The Ontario Broker July 2014

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BROKER July 2014

IBAO BOARD MAKING A SPLASH

“THE SWIMSUIT ISSUE”

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ASSOCIATION NEWS YBC UPDATE territory UPDATE CEO CORNER GROUP BENEFITS IBAO STRATEGIC VISION POP QUIZ CONTINUITY PLANNING HR UPDATE LEGAL briefS COMMUNITY VIEW

The official publication of the Insurance Brokers Association of Ontario (IBAO)

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

A Swimsuit Edition?!

Editor Angela Stelmakowich astelmakowich@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

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

02 July 2014 / The Ontario Broker

Brett Boadway Director Broker Relations & Communications IBAO It’s true. But this time, you can truly say, “I’m just reading the articles, honey.”

Kudos to our models — members of the IBAO Board of Directors and Executive Team — for their spirit and willingness to participate in such an activity. Got to love the accessories — from the wetsuits to the water wings (we even had a Kevlar boat racing suit + helmet). IBAO leaders came dressed to impress.

(Check out our cover models: back row — Michael Brattman, Randy Carroll, Jim Smith, Kim MacLachlan, Keith Hopkins, Jason Famme, Chris Floyd, Scott Goodison, Doug Barnett, David Baxter; front row —Traci Boland, Wendy DaSilva, Stephen Darling, Jacquelyn Schulz, Mike Lalande, Al Hendriks, Brenda Duffy, Debbie Thompson and Doug Heaman.)

Here it is already July, the most popular holiday

month of the year, and we at IBAO found ourselves wondering: Will members still make time to read our magazine?

Enter the swimsuit edition. If you’re reading the magazine now, I’m pleased, if you’re reading this while on vacation, I’m very pleased, and if you’re reading this, having tucked it inside another magazine — torn between a vague sense of guilt and a very definite sense of, shall we say, interest — you’re about to be disappointed.

Setting goals In early 2014, the IBAO Board of Directors defined its strategic goals as an association. Goal #1: Member Engagement.

Engagement = Relationship + Action.

We are focused on keeping you involved, delivering what matters.

“IBAO is like the quarterback of a football team,” suggests Chris Floyd, IBAO President. “Vince Lombardi would say, ‘Individual commitment to a group effort — that is what makes a team work, a company work, a society work, a civilization work.’

In order for the quarterback to succeed, everyone needs to do his or her own job. Members need to be engaged and take advantage of the education, training, business tools and political expertise IBAO offers to guide us through the fog and enable the long-term success of our distribution channel,” Chris says.

“I am optimistic about the future of the independent insurance broker

system because of the efforts of IBAO,” adds Scott Goodison, Territory 9 Director. “With the refinement of the IBAO strategic plan and the initiatives we have in place, IBAO will assist brokers to increase their market share.”

Message sent… and received A huge part of engagement is focused on communications. Are messages read and received? Can you find the information you are looking for? Do the actions being taken by IBAO members align with the association’s messages?

A wise woman once told me: “If it’s important, make it interesting.” So here we are: a swimsuit edition, an edition loaded with interesting association content with a summer spirit spin.

I am pleased to report that engagement and communication efforts are progressing positively at IBAO. Some of those developments follow: 1. The Weekly — IBAO’s weekly e-newsletter has a growing distribution, and open rates are above average. Thanks for reading.

2. An active social media following — The number of brokers contributing to the conversation grows daily. Thanks for helping us share the message in the virtual space.

3. A spike in Young Broker Council volunteers — As Territory 1 Director David Baxter says: “The future of the broker channel is bright with new young staff. They are technologysavvy and are good at

keeping in touch with our clients.” Thanks for joining the army, YBCers.

4. A growing subscriber list for The Ontario Broker — With this month’s cover models, no doubt reader numbers will soar!

5. In the works — Plans are under way to launch a new IBAO website.

Wouldn’t it be great if brokers could quickly and easily find the information you need?! Now that’s engagement. Watch for a new website in Fall ’14.

Last, but certainly not least, all this talk of change and improvement leads me to Convention — set for October 22 to 24 at The Westin & Ottawa Convention Centre.

Convention is the ultimate place to engage and communicate with fellow brokers, and registration is now open.

“IBAO Convention is

the premier event in the insurance industry.

Attending is an investment in yourself and your insurance career,” says Doug Barnett, Territory 5 Director.

Keith Hopkins, Territory 4 Director, echoes Doug’s enthusiasm: “Convention allows me the opportunity to renew old acquaintances, get some education hours, meet and greet company representatives, learn what the IBAO is up to, keep abreast of industry challenges and socialize with some of the finest people in Ontario. All this in 72 hours,” Keith says.

“At no time during the year do we have the opportunity, in one place, to interact with our peers and our colleagues, to educate ourselves, to influence others, to help build this association to be even stronger than it

already is. Convention is the perfect setting for our voice to be heard,” suggests Mike Lalande, Territory 13 Director.

“IBAO membership provides numerous opportunities and benefits you may not be aware of.

Become more involved and you’ll see what we can do for you,” adds Territory 3 Director Stephen Darling.

Combining the topic of member engagement and the spirit of this summertime edition, let’s conclude with a quote.

Here’s a message from one of our territory directors (and resident ray of sunshine) on the benefits of being involved with the IBAO: “I’d been a broker for just over 30 years and I hoped that my experience and education would be an asset to the board.

I do have one regret:

CEO’s Schedule: August 9-13 ASAE Annual Meeting and Conference August 21 Hastings County Golf Tournament August 26 IBAO Executive Meeting August 26 IBAO Past Presidents Meeting President’s Schedule: August 26 IBAO Finance & Audit Meeting August 26 IBAO Executive Meeting August 26 IBAO Past Presidents Meeting

Why did I wait so long to get involved? I knew the IBAO did wonderful things for brokers, but until I became involved… I didn’t realize just how wonderful the IBAO really is!,” says Kim MacLachlan, Territory 6 Director.

See you at Convention!

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July 2014 / The Ontario Broker 03

YBC UPDATE Alanna Taylor Leader Territory 2 YBC

Swimsuit Ready Today, Tomorrow, Always I am not sure how many people can say this and actually mean it, but I love my job. My participation with the Young Brokers Council (YBC) has proven to be a big part of that.

Everything changed for me after attending my first YBC conference.

I came back to my office inspired and full of ideas, having a much better understanding of the broker channel and the issues that it is facing. Most importantly, I learned the significance of creating an effective network with all stakeholders in the business.

I have learned that having a solid understanding of our industry and the issues on the horizon is an integral part of being a good insurance broker.

To make that happen, the YBC provides its members with an arena where they can express themselves professionally and establish strong connections with like-minded young individuals.

Through the YBC, however, networking is not among young brokers alone.

One of the most valuable resources I have gained during my involvement with the council is the relationships I have built with brokers across the province, brokers who have years of experience under their belts.

Those who have been in this business longer than many young brokers have been alive, having seen all facets of this industry, are the best teachers that we could have or hope for.

Oftentimes, these connections develop into a mentoring relationship — which is critical to the perpetuation of the business.

Something in common Last month, I was among the 135 young brokers who gathered in Niagara Falls for two days of education, brainstorming and networking. It was so impressive to be part of such a large group of young brokers who all had one thing in common — passion for this business.

It quickly became apparent that each and every broker present was excited

to be there. The enthusiasm and energy that filled the room was contagious.

Discussions around telematics, social media, fraud and innovation filled the air. These bright and determined young people got their message across — the future of our industry is in good hands.

If I had to choose one word to describe those who attended the YBC conference, it would be “leaders” — not future leaders, but leaders of today.

We like to be challenged, and like even more to be listened to. We may not have all the answers for the issues that this industry is facing, but we can certainly offer perspective.

Some may consider the changing landscape of the insurance industry to be scary. The way business has always been done has become comfortable and familiar. It is time to overcome the obstacles that are presenting themselves, begin to collaborate as never before and embrace the transformation that is heading our way.

To prepare for tomorrow today, I urge you to tap into the innovative minds of the young brokers you know, listen to their ideas and encourage them to be part of your plan.

Join YBC! Visit theyoungbrokers.com and submit a registration form.

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Territory update Doug Barnett Director Territory 5 IBAO

Lessons Learned

I write this report in my final year as director for Territory 5. The territory, located in the southernmost corner of Ontario, consists of Lambton, Chatham-Kent and Windsor-Essex.

It is a large territory, one that is home to a good demographic mix of brokers and brokerages.

Being involved as an IBAO board member was truly an extraordinary experience — both with respect to the friends I have made and also for the industry knowledge that I have gained.

I had the unique opportunity to serve as board liaison for the Young Brokers Council as well, which added to my passion to help bridge the gap between the current state of our industry and the future that lies ahead.

Reflecting on my experience, if there was only one message that I could pass on to my fellow brokers, it would be to get involved in your broker association in some capacity.

IBAO and its members are a strong force and I truly believe in the broker channel. That said, brokers are arguably in the most critical and transformational time in their history: telematics, credit union online retailing, government involvement in automobile insurance, succession plans (or the lack thereof) and intense competition (including from our “partners”) are among the many issues facing brokers today.

Walmart is now involved in the insurance business in the United States, and the chance that new competitors will enter the Ontario market space is real.

of independent insurance brokers. Still, an association is only as strong as the involvement of its members.

Despite these challenges, lack of member engagement and participation is a recurring problem discussed at IBAO. There are many options for getting involved — whether as part of the local affiliate board, as a political action volunteer or as a working group member, encourage young brokers to get involved in the

YBC, choose to become a territory director or simply commit to participating in local or IBAO events.

Every bit of involvement contributes to and strengthens IBAO, the broker channel and each individual member broker.

It has been a pleasure serving as your territory director.

Whatever you do, though, get involved!

For more information on ways you can get involved, contact Brett Boadway at bboadway@ibao.on.ca or 416/488-7422.

Strength in numbers Members would expect and can be confident that IBAO is working hard on all of these issues in the best interest July 2014 / The Ontario Broker 05

CEO CORNER Rowan Saunders President and CEO RSA Canada

Insurance in Canada: A Look Forward With every obstacle or challenge comes a lesson to be learned. Moving towards a successful future depends largely on the ability to distinguish what needs improvement from what works well, and to integrate those best practices with what lies ahead.

It is clear when looking at the insurance industry in Canada that it is in the midst of a transition, but the field is showing a lot of promise with room for growth.

Customers are significantly underinsured, as evidenced by the flooding events in 2013, but if the industry is able to take a step back and really understand their needs, we collectively can pair those insights with the right technology and be well-equipped for a very exciting future.

Further, the current shift that the industry is seeing in technology will significantly change how we approach insurance. RSA has been reflecting on which tactics have served the company well in the past, as well as how it can make modifications, given the new tools that technology has provided.

While more people are becoming increasingly active online, it is important to remember the electronic distribution of products is easiest when those products are simple. Insurance, however, is a non-standard, multifaceted industry that can be quite complex — especially in the commercial space — so the industry cannot (nor should it) expect technology to eliminate traditional distribution models.

Advice-based consumers will still work with a trusted network of 06 July 2014 / The Ontario Broker

advisors in tandem with online tools for researching and understanding their options. RSA believes the ability to move seamlessly from the web to a more personalized interaction will be central to the continued success of Canadian brokers and insurers.

The reality is that consumers seeking advice will always receive better service when they are able to work with an independent broker, and so it is our job to enable this process in whichever method the end-customer chooses (i.e. online, through mobile technology in person, over the phone, etc.).

At RSA, we are constantly challenging ourselves to step into our customers’ shoes so that we can shape our products and distribution to better suit their needs. We are disciplined in using both new scientific techniques and technology to anticipate future necessities.

Meeting customer needs RSA also continues to look for gaps in the insurance marketplace to provide outstanding products and services to consumers. To illustrate, we recently launched a pet insurance product because research showed that only 1% of pet owners in Canada have a pet insurance policy. This statistic pales in comparison to other countries with similar demographics.

The rapidly changing environment and advancement of technology has provided new challenges and opportunities that RSA is eager to take on. One of these challenges is climate change and the impact that the resulting weather trends are having on our business.

Floods and water are particularly relevant in Canada right now, and RSA has developed some incredible flood mapping tools that enable the company to predict the potential risks that exist in a specific area with greater accuracy.

Where RSA’s capabilities previously enabled us to say, for example, that those who live near a river are at risk, the company can now zero in on exactly which riverside homes are high, moderate and low hazards. This enables RSA to better assess its risks

and to take more precise actions to mitigate them.

Since weather events are steadily becoming more volatile, it stands to reason that risk assessment and preventive measures need to improve.

RSA must evolve as the insurance industry’s conditions change and, by implementing the best technology to judge risks and protect customers, we are helping to push a business centred on loss compensation into the realm of loss prevention.

Enabling this will ensure that customers are able to get the best products and services possible from the insurance industry, and brokers will be at the forefront of this shift.

As this change takes place, brokers will need to spend more time educating their customers on loss prevention to enable them to get access to affordable products that best meet their needs.

In addition to our flood mapping tools for weather-related protection, RSA has some interesting telematics developments in the works. While telematics have obvious advantages for insurers, the contribution to safer driving practices means it will also have many benefits to society as a whole. I am personally very excited about the newfound potential to better understand and segment RSA’s underwriting risks.

In order to deliver the best service possible to Canadians, RSA has been reflecting on its strengths and focusing more of its efforts in these areas. In many ways, we will be getting back to our roots and forging ahead with a refined strategy for heightened success.

Achieving this will mean making many small improvements over time, rather than striving for sweeping change, but RSA has already begun this process by investing in the technology needed to thrive.

To better understand broker and customer drivers, RSA regularly reviews its propositions and products using a customer lens. The aim is to provide the best service and products possible so that the company is consistently meeting and exceeding expectations with every interaction.

GROUP BENEFITS Gus Pappas Benefits Coordinator BCI Inc.

Taking the Worry Out of Vacations Summer vacation time is here. Pack your bathing suit and do not forget that suntan lotion, bug spray and... travel insurance?

It is an exciting time. Vacation plans are being made — perhaps trips across the country, backpacking through Europe or even a summer study term abroad.

Despite the excitement, though, plans can easily be spoiled by an unexpected turn of events. Many Canadian travellers, believing they are adequately covered by their group plan, credit card or public health plans, do not typically even bother to confirm their status before leaving.

The latest survey by the Conference Board of Canada on insurance for overseas travel — Outbound Canada, Canadian Health Insurance Survey Results — shows that almost three-quarters of polled Canadians travelling for pleasure do so without private emergency medical insurance. Canadian travellers aged 50 and older are the most likely to be covered, at 81%, while that drops to just 55% for those aged 18 to 29, and 69% for those aged 30 to 49.

The main reasons for not having appropriate insurance on hand was forgetfulness and lack of risk awareness, the survey found, but poll results also show 22% of respondents claimed the product price is too high.

Do you pack bug spray or a raincoat?

What about a sewing kit? Do you have a medical kit? Do you bring a life jacket? Who is your emergency contact person?

Accidents are not planned and are always unexpected. Being prepared allows travellers to fully enjoy their vacation time. It is unlikely that you will need a life jacket, but would you go canoeing without one?

Medical expenses when travelling abroad can be staggering. An air ambulance to fly from Paris back to Toronto can cost $50,000. A broken leg in the United States can rack up expenses of as much as $20,000.

The realities of a growing “sandwich” generation places new pressures on travellers; aging parents and growing families can leave you wondering if you can relax during a holiday.

Any unexpected emergency during a vacation can spoil a good time and would be disruptive, but the cost can put a person’s financial health at risk for a lifetime.

Becoming aware So why do people not properly prepare?

As the survey results indicate, it is often a lack of awareness: awareness of the shortfalls of existing coverage, awareness of the cost of an emergency medical expense while out of country (even out of province), and awareness of how relatively inexpensive and easy it is to be covered.

That said, it is not all bad news. As employers drop benefits, people become self-employed and medical

It is unlikely that you will need a life jacket while on vacation, but would you go canoeing without one?

Medical expenses when travelling abroad can be staggering. An air ambulance to fly from Paris back to Toronto can cost $50,000.

A broken leg in the United States can rack up expenses of as much as $20,000. costs continue to rise along with media campaigns, people have started to recognize the importance of this often-ignored benefit.

Contract wording is becoming more standardized, stability periods are shortening and the application process is becoming simpler. This all leads to an increasing demand and opportunity.

In today’s busy and complex business world, it can be challenging to provide all the solutions that every client needs. Partnering can be the solution.

By referring a client, you can ensure that he or she receives the highest level of service, protect your relationship and create happy memories.

Help plan for a safe and memorable vacation.

For more information about BCI group plans, visit ibao.org/BCI.

Plan beyond fun When planning a vacation, the focus is always (and should be) on the fun side of things — places to go and things to see, what to pack and bring. But that does not mean other important things should be ignored.

July 2014 / The Ontario Broker 07

IBAO STRATEGIC VISION Making a Splash What makes our Board of Directors and Executive Team tick?

The IBAO Board of Directors (BOD) offers its vision, its motivation and its affection for the independent broker channel.

Hailing from all corners of Ontario, BOD members bring perspective and ideas, concerns and solutions, energy and experience. The IBAO board and executive team are the leaders of your association: they establish the priorities and activities of IBAO and inspire all of us to seize the ever-changing world of insurance.

It is a role of vast importance to the association and the distribution channel. So what makes this group of volunteers tick?

Single voice, common desire “I felt like the insurance industry was in a time of considerable change that would affect the next generation. IBAO was leading the change and I thought my time and talents could be best utilized as a part of that single voice,”

says Doug Heaman, First Vice President, set to lead in 2016.

Jason Famme took a different path to the board, inspired to tackle the provincial issues following his experience as an IBAO volunteer in other capacities.

“My involvement with IBAO started when I joined the local affiliate,” says Jason. “There, I met Bryan Yetman, who encouraged me to fill his seat on the Young Brokers Council (YBC) as a territory leader. My involvement with IBADR (Insurance Brokers Association of Durham Region) and YBC, and the people I have met along the way, have inspired me to take the step up to the Board of Directors,” he adds.

Each board member may have a different tale behind his or her inspiration to get involved, but all share a desire to make a difference.

What thoughts swim in their heads?

“Over the course of time and in many

industries, it has been proven that people value personal service and professional advice. This is what brokers do best. As brokers, we need to recognize that new customer dynamics are at play. This provides an excellent opportunity for those willing to discover new ways to serve their clients and move their business forward,” says Michael Brattman, President Elect of the executive team, set to take on the role of President in 2015.

Inspiring change Michael’s comments add to a common thread of conversation and analysis around the boardroom table: What matters to consumers now? How can we inspire members?

“Many brokers have made changes and are aligning themselves with the 21st-century consumer, yet we still have a lot more work to do,” suggests Jacquelyn Schulz.

“The broker channel is still very

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Operated by the CG&B Group Inc. We are the Professional Liability Program Administrators for IBAO and IBAN

www.cgbgroup.com • 800.267.6670

08 July 2014 / The Ontario Broker

much a relationship business. It will be important that we do not lose sight of the people and relationships we have built, as we develop new technologies for efficiencies and keep our industry evolving,” Jacquelyn advises.

“Promoting the independent broker channel to members and consumers keeps me up at night,” says Brenda Duffy. “Members have a great deal of opportunity in the challenging times of our industry,” Brenda adds.

Therein lies an important question: How many members are taking advantage of all that is available to them?

“The definition of community in itself describes who we are: a group of people who share common values and are mutually connected — physically and virtually.

The fact that we are tied by such a strong connection, as values, makes me proud to be part of a profession that has such a major influence in our industry.”

One of the strategic objectives of the current board is to increase member engagement: A well-aligned membership — from the Board of Directors to the employees in the office who work with clients every day — results in better performance as a channel: a united force that is able to leverage its collective volume to make things happen.

“IBAO has to be the single voice of all brokers because not one of us has the size, clout or the capacity to deal with even a medium-sized insurance company on a level playing field,” says Wendy DaSilva, newly elected to the IBAO executive team, scheduled to become President in 2018.

“IBAO gives us all a platform so that our concerns will be heard and addressed by even the largest insurance company,” Wendy points out.

“The knowledge that you obtain and the edge that your brokerage receives

Photo: Patrick Thompson

Member engagement: our springboard to success

are priceless. There is no better education than being engaged with the IBAO,” comments Traci Boland, Second Vice President on the executive, set to take on the role of President in 2017.

A pool of fantastic people The endless requests for feedback, the time commitment and the pressure of setting the direction must be rooted in passion for this Board of Directors. And the passion stems from the people.

While board members represent a motley crew of politics, perspectives and

opinions, the evidence of teamwork and the enjoyment of the people is clear.

Debbie Thompson, Chairman of the Board on the executive team, puts it best: “The definition of community in itself describes who we are. A group of people who share common values and are mutually connected — physically or virtually. The fact that we are tied by such a strong connection, as values, makes me proud to be part of a profession that has such a major influence in our industry. Your best insurance is definitely an insurance broker!”

July 2014 / The Ontario Broker 09

POP quiz QUIZ: ARE YOU SWIMSUIT READY?

Is your beer belly a liability? (note the chips & beer @ midnight exclusion)

N

Y When you dive, do you cause a hazard?

Y

N

Are your biceps premium earned?

N

Y

Is your basement flooded with muffin top?

Are your assets appropriately covered (or is there exposure)?

Y

When you cannonball, does it increase the likelihood of property damage?

Y READY THE Ontario ONTARIO Broker BROKER 10 July 2014 / The

Y

N

N

READY

N

When you ease into the water, are there casualties?

Y

N

Is your bathing suit premium brand?

Y

N

READY

CONTINUITY PLANNING Don Purchase Business Development Manager Stage2Data

No Vacation for Data Threats It’s summer. Patios are open, the sun is shining and vacations are on everyone’s minds. But there is one thing that definitely does not take a vacation during summer, and that is the constant threats to your data.

Our data? Yes. Think about it.

Summer can bring with it strong weather systems and unexpected interruptions in power: rivers flood; brownouts happen unexpectedly, sometimes lasting for days; a tornado hits; wind storms blow out windows and close entire buildings; and offices are destroyed by circumstances beyond their control, whether that be the result of water damage, fire or theft.

Along with those destroyed or severely damaged office buildings, what else is at risk? Your data.

All-season vulnerability Mother Nature certainly is not the only threat to your data. Regardless of the season, your brokerage data is vulnerable to other types of disaster, including virus attacks and server crashes. Both are common and should be taken seriously.

You may be asking yourself, “What can be done to protect our data?”

The answer starts with having a solid data backup and recovery plan, including disaster recovery.

The three pillars of strength that the right cloud solution provider brings to your brokerage will be the foundation for keeping data safe and ready for any disaster — whatever the season.

Knowing what to ask a potential provider is the first step in making the best choice possible.

To that end, Stage2Data has created a brokerage-specific, user-friendly article that describes those necessary strengths in detail. Simply click on stage2data.com/3Pillars to gain access.

In the interim, below is a small excerpt from the article: “Having an adequate data protection solution that can recover your business quickly from a natural disaster, server crash, or a virus attack is essential

Regardless of the season, your brokerage data is vulnerable to other types of disaster, including virus attacks and server crashes. Both are common and should be taken seriously. to maintaining your brokerage operations. It is important to have a reliable backup solution and disaster recovery (DR) plan. Yet many brokerages still do not have a viable DR plan in place. Many rely on manual backup processes that are prone to failures and offer little security. Some factors that contribute to a business not having a DR plan are accelerating data growth, budget limitations, perceived difficulty in implementation, and a resistance to change.”

Stage2Data, Canada’s premier cloud solutions provider, is an IBAO affinity partner for cloud solutions. To learn more, contact Don at don.purchase@stage2data.com, or by phone at 647/260-3355.

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July 2014 / The Ontario Broker

11

HR UPDATE Teresa Landry HR Manger Engage HR

The Hard Work Behind Those Curves!

Everyone knows that getting fit and staying fit takes a lot of hard work, focus, determination and sacrifice.

When you think about it, though, many of the principles involved in reaching fitness goals are the same as those that are required to achieve organizational goals.

Upon meeting with a fitness instructor or coach, he or she will start by taking inventory of a person’s current fitness level or physical condition. Key health and fitness indicators will be measured, and then compared with the benchmarks for those of the same age category, gender, height, etc.

From an organizational perspective, the same can be achieved from retaining the services of an HR consultant,

who will take inventory of the current state of the organization by completing a S.W.O.T. (strengths, weaknesses, opportunities and threats) analysis, and then compare results with industry benchmarks, as well as other organizations of the same size and in the same geographical location.

Setting goals and plans Taking health and fitness condition into consideration, a client and his or her coach can then determine goals and devise a fitness plan/schedule that makes sense and is specific to what the client wants and needs.

A client will set realistic timelines and milestones; the coach will regularly monitor health and progress, making any adjustments necessary along the way.

From an organizational perspective, the broker and HR consultant will use information from the S.W.O.T. analysis to devise a strategic plan with S.M.A.R.T. (specific, measurable, achievable, realistic and timely) goals and objectives. Progress towards goals and objectives will be monitored, milestones celebrated and any necessary adjustments made along the way.

A fitness coach will pay special attention to devising a plan that is holistic and considers all muscle

groups and bodily systems. He or she will be concerned with achieving optimum health and fitness levels while also maintaining balance, to ensure that the body is proportionately balanced and to avoid injuries.

From an organizational perspective, a broker and his or her HR consultant will also want the organization’s strategic plan to be holistic and to consider all the functional areas of the business.

It will also be important to maintain balance, which can be challenging when introducing change initiatives.

Proper attention must be given to ensure that your organizational systems, structure and, most important, people, are optimally supported to drive those initiatives.

Maintaining balance will not only avoid incurring organizational change fatigue, which can threaten the success of any change initiative, it will also ensure sustainability and promote overall organizational health in the long term.

ENGAGE HR excels at assessing organizational fitness and helping drive and sustain positive change. Take advantage of your complimentary, one-hour-permonth IBAO member benefit by calling ENGAGE HR’s Advantage Helpdesk at 905/306-8111, Ext. 240, or e-mail me directly at teresa@engagehr.com.

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12 July 2014 / The Ontario Broker

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LEGAL BRIEFS Ian H. Gold Founding Partner Thomas Gold Pettingill LLP

Failure to Disclose Can Void Your Professional Liability Policy A recent decision of the Court of Appeal for Ontario highlights the dangers of inadequate disclosure when applying for professional liability coverage.

In the 2014 decision, Lavoie v. T.A. McGill Mortgage Services Inc., the court found unanimously that an insurer was entitled to rescind a professional liability policy held by a mortgage broker where the broker had failed to disclose knowledge of potential litigation in its application for coverage.

In March 2008, a mortgage broker applied to Echelon General Insurance Company for professional liability errors and omissions (E&O) coverage.

In its response to questions regarding knowledge of possible or pending litigation, the broker did not disclose that it had received lawyers’ letters demanding payment of funds and threatening an action for misrepresentation and negligence.

The broker further did not disclose that it was engaged in settlement discussions with the would-be plaintiff in the threatened action.

Echelon accepted the broker’s application and a policy, in force April 2008, was granted. (Although the policy did not cover fraudulent acts, the Mortgage Brokerages, Lenders and Administrators Act, 2006 was subsequently amended to require insurers providing professional negligence E&O coverage to mortgage brokers to add a fraud endorsement to their policies.

This endorsement was duly added to

the Echelon policy in July 2008.)

In September 2009, the broker was sued for damages arising out of alleged fraudulent activities. As the broker’s professional liability insurer, Echelon was named as a defendant.

Due to Crown disclosure in an unrelated action in 2010, Echelon became aware that the broker had not been truthful in its application. It advised the broker — whose licence had since been suspended by the Financial Services Commission of Ontario — that it was rescinding the policy on the basis of material nondisclosures/misrepresentations in the application, thereby voiding the policy from the beginning. The insurer won a summary judgment motion dismissing the action against it on the grounds that the policy was never valid.

On appeal, the broker argued that because there was no coverage for fraud under the policy at the time of the ap-

plication, its failure to disclose potential litigation alleging fraud was not a material misrepresentation because it could not result in litigation for which there was coverage under the policy.

The Court of Appeal disagreed, finding that the broker made a material misrepresentation when it answered “no” to the specific question asked in the Echelon application, namely: Was it aware of any circumstance, allegation, contention or incident that might result in a claim for errors or omissions?

For insurers, the case affirms longstanding case law that a material misstatement on an application for insurance is grounds for rescission of the policy. The decision should also remind brokers of all stripes and, indeed, any professional applying for professional liability coverage, that an insurance policy obtained without disclosing all material facts is probably not a policy worth having.

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July 2014 / The Ontario Broker

13

COMMUNITY VIEW $1 MILLION EFFORT

Cowan Insurance Group announced June 26 that with its 2014 golf tournaments in Ottawa and Waterloo Region raising $57,500 (an amount matched by The Cowan Foundation), the Cowan Charity Classic will now have distributed more than $1 million to Canadian charities. The Cowan Charity Classic — along with its sponsors, business partners and golf tournament participants, and the annual matching by The Cowan Foundation — has been able to support numerous charities, including this year’s recipient, The Royal in Ottawa and Kitchener-Waterloo Counselling Services in Waterloo Region. “Through the Cowan Charity Classic, we look to donate to programs that have the potential for providing clear and compelling positive changes in Canadian communities,” says Heather McLachlin, President of Cowan Insurance Group. “We are proud to have exceeded the million-dollar mark and look forward to supporting many more organizations in the future with continued growth in our businesses,” adds Maureen Cowan, Chairman of The Cowan Foundation.

Left to right: Robert Proulx, Vice President of Benefits & Corporate Sales, Cowan Insurance Group; Heather McLachlin, President, Cowan Insurance Group; Andrée Steel, President and Chief Executive Officer, The Royal; Russell McDonnell, Volunteer, The Royal; and David Denyer, Ottawa Branch Manager, Cowan Insurance Group.

Left to right: Robin Agnihotri, Todd Smith, Don Clipperton, Lynn Ward, Marie Clipperton, Jackie SmithWoolley, Caroline Netto, Linda Kalynchuk and Chloe Navaretnam.

Covered in Care

On June 7, W.N. Atkinson Insurance Brokers and IBAO donated 50 blankets to Armagh House in Mississauga, Ontario. The non-profit organization provides several counselling services and temporary housing to women who have left abusive relationships.

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Left to right: (back row) Heather Hibbs, Bill Howden, Darlene Veri and Dennis Howden; (front row) Janice Garratt, Beth Berg and Bonnie Pepper.

Outgoing, Incoming

On June 12, Caledonia-based Haldiman Insurance Brokers Ltd. held an open house to celebrate the retirement of president Bill Howden and to welcome Heather Hibbs, the brokerage’s new partner. A wide range of friends, clients, individuals from the community and company representatives came out to share the day. Some Bipper blankets were used as door prizes and Haldiman Insurance Brokers donated 40 blankets to the Caledonia & District Food Bank. Above is a photo of the brokerage staff proudly wearing Bipper shirts during the open house.

14 July 2014 / The Ontario Broker

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