The Alberta Broker - c.ymcdn.com · 4 The Alberta Broker April – May 2017 Julia Marshall Message from the President Like all the new presidents before me, I spoke at the beginning

The Alberta Broker April – May 2017 3

Annette Hubick

Message from the Editor “Every ad should answer a question.” This is one of many statements that resonated with me during myconversation with Fab Dolan, Google Canada’s head of marketing and the keynote speaker at the 2017 IBAA convention. These words really struck a chord with me—such a simple, “boil itdown” way to evaluate the effectiveness,even “worthiness,” of a myriad of marketing and communication tactical decisions… including editorial content to include in this magazine. Here are a few of the questions this issue hopes to answer for you, dear reader:• AtwhatrateareAlberta’sbrokers adopting technology into their operations?• Who’snewandonthemoveinthe industry?• WhatcanbedonetoaddressAlberta’s rising claims costs?

impressive Fab Dolan, listening to what industry leaders have to say and witnessing a hackathon in action (I am in awe of how these “foreign language” speakers can make things happen with strokes on a keyboard.) I’m really looking forward to renewingacquaintances and making new ones with brokers and industry partners—these conversations have led to many aha moments over the years … or at the very least, a few laughs. Learning,connecting, sharing and laughing, all in the gorgeous setting that is the Fairmont Banff Springs Hotel—what a great way to spend a few days!

Whetheryouattendtheconventionor not, please let me know if you have other questions that you would like to see answered in an Alberta Broker magazine article.

• Howcanitbethataclaimscoverage decision is “right” but not right?• ShouldIstudyforaCAIB designation in person or online?• WhatdidJuliaMarshalldo, accomplish and learn in her year as IBAA president?• HowcanImakeadifference?• WhatbenefitdoIgetforthecostof my IBAA dues?• HowcanIcomeoutofmyshelland become a better networker?• WhatcanIexpectattheIBAA convention?

Speaking of the convention, once again the line-up of learning andsocializing opportunities promises notto disappoint. Personally, I’m reallyinterested in hearing about real brokers’experiences in taking their operationstothenextlevelwithtechnology,gaining more insights from the

Publisher and Editor Annette HubickPrinting McCallum Printing GroupDesign and Layout Ron LeckeltAdvertising Michele Schuldhaus 780.910.2601 [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.

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3 Deacon Lane, Sherwood Park, Alberta T8H 1M7T: 780.945.1934E: [email protected]

3010 Calgary Trail, Edmonton, AB T6J 6V4T: 780.424.3320 •1.800.318.0197F: 780.424.7418 • www.ibaa.ca

April-May 2017

3 Message from the Editor

4 Message from the President

6 Legal-Ease In Their Shoes: Insurers Cannot Rely on Specialized Knowledge

10 The Advocate Due-Gooder — How Your IBAA MembershipbenefitsYou

14 Chinook Country Report

17 2017 Convention Guide

18 Google the Future Convention Keynote Speaker, Fab Dolan on how technology is redefiningpossibility

24 Convention Schedule

25 Convention Exhibitors

26 Convention Speakers

27 Convention Events

28 Reluctant Networkers

32 PYIB Perspective Difference Makers

34 Professional Development CAIB Courses: In person or online?

37 Did You Know?

38 IBC Insight Fixing Alberta Auto Insurance

40 Setting the Benchmark in Technology for Alberta Brokerages

44 Northern Exposure

46 IBAA Courses

President Julia MarshallChief Executive Officer George Hodgson

The Alberta Broker is the official publication of theIN THIS ISSUE

4 The Alberta Broker April – May 2017

Julia Marshall

Message fromthe President

Like all the new presidents before me, I spoke at the beginning of the year about what this year’sfocuswouldbe.Whileitalllooksverycutandclear on paper, the environment around us changes at such a quick pace that our initiatives are adjusted and focus moves rapidly. Regardless, my top areas to focus on have remained quite constant: 1. Technology 2. Insurer partner relations 3. Advocacy 4. PYIB 5. BIP—the trademark of the Insurance Brokers Association of CanadaWiththatsaid,elementsofadvocacyandinsurerrelationsmoved immediately to the forefront as I started my role aspresidentonMay16,thirteendaysafterthemandatoryevacuationoftheentirecityofFortMcMurray.Thiscatastrophic loss took immediate importance. The IBAA office reached out to its affected members and communicated with IBC on an ongoing basis. As always, IBC became a go-to centre for all insurance inquiries, and the IBAA office was available to assist in any way needed.InlateSeptember,ItraveledtoFortMcMurrayandspentthe morning with IBC touring all areas and visiting with brokermembersthatafternoon.Theexperiencewastrulysurreal, and we have much work to do going forward.Myyearaspresidentstartedoffwithmuchtravelandmany meetings. One particular meeting that stands out and will probably capture the main event of my presidentialyearwasameetingwithMinisterofFinanceJoeCeci.InSeptember2016,GeorgeHodgsonandImetwiththeminister mainly to discuss licensing and equivalencies. As a side note, we ended with a discussion about credit unions retailing insurance out of their branches and we relayed our provincial and national position against it. For those of you not familiar with this position, a large part of the association’s role is to advocate for the broker federally and provincially to keep the Bank Act “as is.” Webelievethattheconsumerisinavulnerablepositionif insurance is sold at the same point as granting credit. “Insurance ought not be sold at the same point as granting credit.” If you have heard this before, then you might be around more insurance people than you think.

FromOctoberthroughtoDecemberof2016,IBAAmanagement and I have had constant and consistent conversationswiththeminister’soffice.InDecember2016,the Credit Union Amendment Act had its third reading in thelegislatureandpassed.Weareextremelyhappyastheamendment encompasses the information and suggested wording that we provided. The regulations are still forthcoming, so the process is not complete but, thus far, we believe our advocacy has won against the credit union lobby to change the Act. I’d like to thankallofyouwhoreachedouttoyourlocalMLAsonbehalf of your association. In terms of the other focus items, I am proud to say this year’s board has had very active committees working on several initiatives.

Here are a few highlights: Our technology committee is working on the hackathon for this year’s convention. This 24-hour competition will be open to all groups wishing to enter a team. Teams will be tasked with creating a solution for a broker-driven initiative.The technology committee is also working to ensurevendors are available for all brokers to achieve varying levels of technology and digital initiatives, no matter what level they are operating at. Our communications committee has been proposing different options for the office to become more effective at communicating with our members.

STAND OUTwith Alberta’s brokers

by advertising in

Call Michele Schuldaus at:T: 780.910.2601

E: [email protected]

Our Broker Identity Program is always a work inprogress as we constantly strive to improve the Bipper brand recognition in Alberta. As usual, our PYIB is very active and hosted the fall conference as well as the curling bonspiel. IBAA hosts regional insurer sponsor meetings each year, and most recently I attended the IBAC CEO insurer meetings in Toronto. IBAC (Insurance Brokers Associa-tion of Canada) invited the sponsor company CEOs to talk openly about our marketplace and what’s going on.Withoutbeingcompanyspecific,Iheardafewrepetitivecommon messages from most companies, and I want to highlight four of them for you because they were huge takeaways for me.

TECHNOLOGYMakesureyouknowwhatyourtechnicalanddigitalinitiatives are. These elements are going to be moreimportant than ever to know. If you do not plan fortechnological change, you will be lost. Invest in your operations.

VALUE PROPOSITIONWhatisyourvalueproposition?Bepreparedtoshowyour partners in this business such as the insurer, your staff andtheconsumerexactlywhatyourvaluepropositionis.

BIPPERMostacknowledgedthevalueoftheBipper.Oneevensaiditis “worth a ton.” Use it!

ANTICIPATE CONSUMER NEEDS A protectionist view is not a sustainable model. To beforward thinking, you must anticipate what the consumer wants and needs. Insurance companies are already offering various forms of purchasing insurance (e.g., broker channel, direct arms, aggregators and affinity programs). Thesealternatives cannot be disregarded any longer for the broker channel to survive. I would encourage you to engage in identifying what your broker proposition is to the consumer. I would also encourageyou to invest in your technology and your succession plans. I strongly believe in the broker distribution channel and that we need to be proactive about our future by looking forward, not backward.

It has been my pleasure to serve as your associationpresident, and I look forward to my year as past-president. I am certain that Gerry Baert will represent the interests of the members with passion and great initiative.


Legal-Ease Sara Hart and Adam Ollenberger

continued on page 8

Insurers have specialized knowledge aboutthefinerpointsoftheinsuranceindustry, including the law that applies to the interpretation and application of insurance contracts. However, it is important that those working in the fieldofinsuranceremembertotaketheproper perspective on those issues when assessing matters relating to coverage and payment, and that they cannot necessarily rely on their specialized knowledge in the course of dealing with aspecificlossorcoverageissue.Thisstancewasrecentlyreconfirmedby the Supreme Court of Canada in Sabean v. Portage La Prairie Mutual Insurance Company. The plaintiff was awarded$465,000forinjuriessufferedin an automobile accident that occurred

in 2004. However, the defendants’ insur-ancepolicy only provided $382,000 in coverage.Theshortfallofapproximately$83,000wasthesubjectofanactionbyMr.Sabean against his insurer, pursuant to theSEF 44 endorsement (the “endorsement”)that he purchased along with hisautomobile insurance. At issue in this case was whether Canadian Pension Plan(CPP)disabilitybenefitsweretobededucted from amounts awarded under the endorsement. The insurer took the positionthatCPPdisabilitybenefitsconstituted a “policy of insurance” that was to be deducted from any amounts payabletoMr.Sabean. At trial, the Nova Scotia Supreme CourtheldthatCPPdisabilitybenefits

were not deductible from the amounts payable under the endorsement. It reliedon a decision of the New Brunswick Court of Appeal interpreting the same issueandexaminedthecontextoftheendorsement and the language of the policy, and ultimately held that CPP disabilitybenefitswerenotapolicyofinsurance. This decision was overturned on appeal.The Nova Scotia Court of Appeal held that,inthecontextofthedraftingofthe endorsement and the consequences of a Supreme Court of Canada decisionfrom 1973, Canadian Pacific Ltd. v. Gill, thatCPPdisabilitybenefitswereintended to be a policy of insurance that was deductible from amounts

IN THEIR SHOES Supreme Court:Insurers Cannot Rely on Specialized Knowledge in Interpreting Policies


[email protected]

SARA E. HART and ADAM L. OLLENBERGERare lawyers with

Dentons Canada LLP and practice in theprofessional liability insurance area.

[email protected]

continued from page 6payable under the endorsement. Itheldthatexcludingthede-duction would amount to double recovery, and that this wasimpermissible in the circum-stances. The Supreme Court of Canada overturned the Nova Scotia Court of Appeal. In doing so, it applied the framework for interpret-ing insurance policies recently set out in the decision of LedcorConstruction Ltd. v. Northbridge Indem-nity Insurance Company. As theendorsement is a standard form insurancepolicy, the court applied a two-step analysis to determine whether the interpretation of the Nova Scotia CourtofAppealwascorrect.Thefirststep requires interpreting the ordinary meaning of the terms of the contract ofinsurance, “as they would be understoodby the average person applying for insurance, and not as they might be perceived by a person versed in the niceties of insurance law.” It is only if there is an ambiguity in the ordinary language of the contract, from theperspective of an average person applyingfor insurance, that the second step, which requires resolving the ambiguity pursuant to the rules of interpretation for insurance contracts, applies. The court noted that the endorsement is a standard form contract of insurance that provides coverage for motorists who are injured by an underinsured tortfeasor, less any deductions prescribedin the endorsement. (A “tortfeasor” is a wrongdoer; an individual who commits awrongful act that injures another and for which the law provides a legal right to seek relief.—Ed.) There are nine sources ofdeductionsidentifiedintheendorsement,one of which pertains to “any policy of insuranceprovidingdisabilitybenefits.”The purpose of the endorsement is toprovide coverage where there is a shortfall in coverage, up to the limits ofindemnificationprescribedintheendorsement, in respect of damages that the insured is entitled to recover

pursuant to the principles of tort law.In determining whether CPP disability benefitswerepartoftheenumerateddeductions in the endorsement, the court considered the ordinary meaningof the term “policy of insurance” as referring to a private contract ofinsurance. This ordinary meaning excludedstatutorybenefitslikeCPPdisabilitybenefits.Thecourtnotedthatotherstatutorysourcesofbenefitsarelisted in the enumerated deductions and thatCPPdisabilitybenefitscouldhavebeen included in the list had the drafter intended. As such, an average individual applying for an endorsement would not know, based on the plain language of the contract, that CPP disability benefitsmightbededucted. The insurer relied on the Gill decision to argue that previous Supreme Court of Canada authority had established thatCPPbenefitswere,infact,akintoa policy of insurance. The court rejected this argument, chiding the insurer for“relying on its specialized knowledge of the jurisprudence to advance aninterpretation that goes beyond the clear words of the policy.” There was nothing in the policy that suggested the interpretation in Gill was applicable in the circumstances, and the average person applying for the insurance would not be aware of the particular contextand meaning of the Gill decision,which related to the deduction of CPP deathbenefitsfromanactionrelatingto

an accidental death claim. In that case,thecollateralbenefitsrulewas engaged because the CPP deathbenefitwasanalogousto the damages the plaintiff received, and double recovery would result from non-deduction. An average customer purchasing insurance would not be aware of

this jurisprudence or other historical matters affecting the drafting of the endorsement. The court concluded by noting that the interpretation advanced by the insurer was not reasonable, as the Gill decision was related to a differentinterpretivecontext.Inorderforthecourttofindthatapolicyisambiguous,the differing interpretations of the policy must be reasonable, and “[t]he mere articulation of a differinginterpretation does not always establish the reasonableness of the interpretation and does not necessarily createambiguity.” This decision reminds insurers to adopt the perspective of an average person when addressing coverage and payment issues, not the perspective of aspecialist in the area. Courts will notfavour technical or obscure interpretationsof policies where they would not be apparent to an average person. Ininterpreting and applying policies, it isimportant to focus on the plain languageof the policy independent of anyspecialized knowledge or interpretive tools that come with working in the business of insurance.

1 2017 SCC 7 [Sabean]22016SCC373 Sabean at para 13.4 Ibid at para 29. 5 Ibid at para 42.

... an average individualapplying for an endorsementwould not know, based on the plain language of the

contract ...


The Advocate George Hodgson

Due-Gooder How Your IBAA Membership Benefits You

thedeadlineto2019.Thisextensionsuggeststhatthereviewwill be more thorough than in past years. IBAA and IBAC continue to advocate on behalf of the property and casualty insuranceconsumertoensurethatfinancialinstitutionsremain prohibited from retailing insurance at the point of granting credit. Together, we have convinced the federal government to support this view in the past through several reviews of the Bank Act and are committed to maintaining this position in the upcoming review.WhiletheBankActcoversfederallyregulatedfinancialinstitutions, the Credit Union Act and the Alberta Treasury BranchesActcoverAlbertafinancialinstitutions(mainlythe credit unions and ATB). The amendment of the Credit Union Act under the Alberta NDP government raisedconcerns about pressure from a strong credit union lobby. Theissuecametoaheadlatein2016.Afterconsiderableletter writing and many meetings and phone calls, the AmendedCreditUnionActfairlyexplicitlyprohibitscreditunionsfromretailinginsuranceoutoftheirbranches.Whilewe appear to have won the battle on the legislation, westill have much work to do in the development of theaccompanying regulations. IBAA divides advocacy into two parts: political andregulatory. On the regulatory side, the association spends considerable time and effort working with the Alberta

ith another winter behind, I hope that the fireandfloodseasonsarenottooharshandthat the spring is kind to our farmers as they seed 2017’s crop. New beginnings are also the order of the day at IBAA, with new

PresidentGerryBaert,soon-to-be-electedexecutiveandboard members as well as and new faces in the office. Some of you might remember Karen Bushie, who is returningas IBAA’s producer. Karen will be visiting many IBAA membersandnon-membersoverthenextfewmonths.Tracy Harty is our new professional developmentfacilitator and will be teaching many of our licensing and CAIB courses. At IBAA, spring also means membership renewal. As member brokerages receive their dues invoice, I’d like to remind everyone what the association has been doing to benefityou,IBAAmembers.

Government Relations IBAA, its sister associations and Insurance BrokersAssociation of Canada (IBAC) are some of the oldest and most effective government advocacy associations in Canada today. In fact, the association was founded to develop a strong, united voice in advocacy efforts for independent property and casualty brokers. The other departments in IBAA later developed to round out the support IBAA provides brokers. Having your own government relations department—advocating for you on legislation, licensing/regulations and issuesintheinsuranceindustry—isanintangiblebenefitthat is difficult to monetize and might be overlooked. Whenitisdonewell,manydonotnoticeit.However,when it is not done or not done well, it is very much missed. The association’s government advocacy regarding the federal Bank Act and the provincial Credit Union Act continues to resist the pressure from banking institutions to allowinsurancesalesatthepointofgrantingcredit.Whilethe association has several issues with such sales, the real argument focuses on consumer protection: those seekingcredit should not feel pressured to accept the banking institution’sinsuranceandshouldbeencouragedtofindthebestinsurancetofittheirindividualneeds.TheCanadianBankActwasscheduledforitsfive-yearreviewyearin2017,buttheTrudeaugovernmentextended


Insurance Council (AIC) and the Office of the Superintendent of Insurance. MostofIBAAefforthasfocused,withlimited success, on working with the AIC in the all three levels of licensing.IBAA continues its efforts to get the overall provincial pass rates much higherthanthecurrent20%–35%range. The unacceptably low pass rates have become a barrier for those folks wanting to enter the P&C insuranceindustry—particularly frustratingconsidering that the insurance industryis one of the few industries in Alberta looking for new people. A number of Insurance Act regulatorychanges are currently working their way through the system, the most important of which involves allowing the Canadian Accredited Insurance Broker (CAIB) and Chartered InsuranceProfessional (CIP) designations to beconsidered equivalencies to thelicensingexams.IBAAhasundertaken

Beatlesfitthesituationbetter:“Iamhe as you are he as you are me / And we are all together” (I Am the Walrus). At IBAA, we strive to offer courses and methods of development that will make the mandatory nature of therequired15hoursofcontinuingeducation more palatable and put you at the top of your game.Whateveryourmotivationforprofessional development, IBAA offers an increasing variety of immersion and online courses, seminars, webinarsand in-house formats to meet a variety of education needs throughout the province, for brokerages large and small.Whilemanybrokersstillliketoreceivetheir professional development throughseminars and webinars, other online offerings are becoming increasingly popular and offer a variety of tools that bridge the differing shortfalls of both online and in-person courses. In

considerable effort, and continues to advocate, to get this regulatory change approved by the cabinet.Whetherlobbyingonthepoliticalorregulatory fronts, government relations always involves hard work, patience and resources to ensure that theinsurance consumer and the industry is well served and protected.

Professional Development High quality professional developmentis key to the success of both the individual broker and the broker industryasawhole.AsanextensionofIBAA’s founding advocacy principle, theprofessional development department is designed to strengthen independent brokers and serve member-broker needs.Afieldofdreamsforothereducation providers might be motivatedby the phrase “If you build it, they willcome,” but IBAA is a member-driven association. Perhaps lyrics from The continued on page 12


GEORGE HODGSONCEO, IBAA

[email protected]

addition to methods of delivery, IBAA continues to update the topics ofcurrent offerings and develop new ones.Asignificantbenefittomembers,aside from the superior quality of the courses, is the member price. The member discount ranges from 40 to 50percent.Here,onecancalculateinreal dollars the value of a membership in IBAA. IBAA, along with its provincial counterparts, offers professional designations through IBAC: CAIB (the Canadian Professional Insurance Broker), CPIB (the CanadianProfessional Insurance Broker) and CCIB(theCanadianCertifiedInsurance Broker). These designations, which enhance both the professional abilities and the image of the insurancebroker, are recognized across Canada andaredesignedspecificallybybrokersforbrokers.Theexamsneededtocomplete these designation courses areofferedinAlbertaexclusivelybyIBAA.Whileanumberofprovidersoffer the course materials, IBAA has developed inventive, effective and practical methods of delivery. IBAA’s education advocacy and materialsreceivesignificantsupportthrough membership in IBAC. IBAA continues to work with IBAC to updatethebrokerprofile,anationalprofileofcompetenciesfortheIBACtextbooksthatalsoaffectsourargumentsabout licensing requirements with the AIC. IBAA is currently working with IBAC to update CAIB and theFundamentalsofInsurancetextbooks.This effort has increased over the past year or so and should see results fairly soon. The professional designation programs are a fantastic way to get continuing education credits whileincreasing your professional status at the same time. Hopefully, soon you will be able to use CAIB to get licensed as well! Given that Alberta is currently the only province to require a separate

LicensingLevel2textbook,IBAAbitthebulletwhenAICchangeditsexamanddevelopedatextbookinunderayear. The need was pressing forassociation members who were being held back, so this project overtook many other planned initiatives.

E&O Insurance and OtherBusiness Boosters Through Sage, a wholly owned IBAAcorporation,IBAAexclusivelyoffers its members errors and omissions (E&O)insurancethroughSwissRe/Westport.One of the most comprehensive E&O insurance for brokers in the business, it is offered to IBAA members at a very competitive rate. For those largerbrokeragesthatrequireexcessE&Obeyond what Swiss Re is able toprovide, IBAA offers a competitivesolution through Pirbright Professions.IBAA also offers a slew of affinityprograms that offer member discountsor are available only to member brokers.From support for office and insurancetechnologiestofinance,staffing,promotions and more, these business boosters help members save money. Details can be found on the membersonly page of ibaa.ca.

The Broker Identity Program The Broker Identity Program, also known at the BIP or the Bipper, is the association’s insurance broker symbol. It was developed in 1989 as a registeredtrademark to differentiate association brokers from other insuranceprofessionals and to reinforcerecognition of the insurance broker

profession among consumers. The BIP symbolizes quality insurance, advice and advocacy for the insurance consumer. Over the past few years, IBAC and many sister provincial associations havebeen further enhancing the Bipper’s image with the ongoing involvement with the Insurance Goal of the Game. IBAA,alongwithitsWesternCanadian sister associations, has teamedupwiththeWesternHockeyLeagueandWawanesatoshowcasethe Insurance Goal of the Game throughoutWesternCanada. As well, IBAA and IBAC have separately purchased radio, billboard andotheradvertisingdesignedspecifi-cally to drive insurance consumers to those brokerages displaying the BIP. IBAC’sfindabroker.caadcampaignpoints Alberta consumers to IBAA’s consumer web page that contains a proximitysearchformemberbrokers.

Other Intangible Benefits There are several other IBAAmembershipbenefitsthatarehardtoput a dollar value on but as the saying goes,are“priceless.”Membersexperienceapositivesenseofbelongingto a group of professionals withcommon goals and aspirations. IBAA promotes the perpetuation of the broker channel that continues to serve the best interests of consumers, even in this increasingly online-driven market. Reflectingthewaythatinsurancebrokers serve the best interest ofconsumers, IBAA also advocates on behalf of all insurance consumers. Last but not least, there is the camaraderie with peers (we CAN be a fun group and there is no shortage of “characters”).Haveaveryrelaxing,majorinsurance-event-free summereveryone!

continued from page 11

95 SERVICE LOCATIONS ACROSS CANADA

Calgary .............. 403-294-0005Cold Lake .......... 780-639-3477Edmonton .......... 780-488-8854Grande Prairie ... 780-568-4402

Lethbridge ..................... 403-331-0001Lloydminster/Lakeland .. 780-874-1000Medicine Hat/Brooks ..... 403-548-7737Red Deer ....................... 403-986-9627


Who? What? Where? Michele Hammel

BROKER NEWS•CentreStreetInsuranceopeneda new office in Okotoks. •SharpInsuranceacquiredRogers Insurance Group Home and Auto. •WilsonM.BeckandBellDavidson aligned their operations and now work out of the Bell Davidson office. •ManaginggeneralagencyO2 Insurance Services Inc. announcedtheappointmentofKarenMcGeeas senior vice president, chief operating officer. •CostenInsuranceopenedaChinook and Crescent Heights branch. •WesternFinancialGroupwas acquired by Trimont Financial Ltd.— asubsidiaryofTheWawanesaMutual Insurance Company. The brokerage will continue to operate underWesternFinancialGroup.

MOVERS & SHAKERS•LisaMathisonmovedfromTSG Insurance & Financial to Reliance Insurance.•ShannonDriscoll,formerlyof Alpine Insurance & Financial, joined Allegiant Insurance Corporation.•KarenSullivanisnowwithAlpine Insurance & Financial.•BruceBartonjoinedLundgren&Youngasanaccountexecutive.•RyanCushnerisnowamanaging partner at Centre Street Insurance. JoniNordin,vicepresidentof marketing for HUB International, will temporarily cover Ryan’s vacant area manager role.•DanaDuncanstartedainnew branch manager position at HUB International.

CELEBRATE•CongratulationstoRussellMcWilliamofLIVEFREEInc. on the birth of his son, George, andLindsayKnightfromWFGOkotoks on the birth of her daughter, Lydia.•Happy50thbirthdaytoLeon Oosterhoff of All Service InsuranceBrokersLtd.—February6.•HappyanniversarytoDavidMatthewsfromRogersInsurance —22 Years!

COMPANY NEWS•MarilynLochanofIntactInsurancewillberetiringinMayafter40years in our industry. •KathyBoychukwillassumetherole of CEO at Peace Hills Insurance inMarch.PeaceHillsalsoselected Ajay Tellis as its new CFO; he joins Peace Hills from CAA Insurance (Toronto).•LinhTruongisbackunderwriting for commercial insurance at Peace Hills after returning from maternityleaveinJanuary.

CONDOLENCES•MurryPowell,formerbranchmanagerofGApassedawayJanuary30th.

PARTNERS, CHARITIESand PROFESSIONALORGANIZATIONS•OnJanuary26,WICCcelebrated another successful year with a luncheon featuring comedian Dave Nystrom. •RogerLestusofCrystalGlassretired effective February 24.

•FixAutoLethbridgemergedwithDavisGMCtobuildanewbodyshopthatopenedonFebruary6.•OnWednesday,February15,2017, the Society of Fellows of Southern Alberta hosted another of its speaker luncheons. The guest speaker was BillAdams,vicepresident,WesternandPacific,fortheInsuranceBureau of Canada, who presented his annual industry update. Of prime importance were his discussions about affordable auto insurance in Alberta and lessonslearnedfromtheFortMcMurray catastrophe.•Thesociety’snextluncheonwillbeonWednesday,March15,2017,featuringguestspeakerMs.NilamJetha,superintendentofinsurancefor the Province of Alberta. Thank you to all who provided news and information!

[email protected]

MICHELE HAMMELRegional

Operations DirectorIntact Insurance Company

Email: [email protected]

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GOOGLEtheFUTURETechnology has changed the way the insurance industry does business, and we’ve only scratched the surface of change.

At the 2017 IBAA convention, Google Canada’s Fab Dolan will deliver a keynote on how technology is redefining possibility.

by Annette Hubick

“Change is the law of life. And those who look only to the past or present are certain to miss the future.”

—John F. Kennedy


20 The Alberta Broker April – May 201720 The Alberta Broker April – May 2017

F

AB: You’ve risen quickly to a top position in one of the world’s most influential organizations; to what do you attribute your success?

FD: Mydad.Longago,Iwasoffered a contract job as a marketing coordinator(forcontext,givingupafull-time department head role) at this fast growing but still unknown to me tech company, and he was the one who convinced me everything good in life came from taking risks and that failure wasn’t something to be feared.

AB: What do you enjoy most about working for Google?

FD: The people. Free snacks and nap pods are great, but you’re a product of the people with whom you surround yourself. I am lucky to be surrounded

by brilliant people who are all trying to change the world.

AB: How does online marketing differ from other forms of marketing?

FD: Since the dawn of marketing, we have been trying to get the right message to the right person at the right time. Until recently, as much as we wanted to believe that was possible, it just wasn’t. The simple fact was that the tools at our disposal were, at best, bluntproxies.If you were a car insurance company,

you would advertise in a car magazine in the hopes to reach car insurance shoppers, knowing full well that many of those readers were not in the market for a new car or new insurance policy. Digital is the scalpel to traditional

marketing’s hammer —it provides

much better signals that a customer is looking to buy your product. Searching for car insurance, reading an insurance FAQ page, choosing to watch a car insurance video ad, these are all far better signals that someone is interested in your product. And while the hammer is still a useful tool, the scalpel makes us far better at our jobs.

AB: What would your advice be for those businesses that are debating about the benefits of adapting their business model to the digital space?

FD: Myadviceisstarttoday(oryesterday if that’s possible). Digital is the reality of our times. Each of usasconsumersalreadygetsit.Weentertain ourselves online; we shop

continued on page 22

ab Dolan has established himself as one of Google’s bright young minds since joining the company in 2012 as its small business marketing manager. Two years ago, Dolan was promoted to Google Canada’s head

of marketing. He leads a team of 20, responsible for marketing all Google’s consumer and business products. At work and in his talks, he draws on his experiences as a (reformed) traditional brand marketer on iconic brands such as Cheerios and Green Giant, as well as those of the cutting edge digital agencies, start-ups and engineers he meets regularly. Dolan is a TEDx speaker, a regular guest lecturer at some of Canada’s top universities and in 2014, was one of MarketingMagazine’s “30 under 30.”“If I’m honest, the MarketingMag.com recognition was

humbling, and I still feel like they made a mistake (don’t tell them please),” says Dolan. “In truth, the honour was a reflection of the brands I had the opportunity to work on. Growing General Mills’ LifeMadeDelicious.ca (one of Canada’s largest consumer goods content marketing

programs), bringing to North America YouTube FanFest (the largest live show of its kind in the world), and launching Google Pixel (the largest campaign in Google’s history—these are the things I look back on and can’t believe I got to work on. More than anything though, our recent launch of Go North, an initiative to help Canada’s start-ups, is work I’m most proud of. Sure, it’s good for Google

to have a vibrant tech ecosystem in Canada, but as a Canadian who just happens to be at Google, I’m thankful I can spend my time working on initiatives like this that help our country thrive economically.”Born in Sao Paulo, Brazil and

raised in Aurora, Ontario, Dolan is a graduate with honours of The Richard Ivey School of Business, at Western University, where he also served as president and CEO

of The University Students’ Council. He currently resides in Toronto, which is where the company is headquartered and from where he took the time to speak with The Alberta Broker to give our readers a glimpse into the 2017 IBAA convention’s keynote speaker.

“The web is where we work, shop and play. The penalties to businesses who are not

there are massive.”

The Alberta Broker April – May 2017 21The Alberta Broker April – May 2017 21


online; we learn online; we connect online.WedoEVERYTHINGonline. Then for some reason as business leaders we make decisions—in particular in marketing and customer service—that are straight out of1995.Ourbehaviourasconsumersshould be telling, and so while I could listthemanyindividualbenefitsofadapting to the digital space, just look at your own personal behaviour and you’llunderstandthatthebenefitisthis: the web is where we work, shop and play. The penalties to businesses who are not there are massive.

AB: How does Google marketing differ from other online marketing platforms and strategies?

FD: Whendeliveringtherightanswer to a user, knowing a bit aboutthatuser,theircontextandtheir intent is critical. There’s a big difference between searching for “fast food near me” at noon on a desktop computer at work and typing that exactsamesearchat3AMonyourphone.Despitetypingtheexactsame query, I’m sure you can imagine howeachuserwouldbenefitfroman entirely different answer. After nearly two decades of improving the way it serves up answers, Google is far better at understanding the intent (whatsomeonewants)andthecontext(factors like weather, type of device, location) than other platforms. In many cases, the right answer is an ad for a product or service, and so marketersbenefitfromworkingonaplatform that truly understands when and where to place their ads.

AB: With “insurance” being the most expensive “cost per click” (CPC) Google search word, how can insurance brokers make sure those clicks convert to revenue?

FD: Moreoftenthannot,Ifindthat CPC is actually a red herring for the average business. If I told you aclickonyouradwouldcost$50,depending on the business you might considerthatexpensive.However,ifItold you for every person who clicked on your ad, you would make $100, suddenly that looks like a licence to printmoney.Mostbusinessownerswould happily take that deal, I’m sure. So when we focus on something like the cost of a click, we’re not measuring what we should be measuring: business outcomes. Therefore, my advice for all

businesses is to focus on their real business metrics. Perhaps you are trying to drive new leads. If so, you should be measuring not only how many people click on your ads, but howmanyofthosefilloutaform,giveyou their email address or click to all. These, together with CPC, will give you a far better view of how your ads are working for you.

AB: A typical insurance brokerage is an eight-person small business operation. How can it effectively compete for search rankings?

FD: Being found online is all about creating the right content for your audience. If you think about it, search engines are just trying to do right by their users (read: your customers) by serving up answers to queries. Rather than trying to “game” search algorithms, every business, big and small, should focus on creating content that best answers the questions a customer might ask. Whetherit’savideocomparing

home insurance options, a FAQ page about car insurance claims or something as simple as an up-to-date online business listing, these are all just great answers to questions your customers are asking search engines every day.

AB: What would you say is the most underutilized Google marketing tool, especially by small businesses?

FD: ByfarGoogleMyBusinessis the most underutilized tool every small business should consider as part of their marketing strategy. Those listings are the easiest way to be found on Google and allows you to broadcast your your address, hours of operation, phone number, show pictures of your business and many other vital pieces of information your customers are looking for.

AB: What trends do you see in the digital space that will affect the way businesses do business in the next five to 10 years?

FD: Weliveinfascinatingtimes.From medicine, to robotics, to energy andsomanyotherfields,we’remakingtechnological progress in a timespan of years that make past decades and centuries pale by comparison. For the average business though, it is advances in (and the combination of ) mobile computing, cloud computing and machine learning that are truly transformative. Suddenly, the size of your capital accounts no longer determine winners and losers across industries.Overthenextdecade,the ability to reach customers in any corner of the globe, the scale to put vast networks of computers to work for you and the sophisticated algorithms of the world’s brightest engineers will all be available to the smallest of businesses, often as a service no more complicated than the way many of us think about our phone bill.



A dozen random questions to ask Fab Dolan ?

1 Favourite holiday destination? France2 Something that people would be surprised to learn about you? My full name is not Fabio.3 What’s tops on your “bucket list”? Swimming with whales.4 Favourite activity? Cuddling with my 130-pound Newfoundland dog, Zoe.

5 Favourite tech item? My Google Pixel, of course.6 Guilty pleasure? Anything Haagen Dazs 7 What would you tell your 20-something- year-old self just starting out in your profession? Focus on learning, never on salary.8 Past time/hobby? Running.9 Favourite quote? “Never get comfortable” (Ironically from a clothing company in the U.S.)10 Person, dead or alive, whom you’d like to meet? What would you ask him or her? Steve Jobs. “They have to be kidding with all these dongles, right?”11 How did you choose your insurance provider? Online search :)12 One thing you think would improve your experience with your insurance provider? Mobile friendly website.

Wednesday, May 10






Tips to HelpRELUCTANT NETWORKERS

Make Connections That Pay Off

Does your idea of “networking” involve nursing a drink in the corner while your more gregarious colleagues mix, mingle, wheel and deal? Whether you consider yourself an introvert,

socially awkward or just a networking newbie, fear not.

Here are 10 tips to help you connect more confidently.

—by Alaina G. Levine

10

We all know people who can walk into a room full of total strangers and walk back out

with a group of new best friends. They’re the kings and queens of conferencesandmixers.Ateverynetworking event, they make small talk and introductions look easy while you nurse a drink in the corner and limit your conversationsto people you already know. (Frankly, you’d rather visit the dentist or file your taxes thanapproach a total stranger topromote yourself and your brand!) If this sounds all too familiar, I assure you that you aren’t alone. I promise that there is a way for you toconfidentlystepoutfrombehindthe potted plant you’ve been hiding behind. I understand that networking is a part of professional life at which many introverts from allindustries tend to stall, and I’m here with a plan to help you navigate those uncharted social waters. In today’s connected world, the ability to collaborate and innovate with others isn’t a nice skill to have—it’s a must-have. No matter how experiencedortalentedyoumaybe,you’ll never be able to fully leverage yourtechnicalexpertiseifyouareunable or unwilling to make mutu-allybeneficialconnectionswithotherprofessionals.”

Here are10 networking principles that will help you to network productively and(relatively) painlessly:

Look for positive partnerships. Don’t think of networking as schmoozing or something slightly sleazly. Successful networking is about crafting win-win partnerships that bring value to both parties—it is never abouttryingtoextractsomethingfrom someone. Approach networking

with the fundamental idea that you areseekingtofindoutwhatpeopleneed or what problems they have that you can help them with. Right off the bat, this will help you shed your re-luctance to approach others with your projects and ideas.

Look at networking through a new lens. For many people, networkinghas a place on the “dreaded chore” list right up there with cleaning out the gutters. Others erroneously think that networking takes time away from the outputs associated with success in your profession. But it’s important to see connecting with others as a positive activity that advances your success and that’s even (gasp!) enjoyable. Think of it this way: It is always a privilege and an honour to have the opportunity to discuss topics that youand the other party are passionate

about. So take pleasure in the gift of meeting new people and seeingwhat can come from the new exchange.

Keep the conversationpositive.Whenyouarenetworkingandyoumeetsomeoneforthefirst

time, discuss only positive topics and steer clear of potentially controversial topics like politics and religion. You want to make a good impression and ensure that your new contact equates you with happy thoughts.

RSVP to professional events with a “yes.” You might not always feel likeattendingmixers,receptionsandconferences. (Let’s face it: sometimes, yourNetflixqueueandabowlofpop-corn seem much more enticing.) But unlessyouhaveacompellingexcusetostay home, go to these professionalevents anyway. Don’t limit yourself to industry events, either. Be on the lookout for get-togethers hosted by your alumni association or regional chapter, local charities or other organizations for



Let’s face it: sometimes,your netflix queue and abowl of popcorn seemmuch more enticing.


As you network, be open to connecting with people who are not in your industry or who seemingly don’t have anything in common with you.Remember,thesixdegreesof separation theory says that we are connected to every other person on the planet by nomorethansixdegrees—and it’s surprising how often it’s proven to be true! For instance, there’s a very large chance that you know someone who knows someone who knows the head of operations at a company with which you’d like to do business. Additionally, you never know what information you are going to learn until you engage someone in conversation. By networking, chances are you will leave with ideas and inspiration to solve your problems or navigate your career in novel ways. This has happened to me many times!

Give yourself a goal. If the very thought of networking makes you want to crawl under a rock and stay there (hello, introverts!), make ityourgoaltoreachouttojustfiveor10 people a month with whom you would like to build a partnership.

continued from page 29which you volunteer. And don’tstress about having an openingline when meeting new people.Justwalkuptosomeoneandintroduce yourself. The moreyou do this, the easier it gets—I promise!

Keep some business cardsin your wallet at all times.Why?Youneverknowwhoyoumight meet at your friend’s birthday party, the neighbourhood potluck or your cousin’s wedding. For that matter, you never know who you might sit nexttoonyournextflight!Whilethefocusofsocialeventsand everyday interactions isn’t usu-ally on business, it’s always wise to be prepared in case the conversation does veer in that direction. On a similar note, do carefully consider the way you dress and behave when you’re off the clock, as people are always watching and making decisions about your brand. Perception equals truth in the minds of the public.

Enjoy yourself—to a point. Yes, there’s a reason why alcohol hasa reputation as a “social lubricant.”It can help take the edge off your nerves, which often comes as a welcomereliefatnetworkingevents.Justwatchyour intake—limit yourself to one small drink, or only a few sips.Remember your ultimate purpose. You are there to network, not to get drunk.

Find a fun new group—andkeep your eyes peeled foropportunities. Are you feeling a bit bored by your regular routine? Consider joining new clubs or taking classes in subjects that interest you. Any aggregation of peo-ple presents an opportunity to make new friends and to network. And since you are all engaged in an activity that you enjoy, everyone will be in a good mood and more open to making and solidifying connections.

Use social media to be socialand to network. In between posting pictures of your family’s activities and sharinginteresting articles, don’t forget to keep up your networking momentum by contributing value to professional conversations on social media sites like LinkedIn, Facebook, and Twitter.Explorethesesitesindepthandunlock their hidden potential. For example,takeatouroftheunderused“findalumni”featureonLinkedIn.You might be surprised by how many alumni are in your region or industry.Sharing an alma mater will likely make these individuals more willing to connect with you.

Be open to connecting with-friends of friends and theirfriends, too!

Hidden, gamechanging career and

business opportunitiesare everywhere, butthey won’t magicallyreveal themselves.


Whetheryou’rereachingoutviaemail, LinkedIn, or in person at an event, introduce yourself and ask for an “informal discussion. Let them know why you want to meet with them—namely, that you are interested inexploringtheopportunitytocollaborate and contribute to their team or business. That’s all you have to do—and you’ll be amazed at your success! Hidden, game-changing career and business opportunities are everywhere,but they won’t magically reveal themselves. The only way to accessthese clandestine gems is vianetworking.Mostpeoplefeelthattheylacktheconfidencetonetwork,which gives you a distinct advantage if you do. And trust me—making fruitful connections really does get easier with practice.

About the Author Alaina G. Levine is the author ofNetworking for Nerds as well as a speaker, comedian, career consultant, writer and entrepreneur. She is president of Quantum Success Solutions, an enterprise dedicated to advancingtheprofessionalexpertiseofboth nerds and non-nerds alike.

To learn more, visitwww.alainalevine.comor follow @AlainaGLevine.


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PYIB Perspective Jonathan Brown

ur world is advancing at an incredible pace. Things that seemed impossibleten,fiveor even two years ago are now becomingcommonplace. One thing that allof these advancements have incommon is that they are all theresult of someone’s vision andthe drive to make it a reality.These people are the reason forour world today. They are the difference makers that are shaping our tomorrow. Whoarethedifferencemakersthatyou know? Are they people that you work with or spend time with, or are they people that you admire but may notknowonapersonallevel?Whatmakes them special? Are they different than the average person? If so, how do they differ?

Weallknow,orknowof,peoplewhom we consider to be differencemakers—whether they are people wework with who always seem toaccomplish the impossible, a sports

figurewhomakestheteambetterorbusiness or world leaders whocommand the respect of peers for their achievements. Difference makers are all around us. But what about closer to home? You are a difference maker too. The questionis: what kind of impact would you like to have on your world? One of my favouritequotationsisfromMahatma

Gandhi,whosaid,“Webutmirrortheworld. All the tendencies present in the outer world are to be found in the world of our body. If we could change ourselves, the tendencies in the world would also change. As a man changes his own nature, so does the attitude of the world change towards him. This is the divine mystery supreme. A wonderful thing it is and the source of ourhappiness.Weneednotwaittoseewhat others do.” To paraphrase, “Be the change that you want to see in your world. Change starts with you.” Brokers, like everyone else, impact their world, in good ways and bad. Thepublic relies upon us to care for their most precious possessions. Our abilitiescanhaveasignificantimpactontheoutcome of their future.

I have found my involvementwith our association to be one of

the most positive things that I have experiencedinmycareerasabroker.


So what can we, as brokers, do to have the kind of positive impact on our world that we should? Start with being thebestthatyoucan.WhilethepastU.S. Army slogan “Be All You Can Be” has become somewhat cliché in its 20-plus year reign, it draws on a basic prin-cipleofself-actualization.Weshouldnever stop learning and applying what we learn. Part of becoming our best selves is a commitment to educating ourselves and, where possible, educating others.Weoftenlearnthemostwhenwe take the opportunity to mentor someone else. Learn your business, and help others learn it too. Another way to be a difference maker is to get involved, whether for your own self-development or for that of others’.Choose how to spend your time: pick up a book instead of the remote or getsomeexerciseinsteadofasnack.Choose to take care of your mind and body. Get involved in your business. Show your commitment to your career and broaden the horizons of yourprofessional knowledge by obtaining a designationinyourfield.Getinvolvedin your industry through our broker association. IBAA and PYIB tirelessly promote the broker channel through educational courses, legislative lobbies, provincialexaminationpreparationand much more. Each of us who works at a brokerage affiliated with IBAA is automatically a member, and those of us who are aged 39 or under are also membersofPYIB.Wehavetheopportunity to attend local council events,tocastavoteattheAGMor volunteerourtimetofillanassociationposition or participate in community outreach. I have found my involvementwith our association to be one of the most positive things that I haveexperiencedinmycareerasabroker.AsaPYIBboardmemberforthepastfiveyears, I have had amazing opportunities to connect with other brokers andindustry professionals that I would never have had if I had not gotten involved in my industry. I challenge all of you to step out and step up in the difference you make. As

JONATHAN BROWN,CAIB

[email protected]

our world continually evolves, we must impact it for good. By becoming more aware and showing your appreciationfor the difference that others aremaking, you will impact their lives. By looking for ways to grow yourself, you will make a difference in your life. Lastly, by becoming the best you can be in your profession, you will make a difference in the lives of those that you serve.

Iamexcitedtoseethedifferencethatyou will make and look forward to a brighter future because of all of you.

When students and insurance professionals decide to take a CAIB course, they have already started in the right direction. Afterthatfirstdecisioncomesaslewofothers,oneofthefirstbeinghowtopreparefortheexam.Thetwomainavenues for attaining your CAIB are online and in-person courses, but how to choose? Here’s a little light to help you see the difference between the two, but in the end your lifestyle and learning style will help you pick which optionisyourbestfit. The future is coming! The future ishere!Everysci-fimoviefromthe’90sseemsalittlelessfictionalnowwithvideo calls, tablets and Internet access whenever you need it and wherever you want it. Everything seems to beonlinenow:movies,TVshows,instructional videos, banking, stock trading, communication, photo sharingandthelike.Whydoesonlineaccessholdsuchanappeal?WhyisNetflixdesired by so many? Because of the convenience. Because you just have to unlock your phone and open your Internet browser while waiting for the bus. Because you have an active lifestyle and can do your banking after yoga class. Because you just need to open the YouTube app to watch a funny cat video on your break at work. Because you need to check and trade your stocks but don’t want to get out of bed. The online CAIB prep courses follow this trend.

Online courses are the way to educateyourself without the compromises of in-person classes: taking time off work, missing meetings, travelling to another location and incurring the costs of travel that are not only monetary but temporal as well. IBAA’s new professional developmentpartner Ensure Training is a newprovider that makes taking an onlinecourse even more convenient and robust.Withtheweeklyvirtualclassroomclasses, the gap between traditional face-to-face classes and traditional on-line classes starts to close. Additionally, if you miss a class, you can download and listen to it on your way to work. You can get an email reminder to stay on-task. You can use any device with an Internet connection to access your virtual classroom and study support. Online courses allow people to increasethe number of activities they can undertake in a day depending on their lifestyle.Youcanfitthevideosandthecontent of the course into your schedule insteadoffittingyourschedulearounda course. Think of Betty. She is a single mother.She gets up, gets breakfast ready for her child, wakes, dresses and feeds the child, takes the child to school and then has to go to work herself. After a full day of work, Betty must pick up her child from daycare, feed the child again(because apparently they need to be fedfrequently) and then read or play with the child (because apparently they need

interaction with their parents). Finally, Bettyputsherchildtobed.WhendoesBetty have time to leave her child to attend a course that is in another city? She doesn’t. Now Betty has enrolled in an online course. Betty knows the timecommitment she has to the course, so shefindsbitsoftimeinherschedule.Whenshehasherlunchhouratwork,she watches her downloaded video. After Betty puts her child to bed, she finisheswatchingthevideoandtakesaquick quiz to ensure she is understandingthe material. Betty completes her CAIBcourse and still maintains her lifestyle. Betty doesn’t have to disrupt her life or her child’s life in order to further her career. Granted, online virtual classrooms are not the be-all and end-all of education.A study of “Live Lecture versusVideo-RecordedLecture”undertakenbyS.Cardall,E.KrupatandM.Ulrichshows that “Live attendance remains the predominant method for viewing lectures.However,studentsfindaccelerated, video-recorded lectures equally or more valuable.” Technology cannot yet completely eliminate the traditional classroom, but the gap is closing. One of the biggest reasons students prefer face-to-face classes is physical contact with the teacher and fellow students. Research

Professional Development Denise Gittins

CAIB CoursesIn-person or Online?

continued on page 3634 The Alberta Broker April – May 2017



showsthat75–93percentofcommunication is nonverbal (the expressionsthatgoalongwithwhatthe speaker is saying, how the person is standing or gesturing or even your expressions).Maybeyou’resittingintheclasswithapuzzledexpressiononyour face but you’re not comfortablewith putting up your hand. The instructormayseeyourexpressionand decide to ask if anyone has any questions. Now you have the perfect chance to put up your hand!Whileonlineclassesarebountifuland offer many options, the independentlearning route is not necessarily foreveryone. Taking online classes requiresa certain level of self-discipline. You need to set aside X number of hours perweek to study your CAIB material and then do it. In a traditional classroom, you have a certain amount of ingrainedaccountability. The teacher you have met and the other students you have startedrelationshipswithexpectyouwill show up to class again. Thisaccountability pushes you to go to class and continue with your learning.

Finally, face-to-face classes arebeneficialinthattheinsuranceindustryis a face-to-face industry. First of all, a classroom setting facilitates networkingwith other people in the same industry as you. Networking is possible in anonlineclassroom,butsomepeoplefindit easier to network in person because such contact is what they are practiced at doing. Secondly, when working in the insurance industry you will need to interact with clients. In a face-to-face classroom setting, you may get the opportunity to practice and role play withpotentialclients.Whileyouwillundoubtedly have some tech-savvy clients who have no interest in coming to see you and prefer to interact with you online as much as possible, you will also have clients who want to see your friendly face. Here you can put your classroom role play practice into action! Taking your CAIB courses in an online class or in a classroom both have pros and cons. The point is, you have access to both solutions. They are both good options, but you must choose theonethatbestfitsyourlifestyleandyourlearning style. If your schedule is too hectic for you to travel to attend a class

every week for the duration of a course, or the added costs of travel are more than you are willing to spend, thenonline learning is a good option for you. If you are someone who needs the schedule and accountability to your teacher and your peers to ensure you complete the course and you feel your learningbenefitsmorefromface-to-faceinteraction in the classroom, then taking the course in a traditional classroom is better for you.

About the author

Denise Gittins is the education director of Ensure Training & Education Ltd., one of IBAA’s online CAIB providers.For more information: [email protected] ensuretraining.ca twitter.com/EnsureTraining facebook.com/EnsureTraining



Did You Know...42% of Canadian adultsbetween the ages of 16 and 65 have low literacy skills?As we know literacy and readingcomprehension are important skills to have in an insurance brokerageworkplace. This may be an area to perform some additional testing prior to hiring to ensure that your employees have the skills they need to be the best performers in your business.(statscan.gc.ca)

Researchers at theAustralian NationalUniversity have created a tiny device that displays high-quality holographicimages? It may be in the near future that we will see holographic imagesbeing used in everyday life. This

development could have wide-sweepingimplications for marketing and promotionaswellasthescientificcommunity.Wouldn’t it be cool if your brokerage could send a holographic moving image to your clients? (livescience.com)

There is a company calledMassUp that has someinsurance tech we may beseeing in the future?MassUp, a German startup company, uses Application Program Interfaces (APIs) to connect insurers to retailers so that people can quickly and easily add coverage to new purchases. We are seeing more and more insurance and technology companiesfocusing on insuring individual items. Could this be the wave of the future fortheCanadianmarkettoo?(fintank.net/2016/10/19/massup-insurance/)

“Did You Know” compiledby Rikki McBride.

The IBAA AGM isno longer part of the IBAA Convention? We are moving to a virtual AGM that will be conducted via webinar on April 26th at 9:00 a.m. In order to participate from the comfort of your computer, please register on the IBAA website. Be engaged and help set the direction for your association.(ibaa.ca)

IBC Insight Bill Adams


Fixing AlbertaAuto Insurance

From 2004 to 2012, Albertans enjoyeda stable auto insurance system that providedgoodbenefitsatreasonableand stable premiums. But developmentsinthepastfiveyearshaveunderminedthe sustainability and affordability of auto insurance in the province. Claims costs have risen at an unsustainable rateand,ifunchecked,couldsignificantlyaffect affordability, something that wouldcause difficulty for many Albertans already facing challenges as a result of a sustained economic downturn. The good news is that we know what is contributing to these increased costs and have developed recommendations for the government to address the underlying problems. Our industry’s collective challenge is demonstrating to the government the underlying issues driving increased costs and the changes needed to return to a sustainableauto insurance system.

Prior to 2004, premiums rosedramatically and Alberta auto insurancewas in crisis—nothing like the stabilitythat came with the reforms of that year. In 2004, the Alberta government introduced a cap on pain and sufferingdamages for minor injuries as well as pre-approved treatment protocols. This system provided prompt, science-based medical attention and reason-able compensation for those injured in auto collisions, while balancing costs. In doing so, this stabilized premiums for consumers. Over the course of the next11years,theaveragecostofautoinsurance premiums increased by less than10%.Bycomparison,inflationwas26%duringthesameperiod.Itisalso worth noting that these changes were considered so successful that governments in Ontario and all three Maritimeprovincesincorporated,tosomeextent,themethods used in the 2004 Alberta reforms.

Minor injuries Since 2012, however, a couple of court decisions have created uncertaintyon what constitutes a minor injury, which now allows individuals with certain minor injuries to circumvent the cap on pain and suffering damages. Specifically,individualswithaminorsprain who also have jaw pain do not have to settle their claim within the minor injury cap, regardless of theseriousness of their total injury. This exceptionhasresultedintheaveragecost of a bodily injury claim increasing by50%,from$42,000to$63,000,between2011and2015.Asofthethirdquarterof2016,Alberta’sautoinsurance loss ratio was 91%, 14 per-centage points higher than for Ontario auto.

Another factor that has driven up costs is the provincially prescribed 4% prejudgment interest rate for pain andsuffering awards. The provincialgovernment requires prejudgment interest for pain and suffering damages to be paid at a different rate than for pecuniary damages. Prejudgement interest on pecuniary damages are paid at market interest rates, which are hovering under 1%. Withthe4%rate,theaveragepayment for prejudgment interest is more than $2,800. If this were paid at the same prejudgment interest rate as the government requires pecuniary damages to be paid at, the average payment would be $390, which would represent more than $2,400 in reduced claims cost.

Prejudgment and pecuniary damages

How we got here


BILL ADAMSVice President,

Western & Pacific ,Insurance Bureau of

Canada

Albertans continue to face a tough economy, with many out of work. Political leaders may start to feelpressure from voters due to risingcosts on mandated products like auto insurance. IBC and its members believethatMLAsandgovernmentofficials can control these costs by making simple changes to insurance regulations and to legal rules. Insurers are proposing three keyrecommendationstofixthecurrentsituationandultimatelybenefitAlbertans:•First,thegovernmentshouldamendtheMinorInjuryRegulationsothat the cap applies to anyone with an injury that is minor in nature. The governments in New Brunswick and Prince Edward Island apply their minor injury caps this way and the industry sees no evidence there of the type of increasing claims costs that have driven up premiums in

Alberta. The Alberta government iscurrentlyreviewingtheMinorInjury Regulation so this provides an ideal opportunity to make adjustments.•Second,formotorvehiclecollision claims only, the government shouldamendtheJudgmentInterestActto align the prejudgment interest rate for pain and suffering damages with the rate for pecuniary damages, which is much closer to current market interest rates. The Ontario government made this type of reform last year to help reduce costs for consumers.•Third,alsoforcollisionclaimsonly, the government should amend theJudgmentInterestActtostartthe accrual period for prejudgment interest on the date that the plaintifffilesnoticeofaclaim,notthedate of the collision, as is now the case. The tort system in Ontario has proceeded this way for years.

These three recommendations will stabilize claims costs and ease pressure on premiums while continuing toprovidethebenefitsthatAlbertansdeserveandhavecometoexpect. Brokers are a critically important part of the insurance industry’s voice to the government. I strongly encourageany Alberta broker who shares concernsabout the sustainability of our current auto system to share those thoughts withtheirMLA.Together,I’mconfidentthatwecandemonstratethewisdom of industry’s solutions to the troubling trends currently plaguing the province’s auto insurance system.

What needs to be done?


Setting the Benchmarkin Technology for

Alberta Brokerages

For an insurance broker, an enormous component of growth comes from out-servicing the competition—

which is why setting benchmarks is acrucial piece of developing any businessplan. There are many resources that can support brokers in this task,including two produced by CSIO— oneofwhichisexclusivetoIBAAmembers. On the technology front, CSIO’sTechnology Leader program is nationalin scope, tracking member adoption of nine key technologies in each provinceand celebrating those brokerages that score100%.Of65brokeragesrecognizedasofthiswriting,16arein Alberta – a great accomplishment. Full adoption statistics for Alberta are shown on the table below.

highest adoption rate for three differ-ent technologies: CSIOnet, eDocs and eSignatures. In fact, eDocs adoption is set to grow even higher, with 7% of survey respondents reporting active plans to implement eDocs for personal linesandanother36%reportingtodothe same for commercial lines.

Cybersecurity Alberta brokers are tied for the highestadoptionofTLSeMailSecurity,asimpleandinexpensivesolution that enhances PIPEDA compliance by protecting emails—particularly those containing personal customer information—from cyber criminals. As survey results indicatethat Alberta brokers have an emailaddressonfilefor64%and75%ofpersonal and commercial lines customersrespectively, ensuring the privacy of email communications should be a top priority.

Key Takeaways: Areas ofOpportunityOnline PresenceWhilethevastmajorityofAlbertabrokers maintain a website (and more than half of those are optimized for mobile devices), there is an opportunityto further increase the number—especially given consumer trends


In fact, Alberta brokerages have the third-highest total adoption rate in Canadaat75%,behindonlyOntarioand Nova Scotia. From a business operationsperspective, Alberta brokers can turn to the report of the IBAA-CSIOBrokerage Operational Surveyconducted last summer, available on the IBAA website. The report includes information such as average salary, technologyexpenseratio,trainingcosts, operating hours and more—providing IBAA members with a great deal of insight into their competitive position within the province.

Key Takeaways: Areas of StrengthDigital WorkflowAlberta brokers are among the savviest in this regard, boasting the second-


Technology Adoption Statistics–Alberta 2015 2016 ChangeeDocCSIOnetCSIO Industry FormseSignaturesTLS eMail SecurityWebsiteMobile-Optimized WebsiteSearch Engine Optimization (SEO)Social MediaOverall Average

57%74%100%3%85%80%42%47%25%59%

83%86%100%8%95%86%58%55%29%75%

+26%+12%---+5%+10%+6%+16%+8%+4%+16%


MICHAEL SPIARMember Engagement &

Communications Specialist,CSIO

[email protected]

showing a dramatic move towards smartphones and digital commerce. In 2013 alone, consumers spent 40% of insurance research time on mobile devices,and25%exclusivelyusedamobile device. Alberta also lags in adoption of social media, ranking seventh out of 10 provinces in Canada. Encouragingly, however, 42% of survey respondents have invested in a search engine optimization (SEO) strategy, possibly indicating a shift towardsfurther adoption of these keytechnologies through 2017 and beyond.

Out-Servicing the CompetitionAsignificantpieceoftheconsumer’sshift to digital platforms is theexpectationof24/7service.Contrastthat with the average operating hours reported by survey respondents:•Openbefore9a.m.:70%•Openafter5p.m.:10%•OpenonSaturday:19%•After-hourscallservice:43% Furthermore, survey results indicate that only 44% of brokerages usestandardizedworkflowprocesses—possibly leading to inefficiencies, inconsistent customer service levels, miscommunication and disorganization.

Moving Forward CSIO updates its technologyadoption rates every year and strives

to recognize new technology leaders as often as possible. Is your brokerage a technology leader? Complete our scorecardandletusknow!Visit:csio.com/scorecard-tool. Additionally, all members of IBAA are automatically members of CSIO and may sign up on CSIO.com toenjoymemberbenefitsincludingaccessto our library of industry forms, monthly newsletter, working groups and more.

Astheadagegoes,“Whatgetsmeasured gets done.” In that spirit, CSIO will continue providing thebroker channel with valuable data toset performance benchmarks and improve our industry’s ease of doing business.

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Who? What? Where? Tracy Fata

Northern

TRACY FATARegional Manager of

Branch Operations,Portage Mutual

Insurance [email protected]

BROKER NEWSJimHarris,OwnerofRavenhillAgencies Ltd., is proud to advise that CalebMaksymchukisnowapartnerofRavenhillAgenciesLtd.asofJanuary2017. Caleb will be assuming the role of president.

COMPANY NEWSPortageMutualInsuranceannouncedtwo new appointments in its Edmonton Branch. Kevin Park was appointed to the position of regional branch manager of the western region (AB/BC). I, Tracy Fata, was appointed to the position of regional underwriting manager. HalieWispinskimovedtoWawanesa,taking on the role of personal lines supervisor.

RETIREMENTS Roger Lestus retired from Crystal Glass at the end of February.

INDUSTRY EVENTSWatchforinforegardingtheBlueGooseCharityGalainMay2017.

NEW IBAC CEOEffectiveFebruary27,2017,Mr.PeterBraid became the new CEO ofInsurance Brokers Association of Canada(IBAC).Mostrecently,Braidserved in a global leadership capacity withaWaterloohigh-techfirm. Previously, Braid served for 7 years as theFederalMemberofParliamentfortheridingofKitchener-Waterloo. During his time in public service Braid was appointed by the prime minister as the parliamentary secretary for infrastructure and communities. Significantly,Braidwasthefounding

chair of the insurance caucus onParliament Hill, which providedimportant stakeholders in the insurance sector with the opportunity to speak directly with legislators to help shape public policy. In the insurance sector, Braid worked forsixyearsatthedirectorlevelwithSun Life Financial. Braid holds a Bachelor of Arts from theUniversity of Toronto and completed theNot-for-ProfitGovernanceEssentialsProgram offered by Institute ofCorporate Directors and the Rotman SchoolofManagement.

“Peter Braid brings to IBAC and the broker community not only theprofessionalexpertiseandbackgroundin key policy areas important to brokers, but more importantly, he is very well known and very well-regarded as aconsensus builder and team leader,” stated Lorne Perry, IBAC chair.



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The Alberta Broker - c.ymcdn.com · 4 The Alberta Broker April – May 2017 Julia Marshall Message from the President Like all the new presidents before me, I spoke at the beginning