WWW.INSURANCEBUSINESS.CA ISSUE 9.02 | $12.95
LEADERS OF CHANGE
2021
25 insurance professionals who are moving the needle on diversity and inclusion THE LATEST ON INSURTECH
What brokers can expect from innovations in data, claims and more
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THE PROFESSIONAL LIABILITY LANDSCAPE
How the pandemic has affected everything from class actions to cyber claims
5-STAR AWARDS: CONSTRUCTION
The insurers and MGAs that can deliver for clients in this complex segment
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ISSUE 9.02
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CONTENTS
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UPFRONT 04 Editorial
What’s behind the recent hunger for insurance M&As?
41
06 Statistics
Key data that should be on your radar
SPECIAL REPORT
5-STAR ENVIRONMENTAL INSURERS
31 SPECIAL REPORT
Which insurers and MGAs provide the best policies and service for the environmental sector?
PEOPLE
INDUSTRY ICON
Saskatchewan Mutual Insurance president and CEO Shelley Willick outlines the company’s big plans for 2021 and beyond
18 2
How the industry is addressing the pandemic-driven mental health crisis
10 Intelligence
This month’s big movers and shakers
12 Technology update
Meeting expectations for 24/7 service
14 MGA update
MGAs are more in-demand than ever
16 Opinion C
on
s tr u c tio
LEADERS OF CHANGE
Amid an industry-wide push for greater diversity and inclusion, these 25 men and women have been making real progress
08 News analysis
n
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Why cyber coverage is a must-have in the art world
FEATURES 17 Expert advice
SPECIAL REPORT
Why expertise matters in construction
5-STAR CONSTRUCTION INSURERS
21 Insuring the fintech sector
In a complex sector, brokers need partners they can count on. These 34 insurers and MGAs fit the bill
The art of fine-tuning coverage for financial technology companies
26 What’s new in insurtech?
A closer look at 2021’s likely trends and developments
64 Economical innovation
How Economical Insurance is finding new ways to connect with customers
58 FEATURES
NORTHERN EXPOSURE
The pandemic hasn’t done a hardening professional liability market any favours – so what do brokers need to watch out for?
PEOPLE 62 Broker and advocate
IBAA president Jody Lohr on why it pays to be part of an association
72 Other life
Insurance VP and minister Thomas Watson’s pandemic-driven mission
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UPFRONT
EDITORIAL
In with the new
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s the world eagerly anticipates the day it can finally say goodbye to COVID-19, global insurers are busy prepping their businesses for success in the post-pandemic era. Over the past 15 months, insurance organizations worldwide have been using mergers and acquisitions to streamline their businesses, simplify their operations, shed legacy books of business and redeploy capital with renewed focus. As Bain & Company explained in its latest Global M&A Report, there are multiple factors driving divestitures, including the pressure put on profit pools by low rates, increasingly complex capital requirements and an urgent need for investment in technology. A good example is AIG, which announced in October 2020 its intention to separate its life and retirement (L&R) business from its P&C business in order to create “two independent, market-leading companies.” According to the insurer’s executive management team and board, a “simplified corporate structure” will “unlock significant value for shareholders and other stakeholders.” In February 2021, AIG revealed it had been fielding inquiries from parties interested buying a minority stake in the L&R business.
Insurers are using M&As to streamline their businesses, simplify their operations and redeploy capital with renewed focus There are several drivers of interest in M&A deals at present. Premiums are increasing in many lines of P&C business, and the hardening market promises a fairly high return on investment. Buyer capacity is also there. In North America especially, large legacy carriers are using the low interest rate environment to build up their funding for potential deals. Finally, buyers are looking to double down on what they know. Aon’s US$30 billion bid for Willis Towers Watson is a prime example of this. In creating the world’s largest insurance broker, the two firms could generate close to US$1 billion in cost-saving synergies, giving them more opportunities to drive innovation and deliver more value. If approved, the deal will likely trigger further M&A opportunities as the brokerage behemoth divests assets and removes overlap. This heightened M&A activity seems to be part of the ‘fresh start’ mentality that’s spreading around the insurance industry as it looks to strengthen its armouries in preparation for the post-pandemic boom.
The team at Insurance Business Canada
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EDITORIAL Managing Editor Paul Lucas Senior Editor Bethan Moorcraft Writers Lyle Adriano, Alicja Grzadkowska, Pete Miller, Gabriel Olano, Ryan Smith, Ksenia Stepanova, Mia Wallace Copy Editor Clare Alexander
CONTRIBUTORS
Hayden Kopser, Anastasia Massouras, Lynne Cazaly
ART & PRODUCTION Designer Joenel Salvador Production Coordinators Kat Guzman, Loiza Razon Customer Success Coordinator Bernz Jalandoni
SALES & MARKETING Business Development Manager Desiree McCue Sales Manager Dane Taylor Vice President - Sales John Mackenzie Global Head of Media Marketing 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
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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.
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We are celebrating 10 years! Thank you for all of your support the past decade. With our new partnership with we look forward to many more decades of working together! www.suminsurance.ca
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UPFRONT
STATISTICS CONSUMERS’ INSURANCE NEEDS SHIFT
US AND CANADA
70%
of consumers are interested in usage-based car insurance
3.03%
AVERAGE M&A INSURANCE PREMIUM RATES (% OF INSURED LIMITS)
2018
2.55%
2.65%
2019
2020
M&A ACTIVITY SPRINGS BACK TO LIFE
62%
are interested in insurance for home services such as a smart thermostats and water sensors
70%
are interested in a product that pays three months of income in the event of a job loss
Global M&A activity came to a sudden halt in March 2020 due to the COVID-19 pandemic, but the market is now on the rebound, especially in sectors that were relatively unaffected (or even helped) by the pandemic, such as technology, renewable energy and healthcare/ pharmaceuticals. According to Gallagher, M&A insurance premium rates for Europe and Australasia decreased slightly in 2020, while those in North America and the rest of the world have started to increase. The US market is showing signs of hardening, Gallagher said, and Europe is likely to follow this year due to the resumption of deal-making, as well as the increasing frequency of claim payouts. Demand for cover for distressed M&A and public-toprivate transactions also grew in 2020, Gallagher expects this trend to continue into 2021.
NAT CAT LOSSES SURGE ABOVE AVERAGE IN 2020 After a below-average year in 2019, insured losses for natural catastrophes reached US$78 billion in 2020, blowing past the 10-year average of US$66.5 billion. Last year had the fourth highest annual total for insured catastrophe losses over the past decade.
NATURAL CATASTROPHE INSURED LOSSES 10-year average
$160bn $140bn $120bn $100bn $80bn
65%
are interested in policies that could pay credit card bills Source: EY Global Insurance Consumer Survey, February 2021
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$60bn $40bn $20bn $0
$120 billion
$60 billion
$35 billion
$33 billion
2011
2012
2013
2014
$23 billion 2015
$39.5 billion 2016
$143 billion
$80.5 billion
$53 billion
$78 billion
2017
2018
2019
2020
Source: Summary of Natural Catastrophe Events 2020, Willis Re; all figures in US$
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FRAUD AND IDENTITY THEFT CLAIMS SURGE There was a sharp rise in identity theft cases in 2020, mostly attributed to the COVID-19 pandemic, according to data from Generali Global Assistance. Employment-related fraud cases also skyrocketed due to the high volume of unemployment benefits being distributed.
UK AND EUROPE
1.11%
1.06% 0.96%
2018
2019
YEAR-OVER-YEAR INCREASE, 2019–2020
80%
2020
Identity theft resolution cases
REST OF WORLD 1.28% 1.47% 2018
2019
2.15% 2020
5,630%
Employment-related fraud cases
AUSTRALASIA
220%
1.32% 1.32% 1.18% 2018
2019
ID monitoring inquiries
2020
Source: Gallagher Global Mergers & Acquisitions Outlook Report, January 2021
WOMEN EXPAND PRESENCE IN INSURANCE LEADERSHIP Insurance and reinsurance companies still have a long way to go in achieving gender diversity in leadership positions, but the latest figures from the Swiss Re Institute suggest progress is being made: In 2010, only 58% of insurance and reinsurance companies had women in C-suite roles; by 2019, that figure had ballooned to 75%.
MOST REGIONS SEE UPTICK IN INSURANCE M&A The COVID-19 pandemic didn’t put a huge dent in insurance companies’ M&A appetite in 2020, according to Clyde & Co., which reported 407 deals completed globally in 2020, compared to 419 in 2019. However, overall deal size did decrease in 2020, as there were 25% fewer ‘mega deals’ exceeding $1 billion.
FEMALE REPRESENTATION AT INSURANCE/REINSURANCE COMPANIES With women
C-SUITES 42% 58%
BOARDS 25% 75%
AMERICAS
2019
Without women
181 9%
91%
2019
2010
2019
Source: Gender Diversity in the Re/insurance Industry: For a Sustainable Future, Swiss Re Institute
155 2020
192 2019
MIDDLE EAST AND AFRICA
103 ASIA-PACIFIC
2019
12
69
2020
2010
EUROPE
2019
2020
22% 78%
Source: 2020 Identity & Cyber Protection Recap, Generali Global Assistance
2020
32
75 Source: Finding Opportunity in Adversity, Clyde & Co.
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UPFRONT
NEWS ANALYSIS
Tackling the mental health crisis Health organizations and charities are warning of a ‘second pandemic’ evolving behind the scenes of COVID-19 – a mental health crisis. Insurance companies are increasingly realizing they must act now to protect their staff
MENTAL WELL-BEING in the insurance industry has taken on a new urgency over the last year. A recent report from the World Health Organization revealed that the COVID-19 pandemic has disrupted crucial mental health services in 93% of countries worldwide – at the same time that demand for these services is spiking. The crisis is also shining a spotlight on the need for organizations to really consider the pressing issue of mental well-being.
needed to help break the stigma historically attached to mental health issues, thus encouraging people to seek help as early as possible. “We do see that multiple factors have contributed to a decline in mental health,” Gill says. “Post-traumatic stress syndromes are on the rise. People fear for their health, their families and livelihood. The measures taken to prevent the virus from spreading forced people into isolation and put addi-
“[Our] aim at Allianz is to introduce binding global minimum health requirements to better respond to the demands of the new way of working” Stefan Britz, Allianz There is no doubt that the pandemic has massively influenced awareness around how important mental health is, says Natasha Gill, head of human resources for reinsurance at Swiss Re, who adds that it’s a positive sign that mental health is increasingly becoming part of the conversation. This is
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tional burdens on those who had to juggle home, office and family duties.” The pandemic has shown everyone how dramatically our lives can change overnight, says Stefan Britz, chief human resources officer at Allianz. From remote working to homeschooling and social distancing,
pandemic-mandated processes are having a significant impact on the psyche of those affected. As an employer, Britz says, Allianz is now being asked more than ever to provide employees with the best possible support. Beyond the clear social responsibility companies have to protect the well-being of their staff, the economic cost of mental health to organizations is substantial. The latest Lancet Commission report on mental health estimates that 12 billion working days are lost due to mental illness every year, while mental disorders are projected to cost the global economy $16 trillion by 2030. “We are working assiduously to support the mental health and well-being of our employees in the current situation,” Britz says. “To this end, [we] have defined a global framework that includes the dimensions of mental and physical resilience, motivation and engagement, and work effectiveness. [Our] aim at Allianz is to introduce binding global minimum health requirements to better respond to the demands of the new way of working and to adapt global and local health initiatives to the new normal.” Gill says that by acknowledging how COVID-19 has forced the evolution of working patterns, Swiss Re has been able to
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FAST FACTS: MENTAL HEALTH IN CANADA
20% of Canadians experience a mental illness or addiction problem in any given year
$51 billion is the estimated annual economic burden of mental illness in Canada
implement a variety of innovative well-being solutions. The reinsurer recently celebrated Swiss ReSilience Day, an additional free day of annual leave to thank its staff for their hard work in 2020. In addition, Swiss Re’s getTOGETHER initiative over the holiday season encouraged staff to reach out to each other or local charities in a bid to ensure no one had to spend time alone unwillingly. “I can positively say that Swiss Re has done a lot to support the well-being of our
surveys, to get a pulse on the well-being of their people. Britz says Allianz uses an annual employee survey to monitor its Work Well Index Plus (WWi+), which measures the success of all health and wellbeing initiatives. Over the last three years, this score has improved from 64% to 70%, he says, signalling that Allianz is on the right path. A key takeaway from both companies’ success in protecting the mental well-being
“We can’t expect our people to live up to our vision of making the world more resilient without being resilient on a personal level first” Natasha Gill, Swiss Re people,” Gill says. “We know that we can’t expect our people to live up to our vision of making the world more resilient without being resilient on a personal level first.” A common theme in the approaches taken by Swiss Re and Allianz is the use of data, such as that gathered from employee
of their employees is that many of their initiatives have not been precipitated by the current crisis. The speed and breadth of their COVID-19 response, therefore, was facilitated by the structures they had in place prior to the pandemic. But as the saying goes, while the best
55% of Canadians currently perceive their mental health as ‘excellent’ (down from 68% before the COVID-19 pandemic)
52% of Canadians said their mental health has gotten worse since physical distancing began Sources: CAMH, Statistics Canada
time to plant a tree is 20 years ago, the second best time is now. Mental well-being considerations are more important than ever, Gill says, adding that companies that create an environment of inclusion and psychological safety – and understand that mental resilience is key to a healthy performance culture – will win in the long run. “It will be a differentiator in attracting talent and key for people to bring the best version of themselves to work,” she says. “And frankly, who wouldn’t want to work in a company that is human-centred?”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
ARAG Group
DAS Legal Protection
The merger of the two Toronto-based firms brings together two rival MGAs in Canada’s legal expense insurance market
Archway Insurance
CD Anderson Insurance
Archway’s purchase of the family-owned brokerage marks its expansion into New Brunswick’s Capital Region
Echelon Financial Holdings
Insurance Company of Prince Edward Island
Already a majority stakeholder in ICPEI, Echelon has purchased the remaining 25% of shares to take full ownership of the company
HUB International
Galon Insurance Brokers
Saskatchewan-based Galon Insurance Brokers offers personal, commercial and agribusiness insurance
Navacord
Penmore Benefits
SME-focused Penmore Benefits will continue to operate independently under the Navacord umbrella
Waypoint Insurance
GNK Insurance Services
GNK has been providing insurance in BC and Alberta for more than 85 years
Westland Insurance Group
AGI Insurance; Dick Agencies Insurance Brokers; Folgizan Insurance
Westland continues its 2021 M&A spree with the acquisition of three Saskatchewanbased brokerages
a
AXA XL launches tailored builder’s risk programs
AXA XL’s North American construction unit has rolled out tailored builder’s risk insurance programs for projects that incorporate mass timber, a group of engineered wood products that’s gaining popularity in North America. “The insurance industry has long been wary of the risks of wood construction,” said AXA XL’s Joe Vierling. “Fortunately, given our clients’ attention to risk management and the growing availability of technology that can help monitor buildings during construction, we’re confident we can successfully extend capacity to cover carefully managed mass timber construction risks.”
ARAG Group acquires key rival
ARAG Group, a provider of legal expense insurance (LEI) with operations in 19 countries, has made a deal to acquire DAS Legal Protection from the Munich Re/ERGO Group. The agreement brings together two rival MGAs in Canada’s LEI market, both of which offer a comprehensive range of legal expense products and legal services for brokers, underwriting agents, and insurers in Canada, targeting businesses, families, and landlords. “With this acquisition, we’re striving to expand and strengthen our existing operations in Canada,” said ARAG board member Dr. Renko Dirksen. “With the DAS sales network and experienced team, we’re complementing our current Canadian activities. It will also allow us to leverage synergies, accelerate growth, [and] support economies of scale and scope.”
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APOLLO adds D&O product to digital marketplace
APOLLO Insurance Solutions has added a new private company D&O product to its APOLLO Exchange digital marketplace. Offered through Berkley Canada, the new product offers limits of up to $2 million and is available for more than 1,000 different classes of business. It is available for companies with up to 100 employees and revenues and/or assets of up to $50 million, and it includes a monthly payment option. As with many of the products offered on the APOLLO Exchange, brokers who facilitate the sale of the private company D&O product will receive a 20% commission.
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PEOPLE Foxquilt rolls out online platform for small businesses
Insurtech Foxquilt has unveiled Foxden, a new underwriting platform that allows small business owners to quote, bind and purchase customized business insurance online. Foxden’s initial launch includes insurance options for health and fitness professionals, home contractors, creative entrepreneurs, personal coaches and assistants, and pet service providers. According to Foxquilt co-founder and CEO Mark Morisette, Foxden is designed to “support the modern business customer and their specific business” by allowing users to purchase only the coverage options they need.
NFP introduces personal cybersecurity offering
NFP has launched a new cybersecurity product designed to cater to individuals’ personalized coverage needs. Offered in partnership with cybersecurity specialist CyberScout, NFP’s new DigitalShield product offers coverages from $100,000 to $1 million and provides protection for eight key cyber vulnerabilities, including cyberattacks, ransomware, identity theft, cybercrime, smart devices and wearables, cyberbullying, reputational damage, and cyberstalking. DigitalShield users have access to 24/7 support via CyberScout for a variety of cyber incidents.
Portage Mutual debuts new online platform
Manitoba-based insurer Portage Mutual has partnered with Guidewire to launch a new online platform designed to speed up the claims process for the insurer’s personal, agricultural and small business lines. The introduction of Portage Mutual’s new ClaimCenter platform represents the completion of the first phase of its legacy system replacement strategy. The next phase will involve the implementation of new systems for policy administration and underwriting (PolicyCenter); billing (BillingCenter); and client data, rating and reinsurance management.
NAME
LEAVING
JOINING
NEW POSITION
Christopher Aloussis
Insurance Institute of Canada
APOLLO Insurance Solutions
Broker success manager
Joseph Beesack
Willis Towers Watson
NFP
Head of analytics, Complex Risk Solutions Group
David Blanchard
Totten Insurance Group
APOLLO Insurance Solutions
VP, compliance and underwriting operations
Dan Buch
ClaimsPro
Sedgwick
Executive general adjuster
Charles Christopher
Willis Towers Watson
NFP
Head of captives, Complex Risk Solutions Group
Joseph El-Sayegh
SCOR
Lussier Dale Parizeau
VP, commercial services; practice leader, risk management
John Haas
Willis Towers Watson
NFP
President, Canadian operations
Bryan Kinney
Sovereign Insurance
APOLLO Insurance Solutions
VP, product development
Sonia Kundi
Aviva
Zurich North America
Chief risk officer, Canada
John Slattery
N/A
Sedgwick
VP, condominium and strata accounts
Zurich appoints chief risk officer for Canada
Zurich North America has named Sonia Kundi to the role of chief risk officer for Canada. Based in Toronto, Kundi will ensure that risk frameworks and controls are in place and executed effectively to mitigate risk to the company. She will also serve as a risk champion on various committees and provide management reporting and support for local regulatory risk requirements. Kundi has more than 15 years of global insurance experience, with a proven track record in both market and group roles in the UK, Ireland, Canada and Australia. Prior to joining Zurich, she was a senior enterprise risk management leader at Aviva.
NFP names president of Canadian operations
NFP has appointed John Haas as president of NFP Canada, charged with overseeing all strategic and operational aspects of the company’s business in the country and collaborating closely with the current leadership team to advance NFP’s culture and create value for clients. Haas has more than 30 years of industry experience, most recently serving as executive vice-president, Canadian corporate risk and broker leader, and North American natural resources leader at Willis Towers Watson. “NFP’s leadership has established an impressive foundation in Canada that includes specialized expertise, deep relationships and talented people,” Haas said. “I look forward to working together, continuing the momentum and elevating our results across the business.”
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UPFRONT
TECHNOLOGY UPDATE NEWS BRIEFS Agribusiness insurtech Farmers Edge goes public
Winnipeg-based insurtech Farmers Edge has raised around $125 million in its Canadian initial public offering, which debuted on the Toronto Stock Exchange under the ticker symbol FDGE in early March. Shares of the IPO were offered at around $17 each; Bloomberg reported that the price rose as high as $20.50 during the company’s first day of trading. Five investment banks participated in the IPO, led by National Bank of Canada and CIBC, and they have an option to acquire an additional 15% of the offering.
Lloyd’s achieves milestone in its digital transformation
Lloyd’s has published the first version of its Core Data Record (CDR), which aims to enable standardized, quality data to flow through the Lloyd’s market to improve operations, reduce the cost and effort of doing business, and improve customer service. The publication is a key milestone for Lloyd’s Blueprint Two program, the second phase of its strategy to digitize the market. Lloyd’s is collaborating with ACORD to adopt the global standards already used in the London market and internationally. It is also conducting a market-wide consultation to seek input and feedback on the first version of the CDR.
Whitespace Software joins forces with Verisk subsidiary
Whitespace Software, which provides digital placing technology to the reinsurance market, has signed an investment and acquisition agreement with Verisk subsidiary Sequel. Sequel’s investment will enable Whitespace to accelerate development and expand its
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capabilities. Whitespace will also gain access to Sequel and Verisk’s support, people, and capital resources while maintaining its brand and operational autonomy. “The combination of Whitespace with our pricing, distribution and policy administration applications creates unique and powerful capabilities for the specialty market,” said Sequel CEO Ian Summers.
Aon and Nayms collaborate on cryptocurrency pilot program
Aon has teamed up with insurtech platform Nayms to support cryptocurrency investors by insuring crypto risk. The two companies will conduct a pilot program with Teller Finance, a decentralized lending protocol, to highlight the ability to scale cover efficiently by matching cryptocurrency assets to liability. Specialist insurer Relm Insurance will serve as the underwriter for the pilot, which Aon touted as the first blockchainenabled placement of insurance ever conducted with regulated, professional insurance agencies.
Beazley launches digital business unit, announces new partnership
Specialist insurer Beazley has rolled out a new digital business unit and named a new partner to provide enhanced risk management, prevention and response services. The Beazley Digital unit will spearhead a new approach to how the insurer develops, underwrites and delivers digital insurance services to clients and brokers. The new unit’s responsibilities include enhancing the capabilities and reach of the myBeazley online platform. In addition, the company named Praesidium as the provider of enhanced risk management, prevention and response services for Beazley Safeguard policyholders.
Helping brokers go digital The pandemic has only increased customers’ digital expectations – so how can brokers rise to meet them? The so-called ‘new normal’ is anything but normal. Business once conducted in person is now as contactless as possible, and physical stores must also maintain a digital presence if they want to survive. The same goes for insurance – but while large insurance companies have the resources to prop up their own digital presence, the same can’t always be said of smaller brokerages. Recognizing this, Vertafore Canada recently enhanced its digital offerings for brokers. The company’s client digital experience platform, InsurLink, gives brokers the ability to allow customers to view their insurance documents and pay their premiums online. “InsurLink is the only solution available to Canadian brokers that is a true digital storefront, not just a document delivery system,” says Stacey Miranda, director of product management at Vertafore Canada, who adds that customers want to be able to do more than just view policy documents and check proof of insurance. “They want to be able to see outstanding balances and pay online immediately, just like they would for almost any other product or service they buy today,” she says. “The expectation is that they can engage with their broker for a variety of reasons, such as to make policy change requests or submit loss notices, 24/7.” Vertafore Canada has also enhanced its broker management platform, SIG, with the addition of new dashboards that give brokers
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more actionable insights on renewal comparisons and portfolio management. “Knowledge is power,” Miranda says. “We empower our brokers by offering data insights that relate to their customer relationships, actionable tasks and inform their larger broker strategy. Our portfolio dashboard allows a broker to immediately understand the value of a single account or unique collective accounts.”
“The expectation is that [customers] can engage with their broker for a variety of reasons, 24/7” So will these new customer expectations give birth to a perfect broker management system? Probably not – Miranda believes there’s no way to create a single, ‘perfect’ platform that works for all brokers. “Brokers vary from small family-owned businesses to large multinational organizations, so I am not sure there ever can be something we would call an ideal BMS as a single item,” she says. “Brokers instead should look for technology partners that understand and respond to their unique needs.” She adds that when building tools for brokers, it’s important for tech providers to create an ecosystem that responds to a broker’s current and evolving needs in a way that scales with them. And she stresses that it’s critical for broker management system developers to be the broker’s partner, focused on the actual people behind each transaction.
Q&A
Dara Banga Founder and president DSB CLAIMS
Years in the industry 23 Fast fact Since launching in 2012, DSB Claims has established itself as a nationally recognized, award-winning claims management company
Claimstech to the rescue How has COVID-19 impacted claims management? COVID-19 has affected claims operations in many ways, including reduced claims volumes, employees working from home, and lockdown and mobility restrictions, all while still requiring companies to deliver stellar claims experiences to policyholders. At the beginning of the pandemic, there was a sharp decline in the number of claims being reported. Four of the top 10 insurance companies estimated that property claims were down 40%. Claims volumes did eventually return to pre-pandemic levels in September, with CATs in Alberta bringing up claims volumes in Western Canada. Closing offices also affected claims managers’ operations. Claim adjusters, staff adjusters and some independent adjusters had to set up their offices at home, relying on technology to bridge the communication gaps. Everything from web-based conference systems to document management and productivity tools like Encircle – DSB Claims was the first claims management firm to partner with Encircle in 2017 – enabled claims adjusters to interact with policyholders and manage claims remotely. Similarly, with most of the country in various levels of restrictions, attending loss sites directly became a challenge.
How has technology helped claims managers during the pandemic? Many different technologies have been adopted as a result of the COVID-19 pandemic. Most of them have focused on capturing loss details and pictures remotely, as well as speeding up the reporting and settlement of a claim. Encircle is one technology that not only captures loss details remotely, it is also easy to deploy and use in minutes. This is beneficial to both the DSB Claims adjuster and the policyholder. It gives DSB Claims the ability to connect with policyholders at first notice of loss to instantly receive photos and videos while enabling them to read and sign documents remotely.
Are there any developing technologies that can drastically improve the claims process for customers, carriers and brokers? It’s been exciting to watch the innovation and change in the P&C industry over the last few years. I have noticed three technology trends that will drastically change the claims process: open-source technology via API integrations, communication and claim workflow platforms, and 3D technology. In regards to open source technology and API integrations, platforms like Encircle are integrating with Guidewire, Matterport, Virtual Claims Adjuster – the claims management platform that DSB Claims utilizes – and more to assist our team in communicating with carriers, brokers and our customers. In addition, communication and claim workflow platforms like Encircle are continuing to invest in features to easily document and communicate between customers, carriers and brokers. Lastly, 3D technology platforms like Matterport and Hover are investing in measurement and 3D images to assist in interior and exterior documentation.
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UPFRONT
MGA UPDATE
Riding the postpandemic wave MGAs have been able to thrive during COVID-19 – so what can they do to keep that momentum going?
crisis had less of an impact on their business. “The new normal is a fertile ground for MGAs, bringing formidable opportunities to capitalize on while presenting minimal risks,” he says. “In fact, MGAs’ biggest challenge in this environment of growth is finding talent to fill this demand, as well as finding additional capacity providers to handle the submissions.” Masnyk believes that the more brokers deal with MGAs, the more they’ll come to understand that MGAs provide exceptional
“The new normal is a fertile ground for MGAs, bringing formidable opportunities to capitalize on”
While many businesses have struggled to survive during the COVID-19 pandemic, the MGA sector has been growing. Steve Masnyk, managing director of the Canadian Association of Managing General Agents (CAMGA), notes that CAMGA members have seen new premium growth of 20% to 30% year-overyear, even during the bleak period of 2020. “There are several reasons for this,” he says. “Firstly, a hard market in the commercial space has been upon us for several years,
NEWS BRIEFS
so naturally insurers exit certain classes of business, which get picked up by MGAs. Secondly, over a decade of low interest rates is forcing carriers to shed moderately profitable classes through capacity arrangements with MGAs, boosting the return on that capital and making their overhead costs disappear while retaining the capital risk/returns.” Masnyk adds that because MGAs are a lot more nimble and can innovate new products faster than larger insurers, the COVID-19
CHES Special Risk introduces event liability
CHES Special Risk has launched a new special event liability product in anticipation of a surge in demand once in-person events resume. The product includes coverage for thirdparty bodily injury and property damage that might arise from the event, including financial losses and injuries such as foodborne illness. CHES said its decision to launch the new product was driven by the approaching summer events season, as well as the lack of event liability insurers in the market in the wake of the pandemic.
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underwriting expertise, especially for niche risks. “You are not dealing with a computergenerated quote – you are dealing with an actual underwriter who will listen to a client’s story and negotiate,” he says. And while the pandemic has forced insurance companies to explore more direct ways to sell to customers, Masnyk isn’t worried that this might put a dent in MGAs’ business. “On the contrary,” he says, “MGAs are excited to play a more prominent role in the market as the underwriters par excellence, as well as to be moving into a new era of more structure and professionalism.”
Commonwell and Red River form new MGA
Commonwell Mutual Insurance Group and Red River Mutual have teamed up to create a new agriculture-focused MGA. The new venture will help Commonwell and Red River address existing challenges around customer expectations by giving clients the ability to access expertise and coverage in the agriculture space. The new MGA plans to focus on supplementing existing relationships and experience with new approaches and products, while creating opportunities to expand broker relationships and increase growth.
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Q&A
Lisa Clayton Executive vicepresident and chief operating officer MILNCO INSURANCE BROKER SOLUTION CENTRE
Years in the industry 27 Fast fact Clayton, along with business partners Paul Poganiatz and Patrick Lien, purchased a minority stake in Milnco Insurance at the end of 2020
How a top MGA dealt with COVID-19 Milnco was one of Insurance Business Canada’s 5-Star MGAs in 2020. How does your company plan to maintain its top performance this year? Milnco Insurance is proud to be selected as a 2020 5-Star MGA. In 2021, we continue striving to provide outstanding service and turnaround times, as well as a wide range of products, to our partner brokers. We believe these factors, combined with continued open communication and an expanded digital presence to our valued broker partners, will help us maintain our 5-Star standing for years to come.
In 2019, Milnco launched a new digital strategy, including a revamped website and social media presence. Do you have any more plans to expand your digital presence now that so much business is being conducted online? Yes, we are definitely expanding our digital strategy. In 2020, we partnered with USLI to offer a wide range of their products via online and phone quoting directly from our website, which has been a huge success to date. We are also working with a software developer to provide portal access for our valued broker partners to quote Milnco products online, obtain policy documents and request specific types of endorsements online. This is in the preliminary stage at the moment, and we are excited to be working towards this, as it will provide added value to our brokers.
Merlin Underwriting unveils rebrand to TruStar
Merlin Underwriting has rebranded as TruStar. With a portfolio of specialty insurance solutions across the commercial, professional and financial lines segments, TruStar will focus on building digital tools to enhance underwriting precision and portfolio analytics, enable a collaborative sales experience for brokers, and streamline product delivery for customers. To better position itself in the specialty insurance market, TruStar said it will continue to invest in its product shelf and service capabilities.
How have you been keeping in touch with the brokers you work with during the pandemic? As everyone can attest, 2020 was an unprecedented year for sure. Our industry is very relationship-driven, and keeping in touch with our brokers and insurer partners with in-person meetings came to a halt very quickly when the pandemic hit. Technology has been amazing to keep these relationships thriving. We have been making use of all types of technology to do this – Zoom, TeamViewer, email. Of course, picking up the phone and speaking with a person is still by far the best communication, aside from in-person meetings. We are really looking forward to the day restrictions are lifted and it is safe for everyone to meet in person again.
As a provider of specialty insurance to tech companies, how has that business been since the transition to remote work? Did claims and cyber insurance uptake increase as more companies began to experience cyber issues? At the beginning of the pandemic, there were a lot of inquiries regarding coverages and if changes were required to their policies; however, this has slowed substantially. We do have a slight uptick in new submission requests for cyber coverage, for which we are able to provide terms. Fortunately, we have not had any cyber claims or situations arise directly from insureds working remotely.
APOLLO Insurance Solutions joins CAMGA
APOLLO Insurance Solutions has joined the Canadian Association of Managing General Agents (CAMGA), which works to set the standard for MGAs in Canada and to engage with federal and provincial bodies, government bodies, and regulators. “Our membership with CAMGA is a testament to our long-term commitment to contribute to shaping the MGA industry,” said APOLLO’s Marco Andolfatto. “The entire APOLLO team is excited to explore the opportunities that our membership brings.”
Falvey Cargo Underwriting adds new AVP
Falvey Cargo Underwriting has welcomed Danielle Jackson to its team of specialized underwriters. As an assistant vice-president for Falvey, Jackson will be responsible for managing and developing a profitable cargo insurance portfolio, including underwriting management, production and broker/ client-centric strategic initiatives. She has more than 12 years of experience in marine insurance, most recently serving as a senior commercial underwriter at Intact Insurance.
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email insurancebusiness@kmimedia.ca
Where cyber meets art Fraudsters are turning to technology to victimize art collectors, making first-party cyber coverage a necessity in the art world, writes Hayden Kopser FOR AS LONG as fine art has existed, thieves have sought to steal it. Though criminals have become increasingly sophisticated and capable of using digital methods to take down the computer systems of major companies and even central banks, they have kept the art world squarely in their predatory sights. Due to the pandemic, art deals are increasingly being conducted wholly or partially online. With this shift, the methods of stealing art and the money intended to buy it have multiplied, and so too has the importance of firstparty cyber insurance for families and entities in the fine art space. In 2020, numerous headlines detailed the continued legal fallout over a 2018 email spoofing scam that was used to fraudulently obtain a wire transfer of $3.34 million intended for the purchase of a painting by landscape great John Constable. This was no small fraud – and, making matters more worrisome, the parties involved, a London dealer and a Dutch museum, were by all accounts respected and legitimate organizations. Two major lessons from this incident are that reputable dealers and buyers are far from immune to fraud, and there is a strong and growing need for cyber insurance to serve as a backstop for parties impacted by electronic fraud in art transactions. The topic of art-related cyber fraud also brings to mind the curious case of Angela Gulbenkian, the supposed art scion turned accused fraudster, whose alleged actions serve as a human analog to a well-run digital scam. Married to a distant relative of the prominent art-collecting Gulbenkian family, she is
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accused of using her married name to pad her résumé and present herself – quite successfully, it would seem – as an art expert. Ultimately, Gulbenkian’s masquerade as an art powerhouse ended like most masquerades: Her mask was removed to reveal something quite different and far less elegant than what was initially presented. However, as with many fraudsters, nearly everything checked out at first glance. Her last name was real, and she apparently knew enough about art to talk the talk. Eventually, the façade
knows what to look for – they might spot a single letter missing or added to an email address. Perhaps they will pick up the phone to call a seller and verify that emails with wire transfer instructions are accurate and legitimate. Often, simple acts like spotting a minor inconsistency or involving a disinterested third party to help authenticate a transaction can save thousands or millions of dollars, not to mention reputations. Cyber insurance can fill the gap when preventative measures fail – so it would be wise for all parties involved in major art transactions to require proof of adequate firstparty cyber insurance before agreeing to a deal. Having enough cyber coverage in place for first-party financial loss would allow for a smoother indemnification process in the event of fraud, rather than leaving costly litigation as the only remedy for an injured party. Art fraud leaves in its wake a unique form of embarrassment that can only be experienced when one is fooled about a highbrow topic on which they consider themselves an expert. Preventative measures are of primary importance, and though cyber insurance cannot fully remedy a damaged
“Having enough cyber coverage in place would allow for a smoother indemnification process in the event of art fraud, rather than leaving costly litigation as the only remedy” began crashing down when Gulbenkian was alleged to have accepted $1.53 million for a Yayoi Kusama pumpkin sculpture, which she neither possessed nor had the authority to sell. Though there are ongoing legal cases against Gulbenkian, because much of the negotiation for the piece took place via electronic means, first-party cyber insurance could have indemnified the Hong Kongbased victim of her fraud. Aside from the large price tags involved, these two cases are similar to common online scams. Many, if not most, feature numerous signs of legitimacy. Yet if one looks closely – and, of equal importance,
reputation, it can be used in many cases to indemnify those who find themselves the financial victims of art-related cyber fraud. Commercial art entities, as well as ultra- and high-net-worth individuals and families with collections, must develop preventative action plans and consider purchasing cyber insurance to protect their financial exposure to art fraud. Hayden Kopser serves as president of North Improvement. A self-taught app developer and art lover, he specializes in protecting high-net-worth families and their collections from modern risks.
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FEATURES
EXPERT ADVICE
Built for success Steve Schmelzle chats with IBC about RSA Canada’s award-winning construction and contracting proposition IN CANADA’S ultra-competitive construction insurance market, any time an insurer can be recognized for going above and beyond is “a wonderful accomplishment,” says Steve Schmelzle, leader of the Construction and Contracting Centre of Excellence (COE) at RSA Canada. “It’s even more special when that recognition comes directly from our trading partners – our brokers,” he adds, referring to RSA Canada’s 5-Star Award in construction insurance from IBC. “Project construction has always been a major focus at RSA Canada, and being recognized in this manner really solidifies our construction proposition.” RSA Canada launched its Construction and Contracting COE in 2020 with the aim of creating a national approach to project construction that is used by regional underwriting experts across five regions. Through the COE, RSA Canada’s broker partners across Canada all have access to the same product, the same approach and the same risk appetite. “We have provided clarity to our broker partners and our underwriters that RSA Canada will provide the same service to an insured in Vancouver as we would to an insured in Toronto, Quebec or Halifax,” Schmelzle says. “We have presented our national and regional broker partners with one consistent, singular voice – which I believe has resonated and may be relevant in our 5-Star Award.”
A diverse risk appetite RSA Canada’s regional expertise, through the use of 15 dedicated construction underwriters, has enabled it to build a diverse risk appetite and product offering. The core of its project
construction business revolves around ICI (institutional, commercial and industrial) projects, in which it has industry-leading capacity and can write both new construction and complex renovations. The insurer supports its ICI business with residential mid-rise and high-rise construction – a section of the market that has grown more challenging. “Residential projects are becoming larger and more complex, with developers pushing boundaries on both heights of buildings as
between the insurer and the broker to determine the specific and/or unique aspects to a project,” Schmelzle says. “RSA Canada has a strong risk engineering team, as well as a close partnership with our claims department. We can work with our broker partners to dig deep into a project in order to ask the right risk-specific questions, as opposed to a generic set of questions that may not be applicable to the ever-increasing project complexities.”
Setting brokers up for success Project construction insurance is often an afterthought for developers, project owners and builders, who are more focused on securing permits, tender costs and navigating fluctuating material costs in the pre-construction phase. As a result, insurance is often considered as the last piece of the puzzle, which puts significant time pressure on the broker to find the right insurance solution. “We set our broker partners up for success by empowering RSA construction underwriters with the knowledge, confidence and expertise to be able to make quick decisions and confirmations around risk acceptance,
“As the boundaries of all forms of construction get pushed, it takes a strong partnership between the insurer and the broker to determine the specific and/or unique aspects of a project” Steve Schmelzle, RSA Canada well as deeper and more numerous underground levels,” Schmelzle says. “Our position with residential mid-rise and high-rise construction is to provide our broker partners with strong capacity, as well as the ability to subscribe with a number of Canadian insurance markets.” To round out its proposition, RSA Canada writes various forms of civil construction, including infrastructure work and equipmentand/or installation-based risks. “As the boundaries of all forms of construction get pushed, it takes a strong partnership
capacity, terms/conditions and pricing,” Schmelzle says. “This allows brokers to service the high demands of their construction clients. We also have the ability to work with brokers on pricing projects during tender stages, often when minimal details are available. Our underwriters greatly assist clients in their insurance pricing needs, and this assistance positions RSA as a strong avenue of choice in the event the project is awarded to the client. It’s that expertise and dedication from our construction underwriters that lies at the core of our 5-Star Award in construction insurance.”
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PEOPLE
INDUSTRY ICON
HOME-GROWN TALENT She’s spent her entire career at Saskatchewan Mutual Insurance Company, but president and CEO Shelley Willick is hardly coasting – she’s leading an ambitious strategy to expand the insurer’s presence and digital offerings
GROWING UP on her family’s farm in small-town Saskatchewan, Shelley Willick never considered a career in insurance. It simply wasn’t on her radar as she set out for Saskatoon to study commerce at the University of Saskatchewan, nor had the idea taken root by the time she graduated. Having fallen in love with Saskatoon, Willick instead pursued a career as an accountant, securing her CPA designation while working for a public accounting firm in the city – but she soon discovered that public accounting wasn’t the right path for her. As fate would have it, Saskatchewan Mutual Insurance Company (SMI) – a mutual insurer that partners with independent brokers across the Prairies to deliver insurance products and services, including home, auto, business and farm insurance – was looking for an accounting manager. Willick applied and landed the job. From the moment she stepped through the doors of SMI in 1994, Willick says she was captured by the firm’s “family spirit.” Working in finance, she was exposed to all areas of the business, making connections within the claims, underwriting, marketing, HR and IT departments. Those connections quickly turned into opportunities, thanks to Willick’s strong aptitude for learning,
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leadership and discovery. “My quest for learning and knowledge was easily satisfied at SMI,” she says. “Insurance is a fascinating industry; it’s unlike any other. Through hard work, dedication and constant learning, I’ve been able to explore all avenues of the business, and I’ve gained experience in different roles.” Willick soon progressed through the
points in my career to be in the right place at the right time, and I took advantage of that,” Willick says. “I truly believe that there are opportunities in the insurance industry for just about anyone. No matter where your heart lies – if you’re a people person, a data person or a tech person – there’s a role for you in the insurance industry. That’s what I’ve learned through my experience at SMI.”
“I truly believe that there are opportunities in the insurance industry for just about anyone. No matter where your heart lies – if you’re a people person, a data person or a tech person – there’s a role for you in the insurance industry” ranks at SMI, becoming secretary-treasurer, followed by vice-president of finance administration, vice-president of finance and eventually senior vice-president of operations. That role allowed her to become deeply involved in all areas of underwriting, marketing and claims, laying the foundation for her to take on the role of president and CEO in July 2019. “I’ve been rather fortunate at certain
Willick is unique in that she’s spent her entire career – from account manager to CEO – at SMI. That loyalty, she says, is the result of being given constant opportunities to develop her career. “I saw where I could go with SMI because I was exposed to so many different areas of the business,” she says. “Also, the industry never stays the same; it’s always changing. While I’ve
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PROFILE Name: Shelley Willick Title: President and CEO Company: Saskatchewan Mutual Insurance Company Based in: Saskatoon, Saskatchewan Years in the industry: 27
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PEOPLE
INDUSTRY ICON
stayed with SMI for 27 years, I’m constantly exposed to new challenges, opportunities and ways of doing things. It’s invigorating.”
Digital revolution Under Willick’s leadership, SMI has embarked on a digital transformation, rolling out a suite of digital tools to enable its broker partners to conduct business more effectively and efficiently. The insurer is already up and running with e-docs, online claims reporting and online credit card payments, and in 2020, it also implemented a new policy inquiry system, which enables brokers to
Maintaining adequate pricing is tricky in the Prairies, where climate change has triggered more frequent severe weather events, primarily hailstorms, floods and wildfires. With a large property portfolio, SMI is significantly exposed to severe weather and thus faces pressure to manage its risk accumulation appropriately. “The changes to our pricing model will help with that,” Willick says. “We have a business intelligence department, which is still relatively new, and I see that growing over the next couple of years because it’s so important. We’re not only using our own data, but we’re
“We’re focused on advancing our digital footprint – not only in terms of broker connectivity, but also in our online marketing and making sure people understand who SMI is and the value we bring to the table” access information on policy details, billing and claims directly from SMI’s system. “That’s the first phase of our broker connectivity strategy,” Willick says. “The second phase that we’re working on right now is going to enable our broker partners to quote, bind and issue an SMI insurance policy directly from their broker management system. We see this technological advancement as really beneficial to both parties. It’s going to make it easier for our broker partners to conduct business, which should enable them to sell more SMI products. “The other thing we need to do is make sure our products are priced appropriately. It helps our broker partners if we take an approach of consistent and steady changes rather than big swings in pricing. In March 2021, we updated our habitational pricing model to provide more individualized rating, which will help SMI and our broker partners remain competitive.”
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pulling in third-party data to supplement that and help us make sound decisions on pricing in areas that may be prone to weather events.”
SASKATCHEWAN MUTUAL INSURANCE COMPANY AT A GLANCE
YEAR FOUNDED 1908
HEAD OFFICE LOCATION Saskatoon
SERVICE OFFICE LOCATIONS Calgary, Regina and Winnipeg
Ready, set, grow Moving forward, Willick sees plenty of opportunity for SMI to work with brokers to expand the products and solutions it provides. The mutual insurer has a “significant growth strategy” in place and is making operational investments to enable that strategy. “We’re focused on advancing our digital footprint – not only in terms of broker connectivity, but also in our online marketing and making sure people understand who SMI is and the value we bring to the table,” Willick says. “That’s a huge part of our growth strategy going forward. Hardening market conditions also provide us with an opportunity to grow, and we’ll take advantage of that, but we want to continue our growth beyond the hard market.”
NUMBER OF EMPLOYEES 80
ANNUAL DIRECT WRITTEN PREMIUMS $90 million+
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY
Insuring the fintech sector Markel Canada’s Cindy Manek chats with IBC about the opportunities for insurers and brokers in Canada’s growing fintech industry
IBC: How has the fintech sector in Canada grown over the past year? Cindy Manek: We’re seeing continued momentum in Canadian fintech investment. The start of the pandemic brought a lot of uncertainty, which in turn hampered investment across all sectors. As the realities of the pandemic set in, and when traditional brickand-mortar stores closed up shop, it became apparent that there was no better time than now to present alternative ways for Canadian consumers and companies to revisit how they approach their financial services needs. In the last quarter of 2020, it’s estimated that the Canadian fintech sector saw investment of $438 million. The key development in the space is simple: Canadian consumers and businesses want alternative ways to digest financial services. This has spawned a growing Canadian fintech sector that touches on all segments of financial services: payment, lending, wealth management, banking and more. Markel Canada is thrilled to support these companies and their insurance needs with our product designed specifically for the fintech industry.
IBC: How has the pandemicprompted shift to remote work impacted the fintech sector? CM: Consumers and businesses want easier
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY
and more independent ways to transact in the work-from-home environment. We’re largely unable to have face-to-face meetings, and there is undoubtedly growing fatigue for individuals to take on yet another Zoom meeting. Naturally, this has led consumers to seek options of managing their personal or business financial services needs independently. A great example of this is the growth in the number of fintech companies that are targeting the investment management and financial planning space. The pandemic has spurred younger investors to take a greater interest in their personal finances, as they see a great opportunity to take advantage of stock market volatility. Fintech companies within this sector are increasingly displacing
We expect the adoption rate of fintech services to increase with time and for services to improve as Canadian consumers learn more and try out fintech services. The largest barriers facing the industry and its growth are primarily rooted in a lack of awareness in how fintech companies work and the value-add they can offer, as well as earning the trust of Canadian consumers and businesses. There is a degree of doubt amongst consumers as it relates to whether their finances are in safe hands with a company that may not have physical location, or if their process is entirely virtual. Fintech companies need to demonstrate to Canadians that their offering is reliable, safe and trustworthy.
“Because of the nature of fintech companies, they need to ensure that they are covered for their technology exposures and their financial exposures” Cindy Manek, Markel Canada traditional financial planners; we’re pleased to support these companies by offering an insurance product that is catered to their specific needs. We see the pandemic and the shift to remote work as having accelerated the growth of the fintech sector.
IBC: While fintech use is up among Canadian consumers and businesses, many remain hesitant to replace more traditional financial service providers. Why do you think that is? CM: While we’ve seen significant growth in the number of Canadians using fintech services, there is still room for further adoption of fintech services within Canada. It is estimated that Canadians’ adoption of rate of fintech services – 54% of consumers – still lags the global adoption rate of fintech services, at 64% of consumers.
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Canadians are concerned that a fintech company they engage may face a service disruption or that their assets may not be in safe hands. Markel’s comprehensive fintech product covers core insurance coverages like E&O, theft and cyber, and provides a safety net to fintech companies that will protect them both financially and operationally in the event of a service disruption.
IBC: What are the main risks a fintech company might face? What makes insurance a necessary expense for these companies? CM: First, insurance will offer fintech companies balance sheet protection; these companies need cash resources to fuel their growth and execute their business plans. Put simply, the cost of insurance is more predictable than the cost of an unforeseen service
disruption or lawsuit. An increase in the frequency of companies in this space buying insurance appropriately reflects this. Fintech companies are recognizing insurance for being the great risk transfer tool that it is. What’s more important than simply buying insurance is ensuring these companies are buying the right insurance. Because of the nature of fintech companies, they need to ensure that they are covered for their technology exposures and their financial exposures. Most insurance policies will cover one or the other but not both. Gaps in coverage can lead to companies finding themselves uninsured for potentially very serious situations; I would encourage all insurance brokers to review their clients’ insurance poli-
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processing space, where threat actors seek to identify a vulnerability or glitch in a fintech company’s operation that allows them to steal assets from the company. A commonality of fintech companies is that they all possess a great deal of data. Much of this data can be highly sensitive, from social insurance numbers to banking information to personal addresses – the list goes on. A security breach at a fintech company can trigger a requirement to notify consumers and businesses of the loss of data and may even lead to a lawsuit from the consumers and businesses whose data may have been compromised. Unrelated to the cyber threats is the risk to directors and officers [D&O] of fintech companies. The founders of these companies may be raising millions of dollars from venture capital firms, which rely on the representations they make. When the business does not go as planned, investors may opt to launch a lawsuit against the directors and officers of the company.
cies to ensure they have the breadth of cover their clients need. There’s a plethora of risks that fintech companies face, but we see the largest one as being a cyberattack or security breach. A security breach or cyberattack can materialize in a multitude of ways; an alarming trend across all industry classes is the growth of ransomware attacks. In our experience, fintech companies typically have better control and security protocols than most, but they are by no means immune. A ransomware attack can disable them from accessing their systems, which in turn may prevent them from running their business. We’ve also seen some instances, namely within fintech companies operating in the payment
the underwriting floor of insurers: financial institutions [FI] and technology. An FI underwriter may not be adept at underwriting the technology risk, while a technology underwriter may not be adept at underwriting the financial-related E&O risk of the company. We’re realizing great success with this niche product because we’ve built out an underwriting skill set by collaborating across the FI and technology underwriting divisions to serve this sector. We’ve built out a truly innovative product that comprises four core insurance needs of a fintech company: E&O, cyber, crime and D&O. Fintech companies, which value simplification and efficiencies more than most, appreciate that they only have one application to complete in order to attain four necessary coverages. While no company ever hopes to experience an incident that triggers their insurance, we’re extremely proud of the claims service offering that we’ve established. Markel has built out partnerships with leading law firms
“In our experience, fintech companies typically have better control and security protocols than most, but they are by no means immune [to cyberattacks]” Cindy Manek, Markel Canada Finally, perhaps the most fundamental risk to the business is the risk of the fintech company not being able to fulfill their service obligations to their clients – i.e. their E&O exposure. This exposure will vary a great deal depending on the facet of financial services that the fintech company serves.
IBC: Markel has quickly become a leading insurer for the fintech industry. Why do you think that is? CM: The fintech sector clutches two industry segments that are typically separated on
and cybersecurity incident response firms to be able to quickly and competently respond to claims when they emerge. We appreciate how fast response times are crucial to mitigating loss and minimizing reputational damage. The reputation of a company is key to its growth aspirations, so being able to promptly rectify a potentially damaging situation is an important facet of a fintech company’s risk management program. We’ve partnered with highly reputable and capable claims service partners that are at the service of our fintech clients when they need them.
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY & officers liability, theft and cyber liability with the deep understanding of financial institutions’ varied technology risks and how to manage and mitigate them. Whether you are an established fintech company or a new startup, the right insurance and crisis management plan can mean the difference between the survival of your fintech business or financial disaster and reputational ruin. This is where Markel’s expert underwriting and product services go further than our competitors.
How are you using your fintech product to fix pain points in the insurance ecosystem? CM: As Markel continues to grow its
Cindy Manek, senior underwriter
MARKEL CANADA Year founded: 1966 (as specialty MGA Elliott Special Risks, which was acquired in 2009 by Markel International) Headquarters: Toronto, ON Leadership: David Crozier, president and managing director
Tell us about Markel Canada. What do you do? Cindy Manek: Markel Canada is a leading P&C insurer that operates as a syndicate of Lloyd’s. We are a leader in liability, with developing specialty sectors and userfriendly online business solutions. Our three Canadian offices house market-leading underwriters who work with clients to offer optimal risk management solutions, while our dedicated claims team ensures each claim is handled promptly, professionally and fairly. Our parent company, Markel International, is a subsidiary of Markel Corporation, a US-based holding company for insurance and investment operations around the world. In my role as senior underwriter with Markel’s Professional and Financial Risks [PFR] team, I manage PFR, cyber
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and fintech accounts nationally, while synonymously expanding Markel’s PFR footprint through underwriting knowledge and strong stakeholder engagement. I bring close to eight years of technology underwriting experience to the team and have worked at two leading insurers prior to joining Markel in 2019. I’ve aided in the development of Markel’s fintech product through strong collaboration with our team in the UK. I pride myself on being a team player and working with humility and integrity, which I believe has allowed us to be agile in our creation and implementation of fintech while maintaining benevolent broker relations across Canada.
What’s your key area of focus in the insurtech ecosystem? CM: Outside of our Markel Connect online portal that allows brokers to quote, bind and issue policies online in minutes, our Professional and Financial Risks team has introduced a complex, niche product that hit the Canadian landscape in 2020: fintech. Markel’s fintech product packages professional liability, directors
robust sector offerings, we grow strong relationships with our service consultants and providers that offer our policyholders bespoke risk management services. With our fintech product, we offer services in the cyber space such as breach response, incident management, credit monitoring, public relations services and more. These rapid, integrated solutions grant access to leading lawyers and experts should a cyber threat develop.
How does your product benefit the broker channel? CM: Aside from being one of the only players in this niche sector, our fintech product wording offers Canadian capacity, which other insurers do not. Local capacity means your dealings are strictly Canadian, with compliance and coverages adhering to Canada’s jurisdictional laws and regulations. Our specialist underwriting team has developed a consistent coverage wording with no gaps. Our value-added cyber services make selling clients coverage easy – our strengths speak for themselves.
What product innovations are you most excited about for the future? CM: The growing fintech sector and the chance for our team to be the proudly Canadian forefront of this innovative coverage.
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Finally, it's here. Finally, FinTech. Markel's bespoke Professional Liability package product for companies in the FinTech space
Professional liability This covers your company for claims arising from its failings in the provision of the services that you offer your clients, customers and other third parties.
D&O liability Cover for the directors and officers to protect them against allegations of wrongful acts whilst managing the affairs of the company.
Theft Covers the company for theft of money and other financial instruments that it owns or for which it is legally responsible.
Cyber liability and loss Protects the company from legal liabilities and losses that may occur if it becomes a victim of a network security incident,
Expert underwriting ⸱ Canadian capacity ⸱ Local claims handling Value added Cyber services ⸱ Expect More, Do More
www.markelinternational.ca
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY
What’s new in insurtech? Applied Systems CEO Taylor Rhodes walks IBC through the trends brokers are likely to see in the insurtech ecosystem in 2021
IBC: Insurtech funding bounced back in the second half of 2020 after a rough start to the year. Where does the landscape sit now, and what are the key developments in the space? Taylor Rhodes: While insurtech funding was low for the first half of 2020 due to a variety of reasons, with the pandemic as a major one, the second half of 2020 and the beginning of 2021 have shown that investors are becoming more confident again. Now that businesses have put their business continuity plans in place and are operating in the new normal, investors see that the insurance market is ripe for opportunity. As more people work remotely and need digital technology to connect to their organizations and their customers, the appetite to invest in technology rises. Remote work has only exacerbated the traditional paper-laden workflows of broker-
insurer-insured distribution. Brokers running paperless operations thrived, while others looked to quickly leverage connectivity and self-service to ensure their brand was at the forefront of the end customer experiences.
IBC: In what other ways has the mass shift to remote work impacted the insurtech landscape? TR: Remote working has accelerated digital transformation for the entire industry, especially insurers. Insurers have looked to insurtechs to fuel their innovation and accelerate efforts to modernize technology infrastructure, improve data capabilities, and create digital experiences for their employees, brokerage partners and end customers. Brokers, too, have fast-tracked their digital strategies to adopt technology that will enable better connectivity throughout their organization, such as hosting their
ABOUT TAYLOR RHODES As CEO of Applied Systems, Taylor Rhodes is responsible for the company’s overall strategy and operational execution. Rhodes joined Applied in 2019 after serving as CEO of SMS Assist, the leading cloud-based software platform for multi-site property management. Prior to that, he was CEO of Rackspace, where he led the company’s growth from a cloud pioneer to an industry leader.
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business in the cloud. As customers were no longer able to meet with their brokers in person and digital-first interactions became a mainstay, brokers turned to insurtech to create digital customer experiences to better serve their policyholders. According to KPMG, the insurtechs in the ‘enabler’ category – those that provide B2B point solutions that are designed to improve an aspect of an insurer’s or broker’s value chain, such as data algorithms or mobile apps – stand to win if they closely align with current priorities. An insurtech like Indio is a good example of an enabler insurtech that saw a need in the market – to digitize a traditionally paper-laden manual task like application management and submission – and found success through acquisition.
digital strategies and directed their attention to insurtechs for support. Insurers are beginning to work with software houses on connectivity through data standards in the commercial space. Historically, commercial lines distribution methods have been extremely manual and time-consuming for both insurers and brokers, requiring back-and-forth communications to complete and submit applications and then requiring the broker to potentially wait weeks to receive a quote. Applied is working with insurers, broker partners and CSIO to create more effective and efficient transactional and operational workflows for all stakeholders. Think of the time lost, the E&O potential. When data is not captured properly
“When data is not captured properly or stuck in the spot where it’s captured, it’s not just time lost – it causes friction among brokers, underwriters and customers” Taylor Rhodes, Applied Systems Another type of insurtech laid out by KPMG that is expected to do well thanks to remote working is the ‘partner’ insurtech – those that typically go to market together with traditional insurers. As insurers are investing heavily in their digital transformations to enable a more connected experience for their employees, brokerage partners and policyholders, partner insurtechs that are focused on accelerating digital transformation efforts will be successful.
IBC: How can technology help insurers compete in terms of the digital experiences they offer customers? What operational priorities should insurers be turning to insurtechs for? TR: The pandemic has accelerated insurers’
or stuck in the spot where it’s captured, it’s not just time lost – it causes friction among brokers, underwriters and customers. Using standardized data and workflows creates a quoting experience that is consistent across all insurers to increase the ease of doing business and creates new business opportunities for both brokers and insurers in commercial lines.
IBC: How can brokers use insurtech to their advantage? Are there any key solutions they should know about? TR: Brokers are beginning to take advantage of those insurtechs that are designed to work with brokers to make their business processes more effective. It’s important to make sure brokers are working with a management system that
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY
is open and able to quickly integrate with third-party applications. The days of closed systems are coming to an end, and technology must become more open and integrable, creating flexibility for brokers to harness its power to support their business as it evolves and changes over time. Software built on componentized architecture with open APIs creates simple ways to integrate the management system with other critical business applications and quickly get information in and out of the system of record. Indio is an example of an insurtech for brokers with commercial lines business that enables more effective and efficient workflows. Instead of having to pull specific applications and supplemental forms from each insurer and then send them over to the customer to fill out, brokers can use Indio to digitally collaborate with customers to fill out a single online form. Indio uses information stored in Applied Policy Works to auto-populate the digitized insurer form. Then the broker collaborates with the insured through a digitized form. The structured data is submitted to the insurer through Applied Policy Works, and the underwriter can begin the quoting process faster based on standardized data flowing through the entire transaction. This automated commercial lines process shortens the typical data-gathering and submission time from two weeks to mere minutes, freeing up brokers to service customers and delivering a premier digital customer experience.
IBC: Many believe that insurance has shifted toward an innovationfocused digital culture. In what areas does it still need to improve? TR: A shift in customer experience demands, brought on by large digital-first companies like Amazon and Uber, has driven insurtechs to transform how brokers serve their customers in claims. Using technologies like machine learning and artificial intelligence,
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“A shift in customer experience demands, brought on by large digital-first companies like Amazon and Uber, has driven insurtechs to transform how brokers serve their customers in claims” Taylor Rhodes, Applied Systems insurtechs have redefined what is possible in placing and tracking claims. For example, Applied has collaborated with Google to create an artificial intelligence-powered chatbot, allowing policyholders to walk through a series of simple questions to answer. This is simulated to the customer as a chat message with a virtual claims assistant, ensuring that all necessary information and photos are stored within the management system and then
sent to begin the claim. This allows the customer to start a claim at any time of the day, without having to call and wait for their broker to help. Not only does this strengthen the broker/customer relationship, it also saves time by shifting interactions that have been historically facilitated by brokerage employees to self-service. Because of these efficiency gains, customer self-service often delivers a return on investment in less than one year.
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The Digital Future of Insurance Is Now 2020 drove the industry to a turning point where the traditional ways of doing business are in the rear view. The road ahead is built on open technology. Mobilizing operations on the go. Taking you to new customer service destinations. Exploring uncharted business opportunities and operational speeds. Trust Applied to be your technology partner of the future to light a digital path of productivity, simplicity, intelligence and value. Let’s get there together.
appliedsystems.com
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SPECIAL PROMOTIONAL FEATURE
TECHNOLOGY TR: Applied enables greater access to
Taylor Rhodes, CEO
APPLIED SYSTEMS Year founded: 1983 Headquarters: University Park, IL Leadership: Taylor Rhodes, CEO
Tell us about Applied Systems. What do you do? Taylor Rhodes: Applied Systems is a leading global provider of software that powers the business of insurance. Recognized as a pioneer in insurance automation, Applied is the world’s largest provider of brokerage management systems and a leader in data exchange, seamlessly connecting the insured, brokerage and carrier stakeholders. Automating the insurance life cycle for more than 187,000 brokerage users of our software and more than 430 insurers worldwide, Applied enables millions of people to safeguard what matters most.
What’s your key area of focus in the insurance ecosystem?
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information and streamlines workflows, allowing our customers to better connect within their business, to their insurer partners and their customers. Applied’s place in the insurance ecosystem lies in equipping and enabling the independent brokerage channel by delivering integrated automation from the back office to the front office. We empower brokers to break out of the broken processes and poor customer experiences to create simple online interactions – from application to policy binding to servicing and renewals. We expand intelligent connectivity across the insurance ecosystem to help brokerages and insurers perform better together, all while providing intelligence that helps brokers and insurers grow their business more efficiently by turning data into actionable insights. Our focus and commitment is to invest and push forward to make the digital future of insurance practically helpful for the entire ecosystem and ultimately the end insured.
to reshape their business with four core focuses: lead generation tools to drive new business, a foundational management system to automate and streamline operations, deep integrations to maximize commercial lines processes and seamlessly flow critical policy information, and omni-channel customer service through a brokerage-branded customer portal and mobile app.
How does your technology benefit the broker channel? TR: Applied technology automates the exchange of information and data throughout the insurance life cycle among brokers, insurers and consumers, delivering a connected experience between all participants in the insurance ecosystem. This means greater connectivity with insurer partners and greater connectivity to the insured. When the business of insurance is digitally connected, all stakeholders benefit from superior experiences, such as operational efficiency and better customer service, across the entire insurance life cycle.
How are you using technology to fix pain points in the insurance ecosystem? TR: The insurance industry is riddled
What tech innovations are you most excited about for the future? TR: We have many initiatives and
with paper-driven manual processes, often creating inefficient workflows and poor customer experiences. These challenges start in the internal operations of the independent brokerage, including back-office processes such as policy administration, accounting and connectivity to manage customer relationships. When digital technology isn’t used, brokers are challenged in providing consumers with policy details in a secure manner. Consumers are accustomed to accessing portals in banking and other industries and expect a consistent experience from their brokerage. When brokers are unable to carry their brand through the service process, they risk disintermediation, particularly when customers are working remotely. Applied technology enables brokerages
innovations to be excited for in the future. One in particular is the extension of commercial lines connectivity infrastructure at Applied. Fixing this for our industry is one of our top priorities because in its current state, the end-to-end commercial lines value chain is too expensive, takes too much time, and leads to frustrated and dissatisfied brokers and customers. Collaboration with CSIO and insurer partners to standardize and automate commonly transacted SME business will have huge advantages for all stakeholders in the ecosystem. With insurers aligned on data elements, our capabilities to deliver real-time commercial lines quoting and binding can be efficiently leveraged, bringing efficiencies to the brokerage and, most importantly, improving the experience for insureds.
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SPECIAL REPORT
LEADERS OF CHANGE
2021
Insurance Business Canada celebrates the men and women who are helping to make Canada’s insurance industry more diverse and inclusive
CONTENTS
PAGE
Feature article .............................................. 32 Methodology ................................................ 33 Leaders of Change 2021 ............................. 35 Profiles .......................................................... 36
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LEADERS OF CHANGE
LEADERS OF CHANGE: A new day for D&I WITH EACH YEAR that passes, Canada gets more diverse. While the majority of Canadians are still of European ancestry, the proportions of Chinese, East Indian and Black Canadians continue to grow, according to the most recent census. And with the government setting an immigration target of welcoming more than than 400,000 new permanent residents a year over the next three years – the highest levels in modern history – the Great White North is quickly becoming more colorful. Canada is clearly getting the diversity – but what about the inclusion? And how well is the insurance industry faring on both counts? IBC’s inaugural Leaders of Change report spotlights the insurance professionals
making a meaningful difference through D&I initiatives within the industry. One of this year’s Leaders of Change is Marsh’s Shirley Chisolm. Born and raised in Jamaica, Chisholm immigrated to Canada in 1988 and eventually sought work as a broker. She was hired as a Dicta typist – a role at which she greatly excelled – with the promise of being made a broker when an entry-level role became available. Instead, when such a job opened up, it was given to a family friend of the owner, a woman who couldn’t pass the broker exam. “I recognized that I needed to take ownership of my career,” Chisholm says. She studied on her own and passed the broker exam with flying colours, countering the nepotism and
ARE D&I MESSAGES GETTING THROUGH? THINK THEIR COMPANY IS NOT COMMUNICATING ENOUGH ABOUT D&I
Business leaders
63% Business leaders
17% Employees
Shirley Chisholm, Marsh Canada
THINK THEIR ORGANIZATION REGULARLY MAKES INFORMATION ON D&I AVAILABLE
10%
42% Employees
Source: PwC
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“I envision more equitable and transparent workplaces where diversity is no longer an illusion of inclusion – not just counting heads, but rather making heads count” winning the broker role. Today, Chisholm is a senior vice-president in the Financial Institutions and Professional Services (FIPS) division of Marsh Canada, where she’s also involved in D&I work. She’s on the company’s D&I Council, is a co-founder and president of the Ebony Women International Insurance Network and is a member of the advisory board of the Canadian Association of Urban Financial Professionals. Chisholm acknowledges that things have changed a lot over the past 30 years – espe-
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cially over the past year amid the tumultuous Black Lives Matter protests. Across the corporate landscape, she says, there’s a rising awareness of blind spots and unconscious bias as organizations recognize the impact of diversity on their bottom line. And she hopes to see real change in her lifetime. “I envision more equitable and transparent workplaces where diversity is no longer an illusion of inclusion – not just counting heads, but rather making heads count,” Chisholm says.
A lasting impact Fellow Leader of Change Benaaz Irani knows what it feels like to work in an environment where people from different backgrounds come together and find their voice. As a Zoroastrian Persian born and raised in India, Irani experienced the strengths and chal-
by today’s powerful social justice movements but is weary of their stop-and-start nature, as they tend to be propelled by tragic events. “These issues have existed for decades and centuries,” she says. “Diversity and inclusivity help support the development of a more fair and equal society. We owe it to future generations to remain committed to positive change.” Irani refers to Gandhi’s words on being the change you want to see in the world. To her, it isn’t about getting caught up in trends or paying lip service to various causes. It’s about believing that every individual has a role to play in bringing about meaningful change and that staying the course is crucial to achieving success. “A lot of times when people talk about diversity and inclusion, they’re only talking about gender or race,” she says. “But diversity
METHODOLOGY IBC’s Leaders of Change report celebrates individuals working to build a more diverse and equitable insurance industry by taking action to drive positive change. With the support of the Insurance Brokers Association of Canada, the Ebony Women International Insurance Network and the Toronto Insurance Women’s Association, IBC’s five-week outreach across various media outlets resulted in a large number of nominations. To help determine the final list, IBC enlisted an independent judging panel of industry leaders, each highly committed to and active in diversity & inclusion in Canada’s insurance landscape. • Alice Keung, Economical Insurance • Asima Zahid, Lloyd’s Canada • Karim Chandani, HUB International • Lisa Wolfe, QBE • Megan Hodge, Cultiver
“Diversity is more than simply providing a barrier-free work environment – it’s about being open to people who not only don’t look like you, but don’t think like you either”
•S ukhdeep Kang, Armour Insurance Brokers • Vinita Jajware-Beatty, Toronto Insurance Women’s Association The final Leaders of Change list was based on all candidates’ industry contributions and their work in driving programs and initiatives to expand diversity and inclusion in the industry. To avoid conflicts of interest, any selfvoting was voided.
Benaaz Irani, Desjardins 5 lenges of a multicultural environment early in life. She leveraged this experience when she made Canada her home 22 years ago. Over the past two decades, Irani has risen to the post of vice-president of the Desjardins Agent Network, overseeing a $2 billion operation across Alberta, New Brunswick and Ontario. She’s also a D&I ambassador at Desjardins, working to break down barriers and help empower people to attain their full potential. Like Chisholm, Irani has been inspired
is more than simply providing a barrier-free work environment – it’s about being open to people who not only don’t look like you, but don’t think like you either.”
D&I initiatives that work IBC’s 2021 Leaders of Change come from a wide range of geographic and ethnic backgrounds and insurance concentrations. Some have only been in the insurance industry for a few years; others have been at it for three decades or more. All have been doing their
Weeks IBC spent gathering nominations
7 Members of the judging panel
25 Leaders of Change winners for 2021
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SPECIAL BUSINESSREPORT STRATEGY
LEADERS OF CHANGE
DIVERSITY THROUGH IMMIGRATION
24% All other countries
30% India
2% Iran
2%
WHERE IMMIGRANTS TO CANADA HAIL FROM
Nigeria
3% Brazil
3% United States
4% Vietnam
25% 4% France
China
4% South Korea Source: Diversity.social
best to help create a more diverse, equitable and inclusive environment in the Canadian insurance industry. In 2020, one event more than any other helped galvanize the global push for diversity and inclusion. On May 25, George Floyd, a 46-year-old Black man, was killed in Minneapolis in an act of police brutality that was captured on cell phone video. Uploaded to the internet, the footage quickly went viral, prompting protests and outrage around the world and helping fuel movements such as Black Lives Matter and other social justice organizations. The ramifications are still being felt today, both in Canada and around the world. Many of this year’s Leaders of Change were lauded for hosting conversations related to the Black Lives Matter movement or contributing to Black professional networks in Canada. Aon’s Dorothy Aarons, for example, held “Black in Canada” and “Collaboration of Black and Indigenous People” panel discussions for fellow Aon employees. Many have joined the BlackNorth
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Initiative, which aims to end systemic racism toward Black people in Canada by providing them with more business opportunities. Another Leader of Change, Chubb’s May Ng, was celebrated for sharing the challenges of Asian Canadians through her work with the company’s Mosaic Asian Alliance of North America and Mosaic Business Roundtable. Other Leaders of Change were involved with Arabic, Hispanic and Caribbean interest organizations. Many Leaders of Change also advocate for or teach unconscious bias training – programs to help people discover their implicit biases and automatic patterns of thinking that frequently contribute to discriminatory thoughts and actions. Sun Life’s Rowena Chan, for example, participates in a peer learning program that “helps participants move from unconscious bias to conscious action by embedding tiny but powerful acts of inclusion into daily behaviours and routines – accelerating the pace at which inclusion becomes a habit.” Of this year’s Leaders of Change, 80% are women, and they’ve also been furthering the cause of gender diversity by showcasing other women’s contributions to the insurance industry, acting as role models for younger women, and participating in and organizing events geared toward women in insurance. All the while, they’ve supported other women of colour who are dealing with unconscious biases related not only to the colour of their skin, but also their collection of chromosomes. Most of this year’s Leaders of Change also give back by mentoring, whether through their organizations, universities, or minority or multicultural resource groups. Most also take the time to help their local communities through organizations both inside and outside of work. On the opposite page, discover the 25 men and women who made it onto IBC ’s first-ever Leaders of Change list.
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LEADERS
OF CHANGE
Anne-Marie Vanier Independent board member and consulting actuary AMVanier Consulting
Katrina Lee-Kwen SVP, non-par insurance solutions and individual customer digital strategy Canada Life
Natasha Mascarenhas Vice-president, talent and learning Aviva Canada
Konatsu Itoh Data and analytics specialist Aon
Email: natasha.mascarenhas@aviva.com
Lisa Wolfe Underwriting manager, property QBE
Nicole Burrell Broker relations director Unica Insurance Phone: 647-822-4839 Email: nicole.burrell@unicainsurance.com Website: unicainsurance.com Rowena Chan President, Sun Life Financial Distributors (Canada) Inc. and Senior Vice-President, Distribution Sun Life
2021
May Ng Global client executive Chubb Nancy Dorvil Head of property, Canada Allianz Global Corporate & Specialty Ray Chaaya Employee experience and culture lead Zurich Canada
Phone: 416-979-4884 Email: rowena.chan@sunlife.com Website: sunlife.ca
Rina Arce Director, commercial insurance J.T. Insurance Services (Canada)
Benaaz Irani Vice-president, Desjardins Agent Network Desjardins
Rohit Verma CEO Crawford & Company
Calvin Lim CEO UW Insure Brokers
Sabrina Carbe Operations and technology country leader Marsh
Danielle Tkachyk President/owner Savante Insurance
Sherif Gemayel President Sharp Insurance
Dorothy Aarons Vice-president and account executive Aon
Shirley Chisholm Senior vice-president Marsh
Elaine Lajeunesse Chief risk officer TD Insurance
Soloman Lam Assistant vice-president, financial lines claims AIG Canada
Erika Schurr Chief actuary Travelers Canada
Vinita Jajware-Beatty President Toronto Insurance Women’s Association
Katarina Lodongi Supervisor – commercial account executive Affinity Insurance Services
Yvonne Cheng Vice-president, pricing – commercial insurance RSA Canada
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SPECIAL BUSINESSREPORT STRATEGY
LEADERS OF CHANGE
ROWENA CHAN
A
President, Sun Life Financial Distributors (Canada) Inc. and Senior Vice-President, Distribution SUN LIFE
seasoned financial services executive with decades of experience, Rowena Chan is passionate about bringing wellness and peace of mind to Canadians. Chan leads Sun Life’s retail distribution business, an omni-channel organization that delivers protection (life insurance), wealth and health solutions to clients at all life stages. “My vision to bring the distribution business to life is through a holistic advice model centred on client needs, enabled by innovation,” she says. As a former board member of Career Edge and VP of Ascend Canada, Chan is passionate about building and continuously improving a diverse, equitable and inclusive culture for advisors and colleagues. In 2020, she was named one of Canada’s Most Powerful Women by the Women Exchange Network for her role in advancing the societal and professional landscape for future generations. She is also an alumnus of the Judy Project, one of Canada’s leading executive forums, designed to support and prepare women ascending into executive
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leadership. For her work in this forum, Chan was featured in the book The Collective Wisdom of High-Performing Women. “I am deeply passionate about DE&I in the workplace and have spent many years in the financial industry building diverse teams, always eager to learn and embrace differing views and perspectives,” she says. “We are at a pivotal time in the world and have never seen this level of awareness on the social, economic, cultural and political benefits of achieving gender parity and equality for underrepresented groups.” Chan is encouraged by the progress Canadian companies have made but acknowledges there’s still more work to do. She shares a twofold concern regarding the effects of the pandemic. First, she’s worried that it has worsened gender parity. Studies have shown that the pandemic has had a disproportionate impact on women, who have faced increased workloads, a greater share of caregiving responsibilities (including homeschooling), pressure to put their careers on hold and an
increase in gender-based violence. Chan is also angered by the rise of Asian hate crimes during COVID-19. Within Canada’s borders, Asian hate crimes are here and rising. According to Statistics Canada, cases of harassment or attacks against visible minorities based on race, ethnicity or skin colour have tripled; the biggest increases were among Chinese, Korean and Southeast Asian individuals. “This reality we are living in is startling – but this is the reality,” Chan says. “Every single person should be treated with humanity and respect. There is urgent work to do. I am optimistic to witness the commitments at all levels in the workplace in Canada to remove systemic obstacles and unconscious bias. Working with my colleagues across Sun Life, I am committed to continue my mission to build a diverse pool of talent at all levels across the organization and create a safe and respectful workplace where everyone can bring their true and authentic selves to work.”
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W
NICOLE BURRELL Broker Relations Director Unica Insurance
hen she began her career in insurance 20 years ago, Nicole Burrell says there was almost no focus on D&I. “I’m seeing a large shift where organizations are being questioned,” she says. “How many senior managers do you have who represent diversity? How reflective is your organization of the customers you are serving?” At Unica Insurance, Burrell is spearheading D&I discussions and has initiated focus groups with leaders. When Black Lives Matter gained momentum last year, she led challenging conversations that have helped Unica continue to deliver on its strategy of significant growth in niche commercial segments and a primary focus on high-net-worth personal insurance. “It’s about being able to listen,” Burrell says. “Maybe hours, days down the road, you might be able to reflect and have a better understanding of what you heard. I’m fortunate to work for an organization that recognizes the importance of D&I and supports continued advocacy in that regard.” Growing up in Saskatchewan, Burrell says the first time she had a teacher with a Caribbean background was in high school, when her family moved to Toronto. “Representation matters,” she says. “I grew up never seeing images of people who look like me reflected in children’s books, nor did I see my culture and identity represented in the corporate field. It means a lot for someone new to the insurance industry to see someone who looks like them and talks like them working in a senior role.”
Change isn’t new. Insurance Brokers Have Always Embraced it. And always will.
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CLIENT:
IBAC
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SPECIAL BUSINESSREPORT STRATEGY
LEADERS OF CHANGE
A
NATASHA MASCARENHAS Vice-President, Talent and Learning Aviva Canada
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s diversity and inclusion lead at Aviva Canada for the past three years, Natasha Mascarenhas has been working tirelessly to build D&I into the company’s DNA. “At Aviva, we embrace D&I because we believe in diversity of thought, promoting individuality and allowing people to be their whole selves at work,” she says. Her efforts are paying off. Mascarenhas has helped boost female representation at the executive level to more than 40% and has improved the number of visible minority leaders who are part of succession plans for executive roles. She has also led the establishment of five inclusion communities. “We strive to look at D&I from both an internal and external lens – thinking about our actions from a customer, colleague and community perspective,” she says. In 2020, Mascarenhas led tough but meaningful conversations on Black Lives Matter with executives and employees and rolled out unconscious bias training to all 4,200 employees. Aviva Canada also signed up to the BlackNorth Initiative to eliminate institutional racism. Mascarenhas also mentors many leaders and provides counsel on D&I across the executive and leadership teams. “Having a mentor is very valuable, as they provide different perspectives based on their own lived experiences,” she says. “The mentors that I’ve had throughout my career have challenged me to think differently and encouraged me to move out of my comfort zone.”
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D
ANNE-MARIE VANIER
Independent Board Member and Consulting Actuary AMVanier Consulting
o you want to work at a company where you can’t be yourself?” That’s the question a confidante asked Anne-Marie Vanier in 2003 when she was a senior executive struggling to come out as a member of the LGBTQ community. “And I thought, well, I’m a senior vice-president – if I can’t do it, who else is going to?” Vanier recalls. Since then, she has become an advocate for the LGBTQ community. She serves on the board of the Rainbow Railroad, an organization that provides support to persecuted members of the community beyond Canada’s borders, and in 2013, she received a Professional Leadership Award recognizing her as a role model for the LGBTQ community. “Part of it is showing members of my community that it’s possible to be an executive and be fully yourself,” Vanier says. “The other part is to help the leaders of corporations understand what kind of safety they need to create, what kind of environment they need to create for people to feel safe.” An independent director and consulting actuary with more than 30 years of insurance experience, Vanier currently serves as a director on the boards of Gore Mutual Insurance and LawPro. She has been chief actuary at Aviva Canada and RBC Insurance. “I learned a lot through my own journey – we need to listen; leaders need to listen,” Vanier says. “We still have a lot of work to do, but we know how to do this. We just need to be open, curious and create safety for others.”
We congratulate Erika Schurr, Chief Actuary at Travelers Canada, on being recognized as a “Leader of Change” by Insurance Business Canada.
travelerscanada.com Travelers Insurance Company of Canada, the Dominion of Canada General Insurance Company and St. Paul Fire and Marine Insurance Company (Canada Branch) are the Canadian licensed insurers known as Travelers Canada. © 2021 Travelers Canada. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in Canada, the U.S. and other countries. TC-1095 New 3-21
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SPECIAL REPORT
ELITE WOMEN IN INSURANCE
Key Media Canada (Insurance) Ltd. tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Denver, London, Sydney, Auckland, Manila, Singapore, Seoul For further information, contact: dane.taylor@keymedia.com + 1 416 644 8740 ext 249 Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor.
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SPECIAL REPORT
2021
ENVIRONMENTAL INSURANCE CONTENTS
Brokers name the best environmental policies and insurers in the Canadian market
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Feature article .............................................. 42 Methodology ................................................ 43 5-Star Environmental Insurers 2021 ......... 45 Award winners by category ........................ 46
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SPECIAL BUSINESSREPORT STRATEGY
5-STAR ENVIRONMENTAL INSURERS
5-STAR ENVIRONMENTAL INSURERS: Service is paramount ENVIRONMENTAL INSURANCE – which includes everything from environmental liability to contractor’s liability and historical pollution coverage – is designed to counter pollution exclusions in P&C policies. If these gaps are not filled, environmental exposures are likely to topple a business through costly legal fees and cleanup responsibilities in the event of an unexpected environmental incident. While sometimes neglected, these policies remain vital to many operations,
“Market conditions in this space have been in a slight state of flux over the past year. We’ve been seeing changes in appetite and rate, depending on individual experience” Andrew de Ruiter, Totten Insurance Group
WHAT’S MOST IMPORTANT TO BROKERS WHEN CHOOSING AN ENVIRONMENTAL INSURANCE POLICY? Service to brokers
96% Underwriting expertise
93% Value for money
90% Claims payment/processing speed
85% Ability to create bespoke policies
78% Access to risk mitigation partners
76% Online platform
59%
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shielding many multi-million-dollar projects from possibly catastrophic costs. Like most segments of the market, environmental insurance hasn’t been immune to the fallout from the COVID-19 pandemic. “Prior to going into the pandemic, we were seeing claims related to indoor air quality begin to increase, particularly concerning mould and Legionella,” Rani Christie, head of distribution for Allianz Global Corporate & Specialty, told IBC in February. “[After] March 2020, you had these facilities that were boarded up for some period of time ... and these large buildings with complex plumbing haven’t had the maintenance that you would under normal operations. That could potentially create an environment for humid and water-rich environments to sit and become stagnant, which will allow that bacteria to grow and then potentially get into the system.” Yet despite the obstacles thrown up by COVID-19, Andrew de Ruiter, vice-president for Western Canada and national environmental liability segment leader at Totten Insurance Group, says the environmental insurance market has been fairly stable. “Market conditions in this space have been in a slight state of flux over the past year,” he says. “We’ve been seeing changes in appetite and rate, depending on individual experience. In 2021, we’re seeing similar changes in appetite, and we could expect to see some change to rates as a result.” Christine Nauth, an assistant vicepresident at SUM Insurance who has more than a decade of experience in the environmental sector, agrees for the most part. “The market conditions really haven’t changed overall for [environmental impairment liability],” she says. “It’s pretty stable and steady. We didn’t have too many clients where we needed to cancel or decline or anything like that. Our books seem to renew with no issues. There are certain class-
specific sectors that tightened up a little bit over the past year, but other than that, [it’s] pretty stable.” Looking ahead to the remainder of 2021, Nauth says she expects “those same site-specific harder-to-place markets and contracting exposures will continue to tighten.” Another thing that should be on the radar of brokers working in the environmental space, she says, are changes to Canadian Construction Documents Committee (CCDC) contracts. “One of the requirements is now for all contractors to carry [contractor’s pollution liability] with a $5 million limit,” Nauth says. “We do see a lot more contracting business in the next year.”
The winning formula The way in which both Totten Group and SUM Insurance responded to these market conditions helped them rise above the competition in this year’s 5-Star Awards for environmental insurance. “I believe what helped us stand out is the service and expertise that our underwriting team provides,” de Ruiter says. “We’re fortunate at Totten to have a really great team that can provide a level of experience and expertise that our brokers look for in an environmental insurance company. With our team’s expertise, we’ve worked to create environmental insurance products that differentiate our product offerings from the competition. Our team is also driven and focused on providing exceptional service to our supporting broker partners.” Nauth likewise puts SUM’s success down to its expertise in this segment. “We have quite extensive personnel on the team,” she says. “We have Serge [Melanson] in the Montreal office, who was the original founder of SUM. I myself have only been in environmental. I just think it’s [our] exper-
METHODOLOGY ‘Market-leading’ is a phrase many insurance companies like to use when describing their products. Now 14 companies can claim that title on the back of hard market research from the people who matter most: insurance brokers. To select the best environmental insurers for 2021, IBC surveyed hundreds of brokers to gain a keen understanding of what insurance professionals think of current market offerings. Brokers were first quizzed on what features they thought were most important in an environmental insurance policy and then asked how the insurers they dealt with rated on those attributes. Insurers were measured on the strength of their relationships with brokers, ability to handle claims, underwriting expertise and, most importantly, the strength of the individual products they provide.
98% of brokers said overall service is important when choosing an environmental insurer
98% of brokers said an environmental insurance policy’s value for money is important
93% of brokers said their insurer’s underwriting expertise is important
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SPECIAL BUSINESSREPORT STRATEGY
5-STAR ENVIRONMENTAL INSURERS
NUMBER OF AWARD WINNERS BY CATEGORY Environmental liability
9
Site/premises liability
9
Contractor’s liability
8
Professional liability
9
Product pollution
9
Transportation of pollutants as cargo
5
Historical pollution
5
MGAs
6
“The market conditions really haven’t changed overall for [environmental impairment liability]. It’s pretty stable and steady” Christine Nauth, SUM Insurance tise and the relationship with our brokers.” De Ruiter also emphasizes Totten Group’s strong relationships with brokers. “We really want to thank our broker partners for nominating us for this award,” he says. “We are continuing to enhance our environmental product offerings and find
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ways to better support our brokers. Thank you to our brokers, and we appreciate your continued support.”
What brokers want Of the hundreds of brokers IBC surveyed about their environmental insurance
providers, an overwhelming majority (96%) said service to brokers is of the utmost importance when selecting an insurer in this space. Many respondents praised their firstchoice environmental insurers for “great service,” while others lauded insurers and MGAs for their quick turnaround times, especially when processing quotes. “They have always come through for us,” one broker said of their MGA. An almost equally high number of brokers (93%) pointed to underwriting expertise as a critical factor when choosing an environmental insurer. Brokers appreciate insurers and MGAs that have reputable underwriting experience in this space and the knowledge and capacity to meet their clients’ needs. One broker praised their MGA’s underwriter for having “a great deal of market experience” and being “very responsive towards brokers.” An ability to deliver common-sense solutions is also paramount – one broker commended their top-choice MGA for having “the most flexible underwriting capabilities.” Also important to brokers was an environmental policy’s value for money – 90% of brokers said getting a competitive product at a good price is an important factor when choosing an environmental insurer, and competitive rates were mentioned several times when brokers were asked to single out their first-choice insurer or MGA in this segment. Slightly less important to brokers were insurers’ and MGAs’ claims processing speed, ability to customize policies and the access they provide to risk mitigation partners, none of which were mentioned by brokers as reasons why they choose to work with their top insurance partners. Lowest on brokers’ priority list was an insurer or MGA’s online platform – in fact, 17% of brokers said this aspect was not important at all when deciding which environmental insurer to place a policy with.
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2021
ENVIRONMENTAL INSURANCE ENVIRONMENTAL LIABILITY
SITE/PREMISES LIABILITY
CONTRACTOR’S LIABILITY
Beazley
Beazley
Beazley
Berkley Canada
Berkley Canada
Berkley Canada
Burns & Wilcox
Burns & Wilcox
Cansure
Chubb
Chubb
Intact Insurance
Premier Group
Markel Canada
Totten Insurance Group
Premier Group
Victor Canada
Travelers Canada
Travelers Canada
Zurich Canada
Victor Canada
Victor Canada
PROFESSIONAL LIABILITY
Burns & Wilcox Chubb Intact Insurance Premier Group
PRODUCT POLLUTION
Beazley
Burns & Wilcox
Berkley Canada
Chubb
Burns & Wilcox
Intact Insurance
Chubb
Markel Canada
Intact Insurance
Premier Group
Premier Group
SUM Insurance
Totten Insurance Group
Totten Insurance Group
Travelers Canada
Travelers Canada
Victor Canada
Victor Canada
TRANSPORTATION OF POLLUTANTS AS CARGO Berkley Canada Burns & Wilcox Cansure Northbridge Insurance Victor Canada
HISTORICAL POLLUTION Berkley Canada Burns & Wilcox Chubb Totten Insurance Group Victor Canada
MGAs Burns & Wilcox Cansure Premier Group SUM Insurance Totten Insurance Group Victor Canada
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SPECIAL BUSINESSREPORT STRATEGY
5-STAR ENVIRONMENTAL INSURERS SUMMARY: 5-STAR ENVIRONMENTAL INSURERS BY CATEGORY Insurer/MGA
Environmental liability
Site/premises liability
Contractor’s liability
Professional liability
Product pollution
Historical pollution
Transportation of pollutants as cargo
MGAs
Beazley
Berkley Canada
Burns & Wilcox
Cansure
Chubb
Intact Insurance
Markel Canada
Northbridge Insurance
Premier Group
SUM Insurance
Totten Insurance Group Travelers Canada Victor Canada
Zurich Canada
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SPECIAL REPORT
2021 C
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CONSTRUCTION INSURANCE CONTENTS
Brokers tell IBC which insurers and MGAs are providing the best policies for the Canadian construction market
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Feature article .............................................. 48 Methodology ................................................ 49 5-Star Construction Insurers 2021 ........... 52 Profiles .......................................................... 54 Award winners by category ........................ 56
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SPECIAL REPORT
5-STAR CONSTRUCTION INSURERS
5-STAR CONSTRUCTION INSURERS:
A foundation of expertise CONSTRUCTION IS more than just the building of structures – it’s also a key indicator of a country’s economic trajectory. In early 2020, the relative stability of both the Canadian construction industry and the construction insurance sector, which covers tens of billions of dollars worth of projects each year through a complex litany of highly specialized insurance products, was a heartening sign. Then COVID-19 hit. “In Quebec, most construction sites were forced to stop in the early stages of confinements,” says Alain Giroux, a Quebecbased executive vice-president at HUB International who specializes in construction coverage across North America. “This
“By the end of 2020, it was the casualty rates, particularly excess rates, that accelerated their assent. This has continued into 2021” Alain Giroux, HUB International brought many questions concerning vacancy provisions and exclusions found in many policies. We also had to spend some time looking at possible policy provisions for business interruption coverage related to governmentsanctioned project closures.” Across the country, contractors worked
WHAT’S MOST IMPORTANT TO BROKERS WHEN CHOOSING A CONSTRUCTION INSURANCE POLICY? Service to brokers
96% 93%
Underwriting expertise
90%
Value for money
85%
Claims payment/processing speed
78%
Ability to create bespoke policies
76%
Access to risk mitigation partners Online platform
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59%
to align their operations with new laws regarding site security and physical distancing. Globally, the pandemic stifled supply chains. For example, HUB had a client who needed a transformer from Italy to complete a wind farm – but the entire country was in lockdown. Other challenges centred around the pandemic’s impact on schedules, the availability of labour, and the supply and delivery of materials. “The construction insurance industry also got impacted by the overall property insurance hardening, with COC rates increasing in a way they had not in previous years,” Giroux says. “The rates on combustible construction projects have been high for a few years, but 2020 pushed this even higher, with markets in London exiting this class. Many insurers also had to reduce their capacity. “Casualty rates started to increase modestly in mid-2020,” he adds. “By the end of 2020, pushed by the fact that most London markets were near their maximum premium income limits in October/ November, it was the casualty rates, particu-
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larly excess rates, that accelerated their assent. This has continued into 2021.” However, the overall impact of COVID-19 on the construction industry was less severe than anticipated, and the sector has bounced back nicely – which is great news for both the construction industry and the insurers that serve it. “Contractors were resilient during the process, working with construction owners to maintain schedules to the best of their ability and to address the cost implications related to the pandemic,” Gregory Petrela, president and managing partner at Petrela, Winter & Associates (PWA), a Navacord broker partner, told IBC in February. “Construction, in an average year in Canada, represents somewhere around 7% of GDP, and that’s usually somewhere in the range of $75 billion to $80 billion in new
manager for a large engineering firm. He leverages his background and experience to help HUB analyze risks, advise construction clients with possible risk management strategies, negotiate coverages with insurers, handle claims, provide prevention/inspection services, and address the concerns and needs of various stakeholders throughout a project’s life cycle. “Many companies, including HUB, pride ourselves on our proximity with our clients,” Giroux says. “We are a very entrepreneurial company where the focus is always on our clients. What distinguishes the construction practice even more is our multi-disciplinary team of construction experts who work almost exclusively in this sector. Experience and expertise in the sector have enabled us to place risks in ways others didn’t. “What also works well at HUB is our focus
“Contractors were resilient during [COVID-19], working with construction owners to maintain schedules to the best of their ability and to address the cost implications related to the pandemic” Gregory Petrela, Petrela, Winter & Associates
projects starting in a given year,” Peter Toole, vice-president and insurance practice leader at PWA, told IBC. “Last year, that dipped down to about $60 billion, so coming down about 6%, which is pretty significant, but all signs seem to point to a rebound for 2021.”
What construction clients need Giroux has spent more than 15 years working with developers, architecture and engineering firms, general contractors, and specialized trades; he’s also served as a risk
on our teams and people. Early on during COVID, we maintained efficient communication channels with all our colleagues, who were adapting to the new realities of working from home. This allowed us to stay available and accountable to our colleagues and clients.” Going forward, Giroux says, construction companies will stand out by properly managing quality, subcontractors, budgets, supply chains and schedules. However, he has a few warnings for both insureds and
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METHODOLOGY ‘Market-leading’ is a phrase many insurance companies like to use when describing their products. Now 34 companies can claim that title on the back of hard market research from the people who matter most: insurance brokers. To select the best construction insurers for 2021, IBC quizzed brokers on what features they thought were most important in a construction insurance policy and then asked how the insurers they dealt with rated on those attributes. Insurers were measured on the strength of their relationships with brokers, ability to handle claims, underwriting expertise and, most importantly, the strength of the individual products they provide.
83% of brokers said overall service is very important when choosing a construction insurer
70% of brokers said their insurer’s underwriting expertise is very important
46% of brokers said the speed at which an insurer pays claims is very important
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SPECIAL REPORT
5-STAR CONSTRUCTION INSURERS
NUMBER OF AWARD WINNERS BY CATEGORY
MGAs
13
Civil contractors
Builder’s risk/ course of construction
12
General contractors
Commercial and contractor general liability
12
Subcontractors
Environmental liability
11 12
Professional liability
10
Inland marine
Auto liability
7
D&O
7
brokers in this space. “With an increased dependence on BIMs [building information modelling] and other electronic/computer tools, the sector needs to be more and more aware of its exposure to cyber-related incidents that could affect the delivery of projects,” Giroux says. “Construction contracts are more and more technical in allocating risk to contractors and sub-trades – taking this into account when structuring insurance around a project is essential to avoid gaps in coverage or unnecessary claims litigation or contractual disputes.” He also notes that “risk management poli-
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10
Professional construction service firms
8
Developers and owners
8
Heavy construction
Demolition
11
9
Specialty trade contractors
10
Wrap-up liability
8
11
5
cies regarding latent defects and water-related losses will undoubtedly take more and more importance in our discussions with insurers. Companies should be ready to demonstrate the controls they have in place to mitigate these risks.”
What brokers are looking for To help IBC select the 5-Star Construction Insurers for 2021, hundreds of brokers chimed in on what’s most important to them when selecting an insurer for their construction clients. Far and away, the most important aspect among those surveyed was their
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insurer’s overall service to brokers – from speedy turnaround times on quotes to knowledgeable staff who can help answer any questions a broker might have. “They are so quick at quotes, explain coverages and help gaps get filled,” one broker raved about their insurer, adding “I love placing business for my builder’s risk with them.” Several brokers also noted the ease of doing business with their favourite insurers. “Easy, fast and competitive” is how one broker described their first-choice insurer. In a complex segment like construction, it’s hardly surprising that underwriting expertise was also incredibly important to brokers – 93% rated it as either an important or very important quality in a construction insurer. Several survey respondents said their favourite insurers and MGAs earned their business based on the strength of their underwriters. One broker lauded their MGA’s underwriter for having “a very good relationship with the brokers [and] an in-depth understanding of construction risk.” While service and expertise are the most critical factors, pricing is also important in the construction sector – on average, 90% of brokers said they’re looking for a good value when selecting a construction insurance policy. Many brokers noted that their go-to insurers are the ones with reasonable and competitive rates. Slightly less important to brokers – but still crucial – are the speed at which claims are processed and paid, the access provided to risk mitigation partners, and the insurer’s ability to customize policies to create bespoke solutions. “They have the broadest wordings, are most flexible in their product, and they do individual attention – they are able to customize,” one broker said of their insurer. Finally, the least important aspect to brokers when selecting a construction policy is the insurer’s online platform – only 36% of brokers said online platforms are important or very important when choosing an insurer to work with, while another 36% said they’re fairly unimportant or not important at all.
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Aviva Enterprise
Business insurance to keep your clients moving forward In today’s changing commercial landscape, Aviva recognizes that your client’s business doesn’t stand still – and neither should their insurance. Aviva Enterprise insurance offers the flexibility to customize a policy for any business, in any segment and tailor it to fit your clients’ specific needs. And it includes all locations and operations on one Property & Casualty policy. Designed to keep coverage simple, effective, and responsive, the policy evolves with the changing needs of business – including protection against potential cyber risks with Aviva Cyber Suite. Your clients can be confident they have the protection they want, when they need it.
Learn more at aviva.ca/avivaenterprise Business Insurance – Property | Casualty | Auto | Equipment Breakdown Aviva, the Aviva logo and Aviva Enterprise are trademarks used under license by the licensor. The Aviva Enterprise policy and Aviva Cyber Suite are underwritten by Aviva Insurance Company of Canada. Aviva Cyber Suite is only available with an eligible Aviva Enterprise property policy. Terms and conditions apply. For more details about our offerings, please contact your Aviva Underwriter.
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SPECIAL REPORT
5-STAR CONSTRUCTION INSURERS 2021 MGAs
BUILDER’S RISK/ COURSE OF CONSTRUCTION
COMMERCIAL AND CONTRACTOR GENERAL LIABILITY
ABEX
Agile Underwriting
Agile Underwriting
Agile Underwriting
Aviva Canada
Aviva Canada
APRIL Canada
Burns & Wilcox
Burns & Wilcox
Burns & Wilcox
Cansure
Cansure
Cansure
Chubb
Economical Insurance
Intact Insurance
Intact Insurance
Northbridge Insurance
Northbridge Insurance
Premier Group
Premier Group
Special Risk Insurance Managers
RSA Canada
RSA Canada
SUM Insurance
Starr Insurance Companies
Totten Insurance Group
Totten Insurance Group
Totten Insurance Group
Travelers Canada
Victor Canada
Wawanesa Insurance
Unica Insurance
CHES Special Risk i3 Underwriting Premier Group South Western Group
WRAP-UP LIABILITY
ENVIRONMENTAL LIABILITY
PROFESSIONAL LIABILITY
Agile Underwriting
Beazley
Agile Underwriting
Burns & Wilcox
Berkley Canada
Beazley
Cansure
Burns & Wilcox
Burns & Wilcox
i3 Underwriting Intact Insurance Northbridge Insurance Premier Group
Cansure Chubb Intact Insurance Markel Canada
Cansure CFC Underwriting Chubb Intact Insurance Liberty Mutual
Premier Group
Totten Insurance Group
Premier Group
SUM Insurance
Special Risk Insurance Managers
TruStar
Totten Insurance Group
Totten Insurance Group
Victor Canada
Victor Canada
Victor Canada
INLAND MARINE
AUTO LIABILITY
APRIL Canada Aviva Canada Burns & Wilcox Cansure CNA Coast Underwriting Intact Insurance Northbridge Insurance Premier Group Totten Insurance Group
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CONSTRUCTION INSURANCE
www.insurancebusiness.ca
D&O
Aviva Canada
Burns & Wilcox
CNA
Chubb
Economical Insurance
Intact Insurance
Intact Insurance
Premier Group
Northbridge Insurance
Totten Insurance Group
SGI Canada
Trisura Guarantee Insurance Company
Wawanesa Insurance
Victor Canada
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CIVIL CONTRACTORS Agile Underwriting Burns & Wilcox Cansure CNA Intact Insurance Northbridge Insurance Totten Insurance Group Victor Canada
SPECIALTY TRADE CONTRACTORS Agile Underwriting
GENERAL CONTRACTORS Agile Underwriting Aviva Canada Burns & Wilcox Cansure
Aviva Canada Burns & Wilcox
Intact Insurance
Intact Insurance
Northbridge Insurance
Northbridge Insurance
Totten Insurance Group Travelers Canada
PROFESSIONAL CONSTRUCTION SERVICE FIRMS
RSA Canada SGI Canada Totten Insurance Group
DEVELOPERS AND OWNERS
Agile Underwriting
Agile Underwriting
Aviva Canada
Aviva Canada
Burns & Wilcox
Burns & Wilcox
Cansure
Intact Insurance
Cansure
CNA
Premier Group
Intact Insurance
RSA Canada
Northbridge Insurance
Totten Insurance Group
Totten Insurance Group
Victor Canada
Travelers Canada
APRIL Canada
n
Agile Underwriting
Economical Insurance
Sovereign Insurance
s tr u c tio
SUBCONTRACTORS
Economical Insurance
RSA Canada
on
Aviva Canada Burns & Wilcox
Intact Insurance Northbridge Insurance RSA Canada Totten Insurance Group
HEAVY CONSTRUCTION
DEMOLITION
Agile Underwriting
Northbridge Insurance
Aviva Canada
Premier Group
Burns & Wilcox
RSA Canada
Cansure
Totten Insurance Group
CNA
Victor Canada
Intact Insurance
Agile Underwriting Burns & Wilcox CNA Northbridge Insurance Totten Insurance Group
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SPECIAL REPORT
5-STAR CONSTRUCTION INSURERS
CHES SPECIAL RISK
A
mong Gary Hirst’s many accomplishments in his career, growing CHES Special Risk from a three-person company to a 50-plus-employee operation in three major Canadian cities is a particular point of pride. Officially, he’s the company President and CEO, but he admits that building a successful company doesn’t come from holding the leader’s title. He describes his role more as being the company quarterback. “Growing a successful company starts with team-building, and I view my role as trying to make work easier for my team,” Hirst says. “Over the span of my career, I’ve acquired the ability to recognize the talent and experience needed to succeed.” And he counts himself lucky to lead a team of highcalibre employees. “Our recruitment mantra is ‘best person for the job,’” Hirst says. “Our team is given the latitude, trust and recognition to do their job without micromanagement – we hire based on professionalism and experience, and that is how the company has blossomed.” Hirst took ownership of the company in
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Phone: 647-480-1515 Email: gary.hirst@chesspecialrisk.ca Website: chesspecialrisk.ca
2016, with no business and three employees. The company now services over 1,000 brokerages across Canada with 50 employees. Hirst’s and senior management colleagues’ background in construction insurance has propelled growth in that portfolio and shown gaps in the market that CHES has filled with its niche products. CHES’ ability to underwrite these niche risks is not only due to expertise and hard work, but the relationships that it has built with brokers. “The amount of M&As is staggering, and it often forces brokers to do business with their competitors,” Hirst says. “When dealing with CHES, brokers are talking to an independent MGA, which adds an element to CHES that is unmatched.” CHES fosters broker relations through empathy – many CHES underwriters have experience on the broker side and therefore understand their stressors and policyholders’ needs, such as issuing policies within 48 hours of binding. Not only dedicated to his company, Hirst
is dedicated to the insurance industry in general and the MGA channel in particular, which inspired him to establish the Canadian Association of Managing General Agents, which operates based on three pillars: regulation, education and advocacy. His drive for running CHES Special Risk and establishing CAMGA stems from the same passion. “I love meeting people, talking to people and helping people,” Hirst says. “To a very large extent, it’s my way to give back to the industry after a 37-year career.”
2004
Year founded
3
Number of offices
50+
Number of employees
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AVIVA CANADA
F
lexibility and a customized policy: that’s what customers can expect when they sign up for Aviva Canada’s Enterprise business insurance solution, which sets it apart in the construction insurance game. “It’s everything in one package, regardless of the size and industry, and includes all locations and operations in one property & casualty policy,” says Fred Shurbaji, managing director of SME at Aviva Canada. Aviva’s builder’s risk coverage, for instance, combines builder’s risk and wrap-up liability coverages into one convenient policy to offer full protection of clients’ physical assets and liability exposures. Its contractor’s coverage is designed to meet the specific needs within many of the industry’s trades. Customized coverage is also available for civil construction, building components, electrical, new building construction and surface/ subsurface contracting. “Customers need to make sure they have
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Phone: 1-800-387-4518 Website: aviva.ca
adequate coverage or limits,” Shurbaji says. “Many customers today are buying coverage they don’t require and failing to purchase coverage limits they actually need.” To better support emerging needs for both commercial and personal insurance, Aviva Canada is innovating and making new product offerings available. “We are seeing an increased demand for telematics, cyber insurance, digital solutions and support for remote work,” Shurbaji says. “Aviva recently launched a modular commercial suite of cyber products, and we are investing heavily in data science and telematics.” That type of innovation and adaptability is what makes Aviva Canada one of the best P&C insurance groups in the country, with more than 4,000 employees providing home, auto, lifestyle and business insurance to 2.4 million customers. “I’m very happy that Aviva Canada has been recognized by brokers as a 5-Star
Construction Insurer,” Shurbaji says. “The award reaffirms the work we have been doing in this space – helping those in the construction industry build with confidence, knowing that Aviva Canada provides them with the right insurance to protect them. The risks facing the industry are quickly changing, and the need for comprehensive insurance solutions has never been greater.”
300+
Years in business
14
Number of offices
4,000
Number of employees
www.insurancebusiness.ca
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5-STAR CONSTRUCTION INSURERS 2021
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Aviva Canada
CHES Special Risk
Phone: 1-800-387-4518
Phone: 647-480-1515
Website: aviva.ca
Email: gary.hirst@chesspecialrisk.ca Website: chesspecialrisk.ca
ABEX
Northbridge Insurance
Agile Underwriting
Premier Group
APRIL Canada
RSA Canada
Beazley
SGI Canada
Berkley Canada
South Western Group
Burns & Wilcox
Sovereign Insurance
Cansure
Special Risk Insurance Managers
CFC Underwriting
Starr Insurance Companies
Chubb
SUM Insurance
CNA
Totten Insurance Group
Coast Underwriting
Travelers Canada
Economical Insurance
Trisura Guarantee Insurance Company
i3 Underwriting
TruStar
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FEATURES
SECTOR FOCUS: PROFESSIONAL LIABILITY
Northern exposure IBC talked to experts in professional liability to find out how the COVID-19 pandemic has affected the market
WHAT’S COVERED BY PROFESSIONAL LIABILITY INSURANCE? Defence costs Judgments Settlements and fines Breach of professional services Wrongful business practices
FIGHTING COVID-19 is a full-contact sport in Canada. Last year, when manufacturers were encouraged to alter their production operations to create personal protective equipment, legendary sporting goods company Bauer went from manufacturing hockey and lacrosse equipment to making face shields for medical professionals. “It impacted their risk profile,” says Daniel Lee, AVP of professional liability and cyber and financial institutions for Zurich Canada.
regarding the safety of the product.” This is just one example of how COVID-19 has impacted professional liability coverage. In a sector that was facing headwinds even before the pandemic hit, COVID-19 and its associated economic downturn accelerated hard market conditions. “The market was very much in a transitional period when the pandemic started, so it added another layer to an already complicated and dynamic situation,” says Brock
“We’ve been in a soft market for more than a decade. Now we’re suddenly seeing a retraction in limits, in coverage and a sharp increase in the pricing of accounts” Ian Breheny, Travelers Canada “Fortunately, we were able to help them with an insurance solution that made this critical production possible. Zurich’s legal team assisted with customer contractual language, and our casualty underwriter was able to confirm coverage for new risks related to product liability and representations made
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McKechnie, an underwriting specialist at CNA. “It remains too early to see the full impact of the pandemic on long-tail professional liability exposures, but certainly some trends are emerging.” McKechnie, who focuses on D&O and EPL, says he’s seen markets exit the space
Bad advice Conflicts of interest Source: HUB International
and underwriting guidelines tighten due to bankruptcies, stock market volatility, workplace safety concerns and layoffs. In addition, he says, growing inventories and rising defence costs have made some insurers more uncomfortable than usual. And layoffs and cybersecurity issues have led to an expected increase in the severity and frequency of claims. Ian Breheny, vice-president of field for specialty insurance at Travelers Canada, sums up the dynamic in a single word: “Volatile. In most areas that we participate, we’ve been in a soft market for more than a decade. Now we’re suddenly seeing a retraction in limits, in coverage and a sharp increase in the pricing of accounts.”
Cyber threats and class action suits If there’s one element of the pandemic that nearly everyone can relate to, it’s remote work. Last spring, seemingly overnight, millions of people started working from home. Businesses scrambled to roll out
technologies that would support workforces across vast geographical areas. Consequently, Lee says, ransomware demands have doubled year-over-year. “Hackers do not stop at the border, nor does their software distinguish the size of the company it targets,” he says. “Therefore, all Canadian companies, regardless of industry or scale, are at risk. In addition to the extortion payment, our customers also face additional expenses related to a forensic investigation, the costs of notifying impacted individuals as required by federal law, lost income from company downtime, and potential liability from third-party lawsuits.” McKechnie has many of the same
“Hackers do not stop at the border, nor does their software distinguish the size of the company it targets” Daniel Lee, Zurich Canada concerns. The work-from-home phenomenon, he says, has enabled bad actors to exploit tech vulnerabilities through cyber breaches and has put a bigger strain on corporate server technology. “Placing cyber and other professional liability risk is expected to be a challenge in 2021 and something worth monitoring closer
in the coming months,” he says. “Notice of circumstances on cyberattacks, ransomware and phishing scams have increased, and the lasting impact from the recent Microsoft breach could be significant.” In addition to cyber threats, there’s been an increase in class action lawsuits directly related to the pandemic.
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FEATURES
SECTOR FOCUS: PROFESSIONAL LIABILITY
CYBER INSURANCE VERSUS TECH E&O WHAT CYBER INSURANCE COVERS Network security and privacy liability Cyber extortion Regulatory fines and penalties Network business interruption/ extra expense WHAT TECH E&O COVERS Negligent acts, errors or omissions, misstatements, misleading statements, or misrepresentations in the rendering of technology services Failure of a technology product to work or to serve the purpose intended Source: Marsh
“D&O insurers have seen some larger securities class actions in the healthcare and financial service sectors from alleged pandemic-related mismanagement by insureds,” McKechnie says. “Corporate insolvency in industries largely closed because of quarantine regulations has resulted in more reported claims. Finally, shareholder’s oppression litigation has seen an uptick, with minority investors claiming prejudice by business owners focusing on their economic interests during the pandemic-driven downturn.” Breheny adds that Canada has seen various class action suits “related to longterm care facilities, schools and the travel industry. Claims such as these are triggering multiple policies: D&O, E&O, as well as CGL
“Placing cyber and other professional liability risk is expected to be a challenge in 2021 and something worth monitoring closer in the coming months” Brock McKechnie, CNA in many cases. Those are some that stand out. We are also now seeing the expected rise in EPL notices, given the tough decisions many of our insureds have had to make during COVID.” McKechnie is also concerned about other emerging risks. As the economy begins to reopen, he says, businesses will be placed under heightened scrutiny. In particular, he’s concerned about medical malpractice in healthcare and tax liability in the legal and accounting fields.
Looking forward Whatever the future might hold, McKechnie, Lee and Breheny all point to some positive side effects the pandemic has brought about.
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“Like many industries, the impact of corporate culture from the move to working from home has yet to be determined,” McKechnie says. “I feel I have adapted well to remote independent work, but not physically interacting and communicating with co-workers in such a dynamic marketplace is challenging, and the lack of collaboration will likely have long-term ramifications on many. I am proud of how well CNA responded to the needs of its staff last year and created an environment that maximizes productivity despite these hurdles.” For Lee, the pandemic has served as a reminder of the importance of focusing on underwriting fundamentals. At Zurich Canada, he says, the emphasis is on
customers and shareholders and maintaining a sustainable portfolio. “We do that by making data-driven decisions, where we let the data speak for itself,” he says. “We need to walk a fine line that allows us to manage our portfolio and also to do what’s right for the customer. If we can do that, we can showcase our ability to deliver on our promises.” Breheny agrees. “I think COVID and the impact of the pandemic has really sharpened our focus on what we should be covering and what we’re underwriting,” he says. “I think it’s going to be crucial for insurers moving forward to truly understand the risks in their portfolio and understand the true extent of the coverage they are providing.”
Beneva, the Newest Name in Canadian Insurance Big news in the insurance world: A new player is emerging to transform the insurance landscape. In January 2020, La Capitale and SSQ Insurance announced that they were joining forces. Now it’s a done deal and the company is unveiling its new brand: Beneva. A new name and identity fuelled by a desire to protect and return insurance to its roots: people looking out for people. During the unveiling, the organization stated that its members and clients will benefit from a unique approach in which they will always be at the heart of the company’s activities. Beneva is committed to guiding them through their life plans by providing the peace of mind they require.
Tapping into the Canadian market Beneva’s ambition is clear: Putting its expertise and know-how to work for all Canadians. By offering individuals, groups and associations a wider range of insurance products and financial services, Beneva will be well-positioned to leverage the Canadian market. “We are finding ways to increase our presence on a Pan-Canadian level. We are taking a prominent spot among the biggest insurance companies in the country, while remaining true to our people-first approach,” said Jean-François Chalifoux, President and Chief Executive Officer of Beneva.
Bringing insurance closer to people Jean-François Chalifoux is quick to point out that “the unveiling of Beneva solidifies the union and the vision of the new company” and that this allows Beneva to develop and foster a corporate culture that is “attentive to the needs of our members, clients and partners.” The company has made it clear that it would like to redefine the relationship between the insured and the insurer throughout the country. It will do so by offering simple and accessible products and services while contributing to the well-being of communities. Beneva’s kind and benevolent image demonstrates its desire to grow closer to people by remaining true to its mutualist values. With over 5,000 employees, the company will be counting on this unique approach to set itself apart. Beneva now has over 3.5 million members and clients who will benefit from its people-first and accessible approach to insurance. They will also be able to tap into its proven range of insurance and financial services and expertise. In fact, the coming together of La Capitale and SSQ Insurance will result in Beneva becoming the largest insurance mutual company in Canada. Members and clients also benefit from Beneva’s 75 years of experience in the insurance industry. With more than $20 billion of assets under management, Beneva is already an influential player in the Canadian insurance and financial services industry. The company will rely on the strength and talent of its employees to continue growing across the country. The integration of La Capitale and SSQ Insurance operations will continue to take place gradually. beneva.ca
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PEOPLE
BROKER INSIGHT
Broker and advocate Jody Lohr, the current president of the Insurance Brokers Association of Alberta, tells IBC how her involvement with the association allows her to champion the needs of both brokers and consumers
JODY LOHR calls her path into the insurance industry “100% a fluke.” Before working in insurance, she was a food and beverage supervisor at a golf course in Alberta, where she connected with one of the members, who happened to own an insurance brokerage. The connection landed her a receptionist job at the brokerage – but at the time, she had little knowledge of the insurance industry. “I really got into understanding the product and learning about why we offered what we were offering, and I thought, ‘Yep, this is for me,’” Lohr says. “I took my Level 1 broker licensing exam, got my licence and took on our personal lines book of business.” Lohr eventually moved into commercial lines and also started to take on operational day-to-day responsibilities and side projects to improve the brokerage and help its teams work more efficiently. She eventually became an office manager, and as her brokerage acquired other firms, she became the general manager for all of its locations. Finally, after a move from northern to southern Alberta, Lohr landed the position of VP of operations at Excel & Y/Lundgren & Young Insurance, where she’s been ever since. Lohr has also taken on a leadership position with the Insurance Brokers Association of Alberta (IBAA), serving as president of its 2020–2021 executive board. Her involvement with the association dates back
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to her time working in personal lines, when a friend in the industry told her they were signing her up for the board of the local brokers council. “I got my feet wet and gained an understanding of what the Insurance Brokers Association is … and I was hooked right from the get-go,” Lohr says. She ended up joining the IBAA’s Professional Young Insurance Brokers (PYIB), a group she eventually became president of. Later, she went back to the IBAA board, eventually taking on the role of president and accomplishing the milestone of being the first person elected president of both the PYIB and the IBAA. “[I really see] the importance of being involved,” Lohr says. “Being a voice for our brokers and consumers, helping facilitate those relationships, and ensuring that [people understand the] changes that are coming down from legislation or things that
insurers are doing with coverages so that our brokers can sell that and then professionally stand behind it, and it’s in the best interest of our consumers – that’s why we do what we do.” In recent years, auto insurance has been a particular struggle for consumers, brokers and insurers in Alberta. “It’s not profitable for the insurance side, and rates continue to rise for the consumers,” Lohr explains. Educating consumers on why their rates are rising has become a big part of brokers’ jobs in Alberta. Lohr adds that it can be “virtually impossible” to find coverage for customers if they’re in the medium- or highrisk categories, which makes the task even more challenging. “That’s one aspect of why I am such an advocate and [so involved on the] broker side of this industry,” she says. “Being a part of the brokers association means we’re there
ABOUT THE IBAA The Insurance Brokers Association of Alberta is a not-for-profit trade association representing more than 4,200 members from around 260 brokerages spread across Alberta, the Yukon, the Northwest Territories and Nunavut. IBAA members live and work in more than 150 communities and are closely connected with consumers, their insurance issues and their local economies. The IBAA dates back to 1926, when it was launched as the Insurance Agents Association of Alberta. The few insurance brokers in business at the time came together to network, discuss common issues and lobby on behalf of brokers.
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THE IBAA’S BENEFITS FOR BROKERS A voice with government, regulators and industry partners Education discounts, including access to CAIB designation Errors & omissions coverage Cyber liability coverage Business Boosters program No-cost marketing materials Members-only listing and access Annual convention Access to IBAA’s team
“Being a part of the brokers association means we’re there for our consumers and we stand behind professional advice”
for our consumers and we stand behind professional advice.” Losses from natural catastrophes have also been a burden on Alberta consumers in recent years. Damaging storms and the resulting property losses have made finding coverage for homeowners and businesses more of a challenge. Brokers are now educating customers on how to repair hail and wind damage and why they need to upgrade their roofs and siding to make their homes more resilient. “It’s a hard market for consumers and brokers right now,” Lohr says. “That’s why I’m in the association and why I’m a broker – it’s the importance [of ensuring] that peace of mind, trust and consumer awareness, and being there for our consumers. That’s why I’m on the journey that I’m on.”
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SPECIAL PROMOTIONAL FEATURE
CUSTOMER EXPERIENCE
Economical innovation Leaders from Economical Insurance reveal how the P&C insurer is going the extra mile to simplify the customer experience 64
THESE DAYS, people expect their interactions with companies to be fast and easy. After all, consumers with smartphones can use sites like Amazon to order a book in minutes and have it delivered in a few days. From a tablet, they can access and view a century’s worth of films with a couple taps of a finger. And even notoriously timeconsuming processes such as renewing passports, getting healthcare cards and using government portals are now easier than ever, thanks to emerging technologies designed to meet the ever-increasing consumer demand
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With a focus on providing simple and differentiated experiences, Economical Insurance is distinguishing itself with the latest digital insurance platforms. It’s a growing capability: The digital insurance platform market has an expected compound annual growth rate of 13.4% between 2020 and 2027, according to Data Bridge Market Research. Economical has blazed new paths over the past few years with Sonnet and Vyne. Sonnet, the first totally online home and auto insurance provider in Canada, generates consumer
The latest initiatives Economical has boosted its customer experience credentials further through partnerships with CSIO and Accident Support Services International (ASSI). “Earlier this year, Economical shared that it has implemented CSIO’s My Proof of Insurance for digital delivery of policy documents to select regions of Canada [Alberta, Ontario, Quebec and the Atlantic provinces],” Lalkovic says. “This means that customers can get their insurance policy information, including pink slips, securely via email.”
“By keeping our ear to the ground, we can quickly identify pressure points and pivot to develop industry-leading solutions for our customers” Tatjana Lalkovic, Economical Insurance
for an expedient lifestyle. “The insurance industry is behind when it comes to this streamlining of the customer experience,” says Paul MacDonald, executive vice-president of personal insurance at Economical Insurance. Tatjana Lalkovic, senior vice-president and chief information officer at Economical Insurance and a board member for the Centre for Study of Insurance Operations (CSIO), echoes his sentiment. “Consumers want to be engaged in the way they want, and it’s key for us to meet them there,” she says.
quotes in as little as five minutes. Vyne offers brokers a similar user experience, enabling them to future-proof policy administration and billing processes. Both technologies have received globally recognized innovation awards and have proven their worth over the past year during some trying situations. “Our prior investments in innovation and digitization, including Sonnet and Vyne and our digital pet insurance offerings, helped customers and brokers navigate their insurance needs and changes more easily throughout the COVID-19 pandemic, as they had access to information from anywhere, at any time, during a truly disruptive period,” MacDonald says. In addition, Economical was able to adapt to COVID-19 restrictions quickly by enabling 98% of its employees to work remotely within the first two weeks of the pandemic.
My Proof of Insurance launched in 2018 and was created through collaboration with insurers and brokers as a way to meet growing demand for digital solutions in the P&C environment. With it, insurance providers and brokers can instantly send documents across the country, saving the time and financial resources required for paper-based mail services, while getting the peace of mind of knowing that important documents are protected by bank-grade security. “We continue to inspire confidence by listening and responding to feedback from customers and brokers, with the goal to make insurance simpler and more sustainable,” MacDonald says. “With our customer experience rapidly becoming more digital, we’re pleased to now offer the option for customers who prefer electronic documents instead of print. CSIO’s My Proof of Insurance helps
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SPECIAL PROMOTIONAL FEATURE
CUSTOMER EXPERIENCE
us provide customers a convenient option to access their insurance documents digitally. This advancement reflects our commitment to drive innovation in the broker channel and to help our broker partners empower their customers with reliable and innovative service.” Through its partnership with ASSI, Economical has provided consumers with a facilitated means of making claims through collision reporting centres. “This partnership means that Economical policyholders will get a text notification with key information, including their claim number, the contact information of their claims adjuster and the status of their claim as it progresses,” MacDonald says. This innovation mindset seems to be natural at Economical. “We have a diversely experienced leadership team, which together is focused on continuous purposeful innovation and thinking outside the box,” Lalkovic says. “I am a big supporter of agile delivery practices with close business collaboration and measurable incremental value. By keeping our ear to the ground, we can quickly identify pressure points and pivot to develop industry-leading solutions for our customers.”
What the future holds Economical is dedicated to continuing to deliver easy-to-use products and services that brokers and customers demand. On the cutting edge of the latest trends, Economical partnered with Uber Canada earlier this year and is monitoring trends such as autonomous vehicles to see how the company can better leverage and service emerging technologies in the future. Meanwhile, Lalkovic is thinking longterm and believes the insurance industry will remain focused on cloud, data, cybersecurity and insurtech solutions 10 years from now. “Leveraging data is critical for success,” she says. “Businesses must consider augmenting
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“One of the great things about working in the P&C insurance industry is the constant change and evolution that happens here” Paul MacDonald, Economical Insurance their existing infrastructure with reusable frameworks and automation to enable agility. These models will allow you to continuously explore the data in different ways, create technology flexibly to enable the exploration, trust the data and have it secured – all critical for innovating with speed and purpose.” MacDonald also looks forward to what the future might bring. “One of the great things about working in the P&C insurance industry is the constant change and evolution that happens here,” he says. “Economical is prioritizing this change and making smart decisions, alongside our valuable broker partners, that will ensure we are prepared to succeed in the long term.”
ABOUT ECONOMICAL INSURANCE Economical Insurance has been insuring everything from businesses and farms to homes and cars for 150 years. The company is one of the leading property & casualty insurance providers in Canada, with a reputation for rolling out innovative new customer services. Economical places a premium on being there for customers in times of need. As a result, 89% of Economical customers are happy with the company’s services, according to post-claim surveys. For more information, visit economical.com.
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FUTURE FORWARD HERITAGE PROUD In our 150 years, we’ve experienced so many proud moments. But through all the progress, victories, and challenges, being there for Canadians when they need us most has been the greatest privilege of all. We’re honoured to continue to earn the trust of our customers and broker partners through truly innovative insurance solutions. economical.com
property | auto | business Economical Insurance includes the following companies: Economical Mutual Insurance Company, Family Insurance Solutions Inc., Sonnet Insurance Company, Petline Insurance Company. ©2021 Economical Insurance. Economical and Economical Insurance are registered trademarks of Economical Mutual Insurance Company. All Economical intellectual property belongs to Economical Mutual Insurance Company.
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FEATURES
MENTAL HEALTH
Three ways to future-proof your success To build a sustainable small business, you must have three pieces of the mental health puzzle in place first, writes Anastasia Massouras are compounded when you aren’t big enough to afford dedicated HR support and don’t have systems or processes in place to deal with everything you’re required by law to do. Yet we rarely hear stories about small business owners’ lack of support or mental health problems, which research shows that more than one-third of people are reluctant to reveal. Workplaces of all sizes are impacted by poor mental health, and evidence suggests psychological distress is most acute for sole traders. What to do? There are three key mental health elements you need to address to make sure you have a sustainable business, no matter what size you are.
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SMALL BUSINESSES everywhere are struggling. They’ve been hit especially hard by the COVID-19 pandemic – according to Statistics Canada, 29.5% of businesses with fewer than 100 employees reported a
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revenue decline of more than 30% in 2020. But even before the pandemic, spiralling overheads and payroll costs, working up to 80 hours per week, and struggling with cash flow were all too common. These challenges
Be aware of what’s going on
If you aren’t aware of yourself, how can you effectively lead yourself ? If you’re not effectively leading yourself, then how can you effectively lead others? This begins by gaining awareness of the thoughts, beliefs and values that drive your decisions, behaviours and actions. What are your motivators, passions and goals in life? How do you respond to triggers, stressors and difficult situations? It’s important to achieve clarity about why we do what we do in our business and in our lives. If we have a clear vision of purpose and meaning, we are more likely to maintain a growth mindset, negotiate challenges and
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make good choices. Identifying areas for growth and then connecting with the right professionals to fill those gaps will accelerate your success, as well as continuously maintain your health and happiness.
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Cultivate a growth mindset
The way you think has a ripple effect in every aspect of your life. Limiting thoughts and limiting beliefs about yourself and your capabilities will restrict your progress and success. Hence, cultivating a growth mindset could be the single most important thing you ever do to help you achieve success. As Carol Dweck explains in Mindset: The New Psychology of Success, the passion for stretching yourself and sticking to it, even (or especially) when it’s not going well, is the
hallmark of the growth mindset. This means seeing and embracing failures as opportunities for growth, as lessons to be learned and applied. This is what will help you navigate the high and low tides that always come with running your own show.
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Maintain your stamina
Running your own small business is a 24/7 activity, which is why you need to be mentally healthy, fit and strong. There will always be pressure – it will never go away. There will always be setbacks, failures and obstacles. What counts is how you deal with that pressure, with those setbacks and obstacles. It’s essential to move away from simply reacting to events and toward responding to events. Making conscious choices each day about what to eat, when to
exercise, and how to switch off from work and on for home is the recipe for success and stamina in business. Your awareness, mindset and stamina are like three cogs in a machine. They must be connected and coordinated to work smoothly and effectively together. Maintaining and sustaining this takes real work, and the only person who can do it is you. Your mental health, well-being and happiness are key to your success and your future. Anastasia Massouras is the CEO of Work Happy, which provides well-being and employee assistance programs and tailored advice for companies. She is also the founder and CEO of Pure Insights, a consultancy specializing in mental health intervention.
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FEATURES
LEADERSHIP
When to go for good enough In a culture focused on achievement, success and making things perfect, how can leaders know when striving for something better is a waste of time? Lynne Cazaly explains how to let go of perfection and embrace ‘good enough’
HOW OFTEN while working on a task or project have you thought, “It’s not done yet,” “It’s not good enough” or “I couldn’t share that … it has to be better”? We can feel it’s not good enough yet and believe there’s still work to be done to make it better, to make it perfect. Shouldn’t you try to do things perfectly? It turns out, no, not at all. Research by Argyro Avgoustaki and Hans Frankort, gathered from more than 50,000 people across 36 countries over a five-year period, showed that extra work effort was “associated with reduced wellbeing and inferior career-related outcomes.” Avgoustaki and Frankort’s research showed that the harder people worked, the more likely they were to report stress, lower satisfaction and inferior outcomes. Working too hard burns us out and doesn’t result in the success – career or otherwise – that we might expect. It sounds crazy, but their research found that doing less at work can actually help us achieve more. We can afford to spend less time on things thanks to two theories of activity. The law of
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diminishing returns (that our return on effort reduces over time) and the 80/20 rule or the Pareto principle (that just 20% of our efforts yield 80% of the results) are two approaches that validate the practice of going for good enough rather than the waste of perfection. Next time you’re working on a proposal or report or developing a new system or process, stay alert to your desire to pursue perfection. Good leadership starts with us modeling behaviours for others; here, it’s about knowing when good enough is good enough.
The rise of perfectionism The problem is perfectionism is on the increase. Research by psychologists Thomas Curran and Andrew Hill revealed three types of perfectionism:
Self-oriented (“I expect high standards of myself ”)
Societal (“I believe society expects high standards of me”)
Other-oriented (“I expect high standards of you”)
All three are on the rise, but societal perfectionism has increased the most, by 33% over the past couple of decades. Future projections don’t look good, either. The hitch with perfection is that it simply doesn’t exist, and pursuing it is a foolish and wasteful activity. If we find ourselves – or a team – staying back, taking work home or working on weekends in a devoted effort to make something better, it’s likely there’s a wasteful pursuit of perfection underway. The more contemporary preference is to go for ‘good enough’ or ‘ish’, which means near enough. The practice is to work on a
smaller piece or packet of work – an increment – and work until it’s good enough to get feedback, good enough to test it out with customers or clients, or good enough to try again and improve via a new iteration. It’s a process used successfully by lean startups, technology teams and software developers. Increments and iterations are the new perfect. They’re more effective in helping us make progress over perfection.
How to go for good enough There are four things you can do to set a course for good enough rather than the pointless pursuit of perfection.
than expecting perfection.
4
Assess whether ‘near enough’ is good enough
Check whether ‘ish’ might be feasible, doable or acceptable to the business more often. It’s a major productivity gain, and it’s more motivating for teams when they complete work. If you spot perfectionism behaviours or hear people being highly critical of themselves or others, know that a standard isn’t clear enough and perfectionism could be at play. Step in, coach, guide or suggest that a specific standard might help everyone get on
Increments and iterations are the new perfect. They’re more effective in helping us make progress over perfection
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Stop expecting or requiring perfection
2
Make the standard clearer
Accept first drafts, rough cuts and mock-ups. The design industry thrives on them to gain early feedback and ensure the efficiency of work going forward.
Great leaders clarify the end goal or outcome beyond a generic call for ‘high quality’ or ‘really good.’ Explain the standard in a measurable way; it will help people enormously.
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Improve over time
Allow learning, iterations and insights to build on first attempts. The best and brightest organizations know the power of improving over time rather
the same page, gain alignment and work to achieve the goal. There will be less stress and greater success. Don’t let perfectionism get in the way of doing good work – for yourself, your team, and those you advocate for, partner with or support within the organization. Getting work done using increments and iterations beats the stress, burnout and mental health effects of perfection-chasing every time. Lynne Cazaly is a keynote speaker and advisor who helps businesses think and work in ways that are more productive, collaborative, creative and effective. She is the author of ish: The Problem with our Pursuit for Perfection and the Life-Changing Practice of Good Enough. Find out more at lynnecazaly.com.
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PEOPLE
OTHER LIFE
8
Years Watson has been in the ministry
TELL US ABOUT YOUR OTHER LIFE Email insurancebusiness@kmimedia.ca
2
Number of congregations he has served
15–20
Average number of people he ministers to each week
Watson holds a bachelor’s degree in theolog y a nd a master’s in religious education from St. Paul University in Ottawa
MAN ON A MISSION As a part-time minister, Guardsman Insurance Services’ Thomas Watson lends an empathetic ear to people struggling with life in lockdown THOMAS WATSON has made it his mission to reach out to those affected by COVID-19 lockdowns. A vice-president at Guardsman Insurance Services and a non-denominational Christian minister, Watson spends a lot of time on the phone and online to help people work through their emotions and feelings of isolation, loneliness and loss. Watson entered seminary with the
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Anglican Church of Canada right out of high school but ultimately decided to continue his family’s insurance business. However, it wasn’t long before the ministry called him back. “I had the opportunity for ordination in a wonderful community that allows me to minister around my work,” he says. Even before the pandemic, Watson says his preference was to minister to
people in their day-to-day lives, rather than preaching a sermon every week. “I spent a lot of time doing weddings, baptisms and funerals, while occasionally providing pulpit relief to other ministers who needed some time off,” he says. “Sadly, with being unable to meet in person safely, many people have lost their support network, so I try to plug the gaps and help people live through the lockdowns.”
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WIICA
CANADA
JUNE 15, 2021 | ONLINE The Insurance Business Women in Insurance series has been a global success story, empowering and celebrating women around the world – and we’re continuing our mission with all-new virtual events in 2021. Don’t miss Women in Insurance Canada, where you’ll network and exchange ideas virtually with prominent women in the industry, hear from leaders with diverse backgrounds about their journeys to success – and much more. This leading event will also feature the Women in Insurance Awards, so be sure to nominate your insurance superstars for a well-deserved accolade – go to women.insurancebusiness.ca/awards-categories/ to put their names forward for these awards: Excellence in Mentorship Award
Rising Star Award
Employer of Choice Award
Register now with our pre-launch offer of $129 Use code: WIICA21
GOLD SPONSOR:
SILVER SPONSOR:
BRONZE SPONSOR:
AWARDS LUNCHEON SPONSOR:
FOR SPONSORSHIP ENQUIRIES:
FOR SPEAKING OPPORTUNITIES:
JOHN MACKENZIE Vice President Sales
JESSE FRIEDL Global Conference Production Manager
T: +1 416 644 8740 ext 252 E: john.mackenzie@keymedia.com
T: +1 720 650 4488 ext. 9412 E: jesse.friedl@keymedia.com
women.insurancebusiness.ca
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SOCIAL MEDIA SPONSOR:
REGISTER HERE
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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. www.trisura.com
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