The Ontario Broker December 2013

THE ONTARIO BROKER

THE OFFICIAL PUBLICATION OF THE INSURANCE BROKERS ASSOCIATION OF ONTARIO (IBAO) December 2013

CHARITABLE GIVING

heart of the community 02 chairman’s message 04 hr strategies 05 ceo corner 06 member benefits

07 ibri update 08 charitable giving 10 tax-saving tips 11 succession planning

12 ibao update 13 Communications Strategies 14 community view

Chairman’s Message The Official Publication of the Insurance Brokers Association of Ontario (IBAO) Published by

Editor Angela Stelmakowich astelmakowich@canadianunderwriter.ca 416-510-6793

Parting Thoughts

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 Account Manager Elliot Ford eford@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, 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 Ashley Hunking Marketing Coordinator ahunking@ibao.on.ca

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The Ontario Broker / December 2013

Rick Orr Chairman IBAO Julius Caesar or Justin Bieber? Initially, I thought it might be appropriate to finish with a quote from either Stratford figure, but in the end, I decided to settle on Ferris Bueller: “It’s over — go home!”

This is my last article for The Ontario Broker magazine and one of the last things I will be doing as retiring Chairman of the Board. As such, I would like to leave Ontario brokers with a few parting thoughts.

USE AVAILABLE TECHNOLOGY You’re still not using eDocs? eDocs was a huge investment of both time and capital by companies and industry bodies, namely IBAO, the Insurance Brokers Association of Canada and the Centre for Study of Insurance Operations (CSIO). All of these organizations collaborated to deliver an electronic solution for every broker

and almost every carrier in the industry.

There are real savings to brokers by using eDocs, yet only 30% of brokerages have implemented the solution. Clearly, this is a disappointing result.

We cannot keep asking insurers to build us tools and then not use them. eDocs was our request. We went to insurers and asked — even demanded — that they build it. Now we need to use it.

Those who have made the transition to eDocs have recognized its merits exponentially. It saves time, makes us more accurate and efficient, and allows us to allocate staff to customerfacing functions rather than waste staff time in company portals.

Carriers have been asking: “Can we shut off the paper yet?” Is there a need for them to continue to send a broker copy of the policy? IBAO’s message is about to be: Go Ahead.

Shut it Off! The technology now exists to make the entire channel more efficient. It needs to be used. If we can reduce the expense ratios of our carriers, they can reduce their rates and be more competitive against the directs. Where’s the downside in that?

Personal lines dec pages are just the start. Over time, you will see anything that now comes to you as paper start being transmitted by eDocs. This is positive.

Imagine your courier being attached directly to your

client screen automatically!

Embrace it now, because it will grow.

If you want more information about eDocs, call the IBAO or call any broker who is using the solution (including me! I’d love to stay in touch). We would all be happy to share our good news stories.

FOCUS ON COLLABORATION We need to work together.

At the IBAO Convention in October, I had the opportunity to say a few parting words. I spoke about the successes at IBAO and the industry over the last few years. A lot has changed to make us more successful.

Collaboration was added to the IBAO mission statement two years ago and both the industry and the association embraced that change. People are more willing to approach the IBAO with solutions and IBAO is more willing to work with others to build solutions.

There has been not just a strategic change, but a cultural change, and as a business guru once said, “Culture eats strategy for breakfast every day.”

That said, we still have plenty of work to do!

Companies need to recognize that they need to compete on service, product and pricing, not on business processes. Process is just a means for brokers to get our job done. If we can create a great process for one company, let’s make it available for all.

CEO’s Schedule: January 15 Michael Prue Fundraiser January 19-21 IBAO Strategic Planning Session January 23 Cookson Walker Crystal Ball THE NEXT E Our next milestone is to figure out how best to deliver an electronic document to the consumer, e-Delivery, and we need to do it as an industry. Just like Canada Post is not a competitive advantage to our brokerages, neither is e-Delivery.

We all send our mail, but as an industry, we need to figure out a way to deliver that mail differently — it’s just a process that makes us all more competitive.

CSIO has been working on an e-Signature solution.

Some carriers are already out promoting their own solution. Let’s make sure the solution that brokers adopt is one that will work for all of our markets.

We need to obtain signatures from all of our clients, so let’s find a solution that

works for all of our carriers.

That’s a competitive advantage!

We have many more collaborative efficiencies to tackle, from online marketing to consumer education about water damage and telematics. You would have heard at Convention, “multiple telematics solutions are worse than multiple portals.” We have to work together.

STRENGTH IN NUMBERS Together, we will win; individually, we will fail.

This phrase still holds true today — and will continue to do so for years going forward. We have to figure out a better way to get along and find industry solutions, thereby allowing companies to compete on service, product and pricing.

Thank you for the privilege of allowing me to serve you on your executive. You truly do get more out of the experience than you put into it.

Thank you as well for presenting me with the Wallace E. Wood memorial award. It is a real honour to be recognized among the group of past recipients.

I am looking forward to seeing the solutions that the very capable staff and board of IBAO — your board — will deliver over the coming years. The future of the broker is bright for those who choose to embrace the opportunity.

As Ferris Bueller said: “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.”

Merry Christmas and a Happy New Year.

January 25-28 IBAC Meetings January 28 TIC Annual President’s Reception January 30 CSAE Annual Summit President’s Schedule: January 9 IBAC Governance Committee January 14 IBAO Executive Meeting January 15 Michael Prue Fundraiser January 16 Insurance Brokers Association of Durham Region Luncheon January 17 IBAO Long-Range Planning Meetings January 19-21 IBAO Long-Range Planning Meetings January 25-28 IBAC Board/Committee Meetings January 28 TIC Annual President’s Reception

EXPERTISE… CG&B offers a complete line of asset protection for your brokerage.

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We are the Professional Liability Program Administrator for IBAO and IBAN.

December 2013 / The Ontario Broker

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HR Strategies

Teresa Landry Human Resources Manager ENGAGE HR

Keeping Work Harassment at Bay Bill 168 on workplace violence and harassment was introduced April 20, 2009 and took effect about a year later on June 15, 2010. Since then, related complaints have proliferated — or so it may seem to some. What constitutes harassment and what does not?

Today more than ever, being adept at preventing or quickly resolving workplace conflicts is a business imperative for two important reasons. First, unresolved conflicts eventually end up meeting the criteria to establish harassment, leading to complaints, which are disruptive and costly to formally address. Second, a positive workplace environment is a major source of competitive advantage, one highly co-related to the bottom line and the success of your brokerage. defining harassment Harassment has been defined as the improper conduct by an individual that is directed at, and offensive to, another individual in the workplace — including at any event or any location related to work — and that the individual knew or ought reasonably to have known would cause offence or harm. It comprises objectionable act(s), comment(s) or display(s) that demean, belittle or cause personal humiliation or embarrassment, and any act of intimidation or threat. It also includes harassment within the meaning of Ontario’s Human Rights Code (i.e. based on protected grounds such as age, ancestry, colour, race, citizenship, ethnic origin, place of origin, disability, family status, marital status, gender identify, 04

The Ontario Broker / December 2013

gender expression, record of offences, sex and sexual orientation.

There are a number of criteria that must be met to establish whether or not harassment took place. As a general rule, more than one act or event will need to take place in order to constitute harassment. Taken individually, this act or event need not constitute harassment; it is the repetition that generates the harassment. In other words, harassment consists of repeated and persistent behaviours towards an individual to torment, undermine, frustrate or provoke a reaction from that person or create an unpleasant workplace environment.

Each behaviour viewed individually may seem less offensive; it is the synergy and repetitive characteristic of the behaviours that produce harmful effects.

But there are instances when one single incident can constitute harassment — for example when it is demonstrated the incident was severe and had a significant and lasting psychological impact on the complainant.

It should be noted that the standards used to determine a “severe, significant and lasting” psychological impact should be set at a fairly high threshold. It is not a common occurrence for someone to undergo severe, significant and lasting psychological damage. Each case is unique and should be examined in its own context and according to the surrounding circumstances as a whole. For the criteria of harassment to be met, the impact on the complainant should be significant as harassment is a very serious matter.

GAINING PERSPECTIVE To help put this in perspective, consider two fairly common workplace scenarios.

Two employees are engaged in a disagreement at work. The disagreement escalates to the point where one party is visibly upset, raises his/her voice, stops listening, speaks over the other party, and says offensive comments that may hurt the other party’s feelings, or make him or her feel offended, demeaned, belittled, humiliated, embarrassed, insulted, undermined, frustrated, intimidated or threatened. This common workplace scenario, on its own, would not likely constitute harassment under the law, but

would likely be interpreted as a workplace conflict. A conflict can quickly turn into harassment if no action is taken to resolve it. It should be mentioned here that the longer it takes to address and resolve a conflict at work, the higher the chances of a complaint being lodged. Conflicts need to be managed expeditiously.

This simple but common example highlights the need to have a discussion take place with one or both employees regarding expectations in terms of performance and/or behaviour, acceptable workplace communication, team work and collaboration, to name a few. Failure to achieve the desired change or improvement in performance or behaviour, progressive disciplinary measures should be undertaken, in a timely fashion, to prevent an eventual complaint.

Coaching or training in the areas of communication and interpersonal skills, respectful workplace, diversity and conflict resolution would also better equip a manager or supervisor to deal with conflicts or with different/difficult personalities on the job. Coaching or training can prepare managers or supervisors to deliver difficult messages, provide effective feedback or have a difficult conversation (related to performance or behaviour, for instance) and allow them to quickly intervene in a conflict situation, or immediately thereafter, to prevent the conflict from continuing and/or escalating to the point where one party feels he or she has no other option but to resign or file a written complaint for harassment.

An effective workplace harassment prevention policy and proper training will help employees differentiate between what constitutes harassment and what does not. An internal workplace conflict and/or complaint resolution process will also be critical to inform and guide employees on how to deal with a conflict or a disagreement at work.

If you want to discuss coaching or training on any of the aforementioned issues — or need any help to draft or revise policies or an internal complaint resolution process — consider taking advantage of your complimentary, one-hour IBAO member benefit call this month to the ENGAGE Advantage Helpdesk at 905/306-8111, Ext. 240.

CEO Corner

Bob Tisdale President and COO Pembridge Insurance Company

The Evolution of Communication History has always been an interest of mine, particularly how well we learn from rituals that do not advance with time. Regardless of how things change or advance, sometimes people do not advance alongside.

Change can be challenging and people can remain stuck in an era simply because that was the way things “have always been done.” Communication rituals also fit into this theme.

However, more recently I have come to realize that communication rituals are changing quickly. Our old ways of strict styling rules and forms of communication are not only outdated, they are less productive than the new emerging methods.

Imagine, for example, that you order something in a restaurant in English. You have already spoken to your server in this language so you are surprised by his response in Greek. Confused, you repeat your request more slowly, to which the server responds this time in Mandarin.

You are now frustrated because you know the server speaks English, but for some reason prefers to communicate in a language unfamiliar to you. After a third attempt of persistent communication failure, frustrated, you give up.

Despite clear signalling of your communication style or preference when you asked a question in English, you do not feel your signal has been received, and you are not certain how to get the response you are looking for.

Now, apply this same scenario to our businesses. A consumer sends a request and asks for a response by e-mail. You

telephone them. A consumer sends a text asking for a response by text, but you request an in-person meeting.

In each of these cases there is a good chance that the communication could be successful as it is not a linguistic issue.

But in reality, the fundamental principle remains the same in both scenarios: Are you fully understanding and meeting your customers’ communication expectations when you do not respect their communication preferences? Are you listening for their “communication styles”? If not, how long will it be before your customer finds someone else who does respect his or her communication preference?

Communication styles and preferences differ among individuals. The secret is to recognize these differences and adapt to them. The difference between good and great customer service is the ability to deliver on a customer-centric proposition.

A customer centric proposition puts the needs and preferences of the customer at the forefront. These needs and preferences are not only concerned with product, price and hours of operation — they go much deeper.

Whatever the reason for his or her preference is irrelevant. What is most important is for you to be flexible and communicate in the preferred method.

WHAT, HOW AND WHEN Successful customer service comes from understanding what the customer wants, how they want it and when they want it, and then channelling your resources to respond. This can add cost or complexity, but done effectively, will pay for itself through the business response and referrals of your satisfied customers.

Each segment of consumers is influenced by different things. For the older generations with their technology “accent”, they may prefer face-to-face communication. Sending them e-mails and texts may be like talking to them in a language with which they are not fluent or comfortable.

Comprehending what has influenced the specific needs of individuals will separate those who succeed in communications across generations from those who limit themselves, perhaps to just one generation.

Many, many years ago, our ancestors communicated in styles unfamiliar to us.

Our use of the English language has evolved from the days of thy, thou and thee.

If Shakespeare were alive today, he might not approve. But to us, his preferences are irrelevant because we have shaped communication and language in ways that are comfortable to us.

Older generations may also not approve of how younger generations communicate. However, while change is difficult, in some circumstances and with some customers it is perfectly acceptable if “r” is replacing “are” when a text is received. Once you comprehend text language, you soon realize that it is a much more productive way to communicate than writing things out long hand.

Effective communication is speaking the same language, comprehending and responding appropriately. The next time your customer says just text me, do it and be risky; use r, u, btw, lol, etc.

They won’t care about style. Instead they will appreciate that you listened and you respected their preferences.

Through adaptation to changing technology and communication preferences, brokers will remain the preferred distribution channel for obtaining insurance.

Pembridge is a proud supporter of the broker distribution channel. We recognize that our success is intertwined with the ability of brokers to consistently make themselves relevant to their customers.

Part of this adaptation is recognizing that our past is not our future. Technology has revolutionized how we interact and it is on the cusp of further evolution.

Recognizing that future generations will communicate differently is a foundational success factor on which we will all need to deliver. At the same time, as we evolve, we must respect the preferences of all consumers across the multitude of generations.

Success will be dependent upon a flexible approach; respecting individual needs and preferences regardless of how much they may differ from personal preferences. Failure to deliver in this regard because we prefer “the way things were” brings us back to Shakespeare; still known, but less understood, less relevant and now only a part of history.

December 2013 / The Ontario Broker

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member benefits set aside for uncovered health care costs.

One of the problems is that too many Canadians underestimate related health costs, especially when it comes to prescription drugs and other health services.

The successful treatment of many serious illnesses often depends on new biological medications that are not covered by many insurers or government plans.

Gus Pappas Benefits Coordinator BCI Inc.

Recover on Your Own Terms Far too many Canadians underestimate the out-of pocket health costs when faced with a major illness.

While most people would agree a serious health event such as cancer or a stroke could impact their finances, only 13% of surveyed individuals said they had money

out of pocket Even when treatments and medications are covered under company health plans, most people still must pay a percentage of the cost themselves. Yet only 54% of surveyed individuals understood to what extent they would be expected to pay some amount out-of-pocket.

Critical illness insurance provides a tax-free cash payment to spend any way a person needs. It was first developed by Dr. Marius Barnard — brother of Christian Barnard, the doctor who performed the first successful open heart transplant

The entire executive team at Totten Insurance Group (TIG), Canada’s leading MGA provider of niche products is pleased to announce that Heather Masterson, President & CEO has been awarded as one of the Business Insurance 2013 Women To Watch.

The Women To Watch feature spotlights 25 women who are doing outstanding work in the industry and exemplify a certain criteria, including: recent professional achievements, contributions to the advancement of women in business and influence on the maketplace.

Congratulations Heather!

inquiries@tottengroup.com

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The Ontario Broker / December 2013

1.888.868.8367

www.tottengroup.com

surgery — in South Africa in 1983.

Dr. Barnard saw a need for insurance that paid a “living benefit” to those who survived a major illness to offset lost income and to pay additional expenses.

A critical illness insurance plan pays a lump sum, tax-free amount upon the diagnosis and survival for 30 days of one of the many illnesses covered under such plans. The three most common medical conditions in Canada — cancer, heart attack and stroke — account for about 85% of all critical illness insurance claims.

The scope of covered benefits continues to expand, with plans offered today covering as many as 25 illnesses and can also provide an early stage benefit for cancer or heart disease.

The bad news is that one in nine women will be diagnosed with breast cancer before the age of 65, one in four Canadians will suffer some form of heart disease, and one in 20 will have a stroke.

The good news is that most will survive — cancer is beaten 55% of the time, people survive an initial heart attack 82% of the time and stroke victims survive 75% of the time.

While the early detection and medical treatment for many critical illnesses is improving, the overall incidence of these conditions is rising. Far too often, there appears to be an underlying correlation between the incidence of a critical illness and recovery with other external stresses, including work, finances and family. money provides choicE Having money means having choices — choices such as taking time off work if needed, or spending time on yourself or with family to aid recovery. A serious illness, which can last for months or years, means financial backing is critical to protect oneself, one’s family, and one’s money.

Disability plans typically pay 66.7% of someone’s income, often just enough to cover regular bills and often meaning a person must wait several weeks before getting a benefit. Critical illness insurance provides resources necessary to allow people to recover their terms, removing the added stress of financial obligations.

Would you rather lose your mortgage or lose your house? Your health is your most important asset!

IBRI Update

Kevin Warren Vice President, Operations Independent Broker Resources Inc.

The War for Talent: Are You Ready?

A year-long study by McKinsey Co. suggests the most important company resource over the next 20 years will be talent. Yet, the resource is in short supply.

The search for the best and the brightest will become a constant, costly battle, where smart, young, sophisticated busi-

ness people who are technologically literate, globally astute and operationally agile will be looking for the best industry to make their careers.

That is why IBRI has created a niche job board, Career Centre, that will provide a solid career pipeline for today’s top insurance talent, as well as protect our emerging leaders from fierce competing industries wanting to steal them away.

We do not have to look very far to know that over the next 10 years, many of the baby boomer generation will be retiring. The insurance industry, like all industries, will be affected by this shift.

To keep the pipeline full of talented people, Career Centre will target our Generation Y, Echo Boomers or Millenniums, who range in age today from 19 to 36 years old. We also have set our sights on Generation Z, especially the ones who are entering college and university.

With the support of the IBAO and our Education Department, all new and past

students of the IBAO School of Insurance will have access to post their resumes on the site. Career Centre will allow the job seeker to browse and apply for career opportunities at no cost.

Career Centre will also be a great place for employers to post a job. There was a time when leading organizations recruited top-level managers only from within. In the new economy, organizations are having to go outside for talent.

Whether it is career advancement, attraction of new talent or reenergizing what current employees do, Career Centre will be the first and best choice for employers and job seekers in the insurance industry across Canada.

At IBRI, our mandate is to find ways to support the long-term sustainability of the broker channel. With IBAO members receiving significant posting discounts, I would encourage you to visit www.myinsurancejobs.ca or www.ibao.org to have a look at our one-stop job board.

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charitable giving Each year, IBAO purchases several thousand magenta Bipper blankets for our Awareness Day program.

This program allows brokers to donate 75 blankets to a cause about which they are truly passionate.

We are always touched by the stories our brokers share with us because we know that not only did their efforts have a positive impact on their respective communities — they also had a blast! To us, that is what makes the broker channel unique: we are people; we have a face (and big hearts!), not only to our policyholders, but in our communities as well.

These small acts of kindness go a long way, and IBAO is here to support your generosity. So go ahead.

Give us a call and book your 2014 Awareness Day.

Left to right: Insurance Brokers Association of Brant’s annual Charity Golf Classic raised $12,000 for Stedman Community Hospice. Gloria Keene of Brant Mutual, Jack Ronson of Crawford Adjusters, Olga Consorti of Stedman Community Hospice, Nancy Thompson of Neziol Insurance Group, Nada Askic of Winmar Brantford, and Peter McDowell of Paul Davis Systems.

Left to right: Meester Insurance raised $850 for Community Living in two hours at its Community BBQ in Smithville. Brian Vanderhout, owner of Meester Insurance Centre, presents Deb Grieve-Knight, coordinator of Community Living, with both a cheque and blankets.

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The Ontario Broker / December 2013

Left to right: The Burlington Affiliate’s Amazing Bed Race on September 22 raised $6,700 for the Joseph Brant Foundation.

Paul Preston, Susan Preston, Mark Preston, Mike Johnson, Alyson Johnson and Scott Morgan from Preston Insurance Services, Chris Coons from David H. Coons, and John Thorpe from Utter Morris.

Left to right: Davidson de Laplante Insurance Brokers Ltd. (DDLP) in Timmins provided blankets to the Yo Mobile, a non-profit organization that twice weekly provides the homeless with a warm meal, drink and warm clothing. Mario Dussault of Yo Mobile, and Lise Dicaire, Lisa Hudon and Jamie Roach of DDLP.

Left to right: St. Thomas Elgin Brokers Association (STEIBA) partnered with Big Brothers & Sisters of Elgin County with its Curl for the Kids curling Funspiel. STEIBA donated blankets to Victim Services of Elgin County. STEIBA chairman Matt Sharpe, Brian Helmer, chair of Board Victim Services, STEIBA president Crystal Underhill, Natalie Redman, Karen McCaw, executive director of Victim Services Elgin, and Jennifer Hillier, secretary of STEIBA.

Left to right: The Woodstock branch of Cowan Insurance Group Ltd. donated 75 blankets to Sakura House. Gwen Raymond, Tracey Price, Diana Fonger, Kelly Morrison, Sakura House representative, Brenda Barham and Tina Pacheco.

Utter Morris Insurance Brokers Ltd. in Burlington, embroidered and donated this blanket to long-standing employee, Natalie Thomson, to keep her cozy during her treatments. She recently said it has been a long and difficult year, but with the support of her Utter Morris “Family,” she is expected to return in the spring of 2014.

Left to right: Ronald McDonald House Hamilton and Dalton Timmis Insurance Group made their official announcement on plans to build a Serenity Garden for families with sick children staying at Ronald McDonald House in Hamilton. Through donations from Aviva Canada, Intact Insurance, Northbridge Insurance, Pembridge Insurance, Royal Sun Alliance, Unica Insurance, Zurich Insurance, and the Dalton Timmis partners and staff, combined with staff fundraising initiatives, Dalton Timmis was able to present an initial cheque of $172,714.

Left to right: First Durham Insurance & Financial Ltd. announces that 12-year-old Jillian Smigielski of Bowmanville Ontario will be the first recipient of their Possibilities Grant — the first $5,000 of a five-year, $25,000 commitment made by First Durham to families with children who have disabilities. Harry Yetman, Jillian Smigielski and Bryan Yetman.

Bryson & Associates in Ajax on their Annual Pumpkin Day raised $2,400 for Community Care Durham’s COPE Mental Health Program.

December 2013 / The Ontario Broker

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Tax-Saving tips

Daniel Wilson, CPA, CA Tax Manager BDO Canada LLP

Year-end Tax Strategies 2013 is quickly drawing to a close, but there is still time to implement tax strategies that can minimize the tax bill for both your business and family.

The following are potentially rewarding tips for ineligible dividends, capital gains, charitable donations and medical expenses.

INELIGIBLE DIVIDENDS The federal and provincial governments recently implemented changes that will result in an increase in the tax rate on ineligible dividends (refers to dividends paid from income taxed at the small business rate) paid after 2013.

If you are anticipating paying an ineligible dividend in the very near future, consider whether or not it would be beneficial to pay the dividend before the end of the year — rather than in 2014 when the applicable tax rates will be higher.

Ontario residents with taxable income in excess of $509,000 will see the combined federal and Ontario tax rate for ineligible dividends increase from 36.47% in 2013 to 40.13% in 2014.

Ontario residents with taxable income between $135,055 and $509,000 will see the combined federal and Ontario tax rate for ineligible dividends increase from 32.57% in 2013 to 36.45% in 2014.

CAPITAL GAINS A lifetime capital gains exemption of $750,000 is available to Canadian resident individuals on the disposition of qualified small business corporation (QSBC) shares. This exemption allows as much as $750,000 of capital gains on QSBC shares to be received tax-free.

Beginning in 2014, the lifetime capital gains exemption will increase to $800,000 and be indexed to inflation for subsequent taxation years. If you are anticipating selling QSBC shares with a capital gain in excess of $750,000, consider if it would be better to delay the sale until 2014 to take advantage of the increase in the exemption.

CHARITABLE DONATIONS The federal government has introduced an enhancement to the existing charitable donation tax credit for donations made between March 21, 2013 and December 31, 2017 by a first-time donor.

An individual would be considered a first-time donor if neither the individual nor the individual’s spouse or commonlaw partner has claimed either of the charitable donation tax credit or the first-time donor credit in any year after 2007. A first-time donor would be entitled to an additional 25% credit on the first $1,000 of monetary donations. The super credit may be claimed only once between the 2013 and 2017 taxation years.

MEDICAL EXPENSES A person may claim a tax credit for eligible medical expenses that exceed $2,152 or 3% of net income (whichever is less). If your medical expenses for the current year are already in excess of the threshold, consider paying for additional expenses now that are expected to arise in future.

Although most medical expenses are only paid as the medical services or supplies are required, some types of expenses can be paid for in advance, such as glasses or contacts. You may want to consider this strategy if you anticipate having a lower amount of medical expenses in 2014 that will fall below the threshold listed above.

If paying for a major expense on an instalment basis (like braces for a child), consider paying the balance owing early to maximize the medical expense claim.

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The Ontario Broker / December 2013

SUCCESSION planning

Susan Latremoille Director, Wealth Management Richardson GMP Limited

Your Sudden Wealth... and Your Legacy After more than 30 years of helping clients manage and grow their financial wealth, I have discovered that the place of money in a person’s life indicates a lot about how that individual lives his or her life. The role of a financial advisor is to preserve wealth that clients have accumulated and to increase that wealth over time.

Some clients have earned their money by realizing entrepreneurial dreams — starting a business, investing their lives in that business, and having it thrive. These businesses provided a comfortable living, and when business assets were finally sold, clients received a significant sum that needed to be invested and protected.

People see that their financial plans and their life plans should be aligned.

That is another role of a financial advisor: to assist clients with life planning by helping them define what is important to them, understanding their values, goals and dreams, and then structuring their financial affairs in a way that allows them to pursue that passion in a responsible and intentional way.

The idea is to help clients determine how their wealth will shape their lives and how their lives will shape what their wealth can accomplish.

I have learned it is important for people to live well — to enjoy the rewards of their hard work and to have the kind of life that serves both their needs and passions. For some, living well means having enough money to give some of

it away: for example, being able to travel or have more than one pair of eyeglasses.

For others, it means being healthy, enjoying work instead of dreading it, and having satisfying relationships with family and friends. It means finally banishing the worry that kept them on edge and sometimes left them sleepless.

Living well is physical, mental, emotional, spiritual and financial comfort.

Every person leaves some kind of legacy. It is left in the hearts and minds and memories of their children, their grandchildren and all the people whose lives they have touched. A mark is left in every home they have built, in every community where they have lived and in everything they have accomplished.

A person’s legacy represents his or her whole life; it is more than the physical property and financial assets amassed during that lifetime. Some people leave legacies rich with meaning and impact; others leave legacies of pain and strife.

The biggest lesson I have learned is that those who leave the most valuable legacies are the ones who have paid attention to their passion and who have been consistently intentional in how they want to be remembered. I have also learned each of us has the opportunity to choose our own particular way.

People choose how they would like to leave their legacy in the same way they choose how they want to give back. Most start with their families, namely their children and grandchildren. When they have provided for both the present and future needs of their families, they look at how they can contribute to other people in their lives and in their communities.

They may contribute to education, health care, the environment or cultural agencies. And then they may look to larger communities: to their town or city, their province, the nation and, finally, the international community.

They leave formal legacies through wills and philanthropic giving, and they leave informal legacies through the way they lived their lives. People want to make a difference in whatever way they can.

Witness the legacy that Terry Fox left when he ran his grueling course across the country to raise money for cancer research, the tenacity of those who fought to preserve the Rouge River watershed from encroaching development, and the Amber Alert that mobilizes a nation to be on the watch for an abducted child.

Your life is your legacy. No matter what you plan or intend or forecast or dream, what actually happens is what will be written in the minds and hearts of the people left behind. The happy challenge for me is helping my clients articulate and structure their legacy to make their lives fuller and happier.

We all leave a legacy. What kind of legacy do you want to leave? What will people say when they remember you?

These ideas are more fully explained in the book, The Rich Life — Managing Wealth and Purpose, by Susan Latremoille.

For a complimentary copy, please call Sandra Balind at 416/969-3051.

This publication is intended for informational purposes only and is not intended to constitute investment, financial, legal or tax advice. You should seek advice regarding your particular circumstance from your personal tax and/or legal advisors.

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December 2013 / The Ontario Broker

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ibao update business improvement if you aren’t going to take advantage of the numerous opportunities available?

Action: The IBAO road show will be coming to a community near you. Join us in 2014 as we discuss and educate on all developments and opportunities available for IBAO members.

Brett Boadway Director of Broker Relations & Communications Insurance Brokers Association Ontario

Lose Weight… and Other Resolutions for Your Brokerage This season is the perfect time of year to reflect and improve — personally and professionally.

In our personal lives, we all make the cliché list of resolutions. But what if we applied those same resolutions to our businesses? Here are a few resolutions brokerages should consider.

1. Learn Something New: Telematics.

Mobile. Web. Social Media. It’s all happening quickly and your brokerage needs you — yes, you — to lead them through innovation. Why continue talking about

2. Spend More Time With Those You Love: Today’s consumer looks for deeper relationships. Given how hectic lives have become, we all crave personal, genuine relationships from everyone in our lives — our hairdresser, accountant, mech­anic… and, of course, our insurance broker. Every time you connect with your client (for renewal, for updates, for whatever it may be) it’s an opportunity to engage with your client in a meaningful way.

Action: Check out IBAO’s Consumer Contact Strategy For Brokers. We’ve done the legwork for you. It’s the inspiration you need to get lovin’.

3. Lose Weight: Turn off the paper in your office by introducing eDocs into your workflow. It’s time. Though the process of the transition may seem daunting, like many resolutions, sometimes it’s just the starting that is difficult. eDocs will make you more accurate and efficient.

Free up your staff’s time so that they can

produce more business and replace those filing cabinets with art.

Action: IBAO would be happy to set you up with a broker mentor — someone who has gone through the process change before and can be your security blanket during the transition.

4. Invest More: Recognize the importance of human capital. Companies of all sizes are getting hit with the naked truth that talent management is critical to competing. Propel the energy behind your people. An investment in them will bring the highest return.

Action: The IBAO School of Insurance offers programs for brokers at all life stages. Sharpen your technical skills.

Polish your soft skill. Or kick it into fifth gear and attend the Beyond Best in Class program: It’s the brokerage makeover you’ve been needing — all wrapped up with a bow.

5. Volunteer: Get in touch with your local broker affiliate or your community leaders and get inspired to showcase the value of brokers: members of the community.

Action: Ask us about broker-themed giveaways, Bipper mascots and posters.

We have them. You can use them!

Wishing you and yours a safe and merry holiday, from all of us at the IBAO.

“Get all the riGht connections!”

2014 Ontario Insurance Directory

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12

The Ontario Broker / December 2013

1-800-668-2374

Or order online @ www.bit.ly/oidorder

Completely Updated for 2014– over 10,000 changes!

communications strategies

Lisa Leitch Sales Strategist, Speaker and Coach Teneo Results

Twists and Turns of Sales Conversations The insurance sales process has become a sales pretzel! With the increase in competition, more demanding customers and more ways than ever to get insurance “quotes”, the insurance sales process has become a sales pretzel — with twists and turns that send brokers into back flips to secure more business.

To understand the sales process, consider the 5 Purposeful Sales Conversations: 1) the “self” conversation; 2) the “compelling reason to meet” conversation; 3) the “purposeful” sales conversation;

4) the “solutions” conversation; and 5) the “follow-up” conversation.

If a broker is lucky — and really good at getting the attention of customers — he or she might be able to move along these steps.

But consider the new reality: the customer is giving brokers all the right signals, brokers have provided them with a competitive proposal, but then something happens. Suddenly, customers are not returning broker calls or they are asking for different coverage options.

In response to this, brokers may find themselves re-doing their steps, their proposals, and their conversations — yet being no closer to “Yes!” As a broker, can you relate? If so, you are not alone — and this is not happening in just the insurance industry. We work with many sales teams in several different industries and companies, and they are all facing the twisted sales pretzel: • customers are not comparing the same insurance coverage, but are sending brokers back to compare similar coverage and pricing; and • insurance brokers are providing a more trusted insurance advisor approach, but customers/prospects are looking for the best price from direct writers.

How do you begin to straighten out

Asking better questions and providing advice is the key to detangling the sales pretzel. the sales pretzel? As trusted insurance advisors, brokers can ask consultative questions. This will help them more fully understand their customers’ insurance needs and goals, and ultimately, provide the insurance solutions that customers are looking for.

Dig deep! Most customers are not sure what they need in coverage until they experience a claim. Here is an opportunity for independent insurance brokers to “educate and advise” customers up front — which will earn their trust and their business.

Asking better questions and providing advice is the key to detangling the complicated sales pretzel without doing back flips over your competitors’ quotes.

Lisa Leitch is a Sales Strategist, Speaker and Coach with Teneo Results, a CPSA Training Partner. Teneo Results facilitated workshops — sponsored by Economical Insurance and called Provide More Value to Your Clients with a Winning Sales Strategy — throughout Ontario this past April and May.

BROKERS – looking for markets for your specialty, niche and non-standard risks?

Find them in the Insurance Marketer! www.insurancemarketer.com We’ve got you covered in the…

Published annually in July by Canadian Underwriter magazine, the extremely popular Insurance Marketer is used daily by brokers across Canada.

Both in-print and online at InsuranceMarketer.com, the Insurance Marketer is The Source to assist you in finding a market for even the most unique risk!

Published by:

December 2013 / The Ontario Broker

13

Community View Scoring for the Community ...

See Left: Quinte West Warriors (in green), Quinte West Stingrays (in grey), and Jonathon Deery (no helmet) of Quinte West Minor Hockey. Partnered with Whitley Insurance & Financial Services, represented by David Woodward (in orange).

Left to right: David Elliott of Elliott Insurance Services, as well as Kolton Strong and Amy Eriksson, both of Port Hope Minor Hockey.

Left to right: Matt Reddon of Craig McDonald Reddon Insurance Brokers Ltd., Tom Cannon of the Saugeen Shores Minor Hockey Asso­ciation, and Heather Terwoord of Craig McDonald Reddon Insurance Brokers Ltd.

Left to right: Glenn McIntyre of the Brampton Youth Hockey Association, as well as Al McClelland and Patrick McClelland, both of McClelland Insurance Brokers.

Re-energize, Refocus, Realign If a serious illness interrupts your life, don’t let worries about money get in the way of getting better. Critical Illness Insurance provides the solution.

Exclusive time limited offer for IBAO member brokerage firm employees and their spouses.

Up to $50,000 Guarunteed Acceptance Critical Illness Insurance Apply by December 31st 2013 online at www.solutioninsurance.com/ibao

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The Ontario Broker / December 2013

Insurance-Canada.ca

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13-11-12 12:26 PM

Noah Dam of the Unionville Minor Hockey Association. Partnered with L.D. Dermody Insurance Brokers (1982) Inc.

Another year stronger “At Aviva, we put people first. From our valued broker partners to the families and businesses we serve, we strive to do the little things right each and every day.

This year, we continued to listen, and responded with even more for you and your customers. We delivered on our promise to give our broker partners a competitive advantage in the marketplace with new personal lines products, and developed robust retention strategies that will help our industry adapt and succeed long-term.

We also maintained our focus on our commercial lines sales and service proposition and are working through the steps you’ve told us are required to get the experience right for you and your customers.

In claims, we continued to provide customers with responsive, expert service – exemplified through our customer-focused response to two of the largest catastrophe claims events in Canadian history.

Together with you, our broker partners, we made 2013 another successful year.

From all of us at Aviva Canada – thank you.

We look forward to working with you to protect Canadian families and businesses in 2014.”

Greg Somerville President and CEO, Aviva Canada

AvivaPartner.ca Home | Auto | Leisure & Lifestyle | Business | Group | Surety *Aviva and the Aviva logo are trademarks used under license by the licensor.

December 2013 / The Ontario Broker

15

IBAO School of Insurance EDUCATION FOR BROKERS BY BROKERS

In 2013, IBAO President Debbie Thompson led the way with the theme OUR VISION, OUR BRAND, OUR STRENGTH. We supported this theme by offering a spectrum of training to…

Understand our Vision: ◊ Managing Clients through Strategic Communications ◊ Providing More Value to Clients with Winning Sales Strategies

Promote our Brand: ◊ Social Media Workshops

Build our Strength: ◊ Connecting with the 21st Century Consumer ◊ National Designation/Certification Programs

In 2014, incoming IBAO President Chris Floyd’s theme will be GETTING READY FOR TOMORROW TODAY. We’ll carry this theme by…

Leveraging Technology: ◊ Understanding Telematics Roadshow ◊ CandyBox Marketing Digital/Social Media Tour

Developing the Team: ◊ Coaching for Success ◊ Cultivating your Personal Brand ◊ Customer Service Certification Programs

Enhancing Expertise: ◊ National Designation/Certification Programs ◊ Product Training

We’ll continue building our knowledge and preparing for tomorrow today, leading you to a more profitable brokerage.

GET READY. (Stay tuned for details...)