 1

www.insurancebusiness.ca

21/06/2016 4:56:57 AMPM 20/06/2016 11:47:06

SPECIAL PROMOTIONAL FEATURE

CYBER INSURANCE

Protect your clients from cyber catastrophe Many Canadian organizations are still reluctant to purchase adequate cyber coverage. But an innovative policy from Markel Canada could change that by covering multiple cyber exposures 44

AS COMPANIES upload larger amounts of sensitive data on a daily basis, the potential risks of a cyberattack grow increasingly catastrophic. The same advances in technology that have enabled businesses to operate more efficiently have also created fresh opportunities for cyber criminals. Effective cyber insurance products mitigate these risks by offering vital coverage for an organization of any size. According to a recent report from the Insurance Institute of Canada [IIC], â&#x20AC;&#x153;the global impact of cybercrime is similar to estimates by the United Nations of the international production, trafficking and sales of illicit drugs (US$400 billion) and the worldwide damage resulting from vehicle collisions (US$518 billion).â&#x20AC;? A cyber breach or attack has the potential to cause significant financial harm. A targeted organization often has no choice but to pay for crisis communications, forensics, fraud monitoring, legal fees and the costs associated with the theft of consumer information. Although the risks are clearly

www.insurancebusiness.ca

44-45_Ad Led Markel-SUBBED.indd 44

21/06/2016 4:07:46 AM

MOST COMMON TARGETS OF CYBERATTACKS Manufacturing: 26.5% Banking/insurance: 20.9% Communications: 18.7% Healthcare: 7.3% Retail: 6.6% Other: 20% Source: Insurance Institute of Canada (IIC): Cyber Risks, Implications for the Insurance Industry in Canada

documented, and the impact of cybercrime is growing, the IIC reports that, at present, the majority of companies in Canada refrain from purchasing cyber insurance. Eric Scott, a senior underwriter for casualty at Markel International, believes that a general

lack of awareness, combined with a reluctance to pay premiums, is to blame for organizations not obtaining essential cyber coverage. “This is especially true of smaller organizations, who often don’t see themselves as a target,” Scott says. “But the statistics show that a cyber breach can have even more impact on a small or medium-sized business that is unable to absorb the expenses like a large company can; it can completely shut them down.” Standard CGL policies often have gaps that don’t cover cyber exposure, and brokers have an important role to play in educating clients on the possible consequences. Although saving a couple of thousand dollars by not buying a cyber policy may seem like a smart move, organizations that do this are opening themselves up to serious exposure and financial loss. “We also see a reluctance in large companies to buy policies because they think their IT department will provide sufficient protection,” says Darlene Chin, assistant vice president of life sciences and information technology at Markel Canada. “Companies tend to overlook how the third-party liability and first-party expenses of a cyberattack could impact their bottom line. Also, a company’s reputation within their respected industry can be severely affected, which can take years to repair.” To address some of the exposures that Canadian organizations are facing, Markel Canada has launched an innovative standalone cyber policy, which offers first-party and third-party coverage. The policy, which can be tailored to the needs of a company of any size, is aimed at a wide spectrum of industries, including professional services, healthcare, manufacturing and industrial. The firm has also launched an endorsement extension for existing Markel policyholders, which has a lower premium with slightly reduced coverage. “The stand-alone product covers an organization for the fees that can quickly add up, including the cost of notifying customers affected by a data breach, the cost of managing reputational damage and increased operational costs in the case that you need to hire more staff,” Scott says. “When the risks get larger and there’s more customer data being stored, the stand-alone policy is more appropriate than

WHAT’S COVERED? Disclosure injury Reputational injury Litigation defence costs and regulatory penalties Privacy notification expenses and credit monitoring Crisis management, including forensics and public relations Income lost due to business interruption Professional negotiations and funds to pay extortion costs Source: Insurance Institute of Canada (IIC): Cyber Risks, Implications for the Insurance Industry in Canada

the endorsement. It offers broader coverage, including business interruption, which is really important for a larger client. But the policy can be offered on risks of all size.” Like the stand-alone policy, the extension endorsement offers both third-party and firstparty coverages, but has a $1 million thirdparty liability limit. “For a very small risk, the lowest premium we offer for the endorsement is $150, and that provides a liability limit of $250,000,” Scott says. “For a low price, the client is getting full third-party and first-party coverage, which a lot of the other extension endorsements out on the market do not offer.” Markel Canada has also partnered with NetDiligence to create a customer portal called eRiskHub, which can help clients prevent claims by offering up-to-date information and claims examples. In addition to providing guidance should a cyber incident occur, the portal offers relevant information for clients who want to get informed about cyber risk. “For brokers, having the ability to the access the portal and show it to clients is a good selling tool,” Chin says. “It has up-to-date information and incident roadmaps that take a client through the steps to follow if a cyberattack happens. We’ve also partnered with specialist solicitor Fasken Martineau, who will act as a breach coach in the event that an insured thinks they’ve suffered an incident. The client gets access to an 800 number, and Fasken’s cyber response team will then guide them through the incident.”

www.insurancebusiness.ca 45

44-45_Ad Led Markel-SUBBED.indd 45

21/06/2016 4:07:51 AM

PEOPLE

BROKER INSIGHT

The broker as risk advisor Jonathan Hines of Wilson Insurance, one of Atlantic Canada’s largest privately owned independent brokerages, says insurance brokers shouldn’t think of themselves as just salespeople

IBC: When did you get into the insurance business? Jonathan Hines: Right out of university. After my last day of school, I went right into the business – mainly because it was brought to my attention that there’s not a lot of succession planning in insurance. It’s not a business that does a really good job of recruiting, and I saw the lack of recruiting as a real opportunity. Being a guy with a finance degree, it was an appealing business to be in – especially as one that had a lot of opportunity and not a lot of succession planning.

IBC: Wilson Insurance has a thriving commercial business. Do you think that’s a side neglected by people just getting into the industry? JH: Most people, when they think about insurance, think about personal lines insurance products. They’re really unaware of the magnitude of money and time and effort most businesses spend on risk management insurance placement. They really don’t understand the role a broker plays as a key advisor to a business – and what kind of service that a financial lines professional brings to the table. If it was more positioned as a professional advisory role than a sales role, I think

you’d get more people investing in postsecondary education who would be interested in it. That’s certainly how I look at it, and how our firm looks at it.

IBC: Tell us a little more about Wilson Insurance. JH: Wilson Insurance is an independent brokerage that still operates out of the same building it was founded in back in 1930. Originally, they were a central New Brunswick broker, but we’ve moved more into mid-market commercial business and more into a regional brokerage model. That now is the strategy. It’s been really interesting to watch a business that focused on a particular geographic area move into a larger geography and a totally different client type. But we still maintain full independent ownership – and the fully independent position we’re in to be able to advise clients without bias. Our

objective is to be a leading technical advisor in the markets that we operate in.

IBC: How does operating out of New Brunswick differ from being based in a larger market like, say, Toronto? JH: I think we have common challenges everywhere – and the more pervasive globalization becomes, the less geographically bound businesses are. If you just look at your geographic area, you really narrow your opportunities. Even in New Brunswick, we and our clients are part of global acquisitions and mergers. If we’re going to support local clients, we have to be able to do it on a broader scale than just our own backyard.

IBC: Is it a good time to be in the industry right now? JH: I think it’s a great time – especially if you’re looking at it from the view that the

HINES ON THE BROKER’S ROLE “I think that the role of a broker needs now to be more of a risk advisor. I think our job is not to sell clients insurance. It’s to help them understand their organizational risks and help them procure appropriate insurance for those risks – not to try to sell it to them. When we can do that, we add value to a client’s business rather than simply positioning ourselves as salespeople.”

www.insurancebusiness.ca

46-47_Agency Insight-SUBBED.indd 46

22/06/2016 3:05:25 AM

FAST FACTS: WILSON INSURANCE

Founded in 1930

Originally offered auto, home, business and life insurance; later expanded to offer a full line of commercial and personal insurance and risk management products

“I think our job is not to sell clients insurance. It’s to help them understand their organizational risks and help them procure appropriate insurance for those risks”

One of Atlantic Canada’s largest privately owned independent brokerages

Four offices in New Brunswick and Nova Scotia world is becoming more complex. The more complex it becomes – the more pervasive big data and information technology become – the more people are looking for advisors to help them understand and manage information. If your goal is to specialize in helping your clients understand risk, it’s a great time to be in the business. Information is more available than it ever has been, but it also occupies more of everybody’s time as well.

IBC: What’s the biggest challenge facing the industry, in your opinion? JH: One of the things that’s happened, regardless of the type of business that you’re in, is that technology risk is now almost totally unavoidable. That’s the biggest difference over the last couple of decades. At one point in time, you could avoid that risk by simply avoiding technology altogether. Now you just can’t do that. Understanding how that affects your

business and how you manage that, I think, is becoming a complicated topic, along with other areas that are maybe not focused on as much as traditional fire insurance, like cyber risk. The more common those risks become – and the more stringent regulation is – the more there’s a role for a competent advisor to assist clients in managing those risks.

www.insurancebusiness.ca 47

46-47_Agency Insight-SUBBED.indd 47

22/06/2016 3:05:34 AM

SPECIAL PROMOTIONAL FEATURE

BOAT INSURANCE

Are you making the most of your boatloving clients? Yes, boats need to be insured even when they’re out of the water – here’s how brokers can take advantage of this segment of the market AS THE mercury rises this summer, Canadians will take to the lakes on vessels of all shapes and sizes. While the vast majority of these boat owners will be aware of the need for adequate marine insurance, many don’t know about the importance of buying a policy that covers their boat when it’s out of the water. “The main reason for having a boat is to be able to sail it; however, in Canada, boats also need to be stored during the long winters,” says Bertrand Rouault, director of APRIL Marine Canada. “In addition to offering complete coverage for marine-related risks, good boat insurance insures the boat whilst afloat, at shore or whilst being transported overland. It also insures the trailer and includes third-party liability damage.” To help avoid distress and possible financial loss, it’s imperative that brokers guide

their boat-owning clients toward comprehensive policies that offer year-round coverage. “The storage period can also present risks, and claims are common in the winter, even when the boat is not used,” Rouault says. “In addition to a risk of vandalism, theft or fire, every winter we see claims such as boat shelter collapse due to excessive snow or ice buildup, ice damage, and vermin intrusion.” Boat theft is increasingly common in Canada, and most incidents occur when the boat in question is on its trailer. In response to this wave of thefts, brokers should educate clients on the benefits of an all-encompassing insurance policy. “The best types of boat insurance take into account several factors for the boat – motor, driver and navigation areas – and avoid the risk of under-insurance or over-insurance,” Rouault says. “This is a strong and growing

TOP TIPS FOR BROKERS

1 2 3

Read up on the specialist insurance coverage available and the companies offering it. Look into gaining specialist marine insurance training from area experts.

Understand the considerations that need to be taken into account, including full annual cover, coverage when not in the water, coverage during transportation, trailer insurance and theft prevention devices.

Make sure you understand the factors that will determine the individual’s premium, including: Type of use Type of boat Equipment Navigation area planned Boat storage area

THE MOST COMMON INLAND MARINE CLAIMS ON BOATS Accidents during transportation Collision with land vehicles Theft Vandalism Fire Ice damage Windshield or fiberglass breakage caused by snow buildup risk area that can be an area of growth opportunity for any brokerage.” The number of boat owners is increasing each year, so the marine and inland marine space represent a good opportunity brokers who want to add to their expertise and grow their client base. “It’s best to read up on the insurance coverage available and understand the considerations that need to be taken into account,” Rouault says. “Specialist marine general agents, such as APRIL Marine Canada, offer ‘boat insurance techniques’ training to help brokers develop their boat portfolio and offer the best possible specialist service to their customers.”

www.insurancebusiness.ca

48-49_Ad Led April-SUBBED.indd 48

21/06/2016 4:08:29 AM

Keith Timothy, Property Claims Field Adjuster

property

auto

business

“Economical Insurance is a good group of people to have on your side.” We’re proud of how our adjusters make our customers feel: taken care of and reassured. Thanks, Keith, for all you do to get our customers back on their feet again. Because their story is ours too. economicalinsurance.com/stories

The Economical brand includes the following property and casualty insurance companies: Economical Mutual Insurance Company, Perth Insurance Company, Waterloo Insurance Company, The Missisquoi Insurance Company. ©2016 Economical Insurance. All rights reserved. All Economical intellectual property, including but not limited to Economical® and related trademarks, names and logos are the property of Economical Mutual Insurance Company and/or its subsidiaries and/or www.insurancebusiness.ca affiliates and are registered and/or used in Canada. All other intellectual property is the property of their respective owners.

48-49_Ad Led April-SUBBED.indd 49

21/06/2016 4:08:35 AM

FEATURES

CLASSIC CAR INSURANCE

The inside track on classic car coverage Summer’s here, and thousands of Canadians will be revving up the engines of their classic cars. What do brokers need to know about insuring vintage vehicles? OFTEN OF significant value, cars that qualify for classic and neo-classic insurance policies represent an attractive opportunity for brokers eager to branch out and expand their business. But how do insurers determine whether a car is viewed as ‘classic’? “Generally, vehicles that are 25 years and older and have some sort of collector appeal are deemed to be classics,” says Jason Wilson, manager of Vintage Auto Insurance. “Most insurers won’t insure a classic vehicle that is appraised at less than $5,000. The average value of a stock vehicle is likely to be $20,000 to $25,000, and an average modified vehicle is usually $30,000 to $35,000. I’ve seen a 1959 Aston Martin DB4 that was valued at north of $1 million.” Owners are invariably passionate about

their classic cars, and many spend the majority of their summer weekends at events dedicated to collector vehicles. For a broker who wants to take advantage of the opportunities in this niche segment, getting insider knowledge and learning the language of the classic car enthusiast is a must. “You can have all of the qualifications, but if you don’t have the knowledge of this niche, you’re going to misclassify stock vehicles as modifieds and vice versa,” Wilson says. “If you don’t know what you’re talking about, you’ll get pegged by this type of client. Brokers really have to talk to somebody with experience. I’d suggest calling around the small number of specialists that we have here in Ontario.” Richard Hutchinson, president of Hagerty Insurance, advises brokers to familiarize themselves with the neo-classic space by reading publications such as Road & Track and Petrolicious and studying vehicles featured on Bring-A-Trailer. “Brokers can network

THREE PRIMARY RESTRICTIONS OF A CLASSIC CAR POLICY Using the classic car as a commuter vehicle Parking in the lot of a mall or big-box store Driving for a family vacation – however, driving to classic car events is allowed, even if they’re out of province or south of the border at local car clubs or events, engage with owners through LinkedIn, Facebook and blogs, and even host a weekly ‘Cars and Coffee’ type gathering at their agency,” he says. “Car collectors have multiple insurance needs and are often the ideal client profile. These needs include home, secondary dwelling, inland marine, other specialty vehicles and financial services.” Understanding valuation is crucial to operating effectively in this segment, and brokers need to be mindful that determining actual cash value [ACV] through a standard auto policy can be problematic. “Oftentimes an ACV policy is not the best customer solution,” Hutchinson says. “An agreed value policy makes the most sense due to the fact these vehicles are holding their values, and most recently started increasing in value.” Hutchinson advises brokers to understand and recognize the passion that classic car enthusiasts have for their vehicles. “You don’t have to be a classic car expert to determine if your clients have a collector vehicle,” he says. “Ask questions about their vehicle, and you will quickly see their passion come out during the conversation.”

www.insurancebusiness.ca

50-51_Ad Led Classic Cars-SUBBED.indd 50

21/06/2016 4:09:09 AM

Your specialty mga 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 50-51_Ad Led Classic Cars-SUBBED.indd 51

21/06/2016 4:09:11 AM

FEATURES

RECRUITMENT

Balancing data and gut instincts in hiring decisions When it comes to making decisions on a new hire, many experts will say that gut instinct should be left out of recruitment. But Christine Khor explains that balancing that innate instinct with cold, hard facts has many benefits

GUT INSTINCT, or intuition, is thought

The role of the gut

of as dangerous ground as it can – and often has – lead to a discriminatory selection process. Using intuition by itself may lead to situations where we only hire people who we know or like, people who we don’t feel threatened by, who remind us of ourselves, who are exactly the same as the other people on our team, etc. In other words, your gut instinct, if not combined with more scientific data, is likely to result in hiring the person you can see yourself having a drink with or inviting to a barbecue – not necessarily the person who is the best for the job. Though these experts are correct, it is important to note that the role of gut instinct and intuition should not be completely ignored. Instinct plays a vital role in how we make decisions and prevents us from falling into the dangerous territory of groupthink and overanalysis.

Instinct is a biological function that helps us to determine danger. It is a natural subconscious response. Think of a time when you’ve met someone you just didn’t feel comfortable around, and then you later found out that person had a shady past. Your intuition was confirmed by evidence. Think of a time when you felt a little off in someone’s house, only to find out later that your host had just had a heated argument with their partner before you arrived. This is your brain taking the temperature of a room, feeling the underlying tension and responding to it by eliciting your fightor-flight instinct. When it comes to business decisions, it is usually our expertise, experience and knowledge that allow us to read a situation and respond to it instinctually. So, why are we ignoring our instincts in business today?

Analysis paralysis When it comes to business decisions, the fear-of-failure mindset has permeated organizations at all levels and in all industries as a not-so-surprising side effect of having gone through a global financial crisis. It makes sense that after a period of economic instability, businesses will be cautious in their strategy, and business leaders will be apprehensive when making decisions. However, we all know that this kind of fearbased thinking is the major obstacle to innovation and can have a big impact on the hiring decisions of a business. Because of this fear, businesses are relying heavily on groupthink and committees. Management will call meetings, send group emails, request more research and stall for more time, rather than taking the perceived risk of making a decision. Many executives don’t want to be the one to make the final call in case things go pear-shaped. We like to call this ‘analysis paralysis,’ and it has become rampant in hiring decisions. Increasingly, recruitment within businesses is being stalled by elongated processes that include numerous rounds of interviews, background checks, psychometric assess-

52 www.insurancebusiness.ca

52-53_BIZSTRAT Balance-SUBBED.indd 52

21/06/2016 4:09:33 AM

a high intellect but won’t get bored easily, will work for a salary lower than market rate, and will be satisfied doing a job they have already done before –basically, a unicorn. Of course, unicorns don’t exist. But people with the potential to grow and learn do. Your best candidate may not tick all the boxes – and in fact, they shouldn’t. If they did, they would have nothing to learn or gain from working at your company and would therefore be a flight risk. In other words, decision is risk, but in some stage of the recruitment process, a decision has to be made.

The balancing act

When it comes to business decisions, the fear-of-failure mindset has permeated organizations at all levels and in all industries as a not-so-surprising side effect of having gone through a global financial crisis ments, case studies, an increasing amount of reference checks and then a long waiting game where all the data is analyzed but a final decision is still not made. While this is happening, the talented prospects who went through this arduous process have gone on to find other opportunities. While it is absolutely necessary to gather evidence-based data on the skills, experience and cultural fit of a prospective employee, this process has to be as streamlined as possible and not become excessive. Three references are the standard to get a general consensus on how well a person did their prior jobs; however, we’ve been asked at times to do six. While it is often necessary to do a secondround interview or have the person meet

additional people within the team, a process of four interviews is excessive. If a manager cannot make a decision based on two rounds of interviews, three reference checks and perhaps one psychometric test, then it is usually their gut instinct telling them that the candidate is not the right person for the job. If instinct were listened to at this point, then a lot of time and money would be saved.

The key to making a good hire is to combine data-based evidence with instinctual responses. What it comes down to is that gut instinct should never trump evidence in the making of a decision, but it shouldn’t be ignored if it is sounding alarm bells. My advice is to pay attention to your instinct when it is telling you not to hire someone, but disregard your instinct if it is telling you to hire someone in spite of the evidence gleaned from interviews and reference checks. It is most likely personal preference at work here. Second, make sure you qualify your gut instinct with objective reasoning. Are you an expert in the area in question? Have you had a similar experience before, and was your instinct correct at that time? Do other people agree with your instinct? Are you sure that you are not engaging in any form of bias or discrimination? By removing the fear of risk mentality that may have taken residence in your management team, you give them permission to use their expertise, experience and wealth of knowledge to navigate decision-making. Provided data-based evidence is not ignored, the instincts of your management team can be a valuable asset to your organization.

Searching for a unicorn The heavy reliance on group consensus and box-ticking not only takes the humanity out of the hiring process, but it also supports the fallacy that there is a perfect person for the job in question – someone who has all the experience, all the skills, does not require training, has

Christine Khor is the managing director of Chorus Executive, a talent management company focusing on the recruitment, coaching and personal branding of executives. Her book, Hire Love: How to Hire Passionate People to Make Greater Profit, is now available through Amazon.

www.insurancebusiness.ca

52-53_BIZSTRAT Balance-SUBBED.indd 53

21/06/2016 4:09:45 AM

PEOPLE

CAREER PATH

STAYING COMMITED

Respected broker and philanthropist John Ferraro has brought the same strong commitment to his business, community and family over the years After deciding to leave university before graduation, Ferraro entered into a variety of business ventures. Although his first attempts at entrepreneurship failed, his drive remained “After speaking with family and friends who worked in the insurance industry, I realized that my strengths were in sales and my desire to help others, and that my interest in business would be a great fit for insurance”

1994

QUITS SCHOOL; FINDS INSURANCE

2011

ORACLE RMS IS BORN After working for other brokerages for 17 years, Ferraro launched his own brokerage with his best friend and business partner, Michael Di Nardo, in 2011. The company, Oracle RMS, has since grown from four employees to 40, which Ferraro attributes to the pair’s unique management style

This management style is simple – don’t lead behind the desk, and create a working culture that offers flexibility and encourages innovation 2014 GARNERS MEDIA ATTENTION Ferraro’s success in the insurance space was soon recognized by the media “I was featured in an editorial in Advantage Magazine’s January 2014 edition, which talked about emerging influential leaders in the insurance business community”

2016 IS NAMED A TOP BROKERAGE Earlier this year, Oracle RMS was named one of the country’s top brokerages by Insurance Business Canada “It is a true representation of how hard work, passion and a positive character can create and maintain outstanding success, regardless of personal and professional hurdles”

1998 MEETS HIS WIFE Insurance introduced Ferraro not only to a satisfying career, but also to his wife, Fidalma. They got married on October 17, 1998, and went on to have three children, all of whom have been diagnosed with a form of autism “Nurturing both my business and family simultaneously, I managed to conquer many hurdles thanks to the support of my wife, my passion for my family, and my desire to give back to the community”

2012 VOLUNTEERS FOR AUTISM SPEAKS CANADA Outside of work, Ferraro and his wife have become heavily involved with the nonprofit organization Autism Speaks Canada “Making a difference and creating better awareness of a disability that affects one in 88 children is extremely important to us. We want to help in every way we can, and we started hosting an annual fundraiser in 2012 to support Autism Speaks Canada”

2014

MOVES INTO NEW DIGS Sometimes striving to be better can lead to being different. Such was the case with Oracle RMS – and that was reflected in the company’s decision to upgrade its office space “We purchased and moved into a new 16,000-square-foot retrofitted warehouse facility, complete with state-of-the-art modern furnishings and technology, which was a big step forward from our previous 1,800-square-foot office”

www.insurancebusiness.ca

54_Career Path-SUBBED.indd 54

21/06/2016 4:10:12 AM

PEOPLE

OTHER LIFE

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

Marsha Jones Dooley

The quartet’s combined number of years of barbershop experience

Number of gigs the quartet played in 2015

Number of songs in the quartet’s repertoire

IN HARMONY For Marsha Jones Dooley, there’s something very special about raising her voice as part of a quartet

SINGING HAS long been a passion for Ajax-based broker Marsha Jones Dooley – she was involved in choirs for almost two decades before meeting her partners in the female barbershop quartet Harmony Highway through their mutual involvement in Durham Shores Chorus. It was the harmony, in fact that drew Dooley to barbershop singing. “It’s an art form,” she says. Composed of four businesswomen, the quartet gathers to rehearse and learn new songs weekly – “between gossip and

wine,” Dooley adds. “You have to like the ones you’re with because you’re spending so much time together.” Harmony Highway often performs for seniors in various centres, particularly over the holiday season, during which the quartet makes a point of booking a busy singing schedule that has included gigs for the Lion’s Club, the Rotary Club, garden clubs and for some large corporations. “It’s a lot of singing in a short period of time,” Dooley says, “but it’s a lot of festive fun.”

www.insurancebusiness.ca

55_Other Life-SUBBED.indd 55

21/06/2016 4:10:36 AM

FEATURES

EXPERT ADVICE AT A GLANCE: WHY CHOOSE IRONCLADTM? Side A DIC [Difference in Conditions] insurance coverage will be triggered by broad scenarios and cover an expansive list of losses. It provides directors and officers: QUICK TURNAROUND TIMES Your client’s directors and officers get paid within 45 days of submitting claims for an expansive number of liabilities.

When commercial insurance becomes personal THE PAST few years have brought to light several cases of companies reeling from the repercussions of data breaches, corporate insolvency and environmental incidents. By exposing directors and board members to considerably more legal and financial risk, the increasing incidence of such events has revealed the limits of companies’ D&O coverage. In many cases, personal assets can also be at risk. To address this limitation of companies’ existing D&O policies, RSA recently introduced Ironclad™; a comprehensive Side A DIC [Difference in Conditions] insurance policy designed to bridge the gap between unavailable corporate indemnification, an unresponsive or exhausted underlying D&O policy, and the directors’ and officers’ personal assets.

Where D&O coverage ends: what you need to know Many commercial insurance clients may not realize they are vulnerable to this type of loss. In sectors facing greater risk – such as mining, oil & gas or manufacturing – comprehensive

Side A DIC policies are quickly becoming a requirement for protecting a company’s senior leadership. This risk is as much of a reality for large global companies as it is for small and mediumsized businesses. As your clients’ advisor, you can add real value by helping them understand the need for topping up their existing D&O policies through scenario planning. “It’s important for commercial clients to know the distinct purpose of Side A DIC coverage – it goes over and above the underlying D&O policies, providing broader coverage solely for the individual directors’ and officers’ personal loss that is not otherwise indemnifiable,” explains Ian Fraser, assistant vicepresident of ProFin at RSA Canada. Side A DIC coverage can be triggered by five scenarios – if the insurer of the underlying D&O policy: • Refuses or fails to indemnify a director or officer within 45 days of a request • Is financially unable or legally prohibited to indemnify • Rescinds or voids the underlying D&O policy

COVERAGE CERTAINTY Coverage can’t be rescinded once it comes into effect, unless there’s a non-payment or a criminal or negligent act. Even if one board member is found to have acted negligently or criminally, other members will still be covered. Only the client’s CEO or chairperson can cancel coverage. FLEXIBLE REPORTING Your client can choose to extend the timeframe for reporting a claim. If the company changes hands, switches to a different policy or even goes insolvent, your client has up to six years to report a claim. DEDICATED LIMIT OF LIABILITY Directors and officers can rest assured that their policy limit is guaranteed a minimum of two reinstatements of the limit of liability, with an option for more.

• Is unable or refuses to pay • Is not liable to pay because the underlying D&O policy does not cover the loss

What can brokers do? “As a broker, you are in the best position to help your commercial clients understand the limits of their underlying D&O policies, and provide additional coverage to attract and retain top senior-level talent and maintain organizational reputation,” Fraser says. For more information, please visit www. rsabroker.ca/ironclad, or contact Ian Fraser at ian.fraser@rsagroup.ca or Ryan Seager at ryan. seager@rsagroup.ca.

www.insurancebusiness.ca

56-IBC_Expert Advice-SUBBED.indd 56

21/06/2016 4:11:04 AM

56-IBC_Expert Advice-SUBBED.indd 57

21/06/2016 4:11:15 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.

OBC.indd 4

21/06/2016 4:12:21 AM