Insurance Business Canada 4.04

WWW.INSURANCEBUSINESS.CA ISSUE 4.4 | $12.95

BROKERS The good, the better and the best: a rundown of the industry’s top talent of 2016

MAKE FRIENDS AND INFLUENCE PEOPLE

Get your own way in business and still earn the respect of your colleagues and clients

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THE ART OF THE PRESENTATION

Tips for keeping your audience informed as well as entertained

CROSS-BORDER POLICY

Providing the right coverage for clients doing business in the United States

17/08/2016 2:30:31 AM

DECADES OF EXPERIENCE DEVOTED TO YOUR CLAIM. Property | Casualty | Executive & Professional Lines | Healthcare Professional Liability

Berkshire Hathaway Specialty Insurance is pleased to bring underwriting flexibility, claims handling excellence, and financial strength to Canada.

Our experienced team in Toronto is committed to providing precisely the coverage you need.

BHSI Canada Royal Bank Plaza North Tower 200 Bay Street, 15th Floor Toronto, Ontario M5J 2J2 info@bhspecialty.com

Atlanta | Boston | Chicago | Fort Lauderdale | Houston | Irvine | Los Angeles | New York | San Francisco | San Ramon | Seattle Stevens Point | Auckland | Brisbane | DĂźsseldorf | Hong Kong | Melbourne | Singapore | Sydney | Toronto

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CHOOSE A CHAMPION Congratulations Jimmy Walker

2016 PGA Champion Burns & Wilcox Brand Ambassador

Expertise, perseverance and hard work separates the contenders from the pretenders. Access industry experts that have the widest variety of commercial, professional and personal solutions.

Whatever the challenge, you can perform like a champion with Burns & Wilcox.

Burns & Wilcox, the leader in specialty insurance.

burnsandwilcox.ca

Cross Border | Binding | Commercial | Professional | Personal | Risk Management Services

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ISSUE 4.4

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

Advice from elite brokers

06 Statistics

FEATURES

24

CROSS-BORDER POLICY

COVER STORY

26

The ins and outs of providing cover for Canadian firms trading in the US

Facing up to the challenges of transformation

12 Intelligence

The latest industry news, moves and appointments

14 MGA update

18 News analysis

44

CONFERENCE REPORT

Canada’s top experts discuss the flood landscape at ‘blue-ribbon’ event

JLT group chief executive Dominic Burke talks about overcoming challenges and responding to growing cyber threats

Facing the challenges presented by lone-wolf terrorism

FEATURES 46 Digital solutions

How CMM software is improving customer experience

50 Be less boring Top tips for winning over your audience

PEOPLE 42 Broker insight

InsureBC’s Allison Bergen on one of the country’s largest broker networks

52 Career path

FEATURES

48

IMPROVE YOUR INFLUENCE

Learning to get your own way isn’t manipulation, it’s a business tool

2

10 Opinion

Dealing with the real-life risks of the virtual world

FEATURES

20

Where’s the industry’s generation next?

16 Technology update

We’ve done the sums and crunched the numbers to bring you the definitive list of the top 57 brokers leading the Canadian insurance market

INDUSTRY ICON

08 Head to head

Insurers need to learn of the value and flexibility of MGAs

ELITE BROKERS LIST 2016

PEOPLE

The changing face of broking

Michael McLachlan’s new venture

55 Other life

Mary Berg, from insurance to MasterChef cooking supremo

INSURANCEBUSINESS.CA CHECK IT OUT ONLINE

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CA c

We are Markel.

Commercial general liability Directors and officers liability Environmental impairment liability Life sciences 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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22/02/2016 10:32 17/08/2016 2:17:44 AM

UPFRONT

EDITORIAL

Advice from our Elite Brokers

T

he bad news keeps stacking up for the Canadian economy. Weeks of poor economic reports detail the struggles of the manufacturing industry, the low loonie and the comparatively stronger US economy.

In fact, the country suffered its steepest monthly decline in July in GDP since 2009, as the full impact of the Fort McMurray wildfires shrunk the economy by 0.6%.

Bad news for the economy, of course, means greater struggles for insurance brokers. But a poor economy can only make so much difference. In our 2016 Elite Brokers List, Insurance Business Canada has identified those insurance professionals who have used impressive strategies to beat poor economics and grow their businesses. While every individual on our list is different, we did notice some common traits among brokers who managed to accumulate impressive books of business last year.

www.insurancebusiness.ca SEPTEMBER/OCTOBER 2016 EDITORIAL Senior Writer Penelope Graham Writers Libby Macdonald, Tim Garratt, Henry Preen, Paul Lucas, Joe Rosengarten, Caitlin Bronson, Lyle Adriano Executive Editor – Special Features Ryan Smith Copy Editor Bruce Pitchers

CONTRIBUTORS Michelle Lopilato, Christine Khor

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

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

Elite brokers use all their available resources to make valuable connections and form relationships that, over time, they can leverage into professional partnerships First, elite brokers make sales calls less about the sale and more about education. With millions of dollars in the insurance marketing sector, there are a lot of misconceptions for which even the most educated clients can fall.

But by reframing conversations as an opportunity to discuss risk and the concept of risk transfer, our top brokers have made more headway than most.

Second, elite brokers use all their available resources to make valuable connections. Whether that’s through neighbourhood groups, community events or alumni associations, these brokers form relationships that, over time, they can leverage into professional partnerships.

And finally, a significant number of our elite brokers have developed profitable niches for themselves in industries as varied as schools and beauty salons. Recognizing that specialization is the way forward, these brokers are examining their footprint in these unique niches.

We hope that learning more about these elite brokers gives you insights into how to improve your own business and see your name on next year’s list.

The team at Insurance Business Canada

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 Editorial Inquiries caitlin.bronson@keymedia.com Subscription Inquiries subscriptions@keymedia.com Advertising Inquiries cathy.masek@keymedia.com, chris.wills@keymedia.com chris.anderson@keymedia.com

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

Insurance Business America is part of an international family of B2B publications and websites for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business UK jonathan.connelly@keymedia.com T +44 20 7193 0935 Insurance Business Australia peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO

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www.insurancebusiness.ca

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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.

17/08/2016 2:18:14 AM

NAviGAtiNG the CANAdiAN iNsuRANCe LANdsCApe

Arthur J. Gallagher is one of Canada’s largest insurance brokerages. With Canadian roots dating back to 1890, we bring our global insurance expertise and our local knowledge to help our clients thrive. With more than 800 insurance professionals and 25 offices across Canada, our team harnesses our collective strengths to deliver exceptional service. We dig deeper to understand the business opportunities and challenges our clients face and deliver insightful and relevant insurance solutions tailored to their specific requirements. Our success is directly attributed to our local expertise and commitment to doing what’s right for our clients and our communities.

This commitment underpins our locally grown culture – the same culture for which we are globally known.

ajgcanada.com

GLOBALLY KNOWN. LOCALLY GROWN.

Arthur J. Gallagher Canada Limited is part of Arthur J. Gallagher, the brand name for the international broking and underwriting division of parent company Arthur J. Gallagher & Co. (NYSE: AJG).

Globally Known. Locally Grown. is a trademark of Arthur J. Gallagher Canada Limited.

t e

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17/08/2016 2:18:19 AM

UPFRONT

STATISTICS

The Changing Distribution Landscape

PERSONAL LINES DISTRIBUTION LANDSCAPE

What can brokers do to retain trust with clients as the insurance distribution landscape evolves?

DESPITE THE growing direct distribution market, the broker channel remains strong due to the expert counsel, service, advocacy and value brokers provide to clients. Brokers will continue to demonstrate their value as trusted advisors by taking measures such as clearer market segmentation; transformation of their operational model, creation of new potential

revenue sources, and tailoring their expertise even further to meet the unique needs of their clients. Most importantly, brokers should partner with the right insurers and build strong, mutually-beneficial relationships. This is a key component of RSA’s relationship model with its broker partners. For more information, visit www.rsabroker.ca.

The broker channel continues to dominate distribution in Canada in both Personal and Commercial Lines.

The chart shows Personal Lines distribution from 2011 to 2015 – with the broker channel shrinking from 52.1% in 2011 to 50.6% in 2015. The non-broker channel is gaining market share in Personal Lines at the expense of the broker channel but at a relatively slow pace. As the industry is driven by changing customer service expectations, particularly around access and convenience, many brokers are adapting their servicing and sales models to look and feel like the direct writers. This includes providing fast and convenient service online, and personalized advice as required. Brokers who are going to win in the future will continue to innovate their servicing models in a more cost effective manner.

CONSOLIDATION ACROSS THE INSURANCE VALUE CHAIN

451

Number of acquisitions in 2015 in Canada and the US

25%

Increase in acquisitions completed in 2015 compared to 2014

66%

Percentage of market premiums the top 10 brokers will represent by 2025

54%

Percentage of acquisitions made by private equity backed agencies

Source: Deloitte: “Property & Casualty Insurance Re-imagined: 2025”

IMPACT OF EXTERNAL FORCES ON THE CANADIAN P&C MARKET There are a wide range of forces and pressures that are impacting the Canadian P&C market and forcing brokers and agencies to rethink how they operate.

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Technology

9

Competitive landscape

8

Customer expectations

6

Economic and financial conditions

6

Regulation

5

Cyber risks

4

Catastrophes Source: “2016 EY Canadian P&C Insurance Outlook”

6

KEY CHALLENGES FACING THE INSURANCE INDUSTRY With the many challenges facing the insurance industry, brokers and agencies are in a battle to remain competitive. They need to adopt fresh approaches to up their game in order to not only thrive but survive.

COMPETITOR CONSOLIDATION Insurers and brokers are pursuing other strategies to grow revenue and market share – for many, M&A is the solution.

LOW-YIELD ENVIRONMENT Slow economic growth, the decline in the Canadian dollar and weakness in the oil and gas industry are major risks for insurers.

WEATHER The changing climate is making it difficult to develop models insurers can use to assess risk of a CAT event and price products appropriately.

CHANGING CONSUMER EXPECTATIONS Increasingly, customers want to interact directly with their insurers in their own time and through multiple channels.

REGULATORY ENVIRONMENT Regulators are moving towards greater scrutiny and increased oversight.

TECHNOLOGY ADVANCEMENTS Faster speed to market, improved interactions and more individualized pricing help attract and retain customers.

Source: Statistics Canada

www.insurancebusiness.ca

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47.9%

2011

49.4%

2012

48.5%

52.1%

2014

49.4%

50.6%

Broker

2013

49.1%

51.5%

2015

50.9%

50.6%

Non-broker Source: MSA Research Inc., RSA Canada analysis

COMPARING BUYER TYPES IN 2008 AND 2015 The volume of acquisitions being made by private equity backed buyers is driving pricing and valuations to new heights. The appetite among private equity buyers to make acquisitions does not seem to have been quenched, and 2016 results are expected to show another increase.

NO. OF MERGERS & ACQUISITIONS

NO. OF DEALS

AVG NO.OF TRANSACTIONS/BUYERS

2008

2015

2008

2015

2008 2015 % Change

BROKER-PE

16

20

62

242

62 242 212.3%

BROKER-PUBLIC

7

6

68

50

68

50

-14.2%

BROKER-PRIVATE

70

88

82

109

82

109

5.7%

BANK

23

16

42

24

42

24

-17.9%

OTHER

36

18

43

26

43

26

20.9%

TOTALS

152

148

297

451

1.95 3.05 56.0%

Source: OPTIS Partners: “2015 Agent/Broker Merger & Acquisition Statistics”

MERGERS AND ACQUISITIONS IN US AND CANADA 2008-15 Deloitte predicts that the top 10 brokers will represent approximately two thirds of market premiums by 2025. This is reflected in the number of mergers and acquisitions completed in recent years.

YEAR

2008 2009 2010 2011 2012 2013 2014 2015

NO. OF MERGERS & ACQUISITIONS

297 184 204 289 321 268 357 451 Source: OPTIS Partners: “2015 Agent/Broker Merger & Acquisition Statistics”

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17/08/2016 2:18:42 AM

UPFRONT

HEAD TO HEAD

Where’s the next generation of insurance professionals?

With baby-boomer retirements looming, who will grapple with the emerging risks of a changing world?

Alanna Taylor

President Young Brokers Council “As much as brokers spend time educating their clients, we need to also find time to educate young people about this industry and the opportunities available. Strengthening our relationship with students in the process of selecting their post-secondary path is paramount on the survival of this profession. Brokers need to seek out opportunities where they can promote this profession to future prospects; we need to put ourselves on the map as a preferred and recognized career choice. My hope is that people will stop saying they fell into the industry and we hear: ‘I always wanted to be an insurance broker.’”

Jonathan Brown

CAIB, director Professional Young Insurance Brokers “Currently our industry attracts new brokers through the same methods that we’ve always used: advertise a job, and people apply. At the PYIB board we’re looking to expand this approach by reaching out to those looking for a career versus a job – the idea being that if we can create lifetime brokers, we can see a generation continue for their working lifespan, rather than moving on to something else. We’ve been going into high schools, and going to job fairs at universities, trying to expand the career marketplace in the minds of those about to enter the workforce.”

Fred Plant

President Canadian Independent Adjusters’ Association “We let banks, graduate schools and accounting firms take the top graduates and the P&C industry often seems content to take whoever’s left. It will need more than a short-term view of financial performance to attract the best people.

Insurers live by the quarter. The impact of human resource decisions made in each of these quarters won’t be felt for many quarters. When they make a commitment to bring the best people to our industry, the focus will change from what needs to be done to meet today’s financial objectives to what needs to be done to meet a long-term commitment to quality in our industry.”

CHASING THE BEST AND THE BRIGHTEST This years’ inaugural insurance careers month was one initiative designed to bring fresh blood into an industry tackling such game-changing innovations as driverless cars and the sharing economy. The open letter penned by a trio of industry luminaries from Lloyd’s, Hamilton Insurance Group and Marsh & McLennan for its launch emphasized the need for young talent and zeroed in on an endemic lack of awareness: “What’s clear is that the critical role our industry plays is not fully understood, particularly among millennials. We need to do more to engage, educate and enlist the best and brightest to join us.”

South of the border, the figures are stark, with the next three years expected to see a quarter of all insurance professionals retire. At the same time, fewer than one in 20 millennials has any interest in a place in the industry. By 2020, 400,000 positions are projected to go unfilled.

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17/08/2016 2:19:04 AM

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UPFRONT

OPINION

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

Insurance reinvented Insurers focused on reinventing themselves must make more fundamental changes than ever before, writes Mary Trussle INSURERS HAVE been trying to transform their organizations for decades. First it was to implement enterprise-wide systems. Then it was to respond to the internet. Now they are focused on digitization and customer-centricity. So why has so little changed?

Transformation is difficult, disruptive and time-consuming. And most of the time transformation initiatives fail to achieve their objectives. It’s no wonder that many insurance executives have banned the word from their vocabulary altogether.

Insurers understand the urgent need to reinvent themselves. The problem is that, to truly ‘reinvent’, they will need to make more fundamental changes to their business and how they operate than ever before. Success will not come from tweaking the status quo; insurers will need to change virtually every part of their business.

To learn more about the specific challenges and opportunities insurers face as they work to reinvent their businesses, KPMG International surveyed over 70 executives from the largest insurers around the world. We asked about their recent transformation initiatives, existing capabilities and biggest barriers to change.

While many insurers consider themselves to be ‘early adopters’ or even ‘innovators’, many admit they are failing to get the full value from their transformation initiatives. Only half of insurers polled believe they are capable of extracting and sustaining value from business transformation initiatives. Few are confident they are achieving full value from their change initiatives, and 57% admit that their transformation efforts to date have been less than ideal.

Most tell us they lack some of the capabilities needed to drive change on the scale required.

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The survey also revealed: • 30% of insurers are assessing the need for, or planning, a major business transformation.

• 27% have started a major business transformation initiative in the last two years.

• 41% have completed one or more major business transformation initiatives in the last two years.

• 42% say lack of change management acumen is a barrier to successful transformation.

Tips for those looking to challenge conventional thinking: • Horizon scan what the world might look like in five to 10 years.

• Harness external thinking, ideas and inspiration.

• Be willing to disrupt your own business.

• Take time to evaluate customer preferences – don’t reinvent yourself into something customers no longer value.

• Consider new open-architecture technology that is adaptable to future business needs.

• Target investment to high-value areas aligned to signals of customer demand.

• Gone are the days of massive, multiyear transformation programs – leading organizations move with agility to deliver value quickly.

• Learn from others – partnerships and alliances are key to future success.

• Apply agile and dedicated leadership.

Creating long-lasting value requires clear vision, courage, passion and strong executive support.

Transformation is difficult, disruptive and time-consuming. And most of the time, transformation initiatives fail to achieve their objectives One huge perceived barrier to change is regulation. In fact, more than a third (37%) of respondents said the potential for regulatory change represented a major threat to achieving their transformation objectives.

In order to succeed, organizations need leaders who can collaborate inside and outside their organizations to create and implement new operating models that will enable future success. Around a third of respondents noted that they were watching organizations outside of the insurance sector, and those with disruptive technologies, in order to find inspiration to help them reinvent their organizations.

Insurance executives increasingly view technology as a catalyst for change: 47% said new mobile platforms and apps were forcing change in their business and creating new opportunities for transformation.

Successfully driving transformational change requires changing how line executives operate. Often it requires taking ideas, approaches and even talent from other sectors.

Above all be bold. Inspiring innovation is tough. Commercializing and maintaining the innovative edge is even tougher.

In a highly regulated sector, treating changes in regulation as a springboard to enhance the business for customers rather than something to be endured distinguishes players at the top of their game. The data suggests that many insurers may not yet have their eyes on the ultimate prize.

Mary Trussell leads KPMG’s insurance practice in Canada, and brings expertise covering the entire range of insurance markets, from life, health and personal lines to specialty lines and reinsurance.

www.insurancebusiness.ca

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17/08/2016 2:19:35 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Jardine Lloyd Thompson

Olsa Re

Olsa Re boasts over 30 years of specialized aviation and cargo expertise.

HUB International

Parq Advisors

Parq Advisors specializes in life and disability insurance to high-profile athletes, entertainers, and professionals.

iA Financial Group

BMO Group Retirement Services Inc

GRS provides administrative services for group retirement plans.

BrokerLink

Cornerstone Insurance Brokers Ltd

90 of Cornerstone’s employees will join BrokerLink, including CEO Wendy DaSilva.

Totten Insurance Group

Canadian Resources Insurance Solutions

Acquisition made in efforts to “define specialization in providing exceptional underwriting service in key industry segments”.

Lackner McLennan

Erb and Erb Insurance Brokers

Erb and Erb to continue to operate as own entities for next few years for continuity.

AIG introduces Brexit insurance

Due to Brexit, many foreign-born executives must now apply for residency in order to stay in the UK. AIG’s new coverage – an add-on to AIG’s directors and officers liability policy – covers the costs of a legal challenge should a residency application be rejected or a repatriation order made. It also covers the costs should repatriation occur. “This addition to existing cover, implemented at no additional cost, will give our clients peace of mind during a period of potential change,” said Anthony Baldwin, AIG’s chief executive for the UK and European businesses.

Brokerage giant makes specialty aviation acquisition

Massive brokerage Jardine Lloyd Thompson has announced its subsidiary JLT Re acquired the portfolio of Olsa Re, a move made in efforts to reinforce its status as one of the largest global industry players.

Olsa Re, which is based in Peru, has over 30 years of specialist experience in the aviation and cargo sectors. The acquisition is seen to strengthen JLT Re’s position as a leading brokerage firm in Peru, with the addition of Olsa Re’s significant aviation industry expertise and established client portfolio.

Stated JLT: “Olsa Re’s proven aviation expertise will add even greater depth to our already leading client offer in the marketplace.”

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New lines offering from Berkshire Hathaway Specialty Insurance

BHSI has unveiled four new lines of insurance serving the financial institution space in Canada, including Professional First Asset Manager Liability Insurance, to protect mutual and investment funds; Professional First Brokers Professional Liability Insurance, to cover the banking industries; and Professional First Insurance Company Professional Liability Insurance, for P&C insurers. The offering will be lead by Andrew Knight, BHSI’s new national director of financial institutions, executive and professional lines, Canada.

www.insurancebusiness.ca

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PEOPLE Ironshore launches additional protection for construction project owners

A new product designed to offer extra protection to the owners of construction projects has been unveiled by Ironshore Specialty Casualty. Named Owners Protective Professional Indemnity (OPPI), the coverage guards against firstparty loss caused by contracted design professionals and builders’ negligence, as well as third-party claims against the project owner that go behind an existing professional liability insurance policy limit. “The OPPI product offers project owners a value-added protection vehicle for construction project design risk,” said Ironshore construction industry practice leader Ben Beauvais.

NAME

LEAVING

JOINING

NEW POSITION

Donna Barclay

N/A

The Guarantee Company of North America

Chief underwriting officer

Colin Simpson

N/A

Insurance Brokers Association of Ontario

CEO

Rowan Saunders

RSA Canada

Economical Insurance

President and CEO

Martin South

N/A

Marsh

President, US and Canada

Laurie Walker

N/A

Sedgwick

Senior vice president and director of operations

Lorri Frederick

N/A

Claimspro

President

Coverage for every Uber

Intact Financial Corporation has launched a blanket policy for Uber drivers in Ontario and Alberta, meaning all ride-share drivers employed by the TNC are automatically covered in those provinces, from the time a ride is arranged through the app until the trip is completed. When the app is off the vehicle owner’s personal auto insurance policy applies. Both provincial governments recently approved a regulatory change under the Insurance Act to allow insurance companies to develop commercial fleet insurance policies for ride-hailing companies.

Preventing cyber attacks from causing real damage

Chubb has unveiled a new coverage to protect against the financial losses associated with cyber attacks. A new addition under Chubb’s Canadian Masterpiece Family Protection policy, the coverage will protect against the most common legal expenses associated with online bullying, such as wrongful termination and false arrest.

“Technology can be a gateway to risk,” said Paul Johnstone, senior vice president at Chubb Personal Risk Services Canada. “Cyberbullying can create reputational damage and cause financial loss.”

Rowan Saunders makes the jump to Economical

The former president and CEO of RSA Canada, Rowan Saunders will be taking the top spot at Economical Insurance, effective 1 November.

Saunders has served as RSA chief since 2013, and will succeed outgoing Economical CEO, president and director Karen Gavan, as she retires on 31 December.

“I am very pleased to join Economical at such a critical moment in its evolution. There are so many exciting things under way and I am honoured to have the opportunity to join a high-performing leadership team to build on the success they’ve achieved during the last few years,” he said.

Lorri Frederick takes president post at ClaimsPro

An industry veteran with two decades of experience, Lorri Frederick has made the move from COO to president of ClaimsPro. In her new role, she will be focusing on ClaimsPro’s five-year strategic plan, as well as expanding the team in order to move into specialty and niche markets.

“It’s all about people and that’s what I love about the job that I do,” she said. “I just give people respect and the opportunity to shine, and opportunities they want to grow into. That’s what is exciting for me. It’s not an assembly line or factory creating something; it is people producing a professional product.”

www.insurancebusiness.ca

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17/08/2016 2:20:07 AM

UPFRONT

MGA UPDATE

Flexible solution to market frustrations One hurdle remains to MGAs’ growth: informing insurers of the value and flexibility they can provide

MGA does allow them to better use their capacity and cut expenses so they will no longer need to employ underwriters, use claims departments; the computerization of placements will be outsourced by the MGA, and we’ll still be providing the insurer with a quality underwriter,” he says.

He adds that brokers are increasingly underwhelmed by the service offering from standard market insurers – another area MGAs are alleviating through greater product offering and flexibility.

“I think the challenge is insurers understanding what we actually do.

We do find a number of insurers look at MGAs as just a broker with a pen”

Gary Hirst, senior consultant to the president at the Toronto branch of CHES Special Risk, says from improving loss ratios to streamlining operations, MGAs have much to offer Canada’s insurers – but still lack the recognition in the marketplace.

“I think the challenge is insurers

NEWS BRIEFS

understanding what we actually do. We do find a number of insurers look at MGAs as just a broker with a pen,” he says.

“But if you look at the combined loss ratios from the insurance companies based in Canada, they are very high 90, sometimes excess of 100, ratios. Using an

New capacity launched for mining and mineral extraction industry

CHES Special Risk Inc has launched the Canadian Mineral Extraction Program, a new mix of products offering coverage for above- and below-ground property and liability risks, including mining and quarrying, crude petroleum and natural gas extraction, as well as support activities.

Douglas Everett, president of CHES Special Risk Inc, says coverage is a must, given the many inherent industry risks posed by the industry, to protect one of Canada’s primary industries.

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“I think they’re also frustrated with the lack of flexibility and MGAs are bringing greater flexibility in the way they’re able to look at the risk,” he says. “They are bringing greater product offering and they’re also investing heavily in the mediums of providing that capacity. For instance, CHES Special Risk will be bringing out online binding capabilities for our brokers, so they can actually access our website and they can actually quote and find business themselves without having to talk to an underwriter.”

Lloyd’s of London sells iconic piece of James Bond history

Lloyd’s of London has sold the Elrod House, located in Palm Springs, California, for US$8m. The home, designed

by John Lautner, features a spectacular 60ft-wide circular living room, vaulted dome ceiling and a pool that extends from indoors to outside. Retractable glass walls blur the lines between indoor and outdoor space.

The house’s architecture featured famously in the 1971 James Bond film Diamonds are Forever, starring Sean Connery. It has been sold to Jeremy Scott, a fashion designer based in Los Angeles.

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Q&A

Nona McCreedy

The growth of MGAs in Canada

Owner AURORA UNDERWRITING SERVICES INC

Fast fact Aurora Underwriting has been in business for over 190 years, and offers a wide variety of expertise, including CGL, environmental liability, special events, and IT liability.

How is the MGA space evolving in Canada?

“It has evolved over the last 100 years. MGAs started out in Canada across the country, when the domestic markets were housed in Toronto and Montreal.

The MGAs wrote standard market business, and then over the years they dwindled down as domestic companies put branches across the country. MGAs wrote for high-risk or really strange things when the standard market didn’t. But now, over the last 10 years, MGAs are coming back into being very mainstream markets.

We still all do the crazy things, but as more companies emerge, our market is becoming very mainstream as domestics cut lines and we pick them up. We’re becoming a mainstream market for brokers who lose markets with the mergers.”

What new areas of coverage are becoming more commonplace?

“Cyber is the big one – that’s the flavour of the month and everyone is talking about it. There are two or three syndicates of Lloyd’s that are writing it; there are a couple of international companies that are writing it, but on the flip side, the pricing on it is very difficult to do, because we don’t have enough claims that are finalized through the costs and courts to figure out if we’re pricing the

New senior underwriter announced for former MGA

Specialty insurer Markel International has announced a senior underwriter appointment to head up its newly created marine equipment business.

Andy Lane, formerly of Skuld, will take the spot as senior underwriter of the business division within Markel’s larger marine, energy and property division.

He brings 20 years of experience in the industry, including positions at Tokio Marine, CAN and RSA in senior underwriting positions.

product properly, or even if we have the right coverages included in cyber. It’s going to be an ongoing one that is always interesting.”

What are some of the main challenges facing Canadian MGAs? “In Canada, one of the challenges is licensing, because you have to have these curious-minded underwriters.

We, as MGAs, we have to be licensed, which means it’s very difficult to take an underwriter from a company and get them licensed, because most underwriters are specialized; they’re not fluent in all lines and in order to be licensed, you need to be. So we end up taking retail brokers, who are licensed, and then teaching them to underwrite. That’s a big challenge for all of us – finding qualified staff.”

What makes Aurora Underwriting stand out?

“We like a challenge, so we love the weird and wonderful risks. We do the standard market stuff that we write on all of our contracts, but we spend a lot of time – probably a third of our day – working with brokers and just teaching them what coverage they need to ask for; how they need to get the info from their insurers. We spend a lot of time educating brokers.”

Global insurance giants form new Canadian association

A new insurance association representing some of the largest commercial insurers from around the globe has been formed in Canada. The new Global Commercial Insurers Association (GCIA) has been established to provide a voice for foreignowned commercial insurers operating in Canada, with founding members including giants such as AIG, Allianz Global Risks Insurance Company, CHUBB Insurance Company of Canada, Lloyd’s Underwriters and Zurich Insurance Company Ltd.

National MGA Totten Insurance Group acquires insurance wholesaler

Totten Insurance Group has acquired the shares of Canadian Resources Insurance Solutions, Inc in a move that will further entrench the MGA in the Canadian marketplace and “further defines its specialization in providing exceptional underwriting service in key industry segments”. “The synergies created by this partnership will add significant value to our broker partners and further enhance Totten’s focus on specialty underwriting,” said Susan Murphy, president of Totten.

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UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS New tech is in the budget for 80% of insurers

A new survey from Redcentric finds eight out of 10 insurers plan to invest in new technology this year. According to the findings, 45% of insurance firms cite improving customer experience as the motivation behind the spend, while 70% want to give their IT departments a boost. According to Redcentric, the need for insurers to invest in digital platforms came out of the global insurance outlook released by Ernst & Young. “It’s evident the industry is reaching a point where change is becoming crucial – but insurers are often left wondering where the money for investment will come from,” said Redcentric chief technology officer Simon Michie.

Self-driving cars under scrutiny

Safety concerns – and insurance questions – around self-driving cars have been inflamed following the fatal crash of a vehicle while in autopilot mode. The Tesla Model S was speeding at 75mph when it collided with the side of a turning truck, due to its sensors’ inability to differentiate between it and the overcast sky. The accident, which killed a 40-yearold Ohio man, poses questions for who will assume liability as self-driving cars become more commonplace. Tesla and the autopilot chipmaker Mobileye have ended their association. Tesla is believed to be working on its own replacement for the third-party technology.

Insure tech looks to complement, not disrupt

A recent study finds the majority of newcomers to the insurance technology space are trying to work within the existing parameters of the insurance industry, rather than steal their

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business. The study by Startupbootcamp and PwC discovered that customer service is the focus for 35% of the insurtech start-ups, and 75% of existing insurance businesses also believe that improving customer relations through new technology will be the biggest impact on the industry. “If insurtech start-ups and incumbent companies can successfully work together to build new and relevant insurance products … it is not just an opportunity to increase profitability, it is a real chance for insurers to build and retain trusted relationships with customers,” commented Jonathan Howe, PwC’s insurance leader in the UK.

Proof peer-topeer businesses and insurance can work together

Turo, the latest addition to Canada’s sharing economy, has been making waves, but has avoided most of the insurance headaches experienced by ride-share competitor Uber. The company, which launched its services in Canada in April and operates in Alberta, Ontario, and Quebec, employs a subscription-like system to provide its drivers with blanket coverage. Once its insurance issues have been straightened out, Turo plans to go national with its services, setting a precedent for fellow peer-to-peer models.

Sun Life Financial partners with Plug and Play

Sun Life Financial has partnered with US-based Plug and Play Tech Center in efforts to support the development of industry innovation.

Plug and Play is a tech accelerator that holds industry-specific programs, connecting start-ups from around the world with corporate partners. “Inserting ourselves with Plug and Play will speed up the delivery of cutting-edge solutions for clients,” said Sun Life Financial president and CEO Dean Connor.

VR leads to real liability as Pokemon Go craze takes hold The first game to utilize augmented reality has sent players onto private property and into harm’s way – but who is liable?

They came in search of Pikachu, Bulbasaur and Charmander, with smartphone in hand and adventurous in spirit – and in doing so, unwittingly entered a grey area for personal and cyber liability.

The emergence of Pokemon Go, touted as the world’s first augmented reality app, skyrocketed in popularity after launching in July. The game, which utilizes a smartphone’s GPS system and camera, places users in a realworld hunt for digital monsters – whether they be located on private property, amid traffic or by commercial businesses. It wasn’t long before reports of injury and criminal activity surfaced – but who was responsible?

“Consumers use apps in ways that one cannot always predict and thus claims are brought that insureds cannot always predict,” stated Charlie Murray, technology underwriter at CFC Underwriting Limited.

“Therefore, app developers should be seeking a broad E&O wording, covering exposures such as user-generated content, bodily injury, property damage, breach of contract and civil liability, which can give insureds peace of mind and balance-sheet protection in the event an allegation is made against them.”

Beyond physical dangers, the app has also raised cyber security concerns, coming

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under fire for accessing the contact, social and location data of users – many of whom are underage. “Collecting technical data that could be used to identify the street on which someone lives, could arise liability should there be a data breach,” said Jim Carter, Of Counsel in the policyholder-only insurance coverage practice at BlankRome LLP. The first lawsuits against Nintendo and app developer Niantic are beginning to emerge. A New Jersey man, fed up with players trespassing on his lawn after his home was designated as a Pokemon gym, intends to file a class-action suit on behalf of all property owners who have been trespassed by the game. A Calgary woman has also been named the main plaintiff in a class-action suit against Niantic, alleging her home and neighbourhood have been “inundated by players” since the game was introduced.

“App developers should be seeking a broad E&O wording, which can give insureds peace of mind” However, Carter says it remains to be seen whether Niantic will be held liable, depending on whether it is found to have been aware of negligence in terms of trespassing.

“It’s difficult to say whether Niantic will be held liable – its liability will depend on the individual circumstances of any case,” he says.

“One of the key factors will be what it knew, and when it knew it, and whether or not it should have known of the physical hazard.

“You could have indirect liability for trespassing by interfering with someone who has possession of the land. If the developer

is improperly designating someone’s private residence as a Pokemon gym and people are constantly visiting and interfering with the owner’s property rights, assuming that the developer has knowledge of the situation, there is liability.”

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UPFRONT

NEWS ANALYSIS

Defending against the lone wolf With lone wolf-style terrorist attacks on the rise, more businesses are rethinking their insurance portfolios – but with so many new and specific products, it’s a tough conversation ON THE evening of July 14, a lone driver in a 19-tonne truck deliberately drove into crowds celebrating Bastille Day in Nice, France. What would ultimately become one of the deadliest mass killings in French history left 85 people dead and 307 injured, as the world decried the act as one of terrorism and hate.

The actions of the driver, Mohamed Lahouaiej-Bouhlel, did not happen in a vacuum, however. Just a month earlier, gunman Omar Mateen shot and killed 49 people in a similar hate crime at Pulse, a gay nightclub in Orlando, Florida. And in December 2015, Syed Rizwan Farook and Tashfeen Malike went on a shooting spree and attempted bombing at a San Bernardino County Department of Public

group, and the negligible property damage caused came nowhere near triggering a federal determination of terrorism.

This style of ‘lone wolf ’ attack, in which a small number of unconnected parties commit ideologically driven crimes without direction from a larger group, is growing in influence. As insurers prepare to meet these challenges – particularly in the wake of a US CIA report anticipating a heightened threat from groups pledging allegiance to the Islamic State this summer – they need to be aware of the strengths and differences among a bevy of new products on the market.

The most obvious applicable coverage is standalone terrorism, and the market has

“Much of the industry’s rating on terrorism risk has been based on events like 9/11, but that’s not what we’re seeing now” Ben Tucker, head of Terrorism & Political Violence, XL Catlin Health training event and Christmas party.

Yet despite being labeled in the press as acts of terror, these three events have one thing in common – they were committed by people who had no direct support from a known terrorist

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been flooded with inquiries following recent events, says Jen Rubin, head of the Hiscox War, Terrorism & Political Violence Practice Group.

“We’ve gotten a lot of inquiries since Orlando, with folks wanting to know what’s

available in the market, what pricing looks like and what limits look like,” Rubin says. “Most of that is coming from the smaller side of the market – those who are largely new to stand­ alone coverage and may not be big enough to have their own security procedures in place.”

Standalone coverage pays at the first dollar lost and operates on a rather broad definition of terrorism. Standard industry policies define it as an attack that is politically, religiously or ideologically motivated – a determination made after claims departments review details of the case, media reports and other evidence.

The attacks in Nice and Orlando likely qualify under this definition, Rubin says.

Standalone terrorism coverage pays for property loss, including repair and replacement, as well as business income and any relocation expenses needed. Businesses can also purchase endorsements for nuclear, radiological, chemical or biological attacks, which are typically not covered under the policy.

But the Nice, San Bernardino and Orlando incidents had something else in common: they

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THE COST OF TERROR The top 10 most costly terrorist acts globally in 2015, measured by insured property losses ($ millions): 1

September 11, 2001: World Trade Center and Pentagon attacks $25,152

2 April 24, 1993: NatWest Tower bombing

$1,215

3 June 15, 1996: IRA car bomb in Manchester

$996

4 April 10, 1992: London Financial District bombing

$889

5 February 26, 1993: World Trade Center bombing

$837

6 July 24, 2001: Colombo, Sri Lanka attack

$553

7 February 9, 1996: IRA South Key Docklands

bombing $347

8 June 23, 1995: Air India bombing

$217

9 April 19, 1995: Oklahoma City bombing were all committed without causing significant damage to property. The harsh new reality in global terrorism is that incidents involving one active assailant occur often and claim many lives. And that can lead to coverage gaps for businesses of all sizes, says Ben Tucker, head of Terrorism & Political Violence at XL Catlin.

“Much of the industry’s rating on terrorism risk has been based on events like 9/11, which

XL Catlin has tried to fill that void with its new Active Assailant policy. The product, which has driven much of the company’s recent increase in submissions, offers time element coverage due to bodily injury or death, not just physical damage. It can be triggered when an event involving a handheld weapon (such as a gun or suicide bomb vest) affects three or more people – and the definition of ‘affects’ is broad.

“We’ve gotten a lot of inquiries since Orlando, with folks wanting to know what’s available in the market” Jen Rubin, head of Hiscox War, Terrorism & Political Violence Practice Group are very catastrophic and have a lot of property damage, but that’s not what we’re seeing now,” he says. The focus on physical damage and general liability often seen in standalone terrorism policies, then, means the products typically “don’t help clients respond immediately” following an attack.

A person could simply be a witness.

That has made the product appealing to businesses of all sizes, including smaller companies that would otherwise miss TRIA triggers or suffer from losses caused by a highfatality attack that did not involve significant physical damage or generate legal action.

$195

10

September 12, 1970: Hijacked Swissair jet explosion $170 Source: Insurance Information Institute

“I think the level of awareness is increasing quite dramatically, and it’s not limited to large risk management type of exposures,” Tucker says. “It’s really about responding to the time element rather than waiting to be sued or having your property destroyed.”

The interest in diverse terrorism coverage is so great that XL Catlin is fielding calls from independent agents and wholesalers representing school districts, public buildings or small hospitality accounts. Recent events have them concerned about their clients’ coverage, and Tucker offers this advice: “What tends to happen on the smaller business side is that companies will buy their property and GL coverage as a package, and may or may not take up TRIA as a part of that. But they don’t really appreciate that $5 million trigger,” he said. “You really need to put the coverage into silos, a bit.”

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PEOPLE

INDUSTRY ICON

WHERE CULTURE IS KING JLT’s group chief executive, Dominic Burke, talks about overcoming challenges in the business and how the organization is responding to the growing cyber threat

AFTER 15 YEARS leading the Burke Ford Group of companies, which he co-founded, Dominic Burke wanted to explore other opportunities.

“I got to the point where I was perhaps not challenged, and some of my minority shareholders probably wanted to cash out, and I wanted to go forward,” he says.

So he knocked on the door of JLT. “I was always greatly taken by the JLT culture,” he says. “I sought to join them in 2000, and they kindly agreed to buy my business.”

Today, Burke is the group chief executive of JLT, a role he took on five years after joining the multinational insurance broker. Asked to single out the greatest challenge he’s faced in his 11 years at the head of JLT, Burke mentions the need he identified several years ago to provide the organization with clarity.

“I suppose it’d be fair to say that, back in 2005 and 2006, there was some confusion around what JLT was, where it was going and what its strategy was,” he says. “I think that was clearly a significant challenge – to shape the direction of the organization.

“JLT always had a reputation of being fantastically smart transactional brokers and having good knowledge in one or two specialties, in particular marine and energy,” he continues. “At the same time, we’d had some profit warnings under the previous leadership of JLT, and that meant

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that there was uncertainty around the long-term prospect of an independent JLT. In those first few years, probably the most difficult challenge I had was to articulate the strategy of the company, convince our people and all other stakeholders in JLT that we could and would be able to build a business that can and does – every day now – challenge the major global brokers in the specialty segments in which we play.”

He attributes his success in addressing those challenges to “the great people” at JLT.

and really being tenacious and fierce client advocates was, at its core, what the old JLT was and, at its core today, is absolutely what it is.”

Addressing cyber As is the case industry-wide, cyber risk has presented a pretty significant learning curve for JLT. “Everybody is still learning at a huge rate of knots, I suppose, as to the types of exposures and where those exposures

“Back in 2005 and 2006, there was some confusion around what JLT was, where it was going and what its strategy was. I think that was clearly a significant challenge – to shape the direction of the organization” “We rallied together and articulated what the strategy was to be, and we’ve very successfully executed on that,” he says. “JLT is perhaps unrecognizable from back in those days of 2005, save that the culture of the organization is still the core of the organization. That culture of being great transactional brokers and putting your client first and doing the right thing

can come from,” Burke says. “And also looking at how behavioural changes and risk mitigation can create a better outcome and reduce the exposures to corporates around the world. The insurance market is seeking to be innovative around cyber but, of course, from a capital provider’s perspective, it’s very difficult to truly measure the expense and the level of

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PROFILE Name: Dominic Burke Company: JLT Title: Group chief executive Age: 57 Fast fact: High-level insurance careers run in the Burke family.

Dominic Burke’s brother, Benedict, is an insurance industry veteran himself who is currently chief client officer international at Crawford & Co

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PEOPLE

INDUSTRY ICON

exposures and where those exposures may materialize. It is about an education to better processes, better technology, better behaviours by employees and corporates themselves in physical risk mitigation and then, obviously, the degree of risk transfer.”

For its part, JLT is taking some proactive measures to foster stronger client awareness around cyber.

“What we’re doing is spending a lot of time educating both our own people and our clients,” Burke says. “Seeking to innovate and push the boundaries of what’s currently available in the insurance market; looking at pricing models using

Growth in the US Burke is overwhelmingly positive about JLT’s progress in expanding its US operations.

“I’ve just spent two weeks doing a tour of most of our US operations, seeing a great number of clients and prospective clients, visiting our people in our offices,” he says.

“I’ve come back from the US really excited – surprised, on the upside, how far we’ve progressed in terms of brand recognition and the momentum around revenue and winning clients. We are having a profound impact, I think, and the momentum is building and building, and we now have over 200 people in our specialty business.

“We’re ahead of where we could have imagined or expected to be in terms of the number of talented people who have joined JLT, and that is critical. You cannot built a business without real talent” our analytics capability, which is very strong in this space; and helping map out the type of exposures and the way that we can help our insureds consider the degree of risk transfer they need to undertake.”

Burke adds that in today’s world, it’s vital for insurance businesses to partner with technology companies in their endeavours to address cyber risk.

“We’re now clearer as to where the exposures are,” he says. “But trying to grapple with them, trying to find the right level of indemnification and protection is primarily through insurance, but it is also very much driven by technology. If anybody thinks they can provide a solution without that, I think, they’d potentially be fooling themselves or they’re not going to be able to provide the right consulting and advisory processes or ultimately the outcomes that I believe clients clearly need.”

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“We do intend to build a business of scale, relevance and impact in our specialty sectors, and the story is still early in chapter one.

There’s a long way to go, but we’re ahead of the plan; we’re ahead of where we could have imagined or expected to be in terms of the number of talented people that have joined JLT, and that is critical. You cannot build a business without real talent. So we’re in great shape. I’m absolutely delighted and excited by how much progress we’ve made and are making on a daily basis.”

Overall, Burke is confident about the direction the global broker is heading.

“I’m convinced – as is my board, our people and clearly our clients – that we’re on the right track. And we will continue to stay on track and continue to invest and continue to build, whether that’s in Australia, Asia, Latin America, Europe or in North America.

JLT BY THE NUMBERS

1972

The year the company was first established as a division of Jardine Matheson

$250 million

Amount JLT spent to purchase Towers Watson’s reinsurance brokerage business in 2013

10,777

The current number of JLT employees worldwide

135

The number of countries in which JLT currently offers risk management and employee benefit solutions

5

JLT’s rank among the world’s largest insurance brokers

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CA W

AVOID NASTY SURPRISES

When it comes to cyber risk our specialist insurance policies leave no stone unturned.

For organizations that rely on technology, cyber threats can emerge in many ways. For some the consequences can be devastating.

Our cyber product covers the liability which may arise, together with the policyholders own losses. And all in one affordable price.

So you and your clients can rely on Markel 100% – without a shadow of doubt.

www.markelinternational.ca/cybercover

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17/08/2016 2:22:11 AM 08/02/2016 16:33

SPECIAL PROMOTIONAL FEATURE

CROSS-BORDER POLICY

Help your clients do business south of the border With access to innovative cross-border insurance products, brokers have a good opportunity to provide essential solutions to Canadian domiciled companies with US risk exposures FOR CANADIAN-BASED organizations, attempting to expand operations south of the border is a real no-brainer. The US economy dwarfs that of Canada in many areas and organizations are under increasing pressure to look to the States to grow their business and remain competitive. But for these companies who do have US operations, getting comprehensive insurance for those exposures in the United States can be tricky.

A different country, a different set of laws and regulations and different types of insurance policies – all factors that create issues for Canadian-domiciled companies with US property and liability exposures.

“Getting the right coverage in place can be a challenge for Canadian-based companies who are expanding into the US,” explains

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Eric Scott, senior underwriter, casualty, at Markel. “If a Canadian company sets up a US entity or opens a physical location south of the border, it’s not uncommon to run into coverage and compliance issues if they only have a domestic Canadian policy.

When there is a legal US entity involved, it’s important that the Canadian broker has a solution for that.”

With more organizations expanding into the US, Canadian brokers are well placed to expand their book of business and attract a new set of prosperous clients. The most up-to-date cross-border products provide comprehensive and compliant insurance coverage for all 50 US states.

“A high amount of commercial brokers run into the situation where a small US office

or warehouse is opened and occasionally their incumbent just can’t handle the risk any more,” says Clive Fernandes, VP, central region and product line leader, CGL, at Markel. “We now have the ability to issue an admitted USA policy in support of the Canadian policy, which will cover the US entity and all of the US operations. It’s a real benefit for brokers to have access to this type of product.”

Markel Corporation, based out of Richmond, VA, is the parent company of Markel Canada and is issuing all US policies in support of Markel’s Canadian business.

US admitted forms also enable brokers to help their clients avoid tax implications and the benefit of financial protections, Fernandes says: “If the client only has a Canadian policy, and there was a claim in the US, the claim money is forced to travel back and forth between Canada and the US, which increases the tax requirements.

“If the broker sells the client a crossborder product, they have a US admitted policy and are fully compliant in the US, which eliminates the need for money being switched between the two countries. If a broker can set up a program like that for an insured, it is really to their benefit in terms of simplifying the claims handling process.”

A Canadian domiciled company that is named in a US lawsuit – but does not have a cross-border policy – is going to have to fall back on their domestic property and liability product for coverage. “Although coverage will be granted on the Canadian policy, the situation can get messy when there is no cross-border product that’s recognized by a US company,” Fernandes says. “As well as the tax implications, when there is no cross-border policy, it makes it much more difficult for brokers to service claims.”

For the cross-border policy to be deemed compliant, the Canadian broker has to appoint a US broker to the file. With most large Canadian brokerages having colleagues in the US and many smaller

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“ We can issue a USA policy in support of the Canadian policy. It’s a benefit for brokers to have access to this type of product” brokerages being part of a global network or having US partnerships, it’s rare for the Canadian broker to have difficulty finding someone who can act in this role. “All the Canadian broker has to do is provide the carrier with the US broker’s contact details. Generally, the US broker does need

to be directly involved with any further transaction,” Scott says. “The Canadian broker is still controlling everything and still dealing with the underwriting contact, so that relationship doesn’t change. The US licensed broker has to be on file simply for compliance purposes.”

For a broker who hasn’t worked with cross-border products in the past, Fernandes urges them to call a leading carrier to learn the necessary steps of transacting business effectively in the US: “By making that contact a broker can get informed on the intricacies and processes required to submit a cross-border policy.

“Brokers need to learn about enlisting a US-based broker and then sending a full underwriting submission. We pride ourselves on being experts in this area and encourage any brokers to give us a call.”

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FEATURES

COVER STORY: ELITE BROKERS

BROKERS 2016

FOR THE fourth consecutive year, Insurance Business Canada searched across the country for the top brokers in the Canadian insurance industry. Our survey pulled in entries from brokers coast to coast who are shattering goals year after year. While those with high numbers rose to the top of the list, there are many other merits that combine to make for an Elite Broker.

Methodology When it came to our ranking, we did not want to focus solely on executives from well-resourced brokerages; we also wanted to

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The numbers rolled in and we have unveiled the top 57 brokers leading the Canadian insurance market

reward local firms and niche brokers who are achieving big things in a wide industry. Our measures for success included: • Premium income • Number of policies written • Book of clients • Revenue per client and revenue per policy It was important for us to not only recognize those who pulled in the most gross income last year, we wanted to showcase top brokers by province, by largest book of business and those who wrote the most policies, as well as highlighting top brokers

with the highest average revenues per policy and per client.

A place on our Elite Brokers list is a clear recognition of each broker’s professional standing as one of the top in the market. A common theme that has echoed over the past few years that continues to ring true today is that without a strong support system and network of colleagues, our Elite Brokers would not have achieved the success they have today.

You may recognize a few familiar faces, as well as some fresh talent on our list, but each and every one crushed numbers last year to earn their place on the Elite Brokers list 2016.

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THE TOP 57 RANK

NAME

COMPANY

REVENUE

LOCATION

1

Michael Di Nardo

Oracle RMS

$3 million

Ontario

2

Wendy Wildeman

Rogers Insurance

$2.76 million

Alberta

3

Wayne LeGear

HUB International

$2.65 million

BC

4

Jackie Tchong

Sharp Insurance

$1.969 million

Alberta

5

Ragai (Ray) Botros

Sharp Insurance

$1.966 million

Alberta

MORE THAN $1 MILLION IN REVENUE RANK

NAME

COMPANY

LOCATION

6 7 8 9 10 11 12 13 14 15 16 17 18 19

Michelle Elliott Jason Yarmuch Gabe Dattadeen David Chiu Bryce Kumka Joe Palmer Nathan Klein Thomas Watson Michelle Topping Shelley Peterson Chris Mihalakakos Steve Hand Rob Cyr Corey Wilton

HUB International Blanket Insurance Rogers Insurance Rogers Insurance Rogers Insurance Palmer Atlantic Insurance Rogers Insurance Guardsman Insurance Services HUB International HUB International Jones DesLauriers Insurance Management Rogers Insurance Rogers Insurance Rogers Insurance

BC Alberta Alberta Alberta Alberta New Brunswick Alberta Ontario BC BC Ontario Alberta Alberta Alberta

20

Greg Grebinski

Rogers Insurance

Alberta

$700,000 TO $1 MILLION IN REVENUE RANK

NAME

COMPANY

LOCATION

21

Bob Shaw

Rogers Insurance

Alberta

22

Scott Irwin

Jones DesLauriers Insurance Management

Ontario

23

Marv Martin

Rogers Insurance

Alberta

24

Phaedra Andrusiak

HUB International

BC

25

Michael Murray

Rogers Insurance

Alberta

26

Brock Longworth

Cornerstone Insurance Services

SK

27

Brett Bingham

Rogers Insurance

Alberta

28

Mike O'Grady

O'Grady & Associates Insurance Services

Ontario

29

Mark Jackson

The Insurance Market

Ontario

Donna Barclay Joins The Guarantee as Chief Underwriting Officer, Property and Casualty Alister Campbell, President and CEO, The Guarantee Company of North America (The Guarantee) is pleased to announce that Donna Barclay has been appointed as Chief Underwriting Officer, Property and Casualty – effective July 25, 2016. Donna will be responsible for ensuring the company has compelling underwriting solutions to meet the complex and evolving needs of The Guarantee’s property and casualty clients across all our target customer segments.

Working closely with the Vice Presidents of each P&C line of business, she will ensure the development and implementation of operational standards in collaboration with the Chief Risk Officer. She will also provide technical underwriting leadership, support and authority to The Guarantee’s P&C underwriting teams, ensuring the successful achievement of key corporate strategies for profitable growth.

Donna brings to The Guarantee 30 years of property and casualty insurance experience, most recently providing senior leadership to casualty insurance teams at several major global insurers. She holds a Bachelor of Arts in Economics from the University of Western Ontario, a Diplôme D’Études Collégiales from Marianopolis College, Montreal and an A.I.I.C. designation from the Insurance Institute of Canada.

About The Guarantee The Guarantee Company of North America is a leader in specialty insurance and surety within the North American marketplace. We offer in-depth knowledge and expertise in niche segments, including the surety industry, corporate insurance, transportation industry, credit, and customized personal insurance. For more information, visit theguarantee.com

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FEATURES

COVER STORY: ELITE BROKERS $300,000 TO $700,000 IN REVENUE RANK

NAME

COMPANY

LOCATION

CRUNCHING THE NUMBERS

30

Austen Lillies

Rogers Insurance

Alberta

TOP 5

31

Adam Mitchell

Mitchell & Whale Insurance Brokers

Ontario

Total policies: 4,314

32

Carol Mills

HUB International

BC

Total clients: 1,418

33

Steve Beemish

HUB International

BC

34

Brent Lineker

HUB International

BC

35

Linda Colgan

Bryson & Associates Insurance Brokers

Ontario

TOP 10

36

Tony Thompson

HUB International

BC

Total policies: 10,608

37

Kevin Lea

Rogers Insurance

Alberta

Total clients: 5,593

38

Don Hatton

Hatton Insurance Agency

BC

39

Michael King

Capri Insurance Services Ltd

Ontario

40

Michael Abraham

Bedrock Insurance Brokers

Ontario

TOP 30

41

Neil Bryson

Bryson and Associates Insurance

Ontario

Total policies: 23,618

42

Debbie Arnold

Sound Insurance Services

Ontario

Total clients: 13,800

43

Rob Lightfoot

HUB International

BC

44

Marsha Jones Dooley

Jones-Dooley Insurance Brokers

Ontario

45

Derek May

HUB International

BC

46

Brent Pavan

HUB International

BC

47

Tereen Mowrey

Henderson Insurance

SK

Average revenue: $2.46 million Total revenue: $12.35 million

Average revenue: $2.07 million Total revenue: $20.75 million

Average revenue: $1.4 million Total revenue: $42.03 million

TOP 57 Total policies: 39,232 Total clients: 34,421 Average revenue: $930,712 Total revenue: $53.05 million

$100,000 TO $300,000 IN REVENUE RANK

28

NAME

COMPANY

LOCATION

48

Luke Horcica

Lloyd Sadd Insurance Brokers

Alberta

49

Cole Leitch

Avant Insurance Brokers

Manitoba

50

Javaid Murad

RBC Insurance

Alberta

51

Mohamed Adam

Sharp Insurance

Alberta

52

Kathleen Kolt

HUB International

Manitoba

53

Steve Woolridge

Sound Insurance Services

Ontario

54

Raheel Shamim

National Truck League

Ontario

55

Trinh Tran

My Insurance Broker Corp

Ontario

56

Sandi Pires

Jones DesLauriers Insurance Management

Ontario

57

Mewa Boparai

My Insurance Broker Corp

Ontario

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ELITE BROKERS BY PROVINCE ALBERTA Number of Elite Brokers: 21 Average revenue: $1.18 million

MANITOBA Number of Elite Brokers: 2 Average revenue: $228,221

NEW BRUNSWICK Number of Elite Brokers: 1 Average revenue: $1.43 million ONTARIO Number of Elite Brokers: 18 Average revenue: $699,841

BRITISH COLUMBIA Number of Elite Brokers: 13 Average revenue: $958,593

SASKATCHEWAN Number of Elite Brokers: 2 Average revenue: $620,249

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FEATURES

COVER STORY: ELITE BROKERS Even though they may not have been at the top of our list, these brokers are some of the best in their regions

SASKATCHEWAN

NEW BRUNSWICK

ALBERTA

TEREEN MOWREY

JOE PALMER

MOHAMED ADAM

Account executive, corporate services

President and CEO

Account manager

Palmer Atlantic Insurance

Sharp Insurance

Once again, Joe Palmer took the top spot this year for New Brunswick, while also surpassing his 2014 revenue in 2015. Since 1980, his company, Palmer Atlantic Insurance, has specialized in long-haul trucking insurance and is one of the more prominent truck brokers in Canada.

For Palmer, a defining characteristic of an elite broker is someone who provides value to the customers. “A real differentiator is being able to add true value to customers,” he says. “Elite brokers are always learning and expanding their knowledge base and abilities. You need to be able to adapt to different personality types when dealing with different clients and companies and having the ability to develop rapport and trust.”

Account manager at Sharp Insurance, Mohamed (Moe) Adam specializes in personal lines new accounts, but when he is not at the office, Adam volunteers his time helping immigrants and refugees settle in Canada. “[Volunteering] gives me positive energy, which helps me to focus more on my work,” he says.

Transferring that energy to work has paid off, as Adam has earned a spot for the first time on our Elite Brokers list.

“An elite broker is an individual who is committed to excellence in everything they do. In order to be successful in any sales position, you have to really believe in the products you are selling and you absolutely must be passionate about what you do,” he says.

Henderson Insurance

Since joining Henderson Insurance a decade ago, Tereen Mowrey has advanced quickly through the company’s small business and corporate commercial divisions to arrive where she is today, as account executive in Henderson’s corporate services division, where she specializes in non-profit directors’, officers’ and board governance insurance.

She credits her success as a broker to her passion and belief in what she does, adding that the passion then translates into confidence in her clients that, as their broker, she can help improve their business.

“Clients can sense if you are passionate about what you do and believe in the product you’re selling,” she says.

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THE BIGGEST BOOKS Elite Brokers with the highest number of clients in 2015: RANK

NAME

COMPANY

CLIENTS

1

Michael King

Capri Insurance Services Ltd

10,000

2

Debbie Arnold

Sound Insurance Services

3,200

3

Jason Yarmuch

Blanket Insurance

2,400

4

Brock Longworth

Cornerstone Insurance Services

2,360

5

Mike O'Grady

O'Grady & Associates Insurance Services

2,105

Our Elite Brokers garnered impressive books of business in 2015. The top five brokers in terms of book of business totalled 20,069 clients, crushing last year’s total of 13,302 clients among the top five in this list.

Michael King, partner at Capri Insurance Services, topped our list this year with an astounding 10,000 clients in his book, in addition to several member association programs. As a niche broker for Canada’s equine industry, King truly understands the importance of developing a specialty in today’s market. “In my view, an elite broker is one who takes the work we do as a profession very seriously, carves out a niche of expertise and shares the knowledge so that consumers continue to see the value in our service,” he says.

Open minds.

Understand Risk.

“In understanding and evaluating risk, we focus on the clients’ needs, be it developing programs for associations or individual risk placements. In professional liability, a thorough understanding of the risk and scope of services is imperative.

We collaborate with our broker partners to evaluate their clients’ specific coverage needs. We think strategically and strive to be innovative, flexible and solutions focused, making the product fit the client, not the client fitting the product. We endeavour to always be flexible and agile in our thinking and constantly evolve our products to meet the ever changing needs of the marketplace, to be the bespoke provider of innovative coverage solutions.“ Jon Cooper Underwriting Specialist, Professional Liability Direct 416-673-5094 jon.cooper@sovgen.com sovereigngeneral.com

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FEATURES

COVER STORY: ELITE BROKERS WRITE ON THE MONEY Elite Brokers with the highest number of policies written in 2015: RANK

NAME

COMPANY

CLIENTS

1

Jason Yarmuch

Blanket Insurance

4,800

2

Mike O'Grady

O'Grady & Associates Insurance Services

3,947

3

Brock Longworth

Cornerstone Insurance Services

3,040

4

Adam Mitchell

Mitchell & Whale Insurance Brokers

2,560

5

Michael King

Capri Insurance Services Ltd

2,500

You may recognize two brokers in this year’s list of brokers with the highest number of policies written in 2015.

Mike O’Grady, owner at O’Grady & Associates Insurance Services, and Brock Longworth, senior account executive at Cornerstone Insurance Services, both made our top five list last year and both

surpassed their 2014 numbers by 447 and 496, respectively. President at Mitchell & Whale Insurance Brokers, Adam Mitchell wrote over 2,500 policies in 2015. For him, to be an elite broker you must be “willing to challenge the status quo and work relentlessly to improve the client experience and better the broker channel”.

WHAT DOES THE AVERAGE ELITE BROKER LOOK LIKE? This year, we have more Elite Brokers than ever on our list and we wanted to dissect the basics to see what the ‘average’ Canadian Elite Broker looks like. Our Elite Brokers list this year consists of 77% male and 23% female brokers. Together, they averaged 604 clients and 688 policies written in 2015. Also, compared to last year’s top 30 Elite Brokers, the top 30 in our list of 57 for 2016 beat out last year’s revenue total by $10.33 million – a 32% increase!

MALE

FEMALE

77%

23%

604 AVERAGE NUMBER OF CLIENTS

DO YOU HAVE WHAT IT TAKES? Our Elite Brokers come from all walks of life, but when speaking with them there were a few common strategies for success that they all shared: Customer service

An unwavering commitment to customer service; from the initial meeting to the follow-up and through processing a claim.

Relationships

Nurturing relationships with clients, colleagues, insurers and other brokers is vital for the longevity and success of those relationships.

Personal connections In the age of technology,

personal touch is often lost through emails and texts. Making a genuine connection by picking up the phone or heading out to an in-person meeting is a standout in today’s market.

Internal teamwork

Most brokers can agree that a successful career would be impossible without the support of a qualified team.

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688

32%

AVERAGE NUMBER OF POLICIES WRITTEN

INCREASE IN REVENUE TOTALS AMONG TOP 30 COMPARED TO 2015 TOP 30 ELITE BROKERS

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WHAT MAKES OUR

SURETY SOLUTIONS UNIQUE? OUR

SPECIALISTS KNOW...

You can differentiate yourself in the market with The Guarantee.

Contract Surety Commercial Surety Developer Surety While our 144-year history is firmly rooted in Canadian tradition, our future is focused on innovation leadership. Our committed and experienced underwriting team collaborates with our broker and client partners to tailor surety solutions that are flexible and responsive for evolving business needs and an ever-changing marketplace.

Find out how we are different. theguarantee.com

Excellence, Expertise, Experience ‌ Every time

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FEATURES

COVER STORY: ELITE BROKERS TOP 10 BROKERS BY AVERAGE REVENUE PER CLIENT We wanted to honour those brokers who generated the most revenue per client in 2015. Defending her position in the number one spot, Wendy Wildeman averaged $43,161 per client, while her Rogers Insurance colleague Austen Lillies came in at number two, with $38,617 per client.

In total, the top performers in this category posted an average of $22,747 per client in 2015.

RANK NAME

FAST FACT

The top five brokers in terms of book of business in 2015 totalled 20,069 clients, crushing last year’s total of 13,302 clients

AVERAGE REVENUE PER CLIENT

1

Wendy Wildeman

Rogers Insurance

$43,161

2

Austen Lillies

Rogers Insurance

$38,617

3

Michael Di Nardo

Oracle RMS

$33,333

4

Neil Bryson

Bryson and Associates Insurance

$17,386

5

Natan Klein

Rogers Insurance

$16,760

6

Gabe Dattadeen

Rogers Insurance

$16,682

7

Corey Wilton

Rogers Insurance

$16,154

8

Joe Palmer

Palmer Atlantic Insurance

$15,597

9

Kathleen Kolt

HUB International

$15,537

10

David Chiu

Rogers Insurance

$14,243

TOP 10 BROKERS BY AVERAGE REVENUE PER POLICY Coming in at the top of this list of highest average revenue per policy, Michael Di Nardo of Oracle RMS boasted an average revenue of $18,072 per policy. Guardsman Insurance Services’ Thomas Watson came in second, with $16,030 per policy. Overall, everyone in the top 10 racked up an average of $8,844 in revenue per policy written in 2015.

RANK NAME

34

COMPANY

COMPANY

AVERAGE REVENUE PER POLICY

1

Michael Di Nardo

Oracle RMS

$18,072

2

Thomas Watson

Guardsman Insurance Services

$16,030

3

Austen Lillies

Rogers Insurance

$8,871

4

Bryce Kumka

Rogers Insurance

$8,113

5

Rob Cyr

Rogers Insurance

$7,230

6

Javaid Murad

RBC Insurance

$6,539

7

Brett Bingham

Rogers Insurance

$6,450

8

Kathleen Kolt

HUB International

$6,429

9

Joe Palmer

Palmer Atlantic Insurance

$5,415

10

Steve Hand

Rogers Insurance

$5,291

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THE TOP 5 Welcome to 2016’s top five Elite Brokers. You will be introduced to four new faces and one return winner.

Representing the best the industry has to offer, these five insurance pros totaled 4,314 policies written, 1,418 clients and a combined revenue of $12.35 million.

Hailing from Alberta, British Columbia and Ontario, newcomer Michael Di Nardo took the top spot, while familiar face Wendy Wildeman takes the second spot for the second year in a row.

Rounding out the top five, Hub International’s Wayne LeGear came in at third, while Sharp Insurance finished off the list with Jackie Tchong and Ragai Botros, taking fourth and fifth place respectively.

Together, these five impressive insurance brokers averaged a remarkable $2.46 million in revenue for 2015.

5

RAGAI (RAY) BOTROS

Account manager SHARP INSURANCE CALGARY

Opening the top five is Ragai (Ray) Botros of Sharp Insurance. In just his two and a half years of experience in the industry, Botros has already surpassed the $1 million revenue mark – and then some. Leveraging his background in computer programming and accounting, Botros has helped streamline the processes and organization for his team at Sharp Insurance.

“I am really proud of what the sales team and I were able to accomplish” “For me, 2015 was a great year as I had gleaned eight months of sales experience that previous year, which gave me the knowledge base and experience I needed to sell more polices effectively,” he says. “I am really proud of what the sales team and I were able to accomplish in 2015, which was breaking sales records across the board.”

4

JACKIE TCHONG

Sales team lead SHARP INSURANCE CALGARY

Last year was a great one for Sharp Insurance’s Jackie Tchong. He closed out the year with over $1.9 million in revenue across 1991 policies written for over 900 clients. He also achieved the top sales of the year award at Sharp, after only starting with the company in mid-2014. As sales team lead for the Calgarybased insurance broker, Tchong specializes in personal insurance, while also working in small business commercial lines.

For Tchong, his secret to success is simply helping others succeed: “I firmly believe that when you are working in a team environment, the key to success is helping others succeed. It feels great when I can assist others in any way.”

As for what he thinks makes an elite broker, Tchong believes that a broker needs to look beyond the policy. “My opinion on what makes an elite broker is a broker who understands that it takes more than just simply selling a policy to a client, but managing the account once coverage is bound. Although it is not an easy task, it is very rewarding when you are able to retain the business.”

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FEATURES

COVER STORY: ELITE BROKERS

3

WAYNE LEGEAR

Senior vice president, account executive HUB INTERNATIONAL LANGLEY, BC

A veteran of the insurance industry with over 30 years’ experience, commercial and transportation insurance specialist Wayne LeGear dedicates his time at HUB International to the company’s auto-dealer program. His dedication has paid off – LeGear ended 2015 with over $2.65 million in revenue.

However, he is no stranger to success. For the past six years in a row, LeGear has been a recipient of the HUB SHARP Award at the platinum level, making him a sales performance legend within the entire HUB organization. That success has been a result of his continued commitment to leadership qualities, as well as his loyalty and understanding of aligning goals with clients and providing numerous stakeholders with the care and attention they deserve.

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2

WENDY WILDEMAN Senior account executive ROGERS INSURANCE CALGARY

You may recognize Wendy Wildeman from last year’s top five and, once again, she has made it on our list with over $2.7 million in revenue for 2015. At Rogers Insurance, Wildeman specializes in real estate insurance, from development and construction through to commercial and condominium management groups.

She started as a receptionist 40 years ago, and her perseverance and hard work have led her to where she is today – an IBC Elite Broker.

“I have been blessed with strong mentorship over the years.

Combine that with hard work and a bit of good luck, and I would suggest that is a big part of my being an elite broker,” she says. Paying it forward to the next generation, Wildeman works to mentor up-andcoming talent within the Rogers Insurance team.

www.insurancebusiness.ca

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FEATURES

COVER STORY: ELITE BROKERS WHAT MAKES AN ELITE BROKER? We asked our brokers to share their thoughts on what makes an elite broker in today’s market. Here’s what some had to say: “Clients are looking for experts and it’s difficult to be a jack of all trades.

Elite brokers need to decide what they do best and focus on that.”

“It takes dedication, drive and knowledge. An elite broker is a broker who is not just in this industry for the nine to five. They go above and beyond to meet their clients’ needs while looking for and eliminating gaps in coverage.”

1

MICHAEL DI NARDO President ORACLE RMS CONCORD, ONTARIO

Michael Di Nardo of Oracle RMS tops this year’s Elite Brokers list and it is no surprise, as he had an impressive 2015, with $3 million in revenue, averaging over $33,000 per client.

What is his secret to success? Faith and family. “[The] two secrets to my success are attributed to faith and family. First, my late dad was an insurance broker. He taught me the business, discipline and how to be a humble servant to clients. Today, putting my faith and family first are important for laying the foundation of a sound and successful brokerage. Second, family also means having great colleagues at Oracle RMS complementing one another to provide the best possible service to our clients,” he says.

Not only was 2015 huge for Di Nardo, but

38

it was also an excellent year for his brokerage.

Oracle RMS experienced its biggest year to date in 2015 and relocated to Concord in Ontario to further grow its business. “Being a part of the transition of hiring new producers as well as making our team grow in the Oracle RMS office was exciting,” he says.

Offering his perspective on the qualities of an elite broker, Di Nardo explains that to find success, a broker should never “gird up their loins” but should instead view their work as a vocation, not a job. He adds that preparing and strengthening oneself through product knowledge and staying current with economy trends will allow one to provide the best service to clients. “An elite insurance broker will have an excellent relationship with

“I believe an elite broker needs to be sector-focused to understand his/her client’s industry, as well as his/her own business.

Understanding their business, industry trends, and challenges ultimately allows you to [give] the best advice and anticipate the needs of your client.” clients by having a genuine interest in their business, have a solid connection with underwriters and colleagues who are willing to strengthen your team.”

Despite his success, Di Nardo still finds time to volunteer his time to local organizations and mentor new talent at Oracle RMS. “My passions in the office are helping and watching my colleagues succeed. I particularly enjoy mentoring our new young brokers to our team. Watching my fellow colleagues achieve their goals in becoming successful is exciting and rewarding,” he says.

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17/08/2016 2:24:57 AM

SPECIAL PROMOTIONAL FEATURE

ARTHUR J. GALLAGHER

Major player rebrands its Canadian network In a move that is going to make the whole industry take notice, the world’s fourth-largest insurance broker has rebranded its network of regional insurance brokers in Canada IN A MAJOR milestone for the organization and big news for the whole Canadian insurance industry, Arthur J. Gallagher & Co. has announced the rebranding of the Noraxis Group of insurance brokers. The firm will now be known as Arthur J. Gallagher and will operate under a new visual identity and logo for all Canadian operations. Using the tagline ‘Globally Known, Locally Grown’, the new identity celebrates the company’s rich Canadian heritage – some of the acquired firms date as far back as 1890 – while communicating the strength of the Arthur J. Gallagher brand globally.

The announcement follows a two-year transformation program to integrate the group of businesses, and the firm believes the move will enable it to offer enhanced products and services to its clients across the country.

“Operating and doing business under the same brand is a really important step for our 800 professionals in Canada,” said the CEO of Arthur J. Gallagher Canada, Ken Keenan. “It also sends a clear message to our customers and competitors that we are beginning to harness the strength of being part of one of the world’s largest insurance brokers. We are playing to that advantage at every opportunity to enhance the experience for our customers – wherever they are and whatever their risk might be. We have expanded from a niche broker with eight offices into an organization that has 25 offices coast to coast, as part of a global company with client capabilities in 150 countries.”

As discovered in the research phase of the rebranding process, Arthur J. Gallagher’s

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www.insurancebusiness.ca

orientation around a core value system of expertise and service is well aligned with what its Canadian customers value most highly.

“When we asked our clients their reasons for doing business with us, time and again we heard that the relationships they have built with our teams are founded on trust, integrity, professionalism and doing what’s right,” says the chief sales and marketing officer of Arthur J. Gallagher Canada, Vishal Kundi, “which aligns perfectly with Gallagher’s own commitment to the highest levels of ethical standards and professionalism.”

Kundi believes that companies which rush to rebrand after an acquisition often fail to listen to the feelings and ideas that clients and staff have about the new brand.

“The regrettable result is that both the acquiring and acquired brands suffer due to the confusion that comes from a lack of brand alignment,” says Kundi. “Therefore, we treated employee and client engagement in this project as critical, and we were sure to take sufficient time to ensure the Gallagher brand could mature across Canada at a pace these all-important stakeholders were comfortable with.”

A number of Arthur J. Gallagher’s clients have had long-standing relationships with the acquired regional brokers for many years, so giving them the opportunity to get familiar with the name and brand was a top priority.

“Our major challenge for this rebranding initiative was our lack of brand recognition in Canada and the strong loyalty our clients and employees felt to the regional brokerages,” Kundi says.

Ken Keenan

Former Noraxis Group brokers involved in the 27 June rebrand included Amherst Commercial Insurance, Bell & Grant Insurance, the CG&B Group, Crain & Schooley Commercial Insurance, Fraser & Hoyt, Ranger Insurance, Renfrew Insurance and Stevenson & Hunt Insurance Brokers.

Kundi says: “We spent a great deal of time and effort understanding what’s important to our teammates and Canadian business clients to ensure that how we positioned our brand in Canada reinforced that our values and commitment to local communities as well as the service we provided was not changing.”

SPECIAL PROMOTIONAL FEATURE

CYBER SECURITY

Keep your clients safe in cyberspace Incidents of cybercrime are on the rise and for an affected organization the consequences can be devastating. We spoke to two cyber specialists from Sovereign General to find out how brokers can help their clients in this rapidly evolving space To which forms of cybercrime are Canadians falling victim?

Ivan Au: The most common threats we see continue to be malware and viruses.

Businesses understand the need to protect internal systems using network security, but phishing attacks often target the individual first through legitimate business processes to evade protection software. Ransomware also continues to be a threat, since it is a simple moneymaker for criminals and is difficult to prosecute. A well-structured cyber policy can help businesses respond intelligently to these threats.

What impact can cybercrime have on an individual or business?

Melinda Parker Thompson: For many industries cybercrime may not register as significant, as the cause of loss is intangible.

The reality is that cybercrime can be financially devastating as well as use up one’s most important resource – time. For smaller businesses, they are sometimes unable to fully recover.

How do cybercriminals go about hacking into systems and computers?

IA: Cybercriminals have a variety of different tools, ranging from botnets and DoS attacks, to social engineering. There is no uniform way to prevent a cybercriminal from accessing your system, which is a scary

prospect. Prevention tools should only be one element in managing cyber risk. A cyber insurance policy and incident response plan should also be central to an enterprise cyber management strategy.

What can brokers do to sell cyber products in the most effective way?

MPT: Hacking generally makes up about half of all privacy breaches. Human error is the second largest factor. Turning the discussion from “I won’t be hacked” to general preparedness in the event of a system or privacy failure can reveal risk management needs, which a cyber policy is equipped to meet adequately.

Millennials are the most susceptible to cybercrime – how can brokers target this demographic?

IA: Millennials tend to prefer quick, insightful and engaging content in order to gain interest, but cybercrime can equally affect all generations. Millennials may seemingly be targeted more due to their comfort with technology.

What tips would you give to a broker who wants to expand their business in this area?

MPT: Understand that insureds have many reasons to think a privacy breach will never impact them financially, especially because

Melinda Parker Thompson and Ivan Au

they do not see their industry or small to midsize companies being affected in the news headlines. However, it is important to realize that this simply means these breaches are not being reported. Bill S-4 introduced reporting requirements as well as fines and penalties that will provide improved statistics on privacy incidents in Canada. Also, trusted cyber experts can help think through each industry’s unique cyber exposures when reviewing your client’s insurance program.

Highlighting ambiguous policy language in existing policies and outlining how a cyber policy fills those gaps justifies the need to budget money for a stand-alone cyber policy.

What are the benefits for a broker who is able to offer comprehensive cyber products?

IA: Brokers who understand cyber products currently offered, as well as insights into the evolution of the market, will be invaluable to clients. Clients need to rely on trusted brokers to identify new products to mitigate network security risks, which are growing exposures in every industry. In the event of a breach, cyber policies offer a risk-management tool for insureds so they can continue to focus on their business. The cyber insurance space is growing in momentum; we have seen cyber insurance trend from insurers actively selling it, to brokers requesting it, to insureds asking their brokers to provide coverage options.

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PEOPLE

BROKER INSIGHT

InsureBC group Regional manager Allison Bergen talks with IBC about the distinctive benefits of being part of one of Canada’s largest broker networks

IBC: Can you tell us a little bit about InsureBC group?

Allison Bergen: InsureBC is one of the largest insurance groups in British Columbia, with nearly 80 divisions across the province. We have been insuring our clientele for 25 years and we are dedicated to continuing the improvement of our markets, products and services in order to be the broker of choice. Since May 2014, we are the second largest property and casualty broker in BC and we also have our own managing general agent responsible for specialty programs and hard-to-place business, in addition to assisting with complex cases.

IBC: What is InsureBC group doing to attract and grow new talent?

AB: We participate with a local university that has an insurance program and we welcome some practicum students, which has led to some jobs for them. I, personally, teach the CIP course at the Insurance Institute of Canada, so I’m directly involved in the education and career development of some of those students.

We have an education policy within our company that encourages our current staff to further their studies and allows growth of our already outstanding talent within. Additionally, we have various training symposiums and programs that we put on for our employees so they keep up-to-date with new products and risks.

IBC: How do you remain efficient when managing multiple offices?

AB: We have a wonderful team of branch

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managers and supervisors who keep these offices running smoothly and we all work together as a team. Some functions are centralized, but the managers have autonomy and, therefore, we don’t overwhelm them with unnecessary procedures. We have great teams that support all the individual branches, including separate payroll and HR divisions, an IT division, an underwriting division, which develops programs and assists in placing accounts, and accounting and finance divisions that enable our offices to focus on clients and not these tasks.

Most importantly, when thinking about our clients, we have a claims division that takes care of our clients’ needs, while keeping track of contracts and contacts within our industry of adjusters and vendors partners – paying particular attention to ensuring our clients and insurance companies are all treated fairly. They are mandated to provide excellent service to all our customers and to do so at a fair and equitable price.

IBC: How has InsureBC been able to build its various lines of specialty?

AB: As the group grew, we were able to develop

some unique products that helped meet the needs of our clients and the needs of our communities. Even though we have a focus on small-town agencies, we realized we needed to provide those areas with all the different types of coverage necessary and available.

IBC: Why does InsureBC have a focus on small-town agencies?

AB: We are hugely popular in Vancouver but we really enjoy the smaller community feel.

When we acquire agencies in those communities, we truly allow the managers to remain autonomous so the clients don’t feel as if their brokers have been taken over by a big business that might not care for their needs.

What this really does is it allows the community that is already working with that broker to get the best of both worlds – they get to continue to work with the same people, as we keep the same staff at each agency, and being a part of our network widens the amount of programs and facilities offered to those clients.

Also, the agencies themselves gain access to the departments I mentioned earlier, which they may not have had before. InsureBC group really helps them stand on their own while

ABOUT INSUREBC GROUP InsureBC was established in 1988 by owner Jack Meier to allow businesses to build strong individual operations while being part of a larger group. It is a group of general insurance brokerages whose oldest members have been in insurance since 1928. Today, the group represents more than 80 offices focused in the Lower Mainland, Sunshine Coast and Interior of British Columbia, with operations in Alberta, Ontario, the US and Europe.

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FAST FACTS BUSINESS BREAKDOWN:

27% 40%

Auto Personal lines

33%

Commercial lines

TIMELINE:

Present

Over 80 offices nationally and internationally with a total staff of over 800, + 350 producers

2014

Expansion into Europe with the acquisition of two offices in the Netherlands, followed by growth into Ontario

“We really enjoy the community feel. Clients don’t feel as if their brokers have been taken over by a big business that might not care” enabling them to compete in the market against larger agencies.

who has seen that risk, or something similar, and knows where it might fit in a policy.

IBC: How does being part of a network benefit business?

IBC: What sets InsureBC group apart from other networks?

AB: It has almost guaranteed that someone in the group can service all of a client’s needs; whether they have a condo in Europe or some vehicles in the US, our network can make almost anything happen. It also helps because everyone has serviced different risks throughout their careers. If a client has a request that is out of the ordinary, there is usually another person within our network

AB: We have a team that wants to help and is up for a challenge when it comes to complex risks or risks everyone else has declined. Our various specialized departments are present to primarily provide support to our brokers and help educate them. Lastly, it is important that we have a small-town feeling for our clients – we want to be part of the communities, not just a large branded brokerage.

2013

InsureBC grows footprint into Alberta

2012

The group expands into the US with the acquisition of Vista International Insurance Brokers in Petaluma, CA

2005

InsureBC triples in size within a decade with 48 agencies

1995

15 member agencies by the mid-1990s

1988

InsureBC group is established

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FEATURES

CONFERENCE

The blue ribbon Good news for the emerging field of flood products: the worst is yet to come

NEW INSURANCE products for the Canadian market were on the agenda at the recent Insurance Business Canada’s Flood & Risk Insurance Conference that saw the country’s top experts in the field of flood and overland water insurance gather to examine how government agencies, the scientific community, insurers and other key stakeholders are collaborating to manage all aspects of flood risk, and –

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crucially – raise consumer awareness on this issue.

The conference, which included speakers from such big names as Intact Insurance, Economical Insurance, The Co-operators, and Aviva Canada, addressed the current and future state of the Canadian f lood landscape covering such diverse topics as flood terminology, the differences between various flood models, and the variations in

insurance products currently available.

Insurance companies were offered insight into Canadian climate change and flood outlook; flood mitigation strategies by municipal and federal government; and in an event highlight, a live video presentation from the Insurance Council of Australia on f lood risk and insurance coverage in the country reputed to have the best flood insurance coverage model in the world.

The conference kicked off with a keynote presentation by Blair Feltmate, Head of Intact’s Centre for Climate Adaptation. He pointed out that in regards to flood risk and climate change in Canada, the worst is yet to come. We as an industry have to collaborate, he said, in order to prepare for the new normal. Feltmate also addressed the measures that should be taken to better prepare for the future, which are currently being neglected. The second session discussed preventative f lood mitigation measures being put in place by Ontario municipalities. Shawna Peddle gave a sneak preview of the most recent installment of the f lood-preparedness study focussing on Canadian cities’ readiness commissioned by Partners for Action at the University of Waterloo.

Real-world examples followed, as representatives of the City of Mississauga and the City of Markham discussed their flood mitigation methods.

“That was very informative,” said Nada Elbard after the session, “not many people realize the amount of work being done!”

Cathr y n Yo r k- S l o a n , nationa l resource manager, Personal Insurance at BrokerLink agreed, saying it was “Really interesting to hear their views on water damage; the problem is population growth versus climate change.” The national resource manager, Personal Insurance at

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BrokerLink went on to say that the session provided “very, very good information for us.”

The third session was presented by Swiss Re‘s Head of Underwriting, Property & Casualty for Canada, Christoph Oehy, who talked about various types of floods,

“It was quite a blue ribbon event for the P&C industry and associated stakeholders [with] opportunities for partnering with flood analysts, municipalities, and federal emergency leadership” their definitions, the appropriate terminology to apply in each case and – crucially – what insurers launching new flood products in Canada need to consider.

The next session addressed various f lood mapping and modeling solutions currently available in Canada, and won approval from attendee Helen Smith of JBA Risk Management, who said the session provided a “very helpful and necessary discussion to highlight the differences between flood maps and models. The session was informative and balanced with a sensible mix of map/model providers.”

One session, presented by Public Safety Canada, focussed on the manner in which the federal government is addressing climate change and flood risk.

“It was reassuring to have a Canadian government representative present,” said Helen Smith of JBA Risk Management, “to emphasize that flood mitigation is being considered at all levels and not just by indi-

AVIVA: DRIVING AWARENESS, PIONEERING WATER PROTECTION Aviva is proud to be the first insurer to offer overland water protection in Canada through its residential insurance policies last year. Aviva’s Overland Water product provides a simple, straightforward solution for Canadians and offers easy-tounderstand coverage.

Educating both the Canadian public and the broker network about flood insurance is of utmost importance to Aviva, title sponsor of Insurance Business Canada’s recent Flood Risk & Insurance Conference.

It is an area rife with misunderstanding: as Maz Moini, Vice President of Commercial Lines & Reinsurance at Aviva, has stated, consumers often operate under the belief that they’re already covered by their homeowner’s policy when in fact most are not.

Some surprising numbers turned up by an Aviva-commissioned survey done last year, reveal the extent of the confusion: 43% of polled Canadians did not know if their home insurance would cover them for any overland water damage.

37% incorrectly stated that they were, indeed, covered.

50% of homeowners were confused as to what would be covered in the case of sewer back-up.

Moini emphasized the need for industry action in light of these figures, saying, “As an

vidual municipalities.”

The last session, presented via a web video from Australia met with perhaps the best reception of the day.

“I change -- this session was very valuable -- it was extremely interesting to hear about flood mapping and insurance from a different perspective, said Smith.

“The presentation was very well done with interesting slides, informative graphics and images and an engaging presenter change -- a nice way to end the day!” Or as Sangeeta Chopra-Charron, advisory board member, RainGrid Inc put it: “Excellent.

Canada can learn from the Australian experience.”

Chopra-Charron went on to say “[The conference] was quite a blue ribbon event

industry, we must do a better job of explaining what is covered for water damage in order to educate consumers.”

A key element of Aviva’s marketing and communications [is] a strong emphasis on customer education.

The insurer’s ongoing commitment to increasing consumer awareness of changing weather patterns and the growing frequency of weather-related losses, as well as disseminating risk mitigation tactics and clarifying the extent of coverage in existing policies, dovetails into the digital assets it has developed in the space.

The Plan and Protect mobile app, an industry first, was developed in partnership with the Institute for Catastrophic Loss Reduction to help drive awareness among the public while also benefiting disaster-affected communities (each download provides a donation for disaster relief to the Canadian Red Cross). The company’s award-winning microsite, www.avivawaterprotection.ca, provides another means of driving consumer awareness, while social media networks have been utilized to provide short video tips to consumers on how they might protect their property from severe weather damage.

On the industry side, Aviva has trained brokers on its Overland Water product, so they can give the best advice to their customers.

“As our insurance solutions evolve and innovate to meet the needs of customers, our brokers are in-the-know in order to effectively and confidently communicate insurance products to customers.”

for the P&C industry and associated stakeholders discussing climate adaptation, flood products, and opportunities for partnering with flood analysts, municipalities, and federal emergency leadership.”

If you missed June’s Flood R isk Masterclass and would like to learn more about the subject or what the speakers had to say, please click ibmasterclass.ca to see speaker presentations.

The flood insurance space is constantly evolving and developing – the products and services of the last year alone demonstrate new ground being broken – Insurance Business Canada is committed to providing ongoing news and content on the subject, as well as presenting the annual flood risk event.

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SPECIAL PROMOTIONAL FEATURE

DIGITAL SOLUTIONS

How CCM software is improving customer experience Cutting-edge Customer Communications Management software is helping brokers streamline communication and administrative processes and focus on what matters most: the client THE WAY that people are buying insurance is changing. The modern client has access to so much information that by the time they first engage with a broker or agent, they’ve already developed a good grasp of the products on offer. This changing consumer attitude is further compounded by the fact that millennials are quickly becoming a majority in the market as home and business owners. The way they want to communicate with organizations and then buy products differs vastly from previous generations.

“Those brokers and agents who are innovating and investing in Customer Communications Management [CCM] software are the ones who are going to pick up the new market of clients, who are buying and making decisions differently,” explains David Squibb, chief sales and marketing officer at Xpertdoc. “Insurance carriers and brokers who continue to do things in more traditional ways are going to struggle.”

Modern CCM software is enabling carriers, brokers and agents to drastically improve customer experience with streamlined and automated communication, document creation and management processes. The modern consumer is more demanding and the reality is that people are no longer prepared to invest time in purchasing insurance products. They want, and expect, a buying solution and process that is quick and

46

simple, and they want to be able to get the information they need when they need it.

“These improved communication channels can also give brokers a better chance to upsell, as well as drive client loyalty,” Squibb says. “If a client can’t interact with a broker in a way that’s meaningful to them, their loyalty may diminish and they will look for a provider who will work with them in a way that suits their needs.”

Unlike 20 or 30 years ago, a client is unlikely to remain loyal to a broker or agent purely based on the past relationship if they’re not able to offer up-to-date communication channels and buying processes.

Innovative brokers, agents and carriers who offer clients easy-to-navigate products at competitive prices are simply more attractive to today’s client.

“The rate of digitalization and innovation in this space is mind-blowing,” Squibb says.

“Companies think they have five years to innovate but they don’t; you have to change quickly because the world around us is changing at such a fast rate.”

For brokers and agents who want to introduce CCM solutions into their daily operations, Squibb advises taking small steps. Work out one of your pain points, implement a solution and then analyze how it impacts on client engagement and drives your revenue.

“Although insurance has been playing catch-up in terms of digitalization, the industry is now really making steps forward,” says Squibb. “Digitalization is really driving innovation. Even carriers who didn’t really want to talk about this topic 24 months ago are now knocking on our door asking about CCM solutions.”

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FEATURES

INFLUENCE

FOUR WAYS TO IMPROVE YOUR INFLUENCE We are all in the business of influence – but instead of seeing it as manipulation, Dr Tim Baker outlines how influence, when used ethically, can be an essential business tool

INFLUENCE IS the lifeblood of business, especially for brokers, who must influence the many stakeholders they deal with on a daily basis. However, the word influence means many things to many people. To some, it means being cunning, manipulative and tricky. Others see influence as ethical and open.

In my view, influence is the power to make other people agree with your opinions or get them to do what you want willingly and ethically. The key words here are willingly and ethically. Sustainable influence is not an exercise in manipulation and trickery.

In the context of sales, marketing and professional advice – areas that brokers regularly work in – influence is, more often than not, about persuading others to think and act in ways that benefit themselves and their circumstances. People make up their own minds, but they do so on the basis of how they are influenced. This is why influencing must be done from an ethical standpoint.

My model of influencing, the Influencing Capabilities Framework, illustrated on the opposite page, identifies four primary ways that leaders can and do influence others.

You will notice two styles: push and pull.

The push style is more assertive, direct and upfront. The pull style, on the other hand, is more collaborative, indirect and subtle. Both are effective in the right place, at the right time,

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INFLUENCING CAPABILITIES FRAMEWORK PUSH STYLE

PULL STYLE

APPROACH

Investigation

Calculation

Logical

Motivation

Collaboration

Emotional

with the right people. The two approaches are logical and emotional.

The logical approach is based on fact, rationale, structure and clarity, whereas the emotional approach is based on inspiration, possibility and the big picture. Again, both approaches work in the right circumstances.

So we end up with four distinct strategies: investigation, calculation, collaboration and motivation. Which one do you favour?

Investigation As a strategy of influence, investigation basically means gathering the facts and presenting them in a logical and convincing manner. The presentation of a coherent and assertive argument based on well-founded research is a powerful form of persuasion in the right set of circumstances.

People usually are not convinced by someone who does not have a sound grasp of the facts, nor are they influenced by someone with wavering conviction or an incoherent presentation of his or her ideas. Then again, even if you are logical, coherent, assertive and well-researched, that doesn’t necessarily guarantee that you will be persuasive. But these attributes are at least a good starting point.

Brokers who have a preference for investigating like to search for supporting evidence and, from this data, generate hypotheses or ideas based on a logical, rational argument. Once investigators have prepared a well-founded case, they assert their ideas to others. Being well-prepared, investigators are typically on solid ground to oppose others’ arguments. In other words, an investigator’s influencing ability is reliant on a carefully researched and assertively communicated case. Climate change campaigner and former US vice president Al Gore is an example of an investigator.

Calculation

Collaboration

Calculation means to influence by clearly articulating the pitfalls of the status quo and demonstrating how those pitfalls can be overcome with a new proposal.

Psychologists tell us that we are all motivated by pain and pleasure. We try to avoid painful situations as much as we can,

The strategy of collaboration fundamentally involves influencing through trust-building and sharing the ownership of the leader’s proposal.

Clients are more likely to be persuaded by a broker’s suggestion if they feel they have been genuinely consulted about it.

Influence is, more often than not, about persuading others to think and act in ways that benefit themselves and their circumstances such as being late for an important meeting we are chairing. Conversely, we gravitate to pleasurable experiences, such as pleasing our boss by finding the right information in a timely manner.

While this should appear obvious, we each have different ideas of what pain and pleasure are, so we interpret the significance of situations in our own way. A potentially painful situation for one person could be viewed as enjoyment by another.

Brokers who are calculators are likely to talk up both the advantages and disadvantages of an approach. Former UK prime minister Margaret Thatcher was a calculator.

Motivation The motivation strategy, in essence, means to influence by associating an idea, change or proposal with a clear, compelling and common vision of the future. Brokers who can paint a convincing picture of the future and motivate people with that vision are generally inspirational and influential. Most great leaders have this aptitude.

Unfortunately, from my observations, too many people get caught up in the minutiae of what they are doing. Consequently, they often forget to articulate the link between the proposal and the big picture. People in sales don’t always explain the why – why we are recommending this approach or portfolio.

“How does what we are currently doing contribute to the big picture?” is the type of question motivators answer. Former civil rights activist Martin Luther King Jr was a motivator.

By collaborating with others, the influencer is inviting the people he or she is influencing to be emotionally engaged and involved in the proposal. Clients feel they have a stake in the change and are subsequently more receptive to its merits.

Through authentic collaboration, trust builds and influence increases.

Collaborators create positive emotional energy. They are concerned with developing a sense of trust and engagement. Collaborators are consultative in their approach to problemsolving; they listen actively to others and are willing to share ownership of the outcomes through open communication.

The influence of collaborators permeates from encouraging input and building higher than normal levels of confidence in colleagues. The late activist Mother Teresa was a collaborator.

We each favour one of these strategies over the other three. The problem is that, from time to time, we will doubtlessly use the wrong strategy, either for the person we are trying to influence or the situation we are in. Outstanding persuaders and influencers use all four strategies in the right place and at the right time.

Dr Tim Baker is a thought leader in organizational and leadership development, an international consultant and bestselling author of the book The New Influencing Toolkit: Capabilities for Communicating with Influence. For more information, visit winnersatwork.com.au.

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FEATURES

INFLUENCE

BE LESS BORING:

PRESENTING FINANCIAL CONTENT ON STAGE Avoid being the speaker who makes the audience’s eyes glaze over and inspires the compilation of mental shopping lists. Communications expert Jane Anderson reveals how

HAVE YOU watched someone speak at a conference and struggled to watch past the first 10 seconds? Maybe they have just slide after slide of graphs and tiny numbers that you can’t even see. (Most often, they will say, “I’m not sure if you can see this on the slide, but …”)

Dale Carnegie, author of 19 books, once said, “For every presentation you give, there are three: the one you prepared, the one you gave and the one you wish you gave.”

A 2013 Gallup poll found that 70% of people listening to presentations are disengaged. That’s right – 70% of your audience may actually be sitting there thinking, ‘I need to organize the kids, pick up milk, finish that report’, etc.

Joe McCormack, a communications expert, wrote recently that the average person can absorb 750 words per minute, but we can only speak 150 words per minute. Therefore, it may be fair to say that your audience could be completely distracted and bored, and it’s up to you as the speaker to WAKE THEM UP! So, what are you going to do? You have spent all last night pulling your slide deck together because you haven’t had time. The problem is that you can’t just email the presentation to your audience to read. You actually need to breathe life into the content for someone to hear it.

The truth is that if you don’t get your

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audience’s attention within 30 seconds, you have lost the opportunity to connect, influence and inspire.

So, what can you do to grab attention and present data, numbers, graphs and other financial content on a stage?

Add humour You don’t have to be a professional comedian, but it is important to lighten up and have a laugh. Humour fast-tracks connection with your audience.

You might be thinking, ‘How can I make data funny?’ Consider things such as your personal brand or your background. Perhaps you have a funny story to tell about your time working three jobs to have enough money to get through university. Think about some of your funny experiences with money.

Remember, your audience has been sitting all day, so the last thing they want to do is sit through another boring presentation.

Tell stories Use stories to connect with your audience. Keep them punchy and interesting, and don’t let them drag on for too long. Stories connect with your audience’s emotions and feelings and anchor your message. Author Tim O’Brien once said that “storytelling is the most essential human activity. The harder the situation, the more essential it is.” Stories are like adding colour to a blank canvas. They bring warmth and light to create interest and insights to your message.

Without a story, your content will feel like cardboard to the audience. It will leave them feeling dry and empty, wishing there was more to make it interesting and memorable. Start making a log or journal of stories that you can share when you present data.

Start with why Each person sitting in front of you is in their own world. The reality is, they haven’t yet

made the connection between what you have to say and their world. One of the temptations in presenting is to feel like you have to use up your allocated time with as much information as possible. The problem with this is that you haven’t made the connection to why your audience should care.

You may well know that what you have to say is important and relevant, but they don’t.

It’s up to you to be the conduit between their world and their problems to your world and your solutions.

Simon Sinek, renowned TED speaker and the author of Start With Why, says that “people don’t buy what you do; they buy why you do it”. If you can capture that for the audience, then you will truly connect.

Smile If you are feeling stressed speaking in front of a group, it’s easy to lose your own personality. Remember, wherever you are in the world, a smile is universal language, and it helps you connect on a personal level.

Show your teeth if you have them! In Ron Gutman’s TED Talk on the power of smiling, he describes research that found that smiling creates the same brain stimulation as 20,000 bars of chocolate! The average child smiles more than 400 times per day, so it is no surprise that it often feels joyful to be around smiling children.

Unfortunately, research shows that adults smile only 20 times per day on average, so make an effort to put a smile on your face, and you will seem more human and approachable. This will make your message more memorable, as you’ll feel more likeable to the audience. Also, smiling will force you to become more relaxed and to connect more intentionally with your audience. Even if you don’t feel confident, this is a good way to trick your mind into feeling more so. As Amy Cuddy, an expert in building confidence, says, you need to “fake it till you make it”.

A 2013 Gallup poll found that 70% of people listening to presentations are disengaged Less is more Reduce the amount of content on your slides. Try not to rely on them too much for your notes, as you may end up speaking to your screen and not your audience. Use images to prompt your message and content for each point. Nancy Duarte, the worldleading expert on presentations, says people remember an image long after your content.

Choose an image that represents your point, and then support your point with data if you have to. Try even just using one slide at a time for each piece of information, graph or table of data.

You may need to step some of your information out a piece at a time or highlight specific areas on a graph with pointers or circles. Your audience has a hard enough time absorbing what you’re saying and trying to read at the same time, so ensure what they see on screen matches what you’re saying. You may even find turning the screen off works effectively to gain your audience’s attention, depending on the point you’re trying to make.

By putting some time and thought into your presentation, you can make a massive difference to the experience of your audience when they’re trying to absorb financial content. The less data you have, the more effectively you will connect and the more you bring yourself to the stage. This will mean your messages stick, and the audience will be far more inclined to take the action you want them to take.

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PEOPLE

CAREER PATH

ON THE WINNING TRACK Michael McLachlan has blazed an enviable trail through the world of insurance, and his newest enterprise seems poised for success

Mike’s globe-trotting childhood included stints in Ceylon, Johannesburg and Nairobi, culminating in a return to the UK to study at Manchester University.

“When I got the [offer] letter I whipped up to Manchester and accepted the place there – and had three great years of uni, and one of bumming around.”

1960s and ’70s AN INTERNATIONAL UPBRINGING

1979

BECOMES AN UNDERWRITER With his sights set on becoming a casualty underwriter, Mike accepted a posting in Calgary. His tutor in the new position was intimidatingly determined.

“He said: ‘We’re going to have two weeks of getting to know the manual and two weeks of how it’s really done, and at the end of that four weeks, you’re going to be a casualty underwriter.’”

1977 MOVES TO CANADA His father was transferred by employers Munich Re from Germany to Toronto and so Mike moved to Canada. He snagged a position in the claims department at Commercial Union, the second-largest insurer in Canada at the time.

“Claims is a great place to start an insurance career. It’s a wonderful place to learn wordings, coverages; you have to really understand the basics. If you can use your network to open the door, that’s great, but you got to prove yourself.”

1984

“I learnt 70% of what I know today about casualty underwriting in that four-week period” 1995 STARTS HIS OWN BUSINESS Fairfax’s purchase of Continental and offer to Mike of a VP position coincided with him turning 40 and losing a parent. He chose instead to start his own underwriting company, Creechurch.

“I thought, ‘I’m not ready to be plateaued.’ .... my mother dying made me think about being 80 and thinking ‘you never even tried’. It put it in perspective; it took away the fear of failure.”

2013 FOUNDS TRINITY UNDERWRITING The start-up, which underwrites on behalf of Lioyd’s and others, provides specialty insurance products for scientific, industrial, professional, manufacturing and technical risks.

“The first three years of any start-up is hard work – we’re still in that phase.

We’re striving to devise the right products, the right service. We’re distinguishing ourselves via distribution.... Also, all the men working here are Mikes – we can’t fail.”

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BEGINS STEADY RISE Mike accepted a position at General Re before being poached by Continental and later promoted to casualty manager for Canada. In 1987 he was one of six Continental staff members worldwide selected for a six-month fast-track management program in New York.

“The lesson I learned is to keep it simple. That gives you the chance of getting it executed, which is the most important thing.”

2008

HIRED BY BERKLEY Mike sold the Creechurch business and accepted an offer from Berkley to set up a company in Canada.

Prophetically, his wife told him: “You’re going to regret this.” And he did.

“It was tough – the first time I’d been fired. It makes you a little humbler; you take a bit of a hit. Most life experiences are learning experiences. I vowed at my next company I’d never fire anyone – gee, I hope the staff doesn’t see this.”

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PEOPLE

CAREER PATH

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PEOPLE

OTHER LIFE

5

Age at which Mary first attempted cookery

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

40

Number of amateur chefs competing for the series title

IN THE TV KITCHEN Broker Mary Berg triumphed in MasterChef Canada’s TV kitchen, emerging as the series’ first female winner 54

3

Number of times Mary won an individual challenge

COOKING HAS always been a passion for broker Mary Berg – “I started cooking as soon as I could pour milk,” she laughs.

So it made sense, particularly to her co-workers who were accustomed to sampling her baked treats, that Mary was chosen from the many who auditioned to appear on culinary competition show MasterChef Canada.

Mary was an early favourite, who seemed to only gain momentum as the series progressed, despite the pressure

that grew with every episode.

“Being on the show and cooking in that kitchen was definitely the most stressful thing I’ve ever done, but it was also the most rewarding.”

Since her big victory in the final episode, Mary – who returned to her insurance work for a time, steadfastly remaining mum with her curious co-workers on the outcome of the series – has been tapped for bigger and better television ventures and now has “a project in development”.

www.insurancebusiness.ca

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South

SWG’S SECURITY SERVICES PROGRAM DESIGNED SPECIFICALLY FOR THE SECURITY SERVICE INDUSTRY SOUTH WESTERN GROUP has a Security Package policy designed specifically for the Security Industry.

Standard Liability policies are not designed to protect against the special exposures your security clients face. South Western Group’s Security Package has been designed specifically for the Security Industry... and offers the most important coverage required by this industry... Failure to Perform and No General Aggregate.

COVERAGE HIGHLIGHTS

Commercial General Liability (Occurrence Form):  Failure To Perform  No General Aggregate Limit  Design Errors & Omissions  Bodily Injury  Personal Injury  Intentional Injury in Defense of Personal Property  Fire Extinguishing Agent Release  Products & Completed Operations  Care, Custody and Control  Legal Expense & Defense Cost Reimbursement – $25,000 Each Occurrence; $25,000 Annual Aggregate  Advertising Liability  Property Damage – Broad Form  Non-Owned Auto (including physical damage)  Incidental Malpractice  Contingent Employers Liability  Employee Benefits Liability – Claims Made – $1,000,000 Limit  Employees as Additional Insureds  Tenants Legal Liability – $250,000 Sub-Limit  Lost Key Cover – $50,000 Sub-limit  Product Recall Extension – $25,000  Medical Payments – $25,000 each person; $25,000 each accident  Limited Pollution Liability Extension $1,000,000 Each Occurrence & Aggregate  Blanket Additional Insured’s Clause  Subcontractor Protocol  Owners and Contractors Protective coverage

COLLEEN BLISS

416-642-6777 | colleen.bliss@swgins.com

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Operations Requiring These Special Coverages Include:           

Security Guard Services Private Investigators Training of Guards & Private Investigators Alarm Installers CCTV Installers Locksmiths Sprinkler Installers Alarm Monitoring Fire Extinguishers & Co2 Systems Telephone Answering – Paging Manufacturers/Distributors of Alarms & Protective Systems

Other Available Coverage:        

Security Guard Services Private Investigators Training of Guards & Private Investigators Alarm Installers CCTV Installers Locksmiths Sprinkler Installers Alarm Monitoring

Errors & Omissions Liability is also available:  Errors & Omissions Liability for Private Investigators – Claims Made $250,000 Limit Each Occurrence; $250,000 Annual Aggregate (higher limits available)  Errors & Omissions Liability for Training of Guards & Private Investigators – Claims Made Up to$2,000,000 Limit Each Occurrence; $2,000,000 Annual Aggregate  Errors & Omissions Liability for Security Consultants – Claims Made $250,000 Limit Each Occurrence; $250,000 Annual Aggregate

SWGINS.COM

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FEATURES

EXPERT ADVICE FEATURES OF COMPREHENSIVE AND PROTECTIVE COVERAGE COLLABORATIVE Evolving policies by incorporating feedback from brokers and customers CONTEMPORARY Adapting to societal and legislative changes to develop a modern product

The four Cs of comprehensive coverage WE LIVE in an era of constantly changing market forces – be it the sharing economy, our maturing population or the growing demand for 24/7 access. These changes have a major cumulative impact on society: they continue to shape the way we communicate, learn, travel, buy and even work.

Consider just a few of the ways in which our world has changed and continues to change: • By 2036, the number of seniors in Canada is expected to hit 10 million. More than double the current amount. [1] • An estimated 35 million e-bikes were purchased in 2015, and this number is projected to reach 84 million in 2035. [2] • The purchase of luxury goods is on the rise.

In fact, Canadians purchased $3 billion worth of jewellery, luggage and leather goods in 2015. [3] “In such a dynamic marketplace, the insurers who stay competitive are those who listen to the emerging needs of their customers and successfully adapt in order to keep up with

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the evolving consumption habits of today’s customer,” says Carolyn Andreacchi, director of underwriting, personal insurance at RSA Canada.

Another key to being a best-in-class insurer is providing clarity around a customer’s coverage. It’s just as important to communicate what is not covered as what is covered. Providing complete clarity is particularly critical in a world made uncertain by catastrophic events, climate change, new threats and legal considerations.

This clarity helps ensure consumers receive the level of protection they expect.

The industry witnessed this need in action during the wildfires in Alberta earlier this year.

The uncertainty around the future of homes and property created an opportunity for insurers to step up and be there for their customers when they needed it most. Canada’s insurers showed flexibility around emergency living expenses and understanding throughout the claims process and rebuilding phase. The presence of brokers at the evacuation centres and in the community following re-entry made a real

COMPETITIVE Surveying the market to provide the best value to customers CLEAR Providing clarity around what’s covered, to ensure customer confidence difference in letting those affected know that they hadn’t been forgotten.

The claims process following the wildfires has proven the importance of coverage clarity, and its direct correlation with a more positive customer experience. Knowing what they’re insured for ahead of time helps customers know what they’re purchasing, and what other coverages they might need. No surprises mean a stronger relationship between customers, brokers and insurers.

A smart insurer changes with the times and demonstrates a commitment to looking out for customers and protecting the sustainability and competitiveness of their customer proposition.

“A best-in-class insurer takes on this responsibility to be responsive and adapt to market changes,” says Andreacchi. “That means keeping up with regulatory, technological and statutory changes and incorporating emerging risk trends into policies to ensure customers have comprehensive coverage. The end goal is to ensure broker confidence that the policies adequately address the challenges not just of today, but tomorrow as well.”

[1] Ross Marowits, The Canadian Press (2015). “More retirement homes on the way in Canada.” (http://www. moneysense.ca/save/retirement/more-retirement-homes-on-the-way-in-canada/) [1] Electric Bikes Worldwide Reports (2016). “Electric Bikes Worldwide Report 2016.” (http://www.ebwr.com/) [1] Statistics Canada (2016). “Retail sales, by industry (unadjusted).” (http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/trad15a-eng.htm)

www.insurancebusiness.ca

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17/08/2016 2:28:55 AM

You Can Have Your Cake and Eat it Too.

Our brokers know, when you deal with Trisura, you get coverage customized to meet the needs of your clients. Everyone’s taste is different, but there’s no substitute for a great recipe. That’s why our expert underwriters mix the right ingredients, so when you come into our kitchen, you know the rewards will be sweet.

Find out more about our industry leading specialty insurance and surety solutions at www.Trisura.com

a step above Trisura Guarantee Insurance Company is a Canadian owned and operated Property and Casualty insurance company specializing in niche insurance and surety products. We are a proud supporter of the Insurance Broker’s Association of Canada.

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17/08/2016 2:29:11 AM

Let’s Go Forward Together

April

Business Development Manager

We’re building genuine relationships with our broker partners by investing in talented people like April. We’re working hard to bring you competitive products with our unique blend of actuarial science and good old-fashioned underwriting that we call ‘Confident Pricing’. Through innovative solutions and award-winning technology like uBiz, we’re helping brokers look to the future and reach new customers online.

As we transform and grow, one thing will stay the same – Gore Mutual remains committed to brokers.

TO FIND OUT MORE, CONTACT YOUR BUSINESS DEVELOPMENT MANAGER.

goremutual.ca

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