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ISSUE 8.05

DON’T GET LEFT BEHIND

What brokers need to know about incorporating

the latest tech tools

PROFESSIONAL LIABILITY

Expert advice on navigating an increasingly tough

segment of the market

NEW FRONTIERS FOR SPACE INSURANCE

How insurers are approaching the dawn of commercial

space travel

Our underwriters and our claims team work as one with you – ensuring

not only policy wording, but coverage intent, preferred claims resources

and strategies, are well understood from the start. So when you have a

claim, we’re all ready to move forward and achieve the best possible

resolution, together.

Same team.

www.bhspecialty.com

The information contained herein is for general informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product or service. Any description set forth herein does not include all policy terms, conditions and exclusions. Please refer to the actual policy for complete details of coverage and exclusions.

BROKERS

Do you need to quote your risks within minutes?With APRIL ON, our new broker online quoting platform, we can support your digital transformation.

Contractors Student Housing

Personal Marine

april-on.ca

and many more...

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https://april-on.ca/

Our underwriters and our claims team work as one with you – ensuring

not only policy wording, but coverage intent, preferred claims resources

and strategies, are well understood from the start. So when you have a

claim, we’re all ready to move forward and achieve the best possible

resolution, together.

Same team.

www.bhspecialty.com

The information contained herein is for general informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product or service. Any description set forth herein does not include all policy terms, conditions and exclusions. Please refer to the actual policy for complete details of coverage and exclusions.

BROKERS

Do you need to quote your risks within minutes?With APRIL ON, our new broker online quoting platform, we can support your digital transformation.

Contractors Student Housing

Personal Marine

april-on.ca

and many more...

IFC-01.indd 9IFC-01.indd 9 16/09/2020 3:06:23 am16/09/2020 3:06:23 am

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18

ISSUE 8.05

BROKERS ON MGAs

2017

FIVE-STAR WHOLESALE BROKERS & MGAs

2019

Lorem ipsum

FIVE-STAR MGAS2020

22 When disaster strikesCansure is your new best friend!

www.cansure.com

portal.cansure.com

We know that dependable, responsive, quality claim services are important in your placement decisions. That’s why Cansure employs 16 claims personnel to ensure our service standards are met. We will handle your client’s claims, quickly, from start to finish. We’re proud to be your choice for MGA of the Year!

Service | Speed | Expertise

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FEATURES

TOUGH TIMES AHEAD COVID-19’s economic fallout has hit the professional liability market hard – but there are a few things brokers can do to ease the pain

CONTENTS

CONNECT WITH USGot a story or suggestion, or just want to find out some more information?

twitter.com/InsuranceBizCA

CHECK IT OUT ONLINE

INSURANCEBUSINESS.CA

facebook.com/InsuranceBusinessCanada

2 www.insurancebusiness.ca

PEOPLE

FILLING A GAPA passion for life insurance helped Joshua Krenus find a niche for his thriving brokerage

SPECIAL REPORT

FIVE-STAR MGAsBrokers name the best MGAs for technical knowledge, underwriting turnaround, product range, pricing and more

FEATURES

BROKER OF TOMORROWWhy incorporating technology is a must for modern insurance brokers

PEOPLE

INDUSTRY ICONAlthough Sukhdeep Kang left law enforcement behind to lead an insurance brokerage, her passion for justice remains a driving factor in her life

UPFRONT04 EditorialDonald Trump’s TikTok brouhaha and its implications for cyber insurers

06 StatisticsKey data that should be on your radar

08 News analysisA new era of commercial space flight is here – so how are insurers responding?

10 IntelligenceThis month’s big movers, shakers and new products

12 Technology updateArtificial intelligence promises to simplify the laborious task of checking policy documents

14 MGA updateMGAs can help connect the dots of a multinational insurance package

16 OpinionHow the insurance industry’s renewed focus on digital transformation is playing out in the claims space

PEOPLE48 Other lifeUp in the air with insurance executive, frequent traveller and budding pilot Kevin Lea

38

36

33

SPECIAL SECTIONCYBER INSURANCE

REPORT 2020

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https://www.insurancebusinessmag.com/ca/

When disaster strikesCansure is your new best friend!

www.cansure.com

portal.cansure.com

We know that dependable, responsive, quality claim services are important in your placement decisions. That’s why Cansure employs 16 claims personnel to ensure our service standards are met. We will handle your client’s claims, quickly, from start to finish. We’re proud to be your choice for MGA of the Year!

Service | Speed | Expertise

IB FP Ad - Pug Chews Shoes Claims Ad - (Sept 2020).indd 1IB FP Ad - Pug Chews Shoes Claims Ad - (Sept 2020).indd 1 8/25/2020 4:00:37 PM8/25/2020 4:00:37 PM02-03_TOC-SUBBED.indd 302-03_TOC-SUBBED.indd 3 16/09/2020 4:10:50 am16/09/2020 4:10:50 am

https://cansure.com/

EDITORIALUPFRONT

EDITORIALManaging Editor

Paul LucasEditor

Bethan MoorcraftWriters

Lyle Adriano, Ellen Burkhardt, Tom Goodwin, Alicja Grzadkowska, Kasi Johnston, Gabriel Olano,

Ryan Smith, Ksenia Stepanova, Mia Wallace

Copy Editor Clare Alexander

CONTRIBUTORS

Sasha Korol, Aytekin Tank, John Eades, Darrell Hardidge

ART & PRODUCTIONDesigner Joenel Salvador

Production Coordinator Kim KandravyTraffic Manager Ella Dayandante

SALES & MARKETINGNational Account Manager Eric Langille

Business Development Manager Desiree McCue Sales Manager Dane Taylor

Vice President - Sales John MackenzieGlobal Head of Communications Adrijana Monevska

Project Coordinator Jessica Duce

CORPORATEPresident & CEO Tim Duce

Office/Traffic Manager Marni ParkerEvents and Conference Manager Chris Davis

Chief Information Officer Colin ChanHuman Resources Manager Julia Bookallil

Global CEO Mike ShipleyGlobal COO George Walmsley

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

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The quick rise and potential fall of TikTok is important because it revolves around data – an area of increasing concern for cyber insurers

Dancing grandpas, baby-bottle flips, epic lip syncs, celebrity clips – you can find it all on TikTok, a user-generated short-video app owned by Chinese firm ByteDance. In recent months, TikTok has exploded into an internet

sensation, surpassing 2 billion downloads worldwide and around 800 million monthly active users. But the Chinese app’s heyday has been short-lived.

On August 7, US president Donald Trump issued an executive order that would ban TikTok from operating in the US unless the social media app is sold by Byte-Dance within 45 days. The Trump administration cited concerns over national security, alleging that the app censors content and could allow the Chinese govern-ment to access Americans’ private data. The US is not alone in scrutinizing TikTok: India recently blocked the app completely amid rising tensions with China over the two countries’ disputed border in the Western Himalayas. Canada is among the other countries, including Australia and the UK, that are looking closely at whether the ownership of personal data leaves their respective countries via the app, but so far they have not threatened outright bans.

The quick rise and potential fall of TikTok is important because it revolves around data – the privacy of data, the protection of data, the storage of data and, perhaps most importantly, the politics of data. These are all areas of increasing concern for cyber insurers, who must find solutions to protect companies that handle, store and use data in their daily operations. Today’s technology- and data-heavy firms are not only subject to increasingly stringent and punitive data privacy laws, but they must also contend with volatile international relations, trade disputes and arguments around intellectual property – and those are just the visible threats.

Under the surface, a much darker cyber force is bubbling away. A growing global network of threat actors is looking to exploit cyber vulnerabilities in order to steal data for financial and/or political gain. Not a week goes by without news of a data breach, a ransomware attack or some other cyber-related incident. The challenge for companies and cyber insurers alike is that the tactics used by threat actors keep evolving. While cyber may no longer be considered an emerging risk, new exposures in the cyber realm will continue to emerge for many years to come.

The team at Insurance Business Canada

The front lines of the data battlefield

Economical Insurance includes the following companies: Economical Mutual Insurance Company, Family Insurance Solutions Inc., Sonnet Insurance Company, Petline Insurance Company. ©2020 Economical Insurance. All Economical intellectual property, including but not limited to Economical® and Vyne™ related trademarks, names, and logos are the property of Economical Mutual Insurance Company and are registered and/or used in Canada. All other intellectual property is the property of their respective owners.

property | auto | business

RESILIENT FOR CANADIANS

We’ve been strategically investing to transform and improve the experience we deliver to customers and brokers through innovation in our systems and processes. Everything we’ve done to build a strong foundation for tomorrow

has made us steady and resilient in the face of today’s unique challenges.

Insurance can be humaneconomical.com

A member of the #TeamEconomical Broker Assist Centre

04-05_Editorial-SUBBED.indd 404-05_Editorial-SUBBED.indd 4 16/09/2020 2:52:12 am16/09/2020 2:52:12 am

EDITORIALManaging Editor

Paul LucasEditor

Bethan MoorcraftWriters

Lyle Adriano, Ellen Burkhardt, Tom Goodwin, Alicja Grzadkowska, Kasi Johnston, Gabriel Olano,

Ryan Smith, Ksenia Stepanova, Mia Wallace

Copy Editor Clare Alexander

CONTRIBUTORS

Sasha Korol, Aytekin Tank, John Eades, Darrell Hardidge

ART & PRODUCTIONDesigner Joenel Salvador

Production Coordinator Kim KandravyTraffic Manager Ella Dayandante

SALES & MARKETINGNational Account Manager Eric Langille

Business Development Manager Desiree McCue Sales Manager Dane Taylor

Vice President - Sales John MackenzieGlobal Head of Communications Adrijana Monevska

Project Coordinator Jessica Duce

CORPORATEPresident & CEO Tim Duce

Office/Traffic Manager Marni ParkerEvents and Conference Manager Chris Davis

Chief Information Officer Colin ChanHuman Resources Manager Julia Bookallil

Global CEO Mike ShipleyGlobal COO George Walmsley

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

Insurance Business Canada is part of an international family of B2B publications, websites and events for the insurance industry

Insurance Business America [email protected] T +1 720 316 0151

Insurance Business UK [email protected] T +44 20 7193 0935

Insurance Business Australia [email protected] T +61 2 8437 47OO

Insurance Business NZ [email protected] T +61 2 8437 47OO

Insurance Business Asia [email protected] T +61 2 8437 47OO

Economical Insurance includes the following companies: Economical Mutual Insurance Company, Family Insurance Solutions Inc., Sonnet Insurance Company, Petline Insurance Company. ©2020 Economical Insurance. All Economical intellectual property, including but not limited to Economical® and Vyne™ related trademarks, names, and logos are the property of Economical Mutual Insurance Company and are registered and/or used in Canada. All other intellectual property is the property of their respective owners.

property | auto | business

RESILIENT FOR CANADIANS

We’ve been strategically investing to transform and improve the experience we deliver to customers and brokers through innovation in our systems and processes. Everything we’ve done to build a strong foundation for tomorrow

has made us steady and resilient in the face of today’s unique challenges.

Insurance can be humaneconomical.com

A member of the #TeamEconomical Broker Assist Centre

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http://economical.com/

UPFRONT

STATISTICS


GLOBAL INSURTECH FUNDING REBOUNDS

71%Quarterly increase in insurtech funding

in the second quarter of 2020

$1.56 billion Total amount of global insurtech

funding in Q2

Source: Willis Towers Watson Quarterly InsurTech Briefing, Q1 and Q2 2020; all figures in US$Source: Resilient For Now: A Second Wave Could Eat Into Insurers’ Capital, S&P Global Ratings, July 2020

4 Number of insurtech mega-deals (over

US$100 million) completed in Q2

$912 millionAmount of global insurtech funding

in the previous quarter

CRISIS COULD ERODE CAPITAL BUFFERSThe economic fallout from the COVID-19 crisis could soon eat into many insurers’ capital buffers, S&P Global Ratings warned in mid-July. While S&P noted that insurers’ capital strength helped them weather the first wave of the pandemic, it expects asset value declines, rating migrations and heightened default rates to erode capital buffers as the pandemic rages on.

SIZE OF INSURERS’ CAPITAL BUFFERS, 2019

The global insurance industry was growing strong through 2019, when premiums rose by 4.4% – the highest rate of growth since 2015. However, the COVID-19 outbreak has turned everything on its head: Allianz’s latest Global Insurance Report predicts that premium income will decrease by 3.8% worldwide this year, a plunge that’s three times larger than the one the industry experienced during the global financial crisis in 2008. However, Allianz noted that while the pandemic has wreaked havoc on the economy, it is also expected to reinforce several insurance trends, including the push toward digitalization and an increased focus on emerging Asian markets, along with heightened significance of environmental, social and governance (ESG) factors as a driver for insurance business.

COMPOUND ANNUAL GROWTH RATE OF INSURANCE PREMIUMS

COVID-19 HAMPERS GLOBAL INSURANCE GROWTH

Less than 0% 0%–4% 4%–7% 7%–10% 10%–15% More than 15%GLOBAL

NORTH AMERICA

EMEA

APAC

LATIN AMERICA

Global

0%

5%

10%

15%

3.2%4.3% 4.4%

United States

0%

5%

10%

15%

2.0%4.2% 3.5%

North America

0%

5%

10%

15%

2.2%4.2% 3.5%

2009–2019 20192020–2030 (projected)

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www.insurancebusiness.ca 7

Source: Beazley Breach Insights, June 2020

CONSTRUCTION RATES RISEDespite construction capacity in the London international market remaining stable at around $3.7 billion, the uncertainty and project delays caused by the COVID-19 pandemic have driven rate increases by an average of 15% to 20%, according to a July analysis from Willis Towers Watson.

Source: Global Construction Rate and Trend Update, Willis Towers Watson, July 2020

CYBERCRIMINALS PREYING ON FEAR OF COVID-19 Cybercriminals are increasingly using the fear and uncertainty swirling around the COVID-19 pandemic to attack victims, according to Beazley’s latest Breach Insights report. Both ransomware and phishing incidents have risen since the onset of COVID-19, and Beazley has also recorded a significant jump in phishing messages purporting to offer information about the pandemic.

0%

10%

20%

30%

40%

50%

General liability Excess/umbrella Annual program builder’s risk/CAR

Single project builder’s risk/CAR

Professional liability

CONSTRUCTION RATE INCREASES, LONDON INTERNATIONAL MARKET

Source: Allianz Global Insurance Report, July 2020

25%Quarterly increase in ransomware incidents in Q1 2020

156%Quarterly increase in ransomware incidents in the manufacturing sector

16%Quarterly decrease in business email compromise scams in Q1

100%+Increase in new COVID-19-related phishing templates between January and March 2020

China

0%

5%

10%

15%13.1%

9.2% 9.5%

Western Europe

0%

5%

10%

15%

1.7%4.3%

2.2%

Japan

0%

5%

-0.5% -2.3%

1.1%

-5%

5% 5%

30%

20%

50%

SHIPPING LOSSES AT A RECORD LOWLarge shipping losses hit a record low after posting a 20% year-over-year drop in 2019, according to Allianz Global Corporate & Specialty – although the firm warned that the COVID-19 pandemic could endanger long-term safety improvements in the shipping industry.

Source: Safety & Shipping Review 2020, Allianz Global Corporate & Specialty

140

120

100

80

60

40

20

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019

TOTAL SHIPPING LOSSES WORLDWIDE

Rest of the world

0%

5%

10%

15%

5.8% 6.8% 5.6%

Asia (ex. Japan)

0%

5%

10%

15%

9.7%

6.8%8.1%

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UPFRONT

NEWS ANALYSIS


SpaceX’s recent launch of NASA astronauts has ushered in a new era of space commercialization – and insurers are rushing to figure out the best way to insure all of the risks involved

IT’S BEEN a historic year for the global space industry. On May 30, millions of people around the world tuned in to watch the launch of SpaceX’s Crew Dragon capsule to the International Space Station. This monumental event marked not only the first time that NASA astronauts have taken off from US soil since 2011, but also the first time that a commercially designed and built spacecraft carried astronauts into space. Now, after the astronauts’ safe return to Earth on August 2, hopes are high for the future of commercial space travel.

“A new era for space commercialization is unfolding right now,” says Peter Elson, CEO of Gallagher’s aerospace practice. “Some events in the wider space industry may have a déjà vu quality, such as the [use of the] Falcon 9 rocket. But what was new in those operations was the central role played by a

commercial company. In the past, missions of this scale and complexity were the sole preserve of government agencies.”

Until 2012, space insurance premium was typically in the range of US$750 million to US$1 billion a year, says Chris Kunstadter, global head of space at AXA XL. From 2012 to 2019, that number steadily dropped; 2019 was an illuminating year for the global space insurance sector. Total written premium was approximately US$500 million, while total losses amounted to around US$800 million, which is well within the typical range of losses

over the past 20 years. However, combined with the lower premium, this caused concerns for some space insurers over the volatility of the line of business. Some pulled out of the sector altogether, while others cut capacity or put in restrictions to minimize their exposures.

“It will be interesting to see how the rest

of this year goes,” Kunstadter says. “July, for instance, turned out to be a huge month for insured launches – and uninsured launches, too. Up through the first half of this year, the global insurance premium for space insur-ance amounted to about $120 million, and we’re expecting the same amount of premium just from launches in July alone.”

With so much renewed attention on the opportunity for space commercialization, it’s likely that the insurance industry’s role in driving the next step will also be subject to increased scrutiny. Insurance is, and will continue to be, a key enabler of space commercialization, Elson says, explaining that space projects require significant invest-ment, much of which is incurred way ahead of any revenue coming on stream.

“For the brave investor, rewards can be exceptional – and insurance is critical to underpin the financial risk that goes hand in hand with those potential rewards,” he says. “In the long run, insurers and brokers will need to get to grips with some fundamental

The new space race

“For the brave investor, rewards can be exceptional – and insurance is critical to underpin the financial risk that goes hand in hand with those potential rewards”Peter Elson, Gallagher

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10.3 million Number of people worldwide who watched SpaceX’s first astronaut launch in May 2020

$350 million Revenue currently generated by the

global space industry

$1.1 trillion+ Revenue the global space industry is

expected to generate by 2040

1,100 Projected number of annual satellite

launches by 2025

shifts in demand.” In time, Elson says, the pace at which

technology can be developed and imple-mented is likely to expand commercial opportunities in both the space industry itself and for the insurers supporting those

ventures. Today, the commercial space industry is in the development stage, which poses some real challenges to insurers in terms of the products and services they provide for unproven technology, as well as the resource-heavy technical process they follow in evaluating risks.

Kunstadter stresses that insurance companies’ involvement must go beyond simply insuring risks – AXA XL is involved in a broad range of space industry activities, from business development to outreach and advocacy. Kunstadter says insurers must be

at the very forefront of understanding to address the risks that others have not yet figured out how to deal with.

“We’re working with the industry to try and develop standards [and best practices],” he says. “And we have a lot of statistics that we share within the industry because we

want to make sure we have smart clients, smart brokers and even smart competitors. If we have these, then people aren’t going to be doing silly things, and [this prevention] will help the industry overall.”

The coming years should present new opportunities within the insured launch sphere, Kunstadter says, citing the develop-ment of space systems by Virgin’s Richard Branson and Amazon’s Jeff Bezos, who will likely be looking for insurance solutions to protect their investments.

Meanwhile, Elson notes that SpaceX is part of a very successful cadre of commer-cial businesses with the vision and backing to open up a raft of new opportunities in space. From Branson’s Virgin Galactic and Bezos’ Blue Origin to the space communica-tion arena, where Amazon’s Project Kuiper and SpaceX’s Starlink are looking to provide accessible global broadband services using constellations of low-orbiting spacecraft, the future of space commercialization is clearly already underway.

FAST FACTS: THE COMMERCIAL SPACE INDUSTRY

“We want to make sure we have smart clients, smart brokers and even smart competitors. If we have these, then people aren’t going to be doing silly things”Chris Kunstadter, AXA XL

Sources: Space.com, Morgan Stanley, MIT Technology Review; all figures in US$Photo courtesy of SpaceX

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UPFRONT

INTELLIGENCE


a

Economical Insurance teams up with UberEconomical Insurance has forged a new

partnership with Uber to provide insurance coverage for every Uber Rides and Uber Eats trip in the four Canadian provinces where Uber is currently licensed: Alberta, Ontario, Quebec and Nova Scotia. Uber drivers will have access to a digital interface that allows them to file claims via a mobile app. According to Fabian Richenberger, Economical’s EVP of commercial insurance, the new partnership is part of the company’s strategy to diversify its book of business and complement its regular P&C business with new specialty lines propositions.

Ecclesiastical opens online hub for education clientsSpecialist insurer Ecclesiastical Insurance

has launched an online portal to help its education clients manage strategic and operational risks. Available to all Ecclesiastical brokers and clients, the new online portal, The Hub for Education, provides information, insight, tools and checklists, along with a dedicated risk advice line to support all types of educational establishments. The portal aims to offer support and guidance on the significant risks schools are exposed to, including fire, health and safety, building services, security, cybersecurity, environment and weather, and strategic risks.

CORPORATE PRODUCTS

Gallagher snaps up Edmonton brokerageGallagher has expanded its presence in Alberta with the acquisition of Insight Insurance & Risk Management, the official brokerage of the Edmonton Oilers. Founded in 2013 by CEO Alexis Harke, the retail brokerage serves a diverse client base in Western Canada and has particular expertise in the construction, real estate, hospitality, and sports and entertainment industries. Harke and the Insight team will continue to operate from their current location.

“We’re simply thrilled to become a part of the growing Gallagher family in Canada,” Harke said. “Being part of a global brokerage is going to greatly benefit our clients.”

ACQUIRER TARGET COMMENTS

Hub International Elevate Insurance Brokers Elevate is an Alberta-based independent insurance agency that handles home, auto and business insurance

Gallagher Insight Insurance & Risk Management

Located in Edmonton, Insight specializes in sports and entertainment, hospitality, and construction insurance

McDougall Insurance and Financial

Patterson Hadden Brown Insurance The deal will boost McDougall’s P&C premiums to $25 million and expand its presence in the Ottawa region

Navacord Selectpath Benefits & Financial and ProBenefits Consulting

The duo of acquisitions strengthens Navacord’s position in the benefits space, which it has identified as a “priority growth area”

One80 Intermediaries SUM Insurance SUM, a Canadian P&C and specialty MGA, has been acquired by the US-based wholesale broker, program manager and insurance aggregator

Westland Insurance Group

King Insurance, Johnson Agencies, Hedderick Insurance Agencies and Nauroth & Associates

The four acquired brokerages, located in BC, Alberta and Manitoba, further Westland’s expansion strategy in Western Canada

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a

Chubb names president of North America insuranceChubb has promoted John Lupica, the current vice-chairman of Chubb Group, to president of North America insurance. Lupica will oversee the company’s general insurance business in the US, Canada and Bermuda, including commercial P&C, personal lines, agriculture, and accident and health insurance.

Chubb executive vice-chairman and COO John Keogh called Lupica “one of our industry’s most experienced and accomplished insurance executives,” adding that “the time has come to have one outstanding executive lead this premier business spanning all of our divisions, including our retail and wholesale commercial P&C businesses.”

AGCS appoints new chief agent for CanadaAllianz Global Corporate & Specialty has appointed Bernard McNulty as chief agent for Canada, concurrent with his existing role as head of claims. As chief agent, McNulty, a 20-year industry veteran, will be charged with leading AGCS’ Canadian business through the company’s global repositioning initiative, which aims to simplify its structure while bolstering technical capabilities and

building out core businesses and offerings. “As head of claims and now chief agent for Canada, Bernard is a highly

respected executive who will ensure AGCS Canada remains an industry leader across our targeted markets,” said Rani Christie, North American regional head of distribution for AGCS.

NAME LEAVING JOINING NEW POSITION

James Bartlett Bold Commerce Custom Software Solutions Vice-president of sales

Larbi Bouhlal Allianz Global Corporate & Specialty Zurich Canada Vice-president of middle market,

Eastern Canada

Madison Cheffins Leibel Insurance Group APOLLO Exchange Broker success manager

Mark Hale N/A Crawford & Company Construction practice lead, Canada

Jeff Kislasko Allianz Global Corporate & Specialty Zurich Canada Head of programs

John Lupica N/A Chubb President, North America insurance

Harpreet Mann N/A QBE Head of global credit and surety, North America

Bernard McNulty N/A Allianz Global Corporate & Specialty Chief agent, Canada

Donna Mulligan Allianz Global Corporate & Specialty Zurich Canada Head of middle market

Dan Osterrieder N/A Axis Re Head of casualty, North America

Bob Tisdale N/A CRU Group Director

Sarah Miller Wright Shaw Communications Manulife Head of operations, Canada

Allianz partners with Air Canada on COVID-19 coverageAllianz Global Assistance has partnered with Air Canada to offer COVID-19 medical insurance at no extra charge for travellers who book trips through the Air Canada Vacations travel agency. The coverage, which applies to southern destinations such as Mexico and the Caribbean, has limits of up to $100,000 and will cover quarantine accommodation expenses and emergency medical bills related to COVID-19 if the traveller contracts the virus abroad. It also covers repatriation fees should the traveller die overseas.

PEOPLE

Beazley upgrades cyber and media/technology policiesBeazley has enhanced its cyber and media

& technology insurance offerings for Canadian businesses. The Beazley Breach Response cyber policy now features integrated cyber extortion, business interruption, dependent business interruption and e-crime coverage. Beazley has also folded cyber coverage into its MediaTech policy, which provides E&O insurance for tech-based services and products. The policy now features first- and third-party coverage, as well as coverage for breach response costs and e-crime, and gives policyholders access to cyber response resources.

Empire Life bolsters benefit plans with telemedicineEmpire Life has added telemedicine services

from Teladoc Health to its group benefit plans. According to Vanessa Lycos, Empire Life’s vice-president of group product and marketing, nearly two in five Canadians say they have faced COVID-19-related barriers to medical care, which telemedicine services can help eliminate. “As a result of the pandemic, consumers are more open than ever to telemedicine, and we’re delighted to continue to support Empire Life and their members with access to quality care,” said Dr. Tim Foggin, Teladoc Health’s Canadian medical director.

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NEWS BRIEFSTalem Health Analytics joins fintech accelerator

Nova Scotia-based insurtech startup Talem Health Analytics has been chosen as a member of the Holt FinTech Accelerator’s 2020 cohort. The accelerator selected eight startups for the program, which is focused on four verticals: cybersecurity, insurtech, proptech and trade finance. Talem’s platform uses clinical and forensic engineering insights to predict the severity and recovery time for injuries resulting from auto collisions. Talem hopes to use this technology to not only improve treatment for auto collision victims, but also to combat insurance fraud and runaway medical costs.

Keal Technology rolls out new cloud-based platform

Keal Technology, the Canadian subsidiary of Vertafore, has launched the Vertafore Canada Cloud platform and InsurLink digital customer experience solution in Canada. The Vertafore Canada Cloud offers brokers a platform that can help them securely connect and work from anywhere. The InsurLink solution, meanwhile, enables brokers to offer their customers real-time self-service access to their insurance policy documents and data through a web portal. Synchronized with the SIG broker management solution, InsurLink allows clients to access updated documents and other policy data as soon as any changes are made.

Fewer than 30% of insurers have reached ‘digital maturity’

Fewer than 30% of insurance carriers have managed to digitize the value chain, according to ACORD’s Insurance Digital Maturity Study, which examined the digital practices of the world’s top

130 carriers. ACORD also found that, while those embracing digitization are significantly outperforming the industry, 13% of insurers are still not leveraging digital technologies in their current business processes. More than half of the insurers the organization studied are still exploring how digitization can be applied to their business model.

Wawanesa migrates its entire product suite online

Wawanesa Mutual Insurance Company has added commercial and garage property products to its Guidewire InsuranceSuite, giving brokers access to all of its products online. The InsuranceSuite platform offers simplified policy management, accelerated onboarding, and improved analytics and pricing. “This is the last step in a technological transformation that we started in 2015 and has culminated in a new digital foundation that allows us to integrate with broker APIs, digitize our business processes, respond to market conditions quickly and launch new products in partnership with our brokers,” said Carol Jardine, Wawanesa’s president of Canadian P&C operations.

Charles Taylor InsureTech brings on Microsoft exec

Arjun Ramdas, Microsoft’s former practice leader for consulting services in the UK, has been appointed CEO of Charles Taylor InsureTech. Prior to his three-year tenure at Microsoft, Ramdas spent more than a decade at Cognizant, where he worked to build out the management consulting practice in key European markets. “I am excited to lead a team that combines Charles Taylor’s insurance heritage with a deep understanding of relevant technologies and real-world business transformation experience,” Ramdas said.

UPFRONT


TECHNOLOGY UPDATE

Insurance relies heavily on the language of policies, which makes policy checking one of the most vital processes in the industry – but it’s also one of the most labour-intensive and prone to human error. The use of artificial intelligence to streamline policy checking could potentially change the game for insur-ance companies, and Chisel AI hopes to be at the forefront of this change.

“We use natural language processing and machine learning to extract and interpret unstructured data trapped in digital insur-ance documents of various types and formats – submissions, policies, binders and more,” says Chisel AI founder and CEO Ron Glozman. “That’s a techie way of saying we teach a computer to read just like a human – only hundreds of times faster.”

Glozman explains that the Chisel AI solu-tion, which was designed specifically for the commercial insurance industry, can recognize more than 500 insurance-specific data points, such as deductibles, limits and premiums, in just minutes.

“Basically, the solution analyzes context in the surrounding text, as well as the structure of the text, to accurately understand the rela-tionships between the words,” he says. “Put another way, our solution speaks the language of insurance.”

By reading and identifying relevant data in insurance documents, Chisel AI can help insurance organizations make better deci-sions, as well as feed downstream systems

Speaking the language of insuranceChecking policy documents can be a slog, but specially developed AI promises to make the process easier

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CAA was one of the earliest adopters of telematics for pay-as-you-go auto insurance. How popular do you think the technology will be in Canada years from now?Since we launched CAA MyPace in 2018, pay-as-you-go insurance has been growing in popularity. CAA Insurance is now seeing nearly 250% year-over-year growth, with fewer people driving due to COVID-19. But even before the pandemic, our research has shown us that consumers wanted to have more choice and control when it comes to their auto insurance. CAA MyPace gives the customer increased flexibility by considering their lifestyle and responding to their needs.

Pay-as-you-go auto insurance enables flexible payment options for customers, but what does it do for insurers?We believe there is a good business case for pay-as-you-go auto insurance. Our model predicted that people who drive less get into fewer collisions, and our data is reinforcing that those predictions were accurate. On average, CAA MyPace drivers save approximately 40% to 60% on their auto insurance costs based on their driving frequency. Having a pay-as-you-go option gives customers a choice when looking for auto insurance based on their personal situation, while also allowing us to attract and retain new and loyal customers.

Are current-generation telematics advanced enough to be able to provide accurate driving data for insurers to base premiums on?The use of telematics products allows us to provide a competitive rating based on accurate information. Existing telematics programs monitor driving habits and provide discounted premiums based on those behaviours. CAA MyPace uses the same technology and leverages it to give consumers a new way to monitor and manage their mileage. Our modelling and research tell us that motorists who drive less than 9,000 kilometres deserve to pay less, so we designed a payment program that reflects that.

How far will innovations in telematics go? Should they start tracking sensitive data, such as customer whereabouts, or is there a line that insurers should never cross?CAA MyPace collects the data necessary to determine what an insured pays, depending on how many kilometres they drive. The data collected includes kilometres driven, speed and hours of operation. The data isn’t used to increase your insurance rates. Telematics allow an insurance company to give individual pricing based on kilometres driven, something that just isn’t possible with a traditional insurance policy.

Companies that use telematics need to be open and transparent about the data collected and what they are doing with it. If a customer is comfortable with sharing information specific to the program or product, then insurance companies can create more tailored products based on telematics.

Taking telematics to the next level

Q&A

Years in the industry 21

Fast fact In his two-plus decades in insurance, Turack has successfully led teams of underwriters, actuaries, and claims and sales/service professionals in product design, rate-making and the development of risk models

Matthew Turack Group president

ECHELON INSURANCE, CAA INSURANCE

AND ORION TRAVEL INSURANCE

such as rating engines and policy administra-tion systems. This enables insurance companies to automate high-volume, repeti-tive manual tasks, Glozman says, which can lead to lower operating costs and accelerated turnaround times.

Glozman says Chisel AI’s machine learning process is still supervised by a human expert to ensure that the system takes the correct responses. While the system could eventually become sophisticated enough to read insur-ance documents unsupervised, Glozman believes human insurance experts still have an important role to play.

“At its heart, insurance is a human busi-ness that exists to help other humans manage risk and put their lives and businesses back together after an unfortunate event,” he says. “While AI will automate routine tasks, complex business processes like selling insur-ance will still require a human in the loop to validate and apply his or her human judg-ment to the work.”

Instead of replacing jobs, he adds, Chisel AI aims to make things easier for insurance professionals. “We will always need skilled insurance professionals exercising their judg-ment,” Glozman says. “We are just trying to make it easier for them to do this by auto-mating routine manual processes that consume too much of their time – time that would be much better spent advising clients and writing more business.”

“We teach a computer to read like a human – only hundreds of times faster”

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UPFRONT


Securing insurance coverage for a business that operates in different countries can be a complex affair. The coverage needs to respond to each regional unit’s local needs, have a degree of execution certainty when it comes to benefits and/or claims payments, and be compliant with the standards set by local regulators. With so many factors involved, the expertise of MGAs like Stewart Specialty Risk Underwriting (SSRU) can be crucial.

“When placing coverage for multi-nationals, we need to be certain that the insur-ance program is constructed in a manner that

Covering multinationals for multiple risks

of SSRU’s clients are active in the natural resources sector, where having ‘boots on the ground’ is critical in the event of a catas-trophic loss.

“Moving adjusters, engineers, contractors, legal counsel, etc. to remote locations after an incident may be difficult when there may be restrictions to entering a foreign country or returning to one’s own country,” Stewart says. “It is therefore important for the insured’s risk

management program to have contemplated these factors and for carriers to ensure that resources are readily available to respond in the event of a loss.”

According to Stewart, the industries that face the most difficulties due to international exposures are those that are heavily reliant on a particular supply chain and specialized equipment, such as manufacturing, mining, oil and gas, power generation, and aviation.

“Often, it is not feasible to hold an inven-tory of spare parts on site due to cost or avail-ability,” he says, “and it can take an extended period of time to replace a damaged item due to the remote proximity of the risk or because that item is not locally available.”

Why placing coverage for multinational companies requires MGA-level expertise

is compliant with Canadian law and the laws that govern the jurisdiction where the risk resides,” says Stephen Stewart, president and CEO of SSRU. “This usually means arranging for the issuance of locally registered paper and involves engaging with brokers who have a local presence and are familiar with local regulations and the legal climate where the risk is domiciled.”

To ensure that an international insurance program will run smoothly, it’s important that the servicing team involved is engaged and connected at all levels, Stewart says. Many

NEWS BRIEFS CFC expands life sciences insurance solutionSpecialist insurance provider

CFC has expanded its life sciences insurance solution to accommodate the needs of mid-market companies on a global basis. CFC can now provide excess products liability, E&O and clinical trials coverage for global clinical research organizations and companies that manufacture or sell medical devices, functional food, and dietary supplements and have a revenue threshold of £2.5 billion (around C$4 billion). The expanded insurance solution offers limits of around $17 million.

MGA UPDATE

SUM acquired by One80 Intermediaries Canadian MGA SUM

Insurance has been purchased by One80 Intermediaries, a US-based wholesale broker, program manager and insurance aggregator. SUM Insurance has broad in-house binding authority on behalf of numerous insurers and reinsurers to design, underwrite and deliver insurance products to brokers throughout Canada. One80 Intermediaries has already expended rapidly throughout the US and has access to all major insurance markets in the US and UK.

“We need to be certain that the insurance program is compliant with Canadian law and the laws where the risk resides”

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Fuelling the oil and gas industry’s insurance needs

Raise Underwriting hires VP for developer suretyRaise Underwriting, a specialty

MGA focused on construction, real estate and development, has named Hiliary Scarlett as VP of underwriting for developer surety. Prior to joining Raise, Scarlett served as a senior underwriter with The Sovereign General Insurance Company and an account executive for developer surety at Travelers Canada. “Raise has enjoyed a collaborative attribute with Hiliary in her past roles, and Hiliary’s care will accelerate a offerings in Ontario, Quebec and British Columbia,” said Raise CEO Neil Morrison.

Q&A

CHES Special Risk launches new E&O offeringCHES Special Risk has

unveiled a new E&O insurance solution for miscellaneous professional risks. The program is available to more than 100 different industries, although it caters to businesses that offer consultancy services, such as recruiters and event planners. “For any business selling its knowledge as a service, there is an E&O exposure,” said CHES senior underwriter Ashley Scandlan. “Coverage for such businesses is often subpar, and we are finding that people are unaware they have E&O exposures.”

Amynta Group takes on Aspen’s surety operationsIndependent insurance

services firm Amynta Group has acquired the surety operations of Aspen Insurance. Once the deal is finalized, the business will operate as Amynta Surety Solutions. As part of the transaction, Amynta has entered into a strategic partnership with Crum & Forster, which will provide the underwriting capacity for the business and assume Aspen’s in-force surety portfolio. Amynta Surety Solutions will be the exclusive writer of large commercial surety bonds for Crum & Forster.

As an MGA with experience handling oil and gas insurance, what are some of the biggest industry risks specific to Canada? Perhaps the only difference between oil and gas risks in Canada and anywhere else in the world would be the oil sands. When it comes to contractors in the oil and gas sector, many of the ones we insure work all over the world. The oil sands is more of a mining operation than a drilling operation. But many of the same contractors work in the oil sands, as well as elsewhere in the oil and gas industry.

What are your thoughts on the Trans Mountain pipeline and the advocacy groups that are pushing the pipeline’s insurers to back out?What is often not mentioned when the Trans Mountain is brought up is that there is already a pipeline there and has been since the charter to build it was granted in March of 1951. All that Trans Mountain wants to do now is add another line right beside the existing one, but of a bit larger diameter.

I think oil and gas insurers should be asking if the insured has met all the environmental criteria set out by the government. If so, then the risk would meet all required standards and should be insured. If insurance companies give in to environmentalists, they are bowing to public opinion and politics, and they are not underwriting the risk.

Everyone needs to remember that if the risk is not insured by insurance companies and the owner does

not pay a premium and there is a loss or damage to a third party, the government would have to pay – and, by extension, taxpayers.

What are some general safety protocols that oil and gas companies need to follow to keep their insurance costs to a minimum? The oil and gas companies must and are striving to meet all environmental requirements currently set forth by the government, and each trade meets safety standards set out by both the oil companies they do work for and also government standards. Overall, those who work within the oil and gas industry in Canada do so with health and safety always front of mind.

As interest in sustainable energy grows, do you think the oil and gas insurance market will still be relevant in the near future? The oil and gas industry will be relevant for at least another 20 years. Even with types of sustainable energy coming on stream, it will take that long to replace oil and gas at a stable level.

Many tend to forget that oil does not just power things, but byproducts of oil are the basis for many products that consumers use every day, and they don’t even think about them being connected to oil. It will also take that long for manufacturers to convert their production lines and products so they can keep people employed and the economy and society running smoothly.

Nona McCreedyOwner

AURORA UNDERWRITING

SERVICES

Years in the industry 40

Fast fact McCreedy started Aurora Underwriting Services after spending 20 years on the company side and three years as a retail broker

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UPFRONT

OPINION GOT AN OPINION THAT COUNTS?Email [email protected]


The season of transformationEarly 2020 will likely be remembered as the moment when the digital scales tipped for the insurance industry, writes Sasha Korol

RECENT SHIFTS in the workforce and technologies have enabled a rethinking of the claims process. Recently, I was fortunate to participate in a discussion with Karen Furtado, an analyst at Strategy Meets Action, and Alex Williams, vice president of tech-nology product management at ESIS, on how people, process and technology are trans-forming claims.

According to Furtado, despite unforeseen circumstances, research shows insurers are rallying to position themselves to be digital, centered on the need to improve customer experience and facilitate digitally enhanced interactions. However, as Furtado explained, it took many in the industry until March to comprehend what this truly meant.

SMA Market Pulse research shows that P&C insurers are largely staying the course on technology plans and investments for 2020. Furthermore, 28% of personal lines insurers aren’t just sticking to digital transformation plans, they’re fast-tracking them.

As in many other industries, we’ve seemed to accelerate digital transformation by years in just months. For insurance, that meant reimagining and reshaping how technology supports the people and processes that make the industry tick.

The pandemic has put the need to reach people when and how they want to be reached under a microscope. This pressure was already driving digital developments to the claims process and has only heightened since.

Simplifying the customer experience is where a lot of digital efforts are trending. For insurers, this can be accomplished by

enabling choice. Insurers are continuing to find ways to quickly and efficiently facili-tate choice by working closely with solution partners and technology providers to build capabilities and integrate them into claims.

Whether it’s means of communica-tion (text, voice, email, chat) or means of submitting information for a claim (images, forms, reports), choice can transform the claims experience – and subsequently offer

insurers a better understanding of individual customer preferences.

To be truly transformational, insurers are also rethinking how products get to market, are serviced and are updated. What has resulted is a simplification of portfolios and a rethinking of how technology can facilitate processes. Where can we lean on technology to facilitate straight-through processing? How can we implement machine learning to learn from pictures and capture data at speed? Where can predictive models support humans by suggesting actions on a claim so efforts can be focused on specialized cases?

By reorienting thinking on the role and purpose of technology and what it means for

the speed and efficiency of processes, organiz-ations will find that the tools they implement will be better suited to their needs. This will result in an infusion of technology that truly empowers people, businesses and the industry for the better.

In the midst of this transformation, there is a need to be prepared to navigate the constantly changing and evolving insurance industry. One of the many places insurers have turned to achieve flexibility is migration to the cloud. A strong backbone built on soft-ware as a service (SaaS) is what gives insurers the power to incrementally innovate when the time is right, and as the market dictates, without a complete overhaul. It also gives insurers the ability to share the heavy lifting of platform updates, security and app develop-ment with vendors and partners whose exper-tise falls within these areas.

What does this mean for technology road-maps? It allows organizations to remain flex-ible and modify as needed or dictated, encour-aging a culture of constant, incremental evolution. Not only does it offer greater

opportunities to scale, but it also better enables shifts or changes when opportunities are presented or demanded.

Over time, we’ll reflect on how early 2020 changed the insurance industry. In the near term, the renewed vigour around digital transformation, with a focus on customer experience, simplicity and flexibility, could very well be here to stay.

“We’ve seemed to accelerate digital transformation by years in just months. For insurance, that meant reimagining and shaping how technology supports the people and processes that make the industry tick”

Sasha Korol is the principal product manager for the Duck Creek Claims product. She defines R&D initiatives for Duck Creek Claims and works with industry analysts and technology vendors to bring the latest technology to the P&C claims space.

victorinsurance.ca

TECHNOLOGYUNDERWRITING DISTRIBUTION CAPITAL

We’re changing the game.As the insurance enterprise of the future, Victor offers the specialized

expertise and core capabilities in underwriting, technology, distribution and access to capital that brokers and clients need to stay ahead.

See how we can support you with the strength of one of the world’s largest managing general underwriters.

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victorinsurance.ca

TECHNOLOGYUNDERWRITING DISTRIBUTION CAPITAL

We’re changing the game.As the insurance enterprise of the future, Victor offers the specialized

expertise and core capabilities in underwriting, technology, distribution and access to capital that brokers and clients need to stay ahead.

See how we can support you with the strength of one of the world’s largest managing general underwriters.

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https://www.victorinsurance.ca/

FEW HAVE had a more unique pathway into insurance than Sukhdeep Kang, CEO of Ontario-based Armour Insurance Brokers. After completing an engineering degree in electronics and telecommunication at Punjab Technical University in India, Kang made the life-changing decision to immi-grate to Canada, where she enrolled in the Canadian Career College Police Foundations Training Program.

In 2003, she was the first immigrant woman and second South Asian to become an officer with the Peel Regional Police. After three years as a police officer, Kang became a member of the Criminal Injury Compensation Board, where she dealt with victims and the families of deceased victims of violent crimes committed in Ontario. She also helped women affected by domestic violence seek justice.

Kang’s first foray into the insurance industry came in 2007, when she joined Austen & Noble Insurance Brokers. She found her feet fast, placing $10 million of gross written premium in her first two years as a broker. In 2010, she capitalized on her success by launching Armour Insurance Brokers, becoming the first South Asian woman in Canada to own an independent insurance brokerage.

Since then, Kang says she “hasn’t looked back.” Under her leadership, Armour has gone from strength to strength – over the past

2018. We established a new call centre in 2018 to enhance our service standards, and we’ve been completely paperless since 2017 by using eDocs and other software.

“We have also launched virtual working screens to help our teams service our clients from anywhere in the world, and we have had great success during COVID-19 because we have been able to maintain our high service

standards. Moving forward, we believe that to deal with our ever-evolving insurance industry and achieve excellence in it, we must stay ahead of the game. I can comfortably say that I believe we are already ahead of the game in technology and in our niche, tailor-made solutions.”

Giving backWhile her business success speaks for itself, arguably one of Kang’s greatest achievements

FIGHTING FOR EMPOWERMENTFrom law enforcement to insurance CEO, Armour Insurance Brokers’ Sukhdeep Kang has always been driven by a passion for justice

10 years, Kang has grown the company’s port-folio to approximately $70 million in gross written premium, primarily through organic growth and a few select acquisitions.

She has also worked hard to build a culture that embraces change, particularly where technology is involved. Kang has championed a robust digital strategy aimed at stream-lining customer interaction while ensuring

efficient service delivery. Armour was one of the first brokerages in Ontario to have a self-serve mobile app that lets clients access policy documents and pink slips, make small changes, and chat with their broker.

“With engineering as my background, I’m always keen on technology advancement and digital transformation,” Kang says. “Armour launched its self-serve mobile app in 2017, and we upgraded our interactive website in

“It is time for the insurance industry to make the shift to embrace diversity and give equal opportunity for anyone to grow in their respective fields. It is required that leaders of insurance organizations step in and pass that clear message on to the managers”

PEOPLE

INDUSTRY ICON


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Name: Sukhdeep Kang

Title: CEO

Company: Armour Insurance Brokers

Based in: Mississauga, Ontario

Years in the industry: 13

PROFILE


has been empowering women and youth – a passion she carried from her time as a police officer into her insurance career.

“I am very proud of Armour’s philosophy and culture of empowering women and youth,” she says. “Ninety per cent of my team today is composed of women, and I have also launched numerous young professionals in the industry by giving them an initial break and a career launching platform.”

As well as supporting women and youth in the workplace, Kang is actively involved in community service and engagement. Armour is a member of IBAO, the Ontario Trucking Association, the Private Motor Truck Council, the Women’s Trucking Federation of Canada, the Brampton Board of Trade, the Indo-Canadian Chamber of Commerce and the

Canadian Cancer Society. Kang is also a main sponsor of William Osler Cancer Research (she’s pledged a $500,000 donation) and the International Seniors Club, and she fundraises annually for the Bethell Hospice Foundation.

She also runs a non-profit organization called Women and Youth (W.A.Y.) Community Services Centre that provides services in areas like drug or alcohol addiction, mental health, abuse and domestic violence, career counsel-ling, and health and wellness.

“W.A.Y. is a not-for-profit wing of Armour, which supports women and youth to pursue their dreams – especially in law enforcement or insurance, due to my background,” Kang explains. “We donate 10% of Armour’s annual income to W.A.Y. to sponsor full tuition fees for selected students of law, medical or engin-eering school in Canada.”

Alongside her insurance career, Kang

also serves as an ambassador for Peel Crime Stoppers. “I love to educate youth on the fight against crime and help them become responsible adults,” she says. “All of this work has helped me to build a humanitarian and empathetic culture at Armour, which has been a major factor in creating such a homogen-eous and positive team. Together, we support various social causes and are generous in offering financial support to various associ-ations involved in great humanitarian causes.”

Leading the changeKang’s efforts haven’t gone unnoticed. In 2019, she was named Woman Entrepreneur of the Year by the Indo-Canadian Chamber of Commerce, which she describes as “a great moment to cherish my hard work and

self-made career.” She was also a finalist for the Woman of Distinction Award at the Insurance Business Canada Awards in both 2018 and 2019.

“It is a great feeling to be part of such an elite club of female insurance leaders in Canada,” she says. “It puts more responsib-ility on my shoulders to continue supporting other women in the industry by being their mentor and encouraging them to take challenges and prove their worth by being creative and determined.

“It is time for the insurance industry to make the shift to embrace diversity and give equal opportunity for anyone to grow in their respective fields,” she adds. “It is required that leaders of insurance organizations step in and pass that clear message on to the managers so they can educate their team members about the importance of diversity and inclusion.”

“Moving forward, we believe that to deal with our ever-evolving insurance industry and achieve excellence in it, we must stay ahead of the game”


PEOPLE

INDUSTRY ICON

NUMBER OF PRODUCTS 32

ANNUAL GWP $70 million

NUMBER OF CLIENTS3,260

SPECIALTYTrucking

HEADQUARTERS Mississauga, ON

COMBINED STAFF EXPERIENCE 100+ years

ARMOUR INSURANCE BROKERS AT A GLANCE

What can AI do for MGAs?

Automate submission processing Auto-decline submissions that fall outside risk appetite Intelligently prioritize submissions to drive profitable business growth

CONTACT OUR EXPERTS To improve your customer experience today elementai.com


What can AI do for MGAs?

Automate submission processing Auto-decline submissions that fall outside risk appetite Intelligently prioritize submissions to drive profitable business growth

CONTACT OUR EXPERTS To improve your customer experience today elementai.com


https://www.elementai.com/

SPECIAL REPORT

FIVE-STAR MGAs


EVEN IN the best of times, brokers rely on MGAs to be their third arm when it comes to keeping up with changing technology, policies and economic challenges. These are far from the best of times, making MGAs’ service to brokers all the more crucial.

To get a sense of how MGAs are performing, Insurance Business Canada surveyed hundreds of brokers across the country, asking them to rate the service they’ve been receiving from their MGAs in the last 12 months. Brokers rated MGAs in 10 categories, including technical expertise, underwriting responsiveness, pricing, product range, compensation, claims support and more. Brokers were asked to rate the importance of each category when choosing an MGA and to evaluate their MGA’s performance on a scale of 1 (poor) to 10 (excellent).

As has been the case in previous years, brokers still consider underwriting responsiveness and turnaround time

the most important quality in an MGA partner – in fact, an overwhelming 91% of brokers said it’s one of their top considerations when choosing an MGA, compared to 73% last year. Pricing and product range remain among brokers’ top three priorities, too, while technical expertise and product knowledge came in a distant fourth, despite seeing a 10% bump in importance between 2019 and 2020.

In terms of MGAs’ performance, brokers’ feedback was more positive than negative this year. MGAs raised their scores from last year in eight out of 10 categories – only product range and claims support saw a drop in average score. Overall, 28 MGAs scored an 8 or higher in at least one category, earning the title of Five-Star MGA. That’s a slight drop from both 2019 and 2018, but a record-setting nine of this year’s Five-Star MGAs claimed the title of All-Star MGA by earning a score of 8 or higher in every single category.

Which Canadian MGAs stand out above the rest? IBC polled hundreds of brokers to find out

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BROKERS ON MGAs

2017


2019

Lorem ipsum

FIVE-STAR MGAS2020


WHAT ARE THE MOST IMPORTANT THINGS BROKERS LOOK FOR IN AN MGA?

100%

80%

60%

40%

20%

0%Underwriting

responsiveness/turnaround time

Pricing Range of products Technical expertise and

product knowledge

Claims support Reputation Marketing support Technology and automation

Compensation

20192020 2018

HOW WELL DID MGAs PERFORM ON AVERAGE?Technical expertise and product knowledge

8.328.108.19

Overall relationship/communication8.097.878.34

Customer service7.977.768.02

Compensation7.847.747.55

Pricing7.767.647.99

Range of products7.717.798.08

Underwriting responsiveness/turnaround time7.707.608.04

Claims support7.657.698.00

Technology and automation7.597.197.57

Marketing support7.527.177.32

20192020 2018


SPECIAL REPORT

FIVE-STAR MGAs


MGATechnical expertise

and product knowledge

Overall relationship/

communication

Customer service Compensation Pricing Range of

products

Underwriting responsiveness/ turnaround time

Claims

Support

Technology and

automation

Marketing support

ABEX

Agile Underwriting Solutions

AM Fredericks

Angus Miller

APOLLO Exchange

Approved Surety and Casualty

APRIL Canada

Aurora Underwriting Services

Cambrian Special Risks

CFC Underwriting

Chutter Underwriting Services

Evolution Insurance

Guardian Risk Managers

i3 Underwriting

K&K Insurance

Lions Gate Underwriting

Merlin Underwriting

Milnco

Next Wave Insurance Canada

PAL Insurance

Premier Group

Ridge Canada

Risk-Can Underwriting Managers

Special Risk Insurance Managers

SUM Insurance

Trinity Underwriting

Unique Specialty Risks

Victor Canada (formerly ENCON)

FIVE-STAR MGAs BY CATEGORY

All-Star MGA


BROKERS ON MGAs

2017


2019

Lorem ipsum

FIVE-STAR MGAS2020


Brokers rated technical expertise and product knowledge fourth in terms of importance – just 38% of brokers listed it as a vital consider-ation when looking for an MGA partner. But this was MGAs’ best- performing category for the second year in a row, with an average score of 8.32, up from 8.10 last year. However, just 16 MGAs earned five-star status in the category this year, compared to last year’s 21.

The brokers who rated their MGAs highly in this area praised their “exceptional underwriting knowledge and previous experience as a broker, [which] makes dealing with the underwriters a breeze,” along with “extensive reach in this industry” and “explanations [that] are in-depth and comprehensible.”

Criticism from brokers mainly revolved around the expertise and communication skills of underwriters. One broker pointed out the need for “more knowledgeable underwriters,” while another suggested that MGAs “have underwriters ready to answer questions quickly on the products offered to allow for quick sales.”

There’s no overstating the importance of the relationship between brokers and MGAs. Which is why, after a significant decrease in average score last year, it’s encouraging to see MGAs regain some ground with a score of 8.09 this year, putting the category squarely in second place, performance-wise. Twenty-one of this year’s 28 MGAs earned a five-star designation for relationships and communication this year, up from the 18 that achieved the distinction in 2019.

Prompt and open communication continues to be the main thing brokers are looking for here, separating the high scorers from the low. One broker described their relationship with their MGA as “excellent – the service is second to none.” Another raved about their MGA’s “excellent communication, along with constructive criticism, which is very helpful for the client.”

On the flip side, lack of communication and frequent personnel changes were serious impediments to brokers’ relationships with their MGAs. “Staffing changes have led to zero relationship or understanding of a broker’s position,” one broker said. Others complained of “lack of response on submissions” and said that “of late, it’s tough to get timely communication; several follow-ups are required on everything sent in.”

ABEX

APOLLO Exchange


APRIL Canada


CFC Underwriting

K&K Insurance


Milnco

PAL Insurance

Premier Group

Ridge Canada





ABEX

Angus Miller

APOLLO Exchange


APRIL Canada


CFC Underwriting


Evolution Insurance


Merlin Underwriting

Milnco


PAL Insurance

Premier Group

Ridge Canada



SUM Insurance



FIVE-STAR MGAs FIVE-STAR MGAs

HOW CAN MGAs IMPROVE THEIR SERVICE?

“Quicker response time when submitting new business”

“Underwriters seem swamped right now, so maybe additional staff to help”

TECHNICAL EXPERTISE AND PRODUCT KNOWLEDGE

OVERALL RELATIONSHIP/COMMUNICATION

Average MGA performance

8.32


8.09


SPECIAL REPORT

FIVE-STAR MGAs


Brokers gave MGAs an average score of 7.97 for customer service this year, up from last year’s 7.76 and bringing the category into third place in terms of MGA performance. A total of 22 MGAs snagged five-star ratings for their customer service, an increase from last year’s 20 and tied with compensation and pricing for the category with the most Five-Star MGAs.

Despite its relatively high score compared to other categories, many brokers noted that their MGAs have done a less than stellar job with customer service recently. “Customer service has suffered over the past 12 months,” said one broker, while another noted that their MGA’s “customer service and quote response times need a lot of work.”

As with most of the categories, success in this one boils down to good communication and efficient service. Brokers definitely notice when both things are being provided – and especially when they’re not.

MGAs’ average score for compensation bumped up slightly this year, from 7.74 to 7.84, putting the category in fourth place, performance-wise. A total of 22 MGAs earned a five-star rating for compensation this year, almost triple that of two years ago, when just eight MGAs received the designation.

That said, only 7% of brokers rated compensation as an important factor when choosing an MGA, down from 8% last year, which put this category in last place in terms of importance for 2020.

The responses from brokers ranged from positive (“They are fair and do well with their commission bonus”; “Standard is 15% commission, but they will negotiate if we need more commission”) to middling (“Pretty much the same as other MGAs”) to critical (“Very rigid and unwilling to reduce minimum premiums”; “Increase commissions [and] reduce policy fees”). While some brokers praised their MGAs for offering above-average commissions, many others asked their MGAs to rise to that standard as well.

ABEX

Agile Underwriting Solutions

APOLLO Exchange


APRIL Canada



CFC Underwriting


Evolution Insurance


Merlin Underwriting

Milnco


PAL Insurance

Premier Group

Ridge Canada



SUM Insurance



ABEX

APOLLO Exchange


APRIL Canada



CFC Underwriting


Evolution Insurance

Guardian Risk Managers

i3 Underwriting

Merlin Underwriting

Milnco


Premier Group

Ridge Canada



SUM Insurance

Trinity Underwriting



CUSTOMER SERVICE COMPENSATION



“Email confirmation of submissions – let the broker know who will be underwriting and provide contact information so we have someone to follow up with”


7.97


7.84


BROKERS ON MGAs

2017


2019

Lorem ipsum

FIVE-STAR MGAS2020


RIDGE CANADA Headquarters: Toronto, ON

Year founded: 2016

Number of employees: 6

Leadership: Greg Markell, president and CEO; Kyle Gray, director of underwriting; Jeremiah Tonn, executive vice-president

Providing cyber insurance products to agents and brokers across Canada, Ridge Canada partners with insurance brokers to help them address their clients’ cyber risks and exposures and offer industry-leading cyber insurance solutions. As a trusted advisor, Ridge provides industry reports, coverage comparisons, and policy placements and strives to help brokers and buyers understand, evaluate, and select the appropriate coverage.

“We constantly listen, learn and adapt to meet the needs of our broker partners,” says Jeremiah Tonn, executive vice-president. “Our experience is both as underwriters and brokers, and this helps us understand many of the obstacles brokers face when speaking to their clients. By listening to our broker partners, we can ensure that our policy wordings are always best-in-class and that our broker partners are armed with the knowledge they need to have meaningful conversations about cyber with their clients.”

Because cyber and the insurance industry as a whole are constantly changing, Ridge works to stay ahead of the curve and help its broker partners grow organically. Additionally, Ridge provides solutions for Canadian clients, using top-notch vendors to help clients get back to normal after experiencing a cyber incident.

“At Ridge Canada, we approach our business as an extension of an insurance broker’s sales and risk management team,” says Kyle Gray, director of underwriting. “By understanding the pressures and challenges of the broker’s role, providing specialized product knowledge, and delivering unparalleled service, we become trusted advisors and create a beneficial relationship for all partners involved – insured, broker and MGA.”

Top, left to right: Greg Markell, president and CEO; Kyle Gray, director of underwriting; Bottom, left to right: Jeremiah Tonn, executive vice-president; Dmitri Kralik, underwriter; Trevor George, associate underwriterALL-STAR MGA


SPECIAL REPORT

FIVE-STAR MGAs


Another category in which 22 out of 28 MGAs received five-star ratings from brokers, pricing remained the second most pressing concern for brokers when evaluating MGA partners. Sixty-four per cent of brokers listed it as one of their top three considerations when choosing an MGA – a massive leap up from last year, when only 45% rated it as a top priority. In terms of performance, MGAs saw a slight increase in their average score this year, rising from 7.64 in 2019 to 7.76 for 2020.

Many brokers’ feedback around pricing spoke to the challenging economy and the uncertainty stemming from the COVID-19 pandemic, and how that lack of clarity affects all aspects of the industry. “Insane times at the moment; competitive pricing is always a major consider-ation, along with coverage terms and conditions,” said one broker who gave their MGA a score of 7 in this area. “Given the current market, it’s difficult to answer this question, but some of their increases are way too high,” said another.

Brokers’ biggest requests in this category include lower service fees and more competitive pricing – pandemic or no.

MGAs’ product range continues to be a rising concern for brokers. Two years ago, just 44% of brokers said it’s one of the most important things they look for in an MGA; this year, that figure rose to 55%. Unfortunately, as the category has grown in importance for brokers, MGAs’ perform-ance ratings have dropped – from an average score of 8.08 in 2018 to 7.79 in 2019 to 7.71 this year. That puts it at sixth out of the 10 categories in terms of performance. But even with the lower average score, 20 MGAs still earned a five-star designation for their product range.

Brokers’ biggest concerns when it comes to product offerings revolve around lack of variety, limited geographical reach and poor communi-cation. Plenty of brokers were satisfied with their MGAs in this area, but even they wanted more assistance in finding capacity for difficult-to-place risks.

Many brokers mentioned that the difficult economic situation has caused a change in service and a decrease in the range of products offered, and they asked for more back-and-forth communication to remedy some of the gaps. “Listen to broker feedback more on what clients are asking for and work to develop the products that meet the needs,” one broker suggested.

ABEX

AM Fredericks

APOLLO Exchange


APRIL Canada



CFC Underwriting


Evolution Insurance

K&K Insurance

Merlin Underwriting

Milnco


PAL Insurance

Premier Group

Ridge Canada



SUM Insurance



ABEX

APOLLO Exchange


APRIL Canada


CFC Underwriting


i3 Underwriting

K&K Insurance


Merlin Underwriting

Milnco


PAL Insurance

Ridge Canada



SUM Insurance



PRICING RANGE OF PRODUCTS



“Expand into additional product offerings”


7.76


7.71


BROKERS ON MGAs

2017


2019

Lorem ipsum

FIVE-STAR MGAS2020


Once again, brokers listed underwriting responsiveness and turnaround time as the most important factor they consider when choosing an MGA. An astounding 91% of brokers named it as one of their top three priorities – way above the 73% who ranked it that highly last year – putting it far above their second biggest concern (pricing), which only 64% of brokers listed as a top priority.

MGAs’ average score in this area managed to climb a bit from last year’s 7.60 to 7.70 this year, although it came in seventh out of the 10 categories, performance-wise. Regardless, 19 MGAs earned five-star designations for their underwriting turnaround times, up from last year’s 14.

Brokers who rated their MGAs highly in this category largely high-lighted flexibility, responsiveness, a high level of support and good communication. One broker who gave their MGA a score of 10 described their underwriter as “solid … with vast knowledge. She is highly motiv-ated and has excellent communication skills.” Another broker who gave their MGA a perfect score raved, “Their underwriting turnaround is absolutely amazing, even in this hard market.”

Conversely, slow responses, inconsistent guidelines and lack of experience/knowledge were the main reasons brokers gave their MGAs low scores. “If the market is expected to continue to be hard for the next few years, then either underwriting support should be added or additional underwriters,” suggested one broker, echoing the sentiments of many others, who pointed to COVID-19 as a major factor in their MGAs’ lagging performance in this category.

Claims support wasn’t a big issue for brokers this year. Just 22% named it as one of the top factors they consider when choosing an MGA partner – a significant drop from 30% last year. MGAs’ average score in this category also fell for the second year in a row: Overall, MGAs earned a score of 7.65, down from last year’s 7.69 and 2018’s 8.00. However, more MGAs received top marks this year: 18 earned five-star ratings, compared to last year’s 17.

Brokers were most pleased when MGAs were responsive, provided updates on the status of claims and were quick to get things resolved – and they were equally unhappy when those things were absent. “[Claims support] is a concern with MGAs, given relationship bonds can be non-existent, and delayed response and settlement times jeop-ardize our client business and relationships,” said one broker. Another reported that their MGA “needs major improvement – the claims person is terrible and slow to respond and deal with issues.”

ABEX

Angus Miller

APOLLO Exchange



CFC Underwriting



Merlin Underwriting

Milnco


PAL Insurance

Premier Group

Ridge Canada



SUM Insurance



ABEX

Angus Miller


APRIL Canada


CFC Underwriting


Evolution Insurance

K&K Insurance


Merlin Underwriting

Milnco


Ridge Canada







“Better description of target markets and pricing/coverage options for the target market”

“Offer a higher rate of commission and have a more automated renewal process”

UNDERWRITING RESPONSIVENESS/TURNAROUND TIME CLAIMS SUPPORT


7.70


7.65


SPECIAL REPORT

FIVE-STAR MGAs

BROKERS ON MGAs

2017


2019

Lorem ipsum

FIVE-STAR MGAS2020


In a world that’s more reliant than ever on technology, it would seem logical that digital offerings would be a top draw for brokers when evaluating MGAs. But the numbers and responses from this year’s survey – and in years past – show that isn’t really the case. Just 9% of brokers listed technology and automation as one of their most important considerations when choosing an MGA. That’s up slightly from last year’s 7% and 2018’s 5%, but still barely a showing.

However, that doesn’t mean this category is getting zero attention from MGAs. Performance-wise, they significantly improved their average score in technology and automation, rising from 7.19 in 2019 to 7.59 this year.

Brokers who gave their MGAs lower scores wanted to see online tools for quoting, more easily navigable websites and self-serve portals for all policies, not just some. But several brokers also wanted less automation and more personal interaction with their MGAs. “I prefer more face-to-face versus high no-touch processes, which is reverse to present trending,” one broker said. Another suggested that MGAs use “online quoting tools help to provide faster quoting, but have the under-writer available to quickly answer inquiries.”

On the flip side, several brokers loved the tech offered by their MGAs. Brokers praised their MGA partners’ “excellent use of Salesforce.com and automation” and “great self-fillable PDFs for clients.” Another hailed their MGA as “miles above the rest,” noting that “they even offer an SMS real-time notification service.”

Marketing support continues to slowly climb brokers’ list of priorities when choosing an MGA. This year, 11% of brokers listed it as a top concern, compared to 9% last year and 5% in 2018. The category failed to climb out of last place in terms of performance, though. While MGAs’ average score of 7.52 was a marked improvement from last year’s 7.17, this is still the category where brokers want to see the most improvement from their MGAs. It was also the category with the lowest number of MGAs receiving a five-star rating: just 15 out of 28.

From feedback of “there is none” to “nothing to improve here – so much support is offered,” the gap between high-performing MGAs and those not cutting it is wide, according to brokers. In general, communi-cation, training and feedback are the main areas where brokers feel their MGAs’ marketing support needs to improve.

ABEX

APOLLO Exchange


APRIL Canada


CFC Underwriting


Evolution Insurance

K&K Insurance



PAL Insurance

Premier Group

Ridge Canada



SUM Insurance



ABEX

APOLLO Exchange


APRIL Canada


CFC Underwriting

Evolution Insurance

Milnco


PAL Insurance

Ridge Canada





TECHNOLOGY AND AUTOMATION MARKETING SUPPORT



“Being more solutions-focused – a true business partner to the broker – and responsive”

“Have a direct bill option for policies”

“Broker binding authority on the online portal would be great”


7.59


7.52

COMMERCIAL INSURANCE SOLUTIONS

Great service begins with care, which is why our ClaimCare approach puts your customers at the centre of everything we do. It includes service delivery promises, guarantees and much more. We have dedicated advisors to get claims started right away – even during severe weather events. Our ClaimCare Tracker keeps you and your customers informed every step of the way so there are no surprises.

We already have a 97% claims service satisfaction score. With ClaimCare, we’re working to do even better.

Learn more at goremutual.ca/claims

Business SolutionsThat Work

97%Claims Service Satisfaction Score


COMMERCIAL INSURANCE SOLUTIONS

Great service begins with care, which is why our ClaimCare approach puts your customers at the centre of everything we do. It includes service delivery promises, guarantees and much more. We have dedicated advisors to get claims started right away – even during severe weather events. Our ClaimCare Tracker keeps you and your customers informed every step of the way so there are no surprises.

We already have a 97% claims service satisfaction score. With ClaimCare, we’re working to do even better.

Learn more at goremutual.ca/claims

Business SolutionsThat Work

97%Claims Service Satisfaction Score


https://goremutual.ca/claims/

32-35_Sector Focus_Professional Liability-SUBBED.indd 3232-35_Sector Focus_Professional Liability-SUBBED.indd 32 16/09/2020 2:59:25 am16/09/2020 2:59:25 am

https://www.kandkcanada.com/Pages/Home.aspx

SECTOR FOCUS: PROFESSIONAL LIABILITYFEATURES


THE PROFESSIONAL liability insurance market in Canada has been dealt a tough hand in 2020. The market was already facing hardening conditions in 2019 due to unsustainable pricing levels over the past few years, and its poor performance has continued so far this year. The economic uncertainty that resulted from sudden business shutdowns due to the COVID-19 pandemic has also directly impacted profes-sional liability exposure in recent months.

“COVID-19 has triggered deteriorating economic conditions impacting all organiz-ations, with expanded uncertainty about the future of many businesses,” says David Barry, VP and head of financial and professional services at Liberty Mutual Canada. “With the pending reduction and, in some cases, elim-ination of personal and corporate govern-mental programs and overall tightening of the credit market, there may be an expected spike in bankruptcy filings.”

Barry believes these bankruptcy filings could contribute to increased D&O claims activity, further compounding the sector’s poor performance. He also predicts height-ened exposure in the employment prac-tices and fiduciary liability lines of coverage

due to an anticipated increase in layoffs and terminations.

Even the companies that have been strong enough to survive the pandemic must consider the new professional liability chal-lenges they face as they plan for a return to normal. Underwriters are taking a much more detailed look at the way employers

implement and enforce health and safety guidelines, as well as how they manage finances in these difficult economic times.

As a result, many specialty insurance carriers are tightening capacity, increasing pricing and lowering limits, according to Barry, resulting in very hard market condi-tions and selective underwriting in profes-sional lines that will extend well into 2021.

Tough times ahead IBC takes a closer look at how the COVID-19 pandemic has accelerated the hardening market in the professional liability space

The toll of economic turmoilIn addition to lawsuits threatening to hold insurers accountable for business interrup-tion claims, companies across all indus-tries are becoming increasingly concerned about coronavirus-related claims and suits against executives. There have already been two major cases in the United States where companies have been accused of issuing misleading statements about COVID-19 and their plans to mitigate its effects in order to bolster share prices; similar action is expected to follow in Canada. As James Whitaker, a partner at law firm Mayer Brown, told Reuters: “An uptick in liti-gation targeting directors and officers across industry sectors is one likely, and unwelcome, consequence.”

Nancy Brady, an architects, engineers and construction (AEC) underwriter at Beazley Canada, has witnessed hardening condi-tions in her lines of business and says the economic downturn is pushing the market toward further hardening through this year.

“With an increase in local claims activity, some domestic markets have pulled back

from this space, either exiting the class or reducing capacity on higher-risk disciplines such as structural and geotechnical risks,” Brady says. “With ongoing uncertainty in the coming months as COVID-19 restric-tions continue, we expect rates to continue to trend higher with more pullback on available limits, restrictions on coverage and larger deductibles to offset potential risk.”

“With ongoing uncertainty in the coming months as COVID-19 restrictions continue, we expect rates to continue to trend higher”Nancy Brady, Beazley Canada


SECTOR FOCUS: PROFESSIONAL LIABILITYFEATURES


The World Bank has predicted that the global economy will shrink by 5.2% in 2020 as a result of the COVID-19 pandemic. Industries facing the most significant coverage hardships include retail, trans-portation, hospitality and tourism, oil and gas, long-term care facilities, and construc-tion. Brady says the AEC sector has already seen some rate increases and withdrawal of capacity since the pandemic, which has only accelerated the hardening market.

Aside from the pandemic, Barry says insuring professional liability clients in Quebec has become difficult.

“The challenge stems from the civil code’s position on defence costs, legal disputes on the application of civil code, and claim settlements involving payment of significant legal costs outside the policy limit,” he says. “Across all these scenarios, we are seeing capacity reductions, rate increases and a notable tightening of new business appetites from insurers.”

Challenges and opportunities The most notable challenge in the profes-

TRENDS IN PROFESSIONAL LIABILITY

Canadian professional liability direct loss ratio

Canadian professional liability direct expense ratio*

Canadian professional liability estimated (direct) combined ratio**

Source: MSA Research

*Sum of commission, taxes, other acquisition and general expenses (before ceded portion) relative to direct earned premium, covering all lines of business for Canada P&C market as reported to OSFI. Expenses are not split by line of business in OSFI forms.

**Using industry average expense ratio

0% 0% 0%

20% 20% 20%

40% 40% 40%

60% 60% 60%

80% 80% 80%

100% 100% 100%

2015 2015 20152016 2016 20162017 2017 20172018 2018 20182019 2019 2019

74% 68% 63% 68% 75% 32% 33% 32% 33% 33% 106% 101% 95% 101% 108%

120% 120% 120%Five-year average Five-year average Five-year average



sional liability segment through the COVID-19 pandemic has been servicing a material increase in submission flow due to changes in carrier appetite, reduction in capacity or, in some cases, a complete exit from the market. For brokers and clients, this translates into fewer engaged insurance carriers and increased pressure for those carriers that are entertaining new business. Barry suggests brokers start the renewal process early to ensure clarity on any poten-tial changes to renewal terms.

“As more challenged risks see material changes in terms, conditions and pricing, it is more important than ever for clients to seek

partnerships with insurers who are able to clearly articulate their business strategy and appetite,” he says.

While the sector continues to face many challenges, Brady sees significant oppor-tunities as well. Brokers who have built strong relationships with clients, with open communication long before renewal, will have the best opportunity to find alternate options, she says.

“Policies sold on coverage with the right carrier versus those sold on price will present opportunity to brokers, as, in these cases, clients are more likely to understand what is happening in the market and be willing to work with the broker to find solutions,” she says. “Stable markets with capacity have an opportunity to pick up business others are leaving behind.”

To support brokers in the professional

liability space, Barry says the underwriting team at Liberty Mutual is focused on deliv-ering outstanding service, compassion, flex-ibility and innovative thinking during the pandemic to prove their commitment and stability as a partner.

While the business is cyclical, Brady says consistency and communication are key, and the most valuable carriers are the ones that have stayed the course. She advises brokers and agents to take a similar approach with clients.

“It’s important that brokers communi-cate with clients well in advance of renewal dates,” she says. “Particularly in this uncer-

tain period, underwriters are handling high volumes of submissions, and open communi-cation, along with detailed submissions between underwriters and brokers, can bring greater efficiency to the process.”

Barry echoes that sentiment, encouraging brokers to set appropriate expectations with clients from the get-go. “Educating the client on historical industry loss trends is a good objective measure to reinforce the driver of the current market conditions,” he says. “It is also helpful to highlight that these results do not contemplate the increased exposure associated with COVID-19.”

He adds that brokers can also explore alternate coverage options to facilitate discus-sions with their clients on what coverage is critical and what coverage they might consider self-insuring to create more cost- effective options.

HOW PROFESSIONAL LIABILITY PROTECTS BUSINESSES

“It is more important than ever for clients to seek partnerships with insurers who are able to clearly articulate their business strategy and appetite” David Barry, Liberty Mutual Canada

1 Delays. If a business fails to provide a service to a client on

time and that delay causes the client to suffer a financial loss, professional liability insurance helps to cover these costs.

2 Mistakes. If a mistake results in loss or damages to a client,

professional liability can cover the associated costs.

3 Legal issues. If a client brings legal action as the

result of mistakes or negligence, professional liability coverage can help defray the cost of a lawsuit.

Source: TruShield Insurance


TECHNOLOGYSPECIAL PROMOTIONAL FEATURE


THE LINES are blurring between digital-first and traditional brokerages as changes in tech-nology and evolving client needs drive prog-ress and accelerate the adoption of new tech solutions in the insurance space.

“To compete successfully, brokers need to understand their clients’ needs in this changing environment and balance their experience and expertise with offering digital solutions,” says Stefanie McKay, chief underwriting officer at Victor Canada. “Brokers need to be flexible in their offerings, bring efficiency to transactions and be open to new solutions in order to enhance their value to clients.”

Brokers might also want to compete by diversifying into other types of insurance and strengthening their expertise in those areas. For example, if a brokerage has tradition-ally focused on personal lines, they might want to consider expanding into high-net-worth clients or small commercial to attract a broader range of clients. In either case, brokerages will have to embrace technology in order to grow in the future.

Whether service is delivered traditionally, digitally or in a hybrid manner, clients still require access to top-class insurance products and salient advice, especially those who need intricate products to cover complex exposures.

“Delivering a better client experience will mean innovating services and tools and using multiple channels,” says David Cook, presi-dent at Victor Canada. “In the past, it might have been a phone call or face-to-face visit,

but now it’s through a website, social media, email or videoconferencing.”

The ease of doing business digitally will pay off for clients as brokers prove their value, but it also allows for more efficient workflows, as processes such as quoting, binding and issuing policies can occur in minutes rather than hours or days.

Brokerages of the future will need to care-fully select partners – carriers, wholesalers, MGAs and MGUs – that offer easy-to-use digital platforms, as paper documents and other manual processes represent a shrinking part of the purchase and renewal experience. Victor Canada offers an online commercial insurance broker portal called V Squared that allows brokers to obtain a quote, bind and issue a policy in minutes for its Architects & Engineers Small Firms and Technology Small Firms professional liability products. D&O management liability insurance for non-profit organizations will also be available on the portal this fall.

“Part of the journey to being a broker of the future is choosing partners who also have a future-focused mindset and deliver tools to help move their business forward,” Cook says.

Reaching a new generation of insureds There are more than 7.6 million millennials in Canada, making up the largest segment of the working population and an enormous client base for insurance products. Engaging with this generation will require insurance

Broker of tomorrowThe leaders of Victor Canada tell IBC why brokers who are ready to embrace technology and innovation to grow their businesses will be the ones to thrive in uncertain times

brokers to think beyond traditional methods of interacting and expand into online chan-nels. Insurance providers need to ensure their websites are mobile-friendly and designed for search engine optimization.

More than half of millennials use search engines to learn about products, and mobile devices are the primary medium they use to do research, according to a study by Applied

FIVE STEPS TO SECURING YOUR HOME OFFICE

SECURE YOUR HOME NETWORK

• Change the default administrator name and password on your network router and WiFi devices, and make sure they are running the latest manufacturer updates

• Require a strong password to join your WiFi network and use the latest encryption (WPA2)

• Use a separate ‘guest’ wireless network for your friends

SECURE COMPUTERS AND DEVICES

• Don’t use your work computer for unnecessary personal tasks

• Don’t allow friends or family to use your work computer

SECURE PERSONAL ACCOUNTS AND PASSWORDS

• Use strong passwords that are hard to guess, and use different passwords for each internet account and device

• Change passwords frequently

SECURE PERSONAL INFORMATION

• On social media, post only what you want the public to see

• Get educated about cyber scams and how to protect yourself

SECURE AND CONTROL WHAT YOU PRINT

• Avoid printing sensitive commercial or personal information

• Don’t forward company data to a personal email, even if just to print

• Unless the material you print from your work computer is public information, shred it at home or store it for later secure disposal

Source: Victor Canada

36-37_Victor-SUBBED.indd 3636-37_Victor-SUBBED.indd 36 16/09/2020 3:00:03 am16/09/2020 3:00:03 am


Systems. However, family and friend referrals still have the greatest impact on how millen-nials and Gen Z choose their providers, so focusing on brand loyalty with all generations remains important.

Adopting a multi-channel strategy that incorporates social media and other digital experiences will help brokers be more access-ible and attractive to potential clients. Having this approach also allows clients to choose how they interact, leaving the door open for older generations.

“Everyone is getting more comfortable with shopping online; it’s become the de facto standard,” Cook says. “The way people find you and learn about your expertise and specialty is usually online, but they may want to interact with you in a different way.”

Brokers can also choose to market on a specific social media platform that can help engage different generations of clients. For example, millennials can be found on Instagram, while baby boomers are more likely to interact on Facebook.

“A tech-forward brokerage will attract more digitally savvy individuals of all gener-ations when it comes to talent acquisition,” Cook adds. “Younger generations have fully embraced technology and have grown up in digital environments, so their expectations will be to work for companies that offer the digital tools they can use to be successful in their careers.”

Moving past the pandemic The sudden and widespread lockdowns due to the COVID-19 pandemic have acted as a cata-lyst for change, pushing the insurance industry to rely on remote working environments and digital services, as well as forcing discussions on permanent changes for brokers, capacity providers and all members of the insurance ecosystem. COVID-19 has forced businesses to embrace technology more quickly, including videoconferencing, electronic document exchange and use of online quoting platforms.

For brokerages looking to adopt new tech solutions, the better they understand the needs of the client, buyer or insurance provider, the easier it is to find a digital solution for the unique circumstance. McKay says there are a few important questions to ask first.

• Does this digital solution solve a problem for my business and/or my clients?

• Will this digital solution save my business time and money long-term?

• Can I grow my business with this digital solution?

• Can I scale up this digital solution if I need to in the future?

“Flexibility, ease of use, value and scalability are importance factors when considering digital solutions,” McKay says.

When bringing in a new tech solution, Cook says a measurable return on investment is a must, but it’s also important to consider long-term benefits like ongoing efficiency, a better profile for errors and omissions, improved record-keeping, and speed of delivery. Time savings could be reinvested into lead genera-tion and new business development.

“Look at the entire life cycle of the brokerage – new business generation, renewal cycles – and how that can be made most effi-cient,” he advises. “Focus should be on solving new or complex problems for clients and letting the strength of operations and rela-tionships with clients carry day-to-day busi-ness as much as possible.”

During these times of uncertainty, Cook stresses that brokers need to look after their

For more information on how the insurance industry is going digital and the steps you can take to get your clients on the fast track to the future, download Victor’s latest Broker of the Future report at victorinsurance.ca/brokerofthefuture.

own businesses the same way they do for their clients. Brokerages are more susceptible to cyber risk, especially with increased COVID-19 scams as employees work remotely. Victor Canada recently provided brokers with information and resources on how to protect against technology scams and tips for working remotely that brokers can use for themselves or share with clients to reinforce their value.

“Providing brokers with the tools they need to succeed is a priority for us,” Cook says.

Going digital is an opportunity for brokers to be both specialized and efficient. While both Cook and McKay believe there’s room for every type of broker, both stress the import-ance of exploring digital capabilities to stay ahead of the curve.

“The needs of the most loyal clients can change quickly, so the traditional broker still needs to be ready to adapt and pivot quickly as well,” McKay says. “Even if you’re at the top of your chosen field, if a client’s risk manager is digitally savvy and doesn’t know how to find you, they will likely choose another broker with a better digital presence.”

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PEOPLE

BROKER INSIGHT


IBC: What inspired you to open Alteri Insurance Brokers a few years ago?Joshua Krenus: Originally I was on the wealth management side, and I was also life insurance licensed. About five months in, I realized that I really loved the insurance piece and wanted to start my own brokerage just on that. So, in 2017, Alteri Insurance was born as just a life insurance brokerage. Then, as we came to the end of the year, we started to become slowly licensed with different carriers and eventually were able to sell general insur-ance products in January 2018.

IBC: What did you enjoy about life insurance so much that it made you want to start your own brokerage?JK: I really believe in the product. Plus, once it’s evaluated and assessed and put in place for the client, it’s something I don’t really have to stress about thinking about every single day, unlike with wealth management.

IBC: Did you feel that a life- insurance-focused brokerage was something that was missing in the Vancouver market?JK: Yeah. The fact is, there were no life insur-ance brokerages. That’s not a thing. There are individual agents who are life licensed, but they all do money management, too. So I

Joshua Krenus, president and CEO of Alteri Insurance Brokers, tells IBC about his journey to open a life-insurance-only brokerage, how he’s grown business during the pandemic and why competing with the big brokerages can be a very good thing

thought, wow, this is a unique opportunity to be really niche and see how it works out.

IBC: What are some of the unique challenges and opportunities for you in Vancouver?JK: Challenge-wise, Vancouver is a very small place, so it’s heavily saturated in certain product lines. The good thing about life insur-ance and reinsurance in general is that every-body needs it, so you’re not limiting yourself to any form of the population.

The pros are that there are only a handful of players here doing commercial and personal lines. Basically, 95% of the brokers in British Columbia are after Autoplan ICBC [Insurance Corporation of British Columbia] appointed licenses. They’re retail-facing, looking for foot traffic; they’re not after your commercial or

any other form of your business. With us, we’re not after foot traffic. We

are generally competing against the really big players, such as Hub. That’s a pro for me, because I feel like we’re not in a saturated market in that way. Sometimes big compa-nies just don’t want to deal with certain levels of premium or certain clients, so we end up servicing those clients really well, which works out for everybody.

IBC: How has COVID-19 affected your business this year?JK: There was a little bit of uncertainty with regard to the commercial policies that we have; we were wondering if people were going to shut down or pause their policies. But we encountered quite the opposite. A lot of people came to us wanting to analyze their

Filling a gap

FROM CAR DETAILING TO COMMERCIAL LINES

A Vancouver native, Joshua Krenus began establishing himself in the community long before he founded Alteri Insurance. “If you go back to pre-wealth management days, I owned an auto detailing company that was underneath the Vancouver Club downtown,” he says. “One of my clients was the wealth manager that I ended up working for. Then, when I went to start Alteri,

I had personal relationships with a lot of these clients [from the detailing company and the wealth management practice], and they followed me and supported my new business, which was great.”

While his car detailing business is still operating, Krenus is more hands-off these days. “I still pop in once in a while to see it,” he says. “It was my first business; I love it.”

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policies more and ended up increasing their policies. We didn’t see retention go down at all; we’ve actually had a sales increase since COVID started.

IBC: Assuming things eventually get back to a state of normalcy, what are some of the goals you’re excited to put in place?JK: We’re currently on the hunt right now for more commercial space, which is super unusual in this period of time, so that’s exciting. Naturally, with this pandemic happening, a lot of the brokerages in town are letting go of a lot of agents because they simply don’t need them anymore. We see those experienced producers looking for a place to hang their hats as an opportunity in terms of hiring.

We just continue to plug away and grow. We grew this year by four people already – that was really aggressive for us. And we don’t have plans of stopping. We’re small enough right now that everybody is a really big part of the story, and the producers love that. They want to write their chapter of this book.

FAST FACTS: ALTERI INSURANCE BROKERS

Primary areas of service

Commercial and personal lines

Life insurance and living benefits

Year founded: 2017

Location: Yaletown, Vancouver

Number of employees: 11 (six agents, one chairman and four board members)

Leadership: Joshua Krenus, president and CEO; Colin Brown, chairman of the board; Hal McInerney, board member

“Sometimes big companies just don’t want to deal with certain levels of premium

or certain clients, so we end up servicing those clients really well, which works

out for everybody”

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FEATURES


WORK-LIFE BALANCE

The pursuit of excellence is drilled into us from a young age – but Aytekin Tank explains why excellence is actually a poor standard for success

IN LITERATURE, in media and most certainly in the workplace, mediocrity carries a decidedly negative connotation. Nobody wants to be merely mediocre.

Google ‘mediocrity,’ and you’ll get results like “What to Do About Mediocrity on Your Team” and “Mediocrity Is a Virus – Here’s How to Banish It from Your Life.” Article after article tells us that mediocrity is a slip-pery slope to complete failure.

Excellence, on the other hand, has become an aspirational gold standard. To strive for excellence is to dodge mediocrity at all costs. Every day, news outlets publish stories telling us how to emulate the Steve Jobs, the Oprah Winfreys and the Tom Bradys of the world.

Once we wake up before sunrise, choose an outfit that reflects our personal brand, and eliminate gluten, alcohol, and caffeine, we can finally unleash the superhumans

Excellence is obsolete

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lence really the metric by which we should measure ourselves?

One-dimensional excellence might be the wrong goal “There were times when I didn’t leave the factory for three or four days – days when I didn’t go outside.” That’s Tesla CEO Elon Musk, acknowledging the toll of work- related exhaustion. In a candid interview with the New York Times, he admitted that 120-hour weeks had become his norm.

Musk hadn’t taken more than a week off since 2001 when he was bedridden with malaria. His exhaustion had also led to less than exemplary leadership – like berating an analyst, which spurred him to publicly apologize.

Musk’s experience highlights another possible toll of excellence: relationships. Those 10,000 hours have to come from somewhere, and often we start skimming them from nights and weekends – precious hours that are typically dedicated to friends and family.

As Erin Callan, the former Lehman Brothers CFO, who left shortly before its collapse, wrote in a New York Times article: “When I wasn’t catching up on work, I spent my weekends recharging my batteries for the

coming week. Work always came first, before my family, friends and marriage – which ended just a few years later.”

Musk and Callan aren’t the only successful figures who received a wake-up call. It took a personal health crisis for Huffington Post founder Arianna Huffington to reshape her own idea of success. “It was a day I’ve talked and written about dozens of times – the day I collapsed from sleep deprivation and exhaus-tion, broke my cheekbone and woke up in a pool of blood,” she wrote in 2017. “For me,

that day literally changed my life. It put me on a course in which I changed how I work and how I live.” Her latest venture, Thrive Global, is dedicated to “end[ing] the stress and burnout epidemic.”

Before we barrel blindly toward excellence or 10,000 hours of mastery, it’s important to consider the potential trade-offs. Sometimes we get so invested in a certain outcome that we lose sight of why we even started. We can’t see the bigger picture, and our passion and excitement fade.

Take elite athletes, many of whom are groomed for greatness from a very young age. Sports psychologist Adam Naylor says he observes many college-level athletes who are now playing “out of obligation, not passion.” After a life spent in training, the excitement

What happens when the quest to rack up the hours required for excellence ends up compromising our health, relationships and even our happiness? Is excellence really the metric by which we should measure ourselves?

hidden inside. Even school-aged children are encouraged to pursue excellence as soon as they can hold scissors.

But at a certain point in my own career, I started to question excellence. As the founder of JotForm, should I be encour-aging our employees to strive for excellence and nothing less? How did we arrive at this state of obsession with excellence – and more importantly, what should be the standard for success?

How the excellence obsession beganSince 1936, when Dale Carnegie published his now-iconic book How to Win Friends and Influence People, ambitious readers everywhere have been striving to improve themselves. More recently came the 10,000-Hour Rule, popularized by author Malcolm Gladwell, who claimed that achieving excel-lence was simply a matter of time and dedi-cation – 10,000 hours of practice.

By offering a concrete, quantifiable goal, excellence seemed more achievable. Want to become an expert programmer, chef or hockey player? You can. We all can. It’s just a numbers game.

Gladwell’s theory is based on the research of Dr. K. Anders Ericsson, a professor of psychology who pioneered the study and science of peak performance. But Ericsson doesn’t entirely agree with Gladwell’s conclu-sions. In fact, he calls them “a popularized but simplistic view of our work … which suggests that anyone who has accumulated a sufficient number of hours of practice in a given domain will automatically become an expert and a champion.”

What happens, though, when the quest to rack up the hours required for excellence ends up compromising our health, rela-tionships and even our happiness? Is excel-



FEATURES

that first led them to pick up a hockey stick or tennis racket is long gone when they arrive at college.

When passion no longer fuels your drive, chances are you won’t achieve excellence – and you won’t be fulfilled.

Redefining successThe history and pitfalls of pursuing excel-lence are convincing, but how do we redefine the meaning of success? I believe we should think less about excellence and more about personal fulfillment – a sense of achieve-ment that’s balanced by wellness. The World Health Organization defines wellness as “a state of complete physical, mental and social well-being, and not merely the absence of disease or infirmity.”

Increasingly, we’re seeing more thriving, high-profile leaders who are openly priori-tizing their wellness. Whether it’s meditating, exercising or clocking at least eight hours of sleep, wellness is slowly replacing the old masochistic work habits. For example, many CEOs have regular meditation prac-tices, including Salesforce CEO Marc Benioff and Melinda Gates, co-chair of the Bill and Melinda Gates Foundation.

Wellness also means checking in with yourself and being self-aware. Sleeping, meditating and exercising are great practices, but it’s equally important to step back and re-evaluate from time to time. Examine your short- and long-term goals and whether your work still feels inspiring. Sure, you might not be whistling while you work every day, but on the whole, your job should bring you a sense of satisfaction and pride.

So now you’re focusing on fulfillment, meditating daily and feeling good about your work-life balance. But will you ever make a name for yourself if you don’t chase excel-

Will you ever make a name for yourself if you don’t chase excellence? By pursuing fulfilling work and living a balanced, healthy life, you might – because chances are you’re working from a place of inspiration instead of just going through the motions

WORK-LIFE BALANCE

Aytekin Tank is the founder and CEO of JotForm, an online form creation software with millions of users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without receiving any outside funding. For more information, visit jotform.com.

lence? Will you leave your mark on the world?There’s no guarantee. But by pursuing

fulfilling work and living a balanced, healthy life, you might – because chances are you’re working from a place of inspiration instead of just going through the motions. And even if you never launch your own company or ascend to the C suite, you can still make a strong contribution to your team, earn a good living and enjoy fulfilling hobbies outside of work.

Reaching for the top can have many nega-tive consequences – on our health, our rela-

tionships, our passion and our happiness. By striving for fulfillment instead of excel-lence, we might end up happier and more successful than ever before.

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FEATURES

LEADERSHIP


THERE ARE many ways to determine how good of a job you’re doing as a leader. One of my favourite ways is to evaluate the growth of team members. When the growth of a team member slows down, it means the leader or employee has lost their focus on the importance of personal development. This is important to note, because a team that continuously develops not only lasts, they also do great things together.

This got me thinking: What are some other questions that all leaders should be asking themselves monthly, regardless of their experience level? Here are seven ques-tions all leaders should ask themselves at least every 30 days.

Did you say ‘thank you’?This should be the easiest question to answer. One leader of mine would

write a handwritten note to every employee in the company on their work anniversary, just to say thank you. A simple ‘thank you’ in a handwritten note, email, text or, better yet, in

LearnLoft’s John Eades outlines seven questions managers need to ask themselves each month to gauge whether they’re leading effectively

person goes a long way. How far? I still remember it and am writing about it to encourage you to do the same.

Did you give your team valuable learning material?Most likely you’re in a leadership role

because you are a lifelong learner. You were a sponge earlier in your career, and now you continue to consume content that improves you as a person. Are you sending your team blogs, podcasts, videos, books and ideas that will help them grow?

Did you change your mind because of a team member’s opinion?

If you can’t put your finger on the last time you changed your mind because of a team member’s perspective or opinion, it’s a real problem. It means one of two things: Your team members aren’t engaged enough in their job to come up with new ideas, or you aren’t doing a good enough job asking for their opinion and listening.

Questions all leaders should ask themselves

Did someone proactively ask for more responsibility – or just do it without asking?

No team can reach its full potential without individual team members being proactive and seeking more responsibility. When this isn’t happening, it’s often caused by a manager who tends to micromanage and assume their team can’t complete tasks as well as they can.

On the flip side, if a team member does this, they feel comfortable approaching you and are confident you’re going to be open to it. This is a true sign of growth for both the leader and the employee.

Did you say ‘great job’?When you tell a team member ‘great job,’ it is typically tied directly to

results or some kind of behaviour that produced those results.

If you’re saying ‘great job’ more often, your team will gain confidence and look to replicate those results over and over again.

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to document their professional goals, and then find ways to align the work they do on your team toward their achievement of those goals.

Did you laugh with your team?The most underrated, but arguably the most important, characteristic

of a being a great leader in today’s work environment is being able to have fun at work. This can’t be faked or manufactured, but it’s

Did you talk with team members about their goals or progress toward those goals?

One of the most important things you can learn about your employees is what their professional goals are. While this might seem counterintui-tive, leaders who know this can look to ensure they provide opportunities and support to make these goals become a reality someday.

Find time to explore and encourage people

a great question to ask yourself, as it might shed some light on the need to bring the laughter out of your team and foster a joyful environment.

My hope is that these seven simple ques-tions will have you evaluating the basics of leadership. If you don’t like the answers you came up with, just remember that leader-ship is a journey and not a destination. Be better tomorrow!

Find time to explore and encourage people to document their professional goals, and then find ways to align the work they do on your team toward their achievement of those goals

John Eades is the CEO of LearnLoft, a full-service organizational health company whose mission is to turn managers into leaders and create healthier places to work. He is a speaker, host of the Follow My Lead podcast, and author of F.M.L.: Standing Out & Being a Leader and the upcoming book The Welder Leader. For more, visit learnloft.com.

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FEATURES


CUSTOMER SERVICE

Growing your business means evolving beyond merely reacting to what your competition is doing, writes Darrell Hardidge

IF YOU LOOK at high-performing busi-nesses, you’ll notice that they actively plan into the future. They’re always clear on what they want. And their strategic plan is clearly documented.

Every successful company is proactive in their thinking, and they don’t leave anything to chance. Most importantly, they don’t assume they know; they seek assurance from their customers to ensure they are on track. They can assess how accurately they are predicting the future, and this is always linked to their current business metrics.

However, many businesses fail to develop a strategic plan. They are mostly reactive to what’s happening today, this week, etc., and focus more on their competition.

Number-one companies follow the mantra “obsess over your customers, not over your competitors.” They proactively look at how to keep adding value to their customers and how to ensure they give their customers a brilliant service experience. They focus on team training and mentoring to ensure their team always can deliver high standards of customer service.

By contrast, most companies in reactive

How to be proactive, not reactive

mode continually focus on what their competitors are doing an end up in a price war, trying to outdo each other to win customers. The problem with this reactive approach is that it’s challenging to stay focused on your own game because you keep getting trapped in someone else’s.

The only thing you can control in a

competitive market is what you do internally to ensure you deliver service excellence. Trying to control and outwit your competi-tors is a risky and expensive game.

Lead your marketIf you focus on doing everything you can to be proactive in the way you deliver service excellence, you will automatically be ahead of your competition. Most are too busy focusing on what everyone else is doing,

rather than being strategic on what they’re doing themselves.

One key reason is that they don’t have any quality data to know what’s going on. At best, they have a vague opinion. As W. Edwards Deming said, “Without data, you’re just another person with an opinion,” and we all know what that’s worth.

Knowledge is power Being strategically proactive ensures that you have a game plan and measurement to know if you’re on track. With the correct KPIs, you can measure how well you’re fulfilling your prediction.

There’s a metric that we call the ‘one number theory.’ It’s at the centre of meas-uring everything that’s going on in your busi-ness. A very accurate customer experience measurement provides a clear reflection

The only thing you can control in a competitive market is what you do internally to ensure you deliver service excellence

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from an independent market perspective – that is, the true voice of your customer.

When you can measure critical areas such as the sales process, the implementation and onboarding process, account management, delivery processes, operations (including things like accounts receivable), company- wide communication, and knowledge from the independent perspective of your market, you’ll have a very accurate assessment of how well you’re performing. When you have this information and you keep driving it towards the optimal 10/10 result, you can keep designing in a proactive manner that ensures you’re staying ahead of the game and fulfilling and exceeding customer expectations.

If you don’t, then you’ll keep chasing

everybody else. It’s like driving with the rear-view mirror. You can only see where you’ve been, and you don’t know where you’re going. It’s extraordinary to think that most companies operate this way. Business growth is directly linked to the customer experience.

Proactivity pays offThe proactivity of customer experience ensures there is a plan and a commitment to growing revenue, based on increasing the value you offer to your customers. The more value you provide, the more they’ll spend, and the higher margin you’ll receive because they’re happy to pay for quality – but most importantly, they’ ll refer their friends and colleagues.

Darrell Hardidge is a customer experience strategy expert and the CEO of customer research company Saguity, which specializes in driving revenue growth from customer appreciation. He is also the author of The Client Revolution and The 10 Commandments of Client Appreciation. To find out more, visit saguity.com.

If you obsess over your customers and not your competitors and put in place very accu-rate KPIs to understand what your customers value about doing business with you, you’ll be in a powerful position. If you don’t do this, and instead you just wait and see what happens in the challenging economy ahead, it’s potentially a recipe for disaster.

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PEOPLE

OTHER LIFE TELL US ABOUT YOUR OTHER LIFEEmail [email protected]

Lea has visited Lea has visited 39 US states 39 US states a nd 11 Canadia n a nd 11 Canadia n provinces a nd provinces a nd territories so fa r territories so fa r – his goa l is to – his goa l is to visit them a llvisit them a ll


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71Total number of

countries Lea has travelled to

14,115 ft. Height of the tallest mountain Lea has

climbed (Pikes Peak)

8,068Mileage of the longest

flight Lea has taken (Hong Kong to New York)

Photo by Derek Neumeier

TAKING OFFKevin Lea’s love of travel and aviation has taken him to some remote places – and even an aircraft cockpit

KEVIN LEA’S passion for travel and aviation has long been a constant in his life, both in and outside of his work. The president of Alberta-based Fuse Insurance, Lea has even taken flight lessons to gain a deeper understanding of aviation insurance. That led to one of his most unforgettable in-air experiences: his first solo flight.

“Flying an R22 helicopter 50 feet above the Bow River was a pretty cool experience,” he says, adding that he’s also had some memorable moments as a passenger, including riding in “Singapore Airlines’ exceptional business class on the A380’s upper deck.”

Lea’s love of travel has taken him to remote loca-tions such as Barrow, Alaska – the northernmost point of the continental Americas.

“When I was a child, we often travelled to visit my grandparents in Florida or Ontario, and I’ve always liked flying and travelling through the various connecting airports,” he says. “Since I began travelling more as an adult, that love has only grown. But sadly, it’s currently on hold due to global travel restrictions.”

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