The Ontario Broker July 2011

THE Ontario broker

the official publication of the Insurance Brokers Association of Ontario (IBAO) JUly 2011

Bernie Robertson

The Communicator 02 ybc update 04 financial matters 05 legislation update 06 e&o update

07 market strategies 10 pr strategies 11 hr strategies 12 Convention Corner

13 membership benefits 14 Education update 15 community view

YBC Update The Official Publication of the Insurance Brokers Association of Ontario (IBAO) Published by

Editor Vanessa Mariga vanessa@canadianunderwriter.ca 416-510-6793 Senior Publisher Steve Wilson steve@canadianunderwriter.ca 416-510-6800 Associate Publisher Paul Aquino paul@canadianunderwriter.ca Account Manager Michael Wells mike@canadianunderwriter.ca Account Manager Christine Giovis christine@canadianunderwriter.ca Art Direction Sue Williamson The Ontario Broker is published monthly by Canadian Underwriter magazine (www.canadianunderwriter.ca).

Canadian Underwriter’s Insurance Group of publications is part of Business Information Group (www.businessinformationgroup.ca) a subsidiary of Glacier Media Inc., a leading Canadian information company with interests in daily and community newspapers and business-to-business information services.

All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or in full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent.

The articles that appear in this publication represent the opinions of the authors and do not represent or embody any official position of, or statement by the IBAO; nor do they attempt to set forth definitive action standards or to provide legal advice.

Insurance Brokers Association of Ontario 1 Eglinton Avenue East, Suite 700 Toronto, Ontario M4P 3A1 Tel: (416) 488-7422 Fax: (416) 488-7526 Toll Free: (800) 268-8845 (888) ASK-IBAO www.ibao.org Annual subscription is $52 + tax.

To order email: contact@ibao.on.ca For information on submitting an article contact Maria Roscetti Conference & Publications Coordinator mroscetti@ibao.on.ca

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The Ontario Broker / July 2011

Jason Famme YBC President

The Momentum Continues Momentum is building within the Young Brokers Council (YBC), and the number of new faces at the 2011 YBC Conference is evidence of this.

Over the years, I have been lucky enough to attend six of the seven YBC Con­ ferences. I was there when it all began at Fern Resort in Orillia. I have watched this conference grow along with the YBC organization.

Each year, it gets a little better, a little different and a bit more complex. This year was no exception in Niagara Falls. There are a handful of us ‘YBC veterans’ that are still around from the very first conference, but each year we see new faces and form new connections. When I welcomed everyone on opening night, I was struck by how many new faces I saw. There were more new faces at this year’s confer-

ence than I have seen at any other.

For years YBC has struggled with achieving principal buy-in. There is an unfounded fear that our conference is focused on frivolity, and not on business, or that by sending young brokers to the conference they will find jobs with competitor brokers. None of this could be further from the truth.

The Annual YBC conference is a chance for YBC members to make valuable industry connections with other brokers, insurance company reps and vendor partners. There is no other forum that provides the education sessions aimed at the younger generation, combined with access to some of the top insurance company CEOs and executives. This year was quite simply bigger and better than ever before.

It is essentially a tradition that The Dominion hosts our opening night.

We kicked off the evening with a cocktail party that allowed delegates to freely network with 44 Dominion staff, including President and CEO George Cooke, Dave Payette, Ontario Regional Vice President, Business Development, and Paul Stone, The Dominion’s Communication Specialist.

After dinner George shared his views relating to the current economic climate facing insurance companies,

and how the various changes taking place in the market will affect broker distribution.

Chats with CEOs Each year we invite insurance company CEOs to come and speak to our group. The response has always been a positive one.

We now have more insurance company CEOs that want to come and take part in our conference than we can fit. This is a great problem to have, and we appreciate all the support.

With hot topics such as The Economical’s impending demutualization and Intact’s purchase of AXA, we were very lucky to have George Cooke, President and CEO of The Dominion, Katherine Mabe, President and CEO from Economical (at the time of the event), Louis Gagnon President of Intact, along with Jason Storah, Senior VP, Broker Distribution, Aviva Canada.

Katherine Mabe’s presentation was quite timely.

She addressed some of the issues that The Economical faces during its demutualization process. She also put to rest some of the rumours swirling about the insurer’s future path. Katherine was very eager to meet with our group and made a point of walking through the crowd and introducing herself to each and every YBC member in the room.

Fresh off the Intact

purchase of Axa, Louis Gagnon talked about the purchase and the impact on the brokers with both markets. He also stated that it would be business as usual for the time being and that Intact will be looking at the best of both companies.

Jason Storah from Aviva spoke Friday morning discussing Aviva’s direction and their support of the broker channel.

As a young broker, it is great to have this inter­ action with high-level in­­ surance company executives and CEOs in such a relaxed environment.

This year, our hospitality reception, with a casino theme, was a great success.

Fifteen vendor partners ran tables and networked with our YBC members. The venue and informal environment was perfect for the group to network and make connections with our vendor and company partners.

Lessons Learned Our education sessions continue to expand and are focused on skills that

are relevant to all brokers, but focused on the younger generation. Derek Faulconer presented ‘The Consultative Sales Process’ Thursday morning. This session explored the themes of what makes a professional, and pros­ pecting, qualifying and closing potential clients.

Derek talked about how we have over-automated the insurance purchasing process and that our value proposition as in­dependent representatives working for the client still mattered.

Randy Carroll, IBAO’s CEO and Bryan Yetman, IBAO’s Chairman of the Board, presented a session updating the group on the current state of the broker channel. They also made their session an interactive one challenging the group to come up with the top three things that need to be addressed in the broker channel. It was truly amazing to see that out of the 10 working groups during the session, all of them included the need for simpler tech-

nology that can be inter­ active with the client and a single entry system that would function from the start of the quote process right through to issuing the policy.

The final education session of the week was ‘The Art of Powerful Conversation.’ Stuart Knight’s very energetic and inter­ active session reminded our group that there is more to asking questions and client relationships than just gathering the needed information.

The YBC Conference inspires and empowers young brokers to become more engaged in their brokerage, their clients, and the industry. Each year, I hear from new attendees that they couldn’t believe there were others out there that faced the same struggles and triumphs in their dayto-day activities. I can honestly say that there are brokers I met at the first YBC Conference that have become some of my best friends and best contacts in our industry.

President’s Schedule July 22 London Insurance Brokers CEO’s Schedule July 21-22 Conference of the Confederation July 23-27 IAAE Conference

New Members IBAO would like to welcome the following brokerages into its membership:

BST Insurance Ltd, Pickering and

Insureit Insurance Ltd, Markham

IBAO Magenta Level Sponsors

There is no other forum that provides the education sessions aimed at the younger generation, combined with access to some of the top insurance company CEOs and executives.

July 2011 / The Ontario Broker

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Financial Matters

John Knotek BMO Bank of Montreal

Managing Your Cash The cheapest money you can find may be closer than you think — in your brokerage. Accessing it requires self-discipline and good management of cash or what accountants refer to as ‘liquidity.’ This can help improve your profits, reduce the business risk of your brokerage and even enhance its value.

Probably the best mantra when it comes to managing your brokerage’s cash is: in on a jet plane and out by dog sled. This means you should accelerate cash inflow while decelerating its outflow.

Brokerages manage two primary cash inflows — premiums from customers and commissions from markets. While the relative mix of agency versus direct bill business varies amongst brokerages, finding opportunities to speed up cash flow is not unique to either billing system.

On direct bill business, consider leveraging your bank’s cash management services to receive commissions from your markets. While this may not necessarily speed up the receipt of cash, the predictability of the payment dates is likely to improve, by eliminating delays due to mail or manual processing at the carrier.

This in turn better allows the brokerage to plan its liquidity accordingly.

Another opportunity to enhance cash inflows is through premium collection. If you are consistently providing credit to your customers, some careful consideration of the costs involved may be worthwhile. For customers who regularly stretch their premiums payable (and hence your commission), this may cause the brokerage to rely more on an oper­ ating line and incur interest expense.

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The Ontario Broker / July 2011

Careful examination of your brokerage’s policies on overdue accounts (daily monitoring, collection, cancellation, receiving electronic payments) will help minimize the associated cash drain. Poorly managed receivables can ultimately result in higher bad debts, an obvious negative on cash balances. Additionally, you may want to consider having your clients use a third party premium financing solution or develop an in-house premium financing offer to alleviate cash strains created by habitually late payers.

Ultimately if the brokerage maintains positive general account balances, then consult with your banker as to potential income generating opportunities that also consider forecasted cash needs. Quite simply, it generally is not advantageous to be booked into an investment and also drawing on an operating line.

Decelerating cash outflows is another important component to liquidity. Some simple steps include: controlling petty cash and advances, using credit cards for employee expenses (which also helps

with record keeping), paying bills only when due, and examining any prepaids for advantageous discounts. In looking at payables under general expenses, it is most cost effective to prepare for them in advance. Separate the payables into 30-, 60-, 90- and more-than-90-day due dates.

Then segregate all payables by type: those offering discounts for early payment, those that are demanding/charge on overdue accounts and those that allow you to run long. Armed with this information, you will be better able to draw up a suitable payment schedule that maximizes your cash on hand.

An added benefit of better understanding cash ins/outs is improved cash forecasting. Knowing well in June that the following February will see a brokerage running tight could prompt for advanced changes in cash management or the need to set up an operating line (usually less than 10% of annual commissions). Taking such action in advance rather than responding to an overdrawn account is a great insurance policy for your brokerage.

Probably the best mantra when it comes to managing your brokerage’s cash is: in on a jet plane, out by dog sled.

Legislation Update Act. Specifically, you will be alerted to what information has to be provided to clients and persons with disabilities, in an appropriate manner relative to their respective disability. In addition, it will also cover providing opportunities for persons with disabilities to give feedback to the organization on their accessibility efforts.

Greg Kenney Director, Territory 12, IBAO

Bill 118: Breaking Down Barriers The Ontario government has mandated that businesses must be accessible to people with disabilities and comply with the Accessibility for Ontarians with Disabilities Act (AODA), Customer Service Standard by January 1, 2012. The legis­la­ tion (Bill 118) is part of the Ontario Provincial Government’s plan to ensure that by 2025, people with disabilities are able to participate in and enjoy the opportunities available to people without disabilities.

As part of our member benefits, IBAO will provide your office with tools and re­­ sources to ensure compliance with the customer service standard of AODA on all policy and procedure requirements. The Customer Service Standard requires that organizations develop policies, procedures and practices and train staff on how to serve and communicate with people with disabilities. Our human resource partner ENGAGE HR will develop all the material for compliance to the Act.

Reporting Offices with more then 20 employees are required to complete an online report on AODA compliance. IBAO has developed a ‘How To’ tool, that was emailed to all member offices as a best practices recommendation, with clear instructions targeting the specific requirements of brokerages with more than 20 employees.

Training Training must include an overview of the purposes of the AODA and the requirements of the customer service standard,

in addition to other topics, including how to interact with people with different kinds of disabilities. The training must be provided to all staff, volunteers, contractors and anyone else who interacts with the public or those involved in developing customer service policies, practices and procedures.

Your brokerage can attempt to conduct the training in house utilizing internal resources. Alternatively, IBAO will also present a webinar-based training session. The webinars will incorporate the re­­quired training elements related to the customer service standard of AODA. The webinars will be available in September 2011.

For more information, please contact Asima Zahid, Broker Relations & Insurance Support, IBAO at 416-488-7422, ext 107 or at azahid@ibao.on.ca.

Policies and Procedures As additions to the IBAO Office Procedures Manual, new policy templates were developed and emailed to you in May. These include policies and procedures on customer service requirements for serving persons with disabilities, the use of assistive devices in order to access goods and services, and the accompaniment of service animals and support persons in order to access goods and services.

Communication IBAO now has a communication guide to ensure compliance with all communication related components required by the July 2011 / The Ontario Broker

05

E&O Update

Hugh Fardy Senior Vice President, The CG&B Group

Covering the Bases of Switching Markets When replacing an existing market with a new one, whether during a renewal or when writing a new account, it’s essential that the broker understands what the client is asking for, assess exposures, make recommendations and be sure to make clear to the client how the new coverage compares to the past.

I am speaking mainly about the situation where we are faced with a new account that we will write with an insurer other than that on the existing policy. However, some of the principle will apply to a similar situation with renewals and remarketed accounts of your own.

The first point is for the broker to clearly establish what exactly the client’s request is. Are you being asked to obtain specific coverage for the client or are you being asked to obtain insurance for the client’s exposures in the more general sense? When we are asked to obtain a specific coverage in clear and certain terms, we must do so. If we are unable to do so, we must advise the client.

When we receive the more general request, we have a much broader required response. In both cases, but more so in the general request, we must assess the client and his or her exposures. Once we have identified exposures, we must address them with appropriate insurance solutions. Using a reasonable level of care and skill, we must make suitable recommendations to satisfy each type of request.

At some point, usually when we have our recommendations ready, we need to review the previous policy for the client. It is important to compare the previous coverage to our recommended coverages and discuss the differences with the client. The client needs to be aware of the coverage differences so they don’t make assumptions they still have items that were included in the previous coverage, but not in the new policy. We need to examine how the client’s exposures were addressed by the previous coverage and

clearly explain how that might differ from our recommendations.

These suggestions will apply to business in both the commercial and the personal lines areas. When we deal in commercial, we often have an opportunity to have a more consistent dialogue with the client, and this process may flow more smoothly.

It is very important in the personal lines area that we do what is necessary to give ourselves the opportunity to present the client advice and options as required.

Knowledge of competition wordings is essential and the ability to address an actual copy of previous policies is a huge benefit. We need to know what we are comparing our recommendations to in terms of coverage provided.

Therefore, understand what the client is asking for, assess exposures, make recommendations and be sure to make clear to the client how the current compares to the past.

I would be remiss if I didn’t mention the strong suggestion that you document this in writing with the client, especially in cases of a reduction in limit or coverage.

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The Ontario Broker / July 2011

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Market Strategies

Bill Morris Navicom, Inc.

What Do Coffee and Insurance Have in Common?

Parallels between insurance sold by brokers and coffee may not be immediately apparent, but they are there. Both are being offered in markets undergoing massive shifts, and both the brokerage model and the gourmet coffee house model are having to evolve to maintain ground and grow.

At the recent inaugural Beyond Best in Class (BBIC) workshop, a question was asked at the beginning of the workshop and once again at the end. At first, the participants did not see the relevance, but as the workshop progressed, the connection became obvious.

Starbucks is one of the “Best in Class” companies referenced throughout the BBIC workshop. And while Starbucks has become well known as a world class purveyor of high quality coffee in a unique environment, most people are not aware of the underlying issues that threatened its very existence only a few short years ago. The severity of these issues ultimately led to founder Howard Schultz returning as CEO of Starbucks in 2008.

Putting Starbucks back on the path to sustainable growth and profitability is a compelling story. Who better to tell it than Howard Shultz in his new book called Onward — How Starbucks Fought for Its Life without Losing Its Soul. Shultz doesn’t pull any punches when he writes about the factors that lead up to what could have been the beginning of the end for Starbucks. With refreshing candor and honesty, he takes full responsibility

for the shift in Starbucks’ priorities from providing an outstanding customer ex­­ perience to rapid expansion. He says he felt compelled to return as CEO and oversee the necessary transformation by refocusing Starbucks on its core values and re­­igniting the innovation required in order to thrive in a dramatically shifting marketplace.

Those familiar with the Canadian property and casualty business will see that there are some powerful parallels between the monumental changes underway in the Canadian insurance industry and some of the key factors that lead to Starbucks fall from grace. A fundamental common element between coffee and insurance sold by brokers is that both have the potential to be an emotional experience for the consumer. Howard Shultz had the vision of making the purchase and consumption of Starbucks coffee an emotional experience, when almost every one else out there was treating it as a commodity.

For centuries, P&C insurance has always been a very personal relationshipdriven experience with strong emotional connections. However, the average in­­ surance experience has arguably become more mechanical in recent years and brokers are generally less connected to their customers today than they once were. Increasingly, P&C insurance is being referred to as a commodity product that is the same no matter where it is purchased.

The dramatic rebirth of Starbucks speaks for itself, just as its earlier pending demise speaks to the fact that Starbucks had lost its way and became more focused on growth then consistently delivering on its mission: “Inspire and nurture the human spirit — one person, one cup, one neighbourhood at a time.”

Can the on­­going decline of broker market share in Ontario be partially caused by the same underlying situation — that brokers are no longer focused on their traditional value essence of delivering a highly emotional experience when it comes to providing P&C insurance solutions? There is an increasing body of evidence that suggests this is exactly what is happening.

If brokers have indeed lost their focus on delivering the emotional benefits that matter to their customers, the solution may well be a dramatic transformation agenda akin to what Shultz engineered at Starbucks. But as Shultz was quick to discover, the market in which he was competing in 2008 was much different than when he first went to work for Starbucks in 1982. The challenge for brokers is not only to “transform” the way they deliver traditional, emotional benefits to their existing customers, but to also identify new ways to deliver new emotional benefits that resonate with a whole new generation of customers.

Either way, status quo is not an option.

Coffee anyone?

The average insurance experience has arguably become more mechanical in recent years and brokers are generally less connected to their customers today than they once were.

July 2011 / The Ontario Broker

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Bernie Robertson, of Knox Insurance Brokers Ltd., sees a shift occurring in the marketplace, and believes that if brokers and insurers work together, real gains can be made for the consumer.

By Vanessa Mariga

The Communicator Bernie Robertson, corporate risk manager at Knox Insurance Brokers Ltd., understands that being a good broker has less to do with being a good salesperson than it does having a deep knowledge of the product. One must be able to com­ municate that knowledge to the client so that they develop a strong understanding of it.

Robertson was born and raised in Brockville, Ont. He grew up in a family in which, “all the boys went into insurance,” he says. His adoptive father served as a principal of DLK Insurance in downtown Brockville for years, and encouraged Bernie to explore the underwriting side of the business.

In 1989, Bernie launched his career as a commercial underwriter with Commercial Union in North York. Within the year, he shifted to Sun Alliance in downtown Toronto.

“I grew up hearing the lingo, so it wasn’t a big stretch for me to work in the field, but I didn’t actually understand the underwriting side of the business, that it was more of an art than a science,” Bernie says. “It was good to get my feet wet through commercial underwriting.”

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The Ontario Broker / July 2011

In 1991, Sun Alliance promoted him to marketing rep for Northern Ontario, where he was charged with the responsibility of maintaining 25 brokers, spanning from North Bay to Hearst, Ont. “I didn’t know anyone when I moved to North Bay, not a soul. My father put me in touch with Art Langley, who took me under his wing and was my mentor and close friend until his passing.”

It didn’t take long for Bernie to settle in and fall in love with his new surroundings. “Once you spend a bit of time in a city like North Bay — where it takes you 10 minutes to drive across downtown and if there’s five cars in front of you, that’s considered a traffic jam — you don’t want to leave,” he says. “As soon as I settled in, I realized that Toronto is a great place to visit, but I’m happy to stay here.”

In 1994, Royal Insurance purchased Sun Alliance (now called RSA Canada), and Bernie was left without a position.

Bruce Knox, the owner of Knox Insurance called on him, and Bernie made the swing to the brokerage side, where he has remained since.

“I’m good at storytelling, and that seems to be the easiest way to talk to the

consumer to help them understand a very complex product and its nuances. Give them an example, make it tangible for them,” he explains. “That’s the easiest way to impart something, because they will understand a story, but they won’t necessarily understand legalese.”

Bernie shares this special skill with his colleagues as well. In 2001, he started his involvement with IBAO, as a territory director. By his third year, he was teaching courses.

“I really enjoy facilitating IBAO courses. By the end of the day, I’m not exhausted because I really thrive on having some interaction and imparting knowledge to students.”

Bernie also practices what he preaches, though. Continuing education has played an integral role in his own career, having the distinction of earning the first commercial CPIB (Canadian Professional Insurance Broker) designation in Canada. In the future, he hopes to earn the MBA designation being offered through the newly minted program at Laurentian University, in conjunction with the Insurance Brokers Association of Canada.

Photography by Pat Bushey

Northern lights Once Bernie Robertson landed in North Bay, he knew he had found his home. He has lived in the community for 20 years, and has no intention of ever leaving.

big fish, big pond Knox Insurance is the largest, independent brokerage north of Barrie, Ont. More than 40 people work there, and it strives to engage its clients in new ways.

The Challenges The Canadian insurance marketplace is undergoing a monumental shift, presenting heightened challenges to the independent broker distribution channel, Bernie says.

Knox Insurance is the largest, independent, non-insurer owner brokerage north of Barrie. With a staff of 43, the firm is going strong, but Bernie understands that as the marketplace evolves, the independent brokerage model also needs to shift. But these shifts can not occur in isolation from one another, moving forward the insurers and brokers need to form stronger partnerships.

With a flurry of consolidation under-

quarterly reviews Each quarter Knox selects a theme to focus on. Staff receives training on the theme, and this knowledge is then passed on to the consumer.

beyond the box As a corporate risk manager, Bernie advises on comprehensive understanding of risk, including providing advice on pre-planning first steps of business recovery after a loss.

way in the marketplace, he predicts that within the next 10 years, Ontario consumers will have 10 markets that are multi-line carriers that will write personal lines and small commercial accounts.

“We need to be forming strategic partnerships with the markets we have, ones that are even more in-depth than the contractual ones we currently have, so that we’re using their systems in our offices, with a single point of entry, and so that we’re issuing the policy here at the brokerage,” he says.

“I see it as a natural progression. If we don’t do it, then we’re going to see the banks using their vast wealth to further erode market share to the detriment of

HEALING POWER Knox Insurance teamed up with 8 other North Bay area brokerages to donate $250,000 to the North Bay Regional Health Care Centre’s surgery wing.

the broker channel. Consumer choice is a fundamental value proposition to the independent insurance broker.”

The evolution may already be underway, he suggests, pointing to the recent announcement that Northbridge was integrating its subsidiaries into one brand, Northbridge Insurance, in order to leverage resources and create efficiencies for their broker clients.

“We’re starting to see that some insurers are realizing that they need to change their business model. We can’t just have the contractual relationship, there has to be a true partnership, and there has to be a chance for loss and a chance for gain on both sides.”

July 2011 / The Ontario Broker

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PR Strategies

Huw Williams President, Impact Public Affairs

Creating a Relationship with Local Media Brokers have been busy in their communities preparing for their summer broker Awareness Days. We have already seen a significant amount of fundraising and awareness events taking place in many communities across Ontario.

The first step with hosting any public relations related event is creating that fundamental relationship with your local media. In any PR effort, it is critical not to underestimate the power of the media.

The media serves as a measure of public concern and public opinion. It’s essential that the local media be aware of your

brokerage and your brand, so it can be reflected in a positive light.

There is no substitute for starting early and taking a proactive approach to dealing with the media. Your brokerage should familiarize themselves with beat reporters. Employed by mainstream media outlets, these reporters are assigned special focuses or beats and so they might have a particular interest in your event or the insurance industry. Examples include city and business reporters.

Get to know your beat reporters. Have coffee with them or take them to lunch.

Continue to send them stories and be prepared to work with them. Beat reporters are a great asset in helping your brokerage get its message out.

We are expecting more broker Awareness Days to take place this summer than ever before. Prepare for these events by not only informing your customers, but also by engaging your local media. IBAO’s public relations associate, Emily Reid is happy to assist your brokerage with the preparation of your press release for its upcoming event and assist you with creating a media list of your best local contacts. You can reach her by e-mail at emily@impactcanada.com or by telephone at 613-233-8906.

Remember, public relations is key to increasing awareness and building the

brand. It creates that important dialogue between the news media and your business for the long-term.

The media serves as a measure of public concern and public opinion. It’s essential that the local media be aware of your brokerage and your brand, so it can be reflected in a positive light.

Catch The Wave

Surfing the web for Insurance Quotes is here to stay.

Let Compu-Quote provide you with the tools to generate new business.

www.compu-quote.com 10

The Ontario Broker / July 2011

HR Strategies

Courtney Kidd HR Associate, ENGAGE HR

Evolving Diversity in the Workplace Change has always been an issue people have come to expect, reject, celebrate and simply tolerate. Well known within modern workplace environments, the organizational friction that change can create has contributed to the difficulty organizations face when having to continuously redefine how strategy, structure and people interact.

The extent of change to our work environments in recent years has been monu­ mental. Within this process the need to change strategy and structure has often been viewed as ‘mission critical,’ but it is the ongoing change to the composition of our workforce that will increasingly require greater attention.

Part of the problem has been a result of Canada’s longstanding reputation for embracing culturally diverse communities. This notion of acceptance of diversity has continued to be celebrated in spite of tension that surrounds questions of equity, fairness and true inclusivity of visible minority groups.

Visible minority groups in Canada currently account for 16.2% of the population and an increasing percentage of the labour force. While different perspectives on immigration exist, one reality is that the majority of new immigrants arrive under economic status and provides our economy with the human capital necessary to remain competitive. Continued levels of foreign born growth are needed in Canada, as the native born population continues to decrease, and as Baby Boomers get set to retire. Irrespective of this knowledge, differences in the treatment of minority workers in respect to pay, career opportunity, and acceptance continue to persist.

Many issues contribute to why and why not this may be the case, but what is important as a brokerage is to do your part to ensure you employ equitable policies and processes. This begins with reflecting on your workplace to assess the level of diversity that currently exists.

Many of the barriers that act to exclude

minority groups are not overtly visible, as subtle conscious and unconscious biases continuously act to affect our day-to-day decision making. The Conference Board of Canada recently identified predominant barriers that limit the accessibility of minority workers, and are said to include: perceptions of fit; language barriers; lack of recognition for foreign credentials; and, differences in standards of performance.

The changes in the diversity of our communities, paired with predicted labour shortages, position the need to support and make changes to increase the inclusivity of our workplaces more important than ever before. Seeing past observable differences and sourcing out rea­­son­­able solutions will ensure that your workplace comes to respect and embody the diversity of the communities that you serve.

Within the IBAO HR Manual, tools have been provided to assist brokerages in the creation of respectful and diverse workplace environments. Key to becoming a best-in-class employer requires embracing diversity in a meaningful way.

The creation of a workplace culture that is respectful of diversity will not only aid in your ability to attract, recruit and retain key members of minority groups, but will contribute to your long term business success over time.

July 2011 / The Ontario Broker

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Convention Corner

Maria Roscetti Conference and Publications Coordinator, IBAO IBAO’s 91st Annual Convention, between Wed., Oct. 19 and Fri., Oct. 20, 2011, is around the corner.

The premier event embraces the insurance industry and offers the best available networking, where key industry players from across Ontario as well as Canada gather for an opportunity to meet with their peers, colleagues and CEO’s sharing industry knowledge while observing

many of the latest products.

We have dynamic speakers lined up for you, so don’t miss this spectacular event at Toronto’s landmark hotel, The Fairmont Royal York.

This year’s program promises invaluable industry knowledge with networking opportunities you won’t want to miss. The aim is to re-energize the entrepreneurial skill of brokers and advance the cause for the youngest in the profession.

IBAO’s Convention reaches a broad range of brokers providing access to key decision makers across our industry. Given the recent shocks to the system, now is the right time to bring everyone together once again. We guarantee you will not only gain a wealth of information, but you will also have a great time doing it!

Here are just a few of our convention highlights: • Thursday morning’s Keynote Speaker is Jason Dorsey, and his presentation

CONFIDENT. MOTIVATED. EXPERIENCED.

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The Ontario Broker / July 2011

‘Selling Across Generations: Specific Tactics that Drive Sales Whether You Text, Tweet, or Actually Talk on your Mobile Phone’.

• Stuart Knight was a hit at our YBC Conference held in June — so we’re bringing him back to talk to us about The Art of Powerful Conversation as part of our CSR Session Thursday afternoon.

• Of course, we could not forget to include our ever popular CEO Panel, moderated by two-time Gemini award winning broadcaster and journalist, Evan Solomon. Once again, this panel will be comprised of some of the top executives from leading property and casualty insurance companies.

For complete convention details and hotel accommodations, visit IBAO’s website, click on ‘News & Events’ and click on ‘91st Annual Convention.’

Don’t miss the chance to save BIG! Hurry, Early Bird Registration ends September 16th.

IBAO Awards of Excellence We are now accepting nominations in all four categories. NOMINATE YOUR PEERS! The Awards of Excellence were introduced in 2008 to honour, encourage and recognize insurance brokers whose outstanding activities and achievements contribute to the future of the independent insurance broker.

We are delighted to continue in the tradition of awarding and showcasing the remarkable accomplishments of our members, in four diverse categories: Broker of the Year Young Broker of the Year Brokerage of the Year Affiliate Achievement When you visit ibao.org/awards — you have two options: Complete the online form on this page to submit your nomination, OR download one of the fillable nomination forms and follow the instructions within the document. Deadline to submit your nomination(s) is July 25, 2011. Recipients of the ‘Award of Excellence’ will be announced during the Awards of Excellence Gala on Friday, Oct. 21, 2011.

Membership Benefits

Santo Ligotti Vice President Marketing & Communications, Moneris Solutions

Reducing Chargebacks and Revenue Loss As you manage your brokerage, be aware of risks and potential loss revenue posed by chargebacks.

A chargeback is the return of funds to the cardholder from the merchant’s account — funds that were accepted in a previous sales transaction. Chargebacks can result from: errors made by the merchant in the submission of credit card transactions; improper card acceptance procedure; or potential disputes from the cardholder regarding goods and services delivered or non-receipt of the goods or services.

The process begins with the cardholder or the card issuer initiating a charge­back.

The payment processor may then request that the merchant submit additional information or proof that the transaction was processed properly. It is crucial for the merchant to respond with­­in a specified time period; otherwise, the claim may result in the cardholder’s favour.

Depending on the reason for the chargeback, the merchant may be re­­ quired to demonstrate that proper card acceptance procedure was followed, or provide sufficient evidence to be allowed to keep the funds. However, if there is no remedy for the chargeback, or if the chargeback is not addressed properly, the transaction will be reversed and the merchant may not receive any proceeds from the transaction. Therefore, it is crucial to follow proper card acceptance procedures provided in detail by your payment processor.

Avoid invalid, cancelled, or expired credit cards According to Moneris’ Operational Risk team, one common issue that affects insurance brokerage businesses is the monthly insurance premiums paid with a credit card on a recurring basis. Problems such as invalid, cancelled, or expired credit cards can result in the lack of funds being received and have a detrimental impact on your cash flow. In addition, your staff must follow up with each customer to resolve the issue, resulting in inefficiencies for your business.

Most of these issues can be addressed by maintaining proper procedures and by simply submitting all transactions for authorization in a timely fashion.

The recommended steps to reduce or minimize the chargeback or fraud acti­ vities are: • validate card accounts prior to processing (check for expiry dates);

• ensure every transaction receives a valid authorization (approval) code; • immediately contact the customer to confirm or to obtain new billing in­formation in case of a declined trans­­action; • contact customer proactively before card expiry to update billing information; and • process cancellation requests as soon as they are received.

Moneris Solutions is committed to providing IBAO members fast and reliable payment processing and point-of-sale solutions for all credit and debit card payments. Take advantage of preferred pricing for IBAO members. Visit moneris.com/ibao for more information or call 1-866-467-9992 to discuss payment processing options.

July 2011 / The Ontario Broker

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Education Update

Greg Robertson Territory 10 Director, IBAO

Learning Without Borders The Education Department continues to listen to IBAO’s members. We have just completed our Affiliate President’s survey along with the Membership Education Survey. The results of these surveys are valuable in creating direction and guidance for the 2012 course curriculum.

So far this year, the Education Department has a few new additions we would like to highlight.

This summer, the Education Department is proud to announce the launch of the new Online Basic Broker Licensing Course for your RIBO Level 1. As we understand members may face time and geographical constraints, so we are offering this CONTRACT SURETY/IBAO size 3/2/11 updated online tool to help prepare you

for the exam. The course boasts a complete content update, new look and many features to maximize your learning experience. In addition to the content review and updates, the course will provide printable study checklists, exam preparation tips, and two new practice exams. To assist you while studying, feel free to print out pages and take notes online. All notes can be printed for your review prior to exiting the module. The photos, charts and tables have all been enhanced, and you will also find an automated glossary with key terms linked in the module. The course will contain a new flash player and mutable audio on every page to enhance your learning experience. This course will be provided to the membership for $399.00 providing you with 100 days of online access and text. For more information or registration, please visit www.ibao.org, click ‘Education,’ then ‘Online Learning’ and finally ‘Basic Broker Preparation Course.’

To continue the theme of online learning, IBAO will make a large addition to its current online library in July. IBAO has entered into a contract with The Insurance Brokers Association of Alberta for the distribution of its online video courses. Each module will place you in the field with experts to discuss various 4:03 of PMinsurance.

Page 1 Simply select the topic types

you need to study and a high definition video will bring the topic to light with real life examples. The visual examples will help confirm your understanding of the topic. This library will provide course content in personal lines, commercial lines and farming. The courses can be purchased individually or as a package.

Please stay tuned for the launch date and pricing. I encourage each and every broker to take a look at this product, as there is no better way to learn about different types of insurance products or brush up your current skills.

Even though we are providing more and more tools for you to learn online, make sure you keep the dates of October 19-21, 2011 open as we head towards our 91st Annual Convention in Toronto.

If you have any questions regarding the online basic broker license course or the online video library, please feel free to contact myself or one of the education staff members at IBAO.

To continue the theme of online learning, IBAO will make a large addition to its current online library in July.

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The Ontario Broker / July 2011

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Proud Supporter of Brokers Displaying this Symbol

Community View Where the Heart Is Omni Insurance Brokers of St. Thomas, Ont. generously donated magenta BIPPER blankets to the Violence Against Women Services, Elgin County. The donation was presented during the St. Thomas, Home, Garden and Outdoor Living Show, a large community event.

Front row, left to right: Judy Beacham; Lyn Charlton; Kate Delgado; Melanie Chase; and Megan Bartlett. Back row (l to r): Nancy White; Chris Noble; Meredith Webster; Willa Ryckman; Bob Brown; and Susan Robertson.

Everyone’s a Winner

Above and Beyond

Keil-Dadson Insurance Brokers Limited in Listowel, Ont. hosted its second annual Summertime BBQ in support of the Canadian Cancer Society. During the event, participants could contribute $2 to ‘spin to win’ a magenta BIPPER blanket. The event followed a donation of 50 of the blankets to Howick Township Fire Department and EmerLeft to right: Miles Dadson; Trish Fischer; Krista Dunbar; Tim Keil; gency Planning Centre.

Chief Bill Doig; Meghan Reeves; Jason Snider; and Josh Keil.

The Beyond Insurance Brokers Team went above and beyond their stated goal and raised a little more than $1,600 for Kids Sake, in support of Big Brothers, Big Sisters Oshawa-Whitby.

Left to right: Jennifer Bernier; Debbie Thompson; Judy Bell; Shelley Harrop; and Sara Urbanowicz.

Sweet Harmony The Harmony for Youth Hot Dog Day was a success, with more than 200 people turning up, despite the rain. Callister Musico Insurance Group and Dundee Wealth teamed up to raise $1,200, which was donated along with 50 Bipper Blankets to Sarnia’s Chamber of Commerce’s Business After Five program.

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Left to right: Paul Callister; Joanne KlaukeLaBelle; and Craig R. Musico.

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For details call 1-866-467-9992 or visit moneris.com/ibao Certain terms and conditions apply. Offer available from April 1st, 2011 to August 31st, 2011. Please visit moneris.com/ibao for complete details and restrictions regarding offer eligibility. ®Moneris, Moneris Solutions and the Moneris Solutions design are registered trademarks of Moneris Solutions Corporation. All other marks and registered trademarks are those of their respective owners.

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July 2011 / The Ontario Broker

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