Insurance Business Canada 7.05

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INSIDE A MEGA-MERGER

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ISSUE 7.05

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/InsuranceBusinessCanada

Lorem ipsum

UPFRONT 04 Editorial

Why insurtech isn’t the enemy

06 Statistics

37 FIVE-STAR WHOLESALE

Key data that should be on your radar

08 Head to head

AR

Finding common ground on cyber policy language

FEATURES

S

BUILT FOR BUILDERS

SPECIAL REPORT

24

ENCON looks back at 50 years of success in its engineers’ professional liability program

PEOPLE

INDUSTRY ICON

2

12 Intelligence

This month’s big movers and shakers Why innovation must be embedded in company culture

16 MGA update

How MGAs are responding to cannabis

PEOPLE

40

NAVIGATING A HARD MARKET

Billyard Insurance Group’s Lucas Prominski outlines his brokerage’s proactive approach to preparing clients for a challenging market

Helping to oversee one of the biggest insurance mergers in history is no easy task, but AXA XL executive Kelly Lyles has risen to the challenge

20

What’s behind the impressive results from the world’s largest brokerages?

14 Technology update

FIVE-STAR MGAs 2019

Brokers name the MGAs that are excelling in regard to product range, technical expertise, underwriting responsiveness, pricing and more

BROKERS & MGAs 10 News analysis

48

18 Opinion

Embracing the latest technology means stepping out of your comfort zone

FEATURES 42 What’s in a name?

Inside ENCON’s rebranding to Victor

50 Tailored solutions

How Aviva Canada’s newest division is meeting the needs of large companies

56 Expert advice

A quicker way to find the right insurance solutions for SMEs

PEOPLE 52 Career path

After an accidental start, Thomas Taborowski found an ideal fit in insurance

55 Other life FEATURES

A BUDDING OPPORTUNITY

How brokers can get in on the ground floor of Canada’s cannabis insurance space

Hitting the slopes with broker and ski instructor Dominic Éthier

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UPFRONT

EDITORIAL

Modernization is for you, too

I

nsurtech is no longer a fantasy or a vision of the future – it’s very much the here and now. For proof, look no further than Willis Towers Watson’s latest Quarterly Insurtech Briefing, which reported 69 insurtech deals with a total value of US$1.41 billion during the second quarter of the year – the fourth quarter in a row in which funding has topped the US$1.2 billion mark.

“Technology as a strategic vertical is now commonplace in nearly every single insurer and reinsurer across the globe,” Dr. Andrew Johnston, Willis Re’s global head of insurtech, said in the report. He added that while Willis Towers Watson believes in the value created by some insurtechs, it will maintain its position of “realistic pragmatism,” suggesting that tech firms in the space still have plenty to prove. But what approach should the smaller insurance broker take?

“Technology as a strategic vertical is now commonplace in nearly every single insurer and reinsurer across the globe” There is good reason for brokers of all size to re-evaluate the insurtech landscape.

Many are stuck with legacy systems that are slow and inefficient, making access to data difficult and leaving them without solutions for today’s clients, who want to get the information they need when they need it. Yet many brokers continue to dismiss insurtech, seeing it as more of a threat than an opportunity.

In fact, the majority of insurtechs have a different narrative – focusing not on disrupting or displacing the broker, but on enabling them to do business better.

The possibilities for collaboration are seemingly endless, from using data to improve sales campaigns, to streamlining processes in order to cut costs, to boosting customer satisfaction by providing 24/7 access to information, to finding problems more efficiently via data-driven KPIs. The insurance industry is moving forward. Customer expectations are changing, rules and regulations are getting tougher, and the sector is now awash with increased competition. Embracing technological solutions will soon no longer be a differentiator, but an expectation. So don’t view insurtech as the enemy to your brokerage – treat it as the next evolution of your business.

The team at Insurance Business Canada

www.insurancebusiness.ca EDITORIAL Managing Editor Paul Lucas Deputy Editor Bethan Moorcraft Writers Lyle Adriano, Tom Goodwin, Alicja Grzadkowska, Libby MacDonald, Joe Rosengarten, Ryan Smith, Ksenia Stepanova Copy Editor Clare Alexander

CONTRIBUTORS Simon Oddy

ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Traffic Manager Ella Dayandante

SALES & MARKETING National Account Manager Eric Langille Business Development Manager Desiree McCue Sales Manager Dane Taylor Vice President - Sales John Mackenzie Global Head of Communications Lisa Narroway Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

Editorial Inquiries paul.lucas@keymedia.com Subscription Inquiries subscriptions@keymedia.com Advertising Inquiries eric.langille@kmimedia.ca desiree.mccue@keymedia.com

KMI Media 20 Duncan Street, Suite 300 Toronto, ON M5H 3G8 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Denver, London, Sydney, Auckland, Manila, Singapore, Seoul

Insurance Business Canada is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business UK gemma.powell@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 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.

4

www.insurancebusiness.ca

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18/09/2019 3:37:45 AM

HELPING CANADIANS EVERY STEP OF THE WAY 1M+

Canadians

88%

of new claim calls are answered within 30 seconds

26K+ Brokers

24/7

91%

ready when customers need us most

of customers are satisfied with their Economical claim experience

Gaining the confidence of customers doesn’t happen easily these days. While there are significant challenges in the industry with rate increases, fraud, and severe weather, customers just want to know that they’ll be taken care of, and that they’ll get a quick, correct answer when they have a question. That’s why keeping people at the centre of everything is more than our promise — it’s what our team does best.

stry

ut he

Insurance can be human Find stories, videos, and more at economical.com/helpingcustomers

property | auto | business The claims satisfaction percentage is based on 13,285 claimant survey responses measuring customer satisfaction with claims services from January 2018 to December 2018. ©2019 Economical Insurance. Economical and Economical Insurance are registered trademarks of Economical Mutual Insurance Company. All Economical intellectual property belongs to Economical Mutual Insurance Company. All other intellectual property is the property of their respective owners.

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18/09/2019 3:37:49 AM

UPFRONT

STATISTICS FORENSICS AND LEGAL EXPENSES LEAD CYBER COSTS

16

IRELAND

88.2 13

CANADA

90.2

10

UNITED KINGDOM

91

51%

Average proportion of cyber claim costs devoted to IT forensics

105%

Increase in IT forensics costs since 2017

19

BELGIUM

86.8

SCANDINAVIA LEADS THE WAY IN RESILIENCE The Nordic nations beat the field when it comes to the resilience of their business environments, according to the FM Global Resilience Index, which scores countries on a scale of 0 to 100 based on factors such as economic productivity, political stability, corporate governance and natural hazard exposure. Haiti, Venezuela and Ethiopia came in at the bottom of the list.

In the US, the central and eastern regions (which came in at numbers nine and 11, respectively) scored better than the West, which ranked 21st.

9

UNITED STATES CENTRAL

92.4 11

UNITED STATES EAST

91

NO LONGER A GRUDGE PURCHASE?

30%

In a recent study of millennials’ attitudes toward insurance, Cake & Arrow and Coverager found that this generation does value insurance and the financial stability it brings – but very few are excited about purchasing it.

MILLENNIALS’ ATTITUDES TOWARD INSURANCE

Average proportion of cyber claim costs devoted to breach coach/legal expenses

72%

Increase in breach coach/ legal expense costs since 2017 Source: NAS Insurance 2019 Cyber Claims Digest

Insurance protects me and my family

42%

I buy insurance because I have to

38%

Insurance is worth every penny

4% 0%

10%

20%

30%

40%

50%

Source: Millennials and Modern Insurance, Cake & Arrow/Coverager, 2019

6

www.insurancebusiness.ca

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18/09/2019 3:38:26 AM

15

M&A CLAIMS BECOMING MORE SEVERE

NETHERLANDS

89.1 5 1

The number of $10 million+ claims in M&A insurance has more than doubled in the past year (from 8% to 15%), according to AIG’s latest analysis of warranty and indemnity claims. At the same time, the sector has seen declining rates and broadening terms and conditions, which has presented challenges for insurers.

FINLAND

94.3

NORWAY

100 4

GERMANY

96.6 2

M&A WARRANTY AND INDEMNITY CLAIMS BY SIZE

DENMARK

97.2 20

15%

CZECH REPUBLIC

$10 million+

86.7 7 6

18 LUXEMBOURG

94

HONG KONG

88

44%

SWEDEN

94.1 8

3

AUSTRIA

$1 million to $10 million

NEW ZEALAND

90.4

SWITZERLAND

97

93.6 14

12

FRANCE

91.1 17

41%

AUSTRALIA

88.2

$100,000 to $1 million Source: Taxing times for M&A Insurance, AIG, 2019; all figures in US dollars

Source: FM Global Resilience Index, 2019

OVERCOMING THE PRICE EXPECTATION In order to change consumers’ attitudes about insurance, the industry has to move beyond marketing on price, Cake & Arrow and Coverager concluded in their report. Currently, the most popular insurancerelated Google search terms on a monthly basis are either brandless or focused on frugality.

HITS PER MONTH FOR INSURANCE-RELATED SEARCH TERMS ON GOOGLE

1,830,000 CAR INSURANCE

450,000 CAR INSURANCE QUOTES

246,000 AUTO INSURANCE

301,000 INSURANCE QUOTES

WHAT’S DRIVING M&A CLAIMS? The most common claims in the M&A space revolve around financial statements, tax and compliance, although AIG’s analysis of the sector found some regional variations: Tax tends to dominate in Europe and the Middle East, while litigation is a major driver of claims in Asia-Pacific.

M&A WARRANTY AND INDEMNITY CLAIMS BY TYPE 20% 15% 10%

550,000 CHEAP CAR INSURANCE

Source: Millennials and Modern Insurance, Cake & Arrow/Coverager, 2019

5% 0%

19%

18%

Financial statements

Tax

15%

13%

9%

7%

7%

6%

4%

Compliance Material Employee- Intellectual Litigation Operations- Environwith laws contracts related property related mental

1% Fundamentals

Source: Taxing times for M&A Insurance, AIG, 2019

www.insurancebusiness.ca

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18/09/2019 3:38:33 AM

UPFRONT

HEAD TO HEAD

Do cyber insurers need to use standard terminology?

Within cyber policies, differing terms for the same exposure can cause coverage confusion. Is it time for some standardization?

Mark Schulz

Bob Parisi

John Farley

Vice-president and cyber liability product manager Victor O. Schinnerer & Company

US cyber product leader Marsh

Managing director, cyber liability practice Gallagher

“No. The current cyber landscape is still evolving. As cyber coverage stabilizes, so will consistency with the terminology. The range of broker understanding of cyber policy language runs the gamut, which is clearly an issue for those who feel less comfortable talking cyber with their clients.

Where there is a knowledge gap, however, there is also an opportunity to educate and demystify. I see great potential to win business for those insurers that can make their cyber policies comprehensive yet easier to understand in order to support brokers as cyber subjectmatter experts.”

“An agreed lexicon for frequently used terms – not forced, but encouraged – might dispel some misconceptions about cyber insurance and in theory make policies easier to compare.

But the problem isn’t so much the vocabulary of cyber insurance as it is the grammar. Even if we forced all insurers to adopt standard terminology, insurers would still find a way to differentiate how they offered the coverage, as every cyber insurance underwriter believes they have the one true way to underwrite cyber risk. Efforts might be better focused on aligning the format of cyber policies with more traditional P&C policies.”

“Clarity is in everyone’s best interests. On the surface, it seems mandating standard terminology would be a good idea. Many cyber carriers define terms in vastly different ways. So, as an insured moves from one carrier to another, policies may contain the same terms but have wildly different definitions, making it difficult to navigate the market and affecting the scope of coverage.

Unintended consequences could include more constricted coverage with no room for negotiation. Other complications occur as new exposures arise. Imposing standard terminology may limit the flexibility of carriers to evolve along with the threat.”

SAME CONCEPT, DIFFERENT NAMES The relatively new and constantly evolving field of cyber insurance has been plagued by varied wordings – what one company terms ‘silent cyber risk,’ for example, another might call ‘non-affirmative cyber risk.’ “A carrier might have a standardized form, but then they’re probably adding layers and layers of added enhancements to it to provide broadness of coverage and avoid ambiguity,” explains Ruby Rai, manager of cyber and professional liability at AIG. “Maybe there will be a future where markets can come together and a more standardized form could be achieved.” Greg Markell, president and CEO of Ridge Canada Cyber Solutions, agrees that “what we need to get at is a common set of terminology, such that if I gave three lawyers the insurance wording, I don’t have three diverging interpretations of that insurance wording.”

8

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18/09/2019 3:39:12 AM

UPFRONT

NEWS ANALYSIS

Brokerage growth spurt The Big Four brokerages all performed well in the second quarter of 2019. IBC takes a closer look to find out what’s driving the rosy results

IT WAS a bright and temperate summer for the Big Four insurance brokerages. In the flurry of second-quarter financial results, all four of the largest brokerages in the world – Marsh & McLennan Companies, Aon, Gallagher and Willis Towers Watson – delivered positive results, suggesting that times are good in the brokerage world.

The quarter included two major acquisitions: Marsh finalized its US$5.6 billion purchase of JLT in April, and Willis Towers Watson completed its US$1.2 billion purchase of TRANZACT, a direct-to-consumer healthcare firm that links individuals to US insurance carriers. Meanwhile, Gallagher snapped

ance space,” explains Martha Butler, senior director of North American insurance at Fitch Ratings. “As they continue to invest in risk management and consulting services, their revenues keep increasing.”

Marsh & McLennan Companies [MMC] is the largest of the four organizations, generating annual revenue of nearly US$17 billion.

It’s also the only organization to score a negative A- outlook from Fitch Ratings. This is largely due to the JLT acquisition and the financial leverage it required, explains Douglas Pawlowski, senior director of North American insurance at Fitch.

However, Pawlowski notes that MMC’s Q2

“As [the big brokers] continue to invest in risk management and consulting services, their revenues keep increasing” Martha Butler, Fitch Ratings up 13 smaller brokerages, representing US$195 million of annualized revenue.

Aside from M&As, Q2 saw all four brokerage giants continue to reinvest in their businesses to drive organic growth through additional risk management and consulting services. “The big brokers’ revenues are not solely dependent upon pricing in the insur-

10

results “looked pretty good” and its revenue growth “was right in line with their expectations between 3% and 5%.” MMC president and CEO Dan Glaser said he was pleased that the brokerage was able to generate “solid growth in underlying revenue and adjusted EPS while welcoming 10,000 new colleagues” via the JLT merger.

Despite that impressive start, Pawlowski says it’s “way too early to call [the Marsh/ JLT merger] a success,” adding that “our rating sensitivities depend on how quickly and successfully they can de-lever. I found it interesting how they’re expected to have diluted earnings this first year and break even next year, so we won’t see any actual growth in earnings from this transaction until 2021.”

Aon, the second largest brokerage in the world by revenue, recorded “strong organic revenue growth” of 6% for the second quarter, which Butler attributes to the group’s divestitures and subsequent restructuring. “Everything they’re doing in terms of restructuring their business is going to make them more profitable in terms of growth moving forward,” she says.

Butler’s stance mirrors Aon CEO Greg Case’s comment in the company’s Q2 earnings release: “The steps we are taking to lead

www.insurancebusiness.ca

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THE BIG FOUR’S SECONDQUARTER RESULTS TOTAL REVENUE, Q2 2019 $5bn

$4bn

$3bn

$2bn

$1bn

$0

$4.3 billion

$2.6 billion

$2.05 billion

$1.3 billion

Marsh

Aon

Willis Towers Watson

Gallagher

All figures in US dollars

Aon United in response to increasing client demand, combined with significant investment in content and capability, is not only amplifying our ability to serve clients, but also our ability to deliver improved operational

revenue of US$2.05 billion. The company also achieved a double-digit increase (14.6%) in adjusted operating income growth, recording US$299 million for the quarter.

Like Marsh, Willis Towers Watson

“It’s way too early to call [the Marsh/JLT merger] a success … Our rating sensitivities depend on how quickly and successfully they can de-lever” Douglas Pawlowski, Fitch Ratings and financial performance that we believe will unlock significant shareholder value creation over the long-term.”

Six percent seemed to be the magic number for the London-headquartered brokerage behemoths in the second quarter.

Willis Towers Watson also delivered organic revenue growth of 6% in Q2 for a total

completed a major acquisition in the quarter. At the time, CEO John Haley said, “This acquisition, coupled with our highly differentiated capabilities and disciplined management of the business, leaves us confident in our ability to continue to drive sustainable, profitable growth and deliver value for our clients and shareholders.”

From Fitch’s perspective, WTW’s “margins look good, their EBITDA to interest expense is marking up, and their debt to EBITDA is going down,” Butler says. WTW currently has a rating of BBB (stable) from Fitch but will remain under scrutiny after taking on around US$1.1 billion in new debt via the TRANZACT acquisition. However, WTW has announced plans to reduce its financial leverage.

While Fitch doesn’t provide a rating for Gallagher, it’s clear the fourth largest brokerage is “acquiring a lot, and their margins look good,” Butler says. In addition to completing 13 mergers in Q2, the company posted total revenue growth of 13%, organic revenue growth of 5.8% and a net earnings margin of 12.2% – results that Gallagher chairman, president and CEO J. Patrick Gallagher described as “outstanding.” The firm’s brokerage segment performed well, reporting net earnings of US$138 million, up from US$127.5 million the year prior.

www.insurancebusiness.ca

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18/09/2019 3:39:50 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Allianz

SulAmérica

Allianz has purchased the auto and property insurance portfolio of the Brazilian insurer, marking its largest investment in the country to date

BrokerLink

A-Plus Insurance Services

A-Plus is a family-owned and -operated general insurance brokerage that has served the Calgary market for more than 30 years

The Co-operators

Cadieux Beausejour Dupras

Based in Saint Jérôme, Quebec, Cadieux Beausejour Dupras’ portfolio includes personal and commercial insurance policies

Intact Financial

On Side Restoration

A longtime collaborator with Intact, On Side Restoration is a restoration company with 35 branches across Canada

Westland Insurance Group

First West Insurance Services

Located across British Columbia, First West Insurance Services’ three divisions offer personal, auto and business insurance

a

Chubb targets middle-market manufacturers

Chubb has introduced a new a platform for middle-market manufacturers. Designed to fill the gaps in traditional insurance programs, the CoverPlus platform addresses exposures such as scalable pollution liability, product withdrawal expense, errors & omissions and cyber liability. “CoverPlus is a dynamic platform designed to offer a wide range of specialized insurance products and services beyond traditional liability insurance to proactively support businesses in the manufacturing sector as they face new exposures within a rapidly changing industry,” said Chubb North America SVP Ernie Salas.

Westland buys major BC broker

Westland Insurance Group has acquired First West Insurance Services, a subsidiary of First West Credit Union. First West offers personal, auto and business insurance in British Columbia under three divisions: Envision Insurance in the Lower Mainland; Valley First Insurance in the Okanagan, Similkameen and Thompson valleys; and Island Savings Insurance on Vancouver Island and the Gulf Islands. Once the acquisition is finalized, Westland will have almost 1,500 employees and more than 130 offices in BC, Alberta and Saskatchewan.

“First West Insurance Services is a landmark acquisition for Westland,” said Westland Insurance Group CEO Jason Wubs. “They are a pillar in the communities they serve and have built a client-centric culture that is perfectly aligned with Westland’s core values.”

12

Johnston Group partners with virtual health provider

Johnston Group, a Winnipeg-based employee benefits program administrator, has forged a partnership with virtual care company Teladoc Health. The more than 30,000 small to mid-sized businesses that are a part of Johnston’s chambers of commerce group insurance plan can access Teladoc’s telemedicine services. The two companies are also collaborating to offer Best Doctors-branded expert medical services to connect Canadians with medical specialists from around the world who can answer inquiries related to complex medical concerns such as cancer or heart disease.

www.insurancebusiness.ca

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18/09/2019 3:40:21 AM

PEOPLE Apollo designs package for CrossFit instructors

Apollo Insurance Solutions has partnered with Trisura Guarantee Insurance Company on a specialty insurance product for CrossFit instructors. The multi-line package includes professional liability, general liability, contents and assets, and legal phone line coverage. It is offered through the Apollo Exchange, allowing brokers to quote, bind and issue insurance policy documents entirely online. “With the addition of this industry class [to the exchange], our broker users can spend less time on paperwork and more time building relationships in the CrossFit community,” said Apollo CEO Jeff McCann.

QBE North America enhances EPL offering

QBE North America has launched QBE Business Resource Edge, a service designed to help reduce the risk of harassment, discrimination and other employment practices violations. Offered as part of QBE North America’s employment practices liability offering, QBE Business Resource Edge includes confidential advice from employment law attorneys, resources for HR/risk management issues, live and recorded webinars on HR topics, on-demand sexual harassment training, an employee handbook and policy-building tool, and customizable regulatory updates via email.

Chubb caters to professional services firms

Chubb has launched a new specialized coverage to address the risks faced by professional services firms. The new Pro ERM product combines miscellaneous professional liability, media liability, cyber liability and first-party cyber coverages with extensive loss mitigation and incident response services. “With Pro ERM, professional service firms now have access to a more fully integrated solution, enabling them to better mitigate, manage and insure their constantly evolving exposures in today’s technology-driven environment,” said Chubb SVP Christopher Calnon.

NAME

LEAVING

JOINING

NEW POSITION

Jennifer Arezes

Zurich

AXA XL

Senior underwriter, Canada property insurance

Diane Babson

N/A

Allianz Partners

CFO, Allianz Care

Amy Barnes

N/A

Marsh

US and Canada energy and power leader

Devin Beresheim

Marsh

Lockton

Executive vice-president, Lockton Specialty Practices

Mark Engel

ProSight Specialty Insurance

RB Jones Marine

Managing director

Adam Garrard

N/A

Willis Towers Watson

Head of corporate risk and broking business

Michel Laurin

iA Financial

Lussier Dale Parizeau

President and COO

Richard Olsen

Munich Re

AIG

Chief actuary, general insurance

Sabra Purtill

The Hartford Financial Services

AIG

Deputy CFO and head of treasury, investor and rating agency relations, and corporate development

Eric Sanders

N/A

QBE

Head of claims, North America

Michael Stickney

N/A

iA Financial

Executive vice-president and chief growth officer

Brad Vescarelli

CES Energy Solutions

Marsh

Canada energy and power leader

Allianz Care appoints new CFO

Allianz Partners has named Diane Babson as chief financial officer for Allianz Care, its international healthcare brand. Babson succeeds Frank Mee, who recently retired after spending more than 30 years with Allianz.

Babson joined Allianz Partners in 2015 as CFO for the US and Americas region, bringing more than 15 years of experience across multiple financial disciplines.

“Diane is a seasoned finance executive with vast experience, and we are delighted she is joining us following a number of very successful years leading the finance operations for the US and Americas,” said Allianz Partners CEO Ida Luka-Lognoné.

AXA XL adds senior property underwriter

AXA XL has named Jennifer Arezes as the newest member of its Canadian property insurance team. As a senior underwriter, Arezes will be responsible for developing and structuring custom risk solutions, with a particular focus on Canadian clients with global exposures. She joins AXA XL from Zurich, where she most recently led the company’s commercial property insurance business.

“As the largest commercial insurer in the world, we have a unique opportunity for continued growth across Canada,” said AXA XL Canada head of property Ian Rutherford. “Jennifer’s expertise and in-depth knowledge of the market is a great asset to our team and, most importantly, will enhance our ability to provide outstanding service to our clients and brokers.”

www.insurancebusiness.ca

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18/09/2019 3:40:28 AM

UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS CSIO establishes emerging technology committee

CSIO has launched a new advisory committee with the goal of guiding the insurance industry in matters of technology. The new Innovation and Emerging Technology Advisory Committee, or INNOTECH, will play a key role in evaluating new and emerging tech and identifying opportunities that can benefit both insurers and end customers. Executives from seven major insurance companies have signed on to serve as external members of the advisory committee, along with a representative from the Insurance Brokers Association of Canada.

Manulife forges partnership with travel-focused insurtech

Travel insurtech Blink Innovation has entered into an agreement with Manulife.

The two companies will work together to develop custom travel insurance solutions for Canadian customers that can be accessed via smartphone. Blink’s technology, which monitors global flight disruptions as they happen, allows insurers to offer their customers proactive, real-time travel insurance to cover the risk of flight delays. “We have been working with Manulife to develop a very exciting suite of products that, once launched, will transform the customer travel insurance experience,” said Blink CEO Paul Prendergast.

Willis Towers Watson rolls out new update to Radar software

Willis Towers Watson has released an updated version of its Radar pricing software. In response to increasing regulatory pressure, Radar 4.5 provides a range of metrics that give companies insights on pricing fairness, including an

14

evaluation library to help insurers assess their pricing against several measures of fairness. WTW has also made further enhancements to the software’s Elastic Net machine-learning method.

According to WTW’s James Tanser, the latest Radar update will allow insurers to deliver on their commitment to give their customers “clear and fair information.”

Aviva Canada launches safer roads accelerator

Aviva Canada, together with venture capital firm Highline Beta, is launching a new insurtech accelerator program aimed at developing innovative solutions to make roads safer. The challengebased platform is designed to help scale startups with a proven ability to tackle road safety, mobility and smart city challenges. It will offer coaching and programming to the participating startups, allowing them to connect to enterprise program partners to quickly test their products in the market and eventually scale their pilot partnerships into commercial deals.

Farmers Edge unveils digital platform for crop insurance

Farmers Edge has launched a new tech platform designed to make the crop insurance claims process easier. The platform, known as FarmCommand, uses a combination of field-level data, remote sensing, AI-driven models and secure automation technology to improve efficiency and transparency. It allows farmers to share data with insurers directly, saving time and eliminating the risk of data loss. For insurance providers, the platform offers visibility into each farm operation, allowing for better risk management and lowered admin costs thanks to features such as automated claim prediction, detection, estimation, adjudication and reporting.

Getting in the innovation mindset For insurance companies, innovation can’t just be the work of one team – it has to be a companywide effort Innovation is one of the big buzzwords flying around the global insurance industry.

Insurers are under pressure to master evolving risks and to use technology to transform the way they transact business. But innovation doesn’t happen overnight, as one industry expert can attest.

“Innovation is one of the key pillars in Zurich’s global strategy, and our approach is very holistic and customer-centric,” says Sumeet Bhatia, head of innovation at Zurich North America. “We strongly believe that innovation starts with the right mindset, and we’re harbouring that mindset by encouraging and enabling our employees, our distribution partners and our customers to participate in our innovation efforts.”

As head of innovation, Bhatia’s role is to ensure that the entire company is moving forward together. He and his team accomplish this by providing different channels for all parties to innovate alongside Zurich. One such channel is the crowdsourcing platform Idea Centre, which allows Zurich employees to share ideas based on their personal experiences in the marketplace and while working with customers and distributors. To date, the platform has generated more than 700 ideas.

Zurich has also established an Innovation Lab that hosts design sprints, workshops, hackathons and brainstorming sessions for

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employees, as well as broker and customer workshops and summits.

“When we talk about innovation and the capabilities we want to build at Zurich, the key question we have to answer is: Does it add value to our customers, our distributors and to Zurich?’’ Bhatia says. “That’s how we prioritize these initiatives because our innovation is always very customer-centric.”

“The key question we have to answer is: Does it add value?”

This ultimately enables Zurich to offer innovative services that can help its customers better manage and mitigate risks, as well as recover in the event of a loss.

“For example, water leakage has turned into a big pain point for many of our property insurance customers,” he says, “so we’re looking at how we can provide services like water leak sensors, shut-off valves and freeze detectors so that we can enhance our risk engineering expertise with valuable data insights.”

Bhatia also points to Toronto-based startup Chisel AI, the gold award winner at last year’s inaugural Zurich Innovation World Championship, which developed a natural-language AI processing tool called Policy Check that enables insurers to reduce errors and omissions before sending out policy documents.

“Our new relationship with Chisel is just one example of how we’re looking to simplify the way we work with our customers and our distributors,” Bhatia says.

“We have lots of other things in the pipeline. For example, we’re actively looking at artificial intelligence and blockchain to see how they can help us to simplify the way we work.”

Q&A

Jacy Whyte Chief marketing officer CUSTOM SOFTWARE SOLUTIONS [CSSI]

Years in the industry 17 Career highlight Launched in May, CSSI’s real-time data exchange pilot program with SGI Canada uses I-Company to integrate CSSI’s broker management system and rating service with SGI Canada’s policy management system

More than just a BMS provider What does CSSI bring to the insurance industry?

At CSSI, we are much more than just a BMS provider. We develop real-time digital solutions for insurance brokers, MGAs and companies in Canada. Developing technology for a wide range of clients gives us a broad industry perspective and allows for innovation and shared efficiencies.

We’re currently involved with many carriers on integration projects utilizing our I-Company carrier products. These projects support direct rating, new business, real-time new business and real-time policy changes, depending on the carrier’s requirements.

I-Company is a suite of tools that supports broker and BMS vendor integration to insurance carrier systems. It’s a complete company solution and is integral to our real-time data exchange project with SGI Canada.

Tell us more about your pilot project with SGI Canada.

The pilot enables integrated rating and real-time new business submission and issuance for personal lines property with brokers in Saskatchewan. The solution improves quoting accuracy and allows for rate updates in real time, rate maintenance efficiencies, and agility in responding to market conditions. Quotes can be submitted as new business, and if accepted, a new policy will be returned in real time, including the e-docs policy document. The rating and new business policy issuance all happen without ever leaving the broker’s BMS. It’s the first phase of a larger project that will include quote, new business, policy change, reinstatement, cancellation and renewal transactions in real time.

The project adheres to the IBAC real-time data exchange principles. First, all transactions starting in a broker management system must conclude in the BMS. Second, all data transmissions must strictly adhere to CSIO standards. Third, data flowing to a company’s system must be processed and returned in real time.

Projects like this reaffirm both our and SGI Canada’s commitment to improving the broker channel through enhanced technology.

Is there a technology that every insurance company, MGA and broker needs to be aware of going forward?

Our MGA solution, The Underwriter’s Workstation, and our broker solution, The Broker’s Workstation, are built around our leading real-time technology. It’s this technology that drives our integration projects. Greater integration provides a streamlined, real-time data exchange and workflow between the carrier and broker/MGA. For everyone to benefit and better serve the end customer, carriers, vendors and brokers need to work together.

Another important piece of integration is the growth of application programming interface [API] technology. APIs allow systems to ‘talk’ to each other. Insurance systems can use APIs for exchanging data and processing transactions in the areas of rating, new business, renewals, policy changes, cancellations, policy inquiries and more. CSSI has more than 400 API methods supporting carriers, vendors and service companies.

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UPFRONT

MGA UPDATE

MGAs filling the cannabis void MGAs have stepped in where insurers are reluctant to cover cannabis – but challenges remain

problem is there’s not as much data for losses on legal recreational cannabis,” explains Arian Ebrahimi, managing partner at Kase Insurance. “Insurers need to see data – they need to see how the claims happened.”

Apart from the lack of data, Ebrahimi believes another reason why insurers are reluctant to enter the market is due to the prominence of startups. “A lot of companies are coming on the scene because it’s such a hot new industry, and I think a lot of insurers

“I think a lot of insurers are wary of insuring a company that doesn’t have a solid business plan”

Cannabis has been legal in Canada for nearly a year, but major insurance companies have yet to capitalize on the market, which has opened the door for MGAs. “There are now more providers that are cannabis specialists that are operating at higher capacity – they’re adding staff to deal with the inflow of submissions, and we’re seeing expansion there,” says Fuse Insurance president Kevin Lea, who adds that MGAs

NEWS BRIEFS

have an advantage in being able to easily access new insurance markets.

Lea also notes that the volume of insurance business coming from the cannabis industry is driving significant premium growth for every company involved in the sector – something he expects to continue as more business is developed.

But despite the growth, cannabis can still be very tricky to write coverage for. “The

New MGA makes its debut in British Columbia

Stratford Underwriting Agency has opened for business in British Columbia. The new MGA said it aims to offer the best prices for BC residents, more auto coverage options for a wider range of drivers, and specialty coverage for luxury cars and antique vehicles. “Car insurance rates are on the rise, and British Columbians are tired of paying too much,” said Stratford CEO Colin Brown. “We’re on a mission to bring more choice, more savings and a better overall experience.”

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are wary of insuring a company that doesn’t have a solid business plan or solid continuity plan,” he says. “Insurers never want to hear about part-time businesses, and they don’t typically like brand-new startup businesses.”

Ebrahimi believes insurers are playing the waiting game and that major market shifts won’t happen until more data is available, making room for smaller and more nimble MGAs to snap up available business.

“It’s a major industry in Canada, so there’s no way that more insurance companies aren’t going to get into it,” he says. “You’ve already seen a big change in the last six months, and it’s just a matter of more information coming out and being able to follow claims and [developing a] comfort level.”

Arch Insurance purchases techdriven MGA

Arch Insurance North America, Arch Capital’s US and Canadian arm, has inked a deal to acquire Ventus Risk Management. Founded in 2016, Ventus is a technology- and analytics-driven MGU that specializes in coastal commercial property insurance for small and mid-sized businesses, using proprietary technology to improve automation, efficiency and risk selection. Ventus co-founder Stuart Mercer will become CEO of the firm upon close of the sale. At present, Ventus has more than 30 employees spread across four offices.

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Q&A

Matt Taylor General manager PAL INSURANCE BROKERS

Amber Morrison Marketing director PAL INSURANCE BROKERS

Fast fact PAL offers specialty insurance products to brokers in every province and territory across Canada, including everything from coverage for wedding rings to shootto-win hockey contests

Party hard, insure even harder What does it mean to be a specialty provider of event insurance?

A specialty provider of event insurance must have proficiency in this space, particularly when insuring events of all sizes across Canada. The term ‘event’ could encompass anything from a small baby shower or book club meeting to a larger wedding, festival or fair.

Many factors must be taken into consideration when underwriting event insurance, such as whether alcohol may or may not be served, whether there will be live music, and what sort of activities might take place for attendees, such as games or other performances.

Another key factor when insuring events is the ability to offer unique programs for not only an event host or organizer, but also for the individuals or groups who are actively involved within the event, such as servers, vendors, subcontractors, beer gardens, performers, etc.

Which events are the trickiest to insure?

Generally, smaller, low-key reception-style events are much more straightforward to underwrite than larger music festivals, for example. The more complex an event is, the higher the risk becomes and the greater the exposure. Events with higher risk and greater exposure include elements such as live music and other forms of entertainment such as fireworks, mechanical bulls, inflatables like bouncy castles, live animals and so on. The experience and qualifications of the professionals or individuals in charge of that entertainment is also a factor that underwriters must consider. Events with larger amounts of people also incur greater risks by nature.

International Re launches mid-sized captive solution

Lloyd’s coverholder International Re has announced the launch of I-RE SA, a mid-sized captive insurance and reinsurance solution. The MGA will be led by co-founders and co-CEOs Rupert Taylor and Andy Jeckells. I-RE SA will offer mid-sized captives access to A+-rated capacity, an option that the company said had previously only been available to larger captives. I-RE SA’s focus will initially be on US business, but the company said it sees significant opportunities to expand geographically.

What risks should event planners prepare for?

Event planners should ensure that all contractors, subcontractors and anyone involved with the event’s activities, setup, performances, displays, security, etc., carry their own liability coverage for their operations.

Event planners should also prepare for risks such as preventing people from overindulging in alcohol, security at an event – i.e. metal detectors for larger events – safety of the premises to minimize slips and falls, procedures in place if the event gets cancelled, proper fencing if there’s entertainment like mechanical bulls or petting zoos, and safety preparations in place for bad weather if the event is outdoors.

What emerging trends in the event space should insurers be wary of?

One trend in the event insurance space is that many companies are following PAL’s example and offering event insurance products online. While the trend is to ask the least amount of questions on an application and to be as straightforward as possible, brokers should be aware that more details and information, rather than less, are required to properly underwrite events and avoid E&O situations.

Unfortunately, brokers also need to be aware of and make clients aware of the risks involving active shooters or terrorism at events. Evacuation procedures must be in place, and security and safety must be a priority at events that draw large numbers of people. Although active shooter coverage has been considered more for US events, it is a reality that Canadians have also begun to consider.

Burns & Wilcox expands its focus in Atlantic Canada

Burns & Wilcox has named David Harris as its new director of underwriting for Atlantic Canada, charged with overseeing the operations of Burns & Wilcox’s offices in Halifax and St. John’s.

Harris, a 25-year insurance veteran and longtime resident of the region, is the MGA’s first Canadian senior leadership hire outside of its Toronto headquarters. “For me, this role is about trying to expose our broker partners in the region to more of the products and services that Burns & Wilcox can offer,” Harris said.

SSL Endeavour finalizes purchase, makes new hires

Specialist independent Lloyd’s broker SSL Endeavour has finalized its acquisition of aviation brokerage and MGA Worldlink Holdings.

The company also announced it has hired two former JLT executives: Jonathan Palmer-Brown will serve as group nonexecutive chairman, while Hugh Crossland will become group CFO. SSL Endeavour group CEO David Lawrence said the appointments provide “another significant boost to our platform at a time of unprecedented opportunity in our market.”

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UPFRONT

OPINION

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

Death of the spreadsheet Keeping up with the latest technology requires surrendering the comfort of established systems, writes Simon Oddy “TECHNOLOGY. I don’t get it.” Those were the words of my father, an accountant, many years ago. His mental arithmetic was outstanding, and his understanding of his clients’ issues was excellent.

But his career predated today’s technological world, where we use spreadsheets, software and other technology by default. I watched him resist the shift to computers and spreadsheets, fearing that users would simply accept answers and wouldn’t know how to explain the outcome.

With the launch of Microsoft Excel in 1985, spreadsheets became a staple in the field of finance. But to a large degree, my father’s fears were unfounded. Excel still requires the user to understand the problem and the calculations behind the outcome.

My colleagues and I still need to understand the inputs, outputs and the theory behind our calculations.

Recently, I’ve noticed major change once again in the way we use technology.

Surprisingly, I’m now that person I described above, because part of me wants to resist the change. Yet I realize I must embrace it.

Where I work, we have an innovation group that is well on its way to improving and enhancing how we use and leverage technology. We are making huge leaps in the way we work and how we deliver our product, responding to clients’ needs and their user habits.

I sense that, with these changes, we are entering the phase where the spreadsheet will be replaced. But will that take us further away from fully understanding the

18

mechanics of the problem we are dealing with? Will we get to a place where we enter data into a system and blindly accept the outcomes? We hear about drivers who follow GPS technology and end up in a lake (or perhaps that’s just one of my favourite moments from The Office). Are we running full speed down that path in business?

The way in which we and our clients absorb data has changed: both the how and the when. The speed with which people

seem happy with life that way.

Our clients want solutions and resolution. We must provide the tools for them to achieve that – quickly, accurately, efficiently and in the way they want. To provide this kind of service level, we will need to look to technology advancements in what we do and how we deliver. The race is on to create the best app, client platform, algorithm or artificial intelligence platform.

In all sectors, we are looking for apps, software and programs to get us to the answers and help us with decisions. We need to start asking our clients of the future what they would like our deliverables to be.

And we need to gather the knowledge of our younger staff, listen to their concepts and ideas, and bring them into the discussion.

We know that our clients want charts, data maps and models, and are happy to place faith in such things to make decisions. They don’t necessarily need to know the mechanics – just that the technology works and the conclusions are accurate. That does concern me. Will we stop fully understanding the work we do? Will our ability to truly under-

“Our clients want solutions and resolution.

We must provide the tools for them to achieve that – quickly, accurately, efficiently and in the way they want” want updates, revisions and data analysis is driven by our lifestyle habits. Lead times are shrinking as everything is delivered on demand. Within our firm and across the industry, we must meet the new needs of the client.

Delivery is changing, too. No longer will a client request and receive data from the service provider. They want access to it on their time, without the need for interaction.

We can tell ourselves that the face-to-face client relationship is still important, but sadly, its significance is shrinking. I watch my younger colleagues IM one another from 10 feet apart. The need for interaction is fading, it seems. That scares me, but they

stand and explain the problems we are handling lessen? I have to hope not. I do think that a full understanding of the problem will still be needed if we are to explain it.

I don’t have all the answers, but I’m watching for opportunities to embrace the next change. And I’m doing my best to recognize that those around me may have the answers. After all, they are the clients of the future, and we must meet their needs.

Simon Oddy is a partner in the global forensics practice at accounting firm Baker Tilly Virchow Krause. He specializes in quantifying large, complex losses in insurance, fraud, liability and cyber claims cases.

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UPFRONT

GOT AN OPINION THAT COUNTS? Email iba@keymedia.com

OPINION

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PEOPLE

INDUSTRY ICON

AHEAD OF THE PACK As AXA XL continues to merge divisions across the globe, insurance veteran Kelly Lyles is leading her teams to success

IN MORE THAN three decades in the insurance industry, Kelly Lyles has seen her fair share of market-moving activity.

Currently the London-based chief executive of client and country management for AXA XL, Lyles was there for XL Group’s acquisition of Catlin Group back in 2015, as well as for French insurance giant AXA’s blockbuster acquisition of XL last year.

Lyles’ responsibility of overseeing client relationships and country operations in Asia, Europe and the Americas is no easy feat; doing so as part of the leadership team charged with creating the number-one P&C commercial lines platform in the world is another challenge altogether. But her years of insurance expertise have prepared Lyles for this monumental task.

“I started at AIG in 1985 when I joined their graduate program right out of university,” she says. “I had a really good training basis at AIG. They put you through all the different functions, [and] you spend a little time in each. I started as an underwriter, and then I moved to London in 1990, again as an underwriter, to write UK D&O.” At the time, AIG didn’t have many underwriters working on the D&O line in that market, which made the task of crafting policies that much more interesting.

“It was really exciting to move here at

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a time when UK D&O was just taking off,” Lyles says, recalling how the team was creating a need for the product while also developing a theory of liability. “It was fun to be at the front end of a nascent market and on the cutting edge of creating something new. I often look at that as one of the most creative and rewarding times in my career.”

Climbing the ladder Even though Lyles admits she knew little about insurance before she entered the

couldn’t exist without insurance to take away the volatility.”

From D&O, Lyles made her way to running financial lines and then commercial lines. After a four-year stint in Paris with AIG, she joined XL, drawn by the calibre of the company’s leaders.

“At the time, I just fell in love with leadership at XL, which was growing quite a bit, and I thought that [CEO] Mike McGavick and [president and COO] Greg Hendrick packed a punch in terms of their leadership,”

“One of the neat things we did is we decided to invest in a client management function.

We didn’t have one ‘AXA XL way’ of handling clients, so that’s one of the things we’re building for next year” industry, she says it ended up being the perfect match for her skill set.

“I wanted to do something that was a mixture of analytical skills and your own sales skills and personality,” she says, although she quickly learned about the value of insurance.

“It never occurred to me that businesses

Lyles says. “I thought that was the type of innovative, nimble company that I wanted to [be a part of ], so I joined them in September of 2014.”

Today, in managing AXA XL’s insurance presence around the world, Lyles leads teams in units such as strategic client and broker

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PROFILE Name: Kelly Lyles Title: Chief executive, client and country management Company: AXA XL Based in: London Years in the industry: 34 Industry accolades: Lyles was recently named Insurance Woman of the Year by the Insurance Industry Charitable Foundation and Association of Professional Insurance Women

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PEOPLE

INDUSTRY ICON

management, global programs, captives, and portfolio solutions. She is also an award winner, recently walking away with the Insurance Industry Charitable Foundation and Association of Professional Insurance Women’s 2019 Insurance Woman of the Year Award.

Merging of the minds The process to combine AXA Corporate Solutions, AXA Art, AXA Matrix and XL Catlin is still ongoing. Much like AXA XL’s focus on innovative solutions, this move has required an out-of-the-box approach to problem-solving.

“We’re still very much in integration,” Lyles explains. Since October 2018, about

tough, so I think the first thing is, bravo to all of our colleagues who navigated a challenging time. Now we can start implementing.”

As part of this merger of teams, particularly for those that Lyles oversees, all country leaders will be putting operations in their countries together and will now be charged with determining a single process for how to deal with captives and global programs and introduce new functions.

“One of the neat things we did is we decided to invest in a client management function,” Lyles says. “We didn’t have one ‘AXA XL way’ of handling clients, so that’s one of the things we’re building for next year.”

Ultimately, AXA’s purchase of XL was

“So far, we’ve been really successful, and that’s without really being able to do very much ...

That bodes well for the future when we’re able to roll up our sleeves and start working with the legal entities” a month after AXA’s acquisition of XL was finalized, the company’s executives have been consulting with AXA XL’s works council, which represents the interest of workers and is affiliated with a trade union. The executive team has had to outline to the council what the company’s target operating model will look like, where the overlaps were and whether there would be redundancies. That consultation process only wrapped up earlier this summer, giving AXA XL the go-ahead to kick off its global integration.

“We’re just coming out of it now, which means we can start to name [leaders] in countries, but we had to navigate the challenges of integrating different teams and systems while operating as separate companies,” Lyles says. “At times that’s been

22

predicated on revenue synergies – the company recognized the fact that as AXA XL, it can do even more for its global clients.

“There’s the ability now for XL Catlin to offer an AXA motor product to clients, or to provide them climate or parametric products, or to offer clients employee benefits – all of the things that AXA has that XL Catlin didn’t have, as well as some of the specialty products that XL Catlin has that AXA didn’t have,” Lyles explains. “We’re very involved in that cross-sell initiative and how we just write more business. So far, we’ve been really successful, and that’s without really being able to do very much because of the consultation period. That bodes well for the future for when we’re able to roll up our sleeves and start working with the legal entities.”

THE PATH TO AXA XL

1817 The Ancienne Mutuelle group, which would later become AXA, is founded in France

1985 AXA adopts its current name

1986 EXEL Limited, the precursor to XL, is founded in the Cayman Islands

2010 XL changes its name to XL Group

2015 XL Group acquires Catlin Group and becomes XL Catlin

2018 AXA acquires XL Catlin and renames the company AXA XL

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6/10/2018 3:41:43 2:27:46 AM 18/09/2019

SPECIAL REPORT

FIVE-STAR MGAs

Which Canadian MGAs are leading the pack?

IBC polled brokers to find out where MGAs are providing top-notch service – and where they need to up their game

WITH THEIR customers facing ever-evolving risks, brokers need their MGAs to keep pace with the changing times.

In Insurance Business Canada’s annual Brokers on MGAs survey, hundreds of brokers expressed their satisfactions – and their frustrations – with their MGAs and voiced their thoughts on where MGAs needed to improve.

IBC asked brokers to rate their MGAs in 10 categories, including underwriting responsiveness, pricing, product range, compensation and technical expertise. Brokers were asked to rate the importance of each category and to evaluate their MGA’s performance in each one on a scale of 1 (poor) to 10 (excellent).

While brokers still consider underwriting responsiveness and turnaround time the most important factor when choosing an MGA, their other priorities have shifted a bit.

Pricing – brokers’ number-two concern in 2018 – slipped down a notch to number three, below product range. Claims

24

support and customer service – numbers four and five on last year’s list – also swapped places. Technology and automation, brokers’ number-seven priority last year, fell three places to rank as their lowest priority this year.

Unfortunately, brokers’ estimation of their MGAs’ performance also took a tumble this year. MGAs scored lower in nine out of 10 categories compared to 2018 – only compensation saw an improvement. Still, 32 MGAs scored an 8 or higher in at least one category, earning the title of Five-Star MGA. That’s a slight improvement from 2018, when 30 MGAs made the cut, and a significant improvement from 2017, when only 27 earned a five-star designation. In addition, three companies earned the distinction of being named an All-Star MGA by achieving a score of 8 or greater in all 10 categories.

Read on to find out what brokers had to say about what their MGAs are doing well and what they need to improve.

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BROKERS ON MGAs 2017

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FIVE-STAR MGAS 2019

FIVEBR

2019

WHAT ARE BROKERS LOOKING FOR IN AN MGA PARTNER?

2019

2018

100% 80% 60% 40% 20% 0%

Underwriting responsiveness/ turnaround time

Range of products

Pricing

Customer service

Claims support

Technical expertise and product knowledge

HOW WELL DID MGAs PERFORM ON AVERAGE?

Marketing support

Reputation

Compensation

Technology and automation

2019

2018

Technical expertise and product knowledge 8.10 8.19

Overall relationship/communication 7.87 8.34

Range of products 7.79 8.08

Customer service 7.76 8.02

Compensation 7.74 7.55

Claims support 7.69 8.00

Pricing 7.64 7.99

Underwriting responsiveness/turnaround time 7.60 8.04

Technology and automation 7.19 7.57

Marketing support 7.17 7.32

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18/09/2019 4:39:02 AM

BROKERS ON MGAs 2017

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SPECIAL REPORT

FIVE-STAR MGAs

FIVE-STAR MGAS 2019

FIVE-STA BROKE

2019

FIVE-STAR MGAs BY CATEGORY MGA name

Technical expertise and product knowledge

Overall relationship/ communication

Range of products

Customer service

Compensation

Claims support

Pricing

Underwriting responsiveness/ turnaround time

Technology and automation

Marketing support

ABEX Agile Underwriting Solutions AM Fredericks Anderson McTague & Associates Angus Miller April Canada Burns & Wilcox Cambrian Special Risks CanSure CFC Underwriting CHES Special Risk Chutter Underwriting ENCON GroupAssur GroupOne Insurance Services Gryphin Advantage Guardian Risk Managers I3 Underwriting Milnco O2 Insurance Services PAL Insurance Brokers Premier Group Risk-Can Underwriting Managers Signature Risk Partners South Western Group Special Risk Insurance Managers Sports & Fitness Canada SUM Insurance TCB Underwriters Totten Group Trans Canada Insurance Marketing Trinity Underwriting All-Star MGA 26

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SPECIAL REPORT

FIVE-STAR MGAs TECHNICAL EXPERTISE AND PRODUCT KNOWLEDGE FIVE-STAR MGAs

OVERALL RELATIONSHIP/ COMMUNICATION FIVE-STAR MGAs

ABEX

ABEX

Agile Underwriting Solutions

Agile Underwriting Solutions

Anderson McTague & Associates

Anderson McTague & Associates

Angus Miller

Angus Miller

April Canada

Cambrian Special Risks

Burns & Wilcox

CFC Underwriting

Cambrian Special Risks

CHES Special Risk

CanSure

Chutter Underwriting

CFC Underwriting

GroupAssur

Chutter Underwriting

Guardian Risk Managers

ENCON

O2 Insurance Services

GroupOne Insurance Services

PAL Insurance Brokers

Gryphin Advantage

Risk-Can Underwriting Managers

I3 Underwriting

Signature Risk Partners

PAL Insurance Brokers

Special Risk Insurance Managers

Risk-Can Underwriting Managers

SUM Insurance

Signature Risk Partners

TCB Underwriters

Special Risk Insurance Managers

Trinity Underwriting

SUM Insurance TCB Underwriters Trinity Underwriting Brokers rated technical expertise and product knowledge sixth in terms of importance – only 28% of brokers said product knowledge is a vital consideration when they’re looking for an MGA partner, up from 24% in 2018.

Despite that, this was MGAs’ best-performing category this year.

MGAs scored an average of 8.10 out of 10 for their product knowledge, down slightly from last year’s average of 8.19. More MGAs earned fivestar status in the category this year, however: 21 took top honours, compared to last year’s 19.

Unsurprisingly, brokers who rated their MGAs highly in this category praised their “very strong, knowledgeable staff.” Conversely, those who rated their MGAs poorly criticized the staff ’s lack of expertise. “Learn to know risk to understand the product,” one broker implored.

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The overall relationship between brokers and MGAs is one of the most important aspects of the business. Unfortunately, MGA performance in this critical category has slipped, dropping from 8.34 in 2018 to 7.87 this year. Eighteen MGAs earned a five-star designation for relationships and communication this year, down from 20 in 2018.

Prompt and open communication seems to be the key to keeping brokers satisfied with their MGA relationship. One broker described their MGA as “quick to get back to me and easy to get a hold of for follow-up,” while another praised theirs as being “very helpful and eager to assist.”

Brokers were also clear that lack of communication is a sore point.

Those who gave their MGAs low marks in this category complained of delayed responses to email or even a lack of acknowledgment of their attempts to contact the MGA. “Acknowledge an email, even just to say you’re looking into this, so the sender knows you still work there,” one broker said. Another added: “Communication ought to be so much better. Hire more technically trained people brokers can get to know, and then teach them to communicate.”

www.insurancebusiness.ca

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BROKERS ON MGAs 2017

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FIVE-STAR MGAS 2019

FIVEBR

2019

RANGE OF PRODUCTS FIVE-STAR MGAs Anderson McTague & Associates

Premier Group

Angus Miller

Risk-Can Underwriting Managers

April Canada

Signature Risk Partners

Burns & Wilcox

South Western Group

Cambrian Special Risks

Special Risk Insurance Managers

CanSure CFC Underwriting Chutter Underwriting

Sports & Fitness Canada SUM Insurance

GroupAssur

Trans Canada Insurance Marketing

GroupOne Insurance Services

Trinity Underwriting

Gryphin Advantage I3 Underwriting PAL Insurance Brokers

Range of products is a top concern for brokers – 47% reported that it’s one of the most important things they look for in an MGA. Fortunately, it seems MGAs are meeting brokers’ expectations pretty well, judging by their average score of 7.79 – the third highest out of all 10 categories.

While that score is a slight drop from last year’s 8.08, 22 MGAs earned a five-star designation in this category, up from just 19 in 2018.

Brokers’ biggest concern when it comes to product offerings is a lack of variety. Broker after broker commented on this category with just two words: “More product.”

“They are constantly sending out emails featuring products and helpful underwriting information based on the time of year” Even those who are fairly satisfied with their MGA’s product offerings aren’t averse to the idea of more choice. “Maybe a few more offerings in products, but overall happy with what is currently available,” one broker said.

Other brokers, while pleased with their MGA’s product lineup, pointed out that communication about new products is just as important as the products themselves. “They are constantly sending out emails featuring products and helpful underwriting information based on the time of year and products that might be more relevant,” said one satisfied broker.

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BROKERS ON MGAs 2017

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SPECIAL REPORT

FIVE-STAR MGAs

FIVE-STAR MGAS 2019

FIVE-STA BROKE

2019

CUSTOMER SERVICE FIVE-STAR MGAs

FIVE-STAR MGAs

ABEX

AM Fredericks

Agile Underwriting Solutions

Anderson McTague & Associates

Anderson McTague & Associates

Angus Miller

Angus Miller

April Canada

Burns & Wilcox

Burns & Wilcox

Cambrian Special Risks

Cambrian Special Risks

CFC Underwriting

CanSure

CHES Special Risk

CFC Underwriting

Chutter Underwriting

GroupOne Insurance Services

ENCON

Gryphin Advantage

GroupAssur Gryphin Advantage PAL Insurance Brokers Risk-Can Underwriting Managers Signature Risk Partners Special Risk Insurance Managers SUM Insurance TCB Underwriters Trans Canada Insurance Marketing Trinity Underwriting Brokers ranked customer service as the fourth most important quality they look for in an MGA; 45% said it was one of their essential criteria.

That’s a dramatic increase from last year, when just 27% of brokers identified customer service as a top concern.

MGAs received an average score of 7.76 out of 10 in customer service, the fourth highest in this year’s survey but a slight drop from last year’s 8.02. But the number of MGAs earning five-star ratings increased once again, going from 16 to 20.

Brokers largely equate customer service with quick response times.

One broker complimented their MGA on its “good response time on specialty classes,” while another praised their MGA for “consistently getting back to us right away.”

On the other end of the scale, one respondent complained that their MGA was “very hard to get a hold of. The service is slow, depending on the class of business.” Another felt their MGA needed to “hire more customer-friendly staff.”

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COMPENSATION

Guardian Risk Managers Milnco Risk-Can Underwriting Managers Signature Risk Partners Special Risk Insurance Managers TCB Underwriters Totten Group Trinity Underwriting The good news: Compensation was the only category in which MGAs improved their average score from 2018, rising to 7.74 from last year’s 7.55. In addition, 18 MGAs earned a five-star rating in compensation this year, more than double last year, when just eight received the designation.

The bad news: Only 8% of brokers said compensation was an important factor when choosing an MGA, up from 5% last year.

“[Pay] higher commission on prime risks” While they’re largely satisfied with the compensation they receive, brokers had plenty of ideas about how MGAs could improve their approach. One suggested that MGAs should pay “higher commission on prime risks,” while another advised their MGA to “give 20% on straightforward lines of business.” Several suggested that MGAs should consider reducing or waiving their fees, while one broker simply went for the direct approach: “Pay us more.”

www.insurancebusiness.ca

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BROKERS ON MGAs 2017

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SPECIAL REPORT

FIVE-STAR MGAs

FIVE-STAR MGAS 2019

FIVE-STA BROKE

2019

CLAIMS SUPPORT FIVE-STAR MGAs

FIVE-STAR MGAs

ABEX

Agile Underwriting Solutions

Agile Underwriting Solutions

Angus Miller

Anderson McTague & Associates

Cambrian Special Risks

Angus Miller Cambrian Special Risks CanSure ENCON GroupAssur Gryphin Advantage

CFC Underwriting CHES Special Risk GroupAssur GroupOne Insurance Services Gryphin Advantage O2 Insurance Services PAL Insurance Brokers

Guardian Risk Managers

Risk-Can Underwriting Managers

PAL Insurance Brokers

Signature Risk Partners

Signature Risk Partners

Special Risk Insurance Managers

Special Risk Insurance Managers

SUM Insurance

Sports & Fitness Canada

TCB Underwriters

TCB Underwriters Trans Canada Insurance Marketing Trinity Underwriting Claims support wasn’t a top concern for brokers this year; just 30% named it as one of their highest priorities when considering an MGA partner, up slightly from 27% last year.

Brokers rated MGAs’ performance in claims support at an average score of 7.76, putting it in sixth place out of all categories. That’s down slightly from 2018, when brokers awarded MGAs an average score of 8.00 out of 10 in the category. However, more MGAs received top marks this year: 17 earned five-star status, compared to last year’s 13.

“Close the claim faster” Respondents’ biggest concern when it comes to claims is, once again, response time. Brokers want their MGAs to stay on top of claims and respond to questions in a timely manner; one broker praised their MGA for its “prompt claims response to any inquiries and knowledgeable claims adjusters.”

Other brokers, however, said their MGAs needed to work on making “quicker claim payments” and “close the claim faster.”

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PRICING

Trinity Underwriting Pricing wasn’t quite as big an issue for brokers this year as it was in 2018. Last year, 65% of brokers said that pricing was one of their top considerations when choosing an MGA, second only to underwriting responsiveness and turnaround time, but this year, just 45% of brokers named it a top consideration. Even with the drop-off, however, pricing still ranked among brokers’ top three concerns.

“It would be appreciated if policy fees could be negotiated” MGAs saw a slight dip in broker sentiment regarding their pricing this year, scoring an average of 7.64 compared to 2018’s score of 7.99.

Sixteen MGAs earned five-star status for their pricing this year, just shy of the 17 that earned the honour in 2018.

“Prices have been increasing significantly,” said one broker, while another noted that while “pricing is fair, policy fees seem high. It would be appreciated if policy fees could be negotiated.”

Some brokers, however, said that even when MGAs tend to have higher prices, the extra cost is often worth it. “Pricing [is] a little higher than most MGAs, but they have products that no one else will cover,” one broker said.

www.insurancebusiness.ca

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BROKERS ON MGAs 2017

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SPECIAL REPORT

FIVE-STAR MGAs

FIVE-STAR MGAS 2019

FIVE-STA BROKE

2019

UNDERWRITING RESPONSIVENESS/ TURNAROUND TIME FIVE-STAR MGAs Agile Underwriting Solutions Angus Miller Cambrian Special Risks CFC Underwriting Chutter Underwriting ENCON PAL Insurance Brokers Risk-Can Underwriting Managers Signature Risk Partners Special Risk Insurance Managers Sports & Fitness Canada SUM Insurance TCB Underwriters Trinity Underwriting Brokers said underwriting responsiveness and turnaround time is the most important factor they consider when choosing an MGA; 73% named it as one of their top priorities. But MGAs are falling short of expectations in this category – their score tumbled from 8.04 in 2018 to 7.60 this year was the third lowest of all categories. Despite the overall slide, 14 MGAs earned five-star designations this year, just one shy of last year’s number.

Those who rated their MGA highly tended to focus on the underwriting department’s flexibility and rapid response times. “They are willing to discuss different scenarios in order to evaluate the risk rather than flat-out turning away the business,” one broker said. Another praised their MGA for “always responding quickly to referred quotes.”

Those who were dissatisfied with their MGA’s underwriting responsiveness, however, complained of long waits for answers to their questions and insufficient underwriting staff to meet demand. “Underwriting staff are overwhelmed, and response time is very poor,” one broker said. Another complained about waiting a month for a response, saying, “Generally, a quote’s no good if I don’t get it within two days because I’ve moved on to the next market.”

Several brokers pointed out that responsiveness isn’t simply about getting a quote quickly – it’s also about getting prompt answers to calls and emails. “Underwriters have good knowledge but limited time to discuss,” one broker said of their MGA. “There’s a 24-hour response time from a real person to say they will be handling your submission and setting a deadline for getting back to you.”

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TECHNOLOGY AND AUTOMATION FIVE-STAR MGAs Cambrian Special Risks CFC Underwriting Gryphin Advantage PAL Insurance Brokers Premier Group Signature Risk Partners South Western Group Totten Group Trinity Underwriting Despite the insurance industry’s ongoing march toward a digital future, just 5% of brokers rated technology and automation as an important quality when choosing an MGA, down from 7% last year. This area doesn’t appear to be much of a priority for MGAs, either; they scored an average of just 7.19, down from 7.57 last year. Nine MGAs earned five-star status for their tech offerings, up from seven in 2018.

Many brokers who commented on their MGAs’ tech and automation capabilities highlighted the need for better online portals, more web-based forms and online quoting.

Others complained that the technology their MGAs do provide isn’t particularly helpful. “[My MGA’s] chatbot doesn’t really help. I have tried to use it but know just to avoid it,” one broker said. Another noted that their MGA’s policies “still look like they were issued on a dot-matrix printer from the late ’80s.”

HOW CAN MGAs IMPROVE THEIR SERVICE? “Hire more technically trained people brokers can get to know, and then teach them to communicate” “Acknowledge an email, even just to say you’re looking into this, so the sender knows you still work there” “Hire more customer-friendly staff” “Trust your brokers. Treat your brokers like they matter to you” “A bit more commission would be nice” “Speed up replies to quote requests and issuance of policies”

www.insurancebusiness.ca

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BROKERS ON MGAs 2017

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SPECIAL REPORT

FIVE-STAR MGAs

FIVE-STAR MGAS 2019

FIVE-STA BROKE

2019

MARKETING SUPPORT FIVE-STAR MGAs Cambrian Special Risks CFC Underwriting Chutter Underwriting ENCON Gryphin Advantage Signature Risk Partners Special Risk Insurance Managers TCB Underwriters Trinity Underwriting

Only 9% of brokers reported that marketing support was important to them when choosing an MGA; even so, that marked a fairly significant increase from the 5% of brokers who rated it as important last year.

Once again, this category came in dead last again in terms of MGA performance, with an average score of 7.17, down from 2018’s average of 7.32. However, nine MGAs earned five-star status in the category, nearly double last year, when just five MGAs netted the distinction.

“Keep brokers in the loop with regular updates” Most brokers said they either hadn’t received marketing support from their MGAs or didn’t need it. Those who did said what they want most are regular updates on products and coverage.

“Their own [marketing] content would be helpful. Keep brokers in the loop with regular updates on the products being offered,” one broker said. Another advised MGAs to “have the marketing department travel to the various brokers they service.”

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SPECIAL PROMOTIONAL FEATURE

ENGINEERS’ PROFESSIONAL LIABILITY

Built for builders ENCON is celebrating the 50th anniversary of its engineers’ professional liability program. IBC spoke to the company’s brain trust about the milestone, the evolving engineering space and what it takes to sustain successful industry partnerships for the long haul EVEN IN insurance, an industry predicated on longevity, a 50th anniversary is cause for celebration. Endurance on that scale signifies both a rock-solid foundation and an understanding of what long-term relevance truly means: that innovation is only a starting point; that a changing marketplace waits for no one; that what’s being delivered can – and will – always be improved.

The success of Canadian insurance leader ENCON’s engineers’ professional liability

program, first launched in 1969, is the result of that understanding. Known for its underwriting and claims expertise and for offering an exhaustive range of specialty insurance products, ENCON has been everything the company’s partners, brokers and insureds could ask for: adaptable, collaborative and surgically precise.

“We were approached by the national professional associations back in the ’60s,” says Ted Bellinger, ENCON’s senior vice-

president of business development. “They didn’t want just an insurance product. They wanted a sustainable national program.”

Five decades later, that program is still firing on all cylinders.

“It’s a great part of ENCON’s history to have been a chosen partner for the engineering societies,” says ENCON president David Cook. “To have our program endorsed by them over a 50-year period just speaks to the quality of what we are able to provide

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SPECIAL PROMOTIONAL FEATURE

ENGINEERS’ PROFESSIONAL LIABILITY

and the value that the engineers place on the program.”

The power of continuity Engineering has undergone its share of changes over the decades. ENCON’s symbiotic relationship with professional groups – Engineers Canada and the Association of Consulting Engineering Companies of Canada – has allowed the company to stay a step ahead of those changes, preparing its insureds for a growing list of exposures, from the risks brought on by an intensifying focus on sustainability and environmental impact to the data protection concerns that accompany the transition from paper to digital.

According to Steve Wilson, ENCON senior vice-president and leader of the company’s architects & engineers underwriting department, further challenges have resulted from globalization-related exposures – new markets, new cultures, new laws – and the increasing transfer of risk to professionals, but he stresses that “the fundamental job of providing solutions for customers’ insurance challenges will not change.”

“Another constant,” says Karen Corrigan, ENCON vice-president and manager of the architects & engineers claims department, “is ENCON’s long-tenured leadership team, which has ensured a dedication to our commitments and service-first philosophy.

Over the years, several firms have expressed their reluctance to leave ENCON because of the consistency of working with the same people, who know their business and who they can count on. Our building of these consistent, solid relationships has in many ways been the key to our success.”

Meeting change head-on While consistency creates comfort, innovation breeds confidence. ENCON’s success in the engineering realm has largely depended on the company’s proactive willingness to adapt the engineers’ professional liability program to the sector’s changing needs.

In Wilson’s opinion, the evolution of the

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program reflects ENCON’s unique relationship with its clients. “We consider ourselves partners with our insureds,” he says, crediting this synergy for ENCON’s improved offerings around pollution, design-build and worldwide coverage.

The company has created a small firms program, which boasts fixed premiums and a $0 deductible, to simplify the insurancebuying process for modestly sized businesses that are claims-free. It has also partnered with law firms across the country with extensive experience in construction litigation and

professionals like ENCON to give us the confidence to deliver large, complex projects,” he says. “It brings security to our clients. In the rare event that an issue arises, we have a solid and reputable partner in ENCON that will step in as appropriate, should there be an alleged and/or potential error or omission.”

Karakatsanis credits ENCON’s hands-on approach to risk management – providing training and educational materials for frontline staff, reviewing contracts and insurance clauses, making senior executives available to address trends, and assessing new risks

“We rely significantly on the support of professionals like ENCON to give us the confidence to deliver large, complex projects. It brings security to our clients” Anthony Karakatsanis, Morrison Hershfield defending consultants, and is now the insurance manager of the Ordre des ingeniuers du Quebec, the province’s regulatory body for engineers.

“Over the years, we implemented products tailored to the size and type of a firm,” Wilson says. “We offered enhanced policy terms and conditions and ensured our clients were presented with options. Our commitment to driving efficiencies and leveraging new technology has simplified the process of obtaining insurance quotations as a result of shortened turnaround times. For example, submitting an application and obtaining a policy within 24 hours is now a reality.”

One beneficiary of ENCON’s flexible approach has been Morrison Hershfield, an employee-owned engineering practice located in Toronto. As Morrison Hershfield’s business and projects have grown in terms of size and complexity, company president and CEO Anthony Karakatsanis says ENCON has been instrumental in supporting its potential risks.

“We rely significantly on the support of

– for helping Morrison Hershfield reach greater potential.

“It’s an invaluable relationship,” he says.

“ENCON has been a wonderful partner to Morrison Hershfield for many decades. We view it as a true partnership.”

In addition to assisting forward-thinking companies, ENCON president Cook also takes pride in the stability the company has provided carriers, brokers and their clients for the last half-century.

“They’ve been able to rely on ENCON for their insurance needs over that 50-year period and not have to concern themselves with whether insurance was going to be available or whether it was going to meet client needs as defined by the engineering associations,” he says. “They’ve become accustomed to ENCON looking after their liability and claims requirements, recognizing that, if not addressed, it may affect their professional reputation and customer relationships. I think that’s something of which we can be very, very proud.”

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PEOPLE

BROKER INSIGHT

Navigating a hard market Challenging market conditions shouldn’t stand in the way of success.

Lucas Prominski, managing partner at Billyard Insurance Group, explains how brokers can show their worth even in the toughest of times

IBC: How would you characterize the state of the insurance market in Canada right now?

Lucas Prominski: We opened our office at the start of the hard market at the end of 2016, and we’ve had consecutive growth year-over-year, but in the industry as a whole, markets are tightening up on both their rules and rates. We as brokers have to adapt to that, and there are two sides of every coin – we have to both respect the market’s wishes in placing business and help our customers in finding a product that suits their needs.

IBC: What hurdles does a hard market present to brokers?

LP: Markets are cancelling contracts for brokers, so that’s tough. In addition to that, if you’re a brokerage and you only have five or six markets, and they all tighten up in the same way, you’re going to be losing a lot of business both on renewal and selling new policies, so that’s a difficulty for a smaller brokerage.

You can sit back and complain about it, or you can do something to change it, and I think that’s what we’ve excelled in. We’re working a lot harder, but it’s what we’re used to since we opened when the hard market began. We have to adapt or die because you have to adapt to the trends.

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IBC: How can brokers show their value to customers during this period?

LP: We’re in a business of service – yes, we’re selling a product, but clients are only going to stay with you if you service them to the best of your ability. I’ve always said and I’ve always trained my team that service sells, so what we’ve done that’s worked is we’re making a lot more touchpoints throughout the year. The average broker may sell their client a policy and only hear from them if something needs to be changed or if there’s a claim, but we go out of our way to set reminders in our system [to contact clients].

For example, every client gets a personalized birthday email, regardless of how many people are in that household. That’s something that is so small, but at the end of the day and come renewal, the clients will remember,

‘He reached out to me,’ and that’s not something that they’re used to. They might think we sell them a policy and forget about them, but that’s not true.

Another thing that we do is a mid-year follow-up with the clients. Six months into a policy, we call them and [ask], ‘How’s everything going? Has anything changed in the household, and is our service team treating you well?’ I’ve had people compliment that service multiple times because they’re not used to it.

IBC: How does your team stay ahead of rate changes?

LP: Every single renewal going forward and in this past year, we’ve been shopping renewals before the client actually gets the documentation from the insurance company.

THINKING BIG Billyard Insurance Group offers home, auto, commercial, life, travel and pet insurance – in fact, the brokerage’s tagline is “Think BIG. Insurance for everything.” According to president Stephen Billyard, Billyard Insurance Group’s strength is its brokers.

“We’ve built a broad distribution channel and serve a diverse range of cultural segments across Ontario,” he says. “We now have offices in 26 communities, and our brokers collectively speak over 17 languages, including Mandarin, Cantonese, Urdu, Hindi, Punjabi, Arabic, Spanish, French, English, Bengali, Portuguese, Farsi, Korean, Tamil, Telugu, Polish and Ukrainian.”

www.insurancebusiness.ca

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FAST FACTS: BILLYARD INSURANCE GROUP

YEAR FOUNDED 1998

NUMBER OF OFFICES 20

NUMBER OF EMPLOYEES 150

“Yes, we’re selling a product, but clients are only going to stay with you if you service them to the best of your ability” We’ll reach out and touch base with each client, saying, “This is the market that we’re in right now. I just wanted to call and give you a heads up that if you do see a rate increase at renewal, don’t be afraid of it.

We’ve already done our due diligence on our end, and we can place you with Company B for X price and X coverage.”

That’s something a client will appreciate because they’re not going to receive that documentation in the mail and ask why the price went up $1,000 because we’ve already made that touchpoint and we’ve already explained the situation to them.

We and any other brokerage have also been losing business at renewal with price

increases. You lose about 15% to 20% of your retention every year just because of the market. We’re adapting in-house to avoid losing fewer clients mid-policy.

Every brokerage will have clients that cancel for non-payment or because we just weren’t able to make contact with them. On the billing side, we’re sending each client text messages [to combat that]. We had a lot of clients who wouldn’t read their email, or they wouldn’t answer their phone because we’re calling during the same business hours, and they might forget to give us a call back.

By sending text message reminders about billing, we’ve seen a jump in when clients are actioning that now that they don’t have to call us back and they don’t have to open their email.

We’re doing a lot of things – and any brokerage could do the same things – that aren’t costing us a lot of money or time, but they’re the little things that will make the client experience better.

www.insurancebusiness.ca

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SPECIAL PROMOTIONAL FEATURE

BRANDING

What’s in a name?

On October 21, Canadian MGA ENCON will officially adopt a new name and identity as part of a strategy to harness the power of a single global brand for the Victor Insurance family of companies. IBC spoke to the company’s leaders about what’s about to change – and what will stay the same

WHERE DOES a company go after a fivedecade run as one of Canada’s most trusted and innovative managing general agents?

Scaling up remains the goal, but doing so in a way that befits such a company’s reputation and maintains as a top priority the needs of its stakeholders. Otherwise, it’s just growth for growth’s sake.

For David Cook, president of ENCON, taking his company to the next level meant leveraging its connection with parent organization Victor Insurance Holdings (formerly known as The Schinnerer Group), a company that shares ENCON’s passion for providing efficient, leading-edge insurance solutions for a changing world.

The largest managing general underwriter on the planet, Victor Insurance has operations in Canada, the US, UK, Italy, the Netherlands, Germany and Australia. According to Cook, the company’s worldwide reach and experience in different marketplaces will provide untold value for ENCON’s clients, both existing and new.

“We’ve always considered ourselves to be a one-stop shop for property and liability insurance,” he says, “and it’s easier to be that

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if we can import proven solutions rather than developing them from scratch. The investment from our perspective is lower, and the expertise that we’re able to import gives us a head start in the marketplace. We’re able to provide products that we might not be able to launch simply on our own, but because they’re part of a larger effort, we can bring them into Canada.”

carriers,” she says. “Each company already possesses strong brand recognition and equity in their respective markets, but bringing our MGU/MGA companies under one united brand strengthens our presence and our ability to serve.”

By officially adopting the Victor name and brand identity, Cook says ENCON will be able to amplify its offerings, accelerate

“You can expect to see even more product offerings as we leverage the best ideas from all parts of our global organization” David Cook, ENCON Stefanie McKay, chief underwriting officer at ENCON, says bringing the two companies together will result in a sum much greater than its parts.

“By combining our companies under a single brand and optimizing our analytic, technological and capital abilities, we can expand the products and services that we offer to agents, brokers, insureds and

innovation and leverage investments in the Canadian marketplace. “But the solutions will continue to be delivered locally by the team that we have in Canada, who our clients and partners have come to depend on,” he says.

Cook and McKay stress that ENCON’s daily operations will remain the same. “The name will change, and some of the look and

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We’re building on a strong reputation.

ENCON has always brought a nimble, future-focused approach to underwriting.

And soon, we’ll be doing it all under a new name as part of one of the largest managing general underwriters in the world.

Watch for our rebranding as Victor to see what the insurance enterprise of the future can do for you.

UNDERWRITING

TECHNOLOGY

DISTRIBUTION

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CAPITAL

www.insurancebusiness.ca

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SPECIAL PROMOTIONAL FEATURE

BRANDING

feel will change, but all of the products and services will not change. In fact, you can expect to see even more product offerings as we leverage the best ideas from all parts of our global organization,” says Cook, adding that ENCON will maintain its management structure, leadership team and commitment to its partners.

“I look at it as a foundation on which we can build going forward,” McKay says. “If there are any concerns from the brokerage community about a different outlook or a different mindset hampering our abilities in any way, they should know we’ll have more insight and more tools at our disposal to provide them with what they need to be successful.”

44

“The people – the brokers, the insurers and the carriers – who have entrusted us to provide their insurance solutions over the last 50-plus years will be able to continue using ENCON and, after the rebrand, Victor for those same services,” Cook adds.

ENCON’s current roster of clients will benefit from the company’s global network of Victor partners, including Dovetail Insurance, Victor O. Schinnerer & Co. and ICAT, all in the US, as well as Victor’s operations in Europe, the UK and elsewhere. This deep well of insight and fresh ideas can then be adapted to the needs of Canadian businesses and consumers.

If ENCON’s clients want access to various geographies and already have rela-

tionships with the company in Canada, their needs can be exported to – or, conversely, imported from – other geographies.

ENCON can bring more solutions to the Canadian marketplace or provide solutions outside of Canada – something that wasn’t possible before.

“The new Victor name lends itself well to the digital era, and it’s easy for an international client base to pronounce and remember,” Cook says. “But the real idea behind Victor Insurance, as a name and as a company, is that it evokes a sense of winning.

We want to be a victor for our insureds, for our brokers and for our insurance carriers.

And we want to win together. Together, we are all victors.”

www.insurancebusiness.ca

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ADVERTORIAL

P R E M IE R G R O U P O F C O M PA N IE S

Premier Group of Companies celebrates its 30th year in business

A

fter 3 decades, Premier Group is anything but complacent! ‘It feels like only yesterday we were celebrating 25 years and when we look back at everything we’ve accomplished in these past 5 years it’s astounding.’ – says Mo Kaur, recently appointed President & COO of Premier Group of Companies.

MO KAUR

‘In 2014 we had 3 offices in Canada, we now have 5 with the addition of Laval, Quebec and Cambridge, Ontario. Our distribution force has grown from 3,500 to nearly 5,000 in Canada alone, not to mention our 4 offices in the US. This is a far cry from our beginnings in 1989, selling only Marine Pleasurecraft insurance out of a small office in London Ontario!’ – explains Kaur.

Their product offerings have since expanded to a full suite of Marine products as well as Professional Liability, Environmental Lines, Construction Risks, Specialty Casualty and Specialty Personal Lines.

It’s due to this expansion of its business appetite that the organization previously known as Premier Marine evolved into the Premier Group of Companies best known now as Premier. In developing its products Premier has always prided itself in collaborating with its broker partners to develop unique insurance solutions to address the ever changing needs of their broker’s clients. The latest products to be added to their expanding portfolio are; Drones, Stand Alone Equipment Breakdown, Non Profit organizations, Tattoo & Piercing Artists, Cyber and Home Sharing.

JUDY VERHOEF

Judy Verhoef, Vice President, reflects over her 10 years at Premier ‘We’ve seen new MGAs enter the market place, others sell or amalgamate and some reduce their

territory or appetite, however Premier continues to grow. And throughout it all, it’s heartening to see how Premier maintained its old school values throughout these past 30 years, yet managed to also stay with the times in response to the ever changing market place’. Verhoef is referring to the fact that Premier still has real life Receptionists that help direct calls to front line Underwriters rather than an automated answering service that ends in a voice mail, yet they also boast one of the most robust online quoting and policy issuance tools available to brokers which they appropriately call ‘Presto’.

SHELDON BLOOMER

Presto first launched in 2015 with Marine Pleasurecraft as its first offering and now has over 20 products including several Personal, Construction, Commercial, Professional & Environmental Lines.

The tool is available to all brokers, irrespective of volume – which Sheldon Bloomer, National Commercial Underwriter Director of 10 years explains has always been Premier’s position on accessibility of their offerings. Premier continues its investment in the tool in response to broker feedback which has been more than encouraging as brokers can’t seem to say enough about it on the Premier Group LinkedIn page… ‘The Presto quoting and issuing system is by far the best product brokers have available these days. Love to use it.’ and ‘I Love Presto! SO Efficient and Saves SO Much time especially on those last minute Friday afternoon emergencies, as its available to use 24 hours a day, 7 days a week!!’ Bloomer continues to say how much he has enjoyed working for an organization who understands that on-line

portals are a vital part of our emerging industry.

insured are satisfied with the experience.

That has always been consistent and, fundamentally, is why we (Premier) do what we do – yesterday, today and tomorrow.’

What’s next for Premier is hard to say, as Mo Kaur explains – ‘Archaic systems and processes do not hinder us, with our in house underwriting experts, long standing

supportive relations with both domestic and international carrier markets, we have the clout to research and launch a program in as little as three months, and deliver to the needs of our broker partners. We pride ourselves in developing unique products.

With several recent additions to Premiers leadership team and 4 new branch offices over Canada and the US, it should be a clear

indication of our commitment and ability to respond to whatever the future direction will be.’

‘Speaking for all of Premier Team members, we’re appreciative to have been of service to this industry for the past 30 years and aspire to exceed your expectations for another 30.

Cheers to another 30 years!

TINA (WADDICK) JONMAIRE

With Presto and several new products, Premier remains constant. Tina (Waddick) Jonmaire, National Business Development Director, reflects on how things manage to change yet stay the same. ‘Over the course of my 15 years with Premier I’ve had the privilege to work with some amazing people and continue to do so.’ says Jonmaire. ‘We have over 20 employees who have been with Premier for 10+ years and I’m excited to be a part of this team that will take Premier into the future 30.’

Jonmaire’s main focus is to drive Premier’s Broker education/seminar program and manage the Business Development Team – ‘Whether we are at a round table discussion in a Brokers office, hosting an in-house or city accredited educational seminar, attending a Broker function or simply running into our Broker friends out in the community, I assign the success of our longevity to the relationships the entire Premier Team has built with our Broker partners!

DANIELLE (TCHIR) MACDOUGALL It’s also hard to talk about Premier without mentioning their Claims team, Danielle (Tchir) Macdougall, Premier’s Claims Director of 11 Years. ‘I’m proud yet humbled when I hear feedback from our brokers about our claims team and their service’ says Macdougall.

‘Whether it’s a water claim in a mobile home, a multi-million dollar COC fire, or complex liability claim our team treats each loss with the same level of importance and strives to efficiently settle the claim to ensure both the broker and

Cheers!

A toast to all our broker and carrier partners— we want to thank you all for your continued support i n our ‘thirty years’ of business. Today, Premier has become one of the largest Managing Underwriting Agencies administrating over 120,000 policies, over 140 employees, 9 offices across Canada & the US, and a product offering that has grown to include:

• • • • • •

Professional Lines Environmental Lines Construction Specialty Commercial Lines Specialty Personal Lines Marine Lines

Think Premier...for all your Specialty product needs.

Here’s to the next 30 years!

www.premiergroup.ca

ADVERTORIAL

P R E M IE R G R O U P O F C O M PA N IE S

Premier Group of Companies celebrates its 30th year in business

A

fter 3 decades, Premier Group is anything but complacent! ‘It feels like only yesterday we were celebrating 25 years and when we look back at everything we’ve accomplished in these past 5 years it’s astounding.’ – says Mo Kaur, recently appointed President & COO of Premier Group of Companies.

MO KAUR

‘In 2014 we had 3 offices in Canada, we now have 5 with the addition of Laval, Quebec and Cambridge, Ontario. Our distribution force has grown from 3,500 to nearly 5,000 in Canada alone, not to mention our 4 offices in the US. This is a far cry from our beginnings in 1989, selling only Marine Pleasurecraft insurance out of a small office in London Ontario!’ – explains Kaur.

Their product offerings have since expanded to a full suite of Marine products as well as Professional Liability, Environmental Lines, Construction Risks, Specialty Casualty and Specialty Personal Lines.

It’s due to this expansion of its business appetite that the organization previously known as Premier Marine evolved into the Premier Group of Companies best known now as Premier. In developing its products Premier has always prided itself in collaborating with its broker partners to develop unique insurance solutions to address the ever changing needs of their broker’s clients. The latest products to be added to their expanding portfolio are; Drones, Stand Alone Equipment Breakdown, Non Profit organizations, Tattoo & Piercing Artists, Cyber and Home Sharing.

JUDY VERHOEF

Judy Verhoef, Vice President, reflects over her 10 years at Premier ‘We’ve seen new MGAs enter the market place, others sell or amalgamate and some reduce their

territory or appetite, however Premier continues to grow. And throughout it all, it’s heartening to see how Premier maintained its old school values throughout these past 30 years, yet managed to also stay with the times in response to the ever changing market place’. Verhoef is referring to the fact that Premier still has real life Receptionists that help direct calls to front line Underwriters rather than an automated answering service that ends in a voice mail, yet they also boast one of the most robust online quoting and policy issuance tools available to brokers which they appropriately call ‘Presto’.

SHELDON BLOOMER

Presto first launched in 2015 with Marine Pleasurecraft as its first offering and now has over 20 products including several Personal, Construction, Commercial, Professional & Environmental Lines.

The tool is available to all brokers, irrespective of volume – which Sheldon Bloomer, National Commercial Underwriter Director of 10 years explains has always been Premier’s position on accessibility of their offerings. Premier continues its investment in the tool in response to broker feedback which has been more than encouraging as brokers can’t seem to say enough about it on the Premier Group LinkedIn page… ‘The Presto quoting and issuing system is by far the best product brokers have available these days. Love to use it.’ and ‘I Love Presto! SO Efficient and Saves SO Much time especially on those last minute Friday afternoon emergencies, as its available to use 24 hours a day, 7 days a week!!’ Bloomer continues to say how much he has enjoyed working for an organization who understands that on-line

portals are a vital part of our emerging industry.

insured are satisfied with the experience.

That has always been consistent and, fundamentally, is why we (Premier) do what we do – yesterday, today and tomorrow.’

What’s next for Premier is hard to say, as Mo Kaur explains – ‘Archaic systems and processes do not hinder us, with our in house underwriting experts, long standing

supportive relations with both domestic and international carrier markets, we have the clout to research and launch a program in as little as three months, and deliver to the needs of our broker partners. We pride ourselves in developing unique products.

With several recent additions to Premiers leadership team and 4 new branch offices over Canada and the US, it should be a clear

indication of our commitment and ability to respond to whatever the future direction will be.’

‘Speaking for all of Premier Team members, we’re appreciative to have been of service to this industry for the past 30 years and aspire to exceed your expectations for another 30.

Cheers to another 30 years!

TINA (WADDICK) JONMAIRE

With Presto and several new products, Premier remains constant. Tina (Waddick) Jonmaire, National Business Development Director, reflects on how things manage to change yet stay the same. ‘Over the course of my 15 years with Premier I’ve had the privilege to work with some amazing people and continue to do so.’ says Jonmaire. ‘We have over 20 employees who have been with Premier for 10+ years and I’m excited to be a part of this team that will take Premier into the future 30.’

Jonmaire’s main focus is to drive Premier’s Broker education/seminar program and manage the Business Development Team – ‘Whether we are at a round table discussion in a Brokers office, hosting an in-house or city accredited educational seminar, attending a Broker function or simply running into our Broker friends out in the community, I assign the success of our longevity to the relationships the entire Premier Team has built with our Broker partners!

DANIELLE (TCHIR) MACDOUGALL It’s also hard to talk about Premier without mentioning their Claims team, Danielle (Tchir) Macdougall, Premier’s Claims Director of 11 Years. ‘I’m proud yet humbled when I hear feedback from our brokers about our claims team and their service’ says Macdougall.

‘Whether it’s a water claim in a mobile home, a multi-million dollar COC fire, or complex liability claim our team treats each loss with the same level of importance and strives to efficiently settle the claim to ensure both the broker and

Cheers!

A toast to all our broker and carrier partners— we want to thank you all for your continued support i n our ‘thirty years’ of business. Today, Premier has become one of the largest Managing Underwriting Agencies administrating over 120,000 policies, over 140 employees, 9 offices across Canada & the US, and a product offering that has grown to include:

• • • • • •

Professional Lines Environmental Lines Construction Specialty Commercial Lines Specialty Personal Lines Marine Lines

Think Premier...for all your Specialty product needs.

Here’s to the next 30 years!

www.premiergroup.ca

FEATURES

CANNABIS INSURANCE

A budding opportunity Kelli Hunt of Next Wave Insurance Canada tells IBC how brokers can get started in the burgeoning cannabis insurance space

provides cargo insurance to a single logistics company, rather than making it available to each cannabis company individually.

This means the client can partner with that logistics company and know that their cargo is safe and covered, should anything go wrong.

“We took this off the producers’ hands – under this model, it’s not something they have to worry about,” Hunt says. “The company we have appointed only ships high-value products across the world. They have a proven track record and have shipped everything from opioids to Kentucky Derby horses – it’s what they do, all day, every day.”

Dealing with D&O IT’S NOT often that an insurance market can be described as being on a roller-coaster ride, but that’s not such a ludicrous statement for the cannabis space over the past year. This fast-moving industry polarizes opinion and can be the subject of both positive and negative headlines in the same week. The rollout since Canada legalized marijuana in October 2018 hasn’t been entirely smooth, but amid the chaos and uncertainty, there is also opportunity for brokers to stake their claim as a leader in a space that will only continue to expand.

Cannabis is one of the fastest-growing industries in Canada, and as more distributors and producers come on board, savvy business owners are seeking out insurance options to protect their assets – and they’re relying on brokers to translate the myriad complex rules and regulations that underpin the business.

Kelli Hunt is a senior commercial underwriter at Next Wave Insurance Canada, a Toronto-based MGA that was launched to provide insurance solutions exclusively to the cannabis and hemp industry. She says the opportunity presented by cannabis insurance is unprecedented.

“I’ve been in insurance a very long time, and I’ve never seen growth like this from any line of business ever – it’s a global opportunity,” Hunt says. “Brokerages are struggling to find

48

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ways of creating new revenue streams, but cannabis provides a way for them to do that.”

The logistics puzzle Cannabis insurance is fundamental to the operations of various types of companies, from manufacturers and delivery services to dispensaries and laboratories. Each has its own unique set of risk exposures, but one overriding exposure is the cargo risk – getting the product from point A to point B, which,

Another challenging area for cannabis producers is D&O coverage. In fact, Hunt describes D&O for cannabis as the “hardest thing to get placed in Canada right now.”

The most significant issue in D&O is the US exposure, she explains. A lot of cannabis producers are either bringing money up from the States, where marijuana is federally illegal, or they’re starting to put boots on the ground south of the border in preparation for federal legalization. But as long as cannabis remains illegal at the federal level in the US,

“The information is growing daily since legalization, and it’s the responsibility of everyone in the industry to educate themselves” Kelli Hunt, Next Wave Insurance Canada given Canada’s climate and regulations, is always a challenge.

“The main problem with cargo in the cannabis space is that a lot of the insureds involved have been farmers who have been growing on the black market – they’ve never really shipped high-value goods across the country, and they don’t have the experience in doing it,” Hunt explains.

To mitigate transportation risk, Next Wave

many Canadian insurers aren’t willing to touch it from a D&O perspective.

Hunt highlights a number of cannabisrelated class action lawsuits in Canada and the United States that are in the D&O phase right now. She points one involving a Canadian cannabis producer whose greenhouse in Ontario was given a non-compliant rating by Health Canada after plants were discovered growing in unlicensed rooms and employees

provided inaccurate information to the regulator. The decision forced the company to halt sales of nearly 30,000 pounds of marijuana, and its stock has plunged since the news was revealed on July 8.

“That class action lawsuit was launched the next day, and everyone on that insurance tower is on notice,” Hunt says. “They would have had a fairly substantial D&O tower, and I think it’s plausible that coverage is going to respond, proving why the D&O space is so tricky. For example, Next Wave does have the ability to offer some D&O, but it’s not like we’re the saviours of the world when it comes to D&O. And I don’t think anybody’s pretending that they are. We’re doing our best to try to get our clients coverage. It’s expensive and restricted, but at least it’s out there. You

could pay $1 million for $2 million in coverage and $500,000 retention.”

Despite the clear and obvious array of risks that cannabis companies face, many still refrain from purchasing D&O coverage – a move that puts the personal assets of the company’s leaders in the firing line.

“I like to tell people, ‘Does your wife like her cottage and her jewellery?’ because without insurance, they can and will come for those assets,” Hunt says. “So if you don’t have the coverage and something goes wrong, they’re coming for your personal assets because the shareholders need to be paid back.”

Cultivating expertise Many of the businesses servicing the cannabis sector found their genesis in a pre-legalization

world, when they weren’t expected – and didn’t have the capability – to function like fully legitimate companies. In such circumstances, purchasing insurance wouldn’t have been on anyone’s radar. Post-legalization, Hunt says awareness about the importance of insurance is still lacking.

“Right now, because the government is just throwing out all these crazy requirements – a retail store needs to carry $10 million in GL limits in Ontario, and because they’re having to comply with so many weird requests from Health Canada, cannabis companies are just worried about being able to check the boxes instead of making sure they’re properly covered,” Hunt explains. “You have to remember that these insureds operated in the grey markets for very long time, and they never had insurance. They don’t fully understand what it’s for or how important it is to have. So, as an industry, we have to must educate these clients and inform them that insurance is what they actually need versus just a mandatory requirement from the government. We have to make sure that these guys are protecting themselves and not just following the government rules and regulations.”

Although it’s been a challenging year for many cannabis companies, for brokers, the opportunities are just unfolding. Hunt stresses that retail brokers looking to get into the cannabis market should actively participate in discussions around businesses in the sector and the coverages they need.

“This is all new revenue to everybody in Canada, so my message to brokers is become an expert,” she says. “The biggest mistake brokers can make right now is saying, ‘I don’t know anything about cannabis.’ The information is growing daily since legalization, and it’s the responsibility of everyone in the industry to educate themselves. So don’t feel scared about it. It’s the same as anything else. Do you insure somebody who grows cucumbers? It’s very similar with cannabis.

Brokers need to go out and get this business; it’s in every province across the country.”

www.insurancebusiness.ca

49

SPECIAL PROMOTIONAL FEATURE

COMMERCIAL INSURANCE

Tailored solutions Aviva Canada has launched its Global Corporate and Specialty division with an understanding that providing tailored insurance solutions to large corporate and commercial companies facing significant exposures requires two things: a mastery of the space and the support of a valued broker network

WHEN DEALING with large corporate and commercial clients, taking a holistic view of their needs is essential. This is especially true when international exposure exists, as is the case for many Canadian companies conducting business in the US. More specifically, understanding a company’s values and its corporate strategies are necessary to determine its full scope of risk.

That process of research, dialogue and sharing is one brokers and agents have come to associate with Aviva Canada, and the company has placed it at the heart of its new Global Corporate and Specialty [GCS] division. GCS is made up of a dedicated team of client relationship managers, underwriters, risk consultants and claims service managers, who work with large companies to develop flexible solutions tailored to their specific needs.

Maz Moini, COO of Aviva’s GCS, says insuring large companies often demands innovative thinking. “Generally, the breadth of risk is larger, and the risk transfer requirement is more complex. Because of that, they’ll need tailored solutions,” he says, explaining that GCS provides risk transfer solutions to corporates, large companies and purchasing group programs.

Businesses already conditioned to the

50

anxieties of operating cross-border often have a good understanding of their insurance needs. Other companies or purchasing groups might self-insure themselves against losses to a certain dollar threshold. Such sophisticated clients are educated on their risk transfer options by their brokers and can afford to be selective when choosing an insurer.

“They’re looking for insurance partners who can help them come up with creative and sustainable solutions to specific risks

nesses that Canadian clients and brokers are already quite familiar with, including corporate risk, programs, equipment breakdown, surety and special risk.

“In many ways, this is not a new business,” Moini says, “but bringing these businesses together under a single umbrella allows us to put a face to market that really allows our brokers and our clients to understand the broad range of coverage solutions or custom solutions we can bring to them.”

“As a customer’s primary point of contact, broker insight into that customer’s insurance needs is a critical resource for us” Maz Moini, Aviva Canada that they want to cover,” Moini says, “and do that in a way that’s effective and reduces the overall total cost of risk transfer for them.”

Aviva’s commercial insurance endeavours go back decades, so the Global Corporate and Specialty division is no experimental or exploratory offering. Rather, it’s the amalgamation of several experienced Aviva busi-

Providing those solutions requires a specialist approach. Aviva has assembled a team of underwriters to ensure that each client’s exposures are comprehensively evaluated and proactively mitigated.

“We’ve combined over 250 risk management professionals across five divisions under the GCS umbrella,” Moini says, “and

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they’ve got a supporting team behind them that really elevates our value proposition.”

The role played by Aviva’s GCS support staff is invaluable. Claims relationship managers provide a single dedicated liaison for clients dealing with a claim. Client relationship managers ensure that day-to-day contact remains open, collaborative and informative – a value proposition not entirely common in the space. Aviva’s risk consultants and risk specialists identify property and liability exposures that can save clients money and hassle by preventing claims before they happen.

“That group positions us well in the market in terms of our ability to service clients and brokers,” Moini says. “We couldn’t

be more grateful for the work they do for us.”

Aviva has always celebrated its longstanding and mutually beneficial relationship with insurance brokers. Moini says that the success of GCS will depend on Aviva’s continued cooperation with front-line professionals, as 100% of GCS business is placed through brokers.

“The reason why our broker partners are specifically critical in GCS is that there’s no homogeneity in the risk involved,” he explains. “It’s unique and by nature; it has to be customized. So, as a customer’s primary point of contact, broker insight into that customer’s insurance needs is a critical resource for us. Brokers are arguably more critical in the GCS space than perhaps

anywhere else in the insurance business because we really need to partner with them as the carrier to serve them well.”

Maintaining robust relationships with brokers also provides Aviva a steady stream of feedback. Aviva’s broker partners are the first to hear customer concerns, complaints or commendations. By maintaining open channels of communication with brokers, Aviva ensures that those sentiments are heard, evaluated and incorporated into changes that will improve the client experience.

“It’s really important that, through the broker, we’re hearing directly from the client in terms of how we’re doing,” Moini says.

To learn more about GCS, please visit aviva.ca/gcs.

www.insurancebusiness.ca

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PEOPLE

CAREER PATH

FLYING HIGH

The same names and passions have shown up again and again throughout Thomas Taborowski’s career At age 13, Taborowski joined the Royal Canadian Air Cadets program, forging a connection that has lasted for decades.

“My buddy convinced me; he said I could get a free pilot’s licence.

When I was 16, I had the opportunity to write the exam and qualified for a scholarship to the Air Cadet League and became a private pilot. Later, I joined a special branch of the Reserve so I could keep working with and training Air Cadets.”

1977

TAKES TO THE SKIES

1984 GETS OFF TO A GOOD START Taborowski’s insurance career got underway on a high note when he was named Rookie of the Year for making the top sales in Canada for Empire Life. The next few years brought more success and a position moderating the company’s life underwriters course in Toronto.

“They taught us – that was key. The structure was incredible; you just had to apply it.”

1998 OPENS A BROKERAGE After a decade or so working in property & casualty insurance, Taborowski opened his own brokerage, Expo Insurance Brokers, to serve clients in Mississauga and the GTA.

“I had been in the industry for a while at that point and had worked with other brokerages for a number of years, and the time came where I wanted to go out on my own.

It represented greater security for me” 2019 IS RECOGNIZED BY THE AIR CADETS Taborowski’s interest in the Air Cadets has never waned.

His history with the organization includes such honours as being elected a life member and receiving the OPC Distinguished Service Medal. However, being named Director of the Year earlier this year – an award granted to someone who has stimulated interest in the Air Cadets – marked a high point.

52

1983 FALLS INTO INSURANCE

Taborowski’s involvement with the Air Cadets indirectly led to his career in insurance – while on an officer training course for the RCAF Reserve, he was approached by a recruiter for Kingston, Ontario-based Empire Life insurance.

“I had a weird start in insurance. The recruiter convinced me to leave the University of Toronto because there was so much money to be made in insurance, and who wants to be a banker anyway?”

1988 GETS THE KEYS TO A NEW CAREER Taborowski’s next career move came when a friend’s father had a medical emergency while on vacation.

“They said, ‘Hey, Tom, can you do us a favour – show up and let the staff in?’ For a few days, I opened and closed the office. Then they said they wouldn’t be back for a year, and would I like to get into the property & casualty business? They convinced me to try it, so I got my licence through WC McLaughlin.”

2016 GETS A BLAST FROM THE PAST A name from earlier in Taborowski’s career surfaced again when he got a phone call from his old friends at WC McLaughlin.

“They called and said they were ready to take a step back and enjoy the fruits of their labour. So I went and bought WC McLaughlin, and I’ve been running it as a separate company. In January 2020, we will be merging WC McLaughlin into the Expo family as a brokerage. “

www.insurancebusiness.ca

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18/09/2019 3:58:09 AM

IBCA

NOVEMBER 28 | THE LIBERTY GRAND TORONTO

THE BIGGEST, MOST ANTICIPATED EVENT IN THE INDUSTRY CALENDAR Join over 600 industry players and leaders when we reveal the winners of the 4th annual Insurance Business Awards, the premier independent awards in Canadian insurance.

Reserve your table today at www.ibawards.ca

PHOTO BOOTH SPONSOR

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wynward.com | 800-665-3351

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PEOPLE

OTHER LIFE

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

Becoming a ski instructor “made me realize that it’s more tha n a sport; it’s a way of living,” Ethier says.

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Pairs of skis Éthier currently owns

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4

Ski seasons Éthier has spent teaching

Level of Éthier’s instructor certification

KING OF THE MOUNTAIN Moonlighting as a ski instructor gives broker Dominic Éthier an opportunity to embrace Canada’s long winters ON SKIS since the age of 2, it was almost inevitable that Dominic Éthier would become a ski instructor, a role he undertook when he was just 15. “My dad told me I was old enough to become an instructor – and I realized that if I was one, I wouldn’t have to pay for a pass,” Éthier says.

The several years he spent as an instructor at Whistler only cemented Éthier’s fervour for teaching. “It lets me share my passion, push myself and improve my skiing while surrounded by good skiers who will challenge me,” he says.

Even now, Éthier, who also works as a

broker for Quebec-based Deslauriers & Associes, gets a special joy from seeing his students improve. “That’s the fun part,” he says. “Even if they’ve been skiing for ages, there will be a moment where they realize they can ski more efficiently and can do more and do it with greater confidence.”

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FEATURES

EXPERT ADVICE

Determining risk quickly for SMEs THE RELATIONSHIP between a broker and an insurer relies on a strong and collaborative partnership. Part of this relationship entails brokers having some knowledge around what risks an insurer wants to write. Brokers who write business for small to medium-sized businesses need to understand an insurer’s risk appetite to know where they can place their clients’ business quickly.

RSA’s SME Risk Checker That’s where RSA’s SME Risk Checker can be useful. Launched on August 8, the SME Risk Checker allows brokers to determine RSA’s risk appetite across multiple business types, including hospitality, construction, agriculture, retail, realty and mining. Brokers can also search by trade or SIC code to determine how much risk RSA is willing to assume via a ‘good,’ ‘better’ or ‘best’ rating.

“We developed the tool so that we could show our level of comfort on certain risks in a transparent way” James Roberts, RSA “We developed the SME Risk Checker based on feedback from brokers, who told us that it wasn’t always clear whether a certain risk was within our appetite,” says James Roberts, director of SME underwriting and portfolio management at RSA. “We recognized this as a pain point for brokers and developed the tool so that we could show our level of comfort on certain risks in a transparent way.”

When using the SME Rick Checker, brokers

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can quickly find the SIC code they need and receive a rating automatically, while also getting directions on how they can send RSA their submission. The new tool replaces an older version that wasn’t meeting the needs and work pace of today’s brokers.

“The older version wasn’t the most user-friendly and didn’t actually help brokers determine what to do next,” Roberts says. “The SME Risk Checker, on the other hand, features a new and clean interface that is more intuitive and leads brokers to the next step in the quoting process.”

RSA Pro™ integration Another advantage of the SME Risk Checker is its integration with RSA Pro™, an online tool launched in late 2017 that allows brokers to quote and bind SME business. In fact, the tool lets brokers instantaneously bind three

broad business segments: retail, contracting, and business and professional services.

The SME Risk Checker indicates when a risk can be written through RSA Pro™ and directs brokers to the tool automatically. This is especially important, as RSA Pro™ features preferred rates and, much like the SME Risk Checker, is fast and intuitive.

“We integrated RSA Pro™ within the tool to make the process as seamless for brokers as possible,” Roberts says. “As soon as the tool identifies that the SIC code can be written inside of RSA Pro™, a broker will receive a special prompt letting them know that they can write that quote inside the RSA Pro™ tool.”

RSA plans to take broker feedback into consideration to make the SME Risk Checker even more user-friendly in the future. To learn more, visit rsabroker.ca/risk-checker.

www.insurancebusiness.ca

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Want something real?

Real people. Real relationships. Real expertise.

Find out more about our specialty insurance, warranty and surety solutions.

Visit 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 Brokers Association of Canada.

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GLOBAL CORPORATE SPECIALTY

Aviva Global Corporate & Specialty Together, we make a world of difference At Aviva, we pride ourselves on the insurance and risk management solutions that we offer to help our clients protect what’s important to them.

Aviva’s Global Corporate & Specialty division provides our brokers and large corporate and commercial clients with innovative and flexible solutions.

Our specialists work to understand not just the detailed nature of the risk, but the true makeup of the client’s business – its values, people and vision for the future.

Working together, we design tailor-made solutions that exceed expectations and make all the difference - demonstrating a client-centered approach at every interaction that reflects the needs of the business.

Our industry-focused expertise, combined with an emphasis on close broker and client relationships is the result of a unique service proposition with prevention and innovation at its heart.

aviva.ca/gcs

This advertisement provides an overview of Aviva’s Global Corporate & Specialty (GCS) proposition. For exact terms, definitions, limitations and extensions, please refer to the policy.

GCS policies are underwritten by Aviva Insurance Company of Canada. Risk Management and Claims services are provided by Aviva Canada Inc. and a network of external partners.

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2019-09-12 9:40 18/09/2019 3:36:37 AMAM