annette hubick message from the editor€¦ · broker to guide them through available options and...

The Alberta Broker August – September 2016 3

Annette Hubick

Message from the Editor When the practice of interacting with clients through digital mediums first began, many saw it as the death knell of personalizedcustomer relationships. At first, “they” were right. Businesses began transmitting“one-size-fits-all” mass communications.However, recent experiences tell me that today businesses are using digital tools and integrating them with “real life” tactics to individualize their client interactions.1. Upon checking in to the Banff SpringsHotel for the IBAA convention, I wasasked for my cell phone number. Soon after reaching my room, Ireceived a text, which included myname, inquiring as to whether I wassatisfied with my room and myexperience so far. After I replied withmy rating and comments, I receivedanother text thanking me for my reply and inviting me to contact them should I need anything else. At the end of my stay, I received another text with a link to my folio to review before checkout.

insurance provider. There are some who might write off this “segment” ofcustomers as young Gen Z’ers ormillennials but, and I hate to point this out, I am nowhere near that agedemographic, and it’s how I operate. Several other articles in this issue touch on the issue of technology and insurance.• JuliaMarshall’s“MessagefromthePresident” stresses the perils ofbrokerages not adapting to technologicaldemands (page 4).• “NewUberCoverage”illustrateshowtheindustry is using technology to provide proper insurance coverage to ride-sharingdrivers and passengers (page 22).• “CalminCrisiswithTechnology”—how technology allowed the industry to provide service to the victims of the Fort McMurraywildfires(page24).• PYIB’sJonathonBrownmakesthecase for brokers to use social media (page 30).• IBACpresidentshareshowbrokersareembracing the digital world (page 36). I usually end this column with aninvitation to email feedback to me, but that now seems so 2005. Feel free to send me a text to 780-945-1934. Happy summer!

All very automated, all very personal.2. As some may remember, my vehicle broke down on my drive to Banff and it had to be towed to a local repair shop. On my drive back to Edmonton, I received a text from the shop owner asking me if I made it home problem-free—itprobablytookhim10secondsto show he took a personal interest in my well-being and demonstrate his commitment to service.3.AftersearchingonYelpforarestaurantrecommendation and booking areservationviamyOpenTableapp,Ireceived from the restaurant to confirmationand inquire if it was a special occasion. After our meal, I received a notificationfrom the app asking me to give feedbackon my dining experience. As IBAA’s social media advisor Sanna Westermann writes in her article on page 12, these types of interactions are “TheNewNormal”andarehowmanyoftoday’s consumers expect to do businesswhether it be with a restaurant or their

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.

Published six times annually by:

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

August – September 2016

3 Message from the Editor 4 Message from the President

6 Legal-Ease Unclear Advantage

10 Chinook Country Report

12 IBC Insight LessonsfromtheN.AlbertaWildfire

14 The Advocate 5 Years and 5 Observations

16 The New Normal Acquiring and Interacting with Cients in a Digital World

20 Did You Know?

22 New “Uber” Coverage

24 Calm in Crisis with Technology CSIO Tech Disaster

26 Seek to Complete not Compete

28 Know E&O History Lessons

30 PYIB Perspective Stand Out From the Crowd

32 Northern Exposure Back with a New Writer!

38 Professional Development Achieving the Gold Standard

36 Viewpoint Embracing the New World

38 IBAA Courses

President Julia MarshallChief Executive Officer George Hodgson

The Alberta Broker is the official publication of the IN THIS ISSUE

4 The Alberta Broker August – September 2016

Julia Marshall

Message fromthe President

Ignoring

technology isno longer an optionfor businesses thatwish to compete insuch a progressive

society.

Loyalty. Insurance companies have stressed the importance of this virtue to us brokers for the past 25 years that I have been in this business. Should we sit back and watch as some attempt to devalue our importance in an industryto which we have all invested and dedicated so much? I thought it would be both appropriateand intriguing to highlight the possiblemotives driving some companies to branch out with a direct arm. It seems that some areas of our industry are heading in one of two directions. Insurers could be preparingto educate and share their clearadvantage, having ample amounts ofcollected data, with their broker partners.This approach would strengthen the broker position in an industry that is rapidly advancing technologically. Conversely,theycouldbeusingthisadvantage to strengthen their direct arms in order to take market share away from the broker distribution channel. Regardless, brokers will always have a place in the insurance industry if we as brokers continue catering to a wide variety of consumers. Even if some disregard the aspect of loyalty in business, a direct arm cannot satisfy the needs of all consumers, and this market diversity creates the value of, and demand for, our services. The millennial generation, known to be technologically savvy, has recentlybecome larger than the baby boomer generation, and this undoubtedly calls for alterations in business strategy.

Ignoring technology is no longer an option for businesses that wish to compete in such a progressive society.There must be a certain level ofmovement past old practices in order to advance in the right direction and maximize consumer satisfaction. However, we simply cannot disregardthe value that old practices hold becausethat too can drive away consumers, especially in an industry with a broad target market.Cateringtosuchadiversetargetmarket requires a well-rounded understanding of the preferences, tendencies, attitudes and values of all consumers. In order to best serve the consumer, we as brokers must offer a wide variety of methods by which we can perform our services. There have been some technological alterations in the insurance industry, some which are very progressive and others that are bound to drive away

less technically savvy consumers. An example of a progressive technological advancement is an app for clients to easily access their insurance informationand liability pink cards. I refer to the creation of such an app as progressive because the consumer gains the option to utilize it; it is not being forced as a replacement for previous methods that some consumers may prefer. Seeing these different trends arise, we must challenge ourselves as to how we as brokers maintain the high value for our services while other options are continuing to present themselves to consumers.Consumersrelyontheirinsurancebroker to guide them through availableoptions and make decisions on what can often be a complex process. Regardless of how technologically savvy the consumer is, there is a level of comfort associated with using a trusted broker in the purchase of insurance. We are in every community and support the areas we live in, be they urban or rural. When our clients have a claim, they call their broker, not a call centre. We have proven to be trusted advisors on basic and complex products and must constantly strive to better our services. I will leave you with this thought: Loyalty does not go un-noticed. Whileinsurers are collecting data, what are you doing as a brokerage to strengthen your place in the market and show your value? When loyalty is questioned,where does yours lie?


The plaintiffs, Lisa Francis on behalf ofherselfandastrusteefortheCollettFamilyTrustandGaryCollett(“theplaintiffs”), were the owners of propertyon Lake of the Woods in Ontario. The property consisted of four buildings; the main house, the guest house, the boat house and a workshop. Extensive renovation work was undertaken and

the property expanded throughout 2011. The defendant, AIG Insurance CompanyofCanada(“AIG”),insuredthe plaintiffs’ property pursuant to a policy available only to high net worth individuals. The policy contained a guaranteed rebuilding cost endorsement(“GRC”)whichprovidedfor:

“…the reconstruction cost of your house or other permanent structures, for each occurrence, even if this amount is greater than the amount of coverage shown on the declarations page. However, you must begin to repair or rebuild your house or other

Legal-Ease Shelley L. Miller and Sara Hart

UNCLEARADVANTAGE

Court Rules AmbiguityFavours the...

continued on page 8

Alberta Executive Panel



[email protected]

SHELLEY L. MILLER, Q.C. and SARA HARTare lawyers with

Dentons Canada LLP and practice in theprofessional liability insurance area.

[email protected]

permanent structures within two years from the date of the loss at the same location. If not, the maximum payable is the coverage limit shown for that location on the declarations page.” On February 17, 2012, a firedestroyed the workshop, main house and damaged the guest house. A claim was made by the plaintiffs to AIG. The parties retained counsel as well as experts concerning the cost to rebuild the structures destroyed/damaged by the fire. OnJanuary16,2013,theplaintiffssubmitted a proof of loss, claiming over $11 million. The coverage limits were $2,669,668.00 for the main house, $947,748.00 for the other buildings and $1,334,834.00 foradditional living expenses. The defendant’s expert estimated the cost of rebuilding the main house atover $4 million. The plaintiffs’ expert calculated an estimate to rebuild all of the structures at a cost of over $14 million. AIG paid out the coverage limit for the main house and refused to pay the difference to rebuild all of thestructuresundertheGRConthebasis that the plaintiffs had not started to rebuild all of the structures within two years. A “tolling agreement”extending the time limitation to commencea statement of claim from February 10to September 18, 2014, was agreed to between the parties. With no agreementon the applicabilityoftheGRCandgiven the refusal by AIG to issue any further payments beyond the stated coverage amounts on the face of the policy, the plaintiffs filed a statement of claim against AIG on September 17, 2014, and then filed an application for summary judgment. The main issue in this action was whether the reconstruction, repair or rebuilding of the plaintiffs’ property was commenced within two years afterthefiresoastotriggertheGRCcoverage in their insurance policy.

The policy wording that “you must begin to repair or rebuild your house or other permanent structures within two years from the date of loss at the same location” is not defined in the policy. As a result, the plain meaning of the wording that accords with the intention of the parties should be used. The court held that given the use of the disjunctive meaning of the word “or” suggests that repair or rebuildingof one of the structures would be sufficient to extend coverage to all of the damaged structures. Had AIG wantedtheGRCtoonlytakeeffectifrepair and rebuilding on all structures affected had taken place, it could have clearly stated same. There was no evidence from AIG that the plaintiffs had no intention to rebuild. In fact, the plaintiffs emailed AIG and stated that they “intend to build the identical structure and fully intend on taking advantage of the GRCcoverage.”Althoughtherewasa delay in the plaintiffs commencing work on rebuilding, plaintiffs’ counsel cited case law supporting that the insured’s obligation to rebuild did not attach until the insurer acknowledged its reciprocal obligation to pay. The court held that the tollingagreement extended the one-year limitation to commence legal action to September 18, 2014, and as such, the work undertaken by the plaintiffs up to early September 2014 qualified andentitledtheplaintiffstotheGRCcoverage. The court also concluded that had the plaintiffs not been found to have begun the repair or rebuild within the time contracted for in the policy, relief from forfeiture would not have been available. This finding was based on

the court’s expressed concern in rela-tion to the conduct of the plaintiff in not beginning repair of all of the dam-aged structures (taking into account the amount of monies paid by AIGand the plaintiffs’ overall level of sophistication), the fact that AIG was not prejudiced (having known andadjusted the claim right from the outset) and, thirdly, that AIG was not responsible for the increase inreconstruction costs between the time of the fire in 2012 and the present. The court granted the plaintiffs’application for partial summaryjudgment and found they were entitledtoGRCcoverageunderthepolicy, as they had begun to repair or rebuild the main house within the two yearsprovided.Costswereawardedtothe plaintiffs payable forthwith. It is evident from the court’s finding that insurers must ensure that policy wording is clear and unambiguous so as to avoid the application of thedoctrine of contra proferentem andadverse coverage rulings. In this instance,had AIG wanted to ensure that the GRCcoveragewouldapplyonlyifrepair or rebuilding of all damaged structures had been commencedwithin two years of the loss, it could have clearly stated same. In this case the “million dollar question” wasanswered in favour of the insured, given the absence of clear wording to the contrary in favour of the insurer.

1Francis v. AIG Insurance Company of Canada, (“Francis”) 2016ONSC2064at para. 5, p. 2.2 Francis, supra at para. 26, p. 5.3 Francis, supra at para. 34, p. 7.

continued from page 6


[email protected]

DARRELL VERBONAC,FCIP, CRMDirector of

Business DevelopmentIntact Insurance Company

Who? What? Where? Darrell Verbonac

BROKER NEWS A new broker is on the scene in Calgary.EmadRizk,whohadbeenwith Lucas & Wright Insurance for the past several years, struck out on his own opening Rizk Insurance Brokers Ltd. in the Evanston area in the northwest part of the city. Twobrokersaremergingtheiroperations;ChadMullenandLane’sInsurance are joining with David Waldron and Braeside Insurance, with the new entity being known as CentralInsuranceGroup.Twobrokershavenewofficelocations:Action Insurance moved from its previous space near the airport to new digs at 4949 51st Street SE, and Alpine Insurance moved from its officenearChinookCentretonewspaceat8820BlackfootTrailSE.

Calgary Staffing Changes •JillCarberryisthenewdirectorofbusinessdevelopmentwithArthurJ.Gallagher Limited, having previously been with Rogers Insurance.•NewstaffatLloydSaddInsuranceareAnthonyCupidio,LanceHudginand Philip Schuman. •HousamKabalamwentfromSharpInsurance to Palmer Salmon Insurance•DennisTranmovedfromWestlandInsurance’s commercial office to Sproule Insurance.•SandraLarivieremovedfromJardineLloydThompsontoCollisInsurance. •CharityObayashijoinedWestlandInsurance’sDeerfootMeadowsoffice.•ColleenMuldoonisnewatGallagher Energy.

In Southern Alberta Vecas Griffiths joined Schwartz Reliance Insurance in Lethbridge.

CongratulationsToManuelaSpyrkaofMarshCanadaontheMay13thbirthofherfirst son, Eli William.ToAon’sbranchmanagerMichaelTaillonwhosesonJamesonmadehismajor league baseball pitching debut withthePittsburghPiratesonJune8thinahomegameagainsttheNewYorkMets.

COMPANY NEWS Here at Intact Insurance, Luisa CurrieisthenewregionalvicepresidentfortheCalgaryRegion,havingpreviouslybeen the regional vice president of sales and business development.ReplacingLuisaisRosaNelson,who had previously been the director of sales and business development. As well, director of business developmentJanetKowalandcommercialunderwriterGayle Erickson both retired.

Up in Edmonton, Don Warden fromTDInsurancejoinedIntactasadirector of business development. SaskatchewanMutualInsurancenew Alberta marketing rep is Fawn Mah,whohasspenttimeonboththe broker and company side in her insurance career.

PARTNER NEWS•Crawford&CompanyopenedaFortMcMurraybranch,whichisbeingstaffedbyPhedraMilneandJoleneJani.•ConcoursCollisionCentresopeneda new location down in the southeast partofCalgaryneartheSouthTrailAutoMall.

In MemoryHarveyKunz,whowasapartnerintwoCalgarybrokerges,GoldStarInsurance and Insurance Associates West,passedawayonMay14,2016. Frances Lang, who was the general manager of the Insurance Institute of Southern Alberta for a number of years before moving on to a job in the energysector,diedonJune7,2016.

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IBC Insight Bill Adams

they finally get to move back in. Building on those lessons, and onlessons learned after the floods in southern Alberta in 2013, someinsurers expanded the size of the teams they sent to evacuation centresimmediately after the northern Albertawildfire.

2. Communicate with precision Tomakegooddecisions,evacueesand others involved in disasters need accurate information and anymisinformationcorrectedquickly.Tomeet the objectives of disseminating accurate information and quicklycorrectingmisinformation,IBCusedsocial and traditional media extensively.We built a webpage specifically about the wildfire, handled scores of media calls and were active on social media. IBCrespondedquicklytonegativecomments online about insurance and also corrected misinformation and flagged comments for any members named on Facebook, to help them respond quickly.

3. Meet basic needs promptly The necessity of meeting peoples’ basic needs quickly was demonstrated when insurers who set up at the evacuation centres came prepared to immediately cut cheques for additional

The northern Alberta wildfire has beenanunprecedentedevent—interms of size, level of destruction and impact on the property and casualty (P&C)insuranceindustry. It’s too early to have a definitiveassessment of the total insurance claims stemming from the disaster. Estimates have ranged from $4 billion to $9 billion, making this disaster the largestinCanadianhistoryintermsofinsurance claims. Beyond the dollars and cents of claims, the northern Alberta wildfire called for an unprecedented response from our industry and our organization,InsuranceBureauofCanada(IBC).IBCstaffmemberswereatevacuationcentres within 48 hours of theevacuationofFortMcMurray.Weworked shoulder-to-shoulder with officials from the municipal and provincial governments. At the latter’s request, we became the liaison and communication nexus between the government and all insurers, including thosewhoarenotIBCmembers. This article is being written in mid-June,soitonlycoversthebeginningof the story. But suffice it to say that we have learned many lessons over the past six weeks. Here are four key lessons we’ve learned so far:

1. Put people first 2. Communicate with precision 3. Promptly meet basic needs4. Collaborate freely and quickly 1. Put people first “Put people first” is the spirit that must guide and inform everything we do, especially in times of crisis. Naturally,thenutsandboltsoftheindustry’s response must also be in place and working well. But it’s just as important to be an empathetic and reassuring presence for evacuees. That’swhyIBCstaffweredeployedinCommunityAssistanceMobilePavilions(CAMPs)inLacLaBicheandEdmontonNorthlands,wheremany evacuees were staying, to provide information and answer questions. Shortlyafterward,IBCalsoopenedCAMPinCalgary.Beingontheground was essential to delivering the personal touch that’s so vital incatastrophic situations. Indeed, after a wildfire laid waste to their town in 2011, the people of Slave Lake prepared a wonderful document reflecting on their experience. They highlighted the importance ofacknowledging the emotional journey—fromthatfirststunnedrealizationof what’s happening, to the day people get to see their homes again, to the day

Lessons from the NorthernAlberta Wildfire


STAND OUTwith Alberta’s brokers

by advertising in

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T: 780.910.2601E: [email protected]

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living expenses. Evacuees accepted the cheques with a great deal of relief and appreciation.

4. Collaborate freely and quicklySeniorIBCstaffandaclaimsspecialistretainedbyIBCreceivedpermissiontoenterFortMcMurrayearly on in the crisis. The provincial RegionalEmergencyOperationsCentre(REOC),atthattimeincontrolofthearea,immediatelyinvitedIBCrepresentatives to be embedded in its daily operations. IBC’scloseworkingrelationshiponthe ground with the Government of AlbertaandtheRegionalMunicipalityof Wood Buffalo is an example of how collaboration can make the overall response to an emergency moreeffective. And close coordination must be nurtured. Before the wildfire, the P&Cinsuranceindustryhaddevelopedexcellent working relationships with several arms of the Alberta governmentas well as with the Superintendent of Insurance’s office.

In conclusion Our industry’s response to disasters is a litmus test of how well we’re doing our job. We are called on to act on our coremissionofhelpingCanadianshandle risk, and to do that under very challenging circumstances. We have to deliver that same quality of service whatever the emergency and wherever it happens: in the forests of northern Alberta, in the streets and avenuesofdowntownCalgary,inthebadlands around Drumheller oranywhereelseinAlbertaorCanada.Topassthattest,we’llneedtokeepthelessonswearelearning—andrelearning—innorthernAlbertaattheheart of what we do.


The old cliché that “it seems like only yesterday” is toorelevant not to be rolled out for my five years in the CEO’s chair and the author of this column.

Conversely,withsomanyseminalevents and industry-changing trends, it also seems like a lifetime ago. As someone who had no insurance experi-ence, the ever-present learning curve originally presented itself as more of a cliff than a curve. These five years have been among the most interesting, satisfying and, yes, challenging ever. While I undertook some fairly significant changes both professionally and personally, more importantly, the industry has undergone some gradual shifts and sudden changes that all had great impact on the insuranceindustry and society as a whole.

Consolidation Part I—Company Insurance company consolidation is not new but, like other social trends, people jump on the bandwagon as they see the advantages of certain actions and cause the trend to pick up speed. Large companies are purchasing large and small companies. Small companies are merging. Broker-channel companies

are picking up direct writers. The list goes on. Regardless of the specific permutations of company consolidation, the one common consequence is less brokerandconsumerchoice.Consolidationmay in some cases have allowed one or more entities to continue to be viable, but less choice is generally not good news for the consumer or the industry as a whole. The most important and perhaps often ignored positive is that the banks appear to be divesting them-selvesofP&Cinsurance,ratherthanpurchasing their way further into the industry. We will have to see how long this trend continues.

Consolidation Part II—Broker It should come as no surprise that consolidation would take place within the broker channel as well. During the early part of my five-year time frame, large regional, national or multinationalbrokerages seemed mainly to be the onesgobbling up anything and everythingin sight. While the large consolidators have not gone into hibernation completely,the trend seems to have shifted slightly to smaller entities merging or mid-sized regional brokerages purchasing smaller offices or other mid-sized brokers. While these consolidations also result in less choice for consumers, they may

be one significant means by which the broker-distribution channel can remain viable. A subset of the broker consolidation isthe emergence of partnerships betweenbrokerages and clusters. This trend has been common in other jurisdictions but is also now appearing in Alberta.

Catastrophic Losses In the five-year time span, three catastrophic events have wreaked havoc inAlberta—theSlaveLakefireof2011,the Southern Alberta flood of 2013 andtheFortMcMurrayfirethisyear.From a public perspective, our industry has responded reasonably well so far (with some exceptions). One of many concerns though is the medium-to- long-term effect of the costly response on premiums and perhaps on coverage availability. These events have brought to the forefront great conversations aboutclimatechange—whetherornotitishere, whether or not it is caused by human activity and whether we can or should do anything about it. Signifcantdebate has also arisen on whether climate change or changes in land and building use have created these events or whether these events are exacerbated by climate change or change of use.

The Advocate George Hodgson

55YEARS and

OBSERVATIONS


GEORGE HODGSONCEO, IBAA

[email protected]

In the end, however, the insurance industry seems to be the canary in the mineshaft. While these philosophical discussions are essential from a public policy perspective, we need to encourageour insureds to undertake measures that mitigate or even prevent such catastrophiclosses. Our industry needs to convey the importance either through informing our clients or incentivizing them.

Changes in GovernmentInthelastfiveyears,Canadahashad two prime ministers, Alberta has had five premiers and both have seen a change in government. At no point in history have we seen that level of change.Moreimportantly,however,is the change in direction of both the provincialandfederalgovernments—inboth cases from centre right to centre left. How much these changes willaffect the insurance industry is yet to be determined. Significantly, these political shifts have coincided with the upcomingreview of the Bank Act at the federal level and increasing pressure on auto and property insurance. I am interested to see the cause and effect relationship of the Bank Act andthebanksdivestingthemselvesofP&Cdivisions. Will they will be less concernedwith the Bank Act over the next few years, or has the restriction in the Bank Act against retailing insuranceat the point of granting credit caused them to divest? If the latter, then they will likely increase their efforts tochangetheact.Canadaisoneofthe only countries that does not allow banks to retail insurance at the point of granting credit, so my guess is that they will advocate for changes to the act.

Technology Perhaps the most far reaching and most difficult change to keep up with is the evolution in technology that has occurred in the past five years. Looking back to 2011, one could argue that the smart phone was a toddler compared to what it is today, with the app ruling pretty much everything. In composingthis column alone, I have used at leastthree apps for research purposes,

something I would not have done five years ago. The insurance industry, like most information-intensive industries, has been slow to catch up but is making significant head way. At first, the larger entities were significantly ahead of the small brokerages and to a certain extent perhaps they still are; however, the fact that fairly sophisticated technology is much more affordable than it was even two years ago is assisting the smaller brokerages.Changesininformationtechnology will continue to take place at an ever-increasing rate, so let’s make the most of it.

The Next Five Years? I started this column with a cliché, so why not end it with not one but two? The only constant is change; and what is old often becomes new again. Our world is in a constant state of flux. The amount of information availableto us digitally is said to be up to 3 milliontimes that which is contained in all of the books ever written (Wikipedia). Thatamount in itself is bound to have a significant effect on our lives. It will have a proportionally greater effect on the insurance industry as information and data are its lifeblood. Those who are better at accessing and analyzing the data will thrive over and above the rest.

Other changes are going to have a profound effect as well. Think of the increased use of drones, the impact of the connected home and driverlessautos and the increased use of renewableresources.Changesgenerallyhappenfaster than we imagine they would. Some trends, however, are cyclical in nature, and consolidation may be one of them. Pendulums have swung from one extreme to another throughout history. Whether the broker consolidationslowdown is temporary or more long lasting is difficult to know. Over the past few years, Alberta has seen an increase in new small and not-so-small brokerstart-ups.Timewilltellifthisincrease is a new trend or just atemporary blip. I have thoroughly enjoyed this past five years in an industry that is ever changing, adaptable and full of passionateand compassionate people. I lookforward to the future with excitement and anticipation.

Clients in a Digital World

Acquiring & Interacting With

THE NEW NORMAL

By Sanna WestermannActiveReach Media

IBAA Social Media Co-ordinator,

Clients in a Digital World

Acquiring & Interacting With

THE NEW NORMAL

By Sanna WestermannActiveReach Media

IBAA Social Media Co-ordinator, The Alberta Broker August – September 2016 17

It is a challenging marketplace in 2016 for businesses in Alberta, and Canadaforthatmatter.Theoilandgasindustry took a big hit on the economy,creating a different landscape forbusinessowners.Now,morethanever,businesses must be competitive in every aspect of their operations. AnErnst&Youngreportstatedthattechnology ranks 10 out of 10 for impactofexternalforcesontheCanadianP&Cmarketin2016.“Digitaltechnologies, such as social media, telematics and analytics, are redefiningthe insurance market. The impact will affect most business areas, from mar-keting and distribution to customer service and pricing models.”1

The marketplace is changing, the products are changing and the consumeris changing.2 Expectations have shifted due to the rapid technological advances, and the businesses that have taken advantage are establishing the benchmark for customer service. The factors that are impacting this new brand of consumer have changed; the cognitive and emotional responses to what the consumer finds online are increasingly important in the modern business model. The new normal is the digitization of customer relationship management. Digitization encompasses manydifferent aspects. One example is social media, which a surprising amount of Canadianindustriesarenotutilizing—Facebook,Twitter,Instagram,LinkedInand countless others. How will you maintain and update all of these sites? Is it possible to have a substantial and consistent presence onlinewithout eating into your existing budget and absorbing precious humanresources? These questions are long-termdecisions that need to be made, and with these decisions is a need to truly understand the current and emerging markets. Amazon,Apple,thetopfivebanks—these are industry leaders and have shaped customer expectations. The focus is now on customer experience. From

customer acquisition to retention, there are many tools available that will provide the high-quality experience customers need.

“Providing high-quality service experiences, tailored to the needs of the individual, enhances customer engagement.”2

The online shopper

How are modern consumers choosing their products? Shopping online is a touch away on a mobile phone. Even while in a brick and mortarshop, consumers are now searching review sites to find out what others haveto say about a product. In 2014, the average Albertan household spendsapproximately $6,000 on personalinsurance payments and pensioncontributions per year.3Consumersarebecoming savvier and expectations are getting higher. Vehicle sales are a huge industry thathasutilizeddigitization.Majordealershipsand brands have web developers and social media specialists constantly updating their brand and websites. They have adopted immediate contact with a pop-up “chat with us” window where users can ask any question that comes to mind and receive an answer within minutes, sometimes seconds. It is easy to find prices and models, and while this scenario isn’t exactly comparing apples to apples regarding insurance, it does show what consumers are expecting. Manyonlineshoppersareasking,“How can I find a quote for homeinsurance online without talking to someone? (But if I need advice or have questions,canIgethelp—rightnow?)How can I be in control of the process and find quick and easy comparable prices without spending hours calling or meeting with brokers and getting a sales pitch?” Consumersarenowabsorbingpartof the power insurance brokers used to have. Information is everywhere, whether that information is good or bad

doesn’t matter. Therefore, brokerages must make sure the content they are pushing in the digital world is easy to understand, helpful and relevant to the average consumer. Online advocates and influencers (e.g., bloggers, people withlotsofTwitterfollowers,theaverage Facebook-er, etc.) are growing their audiences exponentially; constant surveillance of online activity is crucial to manage the relationship between business and consumer. A consumer’s bad experience may be plastered online for all to see and will be there whether or not the company has an onlinepresence; if it does, at least there is a chance to rectify and recover.

What do consumers want? What are they expecting? Here is a snapshot:•Pricetransparency•Easytounderstandpolicies.Tolerance for complex products is diminishing. Let’s compare these policies to the “terms and conditions” we all “read” every time we update our computers. People will not be so quick to click “agree” when it comes to insuring their valuable possessions and livelihood. •Relationshipsbuiltandmaintained in the easily and convenientlyaccessibledigitalworld.Consumers should be able to react to a tragedy such as a wild fire by instantly learning what their policy provides and how to easily update their policy to give them peace-of-mind.•Communicationthatdoesn’tinterfere with consumer’s lifestyle.•Connectiontoanonlinecommunity; consumers helping consumers with reviews.Nowmorethanever,itisimportantand necessary to have a strategy in place to address the changing needs of today’s consumer. The demographic is changing. Youngergenerationsaremakingmajorpurchases and are searching forinformation on how to secure theirfuture in the way they know how:

continued on page 18


online. They should be able to find your company, click on your products and actually receive a quick and easy to understand concept of what thatproduct might offer. This is theexpectation.Consumers’expectationsshould not be out of sync with what they will receive.

“Only one-fifth of Canadiancompanies have a robust digitalmarketing strategy in place.”4

It is critical to take a progressiveapproach on digitization now before it’stoo late. Search engine optimization(SEO) and social media management cannot be put on the back burner any longer if a business is to thrive. With prices becoming so transparent and the market growing increasingly competitive, it is imperative to find an edge for your business to stand out. The insurance brokers that act quickly to capitalize on the industry’s stark lacking of progression in this digital landscape will quickly stand out as industry leaders.

How to enhance your SEO (and why) Every legitimate link to and from a website increases its rank.•Legitimatelink=forexamplea Facebook page with key words and accurate company information containing a direct link to the company web page.•Rank=howhighthepageappearson


search engine results when consumers search for “insurance.” The higher the company page’s rank, the more likely it will be selected. This is the way consumers find companies and research their products. If it’s not a click away, it will be overlooked.

Digitizing the process Technology and digitization aresimply blanket terms for creating a smooth customer experience. The game has changed from product focus to customer focus. Pursue and develop creative ways to drive consumers into the first step of a cyclical process. •Createaneed for your product.•Directthisneedtotheappropriate resources for proper research and knowledge.•Encouragecomparison.•Makeanefforttounderstandwhat the customer is experiencing and be prepared to remedy these issues to gain their trust and commitment.•Ensurecustomer expectations are in line with what is being offered.•Displaythevalue your product brings,

and finally, •Retention: follow up with your customer consistently. The customer can be at any stage of the buying process when the first contact is made. Be prepared with a strategy to capture and keep the interest immediately.

Be engagingCustomerengagementisthenameof the game. Direct and personalized marketing is the way to play. Here is a great example of a campaign: “An email address may be appended to a customer’s record, and an initial email sent requesting opt-in permission for the receipt of offers. Based on the 360° customer view and the application of analytics, the marketer identifies the right offer and the right time to send it. That offer email contains a customizedURL that brings the individual to a webpage that is personalized on thebasis of both data and analytics. The website interaction is logged and becomes part of the updated 360° view, and triggers a call from a sales person offering additional information.”2 A marketing campaign such as this is a great way to create a trusting and lasting relationship with a potential or existing client. Maintainingarelevantdialogue(though not direct) is very conducive to a loyal relationship. Every contact with the customer should not be exclusive tosellingordiscussingtheindustry.Tokeep the modern consumer engaged

Consumers’expectations should not be

out of sync with what they will

receive.

continued on page 20


include messages, notifications, updates, etc., discussing things that are interesting, add value to the consumer’s life and don’t also promote the companyexplicitly, (for example, tips on doing a home inventory in advance of a potentialloss, an article on the importance of winter tires, etc.). This “selfless” tactic will bring about a higher level of trust and convey a sense of honesty and transparency. Manybusinessesunderstandtheneedto be connected with their customersand the general public; however, simple mistakes create the opposite effect.Asking a consumer to promote your business on their personal account without having a proper web presence is futile. Displaying links on your website to social media pages on which your business doesn’t even have an existing page or is inactive is working against you. All it takes for a potential customer

to lose interest is one or two frustrating clicks that lead nowhere. He or she will move on to the next Google-generated link under their search for “house insur-ance.”

The time is now (in fact, it was yesterday)

“Only39%ofCanadiancompaniessay they have the skills internally to build a digital strategy”.5

Head-in-the-sand tactics regarding digitization will be to the detriment of the modern business. Invest in the future and develop a strategy toimplement digital customer engagement as soon as possible … before it’s too late!

Works cited:1.“2016EYCanadianpropertyand casualty insurance outlook,” www.ey.com/ca, 2016.2.KBMGroup,“CustomerEngagement

in Insurance, An Imperative for Achieving Organic Growth,” www.kbm1.com, April 2013. 3.StatisticsCanada,“Average household expenditure, by province (Alberta),” www.statcan.gc.ca, April 2016. 4. Digital Giants, “2013 DigitalMarketinginCanadaResearch Report,” www.slideshare.net/beDigitalGiants,November2013.5.MarcHill.,“DigitalMarketinginCanadaResearchReport:Strategy, Adoption and Barriers,” www.bedigitalgiants.com, November2013.6.MichaelJans,“Here’showtomake your insurance consumer happy. (And how to get rich doing what’s right.),” www.blog.agencyrevolution.com,March01,2016.

CAIB 2 is a great prep course for working in commercialinsurance? CAIB courses can be done in any order and the CAIB 2 and CAIB 3 modules are focused on commercial insurance and commercial liability. Check out ibaa.ca for more information and registration options.

The unemployment rate is now 7.8% (as of June) in Alberta? This is a great opportunity for us to promote new entrants into the insurance industry. With Albertans looking for jobs, your place of business may be the place they choose to settle into.

The great horned owl is theofficial provincial bird of Alberta? The great horned owl eats primarily rabbits, mice and voles. You can tell it is a great horned owl if the owl has large tufts of feathers that look like “horns” on either side of the top of its head. At 17 to 25 inches tall this is definitely a large bird.

IBAA is currently running a charitychallenge? IBAA supports RonaldMcDonald House Charities as our charity of choice. The donation box program that was distributed to all IBAA brokerages thissummer is a way for our membership to work together to do something significant. This program does not interfere with your own individual charity or community efforts but is a way for the brokerage community to have a large impact by working together. Donations can come from your clients, your staff or you.

IBAA fall conference hosted by PYIB is happening in Calgary onNovember 4th, 2016? Please register now at www.ibaa.ca for access to a keynote speaker, concurrent personal lines andcommercial lines education sessions, trade show and casino night (in conjunction with the Calgary Local Council). Come join us to stay in the know and have fun doing it.

Sources: IBAA, IBC, Statistics Canada, National Geographic and the Internet.

Did You Know...



Uber and other ride-sharing driversexperience a unique mixture ofpersonal and commercial exposures. TheSPF9wasreleasedthispastJulyto address this mixture. If purchased by a transportation network company (TNC),theSPF9isdesignedtofunction with the owner’s personal policy and to kick in when commercial coverage is required. How does this coverage work and what does it mean to brokers?

The driver’s risk is broken into four categories that reflect the personal/commercial exposure:

The personal owner’s policy covers exposures until the driver logs into aTNC.Uponlogin,somecoveragefrom the SPF 9 could be available if the owner’s policy does not provide coverage, and the SPF 9 will provide coverage when the driver has accepted

a ride and is en route to pick up. The policy does not cover street-hailed passengers.

What the SPF 9 Meansfor Brokers•TNCswouldpurchasethis commercial policy. The standard application form SAF 9 for this policy is linked to the Superintendent’s bulletin.•Thefollowingendorsementsare approved for use with the SPF 9: SEF 44 (family protection), SEF 23 (mortgage), SEF 21A and 21B (blanket basis fleet), SEF 13D (limited glass), SEF 13H (hail deletion), SEF 20 (loss of use) and SEF 43 R&L (limited waiver of depreciation).•Fleetratingprogramsmaybeused with the SPF 9.•DriversforaTNCshoulddisclose that they are a driver to their broker

NEW! “UBER” CoverageSuperintendent Approves SPF 9for Ride-Sharing Companies and Their Drivers

as this is a material change in risk. Brokers should record and rate the risk appropriately on the SPF 1 owner’s policy. In some cases, the risk may need re-rating as a class 07.•Theall-comersrulewillnotapplytoTNCdriver’spersonalinsurance applications due to the partial commercial exposure.

For full details, read theSuperintendent’s Bulletin:

finance.alberta.ca/publications/insurance/bulletins-notices/2016/

Superintendent-of-Insurance-2016-04-Bulletin.pdf.

For further information, pleasecontactRikkiMcBride,IBAAChiefOperationsOfficer,[email protected]/ 1.800.318.0197 ext. 101/ 1.780.702.3715.

CALM IN CRISISwith Technology


ByMichaelSpiar

The Alberta Broker June – July 2016 25

Over the past several years, the insurance industry has been under enormous pressure to adopt new

technologies in order to better meet the expectations of today’s evolving consumer.Tobesure,thebenefitsof doing so extend beyond customer service—digitalworkflowsimproveefficiency, reduce costs and enable employees to focus on servingcustomers instead of filing paper.Mostimportantly,theyenableour industry to continue serving those customers in the event of a large-scale disaster, and to do so as quickly as possible. It would be the ultimate irony if the industry tasked with providing business interruption insurance were unable to do so as a result of, well, business interruption. As many brokers can attest, just because their office is damaged as a result of flooding or wildfire, the number one priority must continue to be serving customers and helping them get back on their feet.“OurofficeinFortMcMurrayislocated right downtown, so we were evacuatedinearlyMayalongwitheverybodyelse,”saysChrisFloyd,presidentofTWInsuranceBrokers.“WejustreopenedtheweekofJune13. And yet, we had completebusiness continuity.”Toaccomplishthis,TWInsuranceequips its staff with laptops rather than traditional workstations,enabling them to connect to their brokermanagementsystem(BMS)toaccess customer data and documentsno matter where they are, and shifts workload to its other offices as needed. “They can connect remotely totheBMSandtoourtelephonyand do so in the course of a normal workday, not just in catastrophes,” adds Floyd.InthecaseofFortMcMurray,TWInsuranceensuredthatbrokersequipped with laptops were presentat both the Edmonton and Lac la

Biche evacuation centres, available to support customers in need. The floods of 2013 affected many other brokerages in a similar way, includingCalgary-basedBlueCircleInsurance.“We were out of our office for about a month, and during that time, of course, westill had to work,” says Dirk Bruggencate, partner. “We had people working from home, gathered in our president’s house and took full advantage of technologies such as eDocs and eSignatures tocontinue serving clients. We were able tosend them documents in a timely manner,they were able to sign those documents in a timely manner and people were extremely happy with that.” For Floyd, technology is just another way for brokers to put people at thecentreofwhattheydo—particularlyduring periods of high demand suchas during the wildfire. “We madecommunication a top priority. Email, Twitter,Facebook,websites,theseareallgreat ways to reach people. eDocs and eSignatures are fantastic for continuing to carry on the business of insurance, but it all comes back to putting the customer first.”TWInsurancealsouseditswebsiteand social media platforms to go beyond

the business of insurance, supporting customers on a more personal level. “For customers who need service on their policy, eDocs and eSignatures are great, but others just need emotional support during a crisis,” adds Floyd. “We have a partnership with Graham Guidance, a counseling service, and were able to put their advice andresources right on our website and social media.” It is not just brokers who benefit from technologyinacrisis.ClaimsmanagementfirmCrawford&Companymade headlines last September when it used an aerial drone to surveydamage at a fire-loss site in Waterloo, Ontario. The potential for drones in insurance is vast. “It could be on a largecommercial loss such as a warehouse or industrial site, where access may be delayed due to safety concerns or clean up,” said Pat Van Bakel, president and CEO.“Adronecouldgivealmostinstant information on the extent of damages.” All IBAA members are automaticallymembersofCSIO,andmayaccesseducational resources about technologyincluding videos, webinars, white papers and articles on many of the technologies mentioned here on our website, including eDocs andeSignatures. Visit www.csio.com to learn more.

MICHAEL SPIAR,Member Engagement &

Communications Specialist,CSIO

Technologyis just another wayfor brokers to put

people at the centre of what they do–particularly during

periods of highdemand such as

during thewildfire.

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At some point you will have to have a difficult conversation at work. There’s just no way around it. Whether you’re giving not-so-positive feedback to an employee, broaching a sensitive issue with a coworker or even confronting a moody employee, there will come a time when you need to bite theproverbial bullet and just say what needs saying. Holding a tough conversation is not a task for the timid. There’s an art to doing it well (i.e., in a way that doesn’t make the other person cry, explode, or tune out what you’re saying). But if you haven’t yet mastered that art, you’ll likely do okay if you focus on this key phrase: Seek to complete, not compete. People tend to enter tough conversationsfromaplaceofcompeting—they’redead-set on proving themselves right and the other person wrong. The other person will focus on your tone and demeanor, not your message, and you end up harming the relationship. But approach the conversation from a place of “Okay, I’m seeking more information to complete myunderstanding,” and it will go much more smoothly. And it’s much more likely that what you need to happen will happen. Instead of setting up a blame/defensiveness cycle, you want to help

theotherperson.You’relookingforawin/win outcome, not a situation in which someone has to lose if you win. You’renotlookingtopunish,embarrass,or put the person “in their place.” If this is your mindset, the conversationabsolutely will fail. Here are three tips to help youcomplete, not compete:

1. Ease into it. When you need to have a difficult conversation, it’s often wise to “ease” into the tough topic. Talkaboutsomethingpositiveorneutral so that the other person feels at ease and is not immediately put on the defensive. When people feel that they have been “attacked out of nowhere,” they don’t do their bestlisteningorthinking—whichwillimpair your efforts to “complete.” At my firm, Studer Group, we start our rounding by asking a relationship question like, “How was your weekend?”or, “Do you have new pictures of your grandchildren?” or, “How about that ball team?” Questions like these can pave the way for a more productive,less contentious discussion.

2. Say, “Yes, and...” instead of, “Yes, but...” You’llfindit’smuchmoreproductive to have a tough conversationif you use the Yes, and syntax.

Consider,“Suzy,you’redoingagreatjoblearningthatnewtask,BUTyou’dfinish more quickly if you changed the sequence of steps a little.” The BUTdiminishesthecomplimentwithwhich the sentence started. Doesn’t this sound more positive? “Suzy, you’re doing a great job learningthatnewtask,ANDIthinkyou’dbeeven more successful if you change the sequence of steps a little.” When I am training leaders on how to master tough conversations, I remind them to keeptheBUTsoutoftheconversation!”

3. Speak respectfully,especially when disagreeing. Trustisessentialinnavigatingdifficultconversations (not to mention creatingthe kind of culture that leads to businesssuccess).Trustandrespectarecloselytied, and both are necessary for “completion” to take place. It’simportant to hold up the mirror during difficult conversations and, if necessary, adjust your behaviour tocreate a safe, respectful environment. Let the Golden Rule be your guide. Ask yourself, How would I feel ifsomeone else talked to me this way? Would I be motivated to work toward resolution, or would I feel the need to defend myself ?

In ToughConversations,

Seek toCOMPLETE,

Not COMPETE. Difficult conversations are necessary

—at least if you want people to correctmistakes, learn and grow. But they

can be less difficult if you justremember one critical rule:

You’re trying to help, not win.

By Lynne Cunningham


“It can be especially tricky to keep the conversation respectful if you find that you must disagree with the other person. In this case, say, “I hear what you’re saying. I’d like to respectfully disagree with your conclusion or the process you are suggesting.” That’s so much more positive than attacking, yelling, screaming or stomping out of a meeting ... or even simply sitting and seething. These three tips will help you create a safe environment. That’s important, because trust, respect and safety are three legs of a stool that must be in balance to master tough conversations.If you can create a safe environment, you can talk with almost anyone about almost anything. People will feel safe when they think you respect themandyoucareaboutthem.Notcoincidentally, when respect and care are present, you have the raw materials for a vibrant, growth-oriented culture and an incredibly successful company.

IFS proudly welcomes its new president,Jai M. Laba

Jai has an extensive insurance career as both aSupplier and a Broker. His many years in the industry include over eight years with RSA in several senior leadership roles and most recently as National VP Small Business at Arthur J. Gallaher Canada.

With his solid experience and adaptive sales approach, we know he will be a dynamic addition to themanagement team.

www.ifs-� nance.com1-800-565-1153jai@ifs-� nance.com

JAI ALBA, BComm, CAIB

About the AuthorLynneCunningham,MPA,isaninternationally renowned speaker, coach and author. A leader in health-care communication, she has more than four decades in the industry.

She is the author of TakingConversations from Difficult toDoable: 3 Models to Master ToughConversations (2016).


“Those who cannot remember the past are condemned to repeat it”

– George Santayana

It may seem strange to read an articleabout what precautions you should take when facing a hardening market. Currently,itmaynotseemthatmuchhas actually changed with regard to rates or the ability to obtain coverage in the marketplace. However, since there is no predetermined moment when exactly the market will shift, it seems reasonable to revisit past lessons learned during hard market conditionswhich may have long faded from our memories—particularlywhensomeof the lessons learned resulted from the failure to follow procedures that should be utilized in any market conditions. One of the conditions we saw in the hard market was a change in the customers’ buying habits as a result of increased insurance costs. While this change in buying habits was driven

by increased insurance costs, we see similar changes during times ofeconomic downturn when consumers face budget concerns. During a hard market and similarly during a downturn in the economy, the insurance customer may approach purchasing insurance in a manner similar to pre-paying gasoline at astationpump.Customersmaycometothe broker and insist they only want or need a set amount or type of coverage. Despite the broker’s better judgment, a sale may be made of a policy that is not quite adequate for the customer’s needs. What follows is just one example of a lesson learned from a broker whose customer was trying to save a few premium dollars. A local merchant contacted the broker to obtain coverageon a building he purchased. The brokerobtained property coverage for a setamount of coverage based on a value that the customer insisted was adequateenough. The policy was renewed for

several years and limits were increased by the carrier to account for inflation.After approximately five years of renewals,the building was totally destroyed by fire and the carrier paid its limits. However, there was a shortfall in the amount of coverage on the building. Thecustomer stated that the broker never advised him that he was underinsured. The broker denies this. The broker says she had several conversations with the customer, advising her client that he was most likely underinsured and that the client was not interested in increasing the limits. Unfortunately, no letters to the customer were sent documenting the broker’s advice and, while some notes were found in a file from the first meeting indicating that the broker was instructed to obtain a set amount of coverage, the notes were sketchy andsomewhat ambiguous. Thus the matterbecame a credibility issue, totallydependent on which individual the jury believed. Over six figures were paid in settlement of this claim.

Know E&O Annette Hollingsworth

HISTORY LESSONS


What was the lesson that should be learned from this bit of history?Documentation of the customer’s requestand the broker’s recommendationshould be made both at the initial sale and during subsequent renewals. Another phenomenon experienced during economic downturns or when insurance rates rise is that clients will want to reduce, eliminate or lapse coverage they previously carried. A customer who may have carriedumbrella insurance in previous years, or who may have had a floater forcertain valuables, will decide the extracoverage is no longer worth the expense.They request the broker cancel coverage,reduce limits or increase deductibles. While this will save the customer money in the short run, when a loss occurs, the broker may find that the customer has conveniently forgotten why the coverage changed. AmanufacturerhadaCGLandumbrella policy secured from hisbroker. The manufacturer ceasedoperationsfilingChapter11.Thepolicies were cancelled for nonpaymentof premium, while reorganization took place.NoCGLorumbrellapolicieswere in effect for approximately tenmonths until the manufacturer beganoperations again. During the gap in coverage, a purchaser of the manufacturedproduct suffered a facial laceration when using the product. Damages in the underlying products liability case were substantial. The manufacturerargued that our insured (the brokerage)told them the items the company had already manufactured were covered andthat it did not need to maintain the liability coverage until manufacturingoperations began again. Our insured was sued. There was no documentation indicating any discussions the broker may have had with the manufacturer regarding coverage or lack thereof. A large settlement was paid on this claim. During times of economic downturn ora hardening market, it is understandablethat consumers may have to make choices contrary to the recommendations

of their broker. When the policyholder takes a position contrary to your professional assessment, explain and document the scope of any coverage changes requested. If the coverage chosen is a reduction from prior coverage,ask the policyholder to acknowledge the change request in writing andretain the documentation as a permanentpart of the file. Learn from the lessons of others, so the past will not be repeated.

ByAnnetteHollingsworth,J.D.,CPCU,CLU,ARC,VicePresident,SwissReCorporateSolutions

Insurance products underwritten by WestportInsuranceCorporation,OverlandPark,Kansas,amemberofSwissReCorporateSolutions.Copyright©2016,Big“I”Advantage,Inc.and(SwissCorporateSolutionsand/orWestportInsuranceCorporation).All rights reserved.


PYIB Perspective Jonathon Brown

Every day we are presented withopportunities for memorableexperiences with those whom weinteract. Each time we deal with members of the public, we should stand out as exceptional for our great service. We want to be the person our clients remember well enough that, when someone starts to talk about insurance, they will recommend us. The ability to connect may have been easier in years past when clientsgenerally came into our brokerages and met us face to face. However, as we continually move toward a time when very few of our clients will ever step foot in our offices, we need to reachouttotheminotherways.Tocontinue to provide the memorable service that brokers should be famous for, we will need to start thinkingoutside the box that is our offices. One strategy is to become experts in the use of multimedia platforms to reach out to our clients at any time,

and where they can reach out to us when convenient for them. We live in an age of instant gratification, so the concept of regular business hours is increasingly becoming a thing of the past. People expect to be able to get anything done at any time of day or night.AccordingtotheCIRAFactbook,CanadarankssecondamongG8 countries in Internet penetration, and“BritishColumbiaandAlbertalead the nation in household internet access with 86 percent.” If we are not doing all that we can to be a part of this amazing number of connected people today, we risk being forgotten. We should be taking full advantage of the tools at our disposal. Some avenues of contact could be our websites to collect quote information, mobile apps for claims situations and FacebookandTwittertoeducateour clients on how coverage works. While some may see these avenues ofcommunication as an unnecessary

waste of time, I strongly believe that they are the wave of the future forclient interactions. Toremainontheforefrontasbrokers,we need to educate ourselves. We need to employ social media to obtain the greatest impact for time spent. Each brokerage should appoint at least one person who is fluent in using digitalcommunication to interact with clients.Eventually, we will all need to be expertsin these methods of communication as our client base becomes increasingly online oriented. We are seeing a rising trend towards online marketing from many direct writers and brokers alike. When used properly, online marketinghas the potential to be an incredible method to broaden our client base and market impact without needing tocommit high levels of funds towards staffing increases or traditionalmarketing campaigns. Togetstarted,answerthesekeyquestions:

Stand OutFrom theCrowd


JONATHAN BROWN,CAIB

[email protected]

•Whatismyclientbase,andhowdo people want to interact with me? •Whatonlineplatformorplatforms am I going to use to target my current and potential clients? •WhatdoIneedtolearn,inorderto have the greatest impact for the time I have available to commit? Once these are identified, you can start to develop an effective online resource. If we want to stand out from our competition, we need to focus on the way we handle our online interactions and be the best that we can. We need to be quick to respond to requests, accurate in the information we request and provide, and professional in our conduct. At the same time, we still must provide clients, both online and in person, the personalized service that makes dealing with a broker the best choice for them. Among the many methods out there for the public to obtain insurance,people are increasingly choosing onlineoptions for all of their transactions.However, online purchasing can lose that personal touch that we need to build relationships. If so, we becomejust one more option on a search engine. We need to find ways to overcome the challenges of a digital world while taking full advantage of the amazing opportunities that we have to impact a larger client base. Remember, we all have the same opportunities to be memorable to our clients; what we do with them is up to us.


Who? What? Where? Tracy Fata

Northern

TRACY FATARegional Manager of

Branch Operations,Portage Mutual

Insurance [email protected]

Hello to you all! This is my inaugural columnfor“NorthernExposure”andIam very excited to be updating you on allthechangesgoingonintheNorthernAlberta insurance community. I don’t have a lot of news to share right now as most of you don’t know that I am collecting all the information on the movers and shakers out there. Please contact me by email for any items thatyoufeelarenewsworthyfortheNorthernAlberta area. Darrell Verbonac has been doing a great job of keeping you apprised of the changes that have been ongoinginhis“ChinookCountryReport” column, so there is not much to report for this issue. There have been a few industry golf tournaments: the Blue Goose InterpondtournamentwasinLacombeonJune2,attendedby58golfers;theNortheastIBAA local council held their tournamentonJune22inBonnyvillewith36golfers in attendance; and the Insurance Institute golf tournament took place on July18attheLinksinSpruceGrove,but we’ve gone to press before I could get the final attendance figures. That darnfireinFt.McMurrayistakingitstoll on the industry events with companypeople and adjusters busy taking care of

theirvaluedclients.Goteam—youguysare doing a great job getting that city ready to recuperate. The Blue Goose will be convening in St.LouisinJulyforitsannualconvention.If you haven’t heard yet, Edmonton Pond will be hosting the convention in July2018;savethedate! The Edmonton Insurance Association delegatesmetinTorontoforthe50thannual general meeting and conventionoftheCanadianAssociationofInsuranceWomen.

I look forward to hearing from you with respect to changes happening in the industry and will more to report in the next issue. Hope your summer is going well!

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Professional Development Ellen Quigley

Insurance Brokers Association of Canadaoffersthreenationallyrecognizeddesignations that represent the gold standard of professional achievement forCanadianinsurancebrokers:CanadianAccreditedInsuranceBroker(CAIB),CanadianProfessionalInsuranceBroker(CPIB)andCanadianCertifiedInsuranceBroker(CCIB).These courses are designed by brokers forbrokers. Successful completion testifiesto the advanced insurance-broker knowledge and practical skill that these brokers have attained in personal and commercial lines.CAIB,aprerequisitefortheothertwo designations and our most populardesignation program, delves into generalinsurance (personal, commercial, farm and travel) and brokerage management The four courses (two of them on commercial insurance) can be taken in any order and through a variety of learning styles: immersion (one week), fast-track (four Saturdays), live online

(eight lunch-time sessions with plans for an online forum) or self-study.CPIB,thenextlevelofbrokerprofessionalism, promotes specializationin personal lines, commercial lines or brokerage management. With three mandatory courses and three electives, theCPIBprogramtrulysupportsyour unique strengths and interests. Chooseoneofthethreecoursesthatdetermine your stream and electives: advanced personal lines, advanced commercial lines or business strategies (brokerage management). The courses can be taken in any order, but many prefer to start with the two courses commontoallCPIBstreams:Law&EthicsandClaimsManagement& Administration. These two courses can be taken live online (eight or ten lunch-time sessions with plans for an online forum) or through self-study. The three stream-based courses are currently available only through self-study. Based on demand, we’d love to

offer these courses through live online study or other methods to suit student needs.CCIBisthecapstonedesignationcourse. Prove that you are the go-to person for complicated insurance coverage.CCIBisthehighestnationaldesignation attainable and denotes a professional standard of theoretical andpractical excellence toward which all insurance brokers may strive. After ashort-answer and an essay-style exams, you present an insurance proposal just as you would to a client. This final exam can be written or taken orally before a panel of judges. The program is set up as three exam challenges and hasnoclassesortextbooks.You,yourinsurance reading and your experience are the source of knowledge.

Congratulations to Our 2015–2016 CAIB Graduates! We’re very proud of the brokers below who worked long and hard to attain their designations!

Achieving the Gold Standard

ELLEN QUIGLEYComminications Lead,

[email protected]


HONOURS GRADUATESJaelynHelfrich,CAIB,

MedicineHatLocalCouncilMarleneKosc,CAIB,

CalgaryLocalCouncilChelseaMacaulay,CAIB,

EdmontonLocalCouncilRaywinRam,CAIB,

EdmontonLocalCouncilJordanSchnoor,CAIB,

CentralLocalCouncilSherriStuebing,CAIB,

CalgaryLocalCouncilYongZhang,CAIB,

EdmontonLocalCouncil

GRADUATESAllisonAffonso,CAIB,

CalgaryLocalCouncilAliAmeer,CAIB,

EdmontonLocalCouncilPaulApostolescu,CAIB,

EdmontonLocalCouncilNicoleBoucher,CAIB,

EdmontonLocalCouncilCamCervo,CAIB,

LethbridgeLocalCouncilNicholeChollak,CAIB,

CalgaryLocalCouncil

MichelleClark,CAIB,NorthEastLocalCouncil

JoshCudmore,CAIB,EdmontonLocalCouncil

TravisHansen,CAIB,EdmontonLocalCouncil

JaelynHelfrich,CAIB,MedicineHatLocalCouncil

KaylaJohnson,CAIB,EdmontonLocalCouncil

OlenaKarabash,CAIB,CalgaryLocalCouncil

MichaelKlassen,CAIB,EdmontonLocalCouncil

MarleneKosc,CAIB,CalgaryLocalCouncil

MarcellaLazarick,CAIB,NorthEastLocalCouncil

BillieJeanLines,CAIB,PeaceRiverLocalCouncil

ChelseaMacaulay,CAIB,EdmontonLocalCouncil

ScottMarit,CAIB,EdmontonLocalCouncil

NadineMuise,CAIB,EdmontonLocalCouncil

AmandaNobbee,CAIB,EdmontonLocalCouncil

SaraNessman,CAIB,LethbridgeLocalCouncil

RaywinRam,CAIB,EdmontonLocalCouncil

PearlRice,CAIB,CalgaryLocalCouncil

AnnaMarieRickard,CAIB,CalgaryLocalCouncil

MarySaloff,CAIB,CalgaryLocalCouncil

GertrudesSantos,CAIB,CalgaryLocalCouncil

JordanSchnoor,CAIB,CentralLocalCouncil

MatthewSilver,CAIB,CalgaryLocalCouncil

SherriStuebing,CAIB,CalgaryLocalCouncil

HeatherSwain,CAIB,CalgaryLocalCouncil

LisaWolanski,CAIB,EdmontonLocalCouncil

YongZhang,CAIB,EdmontonLocalCouncil

AshleyZiprick,CAIB,NorthEastLocalCouncil

RenataDeRoos,CAIB,EdmontonLocalCouncil

LaurieMcGouey,CAIB,EdmontonLocalCouncil


Viewpoint Lorne Perry

In the digital marketplace, brokers are uniquely qualified to excel. Specific technological expertise is not the differentiator, nor is it any particular specialization or market segmentation. The advantage brokers possess is theentrepreneurial innovation thatcharacterizes the profession. An appetitefor independent strategy and self-motivation means that brokers are well-suited to adapting to varying customer expectations. This is, of course, nothing new. Brokershave always readily incorporated new

tools into their businesses wherever they served to improve customer service and enhance communications. Over time, the telephone replaced many in-person interactions, asconsumers’ lives became busier and less amenable to visits across the kitchen table. In the interest of speed, written communications morphed withtechnology—fromhandwrittennotes to typed letters, faxes, emails and texts. And there is no doubt that record-keeping is more consistent andefficient now that three-part speedi-memosand bulky paper files have disappeared,

supplanted by computer data andimages, EDI and eDocs.Neverbefore,though,hasthepaceof change been so rapid. And never have the stakes been so high.Justastheonlineworldhasbloomedeverywhere, brokers are now interactingwith consumers via an astonishingarray of digital accesses. Where even two years ago digital capabilitiesfor brokers needed to be expensivelycustom-built, brokers can now purchaseout-of-the-box products to give their customers digital options. Beyond basicelectronic messaging and marketing,

Embracing theDigital World


LORNE PERRY, CAIBPresident,

Insurance BrokersAssociation of Canada

choices range from simple optimizationof websites for mobile devices, to mobile apps for claims and auto ID cards, to full customer portals where clients can access their policy history anddocuments.Manybrokeragesareforming new partnerships, including collaborations with forward-thinking, broker-committed insurers, to create online point-of-sale opportunities, either through custom applications or implementations of pre-built platforms.Each brokerage’s digital needs are dictated by its own unique market appetite. Other digital tools are enhancing brokerage customers’ experiences as well. The use of electronic payments and e-signatures is becomingcommon-place, while third-party data resources can reduce the administra-tive process of information gathering. Applications linking individual devices to the Internet of Things are increasing consumers’ involvement in their own risk management.

Still, change is not simple. With the growing number of options available, brokers have both the luxury and the challenge of choosing which digitaloptions best fit with their future plans. It is not about digital strategy for the sake of using digital tools; the real question is what a given brokerage’sstrategy will be, and then how to best make use of available digital, and other,methodologiestoexecuteit.Carefulthought and planning are needed.Part of the challenge can be knowing where to start a research process to collectunbiasedinformation.IBACis helping brokers with an exclusive brokers-only online resource centre withinthenewIBACtechwebsitelaunchinglaterthissummer.Moreinformation on site access will follow in the coming weeks. Some best practices are also required for any digital strategy to succeed. The consistency and accuracy of data in abrokerage’s systems, whether transferred

electronically from carriers or other sources, or entered by brokerage staff, is essential. Further, brokerage systems must stay current with softwareupdates in order to leverage new features. Brokers’ digital offerings, however, remain distinct from those of their competitors.Nomatterhowmodesof communication change, thedistinguishing unique values of choice, objective advice and advocacy persist in the digital context. Whatever the medium, preceding generations of brokers would still recognize a familiar theme in the new digital tools, that for brokers, serving consumers’ own interests comes first.


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