CSIO 2014 Annual Report

2014 ANNUAL REPORT

TABLE OF CONTENTS

MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE PRESIDENT & CEO BOARD OF DIRECTORS MEMBERS ADVISORY SERVICES eSIGNATURES MOBILE WEBSITES eMAIL SECURITY CSIO CERTIFICATION CSIO eXCHANGE TOOLS COMMUNICATIONS CSIOnet INDUSTRY STANDARDS & FORMS

02 04 05 06 07 07 08 09 11 12 13 16 17 18

Mission

We deliver leading-edge technology standards and solutions in order to continuously improve the consumer’s ease of doing business within the broker channel.

Vision

CSIO is a highly respected organization that delivers leading-edge technology standards and solutions, enabling excellent customer experience through the broker channel.

The CSIO Values Collaborative Working together toward our common interests while recognizing the competitive nature of the industry.

Proactive Recognizing industry challenges and influencing them within our scope.

Responsive Delivering timely, relevant solutions.

Disciplined Applying good governance at all levels of the organization, resulting in focused execution.

MESSAGE FROM THE CHAIRMAN

Looking back on 2014, we have much to be proud of at CSIO. It was a year of exciting technological advances and notable adoption of CSIO standards and solutions throughout the broker channel, improving the competitive position of all members.

A Growing Mandate

Board Update

Technology continues to be an area of focus for the insurance industry, particularly as it opens up opportunities to streamline workflow and improve customer service. To support its members, CSIO formally expanded its mandate with the launch of its Advisory Services to provide technology education, advocacy and promotion.

I am pleased to welcome two new additions to the CSIO Board of Directors: Cam Loeppky, Vice President, Information Services at Wawanesa Mutual Insurance Company and Janet Rodger, Vice President, National Operations and Project Management Office at RSA Canada. Cam and Janet each bring a wealth of industry knowledge, as well as a proven track record of operational effectiveness and strategy execution.

This mandate expansion marks the completion of CSIO’s three-year strategic plan, which was developed and implemented in 2012. This strategic plan, which followed a highly participatory planning process that featured input from numerous stakeholders through focus groups, surveys and industry meetings, has delivered true value to CSIO members and strengthened the broker channel’s competitive position. The industry’s embrace of CSIO Certification for eDocs is but one example, with 19 companies receiving certification in a short period of time. Similarly, brokers and insurers alike have responded enthusiastically to our legal and vendor research on eSignatures technology, leading to increased adoption and improved workflow across the industry.

2015-18 Strategic Plan I am pleased to say that, following another round of inclusive and participatory planning and research that has included significant member input, CSIO has developed a brandnew strategic roadmap to see us and our members through the next three years of industry growth and change. We will continue to deliver leading-edge technology solutions, facilitate increased member engagement and, as always, work to improve and maximize workflow efficiency across the entire broker channel.

Acknowledgements CSIO could not succeed without the dedication and commitment of its volunteers. Their knowledge and perspective is invaluable in the development and proliferation of industrywide standards for the mutual benefit of all members.

On behalf of the Board, I extend our sincere thanks to these outstanding volunteers and member companies for their commitment to CSIO. I would also like to recognize Catherine Smola and the entire CSIO team for their passionate dedication to our industry, and delivering on their mandate to improve the competitive position of the broker distribution channel.

Through collaboration and leadership, CSIO and its members are well positioned to succeed in an increasingly digital world.

I look forward to another great year for CSIO and its membership!

Steve Whitelaw, CSIO Chairman Vice President Strategic Planning and Execution Travelers Canada

02 CSIO 2014 ANNUAL REPORT MESSAGE FROM THE CHAIRMAN

“CSIO, in partnership with its members, continues to support an efficient and prosperous broker channel�.

MESSAGE FROM THE PRESIDENT AND CEO

Technology, Collaboration and CSIO – A Powerful Combination The competitive position of the broker distribution channel is becoming increasingly dependent upon technology, and the significant benefits it can provide to productivity, efficiency and customer service. At CSIO, we know that wide adoption of technology and standards throughout the broker channel is crucial to success, and it is only through collaboration that we can achieve our industry’s goals of healthy growth and a strong competitive position.

Advisory Services Through its Advisory Services initiative, which launched in 2014, CSIO supports the ease of doing business in the broker distribution channel. After all, what is technology if not easy? Efficient? Electronic? Advisory Services quickly became far more than a collection of tools and resources – though it certainly is that, spanning eSignatures, Mobile Websites, TLS eMail Security and more. Advisory Services is a forward-thinking, proactive initiative that represents CSIO’s commitment to a strong, dynamic and competitive broker distribution channel.

The eDocs Savings Calculator is an example of one such innovation developed under the Advisory Services umbrella. With this tool, brokers are able to quantify the benefits and determine the financial and time savings realized in their own operations from implementing eDocs.

As well, CSIO Certification continues to succeed in promoting a uniform, standards-based implementation of eDocs across the broker channel, with 10 additional insurer and vendor members achieving certified status in 2014. With 19 total certified members and more on the way, we congratulate participating companies on their leadership and look forward to the expansion of streamlined workflows in 2015. eSignatures is another achievement for the P&C insurance industry, including the release of the CSIO eSignatures Vendor Dashboard to support our members in adopting this cost-reducing, customer-friendly technology.

The Dashboard is a detailed, rigorous review of several eSignatures vendors in Canada against legal, operational and financial criteria.

Member response to the Dashboard has been overwhelmingly positive, and as CSIO moves forward with its new three-year strategic roadmap, we look forward to identifying further technological innovations that support our members in strengthening their competitive position and achieving profitable growth.

Industry Collaboration Member engagement, the final piece of our expanded mandate, took a meaningful step forward with the launch of our CSIO eXchange discussion forum. This online message board allows all CSIO members to post questions, opinions, suggestions and thoughts on any topic related to technology and workflow in the broker channel. The interactions on CSIO eXchange have already proven valuable, with member suggestions leading to the development of new CSIO tools and resources in a short period of time. The eXchange, along with other member feedback initiatives, provides CSIO with a dynamic platform on which to develop further enhancements and projects going forward.

2015 and Beyond With expanding Advisory Services and increased member engagement, I am excited to see the growth of our industry and the further execution of CSIO’s strategic plan. CSIO, in partnership with its members, will work diligently to support an efficient broker channel that grows and prospers.

Catherine Smola President and CEO CSIO

04 CSIO 2014 ANNUAL REPORT MESSAGE FROM THE PRESIDENT & CEO

Board of Directors The CSIO Board of Directors represents a cross-section of insurers and brokers across Canada.

Steve Whitelaw

Ted Harman

Sean Christie

Keith Jordan

Cam Loeppky

Robert Merizzi

Rick Orr

Chairman Vice President, Strategic Planning and Execution Travelers Canada

Vice-Chairman President Accent Insurance Solutions

Chief Information Officer & Vice President, Information Services Gore Mutual Insurance Company

President & Chief Executive Officer Hub International Horizon Insurance

Vice President, Information Services Wawanesa Mutual Insurance Company

Chief Information Officer & Executive Vice President, Business Systems Transformation Aviva Canada

Owner Orr Insurance and Investment Group

Jack Ott

Janet Rodger

Bill Simms

Catherine Smola

Sheldon Wasylenko

Andrew Wood

Dan Danyluk

Senior Vice President & Chief Information Officer Intact Financial Corporation

Vice President, National Operations and PMO RSA Canada

Commercial Accounts Director Crosbie Job Insurance

President & Chief Executive Officer Centre for Study of Insurance Operations

General Manager Rayner Agencies Ltd.

Chief Information Officer Northbridge Financial Corporation

Guest Member Chief Executive Officer Insurance Brokers Association of Canada

TOTAL MEMBERSHIP

OF OVER

35 THOUSAND

BROKERS

05 CSIO 2014 ANNUAL REPORT BOARD OF DIRECTORS

92% OF ALL BROKER

CHANNEL INSURERS

Members CSIO is proud to represent a total membership of over 35,000 brokers, insurers and software vendors across Canada.

Insurance Company Members Aviva Canada Inc. Chubb Insurance Company of Canada CUMIS General Insurance Company Echelon General Insurance Company Economical Insurance The Guarantee Company of North America Intact Insurance L’Unique General Insurance Northbridge Insurance Optimum General Inc. Peace Hills General Insurance Company Pembridge Insurance Company RSA Canada SGI CANADA Sovereign General Insurance Company Travelers Canada Unica Insurance Wawanesa Mutual Insurance Company Vendor Members Applied Systems Inc. Brovada Technologies Inc. CGI Group Inc. Custom Software Solutions Inc. Family Insurance Solutions Inc. Groupe Ultima Inc. IBM Independent Broker Resources Inc. (IBRI) Informco Inc. Insurance Systems Inc. (ISI) Insurance Visions, Inc. (ecertsonline) Keal Technology Logiciels Deltek Inc. MASTERCOM Consulting Ltd. Mutual Concept Computer Group Inc. Ontario Mutual Insurance Association Policy Billing Services Inc. Policy Works Inc. PowerSoft Development Corp.

Promutuel Insurance Inc. Quindell Plc SCM Risk Management Services Inc. SEH Computer Systems Sharp Insurance Surex Direct Ltd Vertafore Zycomp Systems Ltd. Brokers Association Members IBAC – Insurance Brokers Association of Canada IBAA – Insurance Brokers Association of Alberta IBABC – Insurance Brokers Association of B.C. IBAM – Insurance Brokers Association of Manitoba IBAN – Insurance Brokers Association of Newfoundland IBANB – Insurance Brokers Association of New Brunswick IBANS – Insurance Brokers Association of Nova Scotia IBAO – Insurance Brokers Association of Ontario IBAPEI – Insurance Brokers Association of PEI IBAS – Insurance Brokers’ Association of Saskatchewan RCCAQ – Regroupement des cabinets de courtage

d’assurance du Québec Toronto Insurance Conference

C.A.M.I.C. (Canadian Association of Mutual Insurance Companies) Members Algoma Mutual Insurance Company Ayr Farmers Mutual Insurance Company Bay of Quinte Mutual Insurance Company Brant Mutual Insurance Company Commonwell Mutual Insurance Group Dufferin Mutual Insurance Company Dumfries Mutual Insurance Company Germania Mutual Insurance Company Gore Mutual Insurance Company Grenville Mutual Insurance Company Halwell Mutual Insurance Company Howick Mutual Insurance Company HTM Insurance Company Kent & Essex Mutual Insurance Company The Kings Mutual Insurance Company Lambton Mutual Insurance Company Ledor Assurances Mennonite Mutual Fire Insurance Company The North Waterloo Farmer’s Mutual Insurance Company Oxford Mutual Insurance Company Peel Maryborough Mutual Insurance Company Peel Mutual Insurance Company Portage La Prairie Mutual Insurance Company Promutuel Assurance Appalaches – St-François Promutuel Assurance Inc. Promutuel Assurance Bagot Promutuel Assurance Beauce – Etchemins Promutuel Assurance Bellechasse – Lévis Promutuel Assurance Bois – Francs Promutuel Assurance Coaticook – Sherbrooke Promutuel Assurance Deux – Montagnes Promutuel Assurance Drummond Promutuel Assurance de l’Estuaire Promutuel Assurance du Lac au Fjord Promutuel Assurance Lac St-Pierre – Les Forges Promutuel Assurance Lanaudière Promutuel Assurance Lotbinière Promutuel Assurance L’Outaouais Promutuel Assurance Monts et Rives Promutuel Assurance Montmagny – L’Islet Promutuel Assurance Portneuf – Champlain Promutuel Assurance Rivière-du-Loup Promutuel Assurance Vallée du Saint-Laurent Promutuel Assurance Vaudreuil – Soulanges Promutuel Assurance Verchères Red River Mutual Insurance Company Saskatchewan Mutual Insurance Company South Easthope Mutual Insurance Company Townsend Farmers’ Mutual Fire Insurance Company Trillium Mutual Insurance Company Wabisa Mutual Insurance Company West Wawanosh Mutual Insurance Company Westminster Mutual Insurance Company

06 CSIO 2014 ANNUAL REPORT MEMBERS

Advisory Services – Your e’s of doing business As CSIO delivered on its expanded strategic mandate to educate and support its members in adopting new technology, the letter “e” became increasingly important. After all, what is technology if not easy? Efficient?

Electronic? CSIO Advisory Services quickly became far more than a collection of tools and resources.

Through the Advisory Services initiative, CSIO supports the ease – or e’s – of doing business in the broker distribution channel.

eSignatures Your e’s of doing business What do eSignatures mean? Lower costs. Less follow-up. One-step signatures for customers over tablets, computers and smartphones.

Recognizing the need for improved customer convenience, CSIO developed and released several informative resources to assist the industry in moving forward with this emerging technology. eSignatures Vendor Dashboard Accessed by thousands of CSIO members since its launch, the Dashboard supports broker adoption by reviewing a number of eSignatures solutions available in Canada against the following criteria: • Legislative and regulatory compliance • Workflow efficiency and user experience • Pricing and support “The eSignatures Dashboard was a great help to me; knowing that so many vendors meet my requirements provided a lot of confidence as I moved forward in my research.”

– Adam Hare Director of Marketing & Communications Petley-Hare Limited Insurance Brokers

07 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

Legal & Regulatory Education – Advisory Report CSIO commissioned electronic commerce law specialist Daniel Fabiano, of Fasken Martineau LLP, to review the legal and regulatory landscape governing eSignatures in Canada. The report serves to educate brokers and insurers and provides: • High-level overview of electronic commerce, signature and delivery law at the provincial and federal levels • Confidence that the use of eSignatures for insurance documents is both valid and permissible

“With the Advisory Report, CSIO just increased its value to me as a broker. It provides an excellent foundation for understanding what the legal requirements are and helped me move forward in adopting eSignatures in my brokerage.”

– Gord Thompson Account Executive, Christie-Phoenix Insurance Brokers

40% OF INSURANCE

RESEARCH

DONE ON

MOBILE

DEVICES

IN 2013

Mobile Websites Your e’s of doing business More internet traffic now comes from smartphones and tablets than PCs with 40% of insurance research time spent on mobile devices – for brokers, this means that providing a mobile-optimized website is essential to attracting and retaining new customers.

White Paper: Broker Best Practices for a Mobile-Optimized Website To support brokers in keeping up with changing customer behaviour towards mobile devices, CSIO expanded its educational library with an informative white paper, featuring: • Valuable information on design principles and ease of implementation • Tips on measuring the success of a mobile website • Brokerage case studies

“With today’s evolving tech-savvy customer, having a mobile website is critical to the growth and sustainability of your brokerage. It’s tremendously valuable for brokers to know that they can turn to CSIO for support in adopting customerfriendly technology – the mobile websites white paper was particularly helpful.”

– Cory Young Chief Operating Officer Rhodes & Williams Insurance

25% OF CUSTOMERS

USE MOBILE

DEVICES EXCLUSIVELY

IN THEIR RESEARCH

08 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

eMail Security Your e’s of doing business Easy and inexpensive to implement, Transport Layer Security (TLS) protects emails against privacy breaches, enabling communication of sensitive information over email in place of paper workflows.

TLS Broker Adoption Map CSIO undertook a study to determine the province-by-province implementation of TLS among its broker members. The results were used to produce an interactive map that was published and distributed to provincial broker associations, encouraging further adoption of this industry-wide standard.

“As insurance brokers, we provide our clients with peace of mind, and TLS email security is one more way we can provide that peace of mind. It demonstrates that we take their private information seriously and we’re doing everything we can to protect that information.”

– James Archer Broker and Co-owner Knight Archer Insurance

TLS Broker Adoption Rates Across Canada

BC

81%

AB

81%

SK

91%

MB 76%

ON 75%

NL

QC

63%

60%

PE

58%

NB 42%

09 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

NS 57%

“ Privacy is a top industry concern, yet many brokers still send sensitive customer information over unsecured emails.�

19 MEMBER

INSURERS & VENDORS

NOW CERTIFIED

CSIO Certification Your e’s of doing business

CSIO Certification is a national program designed to reduce the cost and risk to its members by ensuring that standards-based solutions are uniformly implemented across the broker channel. eDocs Certified • 10 new insurers and vendors certified for their eDocs solution in 2014 •1 9 total members now certified, ensuring ease of implementing eDocs for brokers across the industry

“Unica is very proud to receive formal recognition of our eDocs solution by CSIO’s Certification program. In keeping with Unica’s commitment to technology investment to help our brokers, we have now expanded our eDocs offering to include Commercial Insurance policy documents.”

– Martin Delage, President and COO Unica Insurance

11 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

“Gaining CSIO Certification has been extremely important to us in our journey to deliver a strong service proposition to our brokers. The endorsement from CSIO is reflective of RSA’s ongoing investment in the broker channel to help increase broker efficiency and streamline workflows.”

– Donna Ince, Senior Vice President of Personal & Commercial Insurance RSA Canada

CSIO eXchange Your e’s of doing business The eXchange online forum is a central place for CSIO members to connect, collaborate and exchange. The forum provides members with an opportunity to: • Share knowledge on workflow issues and exchange ideas that improve efficiencies in the broker channel.

• Gain experience and diverse perspectives from industry peers on current and emerging trends.

• Develop solutions that bring the industry together to improve the competitiveness of the broker channel.

Member feedback provided on the eXchange led to the development of a new CSIO member tool within weeks of launch.

“The eXchange has provided a platform for all levels of our industry to encourage ideas and conversation. The responsiveness and action taken by CSIO with ideas and discussions raised has been both excellent and productive, providing new tools and insights into CSIO standards and solutions.”

– Carrie Will EDI Coordinator Intact Insurance

“It’s nice to be a part of a group of key industry stakeholders who not only work well together to collaborate on consistent workflows and implementation of standards, but who are also committed to the progress of the entire broker channel, not just their own organization.”

– Sonia Atherley, Business Analyst Specialist Northbridge Insurance

12 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

Tools Your e’s of doing business CSIO released a number of tools and resources to facilitate workflow and support the implementation of technology standards and solutions in the broker channel. eDocs Savings Calculator • Broker tool to determine the potential cost and time savings of eDocs adoption • Development included substantial collaboration with brokers to determine variables and produce accurate results • Over $33 million in calculated annual broker savings “We’ve been using eDocs for a year now, and the Calculator really provided quantifiable assurance that the technology was delivering the savings

we expected.”

– Anne Carswell Technical Services Manager Darling Insurance

“The calculator was very easy and intuitive to use. The numbers I needed to plug in were simple to obtain, and it provided me with compelling results that enabled me to see exactly how beneficial eDocs have been to my brokerage.”

– Tracy McDonald, President Lake-of-the-Woods Insurance

13 CSIO 2014 ANNUAL REPORT ADVISORY SERVICES

EDI Assist • Supports insurer and vendor members in troubleshooting • Fast, convenient validation of EDI standards implementation Auto & Hab Coverage Code Lookup • Broker-focused tool for rapid lookup of common coverage codes • Reduces support calls to BMS vendors and insurers • Result of industry collaboration on CSIO eXchange Undelivered Mail Report • Streamlined tool for insurers to identify and resolve failed CSIOnet messages • Significant time savings “The Undelivered Mail Report has saved my team a lot of time – often, we can resolve issues before brokers even realize they’ve occurred.

Simply put, it’s simplified our workflow and removed a lot of unnecessary back-and-forth between us and our business partners.”

– Cheryl MacKenzie Senior Business Analyst & EDI Coordinator Aviva Canada Inc.

Standards Request Tool • Up-to-date information on CSIO Standards, maintenance and enhancement requests • Quick reference for insurer and vendor members

eDOCS SAVINGS CALCULATOR

+

$

Mail & Courier Services

$

Scanning, Sorting, Shredding Archiving & Storage

+

$

Disaster Recovery

Administration

+

S A V I N GS

CEO BLOG HOSTED ON

CANADIAN UNDERWRITER

insBlogs

26 NEW VIDEOS

15 CSIO 2014 ANNUAL REPORT COMMUNICATIONS

OVER

OVER

10 ,000 MINUTES

3,VIEWS 000

VIEWED

Communications CSIO’s communications efforts aim to raise awareness and educate its members on the benefits of leveraging technology in their organizations.

In 2014, CSIO delivered on many new and exciting activities, including: • Launch of Twitter and LinkedIn accounts, gaining over 600 followers in its first year • Unveiling of new mobile website, offering users an optimized browsing experience • Enhanced branding to complement the launch of Advisory Services • Coordinated iconography to unite CSIO resources and offerings • Over 1,000 new member accounts on CSIO.com, strengthening engagement • CEO blog hosted on Canadian Underwriter insBlogs, featuring topics on driverless cars, drones used for assessing claims, wearable technologies and more • 26 new educational videos, with a total viewing time of over 10,000 minutes • 25 new informative articles profiling various brokers published in provincial broker magazines and nationally

• Live chat tool instantly connects members with CSIO’s bilingual support team • Launch of Advisory Centre series of practical, “how-to” articles and white papers – Education on topics such as eDocs, Mobile Websites, eSignatures and eMail Security “CSIO has done a great job at producing high-quality educational resources for our members. It’s wonderful to have an industry partner so committed to creating a culture of engagement and technological proactivity among brokers.”

– Brett Boadway Director Broker Relations & Communications IBAO

16 CSIO 2014 ANNUAL REPORT COMMUNICATIONS

78%

INCREASE

IN NEW

CSIONET

ACCOUNTS

OVER

2013

CSIOnet

Used by over 2,000 companies across Canada, CSIOnet quickly and securely transmits policy data and eDocs between brokers and insurers.

In 2014, CSIOnet saw a significant increase in daily transaction volume attributed to wider adoption among brokers and insurers, as well as the increased use of eDocs.

• 79% increase in traffic to CSIOnet over 2013 • 78% increase in new accounts

“It can be challenging for brokers to transact business with multiple insurers, each with their own portals, but CSIO brings it all together with industry standards such as EDI download and eDocs. Our brokers who make the most of these tools consistently report increased efficiencies and an improved customer experience.”

– Bryan Mo Director of Personal Insurance Operations RSA Canada

25,326,201

14,127,450 9,901,999

2012

2013

2014

CSIOnet TRANSACTIONS PER YEAR

17 CSIO 2014 ANNUAL REPORT CSIOnet

CSIO INDUSTRY FORMS

DOWNLOADED

OVER

7,900 TIMES IN 2014

Industry Standards and Forms

CSIO Industry Standards and Forms encompass personal and commercial lines and are at the core of our mandate to deliver workflow efficiencies and interoperability for the broker channel.

Working Groups

Industry Forms

Member participation is essential to the successful creation and maintenance of standards and forms. CSIO working groups attract dedicated volunteers from across the country, ensuring that all members’ needs are identified and met.

CSIO works closely with its members in collaborative working groups to build and maintain its robust library of over 100 personal and commercial lines forms. Some notable releases include:

Telematics

The CSIO telematics data standard allows information to be easily and uniformly transmitted between multiple business partners, providing considerable cost and efficiency savings for the industry.

Earlier this year, CSIO delivered Phase 2 of the data standard, adding the capacity to include driving scores. With this capability, insurers can provide quantitative assessments of their customers’ driving habits.

XML & EDI Standards

CSIO industry forms downloaded over 7,900 times in 2014 Habitational Insurance Application • Significant overhaul of this heavily used form based on member feedback Fuel Oil Tank Questionnaire • Brand-new form developed in response to member requests Revised Ontario Application for Automobile Insurance (OAF1) • Timely release to coincide with updated requirements from the Financial Services Commission of Ontario

CSIO follows an agile standards release process, ensuring members benefit from frequent and timely updates that align with evolving industry requirements.

18 CSIO 2014 ANNUAL REPORT INDUSTRY STANDARDS & FORMS

“To stand still is to fall behind. CSIO’s commitment in 2015 and beyond is to advance the ease – and e’s – of doing business for the collective benefit of our industry.”

Centre for Study of Insurance Operations 110 Yonge Street, Suite 500 Toronto, ON M5C 1T4 (800) 463.2746 Centre d’étude de la pratique d’assurance 1155, blvd Robert-Bourassa, bureau 1305 Montreal, QC H3B 3A7 (877) 393.2372 communications@csio.com csio.com