Insurance Business Canada 3.06 by Key Media

WWW.INSURANCEBUSINESS.CA ISSUE 3.6 | $12.95

Industry icon, CEO Inga Beale: creating a new, all-inclusive culture at Lloyd’s of London

WOMEN OF INFLUENCE 35 trailblazers and achievers charting a bright new course for the future

BREAKING IT DOWN

Why manufactuing clients need equipment breakdown insurance

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ISSUE 3.6

CONNECT WITH US Got a story or suggestion, or just want to find out some more information? twitter.com/InsuranceBizCA

CONTENTS

plus.google.com/+InsurancebusinessCa facebook.com/IBCanada

UPFRONT 04 Editorial

Hats off to female industry trailblazers

06 Head to head

FEATURES

OBVIOUS MVP

Why commercial general liability’s the best for protecting clients

COVER STORY

WOMEN OF INFLUENCE

Kumar Sivakumaran went from the call centre to the C-suite overnight

FROM BOTTOM TO TOP IN A FLASH

Curbing improperly insured UberX drivers

12 Intelligence

This month’s big movers and shakers

14 MGA update

18 Opinion

Embrace, don’t fear, technology

FEATURES 44 Breaking it down

Equipment breakdown insurance: what it is and why it’s essential for some clients

56 Expert advice

Insuring against the hidden risks for small-business owners

PEOPLE 54 Career path

BUSINESS STRATEGY

TIME TO EARN YOUR WORTH

If you’re not making your maximum hourly rate every week, it’s time to work smarter, not harder

10 News analysis

Google, the fierce new P&C player on the block

PEOPLE

Take a look at the ridesharing sector

16 Technology update

PRODUCER PROFILE

Lloyd’s of London CEO Inga Beale talks about being a successful woman in the industry, and how she’s fostering an all-inclusive workplace culture

08 Statistics

Addressing responsiveness concerns

Meet these 35 trailblazing, influential women making their marks on the industry and setting it on a bright course for future female leaders to follow

INDUSTRY ICON

Are current CE time requirements enough?

Tim Withey has successfully tackled every business challenge and beat the Big C, too

55 Other life

DJ Dhillon educates about insurance, and empowers through dance

INSURANCEBUSINESS.CA CHECK IT OUT ONLINE

www.insurancebusiness.ca

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ouT of The box insuranCe DesigneD for Brokers CoMMerCial . residenTial . TransporT *. Marine .

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UPFRONT

EDITORIAL

Female-leader trailblazing

t’s a great time to be a woman in insurance. Almost 75% of attendees at the Insurance Industry Charitable Foundation’s Women in Insurance Global Conference this summer said progress is being made toward achieving gender parity in the industry. Another two-thirds said they have seen progress happening within their own organizations. Of course, there’s still work to be done. Survey respondents suggested there are still limited opportunities for the advancement of women within the industry, as well as some biases against female leaders ascending to the C-Suite. More and more, however, the insurance industry is embracing change. Across the country, workplaces are celebrating gender diversity and creating opportunities for power-house women to rise and make their marks in the business they love. These industry pioneers are truly paving the way for the next generation

Through advanced skills, expertise and commitment to exemplary leadership, these women are propelling the industry forward

www.insurancebusiness.ca JANUARY/FEBRUARY 2016 EDITORIAL Editorial Director Vernon Clement Jones Associate Editor Donald Horne Writers Caitlin Bronson Jill Gregorie Tim Garratt Olivia D’Orazio Executive Editor – Special Features Ryan Smith Copy Editor Dean Askin

CONTRIBUTORS Daniel Mirkovic Stefan Kazakis Dan Waldschmidt Nikki Heald

ART & PRODUCTION Design Manager Daniel Williams Designer Joenel Salvador Production Manager Alicia Salvati

SALES & MARKETING National Account Manager Eric Langille 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 Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

Traffic Manager Kay Valdez

EDITORIAL INQUIRIES

vernon.jones@kmimedia.ca

SUBSCRIPTION INQUIRIES

of female leadership. Through advanced skills, expertise and commitment to exemplary leadership, these women are propelling the industry forward and demonstrating insurance is a positive path for any ambitious person looking for an outstanding career in business. To honour their accomplishments, Insurance Business Canada has scoured the industry to select the year’s biggest trailblazers for special recognition in our list of Women of Influence. Despite many challenges still facing the industry, many success stories need to be shared – and many insurance professionals deserve praise. We hope reading about these extraordinary women will leave you just as excited about the future of the industry as we are. The team at Insurance Business Canada

tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca

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KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Sydney, Denver, London, Auckland, Manila CMCA AUDITED

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Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss

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4/12/2015 5:50:24 AM

UPFRONT

HEAD TO HEAD

Are current CE time requirements enough? CE should be more than just another task on brokers’ to-do lists, but many industry insiders don’t see it that way

Vincent Boulanger

Kirby Wallis

Gail Lawson

“The number of hours we have to complete is enough, but the way continuing education is organized needs to change. I think it’s more about making money than education. Many courses don’t offer the information you need in your day-to-day business. For example, many brokers don’t know much about the products that are important to the industry, such as errors and omissions, and liability. That’s the kind of information a lot of brokers need. There are a lot of challenges facing the industry. To tackle these, brokers in every province should take the same courses. I think customers will benefit because their brokers will be well-educated.”

“There’s such a broad scope of roles in the industry and for some of those roles, the eight hours required in Manitoba is sufficient, but for others that’s a little low. But there’s no maximum of hours you can do in a year; I’m sure there are some brokers who do more than the requirement. The industry has changed so rapidly over the past few years. I think it’s definitely up to the broker to keep pace with the industry, and continuing education is going to be a pretty important part of that for brokers moving forward, especially with how fast the industry changes.”

“I do think continuing-education hours are definitely important in keeping up to date with industry changes. I think current hour requirements are sufficient. And there’s such a wide variety of courses, brokers can find something specific to their needs. It’s important to find courses covering new products coming into the industry, but you need to refresh yourself as well. The current course offerings, at least in Saskatchewan, do offer this mix of new information and refreshers. And, with online courses, continuing education is more convenient and cost-effective. If you can go to a course and take away one thing then it was worth while.”

Insurance broker 2e Chance assurance.com

Insurance broker Wallis Agencies

Owner/broker Oxbow Agencies

DISCONTINUING EDUCATION? Continuing education (CE) is, of course, important. Brokers need to keep abreast of industry changes to properly advise clients on the best insurance products for them. But are the current CE requirements doing the trick? Many brokers say yes, but argue continuing education should be more about quality than quantity. Some industry players would like to see more product-specific courses. Others believe there’s a need for specialized programs depending on the particular line of insurance. Either way, brokers need to research programs that can better their businesses. What’s more, online study options have made hitting those required hours – or even exceeding them – much easier for brokers and agents.

www.insurancebusiness.ca

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property

auto

business

Because their story is ours too. When our policyholders feel good about their claims experience, so do we. That’s why we’re committed to providing quick, reliable and caring service, earning a reputation our broker partners have counted on since 1871. Watch real claims journeys at economicalinsurance.com/stories

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. ©2015 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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4/12/2015 5:51:10 AM

UPFRONT

STATISTICS

The burgeoning sharing economy Businesses like Uber, Airbnb and Lyft are now commonplace across North America. Should brokers view them as a route to future growth? THE SHARING economy has rarely left the front pages this year as the growth and challenges of companies such as Uber, Airbnb and Lyft continue captivating the country. With companies now given multi-billion-dollar valuations, it’s safe to say that, while regulatory issues remain, the sharing economy is here to stay. As the line between personal and commercial insurance continues to blur around

this space, savvy brokers should be looking to the sharing economy as a key strand to the future of their businesses. Small business has been the backbone of many broker businesses for decades. As renting a spare room on Airbnb begins falling into that bracket, it’s time for brokers to learn the ins and outs of the sharing economy – and how its meteoric rise can add to your business.

THE SCOPE OF THE SHARING ECONOMY

$32.5 billion* the global estimated worth of the consumer peer-to-peer rental market *Figures in Canadian dollars

44%

the percentage of US consumers who are familiar with the sharing economy

$419 billion*

Each month, more drivers across America become Uber partners as insurance solutions for the ridesharing economy become readily available

SHARING ECONOMY - THE PROVIDERS An analysis of the 7% of the US population that are sharing-economy providers reveals the trends are here to stay, with young people using the services across a wide spread of home incomes

40,000

AGE

32,000

18 – 24: 14% 25 – 34: 24% 35 – 44: 24% 45 – 54: 14% 55 – 64: 8% 65-plus: 16%

19,000 6,000 1,000 0

the estimated worth of the global sharing economy by 2025

Sources: IPA.org, PwC The sharing economy – sizing the revenue opportunity; PwC The Sharing Economy –Consumer Intelligence Survey, Business Insider Austral

NEW DRIVERS KEEP FLOCKING TO UBER

HOUSEHOLD INCOME Less than US$25, 000: 19% US$25,000 – 49, 999: 24% US$50, 000 – 74, 999: 16% US$75, 000 – 99, 999: 16% US$100, 000 – 149, 999: 11% US$150, 000 – 199, 999: 3% US$200, 000-plus: 11%

January January June November December 2013 2014 2014 2014 2014

Source: Uber: An Analysis of the Labor Market for Uber’s Driver-Partners in the United States

how much more Uber makes than the taxi industry collects in revenue each year in San Francisco

From lowly beginnings in 2008 and 2009 respectively, Airbnb and Uber have risen to become genuine global powerhouses, and their rapid rise looks set to continue both at home and abroad.

Source: PwC - The Sharing Economy –Consumer Intelligence Survey

www.insurancebusiness.ca

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Founded in 2008, Airbnb reached five million nights booked by 2012. • Airbnb is now valued at C$30 billion • 40 million-plus total guests

• 34, 000-plus cities • 190-plus countries • 1.5 million-plus listings worldwide • 1,400-plus castles

Founded in 2009, Uber is now valued at C$78.1 billion. • 290 cities • 60 countries • one million rides every day • more than 8 million users

• C$813 million – Uber paid out to driver partners in the US in the last quarter of 2014 • Provided 2.5 million rides in Austin, TX in the first year of operation

Sources: Globaldeliveryreport.com, Airbnb, Uber, Forbes.com, DMR - expandedramblings.com, Wall Street Journal,

REGULATORS STILL BEHIND ON RIDESHARING As the march of Uber and Lyft is being held in check by regulators around the world, North American cities, states, provinces and territories are grappling with the changing nature of the transport industry

SOME SUSPENDED OPERATIONS

SUSPENSION REQUESTED

BANNED

SHARING ECONOMY TO OUTPACE TRADITION RENTALS Sharing-economy growth over the coming years will far outstrip that of traditional renting markets, presenting new opportunities to brokers Traditional rental markets

Revenue CAGR (compound annual growth rate) growth 2013–2025 Calgary, AB

NEW YORK, NY

car rental

Hamilton, ON

Nevada

TAXI LAWSUIT LAUNCHED

+2%

B&B and hostel rental

+4%

equipment rental

+5%

Sharing-economy markets

Revenue CAGR Growth 2013–2025 car sharing

Peer-to-peer accommodation +31%

Online staffing

Peer-to-peer lending and crowdfunding +63%

+23% San Antonio, TX

Tuscaloosa, AL

Toronto, ON

Eugene, OR

+37% Source: BusinessInsider.com

Source: PwC The sharing economy – sizing the revenue opportunity

www.insurancebusiness.ca

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UPFRONT

NEWS ANALYSIS

REINING IN RIDESHARING Insurance companies are leading the fight against inadequately insured UberX drivers – much to the applause of brokers THE EMOTIONALLY charged and technically complicated tussle between ridesharing companies and insurance regulators took a major turn recently with the decisive actions of an unexpected player – much to the celebration of the country’s insurance brokers. In early November, auto insurance carrier Aviva Canada cancelled the personal auto coverage of policyholders identified as drivers affiliated with UberX. When the company’s fraud centre received a tip that four Ottawa motorists were engaging in ridesharing activity, it launched an investigation into whether those vehicles for hire maintained commercial auto policies. The drivers reportedly responded with “a variety of explanations – or lack thereof – as to why they were not properly insured,” according to a bulletin from the carrier.

“We didn’t proactively go after this, but were specifically asked to investigate,” said Glenn Cooper, senior manager, public relations and social media, Aviva Canada. “But there are risks involved with ridesharing, such as the increased risk of personal injury, theft and collision, and we wanted to make sure those risks were adequately shared among all policyholders.” The move comes in what has previously been a dead zone of official policy regarding the controversial company. Uber formally began its Canadian operations in Toronto in 2012, and now serves more than 10 million people worldwide as of November 2015. The ridesharing service is popular with young people and frequent travellers. However, Uber’s unique app-based service has puzzled insurance professionals from the start.

“But there are risks involved with ridesharing…and we wanted to make sure those risks were adequately shared among all policyholders” Glenn Cooper, Aviva Canada Aviva Canada proceeded to cancel two of the drivers’ auto coverage. The company let the third driver’s policy lapse upon renewal. Aviva agreed to renew the fourth’s policy after she proved her misrepresentation about the vehicle’s use was unintentional.

At issue is when a driver’s personal insurance policy ends and a commercial one is needed. Insurance professionals argue an accident occurring after the app is switched on isn’t covered under a personal policy. Meanwhile, Uber’s company policy only covers drivers after

they’ve accepted a ride assignment from the app. The comparatively higher price for commercial coverage has indeed caused many Uber drivers to omit their employment with the company when applying for coverage, placing insurance brokers in a position vulnerable to errors and omissions claims. Yet regulatory bodies have remained curiously silent on the subject. Various jurisdictions in the United States have passed legislation requiring greater commercial insurance coverage for Uber drivers. But Canadian localities have failed to make such decisive moves. The Court of Queen’s Bench of Alberta issued a temporary injunction against Calgary Uber drivers in late November on the argument that ridesharing drivers should be required to carry commercial insurance and a more appropriate licence. And in Toronto, the city’s Licensing and Standards Division is updating its definition of “taxi” to include the use of apps so the City can file a similar injunction against Uber.

www.insurancebusiness.ca

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THE RIDESHARING REVOLUTION The proliferation of companies like Uber is real, and needs to be dealt with by insurers, regulators, and brokers.

8–11%

of the transportation market in Canada is represented by the ridesharing economy

Canadian municipalities allow Uber drivers

160,000

people drive for Uber in the US and Canada

one million

rides are given by Uber drivers in North America every day Sources: Transportation Research Board, Uber

“This presents a very significant E&O exposure from coast to coast that is new for us” Philomena Comerford, Baird MacGregor Insurance Brokers LP But without official action, the fight to regulate Uber – and provide drivers with appropriate coverage – is at a standstill. According to property/casualty insurer Allstate, which has already introduced an insurance solution for Uber drivers in the United States, it’s primarily this lack of regulation that has prevented what could be a growing market from flourishing. “This is a grey area in terms of regulations, [and] insurance is a highly regulated industry in Canada,” Allstate said. “At this time, insurers are unable to bring an Uber product to market without additional regulatory clarity from various level of government.” That makes the action from Aviva Canada particularly welcome to brokers. They’ve

applauded the carrier and begun calling for the rest of the industry to join the crusade to regulate Uber – though preferably with even harsher consequences. “The penalties for lying on a statutory auto application have been beefed up, and while we haven’t seen authorities throw the book at anybody to this extent quite yet, the fines can be up to $250,000 for the first offense and $500,000 with the possibility of jail time for the second,” said Philomena Comerford, president and CEO of Baird MacGregor Insurance Brokers LP in Toronto. The reason for her vigilance – and that of other brokers across the country – is apprehension about the effect unregulated

ridesharing services could have on the insurance sector and on brokers in particular. “The exposure being thrust upon personal lines carriers is significant and growing,” Comerford said. “From a broker standpoint, this presents a very significant E&O exposure from coast to coast that is new for us.” Yet this attitude of apprehension is a relatively new one in the country. In years past, the public discourse was largely critical of insurance companies for not keeping up with “the Ubers of the world.” Now, many Canadians understand the industry is trying to keep their clients from harm, Cooper says. “It’s as if someone walked into a party and said, ‘Hi, I drive around without insurance all the time,’” he said. “Most people now know the repercussions of that, and understand that you could be financially ruined for the rest of your life.” Brokers are now left hoping this will be enough to get the ball rolling with other insurers and, eventually, the nation’s insurance regulators.

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PRODUCTS

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Arthur J Gallagher

Christie-Phoenix (Victoria) and its affiliate Discovery Insurance Services

Arthur J Gallagher praised their “strong carrier relationships, highly regarded niche expertise and geographic presence” in the BC market.

Co-operators General Insurance Company

Browning Insurance

The Ontario brokerage specializes in personal and commercial insurance policies as well as in financial services such as retirement and estate planning.

Rogers Insurance

CCV Insurance & Financial Services

Rogers Insurance under the previously formed Inowest Insurance Brokers, has acquired a controlling interest in CCV Insurance & Financial Services as part of its strategic expansion into the Ontario market.

Brovada

“Brovada will fit well with Towers Watson’s portfolio of software,” Eric Speer, global leader for Towers Watson’s risk and financial services sector, said. “The addition of the BrovadaOne platform will enable us to offer insurers a broader suite of products via software as a service and cloud-based technologies.”

Ironshore

Fosun

The acquisition of Bermuda-based insurance company Ironshore by China’s Fosun Investments has been completed. Fosun stated it bought Ironshore as a long-term investment, and has given its backing to the insurer’s management and staff.

Nippon Life

National Bank of Australia’s insurance division

As part of the deal, the Australian bank will continue selling the firm’s insurance products for 20 years.

Towers Watson

RSA launches coverage for ‘real customer need’

RSA Canada has launched “Waterproof Coverage,” an endorsement protecting against damage caused by storm activity, eaves, freshwater runoff and other sources of flooding. The insurer developed it in response to an increasingly vocal demand from brokers. “What we wanted to do was make sure we had greater clarity around sewer back-up and limited sewer back-up in terms of what’s covered and what’s not covered,” said Donna Ince, senior vice president, personal insurance. “Not only is fresh water flooding included in the waterproof endorsement, but the sewer back-up is more comprehensive as well.”

Key breakthrough for flood program

The Co-operators acquires Ontario brokerage

Co-operators General Insurance Company is acquiring Bando & Brown General Insurance. Bando & Brown is a brokerage serving clients in the London, Ont., metro area as well as in Kitchener-Waterloo and Toronto. The firm was founded in 2001 by three family members. It offers a portfolio of personal and commercial insurance products. All of Bando & Brown’s employees have obtained the CAIB designation. Co-operators says this acquisition is instrumental in its plans for expanding across Canada. “We’re pleased to be strengthening our presence and growing our agency distribution system in Ontario and across the country, which is part of our growth strategy,” said Kathy Bardswick, president and CEO of The Co-operators.

Brokers have been demanding it for years, and the industry has responded: the Insurance Bureau of Canada is calling for a national flood program, and as part of the initiative, launched a new set of flood maps developed in partnership with LexisNexis Risk Solutions, JBA Risk Management, DMTI Spatial and Brookfield RPS. After years of capturing sensor data, modelling snow-melt runoff, and conducting “big data” analysis, the end result encompasses MapView. It’s a technology allowing industry players to leverage analytics and reporting to gain a thorough understanding of property exposures and potential losses.

www.insurancebusiness.ca

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PEOPLE

PEOPLE Insurer-broker alliance launches new SME website

Gore Mutual has partnered with eight Canadian brokers to launch uBiz, a seamless e-commerce platform providing an “unbundled” product for more than 2.75 million self-employed Canadians across 22 industry categories. The website offers tailored commercial general liability; home-office contents; and legal expense insurance for startups, new ventures and home-based businesses. “For all the businesses out there with less than five employees, commercial insurance can be difficult and confusing, but now it’s simple, easy and cheaper,” said Adam Mitchell, owner-broker, Mitchell & Whale Insurance Brokers.

Airbnb extends insurance to Canada

Home-sharing service Airbnb is expanding its insurance offering to 15 additional countries including Canada, having launched in the United States earlier this year. The Host Protection Program is designed to cover claims made against homeowners if guests are injured while staying at their properties, as well as certain damages caused to the host’s property. The policy, which will be offered through a Lloyds of London insurer, required four years to arrange. Airbnb’s Jonathan Golden says the level of claims has been low. Eight million guests use the Airbnb service in the US and there have been only 50 claims since last January.

Province wins overland flood protection

Brokers in Manitoba have good reason to celebrate: Aviva Canada says residents of the rain-heavy province can now include overland water protection in their homeowners’ insurance policies. Manitoba is now the third province in which Aviva Canada offers this endorsement, following Alberta and Ontario where it launched earlier this year. Aviva Canada, first in Canada to develop protection against losses that it once considered “not possible to cover,” says it expanded to Manitoba due to exceedingly high consumer demand. The Manitoba launch was delayed from July because Aviva needed more time to assess risk using topigraphical maps.

NAME

LEAVING

JOINING

NEW POSITION

Robert J Fellows

Zurich Canada

Allianz Global Corporate & Specialty (AGCS)

Head of market management for Canada

Dave MacDonald

RSA Canada

The Guarantee Company of North America

National vice president, corporate insurance

Patrick Cohen

N/A

Zurich Insurance Group Ltd

Managing director for personal lines and Endsleigh

Alice Keung

N/A

Economical Insurance

Interim chief information officer

Thomas S Gayner and Richard R Whitt, III

N/A

Markel

Co-CEO

Dino E. Robusto

The Chubb Corporation

CNA Financial

Chairman and CEO

Allianz Global appoints Canada chief

Allianz Global Corporate & Specialty, the specialist corporate subsidiary of Allianz Group, has appointed Brad Steele to head of property, Canada. In the new role, Steele is tasked with managing and expanding the company’s Canadian corporate property portfolio. He’ll also be fleshing out its underwriting strategy and maintaining relationships with regional distribution partners. Steele previously served as director of global broker management for AGCS Canada. His “extensive experience in the industry paired with his knowledge” are “invaluable assets to this role,” said Ulrich Kadow, chief agent for Canada.

Echelon Insurance issues executive appointment

Echelon Financial Holdings (Echelon Insurance) has appointed Serge Lavoie as president and lead of its Canadian operations, effective Dec. 1. Lavoie had previously served as director of the company, but will draw on his lengthy executive experience in Canada’s P&C insurance market. Echelon Insurance primarily focuses on non-standard automobile coverage, as well as other niche solutions. Its execs expressed optimism over what Lavoie can bring to the organization. “I’m pleased to welcome Serge to our management team. He’s very familiar with our organization and well known in the broker community across the country,” said CEO Steve Dobronyi.

www.insurancebusiness.ca

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UPFRONT

MGA UPDATE

Notable MGA speaks to broker concerns Annual survey shows MGAs’ responsiveness remains top priority with brokers

“Brokers have the ability to purchase specific programs online without referring to a PAL underwriter, as our website now allows brokers automatic turn around,” Taylor said. “The faster that brokers can type, the faster they will receive the policy documents back.” Even PAL’s programs which do not fit “within the box” and required to be looked at by a PAL underwriter receive much faster turnaround compared to a manual submission by fax, due to the online technology and correspondence.

“... many brokers want to quote and issue a policy immediately ... ”

In a recent “Brokers on MGAs” survey, brokers throughout the country ranked underwriting responsiveness and claims responsiveness as their top priorities in establishing and maintaining relationships with their managing general agencies (MGAs). “We spend a lot of time following up on terms and endorsements, and it would be nice to have an MGA communicating effectively so that we’re not left unsure of what is happening during the marketing process,” one respondent noted. One MGA understands this concern, and feels it’s likely to become even more pressing as

NEWS BRIEFS

more millennials enter the industry. “The way the times are changing, especially with young brokers coming into the industry, many brokers want to quote and issue a policy immediately, without having to wait a few days for it to come through,” said Matthew Taylor, general manager, PAL Insurance Brokers Canada. To meet this need, PAL has redesigned its website so it can better accommodate the growing imperative for speed and faster turnaround time. The customized website features almost all PAL’s offerings – including niche products, all with no processing fees.

Filling pollution coverage gaps

South Western is trying to raise commercial awareness about the need for pollution liability coverage. “… the biggest thing we tell [brokers] is that regular CGL won’t provide comprehensive coverage for pollution,” said Ghazal Hamid, branch manager, South Western Insurance Group. He said “a CGL policy with accidental pollution coverage” may only cover a sudden exposure “reported within 120 to 240 hours of the incident.” South Western “saw the general liability gaps” in pollution coverage “and wanted … to provide a product that can fill” them with appropriate, specific coverage.

Many respondents also expressed dissatisfaction with various MGAs’ underwriting responsiveness, with one believing “They need the ability to respond quickly.” To combat this, PAL has implemented a portal enabling quick communication with brokers. Correspondence for each individual file is included online. Brokers receive e-mail notifications advising them they have messages in the portal. The notification e-mails contain direct links to files in question, and whatever messages accompany them. Questions, changes and even bind requests are all done online. About 14,000 brokers are registered on the PAL website. “Brokers just love it,” Taylor said. He said “going through the portal is about 10 times faster” than manual submissions. Without the portal “we wouldn’t be growing as steadily as we are,” Taylor added.

MGA launches logistics product

Can-Sure Underwriting now has a full inland cargo department, and the team will write multi-line packages covering trucking and transportation risks. These policies are designed for companies that, for example, operate heavy equipment and engage in oilfield hauling. They feature flexible deductibles and warranty conditions. They also cover expenses including costs for moving operating equipment; and contract penalty costs. Optional coverage includes vehicle physical damage and breakdown coverage.

www.insurancebusiness.ca

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Q&A

MGAs in the year ahead Mike Wills President EAGLE UNDERWRITING GROUP

Fast fact Eagle Underwriting is an independent managing general agent founded in 1996. It has offices in Brampton, Ont., and Vancouver. Mike Wills has been with Eagle Underwriting as president since January 2014.

How would you rate 2015 as having been for MGAs? Overall, I think 2015 has been pretty good for MGAs. The successful MGAs, which I like to think include Eagle, are focusing more on niche businesses and niche segments. Brokers, I think, are using MGAs more and more, because they welcome the flexibility and innovation that MGAs bring to the market, when you compare that with maybe some of the larger scale players, who are a little more “by the book.” Many MGAs, including ourselves, have a lot more insurance capacity than they ever had, which enables us to compete against the large scale insurers. Eagle, for example, writes on behalf of a number of different companies, and we’re able to…write not just SME businesses, but even some larger accounts…

What do you expect to be the biggest challenges for MGAs in 2016? I think…it’s a very challenging market. Everybody is competing for the same business. The insurance market is very soft, as we know; rates are competitive, there is a lot of capacity, and the biggest challenge really is competing for that business. So as an MGA, we need to compete not only against the large players, but also with other MGAs. The challenges, I guess, for companies like ourselves is to find what we’re good at; build the products around that; and deliver something the larger players may not be able to do as well – and that’s being flexible, innovative and providing the good service. So for anybody in our

New April manufacturing product

April Canada now offers a manufacturer’s insurance product providing property and liability insurance required to ensure products get placed on retailers’ shelves. “We are delighted to have a solution for small to mid-sized manufacturers, wholesalers and distributers across Canada,” said Kent Pitkin, April’s national director, commercial. The comprehensive package includes property; casualty; crime and boiler cover; and the option to add US cover as well as hook liability, molds and business property.

kind of position, it’s finding the spot where you have something meaningful to offer the marketplace.

What do you expect to be the biggest opportunities for MGAs in 2016? Speaking on behalf of Eagle – and probably some of the other MGAs are in the same position – I think the opportunity is really to develop new products that are meaningful to the brokers and clients. For us, our opportunity for next year is to work with our broker force, meet with our broker partners and help them do two things. One is develop new segments of business. In transportation and trade, it’s quite fragmented…The brokers we deal with typically don’t have a real focus on all the multi-modes of transport and the trade side. So for us, [an opportunity is] to be able to go into their office and meet with their people and help them develop new lines of business and make it easy for them to do business with. The second part is to help our brokers strengthen their relationships with their clients. We have a number of different products we’re able to take an existing client…It could be a type of insurance like cyber liability, where the client doesn’t purchase it right now, but working with a broker to go after that kind of business for these clients I would think gives them an edge on their competition.

MGA ventures into medical malpractice

CFC Underwriting, a specialist lines MGA, has entered the medical malpractice market with the appointments of Sharon Brennan and Jo Clift. Both women were recruited from WR Berkley. Brennan boasts more than 20 years of experience in this market. Clift also has extensive experience underwriting health care. CFC itself has been underwriting health care businesses for a decade. Its focus previously was on products for allied health professionals and long term care. The company said expanding with a “medical malpractice product is a logical step.”

Partnership yields ‘first to market’

The Guarantee Company of North America is now partnering with Insurance Search Bureau of Canada (ISB Canada). The collaboration’s aimed at supplying transportation clients with preferred pricing, and risk management tools. As well, it will add more features to the Go-To Solution platform, which includes smart monitoring to help keep track of assets. Guarantee is a specialty insurer in niche segments such as surety. ISB Canada provides services such as background screening for the insurance industry.

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4/12/2015 6:00:11 AM

UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Edmonton group files $150-million suit against Uber

Three Edmonton taxi companies have filed a lawsuit against Uber Canada, alleging the ridesharing service skirts insurance law, engages in price fixing and operates outside the city’s bylaws. Greater Edmonton Taxi Services, Alberta Co-op Taxi Lines and 24-7 Taxi Line took action against the tech company days after city officials proposed a bylaw seeking to regulate Uber’s service by bringing it into insurance and licensing compliance. A similar $410-million, class-action suit is pending in Ontario.

Squaring off directly online

Having spent two years developing its online brokerage offering, Canada’s Surex Direct is now going after the direct writers of insurance. Surex claims version two of its software – dubbed Brix – combines the best of the direct and brokerage markets, creating a product and service appealing to all. The online quote process lets consumers preview bundled rates, purchase with e-signature and have instant access to proof-of-insurance documentation. It also formulates comprehensive, full package quotes that can be broken down – a model contrary to many comparison sites typically emphasizing price over suitability.

Homeowners’ UBI raises flags

In the US, usage-based insurance (UBI) is coming to homeowners’ policies – and raising serious privacy questions. In the past year, four leading home insurance companies in the US have announced deals with companies providing “smart” products for homes. These devices control certain major appliances. “If properly controlled for

privacy and only installed with the policyholder’s permission and total transparency, they can make a home safer and reduce the likelihood of death and destruction, but without strict protections, these could be a threat to a family’s privacy and intimacy,” said Bob Hunter, insurance director for the Consumer Federation of America.

Linking to most producer profits

Most producers know being active on certain social media sites is important. But a new report from Putnam Investments reveals one tool’s bringing in more clients – and more revenue – than others: LinkedIn. According to the report, 95% of financial advisors – including producers – used LinkedIn in the past year for business purposes. These include for improving their referral networks; building brand identity; and expanding their professional networks. A total 66% of respondents said LinkedIn was their go-to tool for finding new clients. That’s because most of their target audience is active on the site.

Canadian drivers don’t trust UBI Telematics and usagebased insurance (UBI) are relatively new in Canada. And a new Allstate Canada study released this fall reveals many drivers remain skeptical of the technology. Drivers base their opinions of it on “erroneous assumptions” and “confusion,” the study says. Even though UBI’s designed to save consumers money, only 41% of Canadians believe telematics can lower their auto insurance rates. About one in three people (34%) feel it has no benefit to them at all, according to the research. Meanwhile, 26% of Canadians believe telematics could lead to increased premiums. Researchers blame the novelty of the product.

What could Google the insurer look like? Industry insiders warn against a fierce new competitor in the P&C insurance marketplace Google’s announcement earlier this year that it would accept liability for injuries or damages caused by design flaws or faulty components in its autonomous vehicles is a move one industry insider says “nobody noticed,” but should be considered a giant red flag to brokers. “They’re trying to demonstrate confidence in their product, which is great,” said Blake Corbet, managing director at Vancouverbased PI Financial Corporation. “But knowing what I know about Google, I immediately assumed this a way for it to get into the insurance business.” Many analysts have commended the tech giant for willingness to take on risks accompanying emerging technology. Some, however, like Corbet, have pointed out this could be a “Trojan Horse.” Corbet argues, Google’s launch of an insurance-comparison site earlier this year indicates its intention to move into the P&C insurance market. He feels driverless cars are the perfect launching point for Google to become a coverage provider. This would be a particularly strategic plan. The nature of autonomous vehicles allows their auto insurers to operate with a higher profit margin than traditional insurers can. It’s unlikely Google will be as concerned

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about claims as traditional P&C insurers are. So far, all its driverless car collisions were the fault of human drivers – a statistic verifiable by video and data sensors. This impeccable driving record, combined with the fact that Google could potentially mass produce these cars, has striking ramifications for the insurance industry. “They’re effectively insuring the best cars on the road, the cars which they also design and manufacture,” Corbet said. “When they sell these cars or provide them to a distribution network, they can presumably require the purchaser to bundle insurance with the cost of the car.” This also has the potential to create a two-tiered insurance market. “Google can presumably charge lower insurance rates for their cars, and higher insurance rates to the vehicles that are driven by humans, since we’re not good drivers,” Corbet said. The shift to driverless cars will undoubtedly affect the broker and agent role – but there will still be a need for niche advisors. In addition, in a sharing economy where autonomous vehicles only serve to pick up and drop off customers (similar to a driverless Uber), North Americans will still have insurance needs. “Industries adapt, and there’s probably an angle here for people to have their own personal insurance. What happens when you leave personal belongings in the vehicle, for example?,” Corbet said. Corbet feels it’s a waiting game to see how insurance evolves for meeting consumer demand.

Q&A

David Hollander Principal and global insurance practice advisory leader ERNST & YOUNG

Fast fact David Hollander has more than three decades of experience working in and advising the insurance industry. He joined EY in his current role in 2011.

Insurance and technology: 2015 and beyond What interesting trends in technology, and its utilization, have there been in the insurance industry in 2015? The sharing economy creates new opportunities. Technology is rippling through product invention, new entrants coming in, and continued major investments by our carrier clients in streamlining their back offices and making sure they’re positioned to interact with customers in a very different way, and their brokers, agents, and even their own employees.

What do you consider the most exciting technological developments on the horizon? One is the use of software robotics to help clients automate repetitive tasks… If you can describe the rules that [they] should follow, you can have these software robots processing transactions on your behalf 24 hours a day, taking people out of menial roles and allowing folks to focus on more analytical, higher value-added roles, and/or taking costs out… The second one is the use of ... cognitive computing for assisting consumers and others with the sales and service of insurance…There’s a segment of the population…that would prefer an interaction in real time, any time they want it, and we’re finding that in the small commercial space, and in certain service activities, many carriers [are] looking very hard at the whole use of cognitive computing robo-advice for sales activities. That will only increase as the millennial population ages, matures and gets to a business-owning age, which is pretty much now. I’d say the third major category is devices that capture data broadly…If I really understand much more granularly not just the driving patterns but the health patterns of people; the health patterns of buildings; the care you provide to your home or you don’t provide to your home from a security perspective; the nature of pricing insurance and then the availability of insurance will be very different… We think bundling is a technique you’re going to see more and more of – one policy for every one of your insurance needs…It really is an exciting world.

How important is it for brokers to be keeping pace with and adopting new and emerging technologies? I’d say there’s a broader theme for the brokers…It’s what happens when your end customer – be it a business or an individual, depending on the line of business – what happens when they begin to know more about their underlying risk than you do, because of the data that’s available?…It changes how the product needs to be bought and packaged and sold ... I think … brokers and the carriers generally need to be shifting to be health, wealth and risk advisors, not [dealing with] risk transfer solely.

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UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email insurancebusiness@kmimedia.ca

Automation highlights crucial broker role Insurance-industry automation, according to Gina McFetridge, won’t spell the end for the broker channel – it could mean the opposite THE USE of technology to automate quoting, underwriting and delivery of insurance products has had a profound impact on the industry and will continue to shape its future. As brokers, we pride ourselves on our ability to build strong, lasting relationships as trusted advisors to our clients, and as respected brokers to our insuring partners. Our unique position enables us to advocate on behalf of our clients when a risk doesn’t fit the appetite of a company’s underwriting guidelines. A positive reputation with a company underwriter gives us the opportunity to make a case for the company to take on a risk it wouldn’t otherwise have considered. But what happens to the unique broker proposition when underwriters are replaced by computer programs? To continue providing value for our clients, it’s important for brokers to embrace new ways of connecting with our clients through technology. Furthermore, I’d argue that as the insurance industry uses technology to further automate processes, we brokers have an even more crucial role to play in helping our clients select the best insurance products for their needs. We’ve already seen foreshadowing of what’s coming through changes to risk submissions. Most major Canadian insurance companies have already started reducing and consolidating underwriting and administrative staff as they automate processes. In just a few short years, we’ve watched paper applications make way for e-mailed applications. Now most

brokers upload underwriting information directly into company portals. Some policies are even issued without company underwriter review, let alone approval. Let’s go back to the broker’s traditional role: providing a critical link between the client and the insurance company of choice. How does a broker fulfil this role of client advocate when the person making the underwriting decision is a computer? I’d argue that, as human expertise

increasingly expect the quick completion of a sale. While some clients will choose to self-serve at points, they may still require guidance and assistance from someone with insurance knowledge. Recent consumer surveys suggest there’s a growing desire to complete insurance transactions online. But many consumers lack solid understanding of the products they’re purchasing. Basic insurance information is available online, but it takes more time and expertise to compare coverage and determine how much coverage a client needs. Brokers must make a consistent investment in education to provide more in-depth knowledge to consumers on their insurance purchases. This will be the true value of the future broker. Instead of looking at insurance-industry automation and the rise of digital solutions as threats to broker-client relationships, we must embrace it – it’s not really about technology; it’s about building relationships. This means communicating with clients using their medium of choice, be that face-to-face, phone, e-mail, mobile device or the web. Technology, the rise of direct writers and self-serve options have all been criticized

“Basic insurance information is available online, but it takes more time and expertise to compare coverage and determine how much coverage a client needs” is replaced by computer algorithms and client portals on the company side, the broker’s role as trusted advisor becomes more critical. Technological changes aren’t doom and gloom for progressive brokers. In many instances, the ability of brokers to directly enter and issue policy documents on behalf of their clients has improved the speed and accuracy of document issue. This is a positive outcome for our clients and can strengthen the trust they put in us. That’s because now we can in real time not only discuss products and provide quotes, but also confirm costs and issue policies. This ability is important as more direct writers enter the scene and clients

as leading to the commoditization of the property and casualty insurance industry. This may be true, but as the saying goes, there’s no turning back once the floodgates open. We as brokers must recognize the demand for self-serve, transactional-based relationships is not going away. To stay relevant, we must evolve our current service offerings to meet the diversified needs of clients. Gina McFetridge is vice president at Archway Insurance. She currently sits as treasurer on the executive board of the Nova Scotia broker’s association, IBANS. Gina holds a B. Journalism, Master of Arts and CAIB Honours designation.

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4/12/2015 6:02:29 AM

PEOPLE

INDUSTRY ICON

CHAMPIONING DIVERSITY AT LLOYD’S OF LONDON Lloyd’s CEO Inga Beale talks about succeeding as a woman in the industry and fostering an inclusive workplace culture INGA BEALE began her career 33 years ago, as the only female out of 35 underwriters, and there were significant challenges she had to overcome to succeed. But some of the greatest obstacles Beale faced were those she describes as self-imposed. “I thought I needed to fit in,” she tells Insurance Business Canada. “Nobody came along to me and said, ‘You need to fit in’, but I thought I needed to fit in. “It took me about 10 years of working to realize that, actually, I should just be myself.” Beale says she also lacked confidence in her abilities in her earlier days. “The first time I was offered promotion, which was after 14 years of working, I said no, that I didn’t think I was up to the job.” Fortunately, Beale was employed at the time by a company she says proactively supported the development of women. “They immediately sent a senior woman to come over and speak to me, and say, ‘Why did I say no to the promotion?’ We talked about it and I said, ‘I’m not confident enough to take this on’, and she said, ‘Don’t be silly. We all think you’re good enough, so take the job.’

“I needed that mentoring and coaching to get me through it.” After that, Beale became much more confident. “I was always jumping at every opportunity, because I think if you don’t take those somewhat scary opportunities – and often, they are – I think you’re holding yourself back.”

themselves to progress in the industry, Beale talks about the ‘PIE’ model. “P is for performance, which means you have to do a good job. You have to perform. But so often, and particularly women, that’s all they focus on, and they think they’ll get noticed. “But it isn’t just that. You have to work on the I of the PIE as well, which is the

“I was always jumping at every opportunity, because I think if you don’t take those somewhat scary opportunities – and often, they are – I think you’re holding yourself back” She cites one of her greatest moves as a decision to relocate from London to Kansas City, MO, to work at the US headquarters of her employer at the time. “It seemed so scary giving up my home [and] all of my broker friends…I was moving into a back office job, no longer really market-facing, in a strange country, and it was the scariest thing that I said, ‘Yes.’”

Breaking down barriers Discussing how other women can help

image – how you come across, your personal brand. [It’s] very important because we make judgments on people within seconds of meeting them. “And then the E is for exposure, and that’s where I say it’s so important to build networks. It’s so important to get exposure within your firm. Volunteer for everything that’s going on; get involved in cross-functional teamwork; network. Make sure you build your business networks.” Beale has long advocated greater

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PROFILE Name: Inga Beale Company: Lloydâ&#x20AC;&#x2122;s of London Title: Chief executive officer Age: 52 Years in the industry: 33

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PEOPLE

INDUSTRY ICON CAREER TIMELINE

2014 diversity in the workplace. “There’s lot of stats and analyses to show that more diverse teams are more successful, particularly entering new markets and being innovative,” she says. “They have a 70% higher chance of being successful going into a new market because you get enough diverse input and thought into it. “More and more as well, people want to deal with people that they can relate to. So more and more, if people are doing a tender, and a team goes in and they have to pitch to

Industry landscape Talking about the current market climate, Beale highlights research Lloyd’s has conducted with risk managers of businesses around the world, which shows that less than 10% of the risks they face are covered by insurance. “All the risks are changing,” she says. “As an insurance industry…we’ve got to cope with the new risks. “The broker has a critical role to play in working with their clients and looking at the gaps in their insurance coverage and where they can be

“The broker has a critical role to play in working with their clients and looking at the gaps in their insurance coverage and where they can be innovative and come up with new products” a management team on the other side, the management team wants to see people that reflect them. We’re getting more and more diversity within management teams. That’s forcing more diversity in service providers, and it just builds from there.” As important to Beale as gender diversity is ethnic and cultural diversity, and inclusion of the LGBT community. “We’ve launched ‘Pride@Lloyd’s’ for the LGBT community,” she says. “That’s because I talk openly about [how] it’s okay to be gay or lesbian, and we talk about people’s sexuality. All I’ve done is use the words in conversation at work, and it’s made it okay to talk about it, and for people to do something about it. “I remember speaking to one of our employees. He’d been working at Lloyd’s for decades. He came along and he said his son’s gay, and he never had the courage to talk about it at work until this group started … It’s just those little things that matter so much.”

innovative and come up with new products.” Beale says brokers should invest in efforts to become smarter around understanding customers. “You’ve really got to understand the buying behaviours of people,” she says. On capturing the data necessary to better understand buying behaviours, Beale says: “You need to understand what’s driving their decision-making. You need to dig in much more and that is more time-consuming and can be costly, but I think in the long run, it’s worth it.” Beale speaks positively about current efforts in Canada to develop an MGA association. “Because the association is quite embedded in the US, we have constant dialogues with them, and therefore they’re always giving us feedback as to what we can do better. For us, it’s great because it’s a collation of all of those voices together. “It’d be wonderful to be able to do that here in Canada and get that ‘one voice’ feedback.”

Joins Lloyd’s as global CEO in January. Also serves as an external board member to the UK government’s Financial Services Trade and Investment Board

2012

Becomes group CEO of Canopius, a significant Lloyd’s managing agent

2009

Becomes global chief underwriting officer of Zurich

2008

Joins Zurich Insurance Group as a member of the group management board with responsibility for mergers and acquisitions, organizational transformation and internal consulting

2006

Becomes group CEO of Switzerlandbased reinsurance company, Converium

1992

Joins GE Insurance Solutions, going on to hold several underwriting management roles and gain experience across London, the US and France

1982

Begins career at the Prudential Assurance Company in London

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4/12/2015 6:03:17 AM

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4/12/2015 6:03:24 AM

COVER STORY

WOMEN OF INFLUENCE

WOMEN OF INFLUENCE IBC highlights the accomplishments of the female professionals changing the face of the industry

AT A time when women are increasingly rising to prominence in the insurance industry, it wasn’t an easy task to narrow down this year’s list of women of influence. We asked for your nominations of those making a mark in the industry. We

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also reached out to brokers, agencies, insurers and others to come up with this list of talented professionals. IBC believes the women featured in the following pages represent the insurance space’s best and brightest.

C UEN E

WOME N

OF I NFL

2015

INDEX BY NAME NAME

PAGE COMPANY

Kathy Bardswick

The Co-operators

Karen Barkley

Markel

Cindy Bowden

Cindy Bowden Insurance & Benefits

Catherine Cake

Drayden Insurance

Shari Douglas

RSA Canada

Susan Ewart

HAL Insurance

Karen Gavan

Economical

Dina Godhino

Jones DesLauriers Insurance Management

Carol Graham

Sutton Special Risk

Eileen Greene

HUB International HKMB Limited

Judy Gougeon

Gougeon Insurance Brokers

Sandra Henkel

Trisura Guarantee

Donna Ince

RSA Canada

Marsha Jones Dooley

Jones-Dooley Insurance Brokers

Lynn Kelly

CAIW

Lana Kenny

Travelers Canada

Christine Lithgow

Aon Reed Stenhouse

Monique Leroux

Desjardins Group

Sharon Ludlow

Aviva Canada

Tracy Makris

Bryson & Associates

Lindsay Mather

Rogers Insurance

Karen McGee

Vertical Insurance Group

Heather McLachlin

Cowan Insurance Group

Ellen Moore

Chubb

Tammie Norn

ProFormance Group Insurance Solutions

Lynn Oldfield

AIG Canada

Sephora Sciara

TIWA

Colette Taylor

RSA Canada

Karen Traynor

Trisura Guarantee

Crystal Underhill

Reith & Associates

Marilyn vanGansewinkel

Trisura Guarantee

Gillian Van Kempen

Best Buy Insurance Brokers

Wendy Watson

ORBiT

Wendy Wildeman

Rogers Insurance

Robyn Young

Lundgren & Young Insurance

CATHERINE CAKE Branch manager DRAYDEN INSURANCE Why hot:

Catherine Cake was one of the founders of the Alberta Professional Young Insurance Brokers. Her work with the organization has increased its profile and earned it the respect of brokerage principals and sister associations across Canada. Cake is also a tireless advocate for young people in the industry, speaking to students at the high school and university levels about the advantages of careers in insurance. A branch manager for Drayden Insurance, Cake played a critical role in that company’s recent systems change, writing workflows; providing training and support; and working with software providers. “She is a young mom and a partner at her company and she hasn’t even hit 30 yet,” says a colleague. “There is nowhere she can’t go! I am thrilled to be able to have worked with Catherine in the past and look forward to watch where her insurance journey takes her.”

ROBYN M YOUNG Chief administrative officer LUNDGREN & YOUNG INSURANCE Why hot: Robyn M Young is the

current president of the Insurance Brokers Association of Alberta. In that role, she represents the interests of more than 5,300 brokers. Young also serves as the president of the Province of Alberta Registry Agents Association. She’s also the co-owner of Lundgren & Young Insurance, one of the largest independently owned insurance brokerages in Canada. Known for her keen business sense, Young is an acknowledged leader in the Canadian insurance world.

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COVER STORY

WOMEN OF INFLUENCE MARSHA JONES DOOLEY

JUDY GOUGEON

Owner JONES-DOOLEY INSURANCE BROKERS

President GOUGEON INSURANCE BROKERS Why Hot: Judy Gougeon became president and CEO

Why hot: A licensed broker for

more than 30 years, Marsha Jones Dooley holds CIP and CAIB designations. She’s also a certified Elder Planning Counselor. She has been named to Insurance Business Canada’s Elite Brokers list two years running. She has also won recognition as her community’s best insurance broker numerous times from several different bodies. As well, Jones-Dooley Insurance Brokers has been recognized as among the best brokerages in Ontario. Dooley currently serves as president of her local Rotary Club.

SHARI DOUGLAS Vice president of underwriting operations RSA CANADA Why hot: Earlier this year, Shari Douglas became RSA Canada’s vice president of underwriting operations. Prior to that, she was national director for Affinity Group & Private Client Service at RSA. Douglas, over her 30-year career in the insurance industry, has become an outstanding and experienced leader by leveraging her in-depth expertise to navigate an evolving broker and customer landscape. Douglas is playing a key leadership role in transforming RSA Canada’s personal insurance business to deliver an exceptional broker and customer experience. She has also developed a strong personal reputation in the insurance industry by fostering positive relationships through an extensive network. “You’d be hard pressed to attend any insurance event without speaking to someone who knows her well,” says RSA communications consultant Merissa King.

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of Gougeon Insurance Brokers in 2002, taking over the role from her father when she was just 33 years old. Since then, she’s been leading a growing company that serves clients across the country. Despite losing her husband, father and cousin in a fatal airplane crash in 2013, Gougeon’s determination has kept the company going strong. “She is a true leader,” says one employee. “She inspires us to work hard each and every day, and when the going gets tough, she’s trudging through the dirt with us -leading by example.” Gougeon is also active in the community, spearheading the Sudbury Community Airbandz fundraiser in support of the Northern Cancer Foundation.

EILEEN GREENE Vice president and partner HUB INTERNATIONAL HKMB LIMITED Why Hot: With more than 20 years of industry

experience, Eileen Green has been with Hub International since 2007. In her role as vice president and partner, Greene develops new business and serves as a client advocate. Gregory Belton, chairman of Hub International HKMB Insurance Brokers, has recognized Greene as “a true leader and an inspiration to women not only within the insurance industry, but also within her community.” Greene has received a Best Women in Sales Award from Zars media and a Hub Legend Award. The Hub award recognizes those who consistently achieve new-business production at the highest levels for five consecutive years. Greene also serves as a board member for the Woman’s Brain Health Initiative and Greenstone Clinic, which is dedicated to the treatment and recovery of those with substance abuse issues.

SUSAN EWART Director of insurance services HAL INSURANCE Why hot: Susan Ewart came to HAL Insurance as a respected

commercial broker and was a manager within a year. She avidly hunts new lines of business, recently adding Canadian Sports Insurance Brokers to HAL’s portfolio. Ewart is well respected throughout the industry. Her infectious enthusiasm for insurance has led entry-level staff to make their careers in the industry. “HAL Insurance is owned by the Saskatchewan Trucking Association, a not-for-profit organization governed by a board of directors,” says a colleague. “Running a brokerage by committee is not always easy, but she does it with class and is trusted and respected by the STA and its board.”

C UEN E

WOME N

OF I NFL

2015

KAREN GAVAN President and CEO ECONOMICAL INSURANCE An accountant by background, Karen Gavan began auditing insurance companies about 33 years ago. When she left public accounting, she worked for a number of insurance companies, both life and P&C. When she retired in 2005, she became a corporate director for a number of corporations, including Economical. She joined the Economical board in 2008, and became president and CEO in 2011.

IBC: What were some resources or words of encouragement that helped you get where you are today? Karen Gavan: Obviously, the natural things like education and experience are really important. Firstly, my father was hugely influential on me. He really taught me that I could achieve anything if I put my mind to it – to aim really high, to work hard. He said it’s better to have tried and failed than not to have tried at all.

IBC: Has the industry changed in its treatment of women since you started in insurance? KG: Absolutely it has changed. I started my career in public accounting. Back then, the majority of the leadership teams were male. Female mentors were fewer and further between. Back then insurance

companies had executive dining rooms and drinking on the premises. Female role models have changed a lot. When I look back on when I started my career, many female role models seemed to think they had to fit into the culture and be “one of the guys.” Not just in the insurance industry but also generally – when women came across as confident or assertive or self-assured, they were thought of as tough or bitchy.

IBC: Do women still face any challenges in the industry? KG: Women in insurance still face some of the cultural dimensions. We still have an industry where there are a tremendous amount of social events with tremendously long cocktail hours. While those are great networking opportunities, women have to be careful there. Women have to be very cognizant of the fact that you can’t drink or act or talk like you’re one of the guys. You come across in a totally different way. So being comfortable in your own skin is really important.

IBC: What advice do you have for women aspiring to be business leaders? KG: Being a naturally analytical person, [I think] you can’t always have every decision completely analyzed – you have to learn to rely on intuition and gut. You monitor it, and you may have made the wrong decisions – but as long as you’re willing to admit it and course-correct, making decisions allows the company to move forward. Not making decisions results in lethargy in the organization.

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COVER STORY

WOMEN OF INFLUENCE MARILYN vAN GANSEWINKEL

TAMMIE NORN CEO PROFORMANCE GROUP INSURANCE SOLUTIONS

Vice president of corporate risk TRISURA GUARANTEE Why hot: Marilyn vanGansewinkel

Why hot: Tammie Norn started

joined Trisura Guarantee in 2006 as employee number seven – and one of only three in corporate risk at the time. Now the company’s vice president of corporate risk, vanGansewinkel’s has more than 15 years of industry experience. Her know-how has helped push the company to new heights. She has been a key player in Trisura’s success, and in its growth to more than 100 employees. vanGansewinkel also been a key to the company’s financial growth; corporate risk accounts for about 25% of Trisura’s revenue.

ProFormance Group Insurance Solutions in 2008 to give the insurance industry an alternative to using multi-lined adjusting companies for handling specialized claims and third-party administration needs. A proponent of education and a tireless advocate for the industry, Norn spent three years as an Insurance Institute Career Connections ambassador, helping young people learn about insurance careers. She’s also a past president of the Ontario Independent Adjusters Association. Norn is a recipient of the CIP Society’s Emerging Leader Award.

SANDRA HENKEL

WENDY WATSON

Vice president of strategic initiatives TRISURA GUARANTEE

Executive director ORBIT

Why hot: As Trisura Guarantee’s vice president of strategic initiatives, Sandra Henkel’s focus on development, innovation and execution has given the brand a competitive edge against companies 10 times its size. A marathon runner, Henkel has taken the lesson of racing to heart, continuously striving to surpass her own records. Henkel holds a Bachelor of Commerce from Ryerson University and an MBA from the Richard Ivey School of Business. Prior to her work with Trisura, she held various senior positions at leading Canadian property and casualty insurers. Henkel is also active in her community, volunteering with various local and international charities. She served on the Simcoe/Muskoka YMCA’s board of directors from 2011 to 2014.

Why hot: Wendy Watson was an integral part of the

2009 formation of the Organization of Real-Time Brokers Implementing Technology (ORBiT). ORBiT was formed to bring industry partners together for developing real-time workflows that could be used by all brokers regardless of their management systems. Watson immediately took charge of ORBiT as president and executive director, and took a strong stance to move the initiative forward. ORBiT now includes more than 100 brokerages across Canada. It represents more than 5,200 brokers, 13 carriers and 10 technology vendors.

GILLIAN VAN KEMPEN Managing director and executive vice president BEST BUY INSURANCE BROKERS Why hot: With more than 5,000 clients and 8,000-plus policies written, Gillian Van Kempen easily earned a spot on IBC’s Elite Brokers list earlier this year. She topped the list for both biggest books of business and most policies generated. The principal broker for Best Buy Insurance, Van Kempen specializes in P&C, and generated 2014 revenue of almost $1.48 million. What makes Van Kempen so successful? “Ethics and hard work, combined with always increasing your knowledge of insurance trends and products,” she says. “We strive to never lose sight that we are working for all of our clients – no matter how big or small.”

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Specialist risks need specialized expertise With more than 300 years’ experience, Lloyd’s provides innovative re/insurance solutions for businesses and individuals in more than 200 countries and territories worldwide. Lloyd’s unrivalled reputation for insuring unusual and complex risks is underpinned by its underwriting expertise, strong financial ratings and global licensing network. In a world of emerging and evolving threats, Lloyd’s has your risks covered. Lloyd’s – the world’s only specialist insurance and reinsurance market.

Lloyd’s Canada offices Toronto - Montreal

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COVER STORY

WOMEN OF INFLUENCE CHRISTINE LITHGOW

ELLEN MOORE

President AON REED STENHOUSE

President CHUBB

Why hot: Named president and CEO of Aon Risk Solutions Canada in 2012, Christine Lithgow was Aon Risk Solutions’s first female country head. Lithgow began her career in 1978 as an account executive trainee in the United Kingdom. Lithgow has been with Aon for almost three decades. Prior to her appointment as president and CEO, she served in a number of executive positions, including executive vice president of national client services and market relations; chief broking officer; and president and chief broking officer. Lithgow has also served as the Canadian executive sponsor for the Aon Women’s International Network, which promotes women’s professional development. She also speaks regularly to women’s groups.

Why hot: Ellen Moore is a

champion for diversity in the insurance industry. She has followed that calling since early in her career at Chubb, helping found the company’s Women’s Development Council. Today, she continues mentoring and developing women and minorities throughout the company. Her commitment to diversity is also having an impact on the broader industry. Moore co-founded the Executive Women in Insurance Network and is a former co-chair of the Toronto chapter of the International Women’s Forum. Last year, Moore received the Catalyst Award, which recognizes leadership and commitment to advancing women.

SEPHORA SCIARA President TIWA

LYNN OLDFIELD President and CEO AIG CANADA

Why hot: As president of the

Toronto Insurance Women’s Association, Sephora Sciara leads the charge to help empower insurance professionals through education, networking and the promotion of high ethical and professional standards. Sciara has been in the insurance industry for more than 15 years, holding various positions at both the broker and company level. Currently, she’s the manager of corporate underwriting at CAA Insurance Company. She has been an active member of TIWA since 2009 and has served on the organization’s executive board since 2012. Her initiative to promote TIWA through social media has resulted in new memberships and increased participation. In addition to her TIWA duties, Sciara has organized and participated in the Canadian Cancer Society Relay for Life for the last two years. She also serves on the CAA SickKids Foundation Charity Committee.

www.insurancebusiness.ca

Why hot: Lynn Oldfield has been with AIG Canada since 1991. During her career there, Oldfield has served in the lead position for financial lines; headed up the natrional accounts practice; launched the company’s mergers and acquisitions products for the Canadian market; and developed global risk solutions. In 2008, Oldfield was named president of AIG Canada; two years after that, she also took on the role of CEO. Oldfield is passionate about education, teaching Principls and Practices of Insurance at the Insurance Institute of Canada and contributing to updates of the IIC’s Chartered Insurance Professional Program. Oldfield also created AIG Canada’s Emerging Leaders program and launched the Pay It Forward campaign. It connects young professionals with industry veterans. This year, Oldfield was honoured with the CIP Society’s Established Leader Award.

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KATHERINE BARDSWICK

achievement in the insurance space?

President and CEO THE CO-OPERATORS

KB: As a young woman, I didn’t really pay a whole lot of attention to how the industry was receiving women at the time. I was treated fairly and equally in my world. I think the industry, at least in this country, has a number of CEOs who are women. It’s really taken for granted that we’re going to see women in those roles. My sense is it’s becoming a non-issue, at least in this country. … If there are barriers, I suggest that they might be more organization-specific now rather than a systemic issue within the industry.

Kathy Bardswick joined The Co-operators in 1978 and has held progressively senior roles since joining the company. In 2002, she was appointed president and CEO. Under her leadership, the company has prospered, and today is recognized as a leader in the Canadian insurance industry.

IBC: What asset do you feel most helped you get where you are today? Kathy Bardswick: I would say the most important tool is my love of the business. I think the insurance industry is such a noble industry and does such important work globally. My heart is in this industry. I’ve always counselled people to do what they love, and I love this industry. The folks around me all feel similarly about the role that they play in a very important industry.

IBC: Do you feel there are barriers to women’s

IBC: What advice would you give to women looking to make their mark in the insurance business? KB: There are two issues women need to think about. One is whether they’re putting themselves out there as easily as their male counterparts. I think women still tend to hold back from that. The second issue is, I know there are women who, if they want family and children, don’t necessarily have as strong an ability to balance as I have. But I think the chase for the seat is never wise. It’s not the seeking out of the chair, it’s seeking out the impact they can have.

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COVER STORY

WOMEN OF INFLUENCE LINDSAY MATHER

CRYSTAL UNDERHILL

Vice president of human resources ROGERS INSURANCE

New business development/advisor REITH & ASSOCIATES

Why hot: Lindsay Mather has been with Rogers Insurance for five years and is one of the industry’s youngest human resources executives. She has led Rogers to win more HR awards than any other brokerage in Canada. These include recognition as one of the top employers in Alberta and as one of the top 50 SME employers in Canada. In her time at Rogers, Mather has proved adept at meeting HR challenges. Just last year, her team of four hired 103 new people in response to the company’s surge in growth. She also developed a leading onboarding program and, as part of the Rogers management team, is a key player in all the company’s major decisions.

Why hot: A powerful force within

the industry, Crystal Underhill has been the president of the St Thomas and Elgin Insurance Brokers Association for the last three years. Also an excellent producer, Underhill was named the 2015 Young Broker of the Year by the Insurance Brokers Association of Ontario. She has also served as the chair for the St Thomas Relay for Life and on the St Thomas Downtown Development Board.

CINDY BOWDEN President CINDY BOWDEN INSURANCE & BENEFITS Why hot: Cindy Bowden entered the insurance business at 24. A recognized leader in the

industry, Bowden has served on the board of Advocis (the Financial Advisors Association of Canada) and is a past chair of the board of directors of the Institute for Advanced Financial Education. She has also served on boards or committees for the St Michael’s Hospital Foundation; Trinity College at the University of Toronto; and her children’s former school. She’s a recipient of the University of Toronto’s Arbor Award for her volunteer services. Bowden is also a member of the Million Dollar Round Table, the Converence for Advanced Life Underwriting of Canada and the Estate Planning Council of Toronto.

KAREN TRAYNOR Manager of corporate risk TRISURA GUARANTEE Why hot: Karen Traynor joined Trisura a year into its operation and has been integral to the company’s success. After working as an underwriter for a few years, Traynor moved to the head office, where she now helps run the corporate risk operation. Involved in all facets of Trisura’s business, Traynor has been integral in the implementation of the company’s main underwriting system. She also spearheaded Trisura’s transition to a paperless office system; works on the company’s overall reinsurance structure; and liaises with brokers and reinsurers to bring them Trisura’s message.

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DINA GODHINO Partner and account executive JONES DESLAURIERS INSURANCE MANAGEMENT Why hot: Dina Godinho began her career at Jones DesLauriers as an account assistant in 2006 and quickly rose through the ranks. She had a leading role in the development of Jones DesLauriers’s TechAssurance program. An acknowledged industry expert, Godinho has written numerous articles for industry publications. She has been recognized as one of the company’s top young producers for two years running. In 2014 Godhino became the company’s youngest female partner.

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KAREN BARKLEY President MARKEL CANADA Karen Barkley started her insurance career in the claims department at Zurich Insurance in Ottawa, in 1977. She has also held various underwriting and management positions at AIG and CIGNA Insurance Company of Canada. As well, Barkley served as president of ACE INA Insurance. She ventured into the world of equity and ownership of independent wholesale brokerage Specialty Risk Underwriters before returning to the corporate world and taking the reins at Markel.

ironically I ended up in the claims department, working out of an apartment until we opened a branch.

IBC: What are some of the challenges you’ve faced as a woman in a leadership position? KB: One of the big things I’ve seen recently is this: when people were paid less for their positions, there were a lot more training programs. What I find now – and it’s unfortunate – is that people are thrown into roles that they’re not necessarily prepared for. And I would say that’s every industry and every age group. But people need to take a step back and actually get trained for your position.

IBC: How did you first get into the insurance business?

IBC: Any words of advice for women taking leadership roles?

KAREN BARKLEY: I actually worked in radio for a private firm in a really old, run-down house with rats running around and everything. As I would walk home, I’d pass this broker’s office and think, “Boy that’s a nice office.” Way back in the 1970s when jobs were a dime a dozen, I ended up getting an interview and working at Zurich Insurance. It was an odd little thing because I worked in such a run-down place that the insurance office looked so nice. And

KB: The single biggest one that keeps me calm is that if something comes up, you can make a big deal of it – but in reality, nobody’s dying. It’s not life or death. If someone’s angry or hurt, just deal with what they’re angry about. At the end of the say, what it comes down to is, “What’s the problem?” and “Let’s resolve it.” One thing I like about smaller companies is that those resolutions usually come quicker.

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COVER STORY

WOMEN OF INFLUENCE MONIQUE LEROUX Chair, president and CEO DESJARDINS GROUP Why hot: Monique Leroux was a big name in the world of high finance even before joining Desjardins Group. As president, CEO and chair of the board of the company, Leroux is lauded as an inspiration for women looking to break the executive glass ceiling. She’s a member of the Canadian Council of Chief Executives and the Founder’s Council of the Quebec Global 100 network. Leroux holds honorary doctorates from the Université de Montréal; the Université de Sherbrooke; the University of Ottawa; Concordia University; Bishop’s University; and the Université du Québec à Chicoutimi. Among numerous other honours, she has received the Women Corporate Directors Visionary Award; been named a Woman of Outstanding Achievement by the Women’s Y Foundation; been named Quebec’s Financial Person of the Year; and received the Woodrow Wilson Award for contribution to Canadian society from the Canada Institute of the Woodrow Wilson International Center for Scholars.

Open minds. Understand Risk. “Cyber exposures continue to evolve at a fast pace and it is important that we challenge the status quo when assessing risks. At Sovereign, we understand the importance of looking beyond offering coverage for a cyber attack alone. I encourage my team to be empowered, proactive and intentional when partnering with our brokers and insured’s to create structures for both risk mitigation and claims handling. We look at each account individually and keep an open mind to the various classes facing the technology segment. Our aim is to empower our broker partners with knowledge and innovative solutions to enhance their ability to meet client needs now and into the future.” Robin Shufelt AVP, Technology & Cyber Direct 416-673-5077 robin.shufelt@sovgen.com sovereigngeneral.com

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SHARON LUDLOW President AVIVA CANADA Sharon Ludlow took the reins as president of Aviva Canada in June 2014. Before taking over at Aviva, Ludlow headed up Swiss Re’s Canadian operations. Under her leadership, the company achieved a dominant P&C position. She also previously served as the chief financial officer for the commercial P&C operations of Liberty International Underwriters. At Liberty International, Ludlow was instrumental in starting Kanetix, a web-based auto insurance quote service.

IBC: Has the insurance industry evolved in your time in the business? Sharon Ludlow: The world has changed since my career started. Now the flexibility for individuals, the ability to influence decisions at any level of the organization is much more germane in today’s business practice. When I started out, it was the typical triangular hierarchy. You were somewhat limited – or could be limited – by that hierarchy in terms of contributions to decisions or initiatives that would move company forward. In the world today broadly – and at Aviva – we absolutely embrace all ideas and include them all for us to become better in senior management on making decisions on new initiatives and new things.

IBC: So you prefer today’s more open corporate structure? SL: In the early part of my career, the structure of organizations

inhibited that sort of free-thinking and embracing-inclusivethought generation. I wish I had that experience 15 or 20 years ago. Then it was so much more typical and hierarchical – you could only get to meetings or at the table if at a certain level. Barriers have come down, and continue to come down, at all levels and across many, many companies. That’s why we see companies being much more nimble. Even staid insurance companies are becoming much more nimble, and that’s a positive thing.

IBC: Do you feel you’ve faced any obstacles as a woman working her way through the corporate hierarchy? SL: It’s interesting. I’ve been asked this question before. I never thought about it as obstacles, but throughout my career I’ve taken a leap of faith and accepted roles or responsibilities outside of my comfort zone, and clearly have succeeded delivering different results – leading demutualization in the late ’90s; running the appeal process; and starting Kanetix, the first online quotation company, in 1999. Some of these things required a leap of faith on my part, but I never thought of them as obstacles.

IBC: What advice would you give those embarking on a path to leadership in the industry? SL: It’s a continuous learning cycle – taking on something new and seeing that you can deliver on it. Most successful people gained much more knowledge, and became a smarter and broader thinker, after taking on some of these responsibilities. You have to seize opportunities and succeed at them. It defines your overall success over the years.

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COVER STORY

WOMEN OF INFLUENCE HEATHER MCLACHLIN President COWAN INSURANCE GROUP Why hot: President of one of IBC’s

top 10 brokerages for 2015, Heather McLachlin oversees Cowan Insurance Group’s 10 offices and 4,320 employees. McLachlin’s philosophy for success is simple: “We listen to our clients’ needs and provide thought leadership – asking the questions that clients themselves do not know they need to ask, and then suggesting innovative products and services clients can understand and that meet personal and business needs,” she says. McLachlin’s strategy and managerial style are paying off – Cowan has been named one of Canada’s best-managed companies three years in a row.

CAROL GRAHAM Executive vice president and COO SUTTON SPECIAL RISK Why hot: As executive vice president and chief operating officer of Sutton Special Risk, Carol Graham is tasked with securing new sources of distribution and enhancing the marketing capabilities of all the company’s product lines. She began her career with Sutton in the mid-’80s, then held senior management positions in insurance and reinsurance companies – most recently as vice president of affinity markets for ACE INA Life Insurance – before rejoining Sutton. Graham has served on both the Alternate Distribution Committee and the Creditors’ Group Insurance Committee of the Canadian Life and Health Insurance Association.

www.insurancebusiness.ca

DONNA INCE Senior vp personal insurance RSA CANADA Why hot: Donna Ince has been with RSA Canada for more than 20 years, moving through various progressively senior roles. Currently, she’s playing a critical role in managing RSA Canada’s transformation. The reshaping is centered on building an agile, innovative business and culture. Ince has become influential in her field by focusing on listening carefully to the needs of her customers and her team, and surrounding herself with experts to deliver exceptional propositions. Ince is also dedicated to mentoring and supporting the development of other women at RSA.

LYNN KELLY WENDY WILDEMAN Senior account executive ROGERS INSURANCE Why hot: With 2014 revenue of $2.8

million, Wendy Wildeman was one of IBC’s top five Elite Brokers this year. Wildeman’s top-selling products are programs designed specifically for condominiums and strata property management, and she clearly knows how to sell those products’ advantages to her clients. “One needs to get to know and understand the needs of the client,” Wildeman says. “Then combine technical skills to design and market an insurance program at competitive pricing to best fit the client – now and in the future.”

President CAIW Why hot: Lynn Kelly serves as

president of the Canadian Association of Insurance Women (CAIW). In that capacity, she leads the CAIW as it focuses on education, networking and professional development for women in the insurance industry. Kelly began her insurance career in 1980 as an independent adjuster. With her current employer, Crawford & Company, Kelly focuses on liability and malpractice claim investigation. In addition to her service with CAIW, Kelly has been a member of the Insurance Professionals of Calgary since 1997.

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KAREN MCGEE Karen McGee became vice president at Plus Underwriting Managers, a full-service managing general agent, in 2011. Prior to that, she served as the program and underwriting manager at Shaw Sabey & Associates and as an account executive at Hub International. McGee is also a past president of the Canadian Security Association (CANASA), a nonprofit dedicated to advancing the security industry.

KM: Education is going to be really key – ensuring that you have the right basic knowledge. But grabbing hold of every opportunity and experience you can for growth is also vital. If you can find a mentor who’s going to keep you engaged and give you solid career advice, that’s one of the bigger tools that can help anybody achieve success. … I think that like any industry, women in business are able to achieve whatever they set themselves to accomplish. I think there’s plenty of opportunity to succeed for women, and in the years to come there will be even more opportunity.

IBC: Do you feel that you’ve faced any obstacles as a woman in the insurance business?

IBC: And what are the most important qualities to be a good leader?

Karen McGee: For myself, I don’t think so. I’ve been very fortunate throughout my career. I’ve had mentors and people who identified talents I wasn’t even aware of. They tapped into that and encouraged my growth and training to get where I am today. … I have seen a significant transition from what used to be called the old boys club to much more open-mindedness – among companies and on the brokerage side – to women in leadership positions. Regardless of gender, having the right leadership skills is paramount.

KM: Patience and a willingness to grow. What I mean by that is, knowledge is great, and education is really important, but to be a good leader, you have to be able to diversify, see the bigger picture. Knowing the social sciences and understanding the generation coming up behind you – all those pieces are very key – over and above understanding insurance and business. From the very beginning I was exposed to so many aspects of the insurance industry. If I were to advise someone going into it today, I’d suggest the same thing to them. Don’t narrow yourself to one aspect of insurance. Get as much experience and as much exposure as you’re able to, because it’s just going to enhance your skill level throughout your career.

Vice president PLUS UNDERWRITING MANAGERS

IBC: What advice would you give to women just starting out in the industry?

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FEATURES

COVER STORY: ELITE WOMEN LANA KENNY

INDEX BY COMPANY

Account executive officer TRAVELERS CANADA

NAME

PAGE COMPANY

Lynn Oldfield

AIG Canada

Christine Lithgow

Aon Reed Stenhouse

Sharon Ludlow

Aviva Canada

Gillian Van Kempen

Best Buy Insurance Brokers

Tracy Makris

Bryson & Associates

Lynn Kelly

CAIW

Ellen Moore

Chubb

Cindy Bowden

Cindy Bowden Insurance & Benefits

Heather McLachlin

Cowan Insurance Group

Monique Leroux

Desjardins Group

Catherine Cake

Drayden Insurance

Karen Gavan

Economical

Judy Gougeon

Gougeon Insurance Brokers

Susan Ewart

HAL Insurance

Eileen Greene

HUB International HKMB Limited

Dina Godhino

Jones DesLauriers Insurance Management

Marsha Jones Dooley

Jones-Dooley Insurance Brokers

Robyn Young

Lundgren & Young Insurance

Karen Barkley

Markel

Wendy Watson

ORBiT

Tammie Norn

ProFormance Group Insurance Solutions

Crystal Underhill

Reith & Associates

Lindsay Mather

Rogers Insurance

Wendy Wildeman

Rogers Insurance

Shari Douglas

RSA Canada

Donna Ince

RSA Canada

Colette Taylor

RSA Canada

Carol Graham

Sutton Special Risk

Kathy Bardswick

The Co-operators

Sephora Sciara

TIWA

Lana Kenny

Travelers Canada

Sandra Henkel

Trisura Guarantee

Karen Traynor

Trisura Guarantee

Marilyn vanGansewinkel

Trisura Guarantee

Karen McGee

Vertical Insurance Group

Why hot: Over the past 29

years Lana has worked in personal and commercial lines, and is an account executive officer in the Select Business Insurance Department for Atlantic Canada at Travelers Canada. Kenny is a passionate insurance professional; a determined volunteer; a devoted advocate for women; and a committed member of the Nova Scotia Insurance Women’s Association and the Canadian Association of Insurance Women. She was also named the Canadian Association of Insurance Women’s 2015 Insurance Woman of the Year. Lana’s own personal family tragedy motivated her to be an advocate for eliminating violence again women. In December 2005 Kenny’s sister, Paula Gallant, a 36-year-old mother and grade three teacher, was murdered in a domestic-violence incident. Inspired by her sister’s life and legacy, Kenny and her other sister, Lynn, have worked to provide a voice for the many women and victims who may not have – or no longer have – the opportunity to have a voice. They have worked with politicians, the public and the media to create awareness of the rights and needs of victims, and bring justice for Kenny’s sister Paula. Kenny was recognized in the Nova Scotia legislature and received a Democracy 250 Award for her efforts in creating awareness about violence against women. Lana is also a full-time mom. She and her husband are raising Paula’s daughter along with their own two children in Hammonds Plains, NS.

COLETTE TAYLOR Vice president of global specialty lines RSA CANADA Why hot: Before moving into her role as vice president of

global speciality lines, Colette Taylor served as the global specialty lines underwriting director for the Ontario region. Prior to joining RSA Canada in 2010, Taylor held positions at companies such as Jones DesLauriers Insurance Management, St Paul/ Travelers, QBE Insurance and Marsh. One of the few female executives in the GSL space, Taylor’s experience as a broker gives her a fresh perspective. “She has become an outstanding leader in her field by creating a collaborative and inclusive approach to developing and delivering propositions that work for brokers and their customers,” says RSA communications consultant Merissa King.

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SPECIAL PROMOTIONAL FEATURE

COMMERCIAL GENERAL LIABILITY

CGL: THE UNDENIABLE INSURANCE MVP Protecting clients from harm losses is crucial for brokers – this coverage may provide one of the best ways to do that WHEN BUSINESSES determine which insurance products they need most, commercial general liability (CGL) almost always tops the list. And almost every commercial client in Canada requires CGL protection, particularly in today’s contentious business climate. “With all the litigation in Canada and the United States, this coverage has become increasingly in demand,” says Eric Scott, CGL underwriter at Markel Canada. “Increased claim costs, class action lawsuits and a generally more litigious environment highlight the need for general liability coverage, whether for a manufacturer, wholesaler, real estate, contractor or any other class of business.” It’s widely acknowledged CGL coverage is no longer optional, but should be viewed as a corporate mandate. Markel Canada prides itself on being flexible enough to meet the needs of an array of businesses, which Scott attributes to the organization’s broad appetite. While target classes include sports and leisure, security risks and camps and daycares, the company can be called upon to help with almost any client.

“We’re generally willing to quote on most classes of business, as long as we have no relevant treaty exclusions,” Scott says. “While we do have our focus target industries, there isn’t much we’ll decline simply due to class of business. Markel is an underwriting company, and each risk is evaluated based on its individual merits.”

Defence, the best offense Almost every major business-risk index acknowledges the threats facing North American businesses are bigger and more complex than ever, largely due to such forces as globalization, expedited supply chains, “lean and just-in-time” manufacturing processes, increased regulatory standards and digitization. For this reason, it’s easy for brokers to demonstrate the need for CGL coverage – and the opportunities to do so are only growing. “In the past few years, global risks have become the new norm in many industries,” Scott says. “Whereas in the past, companies may have only required a standard CGL policy that merely covered domestic risks; broadened coverage territory and the ability to cover foreign exposure has become

TARGET CLASSES FOR CGL COVERAGE Markel Canada has a broad appetite for CGL business, and will work with just about any client to develop comprehensive, customized coverage. Some of its target industries include: sports and leisure – amateur sports teams, athletic facilities, fitness clubs, etc. security risks – guards, investigation, sprinkler installers etc. camps and daycares, which can be supplemented with abuse protection machine shops, bicycle vendors and sporting-goods stores blasting, demolition, tunnelling and construction manufacturing, realty, business and personal services increasingly important.” Moreover, this ability not only provides a fundamental base in and of itself, but it’s also enhanced by the fact Markel Canada

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BENEFITS OF MARKEL CANADA’S CGL INSURANCE $10-million primary capacity, with access to excess limits worldwide territory abuse coverage up to $2-million limit optional environmental liability coverage Enhancements – defense costs in addition to limits Competitive commission levels

“When we retain our business and keep our insureds happy – those are our successes” is continuously fine-tuning its offerings to address new and emerging risks. “We have the ability to be creative as an underwriting team and respond to changes in risks as they happen,” Scott says. “This is very much appreciated by our insureds, as well as our broking partners.”

Prevention is paramount This may come as no surprise to most entrepreneurs: According to the U.S. Chamber of Commerce, 33% of smallbusiness owners have either been sued or threatened with a suit. Two-thirds of those owners were forced to pass their legal costs on to consumers, halt employee benefits or postpone new hiring. Nobody wants to see organizations suffer at the hands of litigation. Brokers can highlight these risks with commercial clients, thereby demonstrating the escalating need for CGL coverage. “All these stories making headlines where insurance is involved makes

businesses think about what coverage they have and consider contacting a broker to double check that they’re covered properly,” Scott says. Brokers can also use this information to educate policyholders on the value CGL coverage brings to a company’s future stability and strength. “Whether it’s the news or brokers’ own experience with other clients in the same industry, this is a good way to get an insured to purchase a CGL policy,” Scott says. “It helps them understand the benefits of being covered with an adequate limit so they can have the peace of mind and some comfort in either growing their company or conducting day-to-day business.”

No trade-offs: how it’s possible Although most CGL providers usually force a broker to decide between quality and speed, Markel Canada fulfills its mandate in “making it easy for brokers to place business with us” by guaranteeing both.

“Service is key,” says Scott. “We do our best to provide quick quotes and underwriters have ample authority to get the job done.” Brokers have acknowledged these competitive advantages, and express appreciation for the range of conveniences they’re offered. “The feedback we’re given is that Markel is a market willing to look at the tough stuff, but also provide quick service. Those two things don’t usually go hand in hand,” Scott says. This will only be enhanced when general liability becomes accessible on Markel’s newly launched online portal, which allows for instant quote and instantly bind, all at 25% commission. In addition, Markel Canada’s coverage remains flexible, and adapts to new threats that may emerge against Canadian businesses. Moreover, clients can alter their policies during a mid-term period if they want to sign a new contract or require additional endorsements. This ability to evolve with the insured fosters loyalty and helps to encourage a multi-year commitment to Markel Canada. It’s a day-to-day thing, and the little wins here and there are our main success,” Scott says. “Even renewals – we don’t take renewal retention for granted. When we retain our business and keep our insureds happy – those are our successes.”

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PEOPLE

PRODUCER PROFILE

STARTED FROM THE BOTTOM Not every call-centre employee becomes a company VP. But a lot of hard work and dedication sent Kumar Sivakumaran straight to the top IT WASN’T a passion for insurance that drew Kumar Sivakumaran to the industry – it was a need for more beer money. Sivakumaran was looking for a part-time job to supplement the few hours a week he worked as a student lead for McMaster University’s technology department. His friends suggested he join them at a Cunningham Lindsay call centre in Hamilton. “It was something I could do on the weekend, so I could have cash-flow to party,” he says, laughing at his younger self. “That’s where I got my feet wet.” Sivakumaran studied mathematics and statistics, and economics at McMaster. He planned to find a programming job with Research in Motion (now BlackBerry) or IBM Canada. When he graduated, Sivakumaran asked his call-centre manager for a reference to round out his application. “They said, ‘why don’t you stick around, give us a shot, maybe you’ll like claims,’” Sivakumaran says. “I was really fresh and young at that point and they let me go on the road to take claims.” Sivakumaran was soon training for his new job as a claims adjuster. He enjoyed that it took him out from behind a desk – and across the globe. He lived in Australia for a month and a half, working the catastrophic losses division, before moving to New Jersey to take claims related to Hurricane Sandy. “With Hurricane Sandy, I was climbing on the roofs,

taking photographs, writing sheets and meeting with insureds,” Sivakumaran says. “I was on the ground.” But those trips did more than expose Sivakumaran to massive loss claims. From both Australia and New Jersey, he returned with the best technologies and processes to incorporate in the Canadian office. “It really gave me the platform of looking at their technology and how they do things,” he says. “Instead of looking into my own little box, it broadened my experience.” When he returned from New Jersey, Sivakumaran found himself at a crossroads – he enjoyed being away from an office setting, but was getting bored with his work as an adjuster. “When I came back, I couldn’t figure out what I wanted to be,” he says. “You want to put your feet on both sides, but you need to create a niche for yourself.” Sivakumaran became a business analyst for the company, again became bored behind a desk and returned to adjusting once more. But in all his travels and all his experience, Sivakumaran realized one thing: technology and infrastructure would be integral to the future of the business. “I’ve realized … that’s how I can add more value and take the organization to the next level in terms of guiding that program and that vision,” Sivakumaran says. “I felt that’s where my strength will be added.” It so happened the company was looking for someone

“It really gave me the platform of looking at their technology and how they do things. Instead of looking into my own little box, it broadened my experience”

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WORKING AROUND THE CLOCK Even when he’s away from the office, Kumar Sivakumaran has business on his mind. “Most of my buddies are in tech, so it gives me a chance to sit with them and talk about technology and come up with ideas,” he says. “I’m always looking for ways to take the technology and apply it to the business.” Of course, Sivakumaran also enjoys playing sports, including soccer, football and baseball, and travelling with his wife of three years, Mary. He and Mary also have a three-month-old at home, named Jesi, and a two-year-old toddler named Koby. “They’re keeping us busy,” Sivakumaran laughs, “so we don’t get much free time.”

tech-savvy to lead its business intelligence unit. News of Sivakumaran’s help setting up laptops and a network while in Australia had made its way to Cunningham Lindsay’s CEO, and Sivakumaran was offered the job. “I started designing the infrastructure and key measurements and how to define the matrix we wanted to measure – I built the reporting platform from scratch,” he says. “So some of the management platform we’re using right now, I was integral in building that.” Sivakumaran immediately recognized technology will play an important role in the industry. He’s dedicated to ensuring the technology Cunningham Lindsay uses can best serve the needs of all its employees – from call-centre workers, to adjusters, to business analysts. Naturally, Sivakumaran is the best person to develop programs for these roles, because he’s filled every single one of them. Now, as vice president of business excellence, Sivakumaran works to ensure every division has the tools for operating at its best. “One of my daily tasks is looking at, how can we do better than anybody?” Sivakumaran says. “Technology is going to align very well with insurance in terms of what the needs are. For example, the next step from the claims side is how much more can you do from the desk?” But Sivakumaran hardly fell into his current position. He credits a lot of hard work for his meteoric rise from call-centre employee to the youngest vice president in Cunningham Lindsay’s history. “It’s a privilege,” he says. “It’s given me the motivation to do even better.”

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SPECIAL PROMOTIONAL FEATURE

RSA

BREAKING IT DOWN BUSINESSES THRIVE by delivering products and services to customers on time. An interruption of this flow is often caused by the breakdown of vital equipment or machinery that keeps production moving. Equipment Breakdown Insurance (EBI) is experiencing

significant growth and is one of the broadest commercial offerings spanning a wide variety of industries. It’s a necessity for virtually any company needing functioning equipment and utility services for business to operate and remain profitable.

A GROWING OPPORTUNITY EBI is a necessary coverage and presents an opportunity to increase coverages across all lines of business, and to cover a bigger portion of a client’s risk portfolio. There are growth opportunities for brokers in this line of business. When talking to clients, brokers can:

EXPLAIN THE NEED FOR EBI COVERAGE CLEAR UP COMMON MISCONCEPTIONS PROVIDE EXPERT ADVICE ON ASSET MANAGEMENT

WHAT IS EBI? EBI insures against financial loss. It includes property damage, business interruption and spoilage losses that result from accidental breakdown of pressure vessels, and mechanical or electrical equipment. An equipment breakdown policy responds to “accidents to objects.”

ACCIDENTS: IT’S IMPORTANT TO UNDERSTAND WHAT “ACCIDENTS” ARE IN EBI. AN ACCIDENT HAS THREE COMPONENTS:

OBJECTS: “Objects” are described in a number of different ways: Any boiler, any fired or unfired vessel subject to vacuum or internal pressure. Any mechanical machine, electrical machine or electrical apparatus used for the generation, transmission or utilization of mechanical or electrical power. Any electronic equipment used primarily to control, monitor, or operate one or more objects. Production machines specific to your client’s business such as injection moulding machines, printing presses, ice-making machinery, processing equipment, milling or grinding equipment.

sudden and accidental

causes physical damage

OBJECTS ARE NOT: refractory or insulating material sewer piping, sprinkler piping, domestic water piping elevator, escalator, conveyor, crane or hoist (not excluding electrical equipment attached to the equipment)

requires repair or replace The insurer is then liable for the cost of repairing or replacing (whichever is the lesser), with the like kind, capacity, size and quality

any vehicle, mobile equipment, trailing cable well casings, penstocks, draft tube Varies by individual policy

Source: Floodinsurance.ca

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WORK STOPPAGE Equipment breakdown often leads to lost production time. There are serious ramifications of work stoppage.

HISTORY LESSON: BOILER & MACHINERY Dates back to the Industrial Revolution when steam engines became an integral part of industry.

Financial

Equipment breakdown can lead to cost overruns, potential contractual cost ramifications for lost production days and costly repairs or equipment replacement.

Reputational

A company’s reputation is one of its most important assets. Equipment breakdown could cause partners to lose confidence, or issues during future bids.

Increases in pressure and/or temperature caused boilers (steam engines) to catastrophically fail.

EBI provides protection against the physical and financial loss resulting from equipment breakdown.

In 1865, a boiler explosion on the steamboat “Sultana” killed 1,800 people, causing the American government to regulate pressure vessels and mandate inspections.

COMMON MISCONCEPTIONS

Insurance policies became available for the accidental explosion of boilers, but only in conjunction with inspections.

One thing that may be holding back both clients and brokers from exploring EBI are some common misconceptions.

I DON’T HAVE A BOILER SO I DON’T NEED BOILER & MACHINERY INSURANCE This is not the case. Other manufacturing equipment requiring EBI includes pressurized, mechanical, electrical and/or electronic equipment.

I DON’T MANUFACTURE ANYTHING SO I DON’T NEED MECHANICAL BREAKDOWN INSURANCE

Insurance coverage expanded to include machinery used with boilers – hence the name Boiler and Machinery Insurance (BMI). As coverage has evolved and broadened, so has the name of insurance. BMI is now referred to as Machinery Insurance or Equipment Breakdown Insurance (EBI).

Any business requiring functioning equipment needs to be properly protected.

THE EQUIPMENT MANUFACTURER’S WARRANTY WILL COVER ANYTHING THAT GOES WRONG Often, warranty won’t cover all issues following equipment breakdown. EBI can fill the gaps. EBI is designed to reduce the gaps in a property policy and, through periodic inspection, further reduce the chance of boiler and other manufacturing equipment malfunctions.

ASSET MANAGEMENT PROPER ASSET MANAGEMENT AND PREVENTATIVE MAINTENANCE IS AN IMPORTANT ASPECT OF A COMPANY’S RISKMITIGATION STRATEGY.

UNDERWRITING AND RISK-CONTROL SERVICES SHOULD BE COLLABORATIVE FOR ASSESSING RISK, RESOLVING CLAIMS AND PROVIDING LOSS-PREVENTION RECOMMENDATIONS.

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BUSINESS STRATEGY

CORPORATE WELLNESS

HEALTHY BODY PLUS HEALTHY MIND EQUALS HEALTHY CAREER Our bodies are finely tuned machines, yet we tend to drive them into the ground, ignore warning signs, and generally treat them poorly. What if HR could tap into a whole workforce of finely tuned, healthy and active employees? Christopher Paterson reports IN TRUTH, most of us don’t fully understand the intricate design of our brain and bodies. As a result, we’re operating at a fraction of our full capacity. Further, what you may not realize is how this may be holding you back in terms of your career and life success. Multiply this across an entire organization, and the gap between current and potential performance widens exponentially. Neurological, biological and psychological data shows we’ve prioritized our workloads and our success far above our mental and

physical wellness. As a result, we’ve become disconnected with the fundamentals of how the human body functions. This is having an impact on our ability to solve complex problems, come up with new ideas and push the boundaries for our capability. Not surprisingly, it’s also inflating our stress and anxiety levels. While we all have access to a very impressive machine in the form of the human brain and body, it’s extremely fine-tuned. What happens to a finely tuned machine

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when we put it under sustained pressure? Performance suffers and it breaks down. You’ll see these breakdown signs among your friends and family; your colleagues and staff; and within yourself. While we see the signs, we don’t know a different way. So we keep doing the same things. We do our best and hope things will improve. However, taking time to understand the fundamentals of how we’re designed has now become a critical sustainability issue. Changing the way you do things – and working with, rather than against – your body will ultimately let you be at your best both in and out of the office.

Career outcomes Our review of the published research shows individuals who work with this knowledge experience lower stress levels, greater mental alertness, more energy, higher self-esteem, better memory, greater work fulfilment,

TOP TIPS FOR BUSINESS 99 identify “wellness champions” in senior roles 99 promote positive wellness behaviours with targeted, evidence-based workshops 99 track wellness factors throughout the year to assess risks and celebrate success 99 train team leaders to promote and facilitate wellness across their teams 99 have an integrated corporate wellness plan and measure its effectiveness 99 have fun with it! performance to the point that’s our sweet spot of optimal performance. However, when additional pressure is applied, this creates stress – and our performance decreases. Therefore, our first task is identifying the triggers creating this additional pressure. Our next task having specific strategies on hand to manage them effectively.

Neurological, biological and psychological data shows we’ve prioritized our workloads and our success far above our mental and physical wellness less workload pressure and greater concentration. Not surprisingly, this facilitates improved job output, increased creativity and greater overall career success. On an organizational level, imagine a whole workforce of these individuals! This is organizational performance and capability redefined – and it adds a unique dimension to a company’s market differentiation.

Performance and arousal The Yerkes-Dodson law shows the correlation between “performance” and “arousal,” but we try not to use the latter word too much in the workplace. So let’s call this “pressure” instead. This research proves a certain amount of pressure enhances

It’s not always possible to remove these triggers. But with a better understanding of our neurological and biological toolkit, we can get back to our sweet spot of optimal performance.

Wellness toolkit The good news is, the research also highlights the mistakes we’re making and identifies the specific things we can do to be at our best. This data points to three key elements of wellness that all play a role in our work and life success: Cognitive wellness – our brain at work Understanding our brain functionality, particularly the prefrontal cortex (PFC),

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2015-12-04 10:54:11 AM

BUSINESS STRATEGY

CORPORATE WELLNESS TOP 10 TIPS FOR INDIVIDUALS 99 get a complete body diagnostic from an integrative doctor to understand your nutritional needs 99 get moving every 45 minutes 99 connect with positive people face-to-face 99 book a mini break away 99 remove smart technology from the bedroom and replace it with a good alarm clock (no snooze) 99 wake up at the same time each morning and get your body to some natural light 99 find that hobby that allows you to unplug and unwind 99 share your plan with someone 99 The more stressed you are, the MORE you do these things, not less 99 set a reminder to review your plan once a week for six weeks allows us to unlock the full potential of our cognition. Unfortunately, we currently tire our brains out with low-level tasks. We’re left wanting when we need to switch into higher-order analysis or creativity. In addition, the multitasking way we attempt to work creates unnecessary pressure for the poor old PFC. We fail to produce our best thinking. Emotional wellness – our limbic system at work While still in the brain, our limbic system is the centre of all our emotional responses, even mild ones. So every time we’re a little bit worried, stressed or feeling under pressure, this powerful system gets quickly activated. It absorbs all the cognitive energy, decreasing the quality of our thinking and pushing us beyond our sweet spots.

Six cylinders of wellness In a 2009 review of our careertransition clients, we observed there were two types of people being coached through career change. While both had equivalent

levels of intelligence, experience and capability, Group A would navigate change with confidence, resilience and focus. Group B struggled to adapt; took a lot longer to bounce back from setbacks; and experienced higher levels of stress and anxiety. A closer investigation of the factors at play, cross checked with the research, revealed the Group A people were simply making better decisions in six key areas of their lives. We call them the six cylinders of wellness and they are: nutrition, social connections, activity, time out, sleep and outlets. We tested a workshop program that educated staff on three of these wellness elements, including the six cylinders. This enabled them to identify the areas requiring attention and the specific, practical actions they could take to facilitate a stronger wellness profile. We found that by making small adjustments, staff were able to reduce their stress levels by 8% and their workload pressure by 16%. Meanwhile, they increased their focus and concentration by 5%.

Business case In HR, we support staff because it’s the right thing to do. In an environment where workplace stress and anxiety are on the

SIX CYLINDER STATISTICS

65% – the drop in fatigue by those who do 20 minutes of low-intensity activity a day 0.1% – the blood alcohol level equivalent resulting from fatigue in Australian workplaces causing accidents 50% – the drop in heart attack risk for those who regularly take holidays 30 – the number of chews required to get the maximum nutrients out of each bite 15% – the increase in your happiness probability as a result of having happy friends 95% of people use brain-activating ‘blue screen’ emitting technology within one hour of bed 7 years – the reduction in life expectancy from sitting for more than six hours per day

rise, a focus on wellness is a core element. Alongside the humanistic argument, the data shows a well organization will be more productive and creative. Its staff will be less stressed and more mentally alert, energetic, fulfilled, focused and successful. In Australia, for example, a 2014 study

Unfortunately, we currently tire our brains out with lowlevel tasks. We’re left wanting when we need to switch into higher-order analysis or creativity by PwC and the Australian National Health Commission, showed mental health conditions cost businesses $11 billion. But the return on investment for promoting a mentally healthy workplace was $2.30 for every dollar invested.

Take action On a personal level you’ll be more successful if you manage your own wellness. On an organizational level, your business will be more successful if you can facilitate enhanced wellness profiles for your staff. The pressures currently holding you and your staff back aren’t likely to go away, so inaction isn’t an option.

Christopher Paterson is the managing director of ALCHEMY Career Management based in Sydney, Australia. ALCHEMY supports individuals transitioning their careers and helps companies adapt to organizational change.

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2015-12-04 10:54:22 AM

CA co

We are Markel. Commercial general liability Directors and officers liability Environmental impairment liability Professional liability Property and inland marine Security and protection industry Umbrella and excess liability

Helping brokers with effective insurance solutions since 1966 Calgary Montreal Toronto Vancouver www.markelinternational.ca

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28/09/2015 14:31 4/12/2015 6:09:17 AM

BUSINESS STRATEGY

WORKING SMARTER

HOURLY RATE IDENTITY CRISIS If you’re a sole operator or business owner who’s working every hour available to you but still have your back up against the wall, this excerpt from the book From Deadwood to Diamonds by Stefan Kazakis is for you HAVE YOU thought about the investment you’re putting in to your business? Are you working for nothing? Or are you satisfied with the return on your personal exertion investment? I find that about 75% of small-business owners have a disconnect here. The issue of maximizing the return on each hour you work can be a tricky one, and it can be another thing holding you back. I call this the Hourly Rate Identity Crisis. Q. How much do you charge out for your time an hour? Q. How many hours on average do you work a week? Q. How much did you pay yourself last month? Q. Is there a disconnect? To see whether you’ve hit this crisis, answer the questions below: Chances are you’ve worked out what an hour of your time is worth, based on your skills and experience, and the industry you’re in. This isn’t where the problem usually lies. The issue is, how many hours a week do you actually earn that rate? Time is a finite resource so it’s crucial that you put it to good use. If you have an identity crisis here it can spell trouble. What activities should you be doing to give your business the best outcomes for each hour you work? Be clear about who you are, what you do and why. Think about your #1 Big Outcome. The best opportunity for your business is building one reputation for doing one thing, then add to it. Ask yourself, what’s

my one thing? What am I actually worth an hour? Why? What are the activities I do daily, weekly and monthly that help me ensure I achieve that rate? The next question is, how many hours a week do you work on average? Now you can calculate the following equation: what you’re worth per hour × how many hours you work on average per week.

Consider the answer carefully. Now, here’s the kicker: When was the last time you took home a weekly pay cheque close to that amount? Sadly, for some business owners the answer is never. If this is you, this is a huge wasted opportunity for your business. So if you’re not taking home close to that amount each week, or even some weeks, or

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even occasionally, what’s the problem? If you’re not skipping off and going to the beach, then clearly you’re spending time at the office doing tasks you shouldn’t be doing. Yes that’s right, ones you shouldn’t be doing! I’m not saying those tasks don’t need to be done, just that they don’t need to be done by you. What about if you are achieving this every week? Does that mean everything’s peachy? Not at all. If you’re reaching this target every week your hourly rate is too low! Nobody can work at their maximum achievable hourly rate every single hour for a whole week – let alone week after week. So if you think you’re doing this you need to increase your hourly rate. There’s clearly room for you to do so and you’re currently missing out on this opportunity.

Focusing on your strengths Once you start asking some brutal-truth questions and facing up to reality, you’ll realize that a lot of time you spend in your business is wasted opportunity. Too many small-business owners spend time on things that earn a low hourly rate for their skill sets. It’s a very common problem. Many entrepreneurs start out alone with little cash. So they get into the habit of doing everything themselves and trying to cut costs while they do so. This can be okay – and is often necessary – in the very early days of getting the business off the ground. But once you’re past that stage, having a Lone Ranger complex will be a massive hindrance to the growth of your business

Delegation is a wonderful thing Have a look at what you’re doing each day. For each activity you do that’s not at your maximum hourly rate, you have four options.

Delegating: You need a great team around you. Not good, great. And what’s the point of a great team if you don’t delegate to them? Outsourcing: You can outsource just about anything these days without too much expense and you can trust the job will be done right. Some small-business owners see this as a cost they can’t afford, but your maximum

hourly rate will be more than the hourly rate you pay for outsourcing. You’ll come out in front and you can be spending your time more productively.

Terminating: Sometimes you’ll find a task can simply be done away with altogether. Plenty of businesses have old habits and systems they could get rid of but nobody has stopped to look at them closely. Or maybe there’s something you do five times a week that really only needs your attention twice a week.

yourself, right? Wrong! The tasks for which you earn your highest hourly rate are best done by you, but let me tell you something: for most other tasks in your business there are people out there who are better at it than you – and that’s fantastic! Chances are, you’re not an expert bookkeeper; or warehouse manager; or marketing manager; or customer liaison. But too many smallbusiness owners try to wear too many hats and don’t perform any of these tasks as well as they could be done. You need to trust your staff and service providers. You don’t need

You need a great team around you. Not good, great. And what’s the point of a great team if you don’t delegate to them? Systematizing/automating: Can you set up processes that reduce or eliminate time spent on a task? For example, can you set up your website so orders go direct to your suppliers and you don’t have to send products out? Delegating and outsourcing are essential to the growth of your business but these are two areas people often struggle with. Let’s have a look at some common challenges to outsourcing and delegating.

I don’t know what I don’t know

Trust

Sometimes we just become so caught up in the day-to-day craziness that we don’t even stop to consider other options. Make the time to stop, look and listen; find out what the issues are in your business and how you can address them. You can’t solve a problem that you don’t know about.

This is a common problem for entrepreneurs. They’re so used to being experts in their fields and doing everything themselves, they’re reluctant to hand responsibility to others. If you want something done properly you have to do it

to be afraid of outsourcing to Bangladesh or maybe even Russia.

Too busy

We can’t afford it

As a business coach this response drives me nuts! The reason you think you’re too busy today is that you didn’t stop and make changes yesterday. You must make the time to improve things today; that’s the only way you’ll be less busy tomorrow. Got it? Putting things in a format other people can follow can be challenging. That’s because small-business owners get used to doing everything themselves. They often develop their own unique methods and this becomes an impediment to delegation. But this is an easy problem to overcome – you just need to spend some time developing processes you can easily pass on. It may take a bit of extra effort now but I guarantee it’ll save you time in the long run.

Let me dismiss this one for you here and now – if you want to grow your business you can’t afford not to delegate and outsource. Even if you’re outstanding at what you do, if you don’t let go of managing

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BUSINESS STRATEGY

WORKING SMARTER

the day-to-day issues in your business you’re putting a ceiling on how much you can grow. And that ceiling is how many hours you can work in a week. If you think you can’t afford it, can you afford not to? If you’re this close to the edge something has to change. If any of these are holding you back

It can’t be more than this or you’ll just start getting bogged down again. Most of my clients have about five activities they’re really good at within their skill sets and that are their highest hourly rate activities. For most small-business owners these activities will be related to the skills that got them into the

Your goal is to spend 80% of your time on your highest-rate activities. You won’t get to 100%. As the key decision-maker you will always spend some time on mundane decisions you have to address them – now. You need clarity about where your best work is done and what’s getting in the way of growth. It might be you. The sooner you do this, the faster you’ll build a business giving you the outcomes you deserve.

How to best spend your time? To work out what you should be doing with your time, just figure out the three to five activities that are your strengths.

business in the first place. If you’re a graphic designer you didn’t go into business to spend time doing the accounts, chasing new clients or firefighting problems as they arise. There are other people who’ll be better at these things than you so let them do it. Then you can spend your time doing what you do best. Even if you’re on your own, you can still find somebody to help keep you accountable. I’ve been getting coached for 22 years. I still get coached today. I still write a cheque for

somebody to help me improve my business. Once you’ve identified these activities, answer this question: how much of your time each week as a percentage is invested in these specific tasks? The difference between how much time you could be spending on these tasks and how much you are spending on these tasks is your gap to creating a business that at some point will give you freedom of time and money. Your long-term goal is to spend 80% of your time on your highest-rate activities. No matter how well you do you won’t get to 100%. As the leader and key decision-maker in your business you’ll always be required to spend some time on more mundane decisions and tasks. The most successful business people I know are at 80% and that’s great. Even if you’re on your own this is achievable. There are all sorts of excellent outsourcing services catering to small businesses. Trust yourself to find the right people and guide them well. Then trust them to do the job for you. Give them good systems, wind them up and let them go. The world has become a smaller village and the days of dodgy overseas outsourcing are long gone. Once you start addressing these harsh truths about how you’re spending your time and you start walking the walk, you’ll quickly learn you shouldn’t be making the coffee, going to the post office and chasing unpaid bills. It’s about having a strategic mindset. How will your next hour best be used to grow your business? You have to hold yourself accountable, and this can be tough. That’s because it can mean facing the fact that you haven’t been working as well as you could have been. I see it all the time: people think the solution to a struggling business is working harder, but it’s not. It’s working better.

Stefan Kazakis is a business strategist, sought-after presenter and speaker and author of the new book, From Deadwood to Diamonds (Major Street Publishing; $39.13 on Amazon.ca). He is a futurist and an inspiring communicator with the voice of experience. For more information please visit www.stefankazakis.com or e-mail info@stefankazakis.com

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PEOPLE

CAREER PATH

TACKLE ANY CHALLENGE Whether he’s running for council, opening a brokerage, or fighting (and beating!) the Big C, Tim Withey is ready for anything

Around the time he opened his brokerage, 2014 Withey was diagnosed with prostate BEATS CANCER cancer – a surreal experience, he says. But Withey is a fighter and a survivor. “I’ll be two years cancer-free in January 2016.”

Despite all his hard work, Withey felt one thing was missing from his business: equity. On May 1, Withey opened his own brokerage. Starting from zero was stressful, but he was determined to succeed. “The opportunity arose, I got some market support, so I took the plunge.”

2013

OPENS WITHEY INSURANCE BROKERS Withey had always been involved in the community, sitting on different boards in the health care realm. His father had instilled in Withey the importance of public service. He made an unsuccessful run for the Huntsville mayor’s office. “In hindsight, I’m happy ... If you get too many balls in the air there’s a chance you’ll drop one.”

2010

WINS A SEAT ON TOWN COUNCIL

1988

MOVES TO HUNTSVILLE, ONT. After a few years at William E Jarvis, Withey realized city life wasn’t for him. He moved to Huntsville, the largest town in Muskoka Region. He found work with Hutcheson, Reynolds & Caswell Insurance Brokers. “I thought, with new technology, I could live where I want and do what I do.” To complement his environmental studies degree, Withey worked full-time at Algonquin Provincial Park as a student. It made sense – his family had a family lease in Algonquin; Withey had spent much of his childhood outdoors. “I was taking environmental studies before it was sexy – back in the 1980s. I just had a general interest in it.”

1995

GETS HIS FIRST FRANCHISE CLIENT Withey spent five years with Hutcheson, Reynolds & Caswell before being wooed by the commercial focus of W Bruce Martin Insurance (later sold to Canada Brokerlink). In 1995, he won his first franchise contract. He has been cultivating that part of his business ever since. “That’s spun off into other groups ... you get word-of-mouth and referrals.”

I have clients from Halifax to Victoria

1986 GETS A LICENCE AND JOB WITH WILLIAM E JARVIS INSURANCE BROKERS

1983

BEGINS WORKING AT ALGONQUIN PARK

After graduating from Trent University, Withey returned home to Mississauga, Ont., needing a job. A manager at William E Jarvis Insurance Brokers promised him a position if he got his insurance licence. In two months, Withey went from recent grad to licensed insurance agent. “It was a quick little turnaround.”

www.insurancebusiness.ca

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email insurancebusiness@kmimedia.ca

LIGHT ON HER FEET Educating clients on insurance or teaching Bollywood-style dance classes, DJ Dhillon loves empowering others AS A GIRL, DJ Dhillon was enamoured with Bollywood culture. At 14, she began performing Bollywood-style dances at small theatres, various functions and fundraisers. She went on to form her own dance company, Masala Moves. In 2008 Dhillon was searching for liability insurance. She came across an understaffed insurance business – and handed in her resume along with her insurance application. “I like to be stimulated all the time, so it’s the perfect job – and it gives me that balance to also teach dance,” she says. Dhillon doesn’t perform much anymore but enjoys empowering women through dance. Today her business focuses mainly on choreography for wedding parties, fundraisers and even Miss World Canada. “I really like teaching women of all shapes and sizes,” she says. “They come in, and they don’t know how to dance – or so they think … after the fifth class, you can see the difference in … how they … enter the room.”

The average number of songs in a Bollywood movie

The number of dance styles incorporated into modern Bollywood dance

The number of years Dhillon lived in India as a child

www.insurancebusiness.ca

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FEATURES

EXPERT ADVICE “Trying to take shortcuts in tight economies could lead to negative impact to service delivery, financial loss, physical property damage or customer loss”

HIDDEN RISKS FOR SMALL-BUSINESS OWNERS SMALL-BUSINESS owners are known to be comfortable with some level of risk. It’s likely part of what helped them take the step to become entrepreneurs in the first place. But the list of current and emerging risks facing small business is growing, and any one of them could become a significant threat if not mitigated with careful planning. “There are many risks facing small businesses such as technology, climate change, and the sharing economy,” says Rosalind StaplesSimpson, vice president of small and medium enterprise (SME) at RSA Canada. “Brokers have an opportunity to engage with SME customers to not only identify business risks, but also help them understand what could happen if these risks are ignored.”

Business interruption Many small-business owners may not look at insurance protection and risk mitigation as an essential expense – especially during an economic downturn where margins are tight. But making these important investments can avoid serious business interruption if something goes wrong.

For example, technology brings cyber-security threats, and privacy and data protection concerns. Inadequate snow and ice removal could lead to employee or customer injury. Or failing to talk to a lawyer about a contract may have serious consequences. “Trying to take shortcuts in tight economies could lead to negative impact to service delivery, financial loss, physical property damage or customer loss,” Staples-Simpson explains.

Impact on reputation Beyond what may be a temporary business interruption, the longer-term impact of risk is reputation damage. “A company’s reputation is its single, most important asset,” says Staples. “It’s important for brokers to help small business owners understand the value of these intangibles.” One example is the use of social and new media, where all customers have a public forum to lament their dissatisfaction with a company’s service or product. “You have to also consider the impact of a global economy where foreign competitors emerge and supply management can be quite

complex,” says Staples-Simpson. “If a supplier based in another country is not subject to the same level of regulation on quality, this could in turn negatively impact a business’ reputation.”

Underinsurance Staples-Simpson also emphasizes the need for every business to have appropriate insurance coverage: “Taking the time to work with a trusted broker to ensure they understand your business is one of the most important steps a business owner can take to secure the right insurance to protect their company.” She says underinsurance can “put a smallbusiness owner out of business.” “An experienced broker will help SME owners find the right coverage and terms for their business,” she says.

Responding to SME insurance expectations “SME clients expect quick service and a comprehensive package at a fair price,” says Staples-Simpson. “They also need flexibility in the way they can access their broker that fits with their hectic schedules in running a business. Clearly understanding how they work and what their business is about will provide brokers with better context for their insurance needs. This will not only enable brokers to provide custom advice to protect their business, but will also help evolve the broker-customer relationship over time.” Rosalind Staples-Simpson is vice president, SME – Canada at RSA Canada. She has more than 15 years of experience with RSA, working across Canada in various senior underwriting positions.

www.insurancebusiness.ca

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