Cowan Code · 2018-04-04 · 8 The Alberta Broker June - July 2014 continued from page 7 Cowan describes his business philosophy as quite simple. “We operate with a professional

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 [email protected]

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: [email protected]

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’[email protected].

• 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.


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.


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


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


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.


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.”


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


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


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.

[email protected]

SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMSare lawyers with

Dentons Canada LLP and practice in theprofessional liability insurance area.

[email protected]

“Lloyd’s argued that exclusion ‘N’

excluded fromcoverage all claims

arising frominjuries sustained

in a sparring matchbetween aninsured anda claimant.”


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


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?”



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.


2014 IBAA Convention

PHOTO GALLERY – SPEAKERS


PHOTO GALLERY – SPEAKERS

KEYNOTE:Arlene Dickinson

Doris Daley Colin Simpson Richard King

Paul KovacsSean Mulcair



PHOTO GALLERY – HOSPITALITY NIGHT




PHOTO GALLERY – TRADE SHOWThe Alberta Broker June - July 2014 21


PHOTO GALLERY – PRESIDENT’S GALA





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!


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.


[email protected]

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


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


GEORGE HODGSONCEO, IBAA

[email protected]

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.


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




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.



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

[email protected]

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.


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


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

[email protected]

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.



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


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).


DIANA DAIDirector of Professional

Development, [email protected]

•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


Documents

Cowan Code · 2018-04-04 · 8 The Alberta Broker June - July 2014 continued from page 7 Cowan describes his business philosophy as quite simple. “We operate with a professional