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Cdn Publication Mail Registration 40018149June - July 2014
TheCowan Code
Gord Cowan2014–2015 IBAA President
ConventionPhoto GalleryPage 19
Go Paperless:E-Signatures
Black BeltTest Resultsin Claim
Publisher and Editor Annette HubickPrinting McCallum Printing GroupDesign and Layout Ron LeckeltAdvertising Michele Schuldhaus 780.448.2890 michele@linkpr.ca
The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members.
Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Association of Alberta’s magazine - The Alberta Broker (date).”Please send a copy to the publisher.
Published six times annually by:
9249-48 Street Edmonton, Alberta T6B 2R9T: 780.448.0936 • F: 780.465.6201E: albertabroker@linkpr.ca
The Alberta Broker is the official publication of the
President Gord CowanChief Executive Officer George Hodgson
3010 Calgary Trail, Edmonton, AB T6J 6V4T: 780.424.3320 •1.800.318.0197F: 780.424.7418 • www.ibaa.ca
June - July 2014 IN THIS ISSUE
The Alberta Broker June - July 2014 3
3 Message from the Editor
4 IBAA Alberta Hill Day
6 The Cowan Code Gord Cowan, IBAA President 2014–2015
12 IBC Insight Property Priority
14 Legal-Ease Packing a Punch— Black Belt Test Results in Claim
16 Serve To Be Great
19 2014 IBAA Convention Photo Gallery
24 Chinook Country Report
26 The Advocate The 7 Habits of Highly Effective Associations
28 Know E&O Does the Right Hand Know What the Left Hand Is Doing?
32 PYIB Perspective Hiring Insights
34 Viewpoint Marking Our Territory
36 Commercial Break Suffering from “Bylaw Stress”
38 Go Paperless & Improve Security with E-Signatures
40 Professional Development Social Marketing Tactics
PLUS IBAA Courses
• Improveyourleadershipskills“ServetoBeGreat”(page16).
WhilethereisalotofeditorialcontentIhopeyoufindinteresting,relevantanduseful,Ihavetoadmitwehaveasignificantgapinoureditorialcontent—thereisno“NorthernExposure”tobringyouuptospeedonalltheindustrypeopleandeventsinnorthernAlberta(although“Chinook’s”DarrellVerbonacwaskindenoughtoshareafewtidbitsinhiscolumnthisissue).There’sagoodreasonforthat:ourcolumnist,ChrisLewis,leftPeaceHillsInsurance,joiningthebrokersideatCJCampbellinEdmonton.Thismeanswehaveaholeinourrostertofillsoifyou,orsomeoneyouknow,areconnectedtothepeopleandactiveintheeventsintheprovince’snorthernindustrysceneandareinter-estedinuntoldfameandfortunethatcomeswithbeingthe“gossipgirl/guy,”pleasesendmeanemailalongwiththreesamplesofyourpreviouswork(kidding!).Seriously,pastcolumnistshavesaidtheyenjoyedbeingintheknowandthe“go-to-person.”Letmeknowifyou’dliketobethatperson.Emailalbertabroker@linkpr.ca.
• Avoidcostlyerrors—Howtopreventconfusionandpotentialclaimsthatmayotherwisearisefromacquisitionsanddispersedlocations(page28).• Increasesecurity—Albertabrokerssharethepositivebenefitsofgoingpaperlesswithe-signatures(page38).• Acquiremanagementinsight—LearndosanddontsofmarketingwithFacebookandTwitter(page40).• Understandhowyourassociationdeliversvaluetoyou—“The7HabitsofHighlyEffectiveAssociations”(page26).• Gettunedintoindustryscuttle-butt—“ChinookCountryReport”offersinfoonwhat’shappenedandwho’snew,movinginormovingon(page24).
Annette Hubick
Message from the EditorIfirstmetGordCowanseveralIBAAconventionsago.Ifoundhimtobefriendlyandunassuminglyconfident,whichconsideringhisaffinityfor“thecowboycode,”wasanaccurateimpression.OnMay5,2014,GordwaselectedtoserveasIBAApresidentforthe2014-15year,andifyou’dliketolearnmoreabouthimandhisviews,turntopage6for“TheCowanCode.”Speakingoftheconvention,besuretohavealookatthisyear’sphotogallery(page19).Myhopeisthatwhetheryou’relookingforspecificinformationorabroadrangeofcontent,you’llfindwhatyou’relookingforinthisissue.• Gaintechnicalexpertise—Recognizeandaddressyourclient’sriskfrombylawexclusions(page36).
4 The Alberta Broker June - July 2014
IBAA Hill DayV
ALBERTA
IBAAheldan“AlbertaHillDay”onMarch19,2014,attheAlbertaLegislaturegrounds.IBAAsecuredseveralmeetingswithMLAsfromdifferentpartsoftheprovince.ThemajorityoftheIBAAboardmembersattendedandwerejoinedbyadelegationfromtheProfessionalYoungInsuranceBrokersstandingcommittee.ThedaykickedoffwithabreakfastpresentationbytheHonourableDougHorner,ministeroffinance.IBAAdelegatesmetwithanumberofMLAsthroughoutthedayonthehillandattendedquestionperiod.IBAAendedthedaybyhostinganMLAreceptionintheevening.FormerAlbertapremierAlisonRedfordannouncedherresignationthatsameevening,andsomeIBAAdelegateswereatthepressconferencesheheldtomaketheannouncement.
The Alberta Broker June - July 2014 5
TheCowan
CodeGord Cowan
2014–2015 IBAA President
ByAnnetteHubick
Gene Autry’s Ten Commandments of the Cowboy1. A cowboy never takes unfair advantage.2. A cowboy never betrays a trust.3. A cowboy always tells the truth.4. A cowboy is kind to small children, to old folks and to animals.5. A cowboy is free from racial and religious prejudice.
6. A cowboy is helpful and when anyone’s in trouble he lends a hand. 7. A cowboy is a good worker. 8. A cowboy is clean about his person and in thought, word and deed. 9. A cowboy respects womanhood, his parents and the laws of his country.10. A cowboy is a patriot.
The Alberta Broker June - July 2014 7
Althoughhedidn’tgrowuponaranchandhasneverbeenonacattledrive,IBAA’snewly
electedpresident,GordCowan,wearshisloveofwesternheritageproudly—usuallyintheformofhissignatureblackhat.Andthoughhehasanaffinityforthe“wild”partofthewestasevidencedbyhisblack-hat-onlyfashionstance,itisthecowboycodeofhonourthatresonatesmostwithhim.Hecreditsthemanyrancherclientshe’sknownovertheyearsforinstillingthecodeinhimandtheetiquettethatgoesalongwithit.“It’saboutbeingarespectfulcountrygentleman,”heexplains.BornandraisedinSwiftCurrent,Saskatchewan,Cowanwasinitiallysetonfollowinghisfather’sfootstepsinmotorvehiclerepair,butafteroneyearattheSaskatchewanTechnicalInstituteherealizedthatmechanicswasjustgoingtobeahobby.ThisremainstruetothisdayasCowanperformsallhisownmechanicalworkonhistoys:racecars,boatsandmotorcycles.RecognizingCowan’sstrongworkethicandtalentforinteractingwithpeople,long-timefamilyfriendGordSmithofferedhimajobinrealestate.Afteracoupleofsuccessfulyears,SmithadvisedCowanthatamoveovertotheinsuranceoperationsofWWSmithwouldbeanevenbetterfitforhisconsiderablesalesskills.HewasrightandCowanbecamealicensedbrokerin1985.In1991,hemadethemovetoMedicineHatandtookapositionwithalocalbroker,CedarSquareInsurance.Believingthat“educationisavitalpartofbeingabroker,”CowansimultaneouslyearnedhisCanadianAccreditedInsuranceBroker(CAIB)andCanadianInsuranceProfessional(CIP)designationsintheearly90s.Helovedhiswork—interactingwithpeopleandsolvingproblems.“Iwouldsaytomycolleagues,‘Canyoubelievewegetpaidtodothis?’”herecalls.Workisalsowherehemethis“soulmate,”Shelley,whomhemarriedin2001.Thecouplehavelivedand
workedtogethereverydayfortwentyyears.AfterCedarSquarewassold,Cowandecidedthatitwastimetobreakoutonhisown.Trueto“thecowboycode”ofself-reliance,Cowandidnotpurchaseanexistingbookorbrokerage.“Ididittheold-fashionedway.Iopenedupwithapenandpaperandbuiltitoneclientatatime.”CowancreditstheopportunitytobuildhisbrokeragetoSGICanadafortakingaleapoffaithandawardinghimacontractwhenthecompany
movedintotheAlbertamarket.Healsocreditshismentor,GordSmith.WWSmithremainsapartnerinthebrokeragetothisday.Thatwas2007.Today,CowanAgenciesemployseightpeople,includingtwowhomCowanisgroomingtoeventuallytakeoverthebusiness,exemplifyinghisgoal,“...tomakeitpossibleforasmanyyoungbrokersaspossibletoexperiencethethrillandjoyofbeingabusinessowner.”
continued on page 8
8 The Alberta Broker June - July 2014
continued from page 7Cowandescribeshisbusinessphilosophyasquitesimple.“Weoperatewithaprofessionalstaffinaverylowstressenvironment.Weknowalowstressenvironmentmakesforahappy,productivestaff.Wealldoourjobsandtrytohaveasmuchfunaspossible.Wereallydon’tconcernourselveswithwhatotherofficesdo;weareonlyconcernedwithwhatworksforusandourclients.Wepromotethesocialcomponentandtakeprideinbeingveryclosewithourcommunity.”Activecommunityinvolvementisparamount,Cowanbelieves.“Asasmallbusinessowner,thatisjustwhatyoudo.”HeispassionateabouttheconservationgroupDucksUnlimitedandwasrecognizedasalifesponsorbyhislocalchapter.HealsositsontheboardoftheMedicineHatFoodBankandShelleyisaverystrongsupporterofmanyanimalrescueagencies.Whennotworkingonhisbusinessorinthecommunity,Cowankeepsbusywithhismanyotherinterests.“Igolf,buildwoodencanoesandkayaks,restoreoldwoodenboats,hangoutatthecottage,amgettingreadytolearntoteamrope…justthenormalkindofstuff,”hesays.Healsohasownedanddrivenseveralracecars,specificallyrear-enginedragsters.“Zeroto60(mph)inundertwoseconds—there’snofeelinglikeit.”Atthesametimeashewasbuildinghisbusiness,Cowanwaschargedwith
thetaskofrejuvenatingtheIBAAMedicineHatlocalcouncil.UpontherecommendationofIBAApastpresident(andpreviousownerofCedarSquareInsurance)LoisYanke,Cowanagreedtotakeonthechallengeandsoonmeetingattendancesoaredfromalmostnothingto60members.Cowandoesn’tthinkhedidanythingspecial;hejust“didsomething.”Hetookaction—makingphonecalls,payingvisitstohisfellowbrokers,buildingconnectionsoneattime,actingasintermediarywhenneeded.Itistheseconsensus-buildingskills,hisworkethicandthe“giftofwisdom”thatcomeswithbeinganexperiencedbrokerthatCowanhopestobringtohisroleasIBAApresident(hishumilityobviousbyhisdiscomfortwhenansweringthe“Whatstrengthsdoyoubring…?”question).Cowanencouragesbrokerstothinkofeachotherascolleaguesinsteadofcompetitors.“Ourrealcompetitionisthebanksandonlinedirectwriters—brokersmuststoptradingpoliciesamongstourselvesandfocusoureffortsontakingmarketsharefromthem.”Hebelievesthatthekeytoprotectingandgrowingthebrokerchannel’smarketshareistoengagetheProfessionalYoungInsuranceBrokersandworkwithyoungbrokerswhohaveagenerationaladvantagewithrespecttotechnology.“Theyoungbrokersareclearlythefutureandmusttaketheleadinmarketingstrategiesthattargetbanksandonlinedirects.I
wouldliketoplayasmallpartinthattransition.”Cowanhasprofessedhiswarinessofsomeoftheconsolidationwearecurrentlyseeinginourindustry,andheinsistsitisnotrootedinadesiretoprotecttheoldwaysofthepastbut,rather,toensurethefutureoftheindustry.Hecontendsthatinordertoattractthebestandbrightestyoungmindstotheindustry(inAlberta’sultra-competitivelabourmarket),theown-your-own-business-someday”carrotisparamountandmoremustbedonetofacilitatesalesfromcurrentbrokerageownerstothenextgenerationofentrepreneurs.HesupportsIBAC’sandIBAA’sinvestigationintowaystomakethebroker-to-brokersalesoptionmoreattractive.“ItisalsoimportantformetoperpetuatetheworkandinitiativesstartedbymypredecessorsScottTreasureandGordEnders,”saysCowanofthefocusofhistermasIBAApresident,addingthathe’slearnedalotfromthem.“Gord—he’sabusinessmanthroughandthrough.Heunderstandshowbusinessworksandbringsalotofstructuretothetable.Scotthasauniqueabilitytoconnectwithpeopleandblendthatwithhissuperiororganizationalskills.”ServingontheboardandexecutiveforthepastsevenyearshasgivenCowanakeeninsightofhowtheassociation’sveryexistencematterstobrokers.And,whilehebelievesmost
continued on page 10
10 The Alberta Broker June - July 2014
principalssharethisunderstanding,“Itneedstoextendbeyondtheowner’sofficetothefrontlinebrokers.Grass-rootsengagementwillbethekeyto
Gord Cowan Plays 20 Questions
1. If we’re buying, what are you having for dinner? Alberta Beef. 2. What’s your “guilty pleasure” TV Show? Holmes on Homes, reruns of The Beachcombers. 3. What’s your favourite snack food or candy? Chocolate. 4. If you could build a house anywhere, where would it be? Somewhere in the Queen Charlotte Islands or on the east coast of Newfoundland. 5. At which single store would you choose to max out your credit card? Princess Auto. 6. If you could meet anyone, alive or not, who would it be and WHY? Sir John A. MacDonald—I am a political junkie. 7. Where would you want to retire to? I may never retire but, if I do, I will retire to somewhere close to nature. 8. What is the coolest experience you’ve ever had? Going from zero to 150 mph in nine seconds in my race car. 9. If you didn’t do what you do for a living, what would you be? A politician.10. Dogs or cats? Dogs.11. If you could go anywhere in the world on vacation, where would you go? France, Juno Beach and Vimy Ridge— there are some people there I need to thank.12. If you could see one concert, who would it be? Celine Dion.13. Tim’s or Starbucks? Tim’s.14. What are your three favourite movies of all time? Top Gun, Open Range, American Graffiti.15. What’s your favourite holiday and why? Family Day—it’s for everyone and it hasn’t morphed into something commercial.16. What is your pet peeve? Traffic lights that aren’t synchronized.17. What’s your culinary specialty? BBQ.18. What’s your dream car? 1970 Boss 302 Mustang.19. What’s your favourite ice cream flavour? Chocolate.20. What’s tops on your bucket list (that you have yet to do)? Becoming a philanthropist.
successofIBAAinitiatives.Asanexecutive,wemustbeveryapproach-ableandaccessibletoallbrokers.”“TheimportanceoftheIBAAcannotbeunderstated.Iwouldcertainlyencourageallbrokerstobecomeinvolved.Thereisnodownsidetobeinganactivemember.Thepeopleyoumeet,thelessonsyoulearn,thecontactsyoumake,faroutweighthetimespentbeingavolunteer.”Whetherit’sthebattleformarketshareornavigatingtheevolutionoftheinsuranceproductitself(duetoescalatingclaimscausingmarketviabilitychallengestoinsurerpartners),Cowanbelievesthat,together,brokersareuptothetask.“AllthesuccessfulbrokersIhaveevermethavetwoimportantthingsincommon:aheightenedsenseofcompassionandincredibleproblem-solvingability.It’swhythebanksanddirectwriterscanneverdowhatwedo.”
continued from page 8
IBAA president Gord Cowan satisfies his need for speed behind the wheel of his rear engine dragster race car.
12 The Alberta Broker June - July 2014
Property insurance ischanging—and consumers need to know why.
BrokersinAlbertaareonthefrontlinesofthesechangestakingplaceinpersonalandcommercialpropertyinsurance.Itisnosecretthatsomedeductiblesandpremiumshaveincreased,limitshavebeenraisedandsomecoveragetermsandconditionshavebeenamended.Thereasonbehindthesechangesisalsonosurprise—inoneword:weather.InsurersarestillfeelingtheeffectsofyearsofsevereweathereventsinAlberta,culminatinginlastyear’smassiveflooding.Andtheyaretakingconcretestepstomitigatethesubstantialclaimshit,particularlywhenitcomestosewerbackupcoverage.Today’sbigquestionfortheinsuranceindustryis:howdoweinformconsumersthatpropertyinsuranceischanging?Andwhatcanbedoneaboutit?Here,brokerscanplayacriticalroleinensuringthattheirclientsunderstandthesituationandtaketherightmeasurestoprotectthemselvesandtheirproperty.Asweallknow,consumersusuallydon’treadtheirpolicies,nordomosthaveadetailedknowledgeoftheircoverage.Theymayhavecopiesoftheircontractsandgetrenewalnotices,butthesearetypicallyputinadrawer.Itisonlywhenamajordisasterstrikesthatmostcustomersactuallychecktheirpoliciesandreadthefineprint.Thismustchange.Wecan,andshould,bewelloutinfrontofthe
IBC Insight Bill Adams
publiconhowtheirpoliciesarebeingamendedandthespecificimplicationstotheirpersonalcircumstances.Forbrokers,discussionswiththeircustomerscouldtakeplaceatorbeforerenewalsaboutdeductiblesforsewerbackup,premiumsandcoveragewordings.
Akeypartofanycommunicationcaninvolveinformationonlossmitigationandpreventionattheindividualhomeownerorbusinesslevel.Therearemanypracticalmeasuresthatindividualresidentsorbusinessescantaketoreducetheimpactofwaterdamage.Forexample,homeownersandbusinessesshouldconsiderinstallingbackwatervalves,disconnectingroofleaders/downspoutsandweepingtilesfrommunicipalsewersystemsandensuringlotgradingthatdirectsstormwatersafelyawayfrombuildings.Brokerscanalsospendtimediscussingspecificwaterdamageexposureswiththeircustomers,particularlyasmorehomeownersupgradebasementliving
space.Aregularchecklistcouldincludeareviewofthevalueoffinishedbase-ments,evaluationoftheadequacyofsewerbackupcoverageforcontents,awarenessoflossreductionsteps(backwatervalve,sumppump,lotgrading,downspoutsawayfromhouse)andeducationaboutmunicipalprogramstosubsidizeriskmitigationmeasures.Severalcities,suchasEdmonton,haveprogramsthatwillprovidefinancialaidforspecificmeasures,includinginstallationofbackwatervalvesforhomeownerswhohaveexperiencedbasementfloodingorwhosedwellingswerebuiltbefore1989.Individualstepsareimportant,butthereisalsothebiggerpictureofinfrastructureandpublicinvestmenttoreducefloodrisk.Theinsuranceindustryhasbeenactiveinthisarea.ThroughtheInstituteforCatastrophicLossReduction(ICLR),wehavehelpedcraftseveralbestpracticerecommendationsforwhatAlbertacandotoreducetheimpactofurbanandriverineflooding.TheICLRwillalsobeexaminingbuildingcodesandmakingconcreteproposalsonhowchangescanfostermoreresilientcommunities.Wewanttohelpgovernmentsfindthebestbangfortheirmitigationbuck,suchasmunicipalstormandsewermaininvestments,zoningrestrictionsonbuildinginfloodplainsandbetterfloodriskmapping.Whichrecommendationsforfloodcontrol/reductionarethemostpressingandhowcangovernmentsatalllevels
PROPERTYPRIORITY
“As we all know, consumers don’t
read their policies, nor do most have a detailed knowledge of their coverage.”
The Alberta Broker June - July 2014 13
balanceshort-termmeasureswithlong-terminvestments?TheAlbertagovernmentislisteninganddedicatingfundstofloodmitigation.InMarch,itearmarked$1.5billionforfloodreductionandrecoveryprogramsoverthenextthreeyears.Grantsforerosioncontrol,floodhazardmapping,mitigationrelatedtowaterandwaste-waterinfrastructure,andprotectingareassusceptibletofutureflooddamagewillcollectivelycost$700million,whileafurther$859millionwillgotowardfloodrecoverymeasures.Wesupporttheseinitiativesthatbuildresilienceandhelpthoseacrosstheprovinceaffectedbyrecentnaturaldisasters.Wewillcontinuetoworkwiththegovernmentsatalllevelstobuildsafercommunities.Wehavetokeepinmindthat2013wasasevereyearforpropertylosses—butitwasalsopartofacontinuingtrend.Between1983and2008,Alberta
averagedaround$100millionayearincatastrophiclosses.Butinthefouryearsfrom2009through2012,whenCanadawashitbymorethanabilliondollarsayearininsuredlosses,Albertasufferedthemost.Itaveragedawhopping$673millionayearininsuredlossesfromnaturalcatastrophes.InCanada,waterdamagefromsewersbackingupintobasementsandotherlossesduetoextremerainfallinurbanareasresultedinmorethan$20billioninurbanflooddamageoverthetenyearperiodbetween2003and2012,including$3-$5billioninAlberta.Inmostyears,urbanfloodlosseshavebeenmorethantentimesgreaterthanriverineflooddamage,accordingtotheICLR.ClaimsfromsevereweatheraretheprimaryreasonbehindchangesinpropertyinsuranceforAlbertansandindeedformanyCanadians.Toaddresstheselosses,weneedcoordinatedrisk
managementandlossreductionstrategies.Insurancealonecannothandletheenormityofthechallengeswefacewhenitcomestosevereweather,adaptationandbuildingmoreresilientcommunities.Noonegroupisresponsibleforfloodornaturaldisasters.Andthereisnomagicsolution.Thereareseveralstakeholderswhoneedtoworktogether.Allhavetheirroles—brokers,homeowners,businesses,allthreelevelsofgovernmentandtheinsuranceindustryasawhole.Thetimeforourcollectivecommitment—andforcommunication—isnow.
BILL ADAMSVice President,
Western Canada,Insurance Bureau
of Canada
14 The Alberta Broker June - July 2014
Legal-Ease Shelley L. Miller and Terry J. Williams
KevinBirss(“Birss”)wasastudentatTienLungTaekwon-DoClub(“TienLung”)inEdmonton.Aspartoftheblackbelttesting,BirsswasrequiredtoparticipateinasparringmatchwithNicholasPagnotta(“Pagnotta”).Unfortunately,BirsssustainedpersonalinjuriesduringthissparringmatchandlatersuedbothTienLungandPagnotta.BirssallegedthatPagnottawasnegli-gentinrepeatedlystrikinghimwithoutpullinghispunchesorkicksandfailingtostopwhenBirsswasunabletodefendhimselfproperly.BirssallegedthatTienLungwasnegligentforfail-ingtorequireparticipantsintheblackbelttestingtowearprotectiveheadgear,failingtoproperlysupervisethesparringmatch,failingtodiscontinue
thesparringmatchwhenitwasapparentthatBirsshadreceivedseriousanddamagingblowstotheheadandper-mittingthematchtocontinuewhenPagnottahadbecomeenragedwithBirsssuchthatitwasunlikelyhewouldadequatelypullhispunchesorkicks.TienLunghada“CanadianSportsGeneralLiabilityInsurancePolicy”(the“policy”)issuedbyLloyd’sUnderwrit-ers(carryingonbusinessunderthenameandstyleofSuttonSportscover)(“Lloyd’s”).Lloyd’sdeniedthatithadadutyunderthepolicytodefendTienLungandPagnottaagainstthelaw-suitcommencedbyBirss.TienLungandPagnottathereforeappliedtotheCourtforadeclarationthatLloyd’swasobligedtoprovidethemwithadefence.TheexclusionsinthePolicyexcludedcoverageforthefollowing:(i) assault, battery or any intentional or deliberate violence committed or alleged to have been committed by any Insured. “N” Any Bodily Injury caused orcontributed by any Insured to anyparticipant and/or any Bodily Injury caused or contributed by any participant in a match or a practice in regards to Category 4 Sports unless specified in the Declarations. (emphasis added)Thedeclarationsinthepolicycom-mencedwiththestatementthat“Youwillonlybeentitledtoinsurancecoverunderthesectionorsectionswhichyouhaveselectedandforwhichyouhavepaidtherequiredpremium.”Thefirstboxinthedeclarationsidentifiedtheinsuredandspecifiedthe“sport/activities”as“martialarts.”Thesecondboxhadthesub-title“GENERALLIABILITY”andindicatedtheamountofgeneralliabilitycoverageprovided“fortheconductofthesport/activitiesdetailedabove.”“CATEGORY4SPORTS”weredefinedinthe“definitions”sectionofthepolicytomean“rugbyunion,rugbyleague,soccer,Gaelicfootball,CanadianorAmericanfootball,icehockey,kickboxing,boxing,martialartsandallothercontactsports.”
Lloyd’sarguedthatexclusion“N”excludedfromcoverageallclaimsarisingfrominjuriessustainedinasparringmatchbetweenaninsuredandaclaimant,regardlessofwhethertheywerecausedintentionallyornegligently.Lloyd’sarguedthatTaekwondoinvolvesactivitiesotherthancontactsparringandthatthepracticeofTaekwondoconsistslargelyofnon-sparringelements,includingpatterns,boardbreaking,demonstrationsandnon-contactsparring.Lloyd’sarguedthatthepolicyprovidedcoverageforthebroadactivitiesofmartialartsandthebusinessofoperatingamartialartsclub,andthatthecategory4sportsparticipantexclusioninexclusion“N”excludedliabilitycoverageforinjuriessustainedinthemorenarrowactivityofsparringmatches.TheCourtbeganitsanalysisbyre-viewingthelegalprinciplesgoverninganinsurer’sdutytodefend.Adutytodefendariseswheretheunderlyingclaimagainsttheinsuredallegesactsoromissionsfallingwithinthepolicy.Theclaimant’spleadingneednotbeprovenandmayevenbefalse.Themerepossibilitythataclaimwithinthepolicymaysucceedisenoughtoimposeadutytodefendupontheinsurer.Whereitisunclearwhetherthepolicyprovidescoverage,theinsuredisentitledtoadeclarationrequiringtheinsurertodefend.Further,oncetheinsuredestablishesthattheallegationsmadebytheclaimant,ifproved,bringtheclaimwithinthepolicycoverage,theonusshiftstotheinsurertoshowthattheclaimfallsoutsidethecoveragebecauseofanapplicableexclusionclause.TheCourtreasonedthatexclusion“N”excludedfromcoverage“anybodilyinjurycausedorcontributedtoby…anyparticipantinamatchorapracticeinregardstocategory4sportsunlessspecifiedinthedeclarations.”The
Packing a Punch Black Belt TestResults in Claim
The Alberta Broker June - July 2014 15
definitionof“category4sports”includedmartialarts.However,thefirstboxinthe“declarations”indicatedthatTienLungandPagnottawerethenamed“insured”forthepurposeofthe“sports/activities-martialarts.”IntheCourt’sopinion,thestructureofthepolicywasawkwardandambiguoussinceitexcludedcoveragefor“martialarts”underexclusion“N”butspecifiedcoveragefor“martialarts”inthe“dec-larations.”TheCourtheldthatTienLungandPagnottawereentitledtothebenefitofthisambiguity,basedonthecontra proferentemrulewhichrequiresthatambiguouswordinginaninsurancepolicyorothercontractbeconstruedagainstthepersonwhoselectedtheambiguouswording.TheCourtalsoobservedthattheWorldTaekwondoFederationdescribedtheactivitiesofTaekwondoasincluding:(i)stepsparring,inwhichthereisnocontact,thepurposeofwhichistodevelopcontrolbystoppingjustshort
ofthetarget;and,(ii)freesparring,whichinvolvescontact,eitherwithorwithoutprotectivegear.TheCourtnotedthatthepolicywascompletelysilentregardingthedefinitionoftheterm“martialarts”andheldthatLloyd’sshouldbeaccountableforanyresultingambiguityastothemeaningofthatterminthepolicy.TheCourtconcludedthatthedeclarationsoverrodeexclusion“N”andthatmatchesandpracticeswerereasonablycontemplatedtobecoveredunderthepolicy.Lloyd’swasthereforeobligedtodefendTienLungandPagnottaagainsttheclaimsintheBirsslawsuit.
shelley.miller@dentons.com
SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMSare lawyers with
Dentons Canada LLP and practice in theprofessional liability insurance area.
terry.williams@dentons.com
“Lloyd’s argued that exclusion ‘N’
excluded fromcoverage all claims
arising frominjuries sustained
in a sparring matchbetween aninsured anda claimant.”
16 The Alberta Broker June - July 2014
By simply shifting focus away from short-term goals and financial gain toward more effectively serving the people on their teams, leaders cancreate conditions for superior long-term results while simultaneously making the world a better place. Here, author Matt Tenney shares 10 lessons to help leaders achieve higher levels of lasting success while also living a more fulfilling life.
Whenthefocusisonservingteammembers,leaderscancreateateamculturethatpeoplewanttobeapartof,thatproducessuperiorresultsandthathasapositiveimpactonsocietyasawhole.Whenthishappens,leaderswintoo,becausetheygetpromotedfasterandcreatetheconditionsforsustainable,long-termsuccess.Perhapsmoreimportant,theyactuallyenjoygoingtoworkeachday,andthepeopleontheirteamsdo,too.Myownpastprovidesmewithauniqueperspectiveonthepowerofservingandcaringforteammembers.Myattempttoembezzlegovernmentfundsledtofiveandahalfyearsinmilitaryprison.Duringmysentence,myperspectiveshiftedfromselfishtoservant,promptingmetoliveandtrainasamonkforthreeyearsand,finally,
tobecomeasocialentrepreneur.Ihaveco-foundedandledtwonon-profits,aswellasaspeakingandtrainingcompanydevotedtohelpingleadersachievegreaterlong-termsuccesswhilealsomakingourworldabetterplace.Servantleadershipdoesn’tmeanthatweassumesomemenial,meekpersona;itsimplymeansthatourmotivationforleadingpeopleistobeofservicetoothers.Ibelievethatsomewhereinsideeachofusistheaspirationtodevoteourselvestoservingothers.Thatsaid,itcanbechallengingtoeffectivelyservethepeopleonourteams,evenifwewantto.Whenwe’reunderstress—likethepressuretohitagoalor“makethenumbers”—wetendtofocusmoreontheshort-termandcanoftensacrificetherelationshipsthatareafoundationoflong-termsuccess.Withtraining,youeffectivelyserveteammembersevenwhentheconditionsarechallenging.Hereare10tacticstohelpleadersachievehigherlevelsofsuccessbyconsistentlyservingandinspiringgreatnessinothers.
Focus on developing your influence as a leader.Thequalitiesthatmakeagreatleaderarequitedifferentfromthosethatmakeagoodemployee.Anemployee’sworthisjudgedbasedonhowwellshecarriesoutthedifferenttasksinherjobdescription.Butaleader’sworthisjudgedbasedonhowwellsheisabletoinfluencethebehavioursofthoseonherteam.(That’swhyoneofthemostcommonmistakesorganizationsmakeispromotingpeopletoleadershippositionsbasedontheirjobperformance.Jobperformanceofferslittletonoinsightintowhetherornotapersonwillsucceedatleadingateamtosuccess!)Themosteffectivewaytobuildinfluencewithothersistoconsistently
demonstratethatyoutrulycareaboutthemandhavetheirbestinterestsinmind.HerbKelleher,founderandformerchairmanofSouthwestAirlines,isagreatexampleofhowgreatleadersdevelopinfluence.HeconsistentlyshowedemployeeshowmuchhecaredbydoingthingslikecominginonThanksgivingDaytohelpbaggagehandlersloadsuitcasesontoplanes.Whenhewrotealetteraskingemployeestofindawaytosave$5adayforthesecondhalfofayear,hesignedit“Love,Herb.”Employeesknewthathemeantit.And,asaresultoftheinfluenceHerbhadbuilt,employeessavedmuchmorethan$5adayonaverage,helpingSouthwestkeeptheirthen30-yearstreakofprofitabilitygoing.
Create a culture of servant leaders. Canyouimaginebeingabletoattractthemosttalentedpeopleinyourindustry,ensurethatthey’refullyengagedwhilethey’reatworkandfeelconfidentthatthey’llstayonyourteamforthelonghaul?Whatwouldthatdoforyourorganization?Clearly,agreatworkplaceculture—whichisresponsibleforallthreeachievements—isoneofthemostimportantcompetitiveadvantagesyoucanpossess.Thekeytocreatingahighlyeffectiveworkplaceculturethatpeoplewanttobeapartofistomakesurethatteammembersfeelcaredforandthatthey’reapartofsomethingmeaningfulandinspiring.Thisisaccomplishedeasilywhenyoubuildacultureofservantleadership.Ane-commercecompanycalledNextJumpisagreatexampleofthepowerofbuildinganorganizationfullofpeoplewhoaredevotedtoservingothersandservingthegreatergood.TheleadersatNextJumpconsistentlyshowhowmuchtheycare.Thecompany
Serve To Be GreatLeadership Lessons from a Prison,a Monastery and a Boardroom
ByMattTenney
The Alberta Broker June - July 2014 17
actuallydoestheemployees’laundryforthem.Buttheyalsofindwaystohelpemployeesgrowtheirabilitytoserveeachotherandthegreatergood.ThemostcovetedawardatNextJumpisa$30,000packagethatgoestotheemployeewhoisvotedbyhisorherpeerstobethemosthelpful,selflesspersoninthecompany.AcultureliketheoneatNextJumpproducesextraordinaryresults.In2012,thecompanyacceptedonly35newhiresoutofalmost18,000applicants.That’sahirerateof0.2percent.And,althoughturnoverinthetechspaceaveragesaround22percent,atNextJump,it’slessthan1percent.Thisisdespitethefactthathighlytalentedemployeesthereoftenreceivephonecallsfromothercompaniesofferingtwotothreetimesthesalarytheycurrentlyreceive.
Increase innovation by beingmore compassionate.Mostleadersareawareoftheimportanceofinnova-tion,butmanymakethemistakeofassumingthatcreativityandinnovationaresynonymous.Creativity,whichistheabilitytogeneratenovelideas,isnotnecessaryforinnovation.Innovationisafunctionofstickingwithandexecutingideas—whetherneworold—thatdon’tconformtothestatusquo,whichresultsinturninganideaintosomethingtangible,useful,anddifferentiated.Soifyouwantinnovation,youneedtocreateanenvironmentwherepeoplefeelsafetotakerisksandstickwithideasthatdeviatefromthenorm.Weneedtolistennon-criticallytoideas.Weneedtoencourageandbeforgivingofmistakes.Inessence,weneedtoconsistentlyshowpeoplethatwetrulycareaboutthem.SASCEOJimGoodnightisagreatcasestudyforhowcompassionfuelsinnovation.HeshowedincrediblecompassionforhispeopleattheonsetoftheGreatRecessionbyassuringthemthatnoonewouldlosehisorherjobandsimplyaskingthatallemployeesbevigilantwithspending.Asaresultofhiscare,theyfeltsafe.Theycontinuedtodisruptthemarketwithinnovations
throughtherecession,settingrecordsforrevenues,whilemostcompaniesinthesoftwareindustrywerestrugglingtostayalive.
Focus on your most important customer.Organizationsthatdeliverworld-classcustomerservicehaveafewthingsincommon.First,theyspendverylittlemoneyacquiringnewcustomersbecausethey’reabletokeeptheonestheyhaveandbecausethosecustomersareconstantlyreferringothers.Second,theydon’thavetocompeteonpricebecausetheircustomersarewillingtopaymorefortheexcellentservicetheyreceive.Andperhapsmostimportant,theirexternalcustomersaren’ttheirnumberonepriority.Themembersoftheirorganizationare.Thebestwaytoensurethatyourcustomersareconsistentlywellcaredforistotreatyourteammemberswiththesamecareyouexpectthemtodelivertothecustomers.Bylisteningwellandtreatingteammemberswithkindnessandrespect,leadersdevelopteammemberswhodothesameforcustomers.Whenleadersfocusondevelopinghappy,loyalteammembers,happy,loyalcustomersareanaturalsideeffect.Averysimplewaytoputthisprincipleintopracticeistofrequentlycommunicate
withteammembersaboutwhatyouastheleadercandotohelpthembehappybothatworkandathome.Makeanefforttoshowthatallideasareheardandconsidered,andtrytoexecuteonasmanyfeasibleideasaspossible.
Get a better ROI on marketingby serving the community.Pushmarketing—broadcastingunsolicitedmessagestolargenumbersofpeople—issimplynolongeraneffectivewaytoreachpotentialcustomers.Inaworldwherepeopleconsumemoreinformationinafewhoursthanourancestorsdidinanentirelifetime,ourchancesofbeingheardamidthenoiseareslim.Tostandoutfromthechaos,Irecommendthatyoumakeservingthecommunityapriority.Whenorganizationsdevelopleadersandteammemberswhoreallycareaboutothers,communityserviceeffortscanbereallypowerfulbecausepeopletendtotalkaboutandrememberthem.Inadditiontobeingrewarding(it’ssimplytherightthingtodo!),servingthecommunityisaverypowerfulwaytobuildtrustandrapportwithpotentialcustomers.Forinstance,didyouknowthattheapparelcompanyLifeisgoodhasyettospendadimeontraditionaladvertising?”
continued on page 18
18 The Alberta Broker June - July 2014
heasks.“Yearsago,theyhostedafestivaltoraisemoneyforyouthgoingthroughchallengingtimes.Afterward,thecompanyrealizedthatthemediaandword-of-mouthexposurewasmorevaluablethantheadcampaignstheyhadbeenconsidering.Uptothatpoint,theirgrowthcurvehadbeenprettyflat.Sincethen,it’sbeenalmostvertical.
Stop fixating on providing perks and pay more attention to the little things.InServe to Be Great,Iofferseveralexamplesofcompaniesthatgotogreatlengthstoshowemployeeshowmuchtheycarebyofferingincredibleperks.Butperksalonedon’tresultinateamculturethatpeoplewanttobeapartof.Theperksaren’tnecessary.Perksareeasilycopiedandcanbeenseenasafaçade.What’smostimportantistoconsistentlyshowteammembersthatyoutrulycareaboutthem—andbelieveitornot,thatdoesn’ttakealotofmoneyoreffort.Littlethingslikemakingtimeforpersonalinteraction,askingmorequestions,listeningmore,andshowingsincereappreciationforaperson’seffortscangoalongway.Honestly,weleadersneedtocarveouttimeforpersonalinteraction—actuallyputitonourcalendars.Ifwedon’t,wemightfindthatwe’vegonedays,orevenweeks,withoutconnectingpersonallywithteammembers.
Make serving others a habit.Hardwiringservantleadershipintoyourbehaviourisallaboutbeingmindfulofseeminglysmallthoughts,decisionsandactions.Forexample,eachtimeyou’reabouttointeractwithsomeone,askyourself,How can I help this person?or,How can I contribute to this person’s happiness?Youdon’tneedtohaveanimmediateanswer.Justadoptingthisattitudechangesthedynamicofaninteractioninpositiveways.Starteachdaybytakingatleast5or10minutestocontemplatethequestion,What can I do to better serve the people on my team today?
Thepracticethatmadethebiggestdifferenceinmylifeisusingthequestion,How will this help me to serve others?asafilterfordecisions.BeforeIdosomethingorconsumesomething,Ilookatitfromthisperspective.Thisquestionhelpsmetowastelesstimepursuingthingsthatdon’treallymatterandhasgraduallymadeservingothersthemotivationforeverythingthatIdo.
Gain power by giving it away.Acommonmisperceptionamongleadersisthattheyneedtobetheonescomingupwithallofthegreatideasorthepeoplemakinggreatthingshappen.Thebestleaders,though,aretheoneswhoareabletoharnessthetalentandintelligenceoftheentireteam.Youcandothisbypushingpowerdowntothelowestlevelspossible.Thisisagreatwaytoservethepeopleonyourteam.Empoweredpeoplebecomemuchmoreengagedintheirwork.Youcanempoweryourteammembersbyinvolvingthemindecisionmakingtothegreatestextentpossible,ensuringthattheytrulyfeelheard.Youcanalsogiveteammembersfinaldecisionauthorityontaskswithintheirareaofexpertise.Justmakesurethatyou’vepreviouslycommunicatedtheorgani-zation’scorevaluessothattheycanguidedecisionmaking.Letyourpeopleknowthataslongasadecisiondoesn’tconflictwithacorevalue,youtrustthatthey’lldotherightthing.
Inspire your team to greatness.Oneofthegreatestgiftswecanofferteammembersisthegiftofinspiration.Animportantroleofaleaderistoclarifynotonlywhattheteamdoesforthecustomerbutalsowhattheteamdoestomaketheworldabetterplace.Theleadermustalsoensurethateachteammembercanseeclearlyhowhisorherworkcontributestothatlargervi-sionandfindwaystofrequentlyremindteammembersoftheirpurpose.Youcanalsoinspiregreatnessinothersbyworkingtodevelopyourcharactersothatyouconsistentlydotherightthing,evenwhenthepersonalcostsareveryhigh.Atsomelevel,weallaspire
tobeapersonwhoputsothersfirstandalwaysdoestherightthing.Whenweseesomeoneelselivinginthatway,ittouchessomethingdeepinsideus.Weareremindedofwhowecanbe.Weareinspired. Measure the things that really matter. Mostofusdoafairlygoodjobofmeasuringourprogresstowardquantitativegoals.Inourpersonallives,forinstance,wemeasureprogresstowardcheckingitemsoffofourto-dolists,losingweightormakingmoney.Likewise,largeorganizationsmeasurethingslikesalesnumbers,expensesandquarterlyprofits.Whatweneedtodoabetterjobofmeasuringiswhoweareandhowwellwetreateachother.Whenwemeasurethesethings,wemakeamuchbetterefforttoimproveinthem.Remember,it’swhoweareandhowwellwetreateachotherthatdrivelong-termsuccess.Isuggestthatyouseekfeedbackonhowwellyouasaleaderlivethevaluesoftheorganizationandhowwellyoutreatthemembersofyourteam.Youshouldalsomeasurethosethingsinyourteammembers.Bydoingso,you’llmakeitclearthatthey’reimportantandthatpeoplemustdeveloptheseareastobeconsideredforaleadershipposition.Beingsuccessfulasaleaderandlivingameaningful,enjoyablelifearenotmutuallyexclusive.Infact,thetwoactuallyfueleachother.Theverythingsthatmakelifetrulyricharethesamethingsthatcreateandsustainlong-termsuccessinbothbusinessandinlife.Thebestnewsisthatit’sallhighlytrainable.Anyoneofuscanbecomeanextraordinary,highlyeffectiveleaderwhoenjoysgoingtoworkeachdaybecauseweknowthatwe’remakingourworldabetterplace.
About the Author Matt Tenney is the author of Serve to Be Great: Leadership Lessons from a Prison, a Monastery, and a Boardroom. He is also an international keynote speaker, a trainer, and a consultant with the prestigious Perth Leadership Institute, whose clients include numerous Fortune 500 companies.For more information, visit matttenney.com.
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2014 IBAA Convention
PHOTO GALLERY – SPEAKERS
2014 IBAA Convention
PHOTO GALLERY – SPEAKERS
KEYNOTE:Arlene Dickinson
Doris Daley Colin Simpson Richard King
Paul KovacsSean Mulcair
The Alberta Broker June - July 2014 19
2014 IBAA Convention
PHOTO GALLERY – HOSPITALITY NIGHT
2014 IBAA Convention
20 The Alberta Broker June - July 2014
2014 IBAA Convention
PHOTO GALLERY – TRADE SHOWThe Alberta Broker June - July 2014 21
2014 IBAA Convention
PHOTO GALLERY – PRESIDENT’S GALA
2014 IBAA Convention
22 The Alberta Broker June - July 2014
2014 IBAA Convention
The Alberta Broker June - July 2014 23
Thank you to the convention sponsors,exhibitors, delegates and organizers of
the 2014 IBAA Convention!
IBAA Staff
2014–2015 IBAA Executive
PHOTO GALLERY – PEACE HILLS PARTY
PHOTO GALLERY – THANK YOU!
24 The Alberta Broker June - July 2014
Who? What? Where? Darrell Verbonac
CONVENTION REPORT TheInsuranceBrokersAssociationofAlbertaannualconventionwasheldattheJasperParkLodgefromMay4–7withthetheme“PrairiePower:BlazingNewTrails.”Despitealateseasonsnowstormthathitthecentralandsouthernpartsoftheprovince,causingtravelissuesforafewpeople,Jasperitselfwassnowfreeandundermostlyblueskies,andtheconventionwasverywellattended.Thegolftournamentontheopeningdayproceededwithoutanyissues,althoughtemperatureswerearound4degrees,andthosegolfingonthesubsequentdaysdidfaceearlymorningfrostdelays.AmongstthefeaturedspeakerswereArleneDickinsonofCBC’sDragon’s Denfame,PaulKovacsoftheInstituteforCatastrophicLossReductionandtheHonourableDougHorner,presidentoftheTreasuryBoardandministeroffinance.Othersessionsfeaturedwereonefficiencyandtelematics.Thegolftournament,organizedbyBryceDzenickofCrawford&CompanyinEdmonton,raised$1100forWomeninInsuranceCancerCrusade(WICC).GordCowanofCowanAgenciesinMedicineHattookoverasassociationpresidentand,truetothethemeofPrairiePower,worehisblackStetsonfortheentireconference.ThreebrokersranforthepositionofvicepresidentontheIBAAexecutivewiththememberselectingJuliaMarshallofGoldKeyInsuranceinStrathmore.AcoupleofattendeesofnotewereMLAsKenHughesandRodFoxwhobothhavebeeninvolvedintheindustry
onthebrokerside,withRodalsodoingastintininsurancepremiumfinancing.Atthetime,KenwasalsorunningforthepositionofleaderoftheprovincialProgressiveConservativepartybuthassincepulledoutoftherace.
BROKER NEWS InbrokernewsoutofCalgary,Costen&AssociatespurchasedDecDunneInsurance,movingtheoperationintoitsKensingtonofficelocation.CostenhasclosedDec’soffice,andDechimselfhasretiredfromthebusiness.AtHUBInternational,newstaffareDarcyOlberholtzerandMarilynBrown,bothcomingfromWesternFinancialGroup(WFG);DarcywasinVulcanandMarilyninNanton.LucyBreezemovedfromHUBtoMHKInsurance.NewfacesatAllCityInsuranceareJeffWiebeandMarilouSaguilingandnewatSilvercrestInsuranceisKeriSchiedelMyers,previouslywithRigbyInsurance.TreddInsuranceisthenewnameofthecombinedoperationsofH.E.HuntandAssociatesandBKIRiskManagement,bothofwhichwereacquiredbyTreddInsuranceoutofOntariointhepastcoupleofyears.JoiningthestaffatTreddisJocelynPayne,previouslywithDejongsInsurance,whileTammyLesnakleftTreddandreturnedtoToolePeet.NewatRenfrewInsuranceareRoxanneHoffart,whowaswithJonesBrown,andBrettKlymochko,com-ingfromBrokerLink.OveratJar-dineLloydThompson,DavidMiller
transferredtoCalgaryfromToronto,andatThistleUnderwritingServices,whichisJLT’smanaginggeneralagency(MGA),GregEllisjoinedtheteam,comingfromZurich.OthernewstaffaroundtownincludePaulaGardnerwhojoinedLucas&Wright,movingtoCalgaryfromOntario,DawnMosondzatWilsonM.Beck,andtwonewfacesatLundgren&Young:MarkSenger(previouslywithWFGinOkotoks)andJeffCuell(previouslywithThomsonSchindleGreeninCalgary).AtLinkInsurance,SatinderKhabra,whohasbeenapartnerinitsCoventryoffice,boughttheCastleridgeofficefromKrisandNaliniVadan,bothofwhomwillremainonboard.Congratulationsareinorderfortwobrokerswithnewadditionstothefamily.RobynLegrosofWesternGeneralInsuranceandherhusbandRyanwelcomedsonRykeronMarch21,withtheproudgrandparentsbeingRoyandShaundaHowerton,whoaretheprincipalsofWesternGeneral.
Silvercrest Insurance’s Kayla Jonesattends her first IBAA convention.
The Alberta Broker June - July 2014 25
darrell.verbonac@intact.net
DARRELL VERBONAC,FCIP, CRM
Regional BusinessDevelopment Manager
Intact Insurance Company
DianeJonesofSilvercrestInsuranceandherhusbandTyrellhaddaughterKaylaBrooklynjointhefamilyOctober18,withtheproudgrandmabeingAnnaVaillancourtwhoownsSilvercrest.Beingrightontopofsuccessionplanning,KaylaalreadyattendedherveryfirstIBAAconventionrecentlyinJasper.Inacoupleofdepartures,SallyChappusofPalliserInsuranceretiredandmovedbackhometoOntario,andDavidHintonleftAonandisreturningtotheUnitedStates,movingtoNewOrleans.Long-timeindustryveteranDenysNelsonpassedawayMay3attheageof76afteranillness.DenysmostrecentlyhadbeenwithChurchEatonInsuranceasabrokerandhadworkedonthecompanysideformanyyearspreviously.IncentralAlberta,congratulationsgotoDerekDickauandBentleyAgencieswhorecentlycelebratedtheir40thanniversaryofbeinginbusiness.InRedDeer,RachaelBradfordjoinedIng&McKeefromthelocalHUBoffice.Downsouth,WestlandInsurance,whichownsPalliserInsuranceandSunValleyMacKenzieInsuranceinCalgaryandWildroseInsuranceinBrooks,purchasedHuntInsurancefromKenandBobbieDueck,bothofwhomwillremaininmanagementroleswiththeoffice.OutinOkotoks,long-timeunderwriterandmostrecentlyabrokeratMcFarlaneAgencies,JimFarrelyhasretired.OverinMedicineHat,formerbrokerFlorine“Toots”Kingpassedawayattheageof94.TootshadworkedforabrokeragecalledAndersonandDesharnais,andthenCedarSquareInsurance,andisthegrandmotherofLorrieKingofCompetitionInsuranceinCalgary.WFGrestructuredsomeofitsAlbertamanagement.JoniNordinwillberesponsiblefornorthernAlberta,RayWallisforcentralandJamesHallforsouthern.NewofficemanagersareCariBuchynskiatMedicineHatsouth(fromWFG’sMedicineHatdowntownoffice),DerekMettauratMedicineHatdowntown(fromtheFortSt.John,B.C.,office),KayWabassoinTurner
Valley(fromtheWhiteRock,B.C.,office)andBonnieRatcliff,whowillbelookingafterboththeHannaandMorrinoffices.
Company News AtZurichInsurance,JohnArmstrongandNicoleTiessenarenew;bothcameoverfromthebrokerageside,withJohnfromToolePeetandNicoleatRenfrewInsurance.AlsomakingthemovefrombrokertocompanyisBrianWiebewhoisnewatWawanesaandwaspreviouslyatHUBInternational.Othernewcompanyfaces:EcclesiasticalInsurance’sPattiRose,AvivaInsurance’sNatalieKeil,Travellers’sRobertaDilayandSovereignGeneral’sLizPenny.BestwishestoretiredunderwritersBil-lieBurkeofIntactInsuranceandClaireVernerofSovereignGeneral.NorthbridgeInsurancemovedoffices,leavingitsoldpremisesoffofCrowchildTrailinthenorthwestandmovingintotheBeltlineareaat22012AvenueSW.CrystalLidgrenisthenewAlbertarepresentativeforDASCanada,whichsellslegalexpenseinsurance.Inacoupleofclaimsmoves,JodiPayneisthenewmanageratGraniteClaims;JodiwasthemanageratKernaghanAdjusters,arolenowbeingfilledbyMichelleShort.
Northern Alberta News AsChrisLewishasleftPeaceHillsInsurancetojoinbrokersidewithCJCampbellandisnolongerwritingthe“NorthernExposure”column,Ihaveafewpiecesofnorthernnewstopassalong.SaleemDhalla’sEdmonton-basedAllInsuranceLtd.acquiredAquaInsuranceBrokersLtd.,andbothBevYaremcioandValStephensfromAquawillremainwiththenewentitythatnowhasfourlocationsinthegreaterEdmontonarea.JeannineChukvar,whowaslookingafterWFG’sPeaceRiveroffice,istransferringtoLloydminsterwhereWFGhasthreeoffices;JeanninewillbemanagingtheofficeontheSaskatchewansideoftheborder.TiffanySchindlejoinedLeibelMcMillanInsurance,comingfromTailorMadeInsuranceinSherwoodPark,andKevinKulakleftAvivatojoinPeaceHillsInsuranceasthenewbusinessdevelopment/marketingrepresentative.
HIGHLYEFFECTIVE
ASSOCIATIONS
26 The Alberta Broker June - July 2014
The Advocate George Hodgson
“Another year over.A new one just begun.”Thankyou,JohnLennon.MaybethedelayedspringisaffectingmybrainasIwritethispieceinlateApril,butthesewordsareappropriateasIBAAembarksonanewfiscalyearwithanewboardofbothnewandreturningmembers.Wel-comealltoanotherexcitingyearaheadofus!Abigthankyoutothoseboardmemberswhoarenotreturning.Yourservicetobrokersandtheassociationismuchappreciated.Ontheexecutive,wesaygoodbyetoScottTreasureandhellotoJuliaMarshall.Scott’spassionforthebrokers’associationislegendaryandhiscompassionforeveryoneheworkswithiswornonhissleeve.Hewillbemissedgreatly.AndwelcomeJulia—welookforwardtoworkingwithyou!AnewyearmeansthatnowisthetimetodiscussthevaluepropositionofyourIBAAmembership.
1. Government Relations Governmentrelationsistheraison d’êtreoftheassociation.IBAAanditsnationalcounterpart,InsuranceBrokersAssociationofCanada,areexamplesoftherelativelyraregrassrootsadvocacyassociationsinCanada.Thatgrassrootspositionmakesussomeofthemosteffectivegovernmentadvocacyassociationsinthecountry.Governmentadvocacyissortoflikeairconditioninginourautomobiles—wedon’tappreciateitwhenwehaveit,butwesuremissitwhenwedon’t.Itis
anintangiblethatisdifficulttoputamonetaryvalueon.Theassociation’sargumentregardingthebankscontinuestobethatpropertyandcasualtyinsuranceoughtnottoberetailedatthepointofgrantingcredit.Thelastfive-yearreviewoftheBankActwascompletedin2012,whichmeanswearethreeyearsawayfromthenextone.Intheadvocacybusiness,noachievementispermanentandpastaccomplishmentsarenoguaranteeoffuturesuccess.Preparationsforthenextreviewin2017willgetunderwayshortly.IBAAalsofunctionsasanadvocateforinsurancebrokerswithinsuranceregulatorssuchastheSuperintendentofInsurance,theAlbertaInsuranceRateBoard(AIRB)andtheAlbertaInsuranceCouncil(AIC).AworkinggroupmadeupoftheSuperintendent,AIC,theCanadianAssociationofDirectRelationshipInsurersandIBAAhashadsignificantinputintothenewlicensingregulationthatwentintoeffectin2012.Aswithanynewregulation,therearesomeunforeseenconsequencesofspecificsections.Theworkinggroupcontinuestomeettoaddresstheseissues.Overtheyears,IBAAmemberbrokersandtheassociation’sexecutivehaveattendedmanypoliticaleventsthroughouttheprovinceandthenation.Lastyear,IBAA’snowpastpresidentGordEndersandIattendedtheCounciloftheFederationinOntarioonbehalfof
memberbrokers.Ourparticipationinthisevent,whichincludedmeetingourprovincialpremiersandIBAC’splatinumsponsorshipofthesocialeventfollowingthecouncilmeeting,willserveconsumersandbrokerswellwhenindustry-relatedissuesariseatboththeprovincialandfederallevels.Thisyear,ourvisibilityattheseeventsareofgreaterimportanceasAlbertafacesafewmoremonths,perhapsevenyears,ofpoliticalchange.
2. Professional DevelopmentHighqualityprofessionaldevelopmentisparamounttothesuccessofboththeindividualbrokerandthebrokerindustryasawhole.Allbrokersarerequiredtotake15hoursofmandatorycontinuingeducation(MCE)inordertomaintainalicenseinAlberta.Inaddition,manybrokerswanttoremainatthetopoftheirgameanddevotemorethantheminimumtimetoprofessionaldevelopment.Whicheverthecase,IBAAoffersanincreasinglygreatervarietyofimmersioncourses,onlinecourses,seminars,videos,webinars,in-the-fieldcoursesandotherformatstomeetavarietyofeducationneeds.Asignificantbenefittomembers,asidefromthesuperiorqualityofthecourses,isthememberprice,whichissignificantlylessthanthenon-memberprice—insomecaseshalftheprice.Here,onecancalculatethevalueofamembershipinIBAAinrealdollars.IBAA’snewdirectorofprofessionaldevelopment,DianaDai,comestotheassociationwithextensiveknowledgeandexperienceinmarketingandcommunications.Watchforaredesignedwebsitetocomeandchangesinourcommunicationprocesses.
3. Errors and Omissions InsuranceIBAA,throughawhollyownedcorporation,offersexclusivelytoitsmemberserrorsandomissions(E&O)insurancethroughSwissRe/Westport.ThisinsuranceisoneofthemostcomprehensiveE&Opackagesforbrokersinthebusinessandboastsaverycompetitiverate.Asinpastyears,IBAAcontinuestoworkwithSwissRetoimprovethisprogram,whichisalreadyoneofthebestofferingsinthebusinesstoday.
HIGHLYEFFECTIVE
ASSOCIATIONS
THE HABITS OF7THE HABITS OF7
The Alberta Broker June - July 2014 27
GEORGE HODGSONCEO, IBAA
ghodgson@ibaa.ca
OneofthemorevisiblechangeswillbethatthenumbercompanywillnowbeknownasSageAdvisorResourcesCorp.or,simply,Sage.Overtime,Sagewillbecomeacompanymarketingsomeoftheservicestomembersthatarecurrentlybeingprovidedbytheassociation.
4. The Broker Identity ProgramTheBrokerIdentityProgram(BIP)isthebrandingIBACdevelopedin1989todifferentiatebrokersfromotherinsuranceprofessionalsandtoreinforcerecognitionoftheinsurancebrokerprofessionamongconsumers.TheBipper,thefigurewrappedinablanket,isaregisteredtrademarkoftheprogram.Fromtelevisionadstoprintresourcesandnetworking,themanycomponentsoftheBIPprogramallsymbolize“qualityinsurance—knowledge,choiceandprofessional,unbiased”advicethatallowsconsumersto“resteasy,”knowingabrokerisontheirside.TheBippersymbolhasbecomeoneofthemostrecognizablecorporatesymbolsinCanadaandistheenvyofmanyinsurancebrokerageandagentsorganizationsworldwide.Overthepastcoupleofyears,IBACandmanysisterprovincialassociationshavebeenfurtherenhancingtheBipper’simagewiththeongoinginvolvementwiththeInsuranceGoaloftheGame.IBAA,alongwithitsWesternCanadiansisterassociations,hasteamedupwiththeWesternHockeyLeaguetoshowcasetheInsuranceGoaloftheGamethroughoutWesternCanada.
5. Property Insurance SolutionsIBAAhastakentheleadinpromotingsolutionstoongoingconcernsandissuessurroundingthepropertyinsuranceproduct.Thepropertyinsuranceproducthashadsomesignificantchallengesoverthepastfewyears.Theassociationhostedapropertyinsuranceforuminvolvingmanyinsurancecompanies,theInsuranceBureau,theSuperintendent’sOffice,AlbertaInsuranceCouncil,theCatastrophicLossReductionCentreandothers.Aswell,theIBAAexecutivehasconductedone-on-onemeetingswithinsurancecompaniesandunder-takenapropertyinsurancesurvey
distributedtomembers.Thesurveyreporthasbeendisseminatedwidely.Thepurposeoftheseactivitiesistogettheconversationstartedandtolookforsolutions.
6. Catastrophic Events ResponseIBAAhasbeeninvolvedinassistingbrokersandtheirclientstorecoverfromthehorribleconsequencesofthecatastrophiceventsthathaveoccurredinAlbertaoverthepastfewyears.FromprovidingfundstoVictimServicestoassistingwiththerecoveryfromtheSlaveLakeFireandprovidingBIPblanketsforthevictimsofthesouthernAlbertafloods,theassociationhasbeenthereforbrokersandtheirclients.Theassociationofficemadeitsthreelicensedstaffavailabletopeoplewhocouldnotreachtheirbrokerduringthefloodcrisis.Theofficetookover60callsfromsomeverydesperatefolkswhohadnowhereelsetoturn.
7. Connections with PurposeTheitemsabovearejustafewexamplesofmembers’duesatwork.However,aswithallmemberorganizations,theoveralllong-lastingbenefitofmember-shipisthecamaraderieandapositivesenseofbelongingtoagroupofprofessionalswithcommongoalsandaspirationsthathasatitsheartthebestinterestsofconsumersandtheprofession.Ultimately,alltheseactivitiessupportIBAA’smandate:topromotetheperpetuationofthebrokerchannelthatcontinuestoservetheinterestsofconsumerssowell.Haveaveryrelaxingsummereveryone.
28 The Alberta Broker June - July 2014
Know E&O Annette Hollingsworth, J.D., CPCU, CLU, ARC, Vice President, Swiss Re Corporate Solutions
throughoutthebrokerageatalllocationsisessentialtopreventconfusionandpotentialclaimsthatmayotherwisearisefromacquisitionsanddispersedlocations.
Make sure all staff understand your brokerage culture.Owners,producers,brokers,CSR’sandallstaffmustunderstandthefocusofthebusiness.Ifthebrokerage’sstatedfocusisonpersonallines,thenthebrokerageshouldnotdeviateintocomplexspecializedlines.Ifthebrokeragefocusisoncertainnichesofbusiness,thebrokerageshouldtraintheirbrokersandsupportingstaffonhowtoservicethosemarkets.Oftenclaimsbegin
Astechnologyallowstheabilitytoservicelargegroupsofclientsmore
efficiently,manybrokeragesareincreasinglyexpandingtheirreachbeyondtheconfinesofonemetropolitanarea.Inordertobetterservicetheircustomerbase,brokeragesmayopenadditionallocationsormayacquireexistingentitiestoexpandtheirbusiness.Themanagementofmultiplelocationscreatesnewchallengesand,ifnothandledcorrectly,thosechallengesmayleadtoincreasedopportunitiesforerror.Controlledgrowthwhetherorganicorthroughacquisitioncanincreaseefficienciesandreducecost.However,itisimportanttomanagethatgrowth.Besurethatthe“righthandknowswhatthelefthandisdoing.”Consistentculture,complianceandcommunication
whenthebrokerageattemptstosellinsuranceproductswithwhichitisunfamiliar.Understandyourfocus.Ifyouareacquiringbrokerages,acquirethosethatfityourvision.Thenshareyourvisionwithallstaffateverybrokeragelocationonaregularbasis.Helpyourteamseewhatthebrokerageistryingtoaccomplishandhoweachpersoncancontributebystayingfocusedonthegoalsoftheentireorganization.Whentheworkloadisheavyandclientsdemandyourattentionatyourprimarybrokeragelocation,itcanbedifficulttogiveyourattentiontotheotherofficelocations.Butinordertokeepthoseotherlocationsinlinewithyourvision,youmustprovidethemwiththeattentiontheyneed.Youshouldtrytovisityourotherbrokeragelocationsfrequently,atleastonceamonth.Visiteachsiteforalongenoughtimethat
Does the RIGHT Hand Know
What theLEFT Hand is
Doing?
theeachsitedoesnotputonafrontforyoubutactuallyrevealsitstruemethodofoperation.Byallowingeachofficetobecomecomfortablewithyourvisits,youcanbuildtrustandfamiliarity.Thebrokersandstaffateachlocationmustfeelcloseenoughtotheprimarybrokeragetobeabletoaskquestions,shareproblemsandseekfeedback.
Establish uniform officeprocedures and a standardsystem of compliance.Eachprovincehasregulationstoprotectitsowncitizens.Ifyoulocateabranchoffice,orevenateleworker,inanotherprovince,youmustresearchlicensingandotherbusinessregulationsimpactingyourinsuranceoperation.Failuretocomplywithregulatoryrequirementscouldleadtoregulatoryinvestigation,disciplinaryactionoreventhepossiblerevocationofyourlicense.Ifadjustmentsareneededtobemadeasaresultoftheregulations,donotbeginoperatingyourbusinessuntilyoucomplywiththelaw.Standardoperatingprocedureswillenhancetheefficiencyandmanagementofmultiplebrokeragelocations.Staffcantransferamongagencies,withoutextensivereadjustment.Theessentialproceduresshouldnotvary.Eachbrokerageshouldhavesimilarproceduresregardingdate-identificationofcommunicationwithclientsandcarriers.Additionally,documentationofcoverageofferedandrejected,andmaintenanceofexpirationlistsshouldbestandardized.Thisexcerpt,fromaletterwereceivedfromoursolicitorretainedtodefendaninsured,revealsthedifficultiesinofferingadefensewhenproceduresarenotfollowed.Thelitigationarosefromdamagesustainedbyacommercialenterprisewherethecarrierarguedthatthebrokeragehadnotprovidedthenecessaryinformationforthecarriertoquotecoverage,despiteseveralrequests.Thereportfromcounselstatedthebrokerage“hasnodocumentationthatitsenttheproperinformationand
thebrokerwhoworkedontheaccountleftthebrokerageseveralyearsagoonunfavourableterms.Thebroker’sCSRsaysthebrokerwasnotdetailoriented,wasnotgoodaboutprovidinginformationandoftenmademistakes.”Defensecounselopinedthatitwashighlylikelythejudgewillrulethatthebrokeragefailedtoprovidethenecessaryinformation.Thebrokerageitselfhadastrongcultureofcompliancebutsufferedfromonebrokerwhohadnotfollowedthestandardofficeproceduresestablished
and,thus,createdasignificantproblemforthebrokerage.Inadditiontoimplementinguniformproceduresaroundtheprocessoffiledocumentation,thebrokerageshouldalsoimplementuniformproceduresfordiaryandsuspensesystems.Thereshouldbeacentralizedbrokeragemanagementsystemandcomputersineachlocationshouldbecompatiblewithoneanother.Infact,itislikely
continued on page 30
The Alberta Broker June - July 2014 29
30 The Alberta Broker June - July 2014
thatcomputersystemswillbecomeabackboneforyourorganizationasofficesarespreadoutgeographically.Additionally,itisessentialthatyouensureadequatesecurityofpersonalinformationacquiredfromyourinsuredsandthatyouprovideproperprivacytrainingtoallemployees.Theuseofencryptionandothermeasurestoprotectpersonaldatawhentransmittedisimportant.Ifemployeesusesmartphones,verifythephonesarepasswordprotected.Aspartoftheestablishmentofstandardizedprocedures,makesurethestaffineachlocationknowthemethodtoreportanerrorsandomissionssituation.Establishanddiscusstheprocedurewithallbrokersandemployees.Dosoregularlytopreventhesitationinreportingatthetimeofoccurrence.Don’tletproblemslinger.Delayscouldcreatecoverageissueswithyourprofessionalliabilitycarrier.
Communication is a key to successfully running multiple locations. Freeandopencommunicationwithallstaffisveryimportantwhenyouhavemultiplelocations.Neithertheculturenorthecompliancecanhappenifyouneglecttofocusoncommunication.Haveweeklystaffmeetingsbyphoneorwebinar.Haveyourofficepersonnelgettogetheratleastonceortwiceayeartoenhancecommunicationbetweenpeopleonalllevels.Communicateyourvisiontoallmanagersinalllocationsandtheyinturnmustcommittoclearlycommunicatingyourvisiontoothersintheoff-siteagencies.Regularauditsandevaluationsofthemanagerandtheofficearecriticaltomakingsureyourvisionisbeingcarriedoutaccordingtoyourexpectations.Whilestrivingforpositiveenergyinyourorganization,donotavoiddiscussingproblemsituations.Considerlearningopportunitiesthatmaypresentthemselvesfrompotential
claimssituations.Educateyouremployeesaboutthesituationsthathavecreatedproblemsinoneofficesootherofficesitescanavoidthesamemistake.Growthispositivewhencontrolledbutbesurethatthe“righthandknowswhatthelefthandisdoing.”Consistentculture,complianceandcommunicationthroughoutthebrokerageatalllocationscanbeessentialtopreventingconfusionandpotentialclaimsthatmayotherwisearisefromacquisitionsanddispersedlocations.
This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. Theinformation contained or referenced in thisarticle is not intended to constitute and should not be considered legal, accounting or profes-sional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarilyrepresent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.
continued from page 29
32 The Alberta Broker June - July 2014
PYIB Perspective Jonathan Brown
Ihaverecentlyhadtheopportunitytoevaluatethejobmarketinourindustryfromboththepositionofahiringmanagerandasajobseeker.Ihavefoundthattherearesomeexcellentideasthatarebeingimplementedinthewaythatweattractbrokers,butthereiscertainlyroomforimprovementinthewaythatweevaluateprospectivenewhires.Thereisalsotremendousopportunityforimprovementonthepartofthebrokersasfarastheirexpectationsandperformancewhentheybeginanewposition.Whenbrokerstodayarelookingforthebestplaceofemployment,theywilloftenchoosetheirtopcontendersbasedonthingslikelocation,productlines,officesize,trainingincentivesoffered,vacationtimeandpossibilitiesofcareeradvancement,withcompensationbeingfartherdownthelist,asitissimilarinmostbrokerages.Theseitemswillvaryinimportancefrombrokertobroker.Astheseconsiderationshavebecomemoreandmoreprevalent,manyemployershaveadaptedtothembyofferingdifferentincentivesforbrokerstochoosethemovertheircompetitors.
Whilesomeofthethingsthatarebeingdonetoattractemployeesaresuccessful,somanyofthemarebeingdonebymostbrokerages.Abrokeragelookingtotrulystandoutmustfindsomethingthatnooneelseoffersandthatwouldbeenoughtocauseaprospectiveemployeetochooseitoveranyoneelse.Thingslikeadditional
vacationtime,flexdays,bonusplansandpersonalincentivesareagreatwaytostart,astheyarealwaysappreciatedbybothcurrentemployeesandprospectiveemployeesandleadtobetterretentionofbrokersaswellaseasierhiringofnecessarynewstaff.
HIRING INSIGHTS
From Both Sides of the Fence
The Alberta Broker April - May 2014 33
JONATHAN BROWN,CAIB
jbrown.combined@gmail.com
Itisalsomybeliefthat,asweevaluateprospectivestaff,managersneedtodeveloptheabilitytointerviewbetterandtofindwaystotrulyevaluateandunderstandthepersonalitiesandcharacterofthepeopletheyareinter-viewing.Manycompanieshaveturnedtopersonalityprofilingandaptitudetesting.WhileIthinkthattheseareexcellentandvaluabletools,theyshouldneverreplacetheface-to-faceinterviewtodetermineifacandidatewouldbeagoodfitforyourorganization.Asfarasbrokersareconcerned,whenlookingforanewopportunitywithintheindustry,theyneedtofindwaystodothesametypeofdifferen-tiationtogivereasonswhytheyshouldbehiredoversomeoneelsethatiscompetingforthesameposition.Thismaybethingslikenetworkingwithintheircommunitybybeinginvolvedwithlocalcharities,sportsteams,businessassociations,IBAAlocalcouncil,or,ifayoungerbroker,thePYIB.Theseareallthingsthatmaysetthemapartfromthecrowdwhenattemptingtogainanewpositionwithintheirdesiredbrokerageandaddvaluetothebrokerandthebrokeragealike.However,whatmattersmostinallofthisshouldbethetypeofpersonthatthebrokeris,andthebrokershouldendeavourtogrowintothetypeofpersonthatsheneedstobeforthejobthatshewants.Energyandenthusiasmarealwaysimportantcommodities,anddevelopingpeopleskillsandsalesskillswillalwayshavebenefit.Oncethebrokerhasgottenaposition,heneedstohavetherightattitudetowardshiswork.Manybrokerstodayfeelthatajobisowedtothemandthatitistheresponsibilityoftheemployertocontinuallyconvincethemtoworkthere.Whiletheemployermayofferincentiveplanstoretainemployees,itshouldbetheattitudeoftheemployeethatshemustcontinuallyworktoherhighestlevelofabilityinorderthattheemployerhasincentive
tokeepheremployed,andnottheotherwayaround.Whenthecorrectattitudeispresentinbothparties,long-termrelationshipsareforged.Finally,Ibelievethatthebestbro-keragesshouldalwaysbelookingforthebesttalentandbewillingtocommittotrainingtherightpeopleforthepositionsthatareneeded,asopposedtosimplylookingforsomeonethathassomepastexperiencebutmaybemediocreinhisorherperformance.Conversely,thebestemployeesshould
alwaysbelookingforwaysthattheycanimprovethemselves,tobecomemorevaluabletotheircurrentemployer,or,iftheymustfindanewposition,fortheirnextemployer.
34 The Alberta Broker June - July 2014
With consumer recognition and understanding of the BIP brand logo becoming ever more positive, there is high value in brokers displaying it at every opportunity.Itisalsoimportanttoouradvocacyefforts,buildingcredibilityforourassociationwithpoliticiansandinvestmentpartners.The25thanniversaryoftheBIPPERthisyearprovidesaperfectmilestonetomeasurebrokerengagementwiththebrokeridentityprogram(BIP).WhileweunderstoodthattheBIPwasinuseinmanybrokers’marketingcommunications,werecentlycommissionedsomeresearchtoquantifythebreadthanddepthofitsuse.Additionally,wewantedtobetterunderstandtheunderlyingmotivationsofBIP’smostardentsupporters,aswellasdiagnosewhysomebrokershavenotadopteditorareonlylightusers.Anonlinesurveyofbrokerswasdevelopedbyanindependentresearchfirmandadministeredbymemberassociations.Abig“thank-you”toeveryonewhoparticipated,includingTripemcoInsuranceBrokersInc.ofBurlington,Ontario,therandomlychosenwinnerofour$2,500contest.Arobusttotalsampleof1,153brokerswascollected—representingdifferentcommunitysizes,brokeragesizeandbrokerageage—andweightedbyprovincetoreflectbrokerdistributionacrossCanada.Theresultswerereassuring:BIPutilizationofoneformoranotherisgenerallygoodeverywhere,butthestudyrevealedthatroomstillremainstoimprovebrokeragepenetrationandtypeofuse.Keyfindingsinclude:•Anaverageof74%ofbrokerages (varyingfrom67%to81%byprovince)usetheBIPsymbolin theircommunications.
•Useishigherinsmaller(communities lessthan50,000)andsmaller(less than11employees)brokerages•42%ofbrokeragesaremediumtoheavyBIPusers,i.e.,useatleastfiveofthemostimportantidentifiers,e.g.,exteriorsignage,businesscards, stationery,contracts,pins,website, emailsignatures,socialmedia, receptionarea,window/doorstickers.•Reasonscitedforwidespreaduse include:nSignifiesmembershipinanofficial associationnBenefitofawarenessfromTVcampaignnBuildstrustwithcustomersnConveyscredentialsandprofessionalknowledgenAssuresintegrityandhighstandardsnImportantsymbolforconsumers,easytospotPositivereasonsfortheuseofBIPfaroutweighedthereasonsfornotusingit.Thesetendedtocentreonsimplefor-getfulness(53%),lackofproperconsid-eration(46%),andoversight(45%).Aminorityofbrokersexpressedconcern
aboutperceivedbrandingpriorities/conflict(24%)anduncertaintyaboutusagerules(20%).WhileitissatisfyingtoseethatmostbrokersusetheBIPtrustmarksome-where,therearestillopportunitiestoimproveitsvisibility.DisplayingtheBIPsymbolbringsthepoweroftheBIPtelevisoncampaigndirectlytoyourfrontdoor,identifyingyourbrokerageasavaluablesourceoftrustworthyandimpartialinsuranceadvice.DisplaytheBIPforallit’sworthateveryopportunity—beitlarge,likebrokeragesignage,orsmall(e.g.,emails,newsletters,businesscards,websiteandBIPpins).ConsumersrecognizeandunderstandwhattheBIPstandsfor,don’tmissanyopportunitytotakeadvantageofthatconnection.
Viewpoint Ken Myers
Marking Our Territory
KEN MYERS,B. COMM., FCIP, CAIB
President,Insurance Brokers
Association of Canada
BIP Usage and Attitude Study Confirms Broker Support Across Canada
36 The Alberta Broker June - July 2014
Commercial Break Karen MacWilliam
Suffering from “Bylaw Stress?”Recognize and Address Your Client’s Risk from Bylaw ExclusionsThemerementionoftheword“bylaw”causesinsurancebrokerstowanttobreatheslowlyanddeeplyintoapaperbag.Atypicalcommercialpropertypolicywillcontaina“bylawsexclusion”similartothis:“this policy does not insure loss, destruction or damage caused directly or indirectly: in consequence of orcontributed to by the enforcement of any bylaw, regulation, ordinance, or law regulating zoning or the demolition, repair or construction of buildings or structures, which bylaw, regulation, ordinance or law makes it impossible to repair or reinstate the property as it was immediately prior to the loss.”Thisbringsaboutthreedistinctandpossiblyuninsuredrisks:1.Thecostrequiredtodemolishtheundamagedportionofthebuildingstocomplywiththebylaw.2.Theadditionalcostofrebuildingthatisattributedtothebylaw.3.Theadditionaltimerequiredtorebuildbecauseoftheoperationorenforcementofthebylaw.Further,ifthebuildingcannotbere-builtonthesamesitebecauseofthebylaw,theinsuredwillalsobestymiedbytheprovisioninthepolicythatrequiresthatthepropertybereplaced“onthesamesiteoranadjacentsite.”Thereareanumberofsituationsthatmaygiverisetothistypeofexposure:1.Designatedheritagebuildings,whichmustberebuiltinconformitytothestyleandmannerofconstructionoftheoriginalstructure.
2.Majorbuildingcodechangesthatdictatecertaintypesofconstruction
materialsortechniques.3.Localordinancesthat
imposespecificdutiesuponthepropertyownerowingtolocalaesthetics,zoning,neighbourhoodcharacter,orsitecharacteristics.4.Lawsandregulationsrelatedtooperationson
thesite.Mostinsurerswillbeabletoprovidecoverageforsomeorall
oftheexposures,providedthattheyareidentifiedin
advance.Brokersmusttakecaretoensurethatthereplace-mentvalueofthebuilding
isadequatetoinsuretheENTIREcostofrebuilding
andsatisfyingtheordinance,asmanyinsurerswillremoveormodifythebylawsexclusionbutwillnot
modifythelimitofinsurance.It’sallwell
andgoodtohaverecognizedtheexposure,
but,ifthelimitisn’tadequatetoinsuretheassociatedrisk,the
missionwillhavefailed.OtherthanthroughaVulcan
mind-meld,howdoesonecometorecognizetheserisks?
Ask the insured.Manyfolks,particularlyinsmallercommunities,arewellawareofthe
nuanceswheretheyare.Forinstance,Iliveinasmalltownwithmanyheritagehomesandcommer-
cialbuildings,andourtowncouncilregulatespaintcolourinacertaindistrict.WeALLknowaboutit. Communicate with building officials(orhavetheclientdoso)insmall-tomedium-sizedcommunities.Havingworkedinmunicipalgovernment,Iknowthattherearea
karen_macwilliam@telus.net
KAREN MacWILLIAMis an insurance and risk management consultant
hostofpeoplewhogetpaidtoknowandenforcethesethings. Speak to colleagueswithinthefirmandintheinsurancecommunity.There’snomonopolyonknowledge.Ifyoucomeacrosssomethinguniqueornew,shareitwithothers. Ask an insurance companyinspector, adjuster or loss preventionprofessionalfortipsonwhattoaskabout.Mostoftheshowstopperswillberelatedtobuildingfoundations,insulatingmaterials,fireprotection,HVACequipment,accessforthedisabled,andseismicconsiderations(likelynotanissueinAlberta). Look to local contractorsandaskaboutwhatwouldhavetobechangedtorebuildaparticularbuildinginconformity“tocode.”Thesefolksareinteractingwithbuildingofficialsonadailybasis.Ifnecessary,haveanappraiserassisttheclient. Don’t forget about environmental considerations.Thesemayinclude:permitstooperate,permitstodischargewaste,asbestosabatement,removalofhazardousmaterials,removalofunder-groundtanksanddiscussionsfromtheMinistryofEnvironmentabout“howcleanisclean”whenthesiteisrestored.Fromacoverageperspective,considerthesemodificationstothepolicy:•Modifythebylawsexclusiontoprovidecoverageforremovaloftheundamagedportionrequiredbylaw.•Endorsethepolicytoprovidefor increasesinthecostofconstructionoccasionedbythebylaw(alongwithanactualincreaseinthetotallimit).•Includeatimeextensiononthebusinessinterruptionformtodealwiththeenforcementofbylaws(andmakesurethattheperiodofindemnity isadequatenotjustforoneinsuredandoneloss,butforacatastrophe).•Removethe“samesite”clause.Thiswillallowtheinsuredtorebuildona sitewithoutthesameissuesand
couldultimatelyreducethecostpaidbytheinsurerintheeventofaloss.Thiswilloftenneedtobecombinedwiththecoveragetoremovetheundamagedportionofthebuildingandremovedebrisattheoriginalsite.•Makesurethatthepolicyhasa replacementcostbasisofsettlement.
Keepbreathingdeeply…intothebagifyoumust.
The Alberta Broker June - July 2014 37
38 The Alberta Broker June - July 2014
ByMichaelSpiar,MemberEngagement&CommunicationsSpecialist,CSIO
E-signatures,orelectronicsignatures,isatechnologysolutionthatenablesbusinesses
andclientstosend,receiveandsigndocumentsentirelywithoutpaper.Consumersalreadyusee-signaturesonadailybasis,whethermakingonlinepurchasesorsimplytappingtheircreditcardinsteadofsigningareceipt.Forinsurancebrokers,thebenefitsofadoptionaresignificant:farbeyondsimplycapturingsignatures,e-signaturesboostworkflowefficiency,operationalsavingsand,aboveall,customersatisfaction.GerryBaert,presidentofBlueCircleInsuranceinCalgary,adoptede-signaturesinspring2013.“Asacompany,BlueCircleisfinalizingthelastdetailstodeliveracompletelypaper-lessproduct,everythingfromapplicationrightthroughtothedeliveryofdocuments.e-signatureswasanearlysteptogetreadyandpreparedforthatpaperlessworkflow.”SprouleInsurance,anotherCalgary-basedbrokerage,usese-signaturestechnologyalmostexclusively.“We’vecertainlyreceivedgreatfeedbackfromourclients,”saysJaySproule,president.“Wereceivecommentsofexcitementontheeaseofdoingbusinesswithus.They’reenamouredbytheprocess.”Theconvenienceofe-signaturesstemsfromshorteningandsimplifyingthesalescycle—withouthavingtoprint,sign,scanandsendpaper,brokerscancompleteapplicationsinasingle
face-to-faceinteraction.Furthermore,becausee-signaturesoperateoncomputersandmobiledevices,brokerscanconductbusinessremotely,expandingtheirterritoryandclientbase.ForBaert,customerconvenienceisparamount.“Weseeitthroughretention.It’smeasurable.Wehad25%fewercancellationsthisMarchcomparedtolastyear,andwhileIcan’toweallofittoe-signatures,Iwoulddefinitelysaythathalfofthatreductioncanbeattributedtoe-signatures.It’sbecauseofourspeedofdeliveryandhowwe’reabletoputthingsinconsumers’handsinawaythattheylike.”Operationally,e-signaturescomplementtheefficienciesandcostsavingsalreadyrealizedbythebrokerchannelthrougheDocsandCSIOnet.“We’reoneDocs,”saysBaert.“Nowwithe-signaturesaswell,wesaveathirdofthetimepertransactioncomparedtopaper.”E-signaturessolutionscancontainrulestopreventsigninguntilallrequiredfieldshavebeenpopulated,limitingtheoccurrenceofmistakesandre-writes.“Thebiggestbenefitisthatwehavethedocumentsbacksoquickly—wedon’thavethatexposureoutthere,”remarksBaert.“Theefficiencyofouroperationthroughdocumentmanagementhashelpedusimmensely.”Whilethereexistsamisconceptionthate-signaturesarenotlegalorenforceable,theoppositeistrue.Canadiane-commerceandinsurancelawspermite-signaturesbothfederallyandprovincially.Infact,e-signaturescanprovidesecurityandintegritysuperiortopenandpaper.Consentisakeypieceofenforceability,andasafirststepinatransaction,e-signaturesimplementationstypicallyobtaincustomers’expressconsenttosignandreceivedocumentselectronically,providingevidencethattheysignedwithfullintentandcomprehension.
E-signaturessolutionsalsoproduceanaudittrail,recordingwhenthedocumentwascreated,whomodifiedit,whenitwassenttoandfromvariouspartiesandwhenitwassigned.Theyfeaturetamper-proofingmeasuresaswell,invalidatingsignatureswhenunauthorizedchangesaremade.Combined,consentandaudittrailsreducetheriskofrepudiationandareasignificantdeterrenttocontractdisputes,litigationandsettlements.“It’sfantasticfromourpointofview,”statesSproule.“Everythingistime-stamped.Everytimeyoutouchthedocument,there’sanewversion.Wehavebettercontroloververifyingdocumentsthanwedidonpaper.”“Thepeoplewhoaren’tdoingthis,”saysBaert,“they’regoingtobeleftbehind.It’sthesameasifyou’renotusingeDocsorsomesortofupload-downloadformat.Theyjusthavetoexposethemselvestoe-signatures—butit’sonlyonepartoftheequation.Theyallhavetospeaktogether.”Sproulehasasimilarphilosophy.“E-signaturesaremoreaboutcreatingaseamlessdigitalinsurancetransactionthansimplyobtaininganelectronicsignature.It’saboutamalgamatingvariousdocuments,possiblyfromdifferentsources,intoasingleclient-readydocument.”CSIO,recognizingthebenefitsofe-signatures,commissionedlawfirmFaskenMartineautoproduceane-signaturesadvisoryreport.ReleasedinNovember2013,thereportisafoundationaldocumenttoeducatebrokersontheCanadianlegalandregulatorylandscapeconcerninge-signaturesandprovideguidanceinresearchingandselectingasolution.Visitwww.csio.com/e-signaturestolearnmore.
Go Paperlesswith E-Signatures& Improve Security
40 The Alberta Broker June - July 2014
Professional Development Diana Dai
Finally, as I write this column at the end of April, spring is coming. If you haven’t already started your fair-weather excursions, I am sure many of you can’t wait to get outdoors. Are you going to Tweet about your excitingadventure? Or share your experience with your Facebook friends? Last issue I shared our learnings fromA.K.A. New Media’s presentation at the PD conference on social media marketing. I focused on strategy—the why and how. Now I’d like to talk the “doing” (or “the tactics”) bysummarizing the dos and don’ts of the most popular social media:Facebook and Twitter.
FACEBOOK Total number of monthly active Facebook users: 1,310,000,000 Lifecycle of a Facebook post: 80 minutes
TIPS Aim to post 1–2 times a day. Keep it short and to the point. Encourage commenters/inter-action—ask a question, for example. Use calls to action—“like our page to win this contest.” Tell them what you want them to do.
DOs Use a business page, not a personalpage, to give your business a voice. A business page also allows multiple people to contribute to the content and saves you from having to share your personal information. Get a customized URL—this is really for search engine optimization(SEO) purposes: having your businessname in the URL will help searchengines quickly identify your company. Use pictures, take videos and morepictures—pictures and videos allow you give a face to the company name. Talk to people—see a post you agree with or can comment on?
Do it! Make yourself known in your online community. Like/reply to comments. Offer insight—you are the experts in your organization. Show off a little. Share information that you know andthat might not be known by your fans.
DON’Ts Constantly pitch. Ignore your page.
TWITTER Total number of active registered Twitter users: 645,750,000 Number of tweets that happen every second: 9,100 Lifecycle of a tweet: 5–25 minutes
TIPS Aim for 1 or 2 tweets per day. Be concise. Twitter limits you to 140 characters. Include links, but shorten them when you can. Ask followers for retweets. Follow your interests.
DOs Reply to people—users want to be recognized by those they are following. Replies also give your users the chance to retweet your response, reaching out to potential new followers.
SocialMarketingTactics
FRetweet—didyoufindaninterestingarticleonTwitterfromsomeoneyoufollow?Chancesareyourfollowerswouldfindthisinterestingtoo.Retweetinginformationshowsthatyourfollowerscanrelyonyoutoprovidegreatinformationandcreateanopportunityforthemtoconnectwithyoufurther.Use#hashtags,butkeepthehashtagstoaminimum—1or2willgetyou21%moreengagementthanifyouadd3ormore.Participateintrendingtopics—it’simportanttohaveanopinionabouttrendingtopics,butexpressyourviewwithyouraudienceinmind.Youdon’twanttodamageyourreputation.Followbackthosewhofollowyou—letusersseethattheyareofvaluetoyou.Sendingoutthepopularhashtag#followfridaywithyourrecentfollowersisagreatwaytoshowyourappreciation.ButbecarefulofthemanyspamTwitteraccounts.Useyourbestjudgment.
DON’TsUseautodirectmessages—itmayseemlikeagoodideatosetanautomaticdirectmessagetoallnewfollowers,butyouruserswillseerightthroughthat.Theywantyourresponsetobeauthentic.Overusehashtags—youdon’twanttoannoyyourusersandcausethemtounfollowyou.Postcontentthatisirrelevanttoyou.Ifyoufoundaninterestingarticlethatdoesnotrelatetoyourbusiness,opttopostonyourpersonalaccount.
HELPFUL TOOLSHerearethreehelpfultoolsthatcouldmakeyoursocialmediamanagementabiteasier:•HootSuite:Gaintheabilitytomanagemultiplenetworksfromoneplatform,“shrink”yourlinks,andschedulepostsinadvance.•Swayy:Createadashboardofarticlesoncontent/topicsyou’vechosenasimportant(goodforindustrynews).
The Alberta Broker June - July 2014 41
DIANA DAIDirector of Professional
Development, IBAAddai@ibaa.ca
•Tweriod:PullTwitterstatstotellyouthebesttimestopostforyouraudience.
FOLLOW FRIDAYThe practice on Fridays of
recommending 2-3 people onTwitter, providing reasons and
ending the tweet with the hashtag #followfriday or #ff.
Source: Urban Dictionary
FollowFriday.com tracks who’sbeing recommended and who’sdoing the recommendations.
FollowFridayHelper is a special app that tracks who you interact with the most on Twitter. It offers shortcuts to promote them and express gratitude to those who
recommend you on Twitter.Source: About.com
42 The Alberta Broker June - July 2014
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