Insurance Business Canada 2.02

WWW.INSURANCEBUSINESS.CA ISSUE 2.2 | $6.95

Canada’s best-performing brokerages revealed

ROWAN’S JOURNEY WHAT MAKES RSA CANADA TICK

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GAME ON! HOW EILEEN GREENE PRODUCES RESULTS

READY FOR RISK A CLOSER LOOK AT THE GUARANTEE’S APPETITE

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CONTENTS

STATISTICS 6 | The world’s biggest risks New WEF report says potential of fiscal crises in key economies presents the highest risk while pollution and technology accidents and abuse are other areas of concern

PROFILE 8 | Barry F. Lorenzetti: A closer look at Canada’s largest employeeowned and operated commercial insurance brokerage and consulting services firm, through the eyes of the president, CEO and founder of BFL CANADA

FEATURE 12 | Agents speak out about MGAs Underwriting responsiveness, claims responsiveness and reputation among top priorities of agents when it comes to Managing General Agencies

CORRECTIONS – IB 2.1 • In the Hot List on page 20, Philomena Comerford was the first woman chair of the Insurance Institute of Canada, and is not the current serving chair.

• In the “A job fit for Noah” article on page 38, accreditation should be given to Insurance Business, with an acknowledgement to Ken Larsen of IDSO Consulting Services, who provided technical assistance and documented the drying efforts of the project in conjunction with equipment provided by DryTech International, Inc., and claim/ project management by Rocky Cross North of Calgary, Alberta. Jeremy Abellera was incorrectly identified as the author, but had only shared the Mr. Larsen’s content.

20 COVER STORY

Canada’s Top 10 Brokerages 2014 Insurance Business ranks Canada’s brokerages to find the top performer in the country. Who came in at No. 1?

21 | Methodology 21 | Top 5 in each category 22 | Profiles of Top 10 32 | Beyond the numbers 32 | The winning formula 33 | List of winners

PROFILE 16 | Rowan Saunders: RSA Canada has doubled in size since Saunders took over in 2003, and he’s not done yet. He speaks out on growth opportunities, a new corporate culture, what can be learned from tech giants and how insurance can get “sexier” to attract new talent

Q&A 36 | Alister Campbell: Ready for risk The Guarantee Company’s CEO shares his vision of where North America’s first bonding company is headed with Insurance Business’ Donald Horne

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CONTENTS

PRODUCER PROFILE 40 | Eileen Greene: At the top of her game HUB International Limited producer Eileen Greene’s excellence at building client relationships has led to great referrals, plenty of cross-selling, sales awards and even getting to hang out with Lloyd’s of London CEO Inga Beale

BUSINESS STRATEGY 46 | How to develop a simple social media plan You might be daunted by the prospect of getting social media right for your brokerage. Muhammad Yasin presents a simple guide to get you on your way 50 | Plan to succeed A good plan can act like a compass, not only helping you stay the course, but also getting you where you want to go 54 | 8 ways to mediocre marketing “Mediocre” – that’s not exactly what brokers like to hear, but if you’re doing these “don’ts,” writes coach Doren Aldana, you may be writing that all over your 2014

50 60 | Why you need motivated and capable employees Mark Oliver explains why businesses need to understand the basics of human motivation in order to increase employee satisfaction and productivity in the workplace

REGULARS 4 | Editor’s letter Common denominators 63 | Favourite Things Peter DaSilva, Cornerstone Insurance Brokers 64 | Expert Advice Louis Vatrt: The broker’s role in maintaining a powerful 3-way partnership

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property

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auto

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business

I can’t think of a company I’d rather deal with than Economical in a disaster.

Scott MacEwan, BMF Insurance

Economical left a really good feeling for the clients and for us as brokers.

Beth Feagan, BMF Insurance

Your clients count on you, especially when their lives have been turned upside down. When a tornado hit Goderich, Economical® was on site — actively supporting brokers like Scott and Beth and offering policyholders help that matters.

Watch Scott and Beth’s story at economicalinsurance.com.

The Economical brand includes the following property and casualty insurance companies: Economical Mutual Insurance Company, Perth Insurance Company, Waterloo Insurance Company, The Missisquoi Insurance Company, Federation Insurance Company of Canada. ©2014 Economical Insurance. All rights reserved. Economical® and related trademarks, names and logos are the property of Economical Mutual Insurance Company and are registered and/or used in Canada. All other trademarks are the property of their respective owners.

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CONTENTS

Common Denominators COPY & FEATURES

SENIOR EDITOR Vernon Clement Jones MANAGING EDITOR Brian Anderson ASSOCIATE EDITOR Donald Horne CONTRIBUTORS Danielle Wade, Julia Palmer, Nikki Heald, Darren Trott, Therese S. Kinal, Peter Bowman, Steve Yendall PHOTOGRAPHIC CONTRIBUTOR Ted Chai

ART & PRODUCTION GRAPHIC DESIGNER Joenel Salvador

SALES & MARKETING NATIONAL ACCOUNT MANAGER Jesse Rumm ASSOCIATE PUBLISHER Trevor Biggs GENERAL MANAGER SALES John Mackenzie MARKETING AND COMMUNICATIONS Claudine Ting PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGER Marni Parker EVENTS AND CONFERENCE MANAGER Chris Davis

Editorial enquiries tel: 416 644 8740 • Ext: 231 donald.horne@kmimedia.ca Advertising enquiries tel: 416 644 8740 • Ext: 237 jesse.rumm@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 insurancebusiness.ca Copyright is reserved throughout. No part of this publication can be reproduced in whole or in part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as IB magazine can accept no responsibility for loss.

The most successful companies in any industry or market niche often share many of the same characteristics. They recognize the same challenges and rise up to meet them.

One of the most obvious challenges threatening the future of the independent insurance distribution channel is difficulty in recruiting, developing and retaining talented producers.

It became very apparent in putting together our rankings of the Top 10 brokerages in Canada for this issue’s cover story that the elite brokerages are all very focused on this subject. Once we ranked our Top 10, from among all of the nominations we received, we asked them all the same list of questions for our one-page profiles, designed to provide insight into what makes them successful. Just about every one of them made mention of how they recognize the importance of recruiting top talent and investing in that talent to give their brokers the best opportunity to succeed.

After all, it is people who drive the success of any brokerage. “Our business is very much about human capital. The successful development of our business is tied to our investment in our people,” says Shawn DeSantis, president and CEO of Toronto-based brokerage Jones DesLauriers.

The companies on our list are committed not only to recruiting top new talent, but once they get this talent in the door, they commit plenty of resources to training and mentoring new brokers. This gives them the best chance to make it over the long term in an industry where the vast majority won’t make it through the first year.

This concerted effort pays big dividends in generating and retaining business, and it’s no mystery as to why. Brokers who are well-trained and highly engaged, who truly know the intricacies of their business invariably put themselves in a position to provide significant value to their clients. That leads to high retention rates and a steady stream of high-quality referrals.

A strong commitment to professional development also provides a competitive edge against competitors who do not properly invest in their employees.

Another apparent trait of top brokerages? Fostering an innovation-oriented and entrepreneurial culture where aspirational brokers are rewarded for their efforts. Once you have developed a team of talented brokers, keeping them around means allowing them space to grow.

I hope you’ll spend a few minutes reading through the profiles of the brokerages that made our inaugural Top 10 list, which begins on page 20. I think you’ll find many common denominators that demonstrate what it takes to become an elite operation.

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Cheers, Brian Anderson Managing Editor

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CONNECT

Contact the editorial team:

brian.anderson@keymedia.com

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THE WORLD’S

STATISTICS

BIGGEST RISKS

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New WEF report says the potential for fiscal crises in key economies presents the highest risk, while pollution and technology accidents and abuse are other areas of concern

TOP 10 GLOBAL RISKS OF HIGHEST CONCERN IN 2014

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Fiscal crises in key economies

Severe income disparity

Global governance failure

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Profound political and social instability

Structurally high unemployment/ underemployment

Failure of climate change mitigation and adaptation

Food crises

Water crises

Greater incidence of extreme weather events

Failure of a major financial mechanism/ institution

The decline of trust in institutions, lack of leadership, persisting gender inequalities and data mismanagement were among trends to watch, according to survey respondents. Experts added further concerns including various forms of pollution, and accidents or abuse involving new technologies, such as synthetic biology, automated vehicles and 3D printing.

The World Economic Forum (WEF) recently produced a report examining the 31 biggest risks facing the world today, intended as a “stimulus for discussion” for world and corporate leaders at January’s WEF event in Davos, Switzerland. It was put together with the assistance of Marsh & McLennan Companies, Zurich, Swiss Re, the National University of Singapore, Oxford University and the University of Pennsylvania.

Source for all data: World Economic Forum Global Risks Report

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INSURANCEBUSINESS.CA

Fiscal crises, water crises and climate change top the global risks landscape

Fiscal crises Climate change Water crises

Unemployment and underemployment

5.0

Critical information infrastructure breakdown

Biodiversity loss and ecosystem collapse Cyber attacks

Political and social instability Weapons of mass destruction

Income disparity

Failure of financial mechanism or institution

Global governance failure Pandemic

Average 4.56

Extreme weather events

Natural catastrophes

Food crises

Antibiotic-resistant bacteria

Liquidity crises

4.5

Data fraud/theft Man-made environmental catastrophes

State collapse Terrorist attack

Oil price shock

Interstate conflict

Economic and resource nationalization Corruption

Failure of critical infrastructure Decline of importance of US dollar

Impact

4.0

Chronic diseases

Mismanaged urbanization

Organized crime and illicit trade 3.5

Likelihood

4.0

4.5

5.0

5.5

4.31 Average

The risks considered to be high impact and high likelihood are mostly environmental and economic in nature: greater incidence of extreme weather events, failure of climate change mitigation and adaptation, water crises, severe income disparity, structurally high unemployment and underemployment, and fiscal crises in key economies.

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FEATURE / BARRY LORENZETTI

–

THE PATH TO BECOMING A

TOP

BROKERAGE

For Barry F. Lorenzetti, the president, CEO and founder of BFL CANADA, there is one path to walk to becoming a top brokerage.

“There is no secret to BFL CANADA’s success – it’s simply hard work and professional dedication,” says Lorenzetti, “the same hard work and professional dedication that our clients invest in their own organizations.”

It is a give-and-take process, he points out, where the company contributes to the client’s success, and they in turn contribute to BFL’s.

“We are passionate about finding the right solution, overcoming challenges along the way and, in the end, delivering results,” Lorenzetti says.

But in real terms, like other brokerages, it is ensuring that they take an active 8 | MAY 2014

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8,25x

AlwAys one step AheAd Follow our lead to ensure the success of our industry and the peace of mind of our clients. BFL CANADA is the country’s top independent insurance brokerage and consulting services firm for leading companies here at home, in the US, and over 120 countries worldwide.

Find out more at bflcanada.ca

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FEATURE / BARRY LORENZETTI

“There is no secret to BFL CANADA’s success – it’s simply hard work and professional dedication – the same hard work and professional dedication that our clients invest in their own organizations” part in the community. BFL CANADA’s community involvement provides the opportunity to become closer to clients and help the community.

“Neither I nor BFL have forgotten the community,” says Lorenzetti. “As citizens, we are committed to helping others and to giving back to the community.

As corporate citizens, corporate social responsibility is an integral part of our business philosophy.”

BFL CANADA is the largest employee-owned and operated commercial insurance brokerage and consulting services firm in Canada, with nine offices across the country. The company operates two divisions: 1. insurance brokerage, surety bonding and related services, and 2. employee benefits and consulting services.

The company is also one of the founding partners in the Lockton Global partnership, providing risk management, insurance, and employee benefit solutions for multinational companies. BFL’s portfolio of international clients is growing significantly, as it is the case all economic sectors due to globalization.

The culture at BFL CANADA is designed to foster growth, development and opportunities for its employees, with an environment that promotes innovation and creativity. The company encourages employees to obtain high-level designations and offers in-house training sessions. Lorenzetti has also created a share structure that creates succession and equity opportunities for key performers and ensures that employees have a vested interest in the company and its future.

LOOKING TO THE FUTURE What do you see happening in 2014?

Continuing uncertainty surrounding TRIA; increased retentions for many businesses and ERM taken to a more scientific approach within corporations.

Measuring risk in financial terms will be a strong point of the day; and there will be a continuing trend on cat bonds.

What needs to be changed in the insurance industry?

We need to regulate Insurers purchasing or taking a majority position in Insurance brokerage companies. Since perception is almost a reality the consumer needs to be made fully cognizant of these moves. On the surface someone may refer to this as a conflict of interest.

What products or upsells are drawing client interest?

Cyber Risks, due to the heightened attention to the product brought on by the recent Target breach of privacy. Product Recall is garnering more attention, especially in the food and manufacturing industries. Both are often not sought after products that expect to see a rise in interest and need.

Legal Services/coverage is being purchased either through DAS as a specialty cover or being offered and embedded into liability coverage. This has an effect both on commercial and personal lines buyers.

VITAL STATISTICS: BFL CANADA Founded: In Montreal in 1987 by Barry F. Lorenzetti Locations: Halifax, Quebec, Montreal, Ottawa, Toronto, Winnipeg, Calgary, Kelowna, and Vancouver Licensed brokers: 341 Premium volume: $560 million Ownership: Privately held and owned by employees Website: www.BFLCANADA.ca

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FEATURE / MGA SURVEY

WHAT BROKERS CRAVE FROM MGAS Faster underwriting More responsiveness Better automation Access to more carriers Specialized knowledge

BROKERS SPEAK OUT ABOUT

MGAs Survey says: underwriting responsiveness, claims responsiveness and reputation among top priorities of brokers when it comes to Managing General Agencies

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INSURANCEBUSINESS.CA

Fast underwriting turnaround and a high level of responsiveness are what brokers most look for in a Managing General Agency relationship, according to a new survey conducted by Insurance Business.

Hundreds of brokers participated in the survey, which asked them to rate the importance of key aspects they look for in an MGA, including pricing, automation, underwriting turnaround, reputation, marketing support, claim responsiveness and range of carriers.

The survey, conducted via an online questionnaire in January and February, also asked brokers to rate the performance of their own MGAs and provided an opportunity to provide specific details as to how they think their MGAs could improve their service and offerings.

Respondents weren’t shy about letting us know what they really think. While a few commenters praised their MGAs or expressed satisfaction with their MGA relationships, most survey respondents took the opportunity to let us know where they feel MGAs are coming up short.

As you might expect, several recurring themes emerged in analyzing the open-ended responses. For one, brokers made it known that they crave strong relationships with underwriters. They also want faster underwriting and more responsiveness, as many expressed frustration with MGAs that are slow to provide quotes or endorsements. They want them to be more proactive, provide access to more carriers, and have specialized knowledge. More automation was another frequent theme, and judging by the responses we received, MGAs really need to kick it into a higher gear when it comes to technology. Several comments complained that their MGA’s technology doesn’t mesh with their technology, particularly when it comes to agency management systems.

There were a few interesting differences in the results between the two surveys. While underwriting responsiveness/turnaround times and claim responsiveness/turnaround times were the two most important things brokers look for in an MGA, brokers think their own MGAs are performing better in other areas. Brokers rated their own MGAs better in terms of their reputation (7.32 out of 9), premium pricing (6.90), and range of carriers offered (6.86) than they did for underwriting responsiveness/turnaround times (6.71) and claim responsiveness/turnaround times (6.63).

“Marketing support” ranked as the least important in both surveys. Brokers rated their MGAs a 5.99 in this category, while saying marketing support was 6.82 out of 9 in terms of overall importance. “Automation,” while mentioned as an area of concern by many survey

commenters, was listed as the sixth most important (7.23) and also ranked sixth in the among the seven categories (6.29) when brokers rated their MGAs. Clearly, broker priorities when it comes to MGAs center on the underwriting, claims and responsiveness.

UNDERWRITING RELATIONSHIP IS KEY According to the survey, the most important component of an MGA’s roles for brokers is underwriting responsiveness and turnaround times. Sixty-two per cent of survey participants rated this as a 9 on a scale of 1-9, indicating how important brokers feel about this function. Another 25% rated it an 8, meaning nearly nine out of 10 respondents rated it an 8 or higher.

Many brokers expressed the sentiment that it is crucial to have an underwriter who you can talk to that knows the products and markets he or she represents, and equally crucial that they get back to you with a quote or confirmation of binding in a timely fashion. If you have a relationship with an underwriter who is responsive, creative, and experienced, you’ve hit a home run, and should do everything you can to maintain that advantage.

Larry Ryan, president of the Frank Cowan Company, says the hallmark of a strong MGA is the ability to provide true one-stop shopping. “Our brokers and clients can phone up, we do the underwriting here; we do the risk management here; we do all our claims management here.”

Specialized knowledge is another way MGAs can

8.36

Importance rating brokers place on underwriting responsiveness and turnaround time from MGAs. Brokers in our survey rated it as the single most important quality to look for in an MGA, one half-point higher than claims responsiveness and turnaround time, which ranked second.

ON A SCALE OF 1-9, HOW IMPORTANT ARE THE FOLLOWING ASPECTS OF WHAT AN MGA OFFERS? Underwriting responsiveness/ turnaround times

8.36

Claim responsiveness/ turnaround times

7.84

MGA reputation

7.76

Range of carriers offered

7.62

Premium pricing

7.29

Automation

7.23

Marketing support

6.82

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FEATURE / MGA SURVEY

provide value for brokers.

“MGAs that have a real specialty that is unique will always survive and do well,” says Philip Cook, CEO of Omega Insurance Holdings, Toronto, Ont. “But the runof-the-mill MGA with a conduit into 30 companies, compared to a broker who has three or four, they aren’t really needed as much as they used to be.”

Chris Westrop, commercial department manager with Park Insurance Agency in British Columbia, says his company frequently relies on MGAs, particularly for E&O products.

“We do a significant amount of E&O and find that the MGA provides very competitive pricing,” Westrop says, adding that he finds their MGA is very willing to work with them to find a solution to a client’s needs.

More than any other comment topic, survey respondents focused on the importance of working with highly competent underwriters.

CLAIMS RESPONSIVENESS CAN SET AN MGA APART While underwriting responsiveness and turnaround times was rated as most important in the survey, claim responsiveness and turnaround times (7.84 out of 9) edged out MGA reputation (7.76) and range of carriers offered (7.62) as the next most important things brokers look for in an MGA. Perhaps no other trait can set an MGA apart from its competition better than how – and how quickly – it handles a claim. Beyond that, brokers said some MGAs drop the ball by failing to send them claim acknowledgements and claim closing notices.

ON A SCALE OF 1-9, HOW WOULD YOU RATE YOUR MGAS IN THE FOLLOWING AREAS?

7.32

MGA reputation Premium pricing

6.90

Range of carriers offered

6.86

Underwriting responsiveness/ turnaround times Claim responsiveness/ turnaround times

6.71

6.29

Marketing support

5.99

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AUTOMATION NOT HACKING IT While the topic of “automation” ranked higher than only “marketing support” when survey respondents cumulatively ranked the importance of and how their MGAs rate in the area, the subject did receive plenty of attention from commenters.

Based on their experiences with other industries, today’s consumers expect a high level of automation capabilities when dealing with their insurance needs.

Many brokers say they feel the industry hasn’t kept up with other industries when it comes to automation.

Judging by the comments of our survey respondents, the biggest problem is that far too many MGAs lack the ability to interface with agency systems. Many brokers said they find it frustrating to submit data that winds up on printed material but not in a database.

All too often, brokers and MGAs are not on the same page, as it were, when it comes to synchronized technology.

Some MGAs are ramping up their automation capabilities by offering things like online rating tools that allow brokers to generate a quote and binder in minutes – which highlights the “speed of business” that MGAs have the potential to deliver.

“It is absolutely essential to have a high quality product that can deliver a quick turnaround,” says Frank Cowan’s Ryan. He points to the second generation of his company’s iQuote (short for Instant Quote), which is all broker-driven and useful for clients looking at less than $10,000 in premium. “They can input all the information through our system and get a quote in 10 minutes.”

THE TREND TOWARD SPECIALIZATION

6.63

Automation

Finally, many brokers lamented that they rarely see a rep from their MGA, and there is generally little attempt to understand a broker’s type of business, goals and aspirations. This sentiment was summed up nicely in a survey comment from a broker: “How can you help someone be successful and in turn increase your own success if you never determine what your client wants? Producers are an MGA’s client, though you’d never know it.”

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Most brokers have certainly noticed that MGAs more and more are specializing in certain market niches in an effort to differentiate themselves from competitors.

Rick Orr, president of Orr Insurance Brokers in Stratford, Ont., says his company uses MGAs primarily for niche products that are hard to place, such as liquor liability, sports liability, jewelers block or belowstandard properties, for example.

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INSURANCEBUSINESS.CA

BROKERS TO MGAs: 12 WAYS YOU CAN DO BETTER The following dozen comments are from brokers who completed our MGA survey, providing some insight on key areas of concern and how MGAs can be better partners to brokers:

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“By having a better variety of carriers for all markets, not just a variety for one targeted market. Also, better communication via e-mail with regard to changes and revisions, non-renewals and lapses in coverage.”

2

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“With social media and 24-hour access to websites, clients are available to us 24 hours a day.

We need MGAs to provide online application processing at the very least.”

“Marketing support and, especially, claims…

Being the best at this portion is what makes agencies stand apart.”

3

“Most of the time I just want to know what is going on with my case and I don’t feel like I should have to ask. It should be at my fingertips at all times.

Technology is always improving and unless someone steps in to show me what’s new, I will continue to use what I have. So continuing education as to the improvements they bring to the table would be great.”

4

“Turnaround time and responsiveness. If you don’t have a ‘connection or rapport’ with an underwriter, it seems like turnaround is slow.”

5

“Clear appetite guidelines and working with brokers on service. I am working with two MGAs now and both of them have no follow-up. I submit for a quote and I follow up. I submit an endorsement and I follow up. If I did business like that I would be out of business.”

“We also use an MGA for marine insurance,” says Orr. “It’s actually surprising how many different MGA’s you end up using with very small volumes scattered all over the place.”

In order to compete, many MGAs are finding they need to carve out a niche with particular expertise that they can market well and place business.

“An MGA is all about being a specialist in a niche market,” says the Frank Cowan Company’s Ryan.

“We’ve been in the public entity municipal business for about 85 years. So we know our client, and our historical and long-term objective is we want to be a business partner with our clients. Sometimes our clients are brokers, and sometimes our clients are our end-users. I use that term interchangeably, and generically.”

Another example of market specialization? Energy, according to Andy Holmes, underwriting director at CFC Underwriting, a top Lloyd’s MGA that specializes

“Developing their website to allow us to see what is needed for an upcoming renewal and to view and print policies and endorsements.”

“Education and legislative updates would be helpful as well as sales ideas and approaches.”

“Need to provide better support in compliance, ancillary products, and a good way to help us manage our clients. Perhaps an agent portal that offers a composite bill if client has multiple carriers.”

10

“Marketing co-op, automation improvements (getting renewals, loss runs and endorsements out sooner), and lower fees or better commissions!”

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“Having more direct-billed options. Keeping in touch with us as to what their appetite of business is, what they have recently written and what they do well on.”

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“Anyone can run quotes, but it’s the problemsolving abilities and creative thinking of the MGA staff who keep me returning”

“Confirmation of binding. I’d expect to receive confirmation and a binder within 24 hours. One particular MGA takes a minimum of 72 hours to send confirmation.”

in developing and distributing insurance products for specific niche markets. “We see great opportunities in the Canadian oil and gas sector for MGAs,” Holmes says.

Many of our survey respondents expressed a keen interest in working with MGAs that have specialized knowledge and a high degree of technical expertise in a niche area, and it is a primary way an MGA can really add value for broker and the broker’s client.

At Frank Cowan, Ryan says the MGA uses its expertise in the municipal finance sector to advocate for clients in this area, demonstrating that they are a true business partner.

“We lobby the provincial government for legislative change,” says Ryan. “At the end of the day, municipalities are paying far too great a proportion of the cost of a claim. The amount of liability that is allocated to municipalities has been increasing substantially; as has the cost of a claim.”

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PEOPLE / ROWAN SAUNDERS

Leading a ‘TRANSFORMATIVE

JOURNEY’

RSA Canada has doubled in size since president and CEO Rowan Saunders took over in 2003, and he’s not done yet.

Here he speaks out on new growth opportunities, a new corporate culture, what the industry can learn from tech giants and how insurance can get ‘sexier’ to attract new talent 16 | MAY 2014

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INSURANCEBUSINESS.CA

It’s no stretch to say Rowan Saunders is enjoying a successful run since taking over as President and CEO of RSA Canada in 2003.

The Canadian unit has been a bright spot for London, UK-based multinational general insurance company RSA Insurance Group plc, which operates in 32 countries. While the parent company, which celebrated its 300th anniversary in 2010, had a tumultuous 2013 that saw shares drop 28% thanks in part to irregularities in its Irish division and shakeups in upper management (including the departure of group chief executive Simon Lee), RSA Canada, meanwhile, continues to hum along. The unit has seen a remarkable turnaround during Saunders’ tenure, essentially doubling in size since 2004.

Saunders says RSA Canada has been on a transformative journey. “Within a decade we moved from the No. 10 spot to being a top-three insurer,” he says, adding that the significant growth has come both organically and through acquisitions. This includes three major acquisitions that expanded RSA’s national footprint and strengthened its broker network: CNS in B.C., national specialty player GCAN, and Quebec-based L’Union Canadienne.

“With the latter, we rounded out our proposition to include end-to-end insurance across all lines of P&C business (Personal through to Global Specialty Lines), from coast to coast,” Saunders says.

Since joining RSA in 1987, Saunders worked his way up by holding progressive leadership positions in the areas of underwriting, marketing, sales and finance. He has served as president of Agilon Financial, an affiliated company of RSA Canada, where he was responsible for the company’s strategic development, operations and overall financial performance. He served as vice president, personal insurance for RSA, and also held the position of vice president, Western Assurance Co., an Ontario-focused unit of RSA Canada.

Saunders says he has enjoyed all his roles at RSA, each with its own unique challenges that have contributed to his development in different ways, but the technical underwriting role stood out. “I really enjoyed fulfilling the business proposition and getting the chance to be at the front of driving our products in the market place,” Saunders says. “There is the thrill of chasing the big opportunities, negotiation and closing the deal, and the satisfaction when you land a good account.”

Saunders recently spoke with Insurance Business about a wide variety of issues, including the evolution

of how RSA works with broker partners, challenges facing the commercial lines business, what can be learned from other industries, and how to make the industry a little “sexier” in the minds of young professionals.

How the broker proposition has evolved at RSA Canada Rowan Saunders: Part of our business transformation has included a greater refinement of how we want to work with our broker partners. We have a select network of approximately 900 brokers with whom we prefer to do business. Taking this targeted approach allows us to focus more strategically on where we want to grow, and on building lasting partnerships that will help us to accomplish this. The broker has been one of our most important allies in driving our business forward and we’re deeply invested in continuing to build on these relationships.

Brokers will continue to play a very critical role in helping the contemporary insurance customer to navigate insurance. The broker is there to help ensure clients understand what they are buying and what they can do to protect their homes, businesses and other valuable assets.

While people have grown accustomed to 140-character-or-less interactions, the conversation about insurance will always require more than that at some stage in the insurance cycle. RSA believes strongly that the broker is a critical touch point for customers and we’re heavily invested in working with brokers to strengthen and perpetuate this role.

For RSA that includes investment in meaningful broker education opportunities that include important concerns like succession planning. In addition, we support key initiatives like IBAC’s Broker Identity Program, which promotes the role of the insurance broker to customers across Canada.

What the insurance industry can learn from other industries RS: My role as a Board member of Equitable Bank has provided me with a number of insights into the banking industry and the strategies and tactics that banks in Canada are using. The banks have used their large scale to create efficiency advantages. Large onshore call centers to process consumer requests and cross sell products enables them to operate from a low-cost platform.

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PEOPLE / ROWAN SAUNDERS

NEW SPACE, NEW CULTURE Approximately 500 RSA employees moved from a 60-year-old facility into a brand new Canadian headquarters building in downtown Toronto in late 2012. The change was more than just a physical one for the company, which President and CEO Rowan Saunders says was looking to transform its corporate culture. It seems to be working.

The eco-friendly, LEED-certified 26-storey, 600,000-square-foot tower encompasses open floorplans to encourage collaboration and break down barriers.

“Our corporate culture has evolved in a very positive way since we’ve moved into 18 York,” Saunders says. “The very open concept design, incredible natural lighting and ‘conversation-enabling’ workstations all help in building an extremely collaborative environment.”

The visible transparency of offices within the new space has transformed the look and feel of the traditional old-world insurance office into more modern times, Saunders says, demonstrating a clear willingness to embrace change and be on the leading edge of a changing world. “While we proudly display artifacts and mementos attributed to our long and impressive heritage, the contrast clearly demonstrates we are willing to grow and evolve to be able to provide the best possible services,” Saunders says.

More meeting rooms, soft seating areas, open spaces, the ability to simply be mobile between floors and sites, along with the technology improvements (VoIP phones, wireless capability, video conferencing) have all made information more quickly accessible and working “anywhere” a reality.

“Moving into a LEED certified building prompted the need to centralize our printing equipment into specific print rooms and all but eliminate desktop printers thereby reducing our carbon footprint and equipment maintenance costs,” Saunders says.

The new corporate culture immediately facilitated a number of new product discussions, and Saunders says RSA ultimately moved forward with creating and launching its new GSL Surety product in December 2013. “The new culture promoted strong team work between Finance, IT, Sales & Marketing, Claims, Governance and our underwriting team to ensure a very well planned and executed launch. Our brokers have already provided very positive feedback that RSA Surety is a very strong new proposition to the market.”

Many teams have found that the new space has been a great enabler of creative idea sharing, allowing a more integrated approach to building and enhancing the company’s broker proposition. “Cross-functional teams have been better able to work together to come up with innovative programs and initiatives that benefit our brokers and enhance our working relationship with them,” Saunders says.

lenge for both the Insurance and Banking sectors.

We have a lot to learn from the Technology industry in this respect. The customer expects every company to be available for business at any given time and accessible anywhere – whether via phone, online, smartphone, tablet, etc.

Companies like Google and Amazon are exemplary of how Big Data is shaping commerce today.

Their use of sophisticated data analytics is an excellent model for any company that wants to use valuable information about consumer behaviour to manage the product life cycle and continually come up with better ways to serve customers.

Innovation and time to market of new products needs to be improved to react to changes in consumer demand. The Apple mantra of providing products to consumers that they don’t even know they need can be applied to insurance. The significant flooding events in 2013 reiterated the belief that Canada is significantly underinsured, and customer awareness of their lack of insurance is low.

The broker model presents a tremendous opportunity to take customers on that journey of understanding why they need insurance and helping to clarify what their policies entail and their personal roles in risk management. The broker also plays a key role in making it easy for them to access the products and services they may not even know they need.

Biggest challenge in commercial lines RS: The commercial market is highly competitive and we continue to face soft market conditions that really restrict the negotiating power of brokers and insurers, making it more difficult to attract and retain long term, profitable books of business.

The global specialty lines market in Canada (worth approx. $7 billion), is made up of global carriers who have the capacity, expertise and global broker relationships to successfully compete in this segment.

In the small- to mid-size commercial market, insurers are deploying more capacity as personal lines margins are squeezed. There are a number of strategic issues that need to be navigated. The distribution of the product is changing as customers are demanding more/easier ways to do business with the insurance companies. The small commercial segment will likely become more of a commoditized product similar to the trend in personal insurance.

In terms of small- to mid-size commercial insurance, we are addressing the issues by being clear on

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INSURANCEBUSINESS.CA

WHERE RSA IS GROWING ROWAN SAUNDERS ELABORATES ON SOME SPECIFIC AREAS OF GROWTH AT RSA CANADA

ENERGY/MINING

Our acquisition of GCAN in 2011 played an important role in enhancing our capabilities within the Global Specialty Lines (GSL) space.

We’re keenly focused on growing and expanding in areas where we can leverage our core capabilities and take advantage of our national presence to make key hires in important markets across Canada. Since the acquisition of GCAN our Energy/Mining unit has grown considerably, by more than 20%.

We now write many more lead lines in the that space and we’ve effectively managed the risk with the addition of three very specialized engineers, one based here in Toronto and two based in Calgary. We also write complex power-generation risks, chemical risks as well as energy and utility related construction projects in that unit.

We’re now considered a key go-to market in Canada.

EQUIPMENT BREAKDOWN INSURANCE

Another center of excellence within GSL is our Equipment Breakdown Insurance business, where we are the No. 2 writer in Canada. That line of business has also expanded quickly, by more than 40% since 2010. Our strength is in our national footprint with EBI underwriters in every office, and our

our appetite and on where we want to grow with our brokers. We continue to invest in our broker platform to increase the ease and speed of both doing business and making decisions.

From a GSL perspective, this includes forming tripartite relationships with brokers and clients that allow all parties to work together to create risk management solutions that work well. It also involves delivering strong technical expertise, including highly skilled underwriters and risk control consultants that bring a deep knowledge of the client’s industry.

Attracting Gen Y talent to the industry RS: Organizations need to make sure their employee value proposition is strong. Gen Y’s respect organizations with clearly articulated visions, a strong purpose, shared values and clear career path options.

Corporate responsibility is something that is clearly a value of the younger generation and needs to be clearly integrated into the way companies operate and value their impact on society.

Gen Y’s value a good work-life balance. Work-life balance means something different to everyone, so

engineering scale with the ability to use our own staff for jurisdictional inspections in every province. We actively write complex manufacturing risks, mining risks and power generation risks, along with many others.

E&O/D&O

Our Profin team (E&O/D&O) has also performed very well over the past three years.

Our D&O team actively writes Directors’ & Officers coverage for private and publicly traded Canadian companies that are Canadian or U.S. listed. Our D&O business grew by 24% in 2013.

MARINE INSURANCE

We’re the No. 1 Marine insurer in Canada through Coast Underwriters, which we acquired more than 15 years ago. Coast has an excellent reputation in the market and RSA works closely with the Coast team to leverage the strengths of each organization.

SURETY

We also did a great deal of work in 2013 to launch a Surety business, supported by a national practice leader based in Vancouver and an Ontario-based underwriter. It’s a great new line to support our Contracting and Project Construction propositions.

being successful at providing work-life balance means providing the flexibility for each employee to determine what this means to them within the parameters you set. Providing tools and a culture that enables this is imperative.

Engagement is very important to the younger generation. Managers need to give them autonomy and assignments they feel are complex and challenging and that are an extension of their education. They prefer working towards a goal with a high degree of independence while in a collaborative work environment where they feel free to seek help without fear of reprisal from their peers and superiors.

Insurance is what I would call a “hidden gem” within the financial industry. Insurance is an exciting and dynamic industry, and insurance professionals can build an immensely rewarding career. I think we have an opportunity to make the industry a little sexier in the eyes of young professionals. You can explain underwriting to young generation as fastpaced, client-focused, requiring complex quantitative/analytical skills, attention to the detail and ability to manage a book of business.

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SPECIAL REPORT / TOP BROKERAGES

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Insurance Business ranks Canada’s brokerages to find the top performer in the country. Who came in at No. 1?

2014

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INSURANCEBUSINESS.CA

TOP 5 – BY CATEGORY Total revenue

Welcome to the 2014 Insurance Business Top 10 Brokerages special report.

After seeking out, receiving and vetting nominations from more than 90 independent brokerages from across the country, our research has identified a company worthy of the title of Canada’s Top Brokerage.

It’s not just about the biggest gross written premium though. Our unique “handicap” methodology means we can measure brokers large and small on a level playing field to find the nation’s best performers.

Think your firm belongs among our distinguished list? Make sure your brokerage is nominated for next year’s second annual rankings, which is sure to garner many more entries than this year’s inaugural competition. We appreciate all the effort involved by brokerages that put themselves forward through this year’s process, and hope readers enjoy the insight provided by our top honourees.

THE METHODOLOGY The Insurance Business ranking system is an objective means of ranking the best performing insurance brokerages.

Each brokerage that was nominated was required to supply its own details to Insurance Business to be eligible. In total, there were seven criteria, covering: • Total revenue • Policies written • Revenue per broker • New revenue per broker • Revenue from new policies • New clients per broker • Company growth Each brokerage was ranked in each of these measurements and the sum of all of their rankings were added together. The brokerages were then placed in order of who had the lowest overall score (think of it as a golf score, where having higher rankings in each section means you have a lower total score).

By ensuring that the majority of measurements rewarded business per broker rather than just critical mass, the very best brokerages were rewarded rather than just those producing a large amount of business.

Top 5 avg.: $90.02 million

1 Jones DeLauriers 2 Cowan Insurance 3 My Insurance Broker 4 The Magnes Group 5 Rhodes & Williams Top 5 avg.: 32,059

Policies written 1 Cowan Insurance 2 Jones DesLauriers 3 The Magnes Group 4 Rhodes & Williams 5 Butler Byers Insurance

Top 5 avg.: $235,808

Revenue per broker 1 My Insurance Broker 2 Gougeon Insurance 3 Highcourt Partners 4 Jones DesLauriers 5 Bryson & Associates New revenue per broker

Top 5 avg.: $85,991

1 My Insurance Broker 2 Highcourt Partners 3 Carr & Company 4 Sharp Insurance 5 Darling Insurance Revenue from new policies

Top 5 avg.: $2.85 million

1 My Insurance Broker 2 Jones DesLauriers 3 Cowan Insurance 4 Darling Insurance 5 The Magnes Group New clients per broker

Top 5 avg.: 96.3

1 Sharp Insurance 2 Archway insurance 3 Mitchell & Whale 4 Butler Byers Insurance 5 Wilson Insurance Company growth (2013 clients over 2012 clients)

Top 5 avg.: 2,812

1 Archway Insurance 2 Sharp Insurance 3 Butler Byers Insurance 4 Wilson Insurance 5 My Insurance Broker

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10 “With our experienced, diverse, bilingual staff, we are able to connect with the client and make sure they understand what they are paying for and how they can benefit from it”

CARR & COMPANY INSURANCE BROKERSA Head office: Ottawa Founded: 1954 Website: www.carrandcompany.ca Matthew Carr, President and COO What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

It’s a great honour. After all the hard work put in by our team over the last two years to get started again, getting back to our core values as a brokerage has really meant a lot. I’m proud to be able to carry on the legacy my father created, and hope to build on the foundation he laid.

What’s the most important thing a broker can do to develop their business?

Stay true to themselves and their clients. Customer service and taking a vested interest in our clients far outranks any sort of marketing, or sales strategy. The demands on our clients’ time push what we do and how we do it to the forefront. They need to know that we as brokers are there for them, especially in the worst of situations.

What’s the biggest challenge facing the industry?

Company acquisitions, large-scale mergers and the constant pressures from outside forces. All of these combine to have a large effect on what family owned, or small- to medium-sized brokers can do and how

they can compete. Million-dollar marketing campaigns, acquisitions at ridiculous multiples and arbitrary market pressures, all affect how the smaller offices can do business in today’s marketplace.

How would you change the industry to help brokerages flourish?

This list would be ever changing. In an ideal world it would be to level the playing field for brokers with direct writers, group programs, and banks that have near unlimited support from their parent companies.

Remain competitive in the marketplace with price naturally, but levelling the playing field would allow for the conversation to revolve around the value proposition of using a broker and not price.

What sets your firm apart?

That’s a hard question as every brokerage has its strengths and weaknesses. I think what sets us apart currently is our ability to see the challenges on today’s consumer first hand and service them appropriately.

With our experienced, diverse, bilingual staff, we are able to connect with the client and make sure they understand what they are paying for and how they can benefit from it.

What’s next?

Hopefully, continuing the momentum. Our family is growing; we have ambitious goals, but will not compromise what we have started to get to them. We are laying the foundation for this, ensuring we can maintain the high levels of service and customer satisfaction, all the while dealing with what the market has to throw at us.

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9 “Our staff recognizes that offering innovative thinking and complete solutions to specific needs are much more valuable than price alone”

INSURANCEBUSINESS.CA

BRYSON & ASSOCIATES INSURANCE BROKERS LTD. Head office: Ajax, Ontario Founded: 1980 by Richard Bryson Website: www.brysoninsurance.ca Tracy Makris, President What sets your firm apart?

That’s simple: our team! They are truly amazing.

They understand what is expected of them as professional insurance advisors and they understand customers deserve the best experience. We aren’t afraid of the competition because our staff recognizes that offering innovative thinking and complete solutions to specific needs are much more valuable than price alone.

What’s the most important thing a broker can do to develop their business?

As a broker, we are committed to maintaining a strong reputation with our customers and within our communities. The core of our business development is to maintain these strong relationships as it is the lifeline to referrals. By strengthening our relationships and maintaining our customer-focused approach, we demonstrate our relentless quest to put our clients at the centre of everything we do.

How would you change the industry to help brokerages flourish?

Knowledge is power, and by encouraging education, we support our professional image. Bringing insurance education into the schools, offering programs more locally and raising the bar on standards, we can

enhance the image of the professional insurance broker to attract new, younger talent.

What’s the biggest challenge facing the industry?

Perhaps I might answer with a different reply based on line of business. The biggest challenge in personal lines insurance, in my opinion, is the technology advancement and understanding as a brokerage what impact telematics, self-driving vehicles, and digital shopping will mean for our customers over the next few years. In commercial insurance, getting in front of the end buyer can be one of the biggest challenges these days. Business owners are guarded, protected from interruptions and find it difficult to make time to review their insurance needs.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

Being named one of the Top 10 Brokerages ignites an extremely positive reaction and is considered the ultimate compliment! Brokering has become a very complex business and as a result appears to be separating the forward thinking, visionary brokers from the traditional brokers. Being named top 10 is dynamic!

What’s next?

For our brokerage, what’s next includes growth, retention, profitability and continuous education for both our staff and our commercial customers. Understanding the digital space in personal lines will be both a challenge and a rewarding experience. By specializing and always elevating our commercial delivery, we will be able to expand our offerings and ultimately reach our ongoing goals.

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8 “The biggest concern for clients is the whole claims process. Our industry needs to assure our clients that we will look for ways to cover them when they have a claim”

BUTLER BYERS INSURANCE Head office: Saskatoon, Sask., with a branch office in Saskatoon Founded: 1907 Website: www.butlerbyers.com Drew Byers, CEO What’s the biggest challenge facing the industry?

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

The biggest challenge in our business is the constant change in technology. We must provide our products in the way our clients want, whether it be online, by phone or in person. We need to ensure that the brokerage system is the best place for our clients to have their insurance needs looked after.

We are very excited to being named one of the Insurance Business Top 10 Brokerages. We want to thank our staff and our partners for the way they have looked after our clients over the years. This has been the main reason for our success.

What’s the most important thing a broker can do to develop their business?

One is our longevity, being in business for over 107 years. The other factor is that we strive to make the whole insurance experience easier for all our clients.

We try to be flexible and adaptable to changes in our industry.

The most important thing a broker can do is to be very involved in their community, as well as to maintain a strong reputation for integrity. We also feel that getting to know our clients and becoming their trusted advisors is important.

How would you change the industry to help brokerages flourish?

Brokers need to more proactive and find different ways of serving our clients. The biggest concern for clients is the whole claims process. Our industry needs to assure our clients that we will look for ways to cover them when they have a claim.

What sets your firm apart?

What’s next?

We look forward to strong future with our new leaders. Developing in our business. Succession planning is under way in our brokerage. My son Scott is a very important part of the plan. He is currently our corporate vice president and over the next several years he will replace me as CEO. We also have a very good mix of experience and newer staff. The future looks very good.

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INSURANCEBUSINESS.CA

COWAN INSURANCE GROUP Head office: Cambridge, Ontario, operating out of 10 offices across Ontario Founded: 1927 Website: www.cowangroup.ca Heather McLachlin, president of Cowan Insurance Group What sets your firm apart?

Our unwavering focus on knowing our clients better than anyone else and through the unique talent we have within our organization, executing brilliantly on this mandate. Cowan’s multi-line sales approach delivers strategic and organic growth. Our segmentation strategy identifies key market segments in which we have a strong existing core base of business and see solid opportunity for strategic growth. We need to further differentiate Cowan from our competitors by continuing to build our reputation as knowledgeable relationship managers with core

“Provide a culture for your team to encourage the willingness to try even if that means making a mistake – often that’s how natural innovation occurs”

competencies dedicated to each industry coupled with thought leadership across our various segments.

How would you change the industry to help brokerages flourish?

One area that immediately comes to mind is speed to market on how we successfully differentiate and compete with direct writers. There is clearly space for a strong advice-giving model.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

We consider this recognition as an endorsement of our commitment to our clients’ success and our mandate that puts them at the centre of all we do.

The entire team at Cowan Insurance Group is quite simply the very best at what they do. I am exceptionally proud to work with them every day.

What’s the biggest challenge facing the industry?

Two current challenges come to mind: 1) the impact of our environment; we have most recently seen significant weather-related issues, and increased claims as one of the biggest challenges facing our industry. 2) The war for talent and the ability to attract strong talent, grow talent from within and offer opportunities for those interested in being aspirational.

What’s the most important thing a broker can do to develop their business?

Most importantly, never stop listening to our clients.

Then, never stop learning and applying what we learn and know to help our clients. Be astutely aware of what is taking place in the economy, in our client’s businesses and industry, the continual evolution of risk management, and with our markets. Being proactive and ahead of the curve is part of how we as brokers differentiate ourselves. Always encourage excellence! Provide a culture for your team to encourage the willingness to try even if that means making a mistake – often that’s how natural innovation occurs.

What’s next?

We talk openly about grow or die. Companies that are growing like ours foster an entrepreneurial culture. We believe our employees make the difference. The organization is proud to provide a professional, performance-based team environment where contributions are valued.

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JONES DESLAURIERS Head office: Toronto, with eight branch offices in Ontario Founded: 1951 Website: www.jdimi.com Shawn DeSantis, President & CEO What’s the biggest challenge facing the industry?

Finding and developing talent.

What’s the most important thing a broker can do to develop their business?

People drive the success of our business. Our business is very much about human capital. The successful development of our business is tied to our investment in our people. We are committed to recruiting, train-

ing, mentoring and developing the best talent in the industry. In today’s performance-based economy, we know this helps make us better, smarter and stronger in all aspects of our business.

Staying current with technology is also crucial to being relevant, competitive and productive in the insurance marketplace. We continue to make significant investments in technology to help improve our in-house operations and enable our employees to better meet our clients’ future needs.

How would you change the industry to help brokerages flourish?

I believe strong brokers are flourishing and building great businesses. Technology will continue to be an important part of the change the industry will need to experience in order to allow brokers and clients more time to focus on the critical elements of risk mitigation.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

We are honoured to receive this prestigious award and recognition as one of the top 10 insurance brokerages in Canada. This acknowledgement is a true reflection of the hard work and dedication of our employees and our supportive clients. We owe our success to each and every one of them.

What sets your firm apart?

We have a strong sales culture, a proven acquisition track record and a focus on exceeding client expectations. We form partnerships with our clients and become an integral part of their business.

What’s next?

With aggressive plans for future growth, 2014 will be focused on national expansion and our competitiveness in the marketplace. Scale and size will become increasingly important in order to be able to invest in improved client experience, stronger sales development and technology. We will focus on increasing our product capabilities and geographical diversification, to enhance our scope of services and better service our clients.

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5 “Deal with fewer partners in the commercial arena but increase efforts to provide greater support of each other with the intent of enhancing what they can jointly do for the customers”

INSURANCEBUSINESS.CA

THE MAGNES GROUP INC.

What’s the most important thing a broker can do to develop their business?

Head office: Oakville, Ontario, with offices in Toronto, Montreal and Vancouver Founded: 2005 Website: www.magnesgroup.com

Become a true expert in specific, target industries, partner with carriers that share your focus and together develop insurance and business solutions that are so valuable and unique that your customers can’t imagine trusting their relationship to anyone else. Then hire the best young talent available, mentor them, train them, help them buy equity and give them the tools to be very successful in growing those niches.

Don Vince, President How would you change the industry to help brokerages flourish?

What sets your firm apart?

Encourage carriers and brokers to narrow their focus.

Deal with fewer partners in the commercial arena but increase efforts to provide greater support of each other with the intent of enhancing what they can jointly do for the customers that are also aligned with that focus.

We put a lot of effort into understanding our customers, their industry, what makes them unique, what contractual obligations they’ve taken on, where they’re headed and how we can help them get there.

In the end, if bad things happen we want them to be very pleased they chose Magnes.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

What’s the biggest challenge facing the industry?

There are a lot of terrific brokerages in Canada that we have a great deal of respect for - in fact we count quite a few among our best friends. We feel very honoured to be recognized as one of the Top 10.

Sourcing, training and developing successful young producers. Continually innovating to provide customers with better care, wordings, services, and advice to ensure their experience is always improving.

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4 “Maybe it’s time insurance companies started to listen to their most successful distribution channel rather than give us lip service”

DARLING INSURANCE Head office: Peterborough, Ontario Founded: 1928 by Stan Darling Website: www.darlinginsurance.net Peter Blodgett, President What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

We are very flattered and honoured to be considered for this recognition. It’s a testament to our staff and their belief in our corporate mission and vision statements.

How would you change the industry to help brokerages flourish?

I don’t believe brokers aren’t flourishing. This is one of the best businesses in the world. We need to be prepared to adapt and continue to function more cost effectively while always being mindful of the essence for our existence – our clients. I also believe we need to be less accepting of the changes and so-called marketing strategies of some of our socalled insuring partners. Maybe it’s time insurance companies started to listen to their most successful

distribution channel rather than give us lip service.

There is still a very valuable and strategic place for our distribution channel. I believe history has proven this.

What’s the most important thing a broker can do to develop their business?

It is important to remember to treat your client as you would wish to be treated. With honesty, integrity and the ability to be accountable is of utmost importance when dealing with your clients.

What’s the biggest challenge facing the industry?

There are many that we as brokers cannot change or eliminate. What I feel is an industry issue is recruiting young people to take up the challenges of our industry today and call it a career rather than a job. We as an industry have to do a better job of creating a WOW factor for a career path in insurance.

What sets your firm apart?

Our mission statement says it all – to assist our clients with integrity, professionalism and efficiency while promoting leadership in our community.

I believe we live this to a tee.

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SHARP INSURANCE Head office: Calgary, with six offices in Alberta Founded: 2009 by Sherif Gemayel Website: www.sharpinsurance.ca Sherif Gemayel, President What’s the most important thing a broker can do to develop their business?

Realize that as times are changing, so must the brokers. Insurance needs to be delivered how the client wants and we need to break out of the mould of ‘this is how it’s always been done.’ Innovation will differentiate the brokers.

What sets your firm apart?

Our ability to shift quickly on the fly and develop and deliver meaningful tools for clients. We also try to adopt new methods and marketing techniques to help us grow and sustain our business.

How would you change the industry to help brokerages flourish?

“Insurance needs to be delivered how the client wants and we need to break out of the mould of ‘this is how it’s always been done”

Personally, I believe that too much regulation in the industry stymies growth. The more regulation that gets introduced, the harder it becomes to deliver

the product the consumer wants and needs. I would make the industry more flexible in terms of its regulation.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

We were very excited to be named as one of the top 10 brokerages in Canada. There are many amazing brokerages in Canada, and being one of the newer ones on the scene, it’s certainly both rewarding and humbling to receive such a distinction.

What’s the biggest challenge facing the industry?

The biggest challenge is also its biggest opportunity and that is technology. Being able to stay abreast with the latest technology and ensuring we can meet both the needs of the industry and the needs of the consumer together.

What’s next?

Sharp is constantly trying to evolve and expand. We are currently working on some new tools and models to help deliver insurance to clients in a more efficient way and to get ahead of some of the emerging technologies that are about to be introduced in our industry.

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ARCHWAY INSURANCE Head office: Amherst, NS, with 12 offices throughout Nova Scotia and New Brunswick Founded: 1985 by Garry Stack Website: www.archwayinsurance.ca Gina McFetridge, Regional Manager, and Michael Stack, Vice President What sets your firm apart?

At Archway, we have a well-developed brand and our staff knows our corporate values and lives them every day. We believe in choice, and that one-size fits-all fits no one. Our commitment to professional development has created a highly educated workforce.

Our staff has the tools and knowledge to be trusted

“Our staff has the tools and knowledge to be trusted advisors and also give us a competitive edge against those who do not invest in their employees”

advisors and also give us a competitive edge against those who do not invest in their employees.

What’s the biggest challenge facing the industry?

Brokers certainly still find themselves concerned with the banks, succession issues, government policy and competition from our insurer partners both directly and on the brokerage level. Never has the competition been more fierce amongst brokers, direct writers and banks. Direct writers and banks have deep pockets and their marketing budgets have commoditized personal lines products. This has decreased the understanding of the broker’s role as a trusted advisor in the eyes of many price-conscious consumers. Not all insurance policies are created equal, but the noise in the marketplace has simplified insurance to the point that many no longer see the value in seeking advice before purchase. Within the broker channel, the continued consolidation of national insurance companies is also having a negative impact on brokers in terms of decreasing the options we have available to offer clients and compete against direct writers. This is a direct hit on one of our key competitive advantages, which is providing choice to clients.

What’s the most important thing a broker can do to develop their business?

Continue to evolve with the business, embrace constant change as the norm and think you can! To quote Henry Ford, “Whether you think you can, or you think you can’t – you’re right.”

Market knowledge will help you stay abreast of changes and adapt to meet them. When you know what’s coming next, you can evolve your products and services to meet market demands. Likewise, knowing why clients are with you already helps you to differentiate yourself from the competition and increase loyalty.

How would you change the industry to help brokerages flourish?

I would find a way to hand off the administrative and data entry work that is occupying more and more time within brokerages. To be a true broker you need to provide your clients with options and the more options, the more apt your brokerage is to be bogged down with multiple company portals and administrative work. This work takes precious time away from our primary role of interacting with clients and providing advice, and adds no direct value for them.

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1 “To compete at a high level in this marketplace requires constant innovation in your ability to add value to every interaction”

INSURANCEBUSINESS.CA

MY INSURANCE BROKER Head office: Richmond Hill, Ontario, with five branch offices across southern Ontario Founded: 2008 by Rick Jaitley Website: www.myinsurancebroker.com Shawn O’Neill, senior manager, business development What’s the most important thing a broker can do to develop their business?

Brokerages must continuously look for ways to add value to every interaction with clients. We aim to add value through our educated workforce, best practices in service and communication, client education, or utilizing the latest technologies to make each client interaction easier. To compete at a high level in this marketplace requires constant innovation in your ability to add value to every interaction.

What’s the biggest challenge facing the industry?

The broker channel faces challenges of product commoditization, changing regulation, rate dislocation, succession planning, and that some competitors conduct business on an uneven playing field. Brokerages must be able to analyze these challenges, develop a strategic vision to address them, and then be able to execute these strategies without delay.

As a whole, the industry has changed quickly with recent advances in technology. The advent of black-box underwriting and the application of big data analytics have made the product more complex,

which can be a challenge to explain at a client level. In the near future the widespread launch of telematics may pose an additional challenge for brokers who aim to properly educate their clients on these issues.

The brokers who can keep a pulse on these changing dynamics will realize success.

What’s your reaction being named one of the Insurance Business Top 10 Brokerages?

My Insurance Broker is thrilled to see Insurance Business recognize the efforts and successes of our company in 2013. It fits well with our mission to serve our clients with the largest selection of tailored coverage, superior customer service, offering the greatest value to each personal and commercial client we represent.

What sets your firm apart?

A high level of personal service is our first priority.

We also realize that insurance. Insurance can be difficult to understand and even harder to grasp when a communication barrier exists. Our brokerage has capitalized on the changing demographics of Southern Ontario and our multicultural staff of 45 brokers are able to speak a total of 15 different languages. We can best serve our clients when we can speak their language. In doing so we are able to truly educate and understand the needs of our clients.

What’s next?

Our brokerage is developing the framework for extending office hours to be available 24 hours a day, 7 days a week. It will be part of our service commitment that we make to all customers; to be there for them at the moments of truth.

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SPECIAL REPORT / TOP BROKERAGES

MY INSURANCE BROKER’S WINNING FORMULA

BEYOND THE

NUMBERS

Being a top brokerage in Canada means more than top numbers – it means making a difference in the community We asked brokers a lot of questions about the numbers – but in many ways, a top-flight brokerage does a lot more than just put up big revenue and client numbers.

For one brokerage, it can be as simple as giving away pumpkins.

“In 2008 we got this great idea that we are going to give away pumpkins for Hallowe’en – and we started our first Bryson Pumpkin Giveaway,” says Rose Anne Shaw, office manager at Bryson Insurance in Ajax, Ontario. “The first year we raised money and food for ‘Feed The Need in Durham,’ and ever since we give away 1,000 pumpkins for free.”

Shaw, who also sits on the directors of Feed The Need and has Bryson listed as a drop-off centre for food and donations.

“The first year we raised money and food for them, and ever since then we’ve had a different charity each year,” she says. “We’ve done Sick Kids (hospital), we’ve done Rouge Valley (hospital); we raised money for the Charles Best Diabetes Centre out here. We did COPE – to help raise mental health awareness two years ago – and then we did Feed The Need again last year.

“We average $2,000-3,000 a year for the charities, which isn’t bad,” Shaw says.

She sees involving the brokerage in community fundraising as a crucial part of the business – which has spelled success for Bryson & Associates, placing it in the No. 9 spot among the Top 10 in Canada.

“I think fund raising is everything – how else can we give back?” asks Shaw. “I like that we can do it on a local basis, because it hits home with everybody. It gets everybody thinking, and you can see how much our clients and the community support us.”

Claiming the top spot on our inaugural rankings of the Top 10 Independent Insurance Brokerages is GTA-based My Insurance Broker, which was first established by a small group of experienced brokers in 2008. The company has grown exponentially since, with a reach now spanning across all of Southern Ontario.

“Our care, commitment, and dedication to our clients and their families will remain the same whether our brokerage has ten or ten thousand clients,” says My Insurance Broker founder Rick Jaitley. “We remain focused on the ease of doing business and delivering on our promises during the moments of truth, and ensuring that every customer is treated as our first customer.”

Shawn O’Neill, senior manager, business development at My Insurance Broker, and Director of Sales Rishi Jaitley say they believe the company’s success can be attributed to the following factors, which have made referrals a key business driver: • Staying in touch with clients on an average of four times through the year (including thank you letters, renewal phone calls, and birthday cards).

• Personalized service, the same broker who issues your policy is the same broker who services it. This allows for our clients to develop a lasting relationship with their broker.

• Building a strong corporate culture which has resonated through our staff, producers, and to our clients. Our staff understand the factors of sustaining a successful relationship: Honesty, Trust, Loyalty, Care, and Commitment.

• Cultivating knowledgeable staff. For those new to the industry we have invested in a broker training and education center and a matching online broker resource center to keep everyone updated.

• Dedicating time and effort to educating our community and our clients on the ever-changing insurance landscape. Acting as a source for information and second opinions so that our current and prospective clients see value in our ability to provide advice, tools, and resources; rather than only seemingly collecting premiums or mitigating claims.

• Centralized processing of all client queries ensures quick turnaround time and accuracy. Client requests are handled start-to-finish in-house.

Reducing the “pass-the-buck” mentality increases the customer experience and ease of doing business.

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INSURANCEBUSINESS.CA

ON COURSE! Take a closer look at the overall rankings – or handicaps – of the Top 10 Independents. Those rankings take their inspiration from the game so many brokers and agents love – golf. The individual score for each brokerage is like the handicap of a golfer, meaning the lower the number the higher the grade. With an overall score, or handicap, of 30 points, My Insurance Broker comes out on top of this year’s round. The mark reflects its overall winning performance in terms of the following factors: • Total revenue • Policies written • Revenue per broker • New revenue per broker • Revenue from new policies • New clients per broker • Company growth

TOP 10 BROKERAGES Company 1

My Insurance Broker

HONOURABLE MENTION Composite Score 30

2

Archway Insurance

46

3

Sharp Insurance

47

4

Darling Insurance

48

5

The Magnes Group

49

6

Jones DesLauriers

53

7

Cowan Insurance Group

54

8

Butler Byers Insurance

56

9

Bryson & Associates

58

10

Carr & Company

63

Composite Score

Company 11

Rhodes & Williams

64

12

Wilson Insurance

66

13

Mitchell & Whale

69

14

Highcourt Partners

73

15

Gougeon Insurance

74

®

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SPECIAL REPORT

TOP BROKERAGE INSIGHTS HEATHER WILSON, PRESIDENT, WILSON INSURANCE There has been much commoditization of product in our industry which has devalued our profession. It is unfortunate many consumers feel insurance is only about finding the lowest price. While price certainly matters, the price only focused consumer may face unprotected losses. We need to continue to raise the profile of brokers and the value and advice we bring to our clients financial well-being.

CORY YOUNG, CHIEF OPERATING OFFICER, RHODES & WILLIAMS LTD. There are certainly many challenges in our industry today, but there are always challenges in any industry. Those that rise to the challenges are the ones that will succeed in to the future. Certainly one challenge that is top of mind right now, is the ability to adapt technologically to the demands of our clients and the population at large… while still being able to emphasize the great value that an insurance broker brings to that transaction. We need to be able to share that value, in an increasingly electronic world.

MARK R. MCKAY, President & CEO, Highcourt Partners Attracting top talent who understand the unique nature of not only the brokerage business, but the needs of all stakeholders in the value chain. All too often the focus is on price and a “take it of leave it”

or “bigger is better” sales mentality. Clients want their problems solved, they really do not care to understand the intricacies of the insurance market or how big a brokerage is.

The other challenge is to stop the insurance gobbledygook speak. Meetings with clients should have agendas, focused conversation on the client’s business then a mutual commitment to delivering.

JOANN LOMBARDO, OWNER, ALL-RISKS INSURANCE In my brokerage we believe the best way to develop business is to focus on helping and educating people, not selling. It does not matter if they are a client or not, the focus is on helping. If people feel well looked after they will not only change to us they will refer us.

Sometimes someone (not our client) will call into our office and we help them with their current policy (perhaps due to an at-fault claim from a child, we would educate them on OPCF 28), they are so happy that we helped them, that they want to become our client.

JUDY GOUGEON, President and CEO, Gougeon Insurance Have clear vision and strategic direction and develop their people. Know who you are, your differentiator and clearly where you are going.

Provide good training, committed leadership to help staff develop their careers. We hire people who want to be part of something and want to drive their career and continuously improve. We are clear about where we want to go and transparent that we need to continuously improve to be the best brokerage.

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2/05/2014 12:27:19 AM

IBca_Jobs

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INSURANCEBUSINESS.CA

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22/04/2014 3:20:12 24/04/2014 3:14:36 AMAM

Q&A / ALISTER CAMPBELL

READY FOR

RISK

Alister Campbell will be marking two years as CEO of The Guarantee Company of North America this fall. He shares his vision of where the continent’s first bonding company is headed with Insurance Business’ Donald Horne Insurance Business: The dust has settled on the new leadership team at The Guarantee. What have been the tangible changes?

Alister Campbell: I replaced two very seasoned senior executives who retired after almost two decades of service to The Guarantee: Jules Quenneville who was CEO, and Bob Dempsey who was president and COO. So I inherited from them 23 direct reports – which is not a sustainable amount of direct reports for a senior manager. So the first adjustment is that I now have an executive committee of 12. The second noticeable change is that five of those 12 are new to the company, and four of them are women.

I think it would be obvious that if you look back at the list, none of them were (women). I made no sacrifice in terms of talent to increase the gender diversity of the leadership in the company, and I think that had some internal and external benefits.

The third evolution, the real shift that people are going to see from The Guarantee, is that I’m taking this beautiful culture of specialist expertise, and adding a new burst of product innovation into the market.

We just launched a new surety bond at the Canadian Construction Association Conference in Panama City two weeks ago. I don’t want to overstate

it, but I think it will be the first surety bond innovation in over a generation. I think it is just the start of what The Guarantee is going to be able to do in each of its specialty markets, to take a market leadership position.

IB: Will The Guarantee be joining the likes of Travelers and Desjardins, and expanding its reach through a major acquisition?

AC: You start by not ruling out anything. Practically speaking, The Guarantee is a specialty company. So we’re more likely to be trying to target larger options, or acquisition opportunities that are aligned with that specialist approach.

It is more likely to be focused and targeted, rather than broad-based and large. What we’re looking for is an opportunity to boost our presence in specialty markets in Canada or the United States. We already have a nicely growing US subsidiary, and prospects for growing in that market as well.

We’re the first bonding company in North America, and when we say that, we started with a U.S. subsidiary 104 years ago. Today we’re the number 25 largest surety company, and at the moment all we write in the US is surety. That team is in 17 offices in 20 states, and we’re growing at a

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INSURANCEBUSINESS.CA

“We’re in a position to take certain types of risk that other companies can’t.

Understanding your risk appetite is a fantastic advantage when you approach a market like this one”

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Q&A / ALISTER CAMPBELL

disorient the management of the company and place external pressures on it that might be difficult to resist.

Our capacity for certain types of insurance risk may be greater than that of other companies. In the end it means that we’re in a position to take certain types of risk that other companies can’t.

Understanding your risk appetite is a fantastic advantage when you approach a market like this one.

IB: You’ve had almost three decades in the industry

“What we’re looking for is an opportunity to boost our presence in specialty markets in Canada or the United States” very steady and profitable pace.

But we’re always looking at growing in an adjacent specialist line.

IB: What risks are you willing to take, and what does that mean in terms of your appetite for risk?

AC: We like all financial institutions have been asked

by OSFI to develop and document our risk appetite in the form of a board-approved risk-appetite statement. So we undertook that exercise, initially thinking of it as an additional regulatory burden, and it proved to be an invaluable internal process to better understand how our shareholders thought about risk, and reward trade-offs.

We are not a publicly traded company. As a result, we do not live by quarterly earnings. What that means is that we have a greater comfort for severity lines of business, because a single shock event doesn’t

– what has changed the most during that time?

AC: The things that have changed in the industry are the things that have changed in the world; technology being the single, significant change. If you can say it is a single change. The pace of change being driven by technology, and the advancements of technology, are forcing shifts in customer expectations, distribution strategies, and internal work processes.

Maybe what is more interesting is what hasn’t changed, which is the degree to our industry – perhaps uniquely – remains relationship-driven. The connections between reinsurers and underwriters, the connection between seasoned underwriters and professional specialist brokers. The relationships brokers have with customers who have alternative options as to how to buy, and still stay very loyal to a distribution model which has lasted quite a while.

When I joined this industry 30 years ago, there were widely-held views that direct share was going to go to 100 – and in fact in Canada, we have seen, uniquely, a very high degree of loyalty to professional independent brokers. And that is notwithstanding all the changes that technology brings.

This is the classic opportunity, to work out how to leverage what is changing to do better at managing in a world of things where many elements haven’t changed: customers’ desire for relationships, the desire for human interaction in the course of various forms of purchase or claims service. These are areas where brokers can use technology to stay competitive.

In a world where there is lots of choice in product and price, I think intermediaries have greater value.

In a world where there is going to be new models and totally new versions of rating, added to the existing market, the role of the intermediary could very well increase in the short and medium term.

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GREENHOUSE DOMINOES

IB: MGAs are growing their presence and strengthening broker relationships. Is this good for the industry? Why? AC: First of all, the shareholder that owns The Guarantee also owns Canada’s second-largest MGA in Frank Cowan, with over 85 years in being a proud specialist of being an MGA, in the municipal and not-for-profit space; and it serves brokers right across Canada.

It enables brokers to leverage their local relationships, which enable them to access their type of customer, and solves the market capacity issue and delivers the underwriting expertise in a way that they are not able to secure in a normal contracted market.

What is interesting to me, when you ask quite large commercial brokerages with very large underwriting portfolios, they will admit that a surprisingly high percentage of their business ends up with MGAs; even brokers that have a vast array of markets and can choose anybody they want.

In the end, I think there are certain niches where MGAs as a form of specialist underwriter genuinely bring value to brokers. What’s intriguing – and is the base of your question – is that space in the market growing? My sense of it is it might be. My theory for that, and I don’t know if it is true or widely held, is that the big data that is driving machine underwriters, the big scale players, they are all getting better and better at more narrowly defining what they want to write.

As a result, it is possible that the ‘grey’ market is expanding, and that is actually creating more opportunity for the MGA market to deliver capacity and expertise. That is a theory as to why there is an uptick.

There is substantial Lloyd’s capacity being made available into the Canadian market right now, and it is often finding its way into the Canadian market through MGAs.

IB: What do independent brokers need to do to remain competitive in the market?

AC: They need to specialize too. I’ve been giving a speech at various industry events on the power of specialization. In a world where you are selling a commodity, the internet is going to make it very hard to extract margin as an intermediary. Because

After nearly 30 years in the industry, Alister Campbell has plenty of interesting stories to tell. Like this one about a particularly interesting case...

Let me tell you about one of my favourite claims. At a prior company, we insured a greenhouse complex in the Vancouver area, and a few years ago there was this substantial snowfall on Christmas Day. For families opening presents this was lovely, but there is a problem when snow falls on the roof of greenhouses – which is you can’t get up on the roof and shovel.

Greenhouse complex owners have service contracts with third-party helicopter companies, who agree on a service level agreement that they will respond to a call and fly over a greenhouse, and allow the rotor wash to knock the snow off the roofs. Well the call went to the vendor of the helicopter, and the phone of course went unanswered.

So in the course of several hours, being Vancouver, snow – and from a physics perspective which I still don’t fully understand – gets heavier as it turns from solid into liquid. Pressure on the roof became significant, and it pushed the greenhouse over.

Here is where some keen underwriting aspect comes in: the height of each greenhouse was greater than the width between each greenhouse. So when the first one fell end-to-end, they all fell, like dominoes. Sixteen greenhouse units, and $6 to $7 million in loss.

A fantastic insight from a risk selection perspective would tell you that as an underwriter you should ask if the units are taller than the gap between them. And I can assure the underwriter that experienced this loss now asks that question.

That is the kind of experience that tells you there is always another claim, and there is always something to learn from the claim. And the companies that win don’t repeat the mistake.

commoditized solutions lend themselves to web transactions.

Where intermediaries are going to continue to be able to bring value is where there is complexity. And that complexity will be commercial lines, or at least some components of it, or where there are multiple options.

Telematics could create more, not less, opportunity for brokers. But you need to be able to specialize in this.

I’m still puzzled that I have not seen brokers advertising their expertise as ‘the best home insurance consultant around.’ Home insurance is likely to cost more than car insurance over the next while, as we do a better job in pricing for the risk of water. You always see brokers promoting themselves as ‘lower car insurance experts.’ I think there is tremendous room to help counsel customers about things like better residential coverage, better ways to mitigate water damage and loss, in ways to help manage premiums; get a better credit score so you can get a better insurance solution for your home.

Whether it is commercial lines or personal lines, specialist advice in areas of complexity is where brokers are going to win.

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PRODUCER PROFILE / EILEEN GREENE

At the top of her

GAME

Producer Eileen Greene’s excellence at building client relationships has led to great referrals, plenty of crossselling, sales awards and even getting to hang out with Lloyds’ CEO Inga Beale Eileen Greene really racked up the frequent flyer miles last year.

Greene, who is a vice-president and partner at HUB International Limited and works out of the company’s Toronto offices, spent a lot of time flying to meet with clients as a result of 2013’s extreme weather.

She was on the road regularly, ensuring that her company was delivering on its service commitment after flooding in Calgary and Toronto, not to mention a major windstorm in Edmonton.

And then she had some really long flights. There were multiple trips to London, UK, as a result of her nomination and ultimate triumph as the winner of the 2013 International Women in Sales Award for Insurance. That was quite the big deal in its own right, but it also earned her the right to be personally mentored by new Lloyd’s of London CEO Inga Beale, leading to even more overseas travel. Taking full advantage of this tremendous opportunity has effectively raised the bar for one of the world’s more accomplished salespeople.

Eileen Greene started her professional career as a filing clerk in a mid-sized brokerage in North Toronto right out of high school. Over

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INSURANCEBUSINESS.CA

Ted Chai

“I still prospect.

Everybody you make eye contact with is buying insurance from somebody”

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PRODUCER PROFILE / EILEEN GREENE

“I think a weakness that we have as an industry is that we don’t necessarily manage the client relationship and experience very well” the course of 17 years, she moved on to reception, data entry and personal client service, then became a licensed broker and eventually vice president of VIP Services. “While being educated on the insurance piece, I fell upon my passion for sales,” Greene says.

“After my first child was born, I elected to take the risk and move into a production role.”

Her book of business grew in all lines of insurance, generally starting with catering to her clients’ per-

sonal insurance requirements. “This role allowed me the flexibility to raise a young family and still have a very fulfilling career,” she says.

For professional and personal reasons, Greene made the move in 2007 to HKMB International Insurance Brokers, which is now part of Hub International, Canada’s largest insurance brokerage and one of the largest privately held brokerage firms in North America. Through consistent relationship-building and a penchant for client advocacy, she developed a significant portfolio of major commercial and high-net-worth personal insurance clients, leading to her 2010 appointment as a vice-president and partner. She is recognized annually at HUB’s sales leadership awards, and was honoured in 2013 with the Legend award, which recognizes those who have consistently achieved new business production at the highest levels for five consecutive years.

Because employee #658 forgot the bolts.

Open minds. Better casualty.

SovereignGeneral.com

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SIMPLE ADVICE – 5 TIPS FOR PRODUCERS FROM EILEEN GREENE Strive for face time

“Embrace every opportunity to get in front of the client, be it social or participating in their charitable giving”

Pick up the phone

“E-mail drains time and prolongs the sales process. Try picking up the phone.

It’s pretty amazing how fast you can get an answer”

Keep your promises

“It’s really, really important to make sure that your existing client base is given the level of service that you have committed to”

Use a team approach

“We bring our trusted insurance partners to the table with us when we are going on renewals or bringing a quote, so the insurers know the client and have a relationship”

Behave well

“Be nice. Return calls. Follow through”

TIPS

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PRODUCER PROFILE / EILEEN GREENE

AWARD WIN LEADS TO MENTORSHIP RELATIONSHIP WITH LLOYD’S CEO CUSTOMER-CENTRIC PHILOSOPHY

Eileen Greene receives the “Best Woman in Insurance Sales” award in London.

Winning a Women in Sales award is no easy proposition. The awards are designed to find the most exemplary women in sales internationally across a variety of industries, and nominees are judged on a variety of criteria before finalists are announced and a winner in each category is crowned.

It’s a rigorous process, requiring multiple trips to London for finalists and a strong commitment from the nominees’ companies.

Eileen Greene now knows all of this first-hand, after being named the Best Woman in Insurance Sales at a black tie and gown event last December at the Savoy Hotel in London.

Her path to the prestigious honour began when HUB International Chairman Gregory S Belton nominated her for the award, which led to the first trip to London for a day of judging against other nominees by a panel of C-level executives. After being named one of three finalists in the insurance category, Greene flew back to London for the awards ceremony in December.

Winners in the eight different sectors were selected by the independent judges based on a competitive evaluation of general sales ability, track record in achieving and exceeding targets, and a good understanding of the implications of change on the wider business.

“Eileen is a true leader and an inspiration to women not only within our organization and the insurance industry, but also within her community,” Belton said in an announcement about the award. “We are proud that Eileen and HUB were recognised in the insurance category at this prestigious ceremony honouring top women across the globe.”

Perhaps the biggest benefit of winning the insurance award has been securing a mentee relationship with arguably the most high-profile woman in the entire insurance industry: Lloyd’s of London CEO Inga Beale.

Beale, the first woman to lead Lloyd’s in its 325-year history, took the reins in January and immediately began fulfilling her commitment to mentor Greene. “As soon as we got connected, she offered me the opportunity to shadow her for four days at Lloyd’s of London. It was really eye-opening and very interesting,” Greene says, adding that she also benefitted from being able to sit in on some really high-level meetings.

Beale continues to make time for Greene whenever she is in North America.

The ability to provide truly first-class customer service has always been a key to Greene’s success, and the drive to do so has set her apart from her competition. “Everyone always concentrates on the technical side of things,” Greene says. “I think a weakness that we have as an industry is that we don’t necessarily manage the client relationship and experience very well.”

Greene makes it a priority to stay in front of her clients, constantly staying in touch and therefore staying top-of-mind when it comes to their insurance needs. This is made possible by the support she receives from her team at HUB. “Our dedicated professionals take care of all of the insurance detail work, which allows me to do what I do best – which is to manage relationships,” she says.

Doing things like flying in to visit clients dealing with claims last year, ensuring she was delivering on her service commitment, has a major impact, Greene says, on solidifying the client experience.

As big as HUB is, Greene says it still operates very much like a boutique firm. HUB doesn’t operate in silos and the team is very collaborative. “When I find an opportunity, I get the team involved. We decide as a team how we are going to land the account,” Greene says. She’ll quarterback the relationship, but the client has a full team of dedicated experts to handle their every need.

Eileen Greene, second from left, enjoys a boat trip in London with other Women in Sales award nominees.

“If you deliver excellent service on a claim, it is a perfect opportunity to ask for a referral”

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“Being ‘too busy’ is over-celebrated in my opinion. I am far more effective and successful in all areas with balance.”

REFERRALS AND CROSS-SELLING COME NATURALLY Being a golfer in Toronto means indoor practice time during the winter months, as Eileen Greene does here with local pro Danny King.

THE IMPORTANCE OF ACHIEVING A HEALTHY WORK/LIFE BALANCE “I could be going 15 hours a day, but that doesn’t benefit anybody – not my family, my work or myself,” Greene says. “Being ‘too busy’ is overcelebrated in my opinion. I am far more effective and successful in all areas with balance.”

Greene thinks she definitely has a better balance now than five years ago, and credits a very supportive spouse and a great team. “I am surrounded by amazingly effective people, personally and professionally. This allows me to execute well in all areas – including taking time for me and my family,” Greene says.

If her schedule includes going out in the evening, she’ll work from home earlier in the day. “Generally I’m up early and get a lot done before the kids wake up,” she says.

Greene is a runner, loves hot yoga, and enjoys golfing (she lives on a golf course) and skiing (her family frequents Red Mountain Resort in Rossland, BC). She notes that golf has also been a tremendous business tool, as it is so conducive to building relationships.

Greene is also on the board of directors of Prostate Cancer Canada and the Women’s Brain Health Initiative, and has been heavily involved with multiple charitable organizations, causes and events over the years. Her family owns a private rehabilitation facility for alcohol and drugs called Greenestone. “My passion for mental health removing the stigma and creating awareness – shines through whenever I get the chance to advocate and share,” Greene says.

An obvious benefit to being a strong advocate for her clients is that it opens the door to some strong referrals – something Greene admits that for too long she didn’t focus on, instead seeking out new leads. “If you deliver excellent service on a claim, it is a perfect opportunity to ask for a referral,” she says. “It’s become a very natural ‘ask’ for me now … a lot of my business now is just natural referrals.” Greene says staying involved with her clients – getting to know their teams and spouses, and perhaps even participating in their charitable endeavors – makes any referral conversations easier.

Of course, referals aren’t Greene’s be-all and endall. “I still prospect,” she says. “Everybody you make eye contact with is buying insurance from somebody.”

Greene’s portfolio crosses over to many different practice areas, and her high-end personal lines portfolio often leads to commercial sales opportunities.

She doesn’t hesitate to ask to take a look at the commercial side. “The majority of my clients are pretty well cross-sold over the company,” she says.

One of Greene’s very first clients has developed into one of her very best clients. “I wrote his personal lines policy 22 years ago when he was single and just starting out,” she says.

As his career and personal life has evolved, Greene has remained involved in all of his insurance transactions, and isnow included as part of the team along with the client’s lawyer and accountant in due diligence on any new opportunities he explores.

The client has married, has children who drive, owns numerous properties, and runs businesses including sports teams, foundations, entertainment, restaurants, hotels and more. “Twenty-two years later, we are handling every aspect of his insurance spend,” says Greene, “including the next generation, in-laws, partners and friends.”

And what better testimonial to client service is there than that?

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FEATURE / SOCIAL MEDIA

HOW TO DEVELOP A SIMPLE

SOCIAL MEDIA PLAN

You might be daunted by the prospect of getting social media right for your brokerage. Muhammad Yasin presents a simple guide to get you on your way

Feeling overwhelmed by the world of social media is easy, especially if you have yet to take part in it. Many businesses use it, have amassed hundreds of thousands of followers, built brand loyalists, and even generated sales leads.

Yet without any prior experience with social media, it might get frustrating as you ask yourself the many questions necessary to start up your social media plan: Where do I start? Which social media platforms are right for me? What is the right balance?

Social media is a cog in your marketing plan and should align with your other marketing goals, your branding, and with the way you engage your customers offline. You must have goals you want to reach before you actually begin the process.

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FIRST STEPS

REACHING OUT

Reserve your accounts An obvious but important first step, register the name of your business and the names of your products.

Consistency is important through social media as a whole, but here particularly. If you use an anagram or a shortened spelling of your business on one account, you should use it on others as well. Use a handle that will allow people to find you when they go searching. When you start registering accounts, sign up for every social media site you know of. Start with well-known sites like Facebook or Twitter, but do not neglect the sites such as YouTube, Pinterest, LinkedIn, and others. You likely will not produce content for all of these accounts, but it is a good idea to secure your company/brand names to ensure that others do not register, and use, them for negative purposes.

Find your following Different people prefer to interact using different types of social media. If you know that your customers focus on specific sites, go to those first.

Spending your time and content on Pinterest while all of your customers are on Twitter means you will lose valuable time in front of your audience. Search for the platforms with the most interaction, and go to that audience. Never completely neglect the smaller audience from the other sites, but spend your time where you stand to gain the best ROI.

Monitor conversations Imagine yourself at a party. How likely are you to jump into a conversation between two people without knowing what the conversation is about? Hopefully, not very likely. The same should be true for social media conversations. Know what is being discussed through social media before jumping into conversations. Monitor what others are talking about. Use the search functions of the social networks to find out what people are saying about your industry keywords and your business and products.

Create benchmarks Your marketing plan brings in customers, attracts people to work for you, and says a lot about your business. Social media is part of your marketing and public relations. Any goals that are set as part of a social media plan should be relevant to your marketing and PR, as well as your customer service and sales initiatives. Once you begin interacting, check your performance against the benchmarks you have created. Using analytics tools, measure the engagement of your content, your brand consistency, and return on investment (ROI). You can adjust your plan as necessary.

Valuable content Content is one of the most important parts of social media. While a large part of social media is interaction, another large part is learning. People take to social media and follow different people because of their expert status. As a business, you are the expert, and the content you share should reflect that. Blog your expert ideas and share them via social media.

Remember, though, that sharing information via social media is not for the purpose of making sales. Instead, you are sharing information to establish a relationship with your followers. If your followers value your insight and expert opinion, they will come back to see you as a customer.

Muhammad Yasin is a public speaker, e-book author, and director of Marketing for HCC Medical Insurance Services.

In his role, Yasin is responsible for the brand building and lead generation strategy of several dozen social media accounts with over a quarter of a million followers

Response Again, social media is about building relationships, and your main goal when using social media should be growing those relationships. People reach out via social media because they want a response, so you should provide them some kind of response in return.

Any reply from you will strengthen the tie between you and the customer. Once you have loyal custom-

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FEATURE / SOCIAL MEDIA

5 TOP SOCIAL MEDIA TIPS

1

RESERVE YOUR SOCIAL MEDIA ACCOUNTS

Register your business name and any brands that you own. There is no need to produce content right away, but do not let a competitor snap up your accounts. Start with the well-known ones (Facebook, Twitter, and YouTube) and expand from there.

2

MONITOR SOCIAL MEDIA CONVERSATION

It is to your advantage to monitor what others are saying about your brand and industry.

Search your company names, brand names, and industry keywords using search functions. This is what you will need to talk about.

3

SET GOALS

Planning is vital. Social media should be integrated into your marketing efforts. Make a plan that supports the existing marketing goals and set

ers and brand evangelists, reward them through promotions. Mention and thank anyone who blogs about you. Keep track of your followers and note who is and who is not a customer. Remember that every person who interacts with you is a potential customer.

Generating leads Just like you use marketing to generate leads and help the sales team, social media should be used to drive revenue as well. Unless you are bringing in, or at least learning about, potential customers, then the time you spend on social media is wasted.

However, when you generate leads, different tactics are required for different social media platforms.

Facebook With over 1 billion users, Facebook is a powerhouse in social media platforms. Share your expertise on Facebook by linking to blog posts, articles, or other relevant information that your followers would find interesting and pertinent. Customers can ‘Like’ you and your business, and then your posts will appear in their feeds. Be careful about the amount you share, though: share too much, and you will bog down newsfeeds, which may lead to you getting “Unliked.”

If your customers like your content, they can share it and make it appear on their own pages, and link back to yours, expanding your network into theirs.

Facebook is a great medium for contests and other promotions, and that is a great way to reward your following.

benchmarks. Your actions in social media should support those goals, and the goals of the marketing plan overall.

4

INTERACT!

5

MEASURE PERFORMANCE

Creating and sharing relevant and interesting content is very important, but it is also very important to interact with your followers. Social media is about building a community on a personal level and building relationships. Building relationships can help your business’ bottom line.

As with any part of marketing, measuring your performance is vital to becoming more efficient and better overall. Set checkpoints to measure growth.

Divide tools into four categories: Content, Diagnostic, Monitoring, and ROI. Each will help you improve and adapt your social media plan overall.

Twitter Yes, the 140-character limit on each Twitter post is not a lot to work with, but used correctly it can capture the attention of your reader for just long enough to drive them to content or even to your website. Describe yourself well in your bio to give a better idea of who you are. Your Twitter icon should be an up-to-date head shot of you or your branding, so followers can identify you or your business. Stay relevant to your industry when you tweet. You should share a variety of content, but also engage in conversations. Make your tweets public, and use keywords and hashtags that will allow customers to find you.

Twitter should be a natural conversation.

Pinterest Many people think that Pinterest is full of recipes and home decorating ideas, but there is so much more to it than that. If you leave out Pinterest, you are missing out on a world of potential followers. Create boards that are relevant to the many aspects of your industry, and find great content you can pin to them.

With Pinterest, you can gather some of the most creative pieces of content in the world all in the one place.

As you generate leads, ensure that you continue to engage your current customers. Focusing on leads is certainly important, but your established relationships will pay dividends if you keep them solid. Social media boils down to building relationships, and if you give it the right attention, your business will soon see great results.

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24/04/2014 3:15:063:36:33 AM 22/04/2014 AM

COLUMN / BUSINESS PLAN

PLAN TO SUCCEED A good business plan can act like a compass, not only helping you stay the course, but also gets you where you want to go

For new insurance brokers setting up shop, a business plan is an essential tool in helping you realise your goals.

“Without a business plan, you have a dream with no stepping stones,” says Michael Griffiths, small business coach and CEO of Michael Griffiths & Associates.

“A business plan ensures you know where you’re going, what you want to achieve and the action steps required to get to your goals,” Griffiths says.

“Business owners without a business plan usually find themselves not growing or taking the required steps to move the business forwards. Their heads are usually stuck in day-to-day routines rather than business growth strategies.”

Even veteran business owners often fail to recognise the importance of creating a business plan, adds Michael Altenburger, Small Fish business coach.

“In my experience, only very few SMEs have a formal written down business plan. Not many know exactly what a business plan is or what purpose it serves. Those who do know often feel overwhelmed

by the daunting task of creating one. Lack of experience adds to the problem.”

Altenburger adds that having a plan – especially in written form – helps to quickly determine that things are heading in the wrong direction (hence ‘not going to plan’) – not when it is already too late.

PUTTING IT TOGETHER Simply put, a business plan is a written description of your business and your business goals. It can be used to help you describe your business to potential investors, attract employees, or prospect for new business.

The structure of your business plan will reflect who is using it. If you’re looking for finance, your business plan might be slightly more detailed than one that will be used internally for staff.

So step one in creating a plan is to determine who the plan is for. Deciding whether the plan will be used internally or viewed by third parties will help you target your answers. According to Griffiths, it doesn’t need to be pages and pages long. There are

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COLUMN / BUSINESS PLAN

TOP MISTAKES TOO VAGUE

“Remember, a goal is no good unless it has action steps to get you there” Michael Griffiths many variations of business plans, but a basic business plan typically includes: Description of the business: This is your management plan. It typically covers information regarding the structure and premises, staff, your relevant experience and services.

Market analysis and strategy: This section includes an analysis of your industry, your target market, and your competition.

It should also outline your key marketing tactics to reach your target audience.

Future planning: You might want to include your business’ vision statement, your plans for the future, your business goals (short and long term) and how you intend to reach them.

Finances: This includes how you’ll finance the business, and outlines the operational costs and earnings, and projections.

Executive summary: This can be short and sweet – just a one-page overview of your business.

When it comes to outlining your goals, Griffiths suggests: “Start with 12-month goals and ask yourself what outcome do you want in the next 12 months; set three to five goals you want to achieve, then break it down to three months, six months and the next 30 days. For example, if you want 100 customers in 12 months then how many do you need in the first 30 days? What stepping stones or action tasks do you need to be doing to ensure that your goal comes true?

Remember, a goal is no good unless it has action steps to get you there.”

AND AGAIN There are no hard and fast rules regarding how often you revisit your plan, although Griffiths suggests business owners check at least on a quarterly basis.

“We revisit ours every month to ensure we focus on the next 30 days and what needs to be achieved.”

According to Altenburger, a formal review of the plan should be conducted annually.

“On these occasions the goals would be re-evaluated based on new information available.”

Part of the value in putting together a business plan is to help you visualise and focus on your objectives. A plan that fails to clearly identify tangible and realistic goals misses the point.

POORLY WRITTEN

Maybe this is not a huge deal if the plan is for your eyes only, but if it is to be viewed by third parties, you want to ensure that there are no mistakes in spelling, punctuation or grammar.

STOPS SHORT OF BEING A GUIDE

It’s great to outline your goals, but to get real value from your business plan you need to clearly identify how you intend to reach them.

INADEQUATE RESEARCH

Failing to properly identify and research your target market can lead you to make foolish marketing choices. Get some facts. Find out as much hard information about your target market as possible. Do they read the local newspaper, are they mums and dads of the local footy team, and/or are they tech savvy?

GOING SOLO

You may be a one-man show, but there is no reason why you have to create your business plan in isolation.

There are tons of resources available for small businesses. Get professional help. The right business coach can help you turn what may seem like a daunting task into an invaluable tool for your business.

UNREALISTIC

If your goals are over-ambitious and rely on too many forces that are out of your control, then perhaps you need to scale back your expectations. Creating a 10-page plan with world domination as the end goal can only lead to disappointment.

UNDERESTIMATING THE COMPETITION

Failing to recognise that there are other brokers operating in your space is foolish. You need to look at their business and figure out how you can offer a point of differentiation.

PUTTING IT OFF

Don’t wait to write a plan until you absolutely have to.

Too many businesses make business plans only when they have no choice in the matter. So get cracking!

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5 REASONS TO UPDATE YOUR PLAN

1. MARKET CHANGES

If there has been a significant change in the market, for instance, with the earlier floods impacting pricing and industry reputation, you might want to revisit your plan and figure out how this affects you

2. REGULATORY CHANGES

All industries undergo changes due to new regulations. You need to ensure your business plan is in line with the regulatory demands of the current market

3. PERSONNEL CHANGES

Perhaps you are in the process of adding new brokers, or maybe the business has lost a partner – the business plan should be revised and each person should be aware of the management structure

4. DIVERSIFICATION

5. NEW FINANCIAL PERIOD

One way to grow your business revenue is to look at how you can incorporate diversification into your strategy. Your chances of embracing new opportunities will increase if you visualise how it will fit into your business

There are no hard and fast rules on how often you should update your plan, but a new financial period – annually, quarterly, monthly – can be a good time to update if your goals are being met and your plan is realistic

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4/03/2014 12:54:34 AM

24/04/2014 2:19:35 AM

FEATURE / BUSINESS STRATEGY

8MEDIOCRE WAYS TO

MARKETING

‘Mediocre’ - that’s not exactly what brokers like to hear, but if you’re doing these ‘don’ts,’ writes coach Doren Aldana, you may be writing that all over your 2013 Little things make a big difference. That’s true in marriage, parenting, and in marketing yourself as an insurance professional. In the little time we have together, I want to remind you of – or, indeed, surprise you with – eight deadly marketing sins that insurance professionals commit and that threaten business growth in any market, especially today’s challenging one.

his famous “Time Management Matrix.” Dr. Covey emphasizes that too many business owners spend their time doing “urgent but not important” activities when they should be spending their time on “non-urgent but important” activities. Non-urgent but important activities such as planning and marketing generate continued and sustainable long-term growth.

SIN # 1 - WORKING ‘IN’ YOUR BUSINESS INSTEAD OF ‘ON’ YOUR BUSINESS

SIN # 2 - FAILING TO CREATE AND USE A MARKETING PLAN

I was working with a consulting client recently who was in a sales slump. I decided to perform a very simple diagnostic. I simply asked him to email me a detailed list with all of his activities for the next three days, and then give me a call back. After reviewing his activities it was clear that he was in the “putting out fires” business because that’s where most of his time was spent. Rather than working “on” his business he was working “in” his business.

This industry professional (and you) should be spending as much time as possible working “on” your business doing things like planning and developing “marketing assets” that work while you’re not working.

These are what I call “High Leverage Activities” because they allow you to leverage your time so you can reap a higher long-term payoff.

In his popular book, 7 Habits for Highly Effective People, Stephen Covey hammers this point home using

Last year, I was speaking at a national conference and had about 100 professionals in the room. I asked the crowd to hold up their hands if they had a current marketing plan that they use and refer to on a consistent basis. Only three hands went up!

Studies have shown that small businesses that create and consistently use marketing plans experience an average of 30 per cent higher sales than their competitors. How would you like to increase your sales by 30 per cent or more? Proactive marketing is the key!

Here are a few tips to help you create your marketing plan.

Tip # 1 Create a plan for mining the gold from your existing database of prospects, clients and referral partners.

If done right, this will allow you to maximize your

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“This insurance professional (and you) should be spending as much time as possible working "on" your business doing things like planning and developing “marketing assets” Unfortunately, most insurance professionals never take the time to “systematize” their business, which results in waste, chaos, and ultimately, lost sales. Sin # 1 is partly to blame for not getting around to creating and implementing systems.

SIN # 4 – NOT MARKETING TO YOUR CLIENT DATABASE repeat and referral business. Think of ways to add value and cultivate the relationship with little meaningful touches over time.

Tip # 2 Create a plan to attract more referral partners and motivate them to send you more referrals more often.

The key to success is to develop a compelling, unique value proposition that positions you as an irreplaceable, indispensable asset on their team.

Tip # 3 Create a plan for generating qualified insurance leads independent of your clients or referral partners. I call this “Consumer-Direct Marketing.” For example, you could launch your own Employee Insurance Benefits Program designed to get companies to endorse you to hundreds, even thousands, of their employees.

Many insurance professionals believe that once you “close the deal” and the happy client walks out the door, then the deed is done and you need to quickly move on to the next prospect. While that’s true, your next prospect (in the form of repeat or referral business) might have just walked out the door.

Many insurance professionals tend to think, “That deal is closed – they’re not going to buy another insurance policy any time soon so why waste my time on them? Let’s find a new prospect.” Top producers, on the other hand, implement effective database marketing systems and, as a result, often get 60 per cent to 70 per cent of their business from their past clients through referrals and repeat business. That’s working smart, not hard.

Tip # 4 Block schedule at least 30 minutes every day to implement your marketing plan in each of the above three areas. Plan your work and then work your plan!

SIN # 3 - FAILING TO IMPLEMENT SYSTEMS A system is a business process that generates predictable, consistent, and reliable results day after day.

If you want to see a good example of a system, simply visit a fast food franchise like McDonald’s or Wendy’s.

Notice how they do the same things, the same way, every single time.

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FEATURE / BUSINESS STRATEGY

example, you could offer a special report, seminar, or audio CD to get people to respond immediately via the phone or your website so that you can track your response. This strategy also allows you to capture your prospects’ contact information so that you can continue to follow up with them. Remember, the fortune is in the followup!

SIN # 6 - NOT FOLLOWING UP WITH YOUR PROSPECTS

In your marketing plan you should be including customer appreciation events, monthly or quarterly newsletters, annual policy reviews, birthday campaigns, renewal campaigns, weekly email tips and relevant greeting cards – all of which are designed to stimulate repeat and referral business.

SIN # 5 - NOT TESTING AND TRACKING YOUR MARKETING EFFORTS John Wanamaker’s famous 1886 quote sums it up very well: “I know that 50 per cent of my advertising is wasted... I just don’t know which half!”

There’s nothing worse than spending money on a marketing campaign and not knowing whether it worked. It’s even worse when you continue to spend money on a marketing campaign that you think is working, but really isn’t. Most insurance pros use the S.W.A.G. method for tracking their marketing – Scientific Wild Ass Guess!

The only way to invest in your marketing efforts with confidence is to test a campaign, track it, and measure your results. That’s why I recommend always offering something of high-perceived value and low risk to motivate prospects to respond. For

Studies have shown that 81 per cent of all sales happen on or after the fifth contact. If you’re an insurance professional and you’re only doing one or two followups, imagine all the business you’re losing. Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain!

Here are four keys to developing a successful followup system: 1. Create a lead capture system that is accurate and reliable.

2. Develop compelling followup marketing campaigns that will drive traffic to your website or generate phone calls (i.e. weekly email tips, monthly client newsletter, etc.)

3. Systematize the process so that it happens day in and day out, the same way every time.

4. Automate the system as much as possible using Client Relationship Management (CRM) software and/or an outside mailing house to do your mailings.

SIN # 7 - ‘SPRAYING AND PRAYING’ Believe it or not, not everyone is a good prospect for your insurance services. If that’s the case, why would you spend your precious marketing dollars trying to reach them? It doesn’t make sense. If everyone is your prospect, no one will be your customer. If you want to maximize your marketing magnetism, you’ve got to shift from being a vague generality to being a meaningful specific.

Unfortunately, too many insurance professionals blast their general marketing message using general

“The only way to invest in your marketing efforts with confidence is to test a campaign, track it, and measure your results” 56 | MAY 2014

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The Insurance Business magazine iPad® app is designed for insurance professionals on the go. Packed with all the features, insights, news and analysis from your favourite magazine. This is your opportunity to keep up-to-date wherever you are. Take a look at the current emag, or download previous issues.

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24/04/2014 2:20:10 AMAM 22/04/2014 3:19:57

FEATURE / BUSINESS STRATEGY

“Instead of spraying and praying, narrow your focus onto a specific niche market that actually has a need for insurance and then market to people just like them” marketing media such as radio, bus stop ads, newspaper ads, mass mail-outs, etc. I call this “spraying and praying.” This approach is based on the premise that if you just throw enough yogurt at the fan, something’s bound to stick. The problem is, unless you’re a big dumb company with a multi-million dollar ad budget and no requirement for a positive ROI, you can’t afford to waste a single penny on useless ads.

Instead of spraying and praying, narrow your focus onto a specific niche market that actually has a need for insurance and then market to people just like them. If your ideal prospect is an apartment renter paying $1,500+ per month, then find a policy that suits their lifestyle and resources. Your response rate will go up and your cost of acquisition per client will go down when you begin to target your market.

Go narrow, deep and rich in your niche!

SIN # 8 - NOT DIFFERENTIATING YOURSELF Did you know that your prospect receives, on the average, over 3,000 marketing impressions a day!

With all that clutter you have to compete with, how do you make your insurance business stand out?

How do you differentiate your business in a way

that separates you from the competition? Obviously, it’s not going to happen by following the herd and touting the usual “best rates,” “best service” and “unbiased advice.” It’s like marketing incest out there — everyone else is doing the same thing with ever decreasing results! You need to differentiate your business in a way that makes you stand out from the clutter and get noticed.

A simple way to do that is to keep a close eye on the marketing that really captures your attention and make a note of it. Then borrow and modify those strategies and ideas to create your own unique and compelling message. When in doubt, notice what everyone else is doing, and do the opposite.

CONCLUSION Let’s face it, most insurance pros are committing one or more of the above marketing sins. If you fall into that category, there is hope — you can repent and improve. My challenge to you is to take just one or two sins that are costing you the most in terms of profits and productivity, and focus on improving them first. Once you have them handled, move on to the next, and so on. Extraordinary business success is often the result of small incremental improvements over time.

58 | MAY 2014

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24/04/2014 2:20:19 AM

ADVERTORIAL ADVERTORIAL / NICHE PRODUCTS

SPOTLIGHT ON PAL INSURANCE

Special Events and Beyond Amber Morrison-Givens With a host of new program features, PAL is celebrating its 25th Anniversary this year

WHAT IS PAL?

You may have heard of PAL Insurance Brokers Canada Ltd. Or maybe you haven’t. The familyowned company has been around since 1989 but has only recently begun a major marketing push to make sure that you have heard about its niche insurance products and well-ranked customer service. With a host of new program features and an advanced website application service, the company is marking its 25th anniversary this year with a fresh approach, an updated logo, and enhanced products.

What is PAL? PAL itself stands for Party Alcohol Liability, an acronym created by the company’s founder, Bob Morrison.

PAL Insurance offers three types of special event liability policies to cover most types of events: Party Alcohol Liability, Special Event Liability, and Liquor Liability Only.

PAL’s advanced website provides the option on select programs to pay and bind policies online – a feature that many brokers find invaluable. Recently PAL expanded its special events program to include an annual blanket policy for venues and clients hosting multiple events throughout the year. Features like these further streamline the client application process and make PAL stand out among its peers as one of the leaders in the special event liability market.

MATTHEW TAYLOR General Manager, Matthew plans to continue to offer innovative and unique programs to PAL’s valued brokers.

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NICHE PRODUCTS

Beyond special event liability, PAL’s repertoire includes ten other niche insurance products, many of which have undergone recent expansion or enhancement. The company’s Exhibitor Liability product, which provides coverage to

exhibitors at festivals, fairs, trade shows and the like, recently expanded to provide the option of blanket coverage for all exhibitors at such events. What was the reaction to this enhancement? Trade show organizations and festival hosts praised the blanket coverage as a major advancement in their industry that will save time because they will no longer have to pursue proof of each exhibitor’s insurance.

WEDDINGUARD

Another recently revamped program is called Weddinguard. Marketed as “insurance for wedding essentials”, Weddinguard combines a three-day liquor liability policy with coverage for key elements of a wedding such as bridal attire, loss deposits, wedding photographs and the like.

After the disastrous June 2013 floods in Alberta, which occurred on one of the busiest wedding weekends of the year, the wedding and honeymoon cancellation insurance also included within Weddinguard generated a great deal of local and even national interest. Wedding and/or honeymoon cancellation due to the floods would have been covered in most cases by a Weddinguard policy. In fact, the company’s Weddinguard program provides four levels of coverage to suit the needs of most couples, though if you (like most people) are wondering, the answer is no, “cold feet” is not covered!

THE NEXT 25 YEARS

What is PAL’s goal for the next 25 years? According to Matthew Taylor, PAL’s General Manager, it is “to continue to lead the special event liability market and continue to offer innovative, unique programs to our valued brokers.” Now that you have heard about PAL, visit the company’s website to learn more about all of its programs at www.palcanada.com.

24/04/2014 2:20:25 AM

FEATURE / BUSINESS STRATEGY

WHY YOU NEED

MOTIVATED AND CAPABLE EMPLOYEES

Mark Oliver explains why businesses need to understand the basics of human motivation in order to increase employee satisfaction and productivity in the workplace Motivation combined with capability tends to lead to effective behaviours, and behaviour underpins performance. To get the right answer to the question above it helps to ask the right question and the question in this case would be: how do we get our employees to perform better? If someone has the capability but not the motivation to do something required to perform, then the necessary behaviour is very unlikely to arise and they will not perform; similarly, if someone has the motivation but not the capability. You need both motivation and capability for performance.

WHY MOTIVATION IS KEY The second question that follows on from this is: which is most important with regard to performance â&#x20AC;&#x201C; motivation or capability? At first sight it would seem that the more important of the two is capability, and there is often a great emphasis on training in the workplace to enhance that.

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The appropriate training is important and, after all, motivation is not trainable, so one might wonder what is the use in focusing on human motivation? But look more deeply and you will realise that motivation is much more important than capability in the wider context of both professional and personal life. In short this is because of two facts: 1. Motivation determines what you do; in many ways it determines the path you take at work (and in life).

2. If you do not have the motivation then your capability becomes largely irrelevant. Not surprisingly then, motivation precedes capability and often leads to capability.

Given all this, the third question becomes very important: what can we do to increase motivation?

To answer this you can split the factors affecting motivation into two parts: internal and external to the individual.

Internal factors: The internal factors include a person’s personality (values, beliefs, etc.). An important time to look at this is when recruiting individuals and it is wise to use good psychometric instruments to help increase the accuracy of your decisions, such as The Universal Hierarchy of Motivation Professional Report (see accuratesurveys. com), especially as they are so cost effective.

External factors: Key external factors are the systems and structure of the organisation. But it is often difficult to predict how these affect human motivation. Consider the real-life example of a daycare centre that encountered tardy parents at closing time each day. This situation led to anxious children and frustrated carers. A solution put in place by several day-care centres in Haifa, Israel, was to fine parents three dollars if they were more than 10 minutes late. Rather surprisingly, this solution had the opposite effect and the number of late parents more than doubled after the fine was introduced.

It turned out that the guilt the parents felt in being late was motivating them to be on time, but now the payment of a small fine assuaged these feelings and they were less motivated to be punctual.

A good model on human motivation is helpful

“If you do not have the motivation then your capability becomes largely irrelevant. Not surprisingly then, motivation precedes capability and often leads to capability” because it helps you to predict better what the actual outcomes will be. The Universal Hierarchy of Motivation (UHM) provides the basis for a complete understanding of human motivation so that you can accurately predict what behaviours will result from system or structural changes. For instance, many people still believe that bonuses make employees work harder and more effectively.

Alfie Kohn, a teacher-turned-writer found that the more you reward a person with grades or incentives, then the lower the person’s productivity. In this context, individuals become less intrinsically motivated. Bonuses (extrinsic motivators) actually reduce people’s performance on complex tasks because they limit individuals’ capacity to fulfil the task by changing their focus to how to get the best bonus.

INTRINSIC MOTIVATION American psychologist Edward Deci observed that tangible rewards inevitably reduce the intrinsic motivation of individuals. He stated, “the facts are absolutely clear, there is no question that in virtually all circumstances in which people are doing things in order to get rewards, external tangible rewards undermine intrinsic motivation”.1 (There is one exception to this observation. This involves jobs where there is little intrinsic motivation, such as simple repetitive manual tasks, and in that case, rewards do tend to increase output or productivity.)

The UHM helps you to understand human motivation comprehensively and so makes the most accurate predictions on what people’s motivation

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FEATURE / BUSINESS STRATEGY

“How much an employee is ‘engaged’ to the organisation has been shown in many studies to have a direct correlation with productivity” (and hence resulting behaviour) will be, given a set of system or structural changes. The higher UHM level we are at then the more impact we have on our own and others’ lives. The UHM levels are shown in the table below correlated with the relevant intrinsic motivator and extrinsic behaviour.

How much an employee is ‘engaged’ (feels an emotional bond) to the organisation has been shown in many studies across industries to have a direct correlation with productivity. International studies have found that employees who were fully engaged in their work were almost 50% more productive in terms of revenue generation and 300% better at delivering value than their disengaged (disaffected) colleagues.

The ‘extrinsic behaviours’ in the table correspond to increasing levels of positive engagement, going up the table and starting with the lowest one: satisfaction at work.

The UHM theory explains the observations that paid bonuses at work are poor motivators because they only move employees’ motivation to the level of pleasure, which renders them less able

UHM LEVEL

MOTIVATIONAL DRIVE

INTRINSIC MOTIVATOR

EXTRINSIC BEHAVIOUR

7

MEANING

OPTIMISM

GRACE (COURTEOUS GOOD WILL)

6

WISDOM

UNDERSTANDING (LISTENING)

FEEDBACK (NOT CRITICISM)

5

COURAGE

EMPATHY

ACCOUNTABILITY

4

COMPASSION

SYMPATHY

COOPERATION

3

POWER

PRAISE (GENUINE)

COMMITMENT

2

PLEASURE

HUMOUR

INVOLVEMENT

1

SURVIVAL

BELIEF

SATISFACTION

to deal with greater and more complex challenges which are best dealt with at a higher level.

CONCLUSION So to get the best performance (or combination of people’s motivation and capability) from those employees you currently have in the organisation, it is critical that you provide the structures and systems (including pay systems) that will help to motivate them at the higher levels. To be able to understand and predict what this is you have to have a very good model or framework describing human motivation.

Once you have set up the environment in your organisation that achieves this, only then is it worth investing time and money in training your employees. If you do it the other way around, the risk is that not only will the employees not use the new skills they acquire in their training but also they are more likely to leave the organisation, which means someone else is likely to get all the investment you have made in them!

Note: 1. Psychological Bulletin, Vol. 125, pg 627

Mark Oliver is managing director and CEO of MarkTwo Consulting, and author of ‘The Seven Motivators of Life’. Visit marktwoconsulting. com or lulu.com

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Favourite things...

Peter DaSilva, Cornerstone Insurance Brokers Vacation spot: Anywhere, anytime, never the same place twice.

There is so much to see the in the world I refuse to settle for just one spot.

From the glaciers of Alaska to the jungles of Costa Rica and the enormous history/art/ culture of Italy, it’s all so interesting and beautiful.

My first day in insurance: Sept. 7, 1981. I started as a co-operative education student at the old Prudential Assurance in Kitchener, Ont. I remember going home that night thinking this is such a great opportunity for a young person and I was hooked.

My best day in insurance: Aug. 17, 2009, the day I joined my spouse Wendy at Cornerstone Insurance Brokers.

Sport or pastime: I believe it was the late, great Peter O’Toole who said, “The only exercise I take is walking behind the coffins of friends who took exercise.” A good book or movie is definitely my approach to relaxing.

Food: I love West Indian food; was actually raised on it, as my mother is a great West Indian cook. So without question: Chicken Curry and Roti.

Music: Classic Rock with a tendency towards blues, Led Zeppelin, Rolling Stones, George Thorogood, and of course The Beatles are my favourites.

Movie: A tough category, so many movies that I love. But, the geek in me screams out one in particular – Star Trek II: The Wrath of Khan.

Book: An avid reader of two genres, business and science fiction, therefore two favourite books – “The Five Temptations of a CEO” by Patrick Lencioni, and “Stranger in a strange land” by Robert A. Heinlein.

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EXPERT ADVICE

MAINTAINING A POWERFUL 3-WAY PARTNERSHIP:

YOUR ROLE AS A BROKER Two recent occurrences with Hydro One serve as reminder of broker best practices and demonstrate just how vital it is for brokers to know their partners from the get go brought to you by

Louis Vatrt, Assistant Vice President, Construction & Engineering, RSA

The ideal partnership between a client, an insurance company and a broker is entirely symbiotic, and this alliance is crucial to the success of everyone involved.

Like any strong relationship, the dynamic is both rooted in trust and dependent on fit, but also requires the broker’s profound understanding of the client’s industry, idiosyncrasies and unique business needs.

Further, this relationship is also about give and take.

Though advocacy does not always mean agreement, it does mean finding a long-term working solution that has the client’s best interests in mind.

As the country’s leading insurer, RSA Canada literally has centuries of experience working with a variety of companies and has connected them with some of the best brokers in the business. There have been a number of valuable lessons learned over the years, but two recent occurrences with Hydro One serve as reminder of broker best practices and demonstrate just how vital it is for brokers to know their partners from the get go.

On Dec. 17, 2006, Hydro One, one of the largest electricity delivery systems in North America, experienced a significant failure with one of its 1987 750 MVA autotransformers in northern Ontario, causing a fire to burn for 17 days and resulting in a devastating loss for the company. On March 18, 2011, Hydro One experienced yet another unexpected crisis. This time, due to an internal fault of a 1956 85 MVA transformer that split open and drained oil, a second fire occurred, engulfing another unit in flames.

Both cases were managed appropriately by all parties involved, however the second settlement was reached in significantly less time than the first: 840 vs. 284 days. What, then, should insurance brokers

keep in mind to ensure the most efficient resolutions possible for their clients? Here are three steps brokers should remember every time they service a client:

1

Review previous cases. Take a look at former incidences that can serve as examples moving forward. Thoroughly identify the circumstantial challenges that all parties faced and note what improvements can be made by everyone. Also, take great care to implement these changes and to learn from the lessons that only come with years of experience.

Over time, efficiency will improve with honest reflection and the desire to make each new settlement smoother than the last.

2

Establish comprehensive claims protocols. It is best to tackle this with clients well in advance so everything is in place in the event of a claim. Demonstrate your dedication to their business by integrating seasoned experts, pre-approved adjusters and forensic accountants who can offer the knowledge and understanding of the company’s procurement processes and accounting procedures. Remember, your clients should not be meeting you for the first time in the midst of the claim, so make yourself known beforehand.

3

Be clear about expectations. The first meeting is an opportunity for everyone to be honest about their needs and to lay all expectations on the table.

Take advantage of this conversation and seek to build upon it over time by honouring your commitments, approaching potential road blocks realistically and being solution oriented. Above all else, keep your client’s best interests in mind.

This process, refined for Hydro One from 2006 to 2011, is about several parties coming together to act effectively in the most challenging circumstances, ultimately improving both the process and the result. Over time, similar circumstances will most certainly improve if insurance brokers leverage their connecting role between the client and insurer to propel these enhancements.

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