NAVIGATE Vol. 1

NAVIGATE Navacord Benefits Newsletter

June 2022

The State of Cyber Security in Canada

Volume 001

Welcome to NAVIGATE

Canada’s 2022 Federal Budget

Mental Wellness in the Workplace

Helping Young Employees Prepare for Retirement navacord.com

CONTENT 01

Welcome to NAVIGATE

02

Canada’s 2022 Federal Budget: A Future Outlook

03

The Benefits of Helping Your Young Employee Force Plan Better for Retirement

04

Mental Wellness in the Workplace

05

The State of Cyber Security in Canada

3

Welcome to NAVIGATE

Dear Reader, As Navacord continues its journey of Building The Great Canadian Brokerage™, we—as Navacord Broker Partners—stand together in our commitment to being a vital component of our clients’ success and making substantial, meaningful differences in the organizations and communities with which we do business.

To amplify our efforts, we are thrilled to introduce the inaugural issue of NAVIGATE—a Group Benefits & Retirementfocused newsletter that we promise to deliver three times annually.

NAVIGATE stems from our role as advisors.

We are here to ensure that we guide you— our clients, whether big or small, individual

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or group—through the multifaceted system of benefits, value-added services, programs, and investment and retirement solutions to a place of understanding and alignment with your goals. Here we will distill the complex and help map future considerations.

Navacord prides itself on a culture of collaboration, and that is the driving force behind NAVIGATE. As group benefit, retirement, and financial services advisors from across Canada, we are bringing our expertise together to ensure that our clients, and their people, are informed, prepared, and up-to-date on issues that affect their goals and objectives.

With deep expertise spanning coastto-coast, this is something only Navacord can bring to you.

In this publication, we have developed four pieces that we think are especially relevant in today’s current business landscape. First, we discuss why Canadian employers should target their young employees to plan better for retirement and how this can positively impact company culture. Then, we dive into the 2022 Canadian Federal Budget and the implication of these allocated funds to your business. Next, we talk about the value of mental health supports in the workplace—and how it is not a product you can buy, it’s a culture. Lastly, we shed light on the state of cyber security in Canada and managing your biggest cyber risk—your employees.

You can trust that the contributors who helped make these articles possible are among the most esteemed and knowledgeable leaders across the industry, who know the business inside and out, who stand by Navacord’s promise to be an integral part of client success stories, and most importantly, who share a passion for helping people. Though we have established ourselves as one of the country’s leading brokerages and consulting firms, we know that one part of our journey remains constant: we revolutionize. We continuously strive to go beyond the standards set by our competitors and blaze new trails—set new calibers and break down barriers.

Currently, 15% of Navacord’s business is aligned under Benefits & Retirement consulting, but it is a strategic area of growth. We recognize that the purpose behind this sector is strong and meaningful. It’s part of a business’ strategic plan, and an individual’s livelihood—their future, their health and wealth.

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Who We Are We are the fastest growing multiline brokerage in Canada.

Our purpose is to empower our Broker Partners, enable advisors, and provide opportunities to enrich the clients and the communities we serve. Our strategy allows the entrepreneurial spirit to thrive by preserving the independence and boutique experience of our Broker Partners, and building on the deeply rooted, long-standing business relationships of our top experts and trusted advisors to create transformative growth across Canada.

B2C

PERSONAL LINES Whether it’s the best rates of seamless client experience, our broker partners have the infrastructure and support for best-in-class personal insurance.

25%

15%

60% B2 B

COMMERCIAL LINES B2 B

CONSULTING Navacord broker partners deliver innovative benefits packages, retirement solution, individual financial services to protect the health and wealth of employees.

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Whether it’s the best rates of seamless client experience, our broker partners have the infrastructure and support for best-in-class personal insurance.

Navacord Fast Facts

Top 5 commercial broker in Canada 60% Commercial Lines

4th Largest Brokerage in Canadar

50,000+ Clients

~2,000+ Employees

~$400mm Revenue

25% Personal Lines 15% Benefits

~$3.5 Billion Annual Premium

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LL LIFE LINE

BROKERS LTD.

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Benefits Overview The Navacord nationwide benefits practice provides innovative and cost-effective group benefit, retirement, life insurance, niche and investment solutions as well as third-party administrative services.

Q U I C K FAC T S

55%

21%

GROUP BENEFITS

RETIREMENT

(Health, Dental, Life AD&D, Disability, EAP,)

(DB, DC, DCSP, RRSP, TFSA)

$1B+ in Premium ($4B+ AUM) ~$55mm in Revenue 30+ Carriers 4,000+ Clients

12%

~190 Employees 80% Revenue of CAGR since 2017

3%

L I FE

INVESTMENTS

(Basic, Optional, Dependent)

(Wealth management, mutual funds)

We’d also like to take the time to introduce Navacord’s nationwide expertise and familiarize you, our reader, with the unique multiline approach of our business.

Beyond the Group Benefits & Retirement markets, from coast to coast our Broker Partners specialize in personal lines and commercial lines, from transportation, hospitality, construction, and everything in between. We employ approximately 2,000 Canadians and have established our well-known status as the fastest growing multiline broker in the country. We manage approximately $3 million in premiums, with over $4 billion in assets under management and have never stopped fostering our entrepreneurial spirit that led to our start with a single moment of disruption in 2014.

One of our primary goals as we build The Great Canadian Brokerage™ is to help our clients face the complex world we live in with confidence, knowledge, and motivation—the confidence to do what you need to do, the knowledge to execute it properly, and the motivation to start. We hope that these articles can empower you to do exactly that.

Thank you, reader, for allowing us to do what we do best, and for being a part of this journey as we tell the story of The Great Canadian Brokerage™ and build futures across our industry and yours.

We sincerely hope you enjoy this inaugural issue of NAVIGATE.

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Federal Budget

B

UDGET

Canada’s 2022 Federal Budget: A Future Outlook

Navacord Benefits Newsletter

In April of this year, Canada’s 2022 Federal Budget was announced by Deputy Prime Minister and Minister of Finance, The Honourable Chrystia Freeland, intended as “A Plan to Grow Our Economy and Make Life More Affordable.”

Part of The Budget’s expenditures involved continuing support for mental wellness and health, sustaining climate change action, stimulating first home planning, as well as expanding support for Canadian workers and public healthcare, including national dental care and pharmacare.

Certain measures—specifically, national dental care, national pharmacare, and Canadian worker support—may have direct implications on the group benefits and retirement planning sectors, their clients, and the employees of their clients.

Based on the disbursements projected from The Budget, we have put together a Future Outlook and what these implications could possibly determine, influence, or affect.

One of the key takeaways from The Budget that we’d like to share with you is that any resulting connections to benefits plans designs, sponsor costs, or the nature of our industry in general, will be future-oriented—though there wasn’t much in The Budget that could change the fundamental aspects of group insurance today, most impacts will trickle down slowly and softly.

National Dental Care The Budget pledged to provide $5.3 billion in funding over the next five years and $1.7 billion ongoing to Health Canada, to power dental coverage for Canadians. Starting with those under 12 in 2022, the program will then expand to include those under 18, seniors, and persons living with a disability in 2023, leading to full implementation of the program by 2025. The program will apply to families with a household income of less than $90,000 annually, with no copays for those earning less than $70,000 annually.

If a Canadian plan sponsor assumes this announcement means they no longer need to provide dental coverage to their employees, the short answer to that is no—it’s not likely that you’re looking at a hard stop of your employee dental benefits. However, because employees and their families will be reconsidering what they require from their employer in tandem with the national program, reduction in dental plan costs is possible.

“This is one of the major announcements from The Budget that will move many Canadians to wonder, ‘what’s next?’ Will this affect me at some point?”

As for plan providers, the possibility of decreased revenue due to fewer claims comes into play. However, the chance to reinvest these funds creates a window of opportunity for strategy and innovation in plan design.

National Pharmacare The Budget proposed that ongoing work towards a national pharmacare program will continue—this includes tabling and passing a Canada Pharmacare bill by the end of 2023 and tasking the Canada Drug Agency to create a national formulary of essential medicines and a bulk purchasing plan.

To date, the concept of national pharmacare that has been part of the federal government’s policy platform pertains to funding medications for Canadians diagnosed with rare diseases— diseases that necessitate the use of high-cost drugs that can end up (today) being covered by private plan sponsors. While these kinds of diseases don’t reflect a large portion of the population, they represent a large dollar spend nationally, and present challenges to plan sponsors that may have employees or their dependents that rely on these medications.

While it’s still quite early to predict how the implementation of national pharmacare can affect Canadian employers, it may be possible that covering these high-cost, life-enabling drugs will no longer be a responsibility of private plan sponsors.

Additionally, a reduction in price of more common prescription drugs may occur.

– Todd Stephen, Vice President of Employee Benefits & Pension, Selectpath Benefits and Financial Inc.

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“While there’s still many details that need to be fleshed out, some form of national pharmacare can help fill in the gaps for Canadians that rely on certain high-cost medication but don’t have coverage of any kind.”

– Todd Stephen, Vice President of Employee Benefits & Pension, Selectpath Benefits and Financial Inc.

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Expanding Support for Canadian Workers The Budget committed to extending the length of EI (Employment Insurance) sickness benefits from 15 weeks to 26 weeks, effective Summer 2022, and increasing the federal minimum wage to $15.55, effective April 1, 2022. As our economy revives itself in the aftermath of a twoyears-long-and-counting pandemic, the federal government plans to re-evaluate the EI program with proper consultation from Canadians, to build an EI structure that better reflects the current and future needs of the workforce and employers.

These measures comprise the federal government’s commitment to investing in the success of Canadian workers and employees, a vital component to ensuring that Canadian businesses have access to a diverse and well-equipped workforce.

Because of the extended EI sickness term, plan sponsors that offer short-term disability plans which cover the EI period may have to extend the length of their programs as well. To continue to qualify as employers that have a designated short-term disability program in place and be eligible for a reduction in their EI premiums, the adjustment can potentially lead to a large dollar liability as most of these plans have rates based on claims. Financial obligations may also occur for employers that often top up EI, due to the commitment to top up for a prolonged period.

To conclude…

As we continue to keep you informed of relevant insights and let you know what we predict may be coming down the pipeline, we encourage you to remain educated on pertinent matters from our government and the world we live in.

For Canadian employers that haven’t historically taken a holistic approach to their operations or business strategies, now may be an opportunity to strategize, analyze, and envision what the future could look like.

“Businesses that are holistic in how they look at, analyze, and take away from these developments may be able to leverage more opportunities from The Budget announcements than those who don’t.”

– Todd Stephen, Vice President of Employee Benefits & Pension, Selectpath

Sometimes, taking a step back and looking at the bigger picture can help you figure out the details.

Sources: https://budget.gc.ca/2022/report-rapport/toc-tdm-en.html

Contributor

Ultimately, there are some Canadian employers who will have to adjust and scramble to do so in Summer 2022, whether they self-insure and have their own salary continuation plan, are plan sponsors, or have no program in place at all.

“For organizations that don’t currently have any plan in place, this announcement may drive them to realize they’re not comfortable with their workforce living off a reduced salary for 26 weeks and push them to take action with some form of enhanced income program.” – Todd Stephen, Vice President of Employee Benefits & Pension, Selectpath

Todd Stephen Vice President, Employee Benefits & Pension Selectpath Benefits & Financial T: 1 833 832 2230 E: tstephen@selectpath.ca

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The Benefits of Helping Your Young Employee Force Plan Better for Retirement

Why you should help your young employee force plan better for retirement—and how it benefits your business Contributor: Rahim Peera

With national inflation endlessly skyrocketing, some may argue that saving for retirement has never been more pressing than it is now. But often, businesses that offer Group Registered Retirement Savings Plans (RRSPs) will see a certain cohort of employees that don’t take advantage of maximizing their employer-backed plans—the generation that retirement seems unfathomable to. It’s too far away to think about.

It’s out of reach. There’s lots of time, isn’t there?

Navacord Benefits Newsletter

In fact, there is lots of time. Plenty of it.

That’s exactly the advantage that young Millennials and Generation Z have over older Millennials and Generation X. With an aggressive competition for their dollars—paying down student debt, statistically making lower income than their seasoned colleagues, first home planning, and wedding planning, among many others on the list—the one category that becomes ignored in the Game of Life is, you guessed it: retirement planning.

Time is money, and the youthful have time on their side.

How can your business target these employees and ensure they’re getting the most out of your offerings? It’s helpful to start by putting things into perspective. A basic factor as to why those under 30 or in their 30s may not be thinking about prioritizing retirement is because they’re not aware of the opportunity cost—the free money they’re leaving on the table. They also don’t realize the gap this can create, which can add up to hundreds of thousands of dollars thanks to compound interest by the time they’re ready to hang up their boots and bid riddance to the working life.

It chalks up to enforcing some key messaging: there’s no better time to start than the present, a message any good consultant will tell their clients.

“Even with our clients that have been with us for many years, we continue to take the time to offer them ongoing education, provide resources, and assist them in any way we can. We’re always here to be their partner as their business thrives and makes strides among their competition.”

– Rahim Peera, Senior Vice President of Group Retirement Services, Penmore Benefits

As a business owner, you may be wondering: aren’t some opt-outs good? They save us money. I don’t mind having a few staff that don’t maximize our plans.

It’s not my responsibility to ensure that they do.

While you’re right that you are technically saving money by not having to match as much of your employees’ contributions, it will cost your business in different ways.

anywhere between 55 and 60 and living to 90 or older means a minimum of 30 years of income to last through the golden years, maintaining the lifestyle one has become accustomed to prior to retirement.

Replacement ratio: the amount of money you need at retirement to maintain your lifestyle. The general rule of thumb is that retirees need a 70% replacement ratio in retirement—that’s to live comfortably, to live holistically, and to live with the content and ease that your golden years are supposed to be all about.

“Depending on how you plan for your retirement, you’ll be faced with two outcomes when the time comes: you can live out the comfortable, financially independent and relaxing retirement you’ve always envisioned; or, you’ll find yourself having to make heavy choices that defeat the purpose of what your retirement should truly be about.” – Rahim Peera, Senior Vice President of Group Retirement Services, Penmore Benefits

Manulife’s 2022 Canada Retirement Study1 surveyed plan members across the country about the connection between stress, finances, and well-being. A vast majority of respondents—70 per cent—that worry about their finances reported that they would be much more productive at work if their financial stress didn’t creep into their daily thoughts.

Helping your employees plan better for retirement doesn’t have to be daunting, tedious, or a rarity. It is an integral component of a good business’ reputation, talent retention, and growth strategy. Target those who need support the most and let us help you along the way. We can’t wait to see you reap the benefits.

Aside from productivity measures, there is an increasing gap in retirement readiness among Canadian workers: more than a third reported falling behind or far behind, and because of this, more than a quarter expect they will retire later than they originally planned.

Sources:

As for how this affects Canadian employers, there is an opportunity to make a positive difference in employee financial wellness and fill in this gap. The majority of participants confirmed that they would be interested in receiving help from their employers with budget managing and setting up emergency funds, among other tools and resources for saving and handling money. Alleviating employee stress and emphasizing financial wellness at work—small steps that help to break down the societal taboo around money talk—can be a catalyst in enhancing both employee well-being and organizational success.

Beyond the implications of financial worries, there’s the simple fact that the life expectancy of human beings is longer than it’s ever been. In Canada, as of 2022, the average life expectancy stands at 82.81 years2.

For Canadians that exercise and eat well regularly, have optimal genetics, and believe that they will surpass the average life expectancy, to plan on retiring

Retirement… It seems far away, but it’s closer than you think, and longer than you think.

1. https://rb.gy/4ogioh 2. https://www.macrotrends.net/countries/CAN/canada/life-expectancy

Contributor

Rahim Peera Senior Vice President, Group Retirement Services Penmore Benefits T: 905 669 5577 Ext. 235 E: rahim@penmorebenefits.com 15

Mental Wellness In The Workplace

Mental Wellness in the Workplace: it’s not a product you can buy, it’s your culture Contributor: John Cochrane

Navacord Benefits Newsletter

Today, mental health related conditions have surged to be the #1 cause of longterm disability claims, standing at 40-45 per cent of all claims. Surpassing every other health-related disability claim, including musculoskeletal and connective tissue claims (the former frontrunner for many decades) there is a corresponding question Canadian employers must ask themselves: What are we doing to advocate for, support, and encourage mental wellness in our workplace?

Though mental health related claims have risen to be almost half of all long-term disability claims, only 10 per cent of benefits spend across Canada focus on mental health supports. Mental health has historically been ignored within the three-pronged approach

to holistically managing employee well-being, trailing behind financial wellness and physical health. Pre-pandemic, almost 59 per cent of employees reported struggling with mental health and 61 per cent of those employees are not using their workplace benefits.

While it remains common that Canadian employers will reflect on whether the salaries they offer are competitive enough in today’s job market or whether their dental plan or vision plan can be improved, seldom are organizations successful in implementing a strong mental wellness strategy.

Ultimately, there needs to be a shift from reactively managing mental health in the workplace to proactively managing it. As the

world continues to navigate the aftermath of a pandemic that’s lasted two years and counting, there is a future pandemic on the horizon if it is not already here: deteriorating mental health. A recent survey conducted by Sunlife which polled working Canadians found that 56 per cent of respondents felt COVID-19 has negatively impacted their mental health1.

What a lot of organizations may not realize is that mental wellness in the workplace isn’t simply a product you can buy—it’s a culture.

This means that while enforcing mental health supports into employee benefits plans is a vital first step to take, evaluating your business’ mental wellness culture doesn’t stop there. Are your employees tasked with more work than they can handle?

Do people feel heard, safe, and valued among their colleagues and executives?

Do your clients feel tension and pressure when speaking to their representatives?

According to Manulife’s 2021 Wellness Report2, 48 per cent of Canadian workers reported experiencing at least one workrelated mental health risk factor, the top three stemming from balance, involvement and influence, and workload management.

According to the Mental Health Commission of Canada3, the 13 factors of psychological health and safety in the workplace are: •

Organizational Culture

•

Psychological and Social Support 17

“Employees are often the greatest asset of any business.

Sometimes, they are a company’s only asset and they must be cared for.”

– John Cochrane, President & Partner, Jones DesLauriers | Group Benefits & Retirement

•

Clear Leadership & Expectations

•

Civility & Respect

•

Psychological Demands

•

Balance

•

Psychological Protection

•

Growth & Development

•

Recognition & Reward

•

Involvement & Influence

•

Workload Management

•

Engagement

•

Protection of Physical Safety

When employee mental health isn’t being prioritized, the livelihood of a business—its sales production, its profits, its environment, its reputation—is in the line of fire. It can start out in ways you may not even realize are festering. They happen quietly and slowly at first, just background noise, until they have grown into full-fledged culture challenges that will have you stumped and searching for a clue as to where it all went wrong.

Even if your staff and their dependents seem to be mentally well as far as you know, the reality is that there’s a lot that happens behind closed doors. For large organizations, to keep track of every employee’s mental health is virtually impossible. But, that’s the point: acknowledging and encouraging workers to look after their mental health is as much of a vitality to a business as their physical medical and dental plans are.

Unfortunately, much societal stigma still exists surrounding mental illness and accessing resources that aid in mental health support— one of the underlying obstacles that Canadian employers can address on behalf of their staff.

“From a reactive standpoint, access, cost, and stigma are the three underlying barriers a Canadian employer must address when fulfilling mental health support in the workplace and it varies from employee to employee.”

– John Cochrane, President & Partner, Jones DesLauriers | Group Benefits & Retirement

- Unhealthy, harmful work environment

Impacts of poor employee mental health on the employer:

- Increased amount of sick days - Stress of greater workloads on colleagues - Decreased profitability and productivity - Higher disability costs

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Without mental health supports in the workplace, the thought process of an individual struggling with their mental health or a mental illness can look like this: Access: How and where do I get the appropriate help for my symptoms? I don’t know where to begin and I am concerned with obtaining the right care.

Cost: What is this going to cost me? Will I have to worry about cutting back on my child’s extracurriculars to afford getting the help I need?

Stigma: What will my colleagues think of me if they find out I’m struggling mentally?

Will I be excluded or possibly fired for being diagnosed with a mental illness?

But, with the adequate mental health support structure set in place, that same employee’s thought process could instead look like this: Access: I have several confidential resources through my benefits program to understand the best course of action for me. Our recent mental health seminar advised us on how to take first steps when we notice we’re struggling.

Evaluating the mental wellness culture within your workplace requires ongoing attention, ongoing analytics, and ongoing communication to generate measurable results and visible changes. However, the inclusion of mental health support is no longer an option—it’s become a necessity. Canadian organizations have a responsibility to the human beings they employ that are the lifeline of their business—because without them, there simply wouldn’t be one.

Mental wellness in the workplace: it’s a return on investment.

Take action—for yourself, for your employees, and for the generations to come.

Sources: 1. https://www.sunlife.ca/content/dam/sunlife/regional/canada/ documents/grs/SLF_GRS_COVID-19_Infographic_E_final.pdf 2. https://www.manulife.ca/business/group-benefits/ wellness-report/wellness-report-in-2021.html 3. https://mentalhealthcommission.ca/13-factorsaddressing-mental-health-in-the-workplace/

Cost: I don’t have to worry about whether I can afford therapy or medication. My benefits will cover a significant portion for me.

Stigma: My workplace understands the importance of prioritizing mental health and taking care of it.

Perhaps I can take a mental wellness day tomorrow.

Contributor

Think of the way society emphasizes looking after our physical health—there is an unspoken understanding that one must prioritize eating well, exercising regularly, and integrate overall physical wellness into one’s lifestyle.

So why can’t these principles also be applied to taking care of our mental health? Establishing a regular “check-up from the neck-up” with employees, incorporating mental wellness into your diversity, equity and inclusion strategies, and working proactively to break down stigma around mental illness are all actionable ways to amalgamate the mental wellness of your business’ people into your overarching business tactics.

John Cochrane President & Partner Jones DesLauriers | Group Benefits & Retirement T: 416.577.9655 E: johnc@jdimi.com

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Not If, But When: The State of Cyber Security in Canada

Navacord Benefits Newsletter

Not If, But When:

The State of Cyber Security in Canada Contributor: Navacord

In today’s hyper connected business climate, cyber attacks are no longer a question of if, but when. This is especially true in Canada, which remains one of the most wired countries in the world.

In fact, according to the most recent data from Statistics Canada, 89% of Canadian businesses use the internet, while nearly 100% utilize some form of information technology (IT) in their daily operations. It’s no surprise that cyber security was ranked the third most important issue facing the insurance industry today.

As technology develops, cyber threats will continue to evolve and become more advanced. When cyber attacks (such as data breaches and hacks) occur, they can result in devastating damage.

The costs associated with business disruptions, revenue loss, legal fees, and customer or employee notifications caused by a cyber attack can cripple even financially sound organizations. It is important to remember that no organization is immune to the impact of cyber crime. As a result, cyber liability insurance has become an essential component to any risk management program.

In addition to arming yourself with adequate coverage, it’s critical to be aware of the cyber threat landscape, both on a global and national scale.

Much of the cyber turmoil that plagued the world in 2021 has continued through 2022, with

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individuals remaining the top source of risk in an irrevocably online society. Since so much of our lives now take place online, the digitization of society means that our infrastructure, institutions and personal lives are more exposed than ever to malicious actors. Businesses—big and small— remain vulnerable, despite spending millions on security, and cybercriminals have plenty of opportunities to exploit weak technologies.

The biggest information security risk within a business is human error, and with so many employees working outside of their normal environments (at home, offsite, using Remote Desktop Applications, away from their regular teams or departments, etc.), they are notably distracted—and cyber criminals are taking advantage. Education surrounding the risks of cyber social engineering is key.

The first line of defence against cyber threats is a well-trained workforce. Ensure your employees understand and are on the look-out for:

Phishing/Vishing/Smishing: These attacks are attempts made through email (phishing), voice calls (vishing) or SMS (smishing) by a cyber criminal to obtain sensitive information. The fraudster sends phony emails or messages that appear to come from valid sources in an attempt to trick users into revealing personal or business financial information, or into installing malware or malicious macros.

WATC H FO R :

Spear Phishing: Similar to phishing, this is a targeted and customized attack on a specific company or employee—usually directed to an individual who would have specific access to confidential information or controls, potentially within Finance or IT.

Watering Holes: This occurs when the attacker studies a specific group of users from a company and infects websites that members of the group are commonly known to visit. By infecting one user’s computer, the cyber criminal can gain access to the network.

o Spoofs of email addresses o Compressed attachments o Impersonalized messages o Spelling or grammar errors o Scare tactics and overtly tight deadlines o Imitations of known brands

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Incidence & Impact of Breaches DID YOU KNOW? Organizations in Canada experience an average of 40 cyber attacks per year.

NOT JUST A BIG BUSINESS PROBLEM In 2021, small businesses were the leading target of spear-phishing attacks: • 43% - Small Businesses (1-250 employees) • 22% - Mid-size businesses (251-2,500 employees) • 35% - Large businesses (2,500+ employees)

ESTIMATED AVERAGE COST • Average cost of a data breach: $278 per stolen record • Average organizational cost: $619,000 per cyber security event • Small & medium-sized enterprises (SMEs): $46,000 per cyber security event 24

A TOP PRIORITY 37% of Canadian Organizations felt their cyber security strategy did not align with their overall objectives and mission.

TOP CONCERNS • Loss of critical business information • Loss of credibility/damage to company reputation • Loss of contracts and business opportunities • Costs: ◦ Professional help to remedy loss ◦ Additional software or infrastructure to prevent future problems • Competitors obtaining previously confidential data (e.g.: financial, strategic)

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The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, protecting your organization from cyber liability is just as important as some of the more traditional threats.

Cyber exposures are vast and include the content you put on your website and stored customer data. Awareness of the potential cyber liabilities your company faces is essential to managing risk through proper coverage, particularly cyber liability insurance.

Cyber liability insurance is specifically designed to address the risks that come with using

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modern technology—risks that other types of business liability coverage simply won’t cover.

The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure.

It is important to work with a broker who can identify your areas of risk so a policy can be tailored to fit your situation.

Contact your advisor to be connected with a cyber risk expert today.

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