Photography by Tracy Grabowski
What Gets Measured Gets Done (Better)! How Do Your Membership Dollars Get Spent? Convention Gallery Page 24 June - July 2013
The Enders Zone 2013–14 IBAA President Gord Enders
Cdn Publication Mail Registration 40018149
Annette Hubick
Message from the Editor By all accounts, the 2013 IBAA convention was a great success—you’ll find two recaps on pages 16 (“Chinook Country Report”) and 38 (“Northern Exposure”) as well as the convention image gallery starting on page 24. The Fairmont Banff Springs Resort, kissed with warm sunshine by Mother Nature, is a hard venue to beat. Delegates and exhibitors responded favourably to some of the format changes, most notably an afternoon AGM (much better than 8:00 a.m.!) and the tradeshow’s move to the closing day. Booking a celebrity as the keynote speaker also paid off as I’ve never seen the morning session so packed—no small feat after the previous night’s Peace Hills’ party. (Famous last words: “I’ll just have one or two, make the rounds and call it an early night.” Sound familiar?) Of course, all the seminars, events and entertainment are the adornments of the core purpose of the convention: to provide social interaction between brokers and their company representatives and to elect the IBAA president, executive and board. Our cover story features an interview with the 2013–14
IBAA president Gord Enders. One of Gord’s key messages is about the importance of brokers carving out time to work on their businesses. Making a strong case in support of that notion is author and speaker Jeff Mowatt. His article on page 44 asks the question “Are You Too Busy to Be Productive?” Many of your insured clients only question the value of their insurance once their renewal notice arrives in the mail. Many IBAA members are no different. It’s only when the IBAA dues notice arrives in the spring that they ask, “How does IBAA spend its money and how do I benefit from it?” IBAA’s member services director Janis Losie addresses the first half of that question in her first Alberta Broker article (page 4), and CEO George Hodgson addresses the IBAA’s value proposition in his “Advocate” column (page 28). Thank you to the many people I talked with at the convention. I was heartened to hear that so many find The Alberta Broker a great way to stay connected to their profession, and I had many conversations that provided great insight … and more than a few laughs. I’m already looking forward to Jasper 2014!
IN THIS ISSUE
June - July 2013
The Alberta Broker is the official publication of the
3010 Calgary Trail, Edmonton, AB T6J 6V4 T: 780.424.3320 •1.800.318.0197 F: 780.424.7418 • www.ibaa.ca
President Gord Enders Chief Executive Officer George Hodgson Published six times annually by:
9249-48 Street Edmonton, Alberta T6B 2R9 T: 780.448.0936 • F: 780.465.6201 E: albertabroker@linkpr.ca Publisher and Editor Annette Hubick Printing McCallum Printing Group Design and Layout Ron Leckelt Advertising Michele Schuldhaus 780.448.2890 michele@linkpr.ca The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members. Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Association of Alberta’s magazine - The Alberta Broker (date).” Please send a copy to the publisher.
3 4 6
Message from the Editor Member Services The Enders Zone The IBAA President Interview
10 12
Did You Know? Metrics:
16 20
Chinook Country Report PYIB Perspective
22
Viewpoint
24 28
IBAA Convention Gallery The Advocate
What Gets Measured Gets Done (Better)!
Brokers:The Next Generation Access Issues
31 32
Resolution in Memory Legal-Ease
34
IBC Insight
37 38 40
IBAA Special Thank You Northern Exposure Know E & O
42
Commercial Break
44
Are You Too Busy To Be Productive? Professional Development
48
Up in Smoke Adaptation to Severe Weather Matters
A Liitle More Conversation Think Globally — Act Locally
Building Customer Loyalty
Your Dues – What Do They Do For You? The Alberta Broker June - July 2013
3
Member Services
Janis Losie
Where Do Your Membership Dollars Go? As the new coordinator of member services for IBAA, I am responsible for putting together services and programs that add value to the IBAA membership. The first thing I realized is that the only way to find out what members want is to ask them. I have started to reach out to our brokers in the past few weeks by visiting them where they live. I have been warmly welcomed by brokers in Lethbridge, Calgary, Red Deer and Edmonton and hope to get to all our members in the next few months. There have been some terrific suggestions from brokers for additional programs and services they’d like to see us offer and I am working on them as we “speak.” However, one question keeps coming up in the overwhelming majority of conversations:
What do you do with the money?
The rest of this article breaks down how IBAA uses membership dollars to best represent and serve you, our member brokers. Expenditures are grouped into broad categories that illustrate what we do for you (see chart).
• Convention planning, organization capitalize on a strong brand at little and attendance to no cost • Special Projects—focus groups, • Federal government lobbying, market research and analysis, broker predominantly focused on the effort technology reviews and projects of to prohibit banks from retailing interest to our member brokers insurance from their branches or • Member Services—obtaining websites member feedback on affinity program, • Videos and marketing pieces— research and negotiation for addition members can use these on their web al offerings and marketing/ sites, for in-house training or for administration of Errors and public promotion Omissions program • Promotional items (Bipper-branded) for members to purchase at reduced cost IBAA Expenses • Development of national educational materials (CAIB, Fundamentals 25% of Insurance, 35% CCIB, CPIB, etc.)
10%
n IBAC n IBAA
10%
20%
Administration n Professional Development n Communications n Provincial Lobbying
IBAC
IBAA Administration
Professional Development
While 35% looks like a huge chunk of dollars, you need to remember that the Insurance Brokers Association of Canada (IBAC) functions at a national level. National TV advertising to build the broker brand and the Bipper is costly, but we would never get the same bang for our buck that we do without pooling our dollars across the country. Here are some of the other ways that IBAC uses its dollars: • Working to build the Bipper brand with TV, print and radio advertising. This advertising allows members to
There is a team of people working behind the scenes to make things happen, such as education, the convention and regular communications. Here is where the IBAA portion of your money goes: • IBAA office overhead (rent, utilities, office supplies, IT, other operating costs) • Expenses associated with meeting elected officials, industry stakeholders, and regulatory agencies • Liaison with IBAA board to ensure adherence to IBAA plan and direction
Seminars and courses are likely what we are best known for, but a lot of work goes into bringing you the best and most up-to-date in education. • Development of customized, needs based course materials, ensuring an Alberta focus • Refreshments and supplies for classrooms • Exam marking, review and appeals • Selection and scheduling of courses, locating and remunerating of facilitators
4 The Alberta Broker June - July 2013
• Continual upgrading to accommodate industry, legislative and regulatory changes
Communications Yes, we do communicate, and on a regular basis. We also use various methods, so we make sure we are in contact with you the way you want to hear from us: • E-News, IBAA Education (newsletter), Young’s Stuff, (Thom Young’s blog) • The Alberta Broker magazine • Maintenance and update of IBAA website (www.ibaa.ca) • All marketing materials for IBAA and PYIB events (internal/external, career fairs) • Insurance Goal of the Game ($50– $100 matching funds per promotion, plus support materials) • Facebook and Twitter maintenance and marketing
• Marketing and other communication materials available to members for use with clients/general public • My Insurance Shopper (MIS) marketing campaign • Multi-media • Promotion: MIS, the Bipper and the broker
Lobbying This is the lobbying we do at the provincial and national levels, specific to the needs of Alberta brokers. • Develop and nurture relationships with elected officials • Organize grassroots lobby efforts (e.g., brokers meeting with their local MLA) • Work with regulators, industry stake holders, Insurance Bureau of Canada (IBC), industry vendors and insurers • Work with IBAC on national decisions and policies that affect us locally
Projects: • Licensing changes (harmonizing licensing dates) • Diagnostic Treatment Protocols and Minor Injury Regulation review • Synergy with other industry associations • Bargaining power to deliver on trends based on broker feedback or reduce costs on new technologies • Emerging/evolving regulatory projects So, now you know where your money goes. The IBAA juggles a lot of perspectives and interests, but the executive, board and staff are always mindful of using your dollars wisely. JANIS LOSIE Co-ordinator of Member Services, IB AA jlosie@ibaa.ca
The Alberta Broker June - July 2013 5
The Enders Zone The IBAA President Interview By Annette Hubick 6 The Alberta Broker June - July 2013
G
ord Enders got into the insurance business the old fashioned way (no, he didn’t marry into it — that came later): “I was tricked into it,” says Gord. He was in his mid-twenties and back in Edmonton after spending a few post-university years travelling throughout Europe and working for a snowmobile company in Whistler. He had initially planned to start his own discount travel tour company offering budget-conscious Rocky Mountain experiences. However, he discovered that a business aimed at that target market posed significant viability challenges and set his sights on starting a professional career. He was approached about a job opportunity at Drayden Insurance by the mother of one of his friends. He contends she knew he was keenly interested in advertising and marketing, so she framed the role that way. He took the position as marketing manager for the brokerage’s travel insurance program, which was sold directly to consumers and to other brokers (Drayden was Medicare International’s MGA for the Prairie provinces.) “Three years later, I was sitting at my desk and I started to think, Hey, wait a minute, I’m an insurance broker!” Gord recalls. The rest, as they say, is history, “a history I’m very pleased about and proud of,” he adds. Drayden turned out to be good for Gord’s personal life, too—it’s where he met his wife, Carol Romain-Enders. Carol was the personal lines manager at ING responsible for the programs Gord created for Drayden. “You could say we negotiated some mutually beneficial terms!” says Gord. After seven years as a broker and developing group programs with Drayden and Association Insurance, Gord moved to the company side in marketing with Pembridge when it was launched in 1999 and then to ING as a broker associate. In 2004, he joined Liberty Mutual as its sales manager for Northern Alberta, and when TD Meloche purchased Liberty, Gord was appointed corporate sales manager for
Western Canada. Gord believes that these years on the “other side of the desk” served him well when he moved back to the sales side and took a sales management position with Johnson’s Inc. and even more so when he entered into a partnership with Larry Heron at Direct-Line Insurance in 2009. “I gained an understanding of how insurers work—an appreciation of the slower pace of change due to the companies’ size, which can be a source of frustration to brokers who are more nimble and able to respond quicker.” His company experience also benefits his customer: “I’m able to protect my clients’ interests and negotiate better— knowing where to push, and where not to.” Gord and Carol eventually bought out Larry Heron’s share in the business and operate Direct-Line Insurance in Edmonton and Warburg Insurance (along with its sister company, Warburg Agencies). The business services both personal and commercial clients with a staff of 18, which includes previous partner Larry Heron and the couple’s daughter, Brandy (they also have two adult sons: Blake and Brad). Gord prides himself on the brokerage’s customer-centric approach offering service to clients “however they want to deal with us—whether that’s online, in person, by phone, text, email or fax.” Gord’s customer service roots can be traced to his first job that he landed on his 13th birthday, working for the local drugstore in his home town of Stony Plain. “That role taught me all the little things: how to talk to customers, to be polite, to help them get what they needed. My parents reinforced the notion that you had to be prepared to work hard no matter how you feel or your customers’ demeanor.” As for insurance business “guides,” Gord cites three individuals that he really admires and from whom he has learned a lot: “Murray Miller, how to sell the big picture; Dean Bailey, the art of negotiation—when to talk and when to wait for the other guy to speak; Larry Heron, the power of positive
thinking—he’s one of the most positive people I know.” Gord’s business philosophy is “Don’t be afraid to change. Think outside the box. Push the envelope.” He is hard at work positioning Direct-Line for growth in its commercial division, with a focus on the oil and gas industry. It is evident he loves doing what he does: “The ability to grow a business, help customers and work with really good people—both our staff and our underwriting partners—are the best things about owning an insurance brokerage.” In his spare time, Gord loves to travel, curl, golf, boat, snowmobile, quad, play hockey, volunteer and … grow a mustache. For the past two Novembers, Gord has grown a cookie duster as part of Movember, which raises vital funds and awareness for men’s health, specifically prostate cancer and men’s mental health initiatives. Gord’s father is a 10-year prostate cancer survivor, so the fundraiser really hits home. Despite his business, personal and charitable commitments (he is a past president of the Kinsmen Club of Edmonton), two years ago Gord decided to put his name forward as a candidate for the IBAA executive and was officially elected as the association’s 2013–14 president at the May 6th annual general meeting in Banff. “I believe in giving back. This industry has been very good to me and I wanted to be able to provide something back. I also felt I could make a difference and help. I’d like to think I bring initiative, the ability to drive change and a resultsoriented focus. I’m not afraid to take on tough issues when needed,” Gord explains. Gord sat down with The Alberta Broker to talk about his upcoming term as IBAA president. What issues will you focus on during your term as IBAA president? There are three areas I will focus on,
continued on page 8 The Alberta Broker June - July 2013
7
continued from page 7 Technology. Technology is changing so fast—if we want to survive, we need to embrace technology and try to keep up to date—as daunting as it may be. My Insurance Shopper is a perfect example of how brokers can work together to combat the banks and direct writers. Young brokers. Young brokers have so much to offer—initiative, the knowledge of technology and energy. By getting them engaged at a high level in our businesses, brokers will help ensure their future. Asking brokers to take time to work on their business in addition to working in it. Working “on” the business is important and difficult to find time for. We’re so busy working in the business, helping clients and putting out fires, sometimes we need to step back and look at our big picture in terms of strategy and planning. Brokers need to take the time to ask themselves “Where do I want my business to go and what do I want it to look like? How will I achieve that?” The first two are the keys to achieving the third. IBAA’s professional development has a role to play by continuing to offer webinars, which appeal especially to young brokers, and with its management development programs like Bullet Proof Manager, the MBA program and CAIB (a designation that Enders is proud to have earned). I’d also like to attract more young brokers onto the board, striking a balance between good solid experience with the appetite for new ideas and technological know-how. What experience have you gained as a member of the board and executive committee that will help you be an effective association president? The importance of teamwork. This is not a one-person job. It takes many volunteers on the executive and board, 8 The Alberta Broker June - July 2013
the CEO and the staff to make the organization function and continue to be the dynamic, relevant body that it is. What have you learned from your predecessors, which you would like to incorporate as IBAA president? Mardene Watson: patience, Dean Bailey: analytical skills, Scott Treasure: passion for the insurance business and politics. What was the greatest insight into IBAA you gained by joining the board/executive? How much work there is involved throughout the organization, especially at the political advocacy level. This association has been successful because of the grassroots efforts of the membership. Brokers in every town and city know their MLAs and MPs. The Bank Act is what keeps the playing field level by prohibiting the banks from retailing insurance from their branches—brokers’ relationships with politicians ensure the knowledge that local businesses and jobs and the consumers’ best interests are at stake. How have you and your brokerage benefited from your personal involvement on the IBAA executive? I have developed relationships with other brokers and company executives and have been personally involved in the political advocacy efforts. These things have helped develop my own talents and positively impacted our business. I can think of two specific business opportunities off the top of my head that would not have come about if not for these relationships. How does your brokerage benefit most from your association membership? Political advocacy far and away is number one, but IBAA education is an important second.
Do you foresee any changes to IBAA, its benefits, structure, role, etc., in the next five years? If so, what would those be? I think IBAA will continue to develop the benefits. My Insurance Shopper is a perfect example, along with the program’s advertising campaign that IBAA, supported by underwriting company sponsorship, will implement to enhance brokers collectively in the minds of the insurance consumer. What are the key challenges and opportunities facing IBAA as an association? One the best opportunities IBAA and brokers have is the My Insurance Shopper (MIS) online quoting platform, which allows us to help level the playing field between brokers and the direct writers and banks. Individual brokers can’t outspend these competitors on Google and pay per clicks, but as a group we can move up the search page securing near the top placement when consumers are searching for insurance on the Internet, which they are doing in ever-increasing numbers. The Bipper plays a key role in this so we can tag onto the brand awareness and recognition created by the national advertising campaigns. The membership uptake on MIS has given us a good base, but we still need to work with members to increase uptake. As brokers, both urban and rural, we need to be careful not to get caught thinking that the next generation of customers will follow previous generations and deal with “the local broker I know.” The reality is that the young generation is used to looking for answers on their smartphones. We don’t believe MIS and the Bipper are the only marketing tools a broker needs to use but they are important ones for positioning the broker distribution channel. The industry and the consumer are facing a significant market challenge with the changes in property insurance. Weather-related losses are now the leading cause of property claims,
putting pressure on underwriting results. Peril rating, increasing deductibles, reduced coverage, and rate increases are some of the strategies insurers are employing in an effort to improve results.
The real challenge is that this is a complex issue with a number of stakeholders that need to be involved in the repair of the product. Insurers, brokers, consumers, adjusters, claims vendors, restoration companies, contractors,
home builders, government regulators —all have a vested interest and responsibility in managing this situation. I believe IBAA can help promote and facilitate the discussions that need to take place.
2013–14 IBAA Board of Directors Back row: Gord Cowan (president-elect), Ken Holst, Steve Hambly, Scott Treasure (past president), Gerry Baert, Derek Connick, Mitch Holst Middle Row: Scott Romans, Patti Hunt, Gord Enders (president), George Hodgson (CEO),Tim Gassner, Julia Marshall, Robyn Young (vice president) Front Row (Far left): Lorrie King. Front Row (Far right): Jody Lohr, Catherine Cake
GORD ENDERS PLAYS TWENTY QUESTIONS 1. If we’re buying, what are you having for dinner? Steak – nothing better than Alberta Beef. 2. What’s your “guilty pleasure” TV show? Not really any “guilty pleasure” shows but enjoy Two and a Half Men. 3. What’s your favourite snack food or candy? Chocolate and ice cream … in that order. 4. If you could build a house anywhere, where would it be? Mexico. 5. At which single store would you choose to max out your credit card? The Ski-Doo dealership, although iTunes would be a close second. 6. If you could meet anyone, alive or not, who would it be and WHY? My wife’s father—he passed away shortly after we began dating and I never had a chance to meet him. 7. Where would you want to retire to? Mexico. 8. Weddings and children aside, what is the coolest experience you’ve ever had? I worked for a winter in Whistler as a snowmobile guide—paid to play, as I always say.
9. If you didn’t do what you do for a living, what would you be? Maybe a radio announcer—I almost left university after my 2nd year and I would have gone to take broadcasting arts. 10. Dogs or cats? Dogs. 11. If you could go anywhere in the world on vacation, where would you go? Rome with my wife. 12. If you could see one concert, who would BE PERFORMING? The Country Music Awards. 13. Tim’s or Starbucks? Tim’s of course. 14. What’s playing in your iPod right now? Tim McGraw, Eric Church, Carrie Underwood, Katy Perry, AC DC and some ’80s music. 15. What’s your favourite app? iTunes. 16. What’s your favourite restaurant in Edmonton? The Keg. 17. What’s your culinary specialty? BBQing and chocolate chip cookies. 18. What’s your dream car? Porsche—there is no substitute. 19. What’s your favourite ice cream flavour? Chocolate peanut butter. 20. What’s tops on your bucket list (that you have yet to do)? Way too many to count and too young to start listing them in have-to-dos vs. want-to-dos. The Alberta Broker June - July 2013 9
Did You Know... The Bipper symbol is recognized by 40% of the general public? The public familiarity with this brand is high and you, as a member of IBAA, can use this well-known logo for free in conjunction with your own business logo or advertising! Forest fires move faster uphill than downhill? This is mainly due to the fact that heat rises and that fire travels in the direction of the ambient wind, which usually flows uphill. Nearly half of all donors to charities hold at least one university degree or post-secondary diploma/ certificate? We know that our Alberta brokers do a lot of work directly with charities across our province—more proof that smart people help others.
10 The Alberta Broker June - July 2013
Canada Geese are found in every contiguous U.S. state and Canadian province at some time during the year? Just like insurance brokers: they’re everywhere! Even though insurance brokers can be found everywhere, it is important to distinguish yourself from the rest of the “flock.” Have you thought about what makes your brokerage unique and how you can advertise that to the public? The average age of Canada’s population is 40 years old? Where do you fit in comparison with the average age? How do most of your clients measure up? It is time to start thinking about targeted marketing and what your client demographics can tell you? Hopefully your business strategy includes taking a look at what your clients identify with best.
Sources: IBAA, Statistics Canada, National Geographic and the Internet.
METRICS:
What Gets Measured Gets Done (Better)! By Karen Rutherford
What are you measuring in your office? Since there are so many helpful tools to help you run your office more effectively, are you taking advantage of more analytical information to help you make good decisions?
12 The Alberta Broker June - July 2013
Have you gone to the trouble of creating a Facebook page? If so, do you review the analytics at least once a week to understand who is visiting your page and what they are saying about your page, as well as to track whether increased activity on Facebook results in a boost in sales? I am involved with a couple of Facebook pages and I find it a lot of work just to make sure the content is current and relevant. The next thing is measuring what you have placed on your Facebook page. Once you look at the information provided by Facebook, then the hard work really starts. If you are getting lots of activity but it doesn’t convert to sales, then should you continue? If you have lots of visits, but no comments, is your site relevant? Just having a Facebook page doesn’t make sense unless it is helping you drive your business. I love the information Facebook provides; unfortunately, it doesn’t tell you how to fix your results if they aren’t helping you grow your business. Who has the task in your office to review the analytics and make adjustments to your message to ensure you are getting your monies worth out of the time invested in Facebook? The same goes for Twitter or LinkedIn or any of the social media sites. If you are involved, then benchmarking your success is important and adjusting your page, your tweets, your info; all become tasks that must be done. Do you monitor your webpage? Who is visiting your page? How long do they spend on each page? Which page is the most popular? Does a spike in visits result in a spike in sales? If not, why not? One of the most popular sources of this information is Google Analytics. What is your brokerage using? Are you measuring your CSRs and producers regularly? Are you using the analytics provided by your broker management system to manage workloads effectively, measure financial success producers accurately and set your compensation plan to help you grow? Or are you giving this analysis a
cursory glance once a month and hoping for the best? There are many tools to help you get the most out of your staff and for your staff to enjoy their own success.
do you like your new car?” Both make the CSR sound interested in the client, but one only needs to be said, the other requires a whole conversation. The efficiency of the entire service
Imagine an NHL player who didn’t know how many goals he had in a recent season, or how many minutes in the penalty box!
One of my best experiences as a consultant was to visit a large call centre in the USA quite a number of years ago. During that visit I watched, almost in horror, as calls from clients were measured to the quarter minute. The company knew exactly how long a conversation should take and the very minute a CSR ran long, a supervisor would be sent to the CSR’s desk to coach her in reducing her call times. Over the course of a couple of days, I changed my point of view completely. This rigorous monitoring resulted in the best possible customer experience. I was able to listen to calls; clients didn’t feel rushed, they chatted away, got their changes taken care of and hung up satisfied customers. You can use your telephone provider to gain an understanding of your telephone analytics. It is not free, but you might be surprised at what you learn. CSRs with great training can process service calls, claims calls and new quotes much faster than CSRs with average training. So what is the key difference? Time on a call. If you could reduce the time it took to service clients, you could devote more time to organic growth. Part of the training of these CSRs I was lucky enough to monitor was the best way to sound chatty and friendly while minimizing client contact. Sounds like a contradiction in terms, but here is an example of a statement that they made when the call was about a substitution of auto … “Sounds like you bought a great car!” instead of “how
centre was driven by the use of phone analytics and, of course, a great IT system. Have you measured how much time your staff spends in chitchat time with clients? It might be an interesting metric worth studying. I had an interesting conversation recently. I learned that there is a broker whose personal lines department handles $4 million in premium per CSR.That is a stunning number. CW Group usually suggests that you need to add a staff person at $150,000 in commission income. The broker I am referring to is more than five times that level. So what would you have to do to make that happen in your office? Well, many of you have already streamlined your personal lines department by moving most of your business to a single personal lines market. This is hard for me to endorse because I completely believe in the value of an independent broker, using multiple markets to provide the best possible solution for a client. I actually have to swallow quite hard to call brokers with one personal lines market, owned by an insurance company or financial institution, an “independent” broker. But the world changes whether I like it or not. Brokers’ independence is a far cry from what it once was, but I am fairly sure no one cares. So if you haven’t streamlined yet, you may want to consider it. If you have only one or two markets, it is easy to train your staff to use the company portal and your broker management system really well. A competition to
continued on page 14 The Alberta Broker June - July 2013 13
continued from page 13 determine the most efficient number of keystrokes required for any transaction could take your entire office to a new level of efficiency! The next thing you would need to do is really monitor the metrics provided by your BMS. Are workloads balanced? During our consulting work we often find superstars in offices. They are the CSRs who have the neat desk; work is always current, abeyances lists are short, and they often handle a larger book of business than other CSRs. Other CSRs are allowed to work in a muddle, have hundreds of items on their abeyance list and handle a smaller portfolio. When we chat with these folks, both categories believe they work hard for their money! But more often than not, they don’t actually know their metrics! Why is that? Your BMS allows you to run a book of business report. Why not share it with your staff ? Then a star
14 The Alberta Broker June - July 2013
can be recognized and rewarded, and those who aren’t stars can be helped to achieve greater success. What would happen to your organic growth if you had a team that all pulled in the same direction? Commercial producers are a pet project of mine. One of the most interesting facts I discover when working with commercial producers is that most don’t know their own numbers. Really! Imagine an NHL player who didn’t know how many goals he had in a recent season, or how many minutes in the penalty box! So if commercial producers are competitors the same as a professional athlete is a competitor, shouldn’t every single producer be able to tell me his closing ratio? Or her new premium to date? Shouldn’t every single producer know his retention rate? All this information is readily available on any broker management system, so why don’t they know? If you are a struggling producer, then with your metrics in hand you can seek help.
Is it your presentation that is weak or your closing skills that need work? Or have you targeted business that is exceptionally loyal to another program? Or are you a star? Your numbers are top of the class. Wouldn’t your boss want to recognize you and encourage you to continue? Wouldn’t the others in your office benefit from your wisdom? Brokers who have achieved remarkable growth understand that metrics are there to help you refine your business operations. They use the metrics available to help their staff achieve success and, as a result, everyone has a better day. Make sure you are taking advantage of all the information available to you to take your brokerage forward.
KAREN RUTHERFORD International Accelerated Learning kruther@telusplanet.net
Who? What? Where? Darrell Verbonac
CONVENTION REPORT After a number of years of being held in other centres, the IBAA annual convention returned to the Banff Springs Hotel, May 5–8. The setting was, of course, great in Banff, and the weather was incredible, making it the place to be for insurance people for a few days. The convention featured a number of speakers including Mike Holmes of television fame, Jim Rivait of the Canadian Home Builders Association, Superintendent of Insurance Mark Prefontaine, Automobile Insurance Rate Board executive director Del Dyck, customer service guru Don Shay and IBAA’s own professional development director Karen Bushie. With Mike Holmes being the biggest celebrity and the keynote speaker, he attracted a large crowd and, although not sporting his usual t-shirt and suspenders, delivered an insightful “make it right” presentation about home construction and restoration. He also gave away a big bucket of Mike Holmes-designed safety glasses, which was a big crowd pleaser. The great weather in Banff also allowed for some good outdoor recreational activities. The golf tournament on the first day was played not only with a spectacular backdrop of the mountains but also with blue skies and temperatures in the mid-20s, so a number of people were sporting sun burns and tans. This reality was made even sweeter when realizing that it was snowing in Banff only one week earlier. Besides golf, attendees 16 The Alberta Broker June - July 2013
took part in various activities such as hiking, horseback riding, a trip up the gondola as well as just enjoying walking the streets of Banff. One of the more unique activities took place the last evening, as there was an after-dark ghost tour of the Banff Springs. The Springs is celebrating its 125th anniversary this year and it has a number of interesting tales, many of which have been documented in various books. For those who have never been to the Springs, it is very large, with lots of additions over the years and many nooks and crannies and hallways that just end, as well as places where there should be doors but there are none (Costen & Associates’ Andrew Shareski’s room was across the hall from one of these no-door locations), so it lends itself to some great stories. Intact Insurance’s Pam Lockett did the tour and said she was woken up at 4:30 in the morning by what sounded like someone rubbing up against her door. She said she was not sure if it was some late night conventioneer trying to stumble back to his or her room; however, she was not getting out of bed to check—she never fell back to sleep because all she could think about were ghosts. Muriel Hanna-Fuller of Toole Peete was invited to go along on the tour but declined as she said there would be no way she would do the tour get thinking about ghosts and then have to go back to her room alone. The Springs itself was a great venue, and I think almost everyone had great things to say about the hotel and
the convention overall with the only complaints being about some morning headaches and not enough sleep! BROKER NEWS Two new brokerages opened up in the south end of Calgary recently. Jay Sproule, who was with Jones and Salt Insurance Brokerage Ltd., started up Sproule Insurance Inc., located at 11650 Elbow Drive SW, while Marc Duimel started Aspen Insurance Brokers Ltd., down in the southeast. Tredd Insurance continues its expansion in the Calgary area with the purchase of BKI Risk Management to go along with recent purchases of HE Hunt and Associates and Mayfair Financial Services. Tim Kane left BKI in the deal and is now trying something different in the health spending account management field. BKI is continuing to run on its own with Ian Eddy overseeing all of the Calgary operations for Tredd. Dalton Timmis Insurance moved premises from its previous northwest office in Crowfoot to 6715–8 Street NE, up near the airport. Best wishes go to Mary Jane Winfield of BrokerLink on her retirement. Mary Jane was the commercial manager at BrokerLink for many years and was replaced in that role by industry veteran Brenda Williams. New staff members at Costen & Associates are Tracey LeBlanc, who was working for a broker in Nanaimo, B.C., and Tyler Friesen.
continued on page 18
continued from page 16 Over at Rogers Insurance, new staff include Darwin Burgess who moved from Saskatchewan and Katarina Dobos. Congratulations to the foursome of Rob McIntyre on winning the A Event at the annual Blue Goose Curling Bonspiel in Vancouver. In news from Aon, new staff are Andrew Ramsey from BFL Canada and Joel Lauzon, while Dustin Harvey transferred up to its Edmonton office. At Willis Canada, Stephen Lowe is new, while Lindsay Hine left to join Marsh Canada. Jim Olsen left Lundgren & Young and is now at Anthony Clark International, while Matt Pedrazzini left Wawanesa Insurance to join Dejongs Insurance. Kelsey Plett is new at Northgate Insurance. Two new staff at All City Insurance are Suzie Kirkup and Trina Barrett, while new at Renfrew Insurance is Lara Murched, previously with Alpine Insurance. Congratulations to two staff members of Lundgren & Young Insurance as both Jon Morrison and Courtney Smiley had babies on March 19. Jon, who is from L&Y’s Edmonton Trail branch had a son, Alec. Courtney, who is from L&Y’s Horton Road branch had a baby girl, London. Up in Red Deer … • Congratulations to Ing & McKee Insurance’s Scott Romans and his wife on the February 7 birth of their first child, a son named Kye. This, of course, means that Ing & McKee partner Brad Romans is a first-time grandfather and probably has little Kye all decked out in Minnesota Vikings’ baby clothes. • Congratulations are also in order for Chantelle Boggs of Mooney Insurance, who also had a new baby boy, on April 20. • New staff at Hub are Amber Buchanan, who was with All Service Insurance, and Rachael Bradford who transferred from Hub Horizon 18 The Alberta Broker June - July 2013
Insurance in Winnipeg. Randy Enns has left the Hub office and returned to Vancouver Island. In Strathmore, Lynn Butters joined the staff at Gold Key Insurance, while Karen Selk is the new manager of the Western Financial Group office as previous manager Glen Reiter has moved into a producer role. Karen was previously the manager of WFG’s Nanton office and transferred to Strathmore. WFG’s Trochu office, under the direction of manager Tracy Myers, has moved into brand new premises on Main Street after having been in its old office for the past 22 years. Scott Tannas, president and CEO of Western Financial Group, has been appointed to the Canadian Senate by Prime Minister Stephen Harper effective April 16, 2013. Scott will remain on the WFG board and follows his father, Don, into politics. Don Tannas was a four-term Progressive Conservative MLA for the provincial Highwood riding. Sadly, there a few passings to report. Reta Germain of WFG’s Medicine Hat downtown office died March 17; Laura Penton of Lundgren & Young passed away suddenly while on vacation in Mexico on March 22; and John Weisgerber of All City Insurance passed away on March 27. COMPANY NEWS At Aviva Insurance, new staff includes Alison Dixon, who was with Dalton Timmis Insurance, while Susan Bishop joined on as commercial underwriting manager. Over at Peace Hills, Anthony Lim was promoted to branch manager, and replacing him as marketing representative is Tammy Bates, who moved to Calgary from Salmon Arm, B.C., where she had worked for a broker. At Intact Insurance, best wishes go to Sally Stewart who retired at the end of April after 22 years with the company. Congratulations to boiler
and machinery underwriter Meaghan Powell who celebrated the birth of her first child, a son named Blake on April 1. Commercial underwriter Zach Weaver left to join ISNetworld. In news from RSA, Rob Lipsey left to join CNA Canada and Roger Marcello left to join Economical Insurance. There is sad news to report from RSA as longtime adjuster Jim Brayton passed away. Terry McGrath joined Northbridge Insurance in a marketing role, having previously been on the broker side with Underwriting Solutions LP. There are a number of congratulations to go out as well … • Jodi Payne of Kergnaghan Adjusters celebrated nuptials with Michael Lammers on April 23 in Cancun. • Surety underwriter Cheryl Sparks of Sovereign General retired. • Mike Ilnycky of RSA was presented with the Distinguished Alumni Award in Risk Management and Insurance by the Haskayne School of Business at the University of Calgary. Mike was recognized for his efforts as an instructor at the U of C, his mentoring of students and new insurance employees and his involvement in community and charity endeavours. • TU Group, one of the industry’s travel insurance providers, was recognized as one of Canada’s Best Managed Companies in February. This recognition is granted to 50 private organizations across the country and is a feather in the cap of president and CEO Patrick Robinson.
DARRELL VERBONAC, FCIP, CRM Regional Business Development Manager Intact Insurance Company darrell.verbonac@intact.net
An Advertising Feature
WINMAR SIGNS CONTRACT WITH SYMBILITY SOLUTIONS INC.
Executive Team Photo: (Left to right): Paul Wormith, Winmar Co-Founder & CEO; John Burega, Symbility Sr. VP Sales & Marketing; John White, Winmar Co-Founder & President; James R. Swayze, Symbility CEO; Lyne Mercier, Symbility Regional VP Sales Canada; Tom Brodhurst, Winmar Vice President; Glenn Woolfrey, Winmar Executive VP Corporate Operations
Winmar Franchise Corp., a London, Ontario-based, independently owned and operated property restoration company with over 85 offices across Canada, is pleased to announce that they have signed a multi-year agreement to integrate Symbility Solutions Inc.® (TSX.V: SY; OTCQX: ATBEF), a provider of cloud-based smartphone/ tablet-enabled claims technology that uses one of the most comprehensive data for the property and casualty insurance industry into its daily operations. “It is with great pleasure that we welcome Winmar, one of the leaders in the restoration industry in Canada, and their franchise owners to our valued and growing client base,” said James Swayze, CEO, Symbility Solutions. “Symbility is committed to supporting contractor networks and restoration companies and we are proud to be one
of the estimating platforms that Winmar has chosen for their large network of offices across the country.” “Winmar has been in business since 1977, with offices spanning from St. John’s, Newfoundland, to Victoria, British Columbia. Our partnership with Symbility enables our franchises to collaborate on the most innovative cloud-based platform in the market and will enable us to provide our valued customers an alternative choice in the software we use to estimate their claims,” comments John White, President/Founder, Winmar Franchise Corp. “We look forward to a successful, long-term relationship with Symbility Solutions as we continue to expand the way we service our customers.” The multi-year agreement will see Winmar implement Symbility’s Claims Connect®, an innovative property and casualty claims workflow management
software that will streamline the claims estimating process by reducing cycle time and increasing accuracy in all aspects of the claims handling process. Winmar will also use Symbility Mobile Claims®, one of the industry’s most intuitive smartphone and tablet-enabled field estimating solutions in enhancing adjuster and third-party contractor productivity. Mobile Claims will enable Winmar staff to quickly and easily generate accurate estimates, improve efficiencies and shorten the claims estimating process. With no hardware to install or software to maintain, Winmar will continue to provide their valued policyholders a better claims experience.
All trade names are the property of their respective owners.
The Alberta Broker June - July 2013 19
PYIB Perspective Mitch Holst
Brokers: The Next Generation In preparation for this article, and in for taking on the role of president of the Professional Young Insurance Brokers, I have been thinking a lot about what I wanted my message to be. What would be the focus of my term? What did I want to emphasize to other young brokers and to the industry as a whole? And then something came to my mind: a date, April 7, 2008. On April 7, 2008, I made a decision that, I feel, has greatly improved my quality of life and the lives of my family. This was the day that I started my career in the insurance industry. Prior to April 7, 2008, I had worked in the trucking business for about three years, and while I enjoyed the job, and the company I worked for, it just didn’t seem like a real fit for me. The trucking job also had very long and strenuous hours, which didn’t allow me to spend a lot of quality time with my growing family. To top it off, when I was home, I was always tired and sometimes not very pleasant to be around. Fast forward five years and here I am happily employed in one of, what I consider to be, the most fun industries around. I spend my days working from my office that is five minutes from my house. This proximity allows me to go home for lunch and gives me more time with my wife and kids. I meet face to face with great people and help them take care of the important things in their lives. I attend industry events such as conferences and golf tournaments, where I socialize and network with incredible people from all parts of the industry. I constantly learn and grow through continuing education courses. Heck, I even get to work on a computer that has two monitors! One of the main points in the PYIB mission statement is to “create a solid foundation for success and perpetuation of the broker profession.” I really like this goal because I believe brokers have a great profession that is highlighted by the kinds of things I have mentioned above. I also believe that the broker 20 The Alberta Broker June - July 2013
profession (or service) necessary to our provincial and national economiesand vital to the success of our clients and their businesses. These days, it seems
that there is more pressure than ever on our industry from outside forces such as banks or direct writers and, as such, it becomes more important than ever to “create the solid foundation” and work to “perpetuate the broker profession.” That being said, I decided that for my term as PYIB president, I wanted to focus on just that, the “perpetuation of the broker profession” or, in other words, showing people how great of a job we really have! So now the question becomes “What can we do to accomplish this goal?” The PYIB already has a few great strategies in place to encourage people to explore our industry. First, the PYIB host a number of events throughout the year, with the two main events being the PYIB golf tournament and the IBAA fall conference. I believe that these types of events provide a place where we can introduce people to the lighter side of our careers. Each year, the PYIB sends invitations to students in the insurance programs at both Grant MacEwan and Mount Royal universities to attend our fall conference, free of charge. This gives them the opportunity to participate in education courses that help them learn some of
the ins and outs of being a broker, as well as network and build relationships with other brokers and our industry partners.
“The exciting thing is, for some students, this is one of their first experiences with insurance, and most have never even thought of this industry as a career option.�
part of. I also hope that I have been able to display accurately some of the ideas we are working on as young brokers here in Alberta. I would encourage anyone who is reading this to be aware of the PYIB and the good things that we are trying accomplish. Please help us! We have a lot of great things happening but we can always improve. If you have ideas or opportunities that you feel would help us accomplish our goal, please feel free to let me, IBAA or any other PYIB board member know.
I hope that we can all work together to create that foundation for success and to perpetuate our profession into the future.
MITCH HOLST President, PYIB mitch@saunders-insurance.com
Another great way that our organization works with university students is through our bursary program. Every year, the PYIB sponsors a $1000 bursary awarded to one student each at Grant MacEwan and Mount Royal universities who demonstrates exemplary work ethic, good attendance and an enthusiasm for the insurance industry and academic achievement. It is our hope that this award will help propel these individuals into a career as an insurance broker. We also had the opportunity to either set up a booth or do a presentation at different career fairs at these universities. I think the last strategy I want to highlight is one of the coolest. Over the past three years or so, the PYIB has developed a classroom presentation that includes a slideshow, as well as a Q&A session and a fun quiz. We have presented this to career and life management classes at high schools around the province. During the current school year, our young brokers had a goal to visit 18 high school classes. We have already far exceeded this goal, with more classroom visits planned. The exciting thing is that for some students, this is one of their first experiences with insurance, and most have never even thought of this industry as a career option. Again, we hope to show the students what a fun and rewarding industry we work in and hope to get them thinking about one day starting down the exciting path that is the insurance industry. I hope that I have been able to re-ignite the excitement that we should feel about our jobs and about our industry. It really is a great thing to be a The Alberta Broker June - July 2013 21
Viewpoint
Stephen Halsall
Access Issues
Sometimes, we have to challenge assumptions. Sometimes, with new options and information, we can improve on past choices. Within the framework of brokerinsurer contracts, brokerages, rather than individual employees, hold the legal relationships with carriers. Broker principals are responsible for employees’ actions while they interact with the public and with insurers. When communication happens to occur electronically, the nature of these relationships doesn’t change. The insurer-broker interface, however, is commonly designed to require insurer-approved and -issued individual passwords for broker employees. The authorization for access shifts from the brokerage to the individual, even though the employing brokerage determines who communicates with insurers. In 22 The Alberta Broker June - July 2013
addition to clouding legal accountability, these passwords frequently provide admission directly from the Internet, adding great potential for security risk and abuse.
The security around broker-insurer transmissions should reflect actual legal relationships and enable control where there is responsibility.
How many insurer-issued passwords do YOU have? How secure are they? If you sent the insurer’s site address and your password to your home email, could you log in from there? How quickly can access be terminated? A recently approved IBAC position paper asserts that the security around broker-insurer transmissions should
reflect actual legal relationships and enable control where there is responsibility. Insurer interface systems should limit incoming broker transmissions to those identifiably originating from approved brokerage systems, rather than relying on authentication of individual employees’ credentials. Using embedded brokerage-level passwords accessible only to brokerauthorized staff would eliminate much potential risk, complexity and expense. Communication and interface are current priorities for the industry. IBAC urges insurers and brokers both to take a hard look at how we have been building connectivity and consider that there might just be a better way. STEPHEN HALSALL, CCIB, CPIB President, Insurance Brokers Association of Canada
Photography by Tracy Grabowski
PRESIDENT’S GALA
IBAA Convention
GALLERY
2013, Banff
PEACE HILLS PARTY
24 The Alberta Broker June - July 2013
IBAA Convention
SPEAKERS
KEYNOTE: MIKE HOLMES
With representatives from Keynote sponsor, Intact Insurance
With IBAA past president, Scott Treasure
t
Del Dyck, Automobile Insurance Rate Board
t t Mark Prefontaine, Superintendent of Insurance
t
Don Shay, Crestcom International
Karen Bushie, IBAA Professional Development
t
NOTEWORTHY
This was the 50th convention for Larry Heron, a broker with Direct-Line Insurance in Edmonton and an IBAA past president.
GALLERY
Jim Rivait, Canadian Home Builders Association
Delivering his “Make it Right” message
2013, Banff The Alberta Broker June - July 2013 25
2013, Banff IBAA Convention
GALLERY
TRADE SHOW
26 The Alberta Broker June - July 2013
IBAA Convention
HOSPITALITY NIGHT
t
t IBAA Staff, “Making It Right” with Mike Holmes
t
Photography by Tracy Grabowski
2013–14 IBAA Executive The Alberta Broker June - July 2013 27
2013, Banff
Margaret Buhay, IBAA Convention Co-ordinator
GALLERY
Thank you to the convention sponsors, exhibitors, delegates and organizers of the 2013 IBAA Convention!
The Advocate
George Hodgson
Your Dues— What Do They Do For You? As you read this column, IBAA is embarking on a new fiscal year with a new board and executive. This means we have had to say goodbye to some board members who have chosen for various reasons not to return. We thank them very much for their time, commitment, ideas and service! We also say welcome to new board members and welcome back to the existing ones. This should be another busy and exciting year! On the executive we say goodbye to Dean Bailey and hello to Robyn Young. Dean has been a real joy to work with. His knowledge of both the insurance industry and its people, along with his 28 The Alberta Broker June - July 2013
wit, will be missed by us all. And welcome Robyn—we look forward to the next four years with you! This time of year is also when member brokerages in the province will have received their membership dues invoices. That means it is a good opportunity to go over what your membership does for you and the broker industry. GOVERNMENT RELATIONS Government relations is really the primary purpose of the association. IBAA and its national counterpart, the Insurance Brokers Association of Canada (IBAC), are some of the most
effective government advocacy associations in the country. Government advocacy is sort of like air conditioning in our automobiles— we don’t appreciate it when we have it but we sure miss it when we don’t. It is an intangible that is difficult to put a monetary value on. The associations’ argument regarding the banks continues to be that property and casualty insurance ought not to be retailed at the point of granting credit. 2012 marked the five-year review of the Bank Act and, except for a few minor technical adjustments and in spite of heavy lobbying by the banking sector, there were no changes. In fact, just prior to the review, the act was actually strengthened when a regulation was added to prohibit banks from retailing insurance on their websites. IBAC successfully argued that the banks ought not to do on their websites what they are prohibited from doing in their branches. In the advocacy business, achievements are not permanent and past accomplishments are no guarantee of future success. The legislation comes up for review again in 2017 and the work on that is ongoing. IBAA also functions as an advocate for insurance brokers with insurance regulators such as the Superintendent of Insurance, the Automobile Insurance Rate Board and the Alberta Insurance Council. Working together with these three regulators and the Canadian Association of Direct Relationship Insurers, IBAA had significant input into the writing of the new licensing regulation. Generally, this new regulation has been well received by brokers throughout the province. As with any new regulation, there will likely be some unintended weaknesses that may have to be addressed at a future date; however the success of this collaboration showcases our government relations advocacy at work. Over the years, IBAA member brokers, as well as members of the executive, have attended many political events throughout the province and the nation.
continued on page 30
continued from page 28 Last year, IBAA’s now past president Scott Treasure and I attended the Council of the Federation in Halifax on behalf of member brokers. Our participation in this event (which included meeting our nation’s provincial premiers) and IBAC’s platinum sponsorship of the social event following the Council meeting, will serve consumers and brokers well when industry-related issues arise at both the provincial and federal level. PROFESSIONAL DEVELOPMENT High quality professional development is integral to the success of both the individual broker and the broker industry as a whole. All brokers are required to take 15 hours of mandatory continuing education (MCE) in order to maintain a license in Alberta. In addition, many brokers want to remain at the top of their game and devote more than the minimum time to professional development. Whichever the case, IBAA offers an increasingly greater variety of immersion courses, online courses, seminars, videos, webinars, in-the-field courses and other formats to meet a variety of education needs. Over the last year, the association has been reaching out to member brokers to inform them of our professional development offerings including the addition of in-house training seminars. A significant benefit to members, aside from the superior quality of the courses, is the member price, which is usually one half of the non-member price. Here, one can calculate in real dollars the value of a membership in IBAA. IBAA, along with its provincial counterparts as well as IBAC, offers professional designations: the Canadian Accredited Insurance Broker (CAIB), the Canadian Professional Insurance Broker (CPIB) and the Canadian Certified Insurance Broker (CCIB). These designations, which further enhance both the professional abilities and the image of the insurance broker, are recognized across Canada. The 30 The Alberta Broker June - July 2013
courses needed to complete these designations are offered in Alberta exclusively by IBAA. In fact these programs are a fantastic way to get continuing education credits while earning a professional designation at the same time! ERRORS AND OMISSIONS INSURANCE IBAA, through a wholly owned corporation, offers E&O insurance through Swiss Re/Westport. This insurance is one of the most comprehensive E&O insurance programs for brokers in the business and is offered exclusively to IBAA members at a very competitive rate. IBAA continues to work with Swiss Re to improve this program, which is already one of the best offerings in the business today. THE BROKER IDENTITY PROGRAM The Broker Identity Program, also known at the BIP or the Bipper, is the insurance broker symbol developed in 1989 as a registered trademark to differentiate association brokers from other insurance professionals and to reinforce recognition of the insurance broker profession among consumers. The BIP “symbolizes quality insurance—knowledge, choice and professional unbiased,” “rest easy,” “on-your-side” advice to consumers. This symbol has become one of the most recognizable corporate symbols in Canada and is the envy of many insurance brokerage and agents organizations worldwide. Over the past couple of years, IBAC and many sister provincial associations have been further enhancing the Bipper’s image with the ongoing involvement with the Insurance Goal of the Game. IBAA, along with its western Canadian sister associations, has teamed up with the Western Hockey League to showcase the Insurance Goal of the Game throughout Western Canada. IBAA has also joined forces with the Alberta Junior Hockey League and Victims Services to promote the Insurance Goal of the Game at the junior hockey level. This program sees
local brokers and IBAA jointly supporting Victims Services—a great cause that helps many Albertans in their time of need. NEW INITIATIVES My Insurance Shopper This past year, IBAA signed on with My Insurance Shopper—a website developed by Insurance Brokers Resources Inc., a wholly owned subsidiary of the Insurance Brokers Association of Ontario. The broker channel faces stiff competition throughout Canada from agents and direct writers. This program, offered to member brokers only, is meant to preserve and grow the broker channel’s share of the market by ensuring that the broker option appears high on the Google search listings. Property Insurance Policy Statements Due to the changes enacted and contemplated by many insurer partners IBAA developed and approved the following additions to the already existing policy statements: • That property insurance should be available and affordable for all consumers that the product offering be equal, fair and equitable regardless of who the consumer deals with and that there be no reduction in the normal perils currently enjoyed; • That a facility pool be established for homeowners to cover catastrophes, floods and other difficult-to-place perils; • That there should be a standardization and clarity of coverage; transparency of wording and changes, as well as full disclosure of changes, restrictions and options at the time of sale; that insurance companies must be accountable to the broker and client; and that all coverage limitation be signed off by the policy holder; and • That the government and regulator have a fair and transparent application of the insurance regulations, that they collaborate with industry stakeholders and that the property insurance industry remain private with minimal government regulation.
The association is committed through its lobby efforts to ensure that these principles are upheld. New Member Dues Structure It is difficult to find anyone who remembers when the member dues structure was last updated. In that time, due to mergers, acquisitions, and startups the makeup of IBAA’s broker members has changed dramatically. The new dues structure, passed at the AGM in Banff, reflects these changes by being more transparent and fair to all brokers, whether in a large brokerage with many offices, or a one-person office. OTHER INTANGIBLE BENEFITS
As with all member organizations, the overall benefit of membership is the camaraderie and a positive sense of belonging to a group of professionals with common goals and aspirations that has at its heart the best interests of the consumers and brokers. IBAA promotes the perpetuation of the broker channel that continues to serve the interests of consumers so well. In the end, it has been said that a skeptic knows the value of everything, whereas the cynic sees no value in anything. There is nothing wrong with asking from time to time if we are getting value for what we are spending. I have been told by current and past board members that if you are questioning the value of your membership, join
the board or your local council, and you will quickly come to appreciate what the association does. Reasonable skepticism is necessary to keep our association healthy and serving the needs of our members and consumers; however, let us not be cynics. Have a relaxing summer, everyone.
GEORGE HODGSON CEO, IB AA ghodgson@ibaa.ca
RESOLUTION IN MEMORY Whereas: The success of our Association has been dependent upon many factors, including: a dedicated membership; professionalism of the brokerage force; the volunteer efforts of individuals who have provided dedicated service on Committees, Board of Directors and members of the Executive; and lecturers at all professional development courses; and volunteer efforts in community leadership therefore, Be it resolved: That members of the Insurance Brokers Association of Alberta go on record as expressing their deepest sorrow in the passing of the following people:
Bob Alexander Laura Penton Dale Rempel Dick Timo Hal Banasch John Hodgson Bill Rogers Richard Burley
The Alberta Broker June - July 2013 31
Legal-Ease
Shelley L. Miller and Terry J. Williams
Up In Smoke
Man Sues Insurer Over Stolen Marijuana
A man named Stewart lives in Ontario. He insured the contents of his residence under a policy with TD General Insurance Company (“TD Insurance”). Stewart has licenses to possess and cultivate marijuana issued under the federal Marijuana Medical Access Regulations. On September 22, 2009, six marijuana plants growing in Stewart’s backyard were stolen. Stewart made a claim under the policy and TD Insurance paid out $1,000 per plant, for a total of $6,000. Stewart thought that TD Insurance should have paid him more for his stolen marijuana. On
32 The Alberta Broker June - July 2013
June 21, 2010, Stewart sued his insurer claiming $26,000 for the value of his stolen plants, and a further $180,000 for breach of contract, mental stress and physical pain, breach of fiduciary duty and infliction of mental and physical suffering. On September 29, 2011, another five plants were stolen from Stewart’s backyard. TD Insurance paid him a further $5,000. On July 12, 2012, Stewart filed a second lawsuit claiming $19,000 for the value of the plants and a further $180,000 on the same grounds as in the first lawsuit.
TD Insurance argued that the only provision of the policy that provided coverage for the stolen plants was paragraph 15 of “Extended Coverage,” which limited compensation to $1,000 per plant and which reads as follows: EXTENSIONS OF COVERAGE 15. Trees, shrubs and plants Trees, shrubs and plants being part of your landscaping on your premises. We will pay up to 5% of the limit of insurance applicable to your dwelling, subject to a maximum of $1,000 for any one tree, shrub or plant including debris removal. You are insured against loss cause (sic) by fire, lightning, explosion, impact by aircraft or land vehicle, riot, vandalism or malicious acts, theft or attempted theft. Stewart argued in response that the marijuana plants were not part of the “landscaping” and therefore the limitation in paragraph 15 of “Extended Coverage” did not apply. Stewart argued that “landscaping” involves laying out plants (or other items) for aesthetic purposes, not for the purpose of growing medicine. Stewart argued that instead the marijuana plants constituted personal property usual to the ownership or maintenance of a dwelling and that they were therefore covered by paragraph 1 of “Coverage B” in the policy which provides as follows: Coverage B - Personal Property (contents) 1. We insure the contents of your dwelling and other personal property you own, wear
or use while on your premises which is usual to the ownership or maintenance of a dwelling. The judge who heard the case found that the essential definition of “dwelling” under the policy is the insured building, while “premises” means the land that the building is on. The judge stated that the scheme of the policy as a whole was to provide in general for coverage, and then in “Extended Coverage” to provide specifically for items that are not contained in the general provisions. The general provisions for coverage were divided into three categories: A. the dwelling building, B. personal property (contents) and C. additional living expenses or fair market rental. In the part entitled “Extensions of Coverage,” provision was made for items such as a reward for information leading to the conviction of a person for arson, compensation for fraud and forgery, mortgage rate protection, moving expenses and trees, shrubs and plants. The judge observed that the provision for trees, shrubs and plants was put into the part of the policy that provides coverage for items that are not contents of the dwelling. The judge stated that it was a stretch to say that paragraph 1 of “Coverage B,” which fell under the heading “Contents” and which was principally concerned with contents, covered items that were not contained in the dwelling. The judge also rejected Stewart’s restrictive definition of “landscaping,” noting that the dictionary definition of landscaping did not necessarily exclude plants that were laid out for reasons other than aesthetic. Finally, TD Insurance argued that the following exclusion clause limited recovery: PERILS EXCLUDED We do not insure loss or damage: 8. Grow-op... arising directly or indirectly from the growing, manufacturing, processing or storing by anyone of any drug, narcotic or illegal substances or items of any kind of possession of which constitutes a criminal offence….
However, the judge held that this exclusion clause dealt with damage caused by the growing or production of drugs, not with the loss of the drugs themselves. In the result, the judge held that the maximum recovery under the
policy was $1,000 per plant. Since that amount had already been paid by TD Insurance and the additional claims were based on the failure to pay more, Stewart’s action was dismissed with costs.
SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMS are lawyers with Dentons Canada LLP and practice in the professional liability insurance area. terry.williams@dentons.com shelley.miller@dentons.com
The Alberta Broker June - July 2013 33
IBC Insight Bill Adams
Adaptation to Severe Weather Matters to Albertans
As a new resident of Alberta, I’m constantly struck by the vibrancy and “can do” confidence that permeates the air here. You don’t need to be in the province for long to realize that, despite some pressures, this is still “the centre of the Canadian economy,” as Finance Minister Jim Flaherty has noted. At Insurance Bureau of Canada (IBC), we’re interested in harnessing some of that entrepreneurial excellence and confidence as we address an issue that is threatening every region of this country, including Alberta. The problem is the rise we are seeing in extreme weather events, which is a growing risk for every province and for the quality of life of all Canadians. IBC president and CEO Don Forgeron recently tackled the issue of extreme weather in a speech to Calgary’s Chamber of Commerce. He explained the problem from a global and national perspective and outlined how insurers and governments are responding. He also called on Alberta business— 34 The Alberta Broker June - July 2013
including brokers as community business leaders—to be part of the adaptation solution. Increasing severe weather is clearly a global phenomenon. Insurers worldwide have watched this growing crisis with alarm as claims costs from severe weather have skyrocketed everywhere. Munich Re, the global reinsurance company, puts the 2011 worldwide economic losses from natural catastrophes at a record $378 billion. Canada’s losses are no less alarming. The year 2012 was the fourth year in a row in which insured losses from natural disasters hovered near or above $1 billion. And last year, the hardest hit province was Alberta. Here’s the tally: • On July 26, 2012, a fast moving hailstorm with pellets the size of baseballs damaged cars and homes and left a trail of damage from Cardston to Nanton. • On August 12, less than three weeks later, large hail pelted parts of the
region around Calgary during a severe thunderstorm. There were reports of hail five to six centimeters in diameter. The storm also brought heavy rain and ensuing flooding. These two occurrences plus another wind and rain event in Edmonton in early July added up to more than $700 million in insured losses for 2012 alone. And 2011 was equally devastating; the Slave Lake fire in May ravaged the community and caused $700 million in insured losses. Now go back another year to 2010: Calgary and southern Alberta were hit by high winds and thunderstorms that caused $500 million in insured losses. Behind the numbers are stories of real people. One farmer said, “We were looking forward to very, very good crops this year and this is very devastating. We work hard all year long getting water on the land and looking forward to a big harvest and all of a sudden there’s not much left here.” The damage was less spectacular but real for Calgary auto dealer Matthew Bergeron. He had 50 cars on his lot when hail struck. The result was 30 windshields and two rear-view mirrors broken, and every car left dimpled with $3,000 to $5,000 worth of dents. The losses totalled more than $100,000. “In 25 years, we have never had to fix any hail damage. This is the first time. We have had hail but nothing like this,” he said. Too much precipitation isn’t, of course, always the problem. Too little precipitation results in drought, water shortages and wildfires that play havoc with people’s lives and livelihoods. An 11,500-hectare blaze near Fort McMurray recently caused the temporary closure of Highway 63 due to heavy smoke. To understand this growing problem of increasing extreme weather and its impact on all regions of Canada, IBC commissioned a research study by Dr. Gordon McBean, a professor at
continued on page 36
continued from page 34 Western University and president-elect of the International Council of Science. We learned from Dr. McBean’s detailed analysis that our weather is changing across the country. Every region of Canada is getting warmer. In most parts of the country, this warming trend means heavier rainfalls, more wind events and increased flooding and infrastructure damage. In other parts of the country, it means less rain and more danger of drought. According to the McBean study, Alberta is projected to experience more extremes at both ends of the precipitation spectrum. By 2050, average annual temperatures are expected to increase by 2°C to 4°C. Summer precipitation is projected to drop in southern Alberta and winter precipitation to increase in most of the province. Looking forward to 2050, Dr. McBean sees the potential for increases in drought and water shortages as well as hail, storm and wildfire events in Alberta. Albertans certainly haven’t been standing still on this issue. The province recently released a provincewide vulnerability assessment and is updating the climate change strategy. Calgary won the Federation of Canadian Municipalities award for climate change initiatives back in 2005 and is exploring new ways to make city infrastructure better able to adapt to extreme weather events. We applaud these efforts towards creating more resilient communities, but there is more to be done. Insurers have been working to find solutions and encouraging adaptation. In 2009, IBC, the national trade association representing property and casualty insurers, identified “adapting to severe weather” as a priority. IBC made a commitment to lead on climate change adaptation well ahead of many governments. Since then, IBC has: • Reached out to communities with a new municipal risk assessment tool 36 The Alberta Broker June - July 2013
(MRAT) that helps them pinpoint storm water and sewer infrastructure vulnerabilities; • Commissioned national research, including the McBean report; • Advocated at all government levels for more funds for storm water and sewer infrastructure; • Partnered with municipalities on pilot projects to test out large-scale use of rain barrels to reduce pressure on water and sewer infrastructure; and, • Educated consumers across the country about sewer backup valves and simple home maintenance to protect their property. Governments and insurers have found several ways to collaborate on adaptation strategies. For instance, IBC is working together with several Canadian municipalities on a new tool mentioned above (MRAT) that uses data provided by both municipalities and insurers to pinpoint sewer and storm water infrastructure vulnerabilities.
We all know we need to do more. In particular, we need business leaders including brokers to join with governments and insurers in adaptation efforts —the return on investment will be more than just reduced losses. Yes, success in adaptation will save money. It will also help communities and individual citizens. And it will show that Alberta continues to increase its environmental commitments and continues to lead. In Alberta, where professional confidence and acumen has led to so much success, business has a new, crucial role to play as a leader in Canada’s adaptation to severe weather.
BILL ADAMS VP, Western and Pacific , Insurance Bureau of Canada badams@ibc .ca
Who? What? Where? Chris Lewis
Northern Another IBAA convention has come and gone and, even after some great attempts by certain brokers, I can safely say that I’m still alive to talk about it. This year was no different than past ones in that we company people try to get to bed nice and early to ensure we make breakfast in the morning, and those pesky brokers always manage to keep us out late for “just one more drink.” I would like to be the first to thank Margo and Gerry Meyer (Whitecourt Insurance) personally for making sure I did not go to bed any time before 2:00 a.m. Much appreciated.
Convention Wrap Up The IBAA brokers’ convention was held at the Fairmont Banff Springs resort from May 5–8. I have to say this was probably one of the best brokers’ conventions I have attended. Attendance at this year’s convention was almost double what it was in 2012. Sunday. This year, the convention started with the golf tournament at the Banff Springs golf course. The course opened specifically for the IBAA convention and then closed back down for a couple days. We couldn’t have asked for better weather for the event. Congratulations to Tom Reid (Aviva) and Jeannine Chuckvar (WFG) for winning the golf tournament’s “net” scores. 38 The Alberta Broker June - July 2013
Rumour has it that someone may have even shot a 70 at this year’s tournament. Just in case you were wondering what the useless fact of the day is: on the golf course I learned from the Banff Springs maintenance people that it takes about three weeks to vacuum up all the wildlife feces that is left on the golf course during the year. The Peace Hills party night followed. The night was a huge success with hundreds of people in attendance. The Peace Hills people were all dressed up in motorcycle gear and brought in a couple motorcycles to go along with the theme. Monday started off with the presentation from keynote speaker Mike Holmes, which was well attended and very interesting. Jim Rivait (CEO of Canadian Home Builders) followed and then the IBAA AGM took place in the afternoon. The president’s gala was at night where we welcomed Gord Enders (DirectLine Insurance) into the new role of presidency. Gord did a wonderful job on his speech and I know a lot of people are looking forward to having Gord in this position. As always the president’s gala was a good time and had some great entertainment. The night was pretty tame and ended fairly early as the Moose Milk did not make an appearance this time around, which is probably for the best for everyone involved.
Tuesday was an education day with various speakers throughout the day and a trade show in the afternoon. The trade show this year was a very big hit with a ton of booths being occupied by numerous venders and companies. Peace Hills Insurance was voted the “best booth” and will be able to make a donation to a charity of its choice. Next was the hospitality night which was also a great event. Roger Marcelo (Economcial) even made his regular appearance with a Michael Jackson dance, which got everyone up and going as always. Just wanted to say congratulations to Margaret Buhay, IBAA convention coordinator, and the rest of IBAA staff who helped organize this year’s IBAA convention. As always, you did a wonderful job and keep up the great work. We look forward to the convention in Jasper next year.
What’s New? The Blue Goose gala was held on April 27, at the River Cree Casino. The event was attended by over 320 insurance industry people. This year’s charity was YOUCAN Youth services.The goal was to raise $33,000 for the charity to purchase a new Jeep. I have yet to hear a final figure; however, all indications are that the gala raised close to its goal. Since 1999, the Blue Goose organization has raised in excess of $130,000 for various charities.
Great work fellow Ganders and a special shout out to Chris Miller and everyone who helped organize this year’s gala.
Who? What? Where? When?
• Yvonne Caldwell formerly of BrokerLink joined WFG Spruce Grove.
CHRIS LEWIS Business Dev. Advisor, Peace Hills Insurance clewis@Phgic .com
• Sheldon Bos left Roberts McClure Insurance and will be starting up an office in Grande Prairie called Broker Age Insurance. • Bob Fox left Peace Hills Insurance and is off to Florida to enjoy some sunny retirement. • As I mentioned earlier, congratulations once again to Gord Enders for becoming the incoming president of IBAA. • Congratulations to Shayne Milligan (Sexsmith Insurance) on his weding to his beautiful bride Vicky.
The Alberta Broker June - July 2013 39
Know E & O Mary Ellen Martin & Elena Reznikov
A Little MORE Conversation I know you’ve said no before, but do you want this coverage?
Ensure Clients Understand What They’re Getting (or Not) No, thanks.
Are you sure? I don’t need it.
So, if X happens, this is what it will mean for you. Are you comfortable with that?
40 The Alberta Broker June - July 2013
Well...
A
recent decision was handed down in the Ontario Court of Appeal which upheld the lower court’s decision that, while the optional accident benefits were not appropriately offered or discussed with the client, the court believed the client would not have accepted the additional benefits in any event. This decision stems from a motor vehicle accident of May 2007. The claimant alleged that the insurer (a direct writer) did not properly offer the enhanced income replacement benefits to him as part of his policy. The court found that on two separate occasions the claimant turned down the optional benefits in a conversation with the insurer. It was the belief of the judge that the claimant elected to purchase the least expensive coverage available. This all means the claimant did not prove to the judge that there was a causal connection between his deficient coverage and the absence of an offer of said coverage by the insurer. The claimant argued in his appeal that he needed only to show the insufficient coverage to prove negligence and show that the insurer breached its duty of care to him as a policy holder.
The judge concluded that the claimant could not prove that he would have purchased these benefits even if they had been adequately explained to him, as the claimant had never purchased more than basic coverage in all of his auto insurance history and was unlikely to do so at the time this particular auto policy was written. As a result, he dismissed the claim. While this is an excellent outcome for the insurer, the lesson here, which must be heeded by insurance brokers, is that the client must be made to understand what his options for enhanced benefits are and what refusing those enhanced benefits will mean to him personally. The odds are too high that a simple form letter outlining the benefits either will not be read or will not be understood by many, if not most, clients. When that client suffers an un(der)insured loss months or even years later, the broker’s inability to prove that the accident benefits option was thoroughly discussed with his client, and knowingly rejected, can land the broker in expensive, protracted litigation. Form letters are one sensible way to communicate changes and options to your client, but in order to be effective they must be followed up with
documented phone calls and letters to confirm the decision made by your client. The broker who counts on his client’s recollections matching his own when the client’s health and wealth are in the balance, is bound to be disappointed. A well-documented file is the broker’s best—and sometimes only— defense! Mary Ellen Martin and Elena Reznikov, assistant vice presidents, Swiss Re Corporate Solutions This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. ©Swiss Re. All rights reserved. Reproduction of this article in whole or in part is only permitted with the permission of Swiss Re.
The Alberta Broker June - July 2013 41
Commercial Break Karen MacWilliam
Think Globally — Act Locally Ramifications of Your Clients’ Non-Canadian Operations
I
feel bombarded with messages regarding our “global community” and ways in which business has fundamentally changed to embrace globalization. From insurance audits I have conducted, it appears that the insurance industry hasn’t contemplated these concepts and we, as brokers, may be facing errors and omissions claims when losses involving our clients’ nonCanadian operations occur. The commercial insurance policy has no standard policy territory. This is true for both property and liability coverages. Nothing strikes more terror in a Canadian insurer’s world than those two dreaded words: “U.S. Operations.” I recall with amusement and horror the client who had reached an agreement to sell manufactured goods to Turkey. The good news—product liability coverage was available from their CGL insurer. The bad news—all the contracts were in Turkish. 42 The Alberta Broker June - July 2013
Fortunately, they were dealing with a global broker, who happened to have offices in both Istanbul and Ankara. Here are some additional points to consider: Call centres and foreign workers are the new world order. 25% of U.S. tax returns are completed by professional accountants, in India. DO NOT assume that just because the client has a Canadian corporate office that there is no outsourcing or foreign exposure. You need to ask questions and provide information to the underwriter. READ the policy territory in the context of EACH client on EACH policy. Some policies may have a worldwide policy territory, however, lawsuits must originate in Canada or the U.S. in order for coverage to apply. Have clients positively affirm their geographical area of operations EACH year. If your clients have an Internet presence, they are global. This is
1 2 3
obvious in the context of big oil companies, but not so with the granny at home augmenting her pension income by knitting items and selling them online. Make sure you know where products are going. Have your clients list sources of revenue by country. While I have often been tempted to do consulting work in the U.S., my professional liability insurer charges me ten times the rate for such work, making that income less desirable. If the out-of-Canada revenue is truly minor, it may not be an issue for the insurer. “Minor” for insurers will vary, but more than 10% of revenue derived outside of Canada may be material from an insurance perspective. Understand that language, time zones and prevailing law introduce risks that we may not have contemplated. My client with the “Turkish Delight” hadn’t considered the possibility of nonEnglish documents. My former stepson
4
5
was thrilled to secure a teaching job in Japan, but not as thrilled when his employment contract arrived in Japanese. If, for example, your client uses an IT firm in the U.S., personal information provided to the vendor may be subject to the U.S. Patriot Act, which overrides any existing Canadian federal or provincial privacy legislation and allows the U.S. government to access the information if there is a perceived domestic threat. Make sure that your client knows which country’s laws will apply to the contract and the intellectual property, including privacy laws. Some jurisdictions will not accept Canadian insurance policies for statutory reasons. For those of you who have bravely and gamely crossed from the U.S. to Tijuana, Mexico, in your own vehicles, you may have abruptly realized that Canadian insurers’ SPF 1 policies CANNOT provide auto coverage in Mexico. Your client should advise
6
you before embarking upon any business venture outside of Canada, and investigation into the rules and regulations regarding insurance in that jurisdiction should be undertaken. The Florida state government recently created a tempest in a teapot by briefly suggesting that holders of Canadian drivers’ licenses needed an international drivers’ license while in Florida. This has been clarified, but this is merely an example of what may be lurking in the reeds for your clients. If your client enters into a contract in a foreign country, understand that insurance limits will be interpreted to mean local currency. In the late 1990s, an organization for which I was working signed a contract requiring $650 million U.S. of general liability insurance. I felt like Austin Powers when I realized that this was one billion dollars — in Canadian currency. If the contract is for a longer duration, additional coverage may be needed.
7
8
Jurisdictions outside of Canada may require coverages not customarily arranged in Canada. In the U.S. for example, separate Workers’ Compensation/ Employers’ Liability coverage may be required. In Canada, this is not something that property and casualty brokers normally arrange. If your client has workers outside of Canada, it may be necessary to arrange travel medical coverage with coverage extensions for things like medical evacuation expenses. Do not feel inadequate if you refer your client to a local broker in the jurisdiction. Sometimes it’s best to think globally but act locally.
9
KAREN MacWILLIAM is an insurance and risk management consultant karen_macwilliam@telus.net
The Alberta Broker June - July 2013
43
Are You Too Busy to Be Productive?
Why Customers Shouldn’t Be Your First Priority By Jeff Mowatt, Influence With Ease ®
L
et’s be frank. If you work for Your first priority of the day should loyalty, reduces operating costs, makes a company, then your primary be c) working on strategic projects more money and serves as a model goal is to make money. Period. designed to prevent problems and corporate citizen. You won’t have to You may have secondary goals to serve increase profits. Typically, however, work any harder; just smarter. To find the interests of your customers and managers put off strategic work to do out how, answer the following quesemployees, and be a good corporate other work that has a deadline. They tions according to your current citizen, but your number one priority confuse urgency with importance. practices. Then read the accompanying is strictly return on investment. Profit. It’s always easy to put off work that’s suggestion for the best way to optimize When I speak at conventions and your time and effectiveness. strategic in nature because the dea meetings on how to boost line is usually non-existent or profits through customer not urgent, and strategic work A lot of managers and businessretention, I often find that requires something many of owners secretly love putting out business owners and managers us prefer to avoid — thinking. fires because it makes them feel like don’t have their priorities The problem is that if you straight. The result is they lose continually put off projects heroes. In fact, they live in a fool’s customer loyalty, face designed to increase profits or paradise, treating symptoms every increasing operating costs, reduce problems, then you scramble to replace staff end up having more crises day rather than curing the disease. turnover, and struggle just to to deal with. So you get What is normally your first task of keep up to the competition. They may caught in the vicious cycle of crisis the day? work hard and think positively but management. a) returning phone calls their impact is marginal. A lot of managers and businessb) administrative paperwork On the other hand, by simply owners secretly love putting out fires c) working on strategic projects realigning their priorities, managers because it makes them feel like heroes. d) dealing with customers can lead their company or department e) responding to employee requests in a way that builds customer and staff continued on page 46
“
”
The Alberta Broker June - July 2013
45
continued from page 45 In fact, they live in a fool’s paradise, treating symptoms every day rather that curing the disease. Doing strategic projects for the first 1–1½ hours of your day puts you in a proactive mindset. Even though crises may spring up during the day, at least you have the comfort of knowing you’re doing something to prevent these problems from reoccurring. In other words, doing strategic project work gives you a sense control and a feeling that that there is a light at the end of the tunnel. When I speak at seminars about the hour and a half of uninterrupted strategic project work, I often hear a chorus of protests from the audience. People talk about the emergencies that require their attention. The truth is, unless you work in emergency services, there is almost no problem, “crisis” or customer request that can’t be handled by someone else in the organization, or wait a mere hour and a half for your personal attention. Realistically, you’ll accomplish more in that hour and a half of strategic project work than the other seven hours of crisis management combined. Of your major project work, which do you typically work on first? a) the one with the most pressing deadline b) the one that’s the easiest to do quickly c) the one that will generate the most profits over the long term Obviously, you should work on c) the project that will generate the most profits over the long term. That’s what you’re in business for. Ironically, most managers don’t do it. They react to deadlines—submitting to the tyranny of the urgent. It’s fine to work on projects with urgent deadlines, but at least spend the first hour on the longterm profit project; then work on 46 The Alberta Broker June - July 2013
the other projects with the urgent deadlines. Administrative activities are some of the most important tasks as a manager a) true b) false Answer: b) false. Adminis-trivia is the day-to-day organizing of money (cash flow) manpower (scheduling) and machinery (inventory). It’s the tedious, mindless reporting and
paperwork that simply has to be done. And it’s the lowest form of work for any manager. It should be automated, delegated or outsourced. If you are doing this work yourself, you are a cler —not a leader. The Path of Least Resistance The problem is that adminis-trivia is seductive because it’s easy to do and it usually has a deadline; ditto for
dealing with customer requests that should be handled by your employees. They are paths of least resistance. Long-term strategic project work, on the other hand, requires concentration and vision and rarely has an immediate deadline. A classic example is developing an ongoing staff-training program. You can put it off indefinitely and still look busy doing paperwork. The consequences are that the rest of your day is spent in crises management because your front line staff isn’t properly trained.
• Property • CGL (Incl. Truckers) • Cargo • COC • Umbrella/Excess • Fine Arts • Product Recall • Cross Border
• Auto Physical Damage (Incl. Logging) • Special Events • CEF • Aviation • High Value Homes • E&O • D&O
WHOLESALE BROKER FOR BROKERS Tel: 780.442.2240 • Toll Free: 1.866.328.1314 E: nmccreedy@auroraunderwriting.com
auroraunderwriting.com
The bottom line is that to be an effective manager, you don’t have to be the most intelligent, the most enthusiastic, or even the hardest worker. You simply need to learn how to organize your working day so that you’re less busy and more productive.
Jeff Mowatt, CSP, is an international speaker and corporate trainer. His focus is “The Art of Client Service… Influence with Ease.”® For tips, self-study kits, and information about booking Jeff, visit www.jeffmowatt.com or call 1-800-jmowatt (566-9288). The Alberta Broker June - July 2013
47
Professional Development
Karen Bushie
Building Customer Loyalty Education Is the Foundation We frequently hear the term “customer service,” but what does it mean? We all have had those great experiences that help build loyalty to a particular brand or business. On the other hand, we have also had those bad customer service examples that we love to share with friends, family, coworkers or anyone who is willing to listen. I have facilitated several types of customer service courses and will often ask for participants to recall a positive customer service story and a not-sopositive one. A common theme often occurs: participants can remember the bad but struggle to remember the good. In group discussions, people get very excited and often compare how their bad stories relate. Might you have caught someone on a bad day? Does that make poor service excusable in the public eye? We all have those days when we wake up on the wrong side of the bed. Perhaps your alarm does not go off, or the shower runs cold as your teenager had a very long shower. You think your mood will just get better once you have your coffee, only to discover you are out of coffee and forgot to add it to the grocery list. On the way to work, you get cut off in traffic. Don’t those drivers know you are late for work? When you get to work, your first client of the day sits down at your desk and does not know a single detail about his existing auto insurance and wants a renewal comparison quote from you. So let’s think about it. Is the client at fault for not knowing the details of his auto insurance? No, of course not. The majority of our clients do not know what they carry for auto insurance. If they do know the limits, do they really 48 The Alberta Broker June - July 2013
know what they mean? As the insurance professionals, we must forget our bad days, put on a smile and treat our clients the way we would want to be treated. Every client who walks into your office is expecting the very best for customer service. Consistency is the key. Customers will always return to a business when they receive great customer service on a consistent basis. What makes us stand out from our competitors? How do we make reports about our brokerages part of those fantastic customer service stories?
Check out our lineup of customer service seminars and certificate programs that can help you create that lasting impression on your client, build customer loyalty and help you discover some new skills to improve overall sales and customer service:
in this three-day certificate program. Sponsored by
Customer Service for the Insurance Professional (CSIP) (certification) Work through four modules with a mentor from your office (no exams!)
Year-Round Online Captus (annual online access at a great price) See, in particular, the courses in the category Insurance Business Excellence CE for principals, managers and experienced brokers. VuBiz (another affordable online option available 24/7) In addition to
the courses in the Customer Service category, many of the other courses in the business excellence, international business, management and leadership skills, sales and marketing, small business management certificate and telephone customer contact categories apply to customer service as well. For further information about our range of customer-service courses for new and established staff, see www.ibaa.ca. Continue your career growth with our other courses and programs.
Upcoming Webinars Getting Started in Commercial Lines Series (4 modules): June 4 –13
continued on page 50
Upcoming Seminar Achieving Your Full Potential in Customer Service Edmonton: June 18 Calgary: June 20, Lethbridge: June 25 Sponsored by
Upcoming Certification Courses Professional Selling for Insurance Brokers (seminar-style certification) Calgary, June 25–27. Learn consultative selling techniques The Alberta Broker June - July 2013
49
continued from page 49 Designation and Certification Programs • Canadian Accredited Insurance Broker (CAIB) This designation is available through immersion, discussion group, fast-track and year-round self-study methods. • Canadian Professional Insurance Broker (CPIB) After completing your CAIB, take the next step with this designation available through year-round selfstudy and focusing on broker professionalism at a university level. • Canadian Certified Insurance Broker (CCIB) This highest IBAC designation is
50 The Alberta Broker June - July 2013
available year-round through selfstudy. • Introduction to Risk Management (IRM) This year-round self-study certification introduces risk management.
Online Options
VOLT—Earn knowledge and credits by watching Video Online Training (no exams!). Produced by Alberta insurance professionals, these videos are highly relevant.
Licensing
Last but not least, don’t forget our licensing programs offering many different delivery options from immersion to online and self-study.
Immersion Licensing Level 1 Edmonton, June 3 – 8 Calgary, June 17 – 22 Red Deer, July 15 – 20 Immersion Licensing Level 2 Edmonton, June 11 – 13 Red Deer, August 13 – 15 Immersion Licensing Level 3 Self-study: Coming soon.
KAREN BUSHIE Director of Professional Development, IB AA kbushie@ibaa.ca