WWW.INSURANCEBUSINESS.CA ISSUE 7.06 | $12.95
2019
TOP INSURANCE WORKPLACES PRESENTED BY
C
A
N
A
D
A
What the industry’s best-rated companies are doing to leap ahead of the rest
MODERNIZATION COMES TO LLOYD’S
Can a slew of new initiatives turn things around in the London market?
00_OFC Spine OBC-SUBBED.indd 2
INSURANCE BUSINESS CANADA AWARDS Find out who made the cut as a finalist this year
WELCOME TO THE HARD MARKET
How to prepare clients for the shock of premium increases
13/11/2019 3:44:10 AM
There’s no loss needed to access our claims service. Our claims professionals are by your side even before your policy is issued – ‘level-setting’ on coverage intent, helping you mitigate potential claims, and drawing up a plan to address your specific needs and preferences when a loss occurs. All so that when a claim happens, our claims handling excellence is there right on schedule. At BHSI, claim time starts day one.
Claim time.
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.
IFC-01.indd 8
13/11/2019 3:56:54 AM
COMMERCIAL INSURANCE PRODUCTS
DATA AND CYBER PROTECTION
The question is no longer if a business will be hacked, but when.
THE FACTS
15 in
Canadian businesses are hit by cyberattacks each year
54
%
of email scams target small and mid-sized businesses
$
149k
is the average cost of data breach recovery for small and mid-sized businesses
Padlock Cyber and Data Breach Coverage Now Quoted on All New Commercial Business Cyberattacks and data breaches continue to dominate headlines with more and more Canadian companies spending tens of thousands of dollars to recover from ransomware attacks, breaches involving customer records and the huge reputational damage that these cause. While once an option, cyber insurance is now a necessity. That’s why we’re quoting all new commercial business with our industry-leading Padlock cyber and data breach protection. Padlock combines the same comprehensive cyber and data loss coverage that big companies receive with the affordable pricing that small and mid-sized businesses deserve. To find out more, speak with your Business Development Manager.
goremutual.ca
IFC-01.indd 9
13/11/2019 3:57:04 AM
ISSUE 7.06
CONNECT WITH US Got a story or suggestion, or just want to find out some more information? twitter.com/InsuranceBizCA
CONTENTS
plus.google.com/+InsurancebusinessCa facebook.com/InsuranceBusinessCanada
INSURANCE BUSINESS CANADA AWARDS FINALISTS, P36
UPFRONT
2019
04 Editorial
Is insurance destined to always be behind the times?
FEATURES
44
CORPORATE RISK SOLUTIONS
24
Aviva Canada’s Phillip Best outlines how brokers can better serve the complex needs of their large corporate clients
PRESENTED BY
C
A
N
A
D
50
A
SPECIAL REPORT
PEOPLE
How Lauren Bailey helped build Allianz Global Corporate & Specialty’s entertainment division into an international force
20
THE NEXT FRONTIER FOR CANNABIS
Fuse Insurance’s Kevin Lea on what the future of cannabis insurance looks like after Canada’s second round of legalization
56 FEATURES
EXPERT ADVICE
Tips for preparing clients for the realities of a hard market
2
08 Head to head
How important is it for brokers to get on board with insurtech?
10 News analysis
Can Lloyd’s of London’s new modernization strategy right the ship?
12 Intelligence
This month’s big movers and shakers
14 Technology update
There’s one area of insurtech that deserves greater focus from carriers
16 MGA update
Helping small businesses come to grips with their cybersecurity obligations Why centralized decision-making is vital for modern insurers
Find out which industry employers are going above and beyond in areas like compensation, culture, diversity and more
INDUSTRY ICON
Key data that should be on your radar
18 Opinion
TOP INSURANCE WORKPLACES
PEOPLE
06 Statistics
FEATURES 52 ENCON rebrands as Victor IBC explores what’s changed and what’s the same for the MGA
PEOPLE 48 Career path
A summer job taught Stanislav Kojokin the importance of never giving up
55 Other life
Getting in tune with broker and piano player Kenneth Baker
INSURANCEBUSINESS.CA CHECK IT OUT ONLINE
www.insurancebusiness.ca
02-03_TOC-SUBBED.indd 2
13/11/2019 3:35:49 AM
02-03_TOC-SUBBED.indd 3
13/11/2019 3:35:49 AM
UPFRONT
EDITORIAL
The future is already here
T
he “most advanced marketplace in the world.” That’s what Lloyd’s of London set out to become when it launched Blueprint One at the end of September. In the document, Lloyd’s outlined six initiatives that it believes will give it a heightened focus on digital, data and technology. This isn’t the company’s first step toward modernization this year. Back in March, on the back of a sexual harassment scandal, Lloyd’s offered another ‘breakthrough’ by introducing women to its governance committee. While the company should be applauded for taking steps in the right direction, it seems a couple decades too late to get up to speed on technology, and giving women more of a presence at the top is closer to a century behind the times. And Lloyd’s isn’t alone – these are industry-wide problems. Over in the UK, April 2019 marked the second annual deadline for companies with at least 250 employees to disclose gender pay gaps. The results were disappointing, particularly in insurance, where women earn, on average, 22.9% less than men. This is in a country where the Dive In Festival was born and where initiatives like Insuring Women’s Futures exist – what would similar mandatory reporting tell us here in Canada?
Insurance is so resistant to change that, by the time it jumps on the bandwagon, it seems like there’s a faster locomotive already waiting in the station Similarly, insurance is awash with initiatives to attract more millennials to the industry. Yet millennials are people born between 1980 and 2000 – so while some may be the innovative, straight-out-of-university thinkers the industry is desperate for, they’re just as likely to be pushing 40. Gen Z – those born from the mid-1990s to the mid-2000s – should be the real target demographic. This is the stumbling block the industry constantly faces – it’s so resistant to change that, by the time it jumps on the bandwagon, it seems like there’s a faster locomotive already waiting in the station. This is where customers’ negative perceptions emerge and why attracting a new generation of employees has been so difficult. It’s no longer about producing a blueprint for the future while everybody else moves on – it’s about making changes now.
The team at Insurance Business Canada
www.insurancebusiness.ca EDITORIAL Managing Editor Paul Lucas Editor Bethan Moorcraft Writers Lyle Adriano, Ellen Burkhardt, Tom Goodwin, Alicja Grzadkowska, Libby MacDonald, Ryan Smith, Lucy Saddleton, Ksenia Stepanova Copy Editor Clare Alexander
CONTRIBUTORS Kevin Deveau
ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Production Coordinator Kim Kandravy Traffic Manager Ella Dayandante
SALES & MARKETING National Account Manager Eric Langille Business Development Manager Desiree McCue Vice President, US Market Cathy Masek Vice President, Sales John Mackenzie Global Head of Communications Lisa Narroway Project Coordinator Jessica Duce
CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley
Editorial Inquiries paul.lucas@keymedia.com Subscription Inquiries subscriptions@keymedia.com Advertising Inquiries eric.langille@kmimedia.ca desiree.mccue@keymedia.com
KMI Media 20 Duncan Street, Suite 300 Toronto, ON M5H 3G8 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Denver, London, Sydney, Auckland, Manila, Singapore, Seoul
Insurance Business Canada is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business UK gemma.powell@keymedia.com T +44 20 7193 0935 Insurance Business Australia peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO
4
www.insurancebusiness.ca
04-05_Editorial-SUBBED.indd 4
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.
13/11/2019 4:27:59 AM
HELPING CANADIANS UNDERSTAND RISING INSURANCE RATES
$1.9 billion
in insured losses over 2018 due to severe weather across Canada
Source: Insurance Bureau of Canada, 2019
$30 billion+
per year spent across the P&C industry to manage and respond to fraudulent activity Source: Insurance Information Institute, 2017
vs.
60%
+
$5.2 billion
per year on average claimed for home insurance in Canada from 2010 to 2013 Source: Insurance Bureau of Canada, 2015
in average costs for maintenance and repair of one GMC vehicle (2007 vs. 2014)
steady increase in housing prices in large Canadian cities such as Vancouver and Toronto, from 2010 to 2016
Source: Consumer Reports, 2017
Source: CMHC, 2018
It’s a tough time for Canadians as the cost of home and auto insurance is going up. In a hard market, brokers play a critical role in helping consumers understand their options. Working with our broker partners, our goal is to educate Canadians with easy-to-understand information so they can make smart, confident decisions. Go to economical.com/rateincreases to learn why rates are going up, and share the link with others.
stry
ut he
Insurance can be better economical.com/rateincreases
property | auto | business Economical Insurance includes the following companies: Economical Mutual Insurance Company, Family Insurance Solutions Inc., Sonnet Insurance Company, Petline Insurance Company. Š2019 Economical Insurance. All Economical intellectual property belongs to Economical Mutual Insurance Company. All other intellectual property is the property of their respective owners.
04-05_Editorial-SUBBED.indd 5
13/11/2019 2:38:29 AM
UPFRONT
STATISTICS A DECLINE IN CYBER CONFIDENCE
HAS INSURTECH ALREADY PEAKED? The wave of insurtech startups might have crested, according to a new report on the sector from Deloitte, which revealed that more than 200 insurtechs were founded in 2016, marking an eight-year high. But since then, the number of new insurtechs on the scene has fallen significantly, down to just 12 in 2018. Deloitte attributed the drop-off to the fact that insurtechs are increasingly being launched to support incumbent carriers rather than disrupt the industry.
18%
of companies have no confidence in their ability to understand and assess cyber risks (up from 9% in 2017)
60
50
40
30
19%
of companies have no confidence in their ability to prevent cyber threats (up from 12% in 2017)
20
10
0
22%
of companies have no confidence in their ability to respond to and recover from a cyber event (up from 15% in 2017)
11%
of companies have a high level of confidence in all three of these areas of cyber resilience
2008
2009
2010
2011
WHO’S GETTING HIT BY RANSOMWARE?
4% 4% 2%
Chubb recently reported an 84% uptick in ransomware claims between 2017 and 2018. The latest data, broken down by industry, shows that professional services firms continue to make up the lion’s share of ransomware targets, in part because any business that relies heavily on email presents more opportunities for employees to click on malicious links.
Professional services Healthcare Manufacturing Financial institutions Retail/hospitality Technology
Other Education Entertainment/media Public entities Utility/energy/oil/gas Transportation
2% 1%
6% 30%
8%
2016–2018
7%
14%
5% 17%
1% 6%
3% 13% 2%
2012
8%
30%
2019
3% 23%
11%
Source: 2019 Global Cyber Risk Perception Survey, Marsh and Microsoft Source: Cyber in Focus, Chubb, October 2019
6
www.insurancebusiness.ca
06-07_Stats-SUBBED.indd 6
13/11/2019 2:40:19 AM
INSURTECH INVESTMENT STILL GOING STRONG
NUMBER OF INSURTECH STARTUPS LAUNCHED ANNUALLY Commercial insurance Personal insurance
Insurance customer acquisition
Despite the decline in insurtech launches, Deloitte’s data shows that investment in the sector remains robust; 2019 is on pace to eclipse the previous funding record set in 2015. Carriers, however, have only contributed a quarter of the US$2.2 billion raised so far this year.
Insurance operations P2P insurance
AMOUNT OF INSURTECH FUNDING GLOBALLY
$3bn
$2bn
$1bn
$0 2013
2014
2015
2016
2017
2013 2014 2015 2016 2017 2018 2019 (H1)
2018
Source: Accelerating Insurance Innovation in the Age of Insurtech, Deloitte, 2019
Source: Accelerating Insurance Innovation in the Age of Insurtech, Deloitte, 2019
DATA BREACH COSTS CLIMB The average cost of a data breach to an organization has hit US$3.92 million, up from US$3.86 million in 2018. That puts the average cost per lost or stolen record at US$150.
$4m
THE FUTURE DRIVERS OF INSURANCE According to insurers surveyed by Capgemini and Efma, customers’ need for an end-to-end solution will be the number-one factor propelling the insurance marketplace of the future. However, most insurtechs believe that new players entering insurance will be the market’s main driver.
WHAT WILL DRIVE THE INSURANCE MARKETPLACE OF THE FUTURE?
$3m
Insurers’ view
Insurtechs’ view
100%
$2m
80% 60% 40%
$1m
$0
20%
$3.5 million
$3.79 million
$4 million
$3.62 million
$3.86 million
$3.92 million
2014
2015
2016
2017
2018
2019
Source: Cost of Data Breach Report, IBM Security and Ponemon Institute, 2019
0%
Customer need for an end-to-end risk solution
Reducing operational costs
New players offering insurance services
Closing the New business coverage gap models
Maximizing revenue
Source: World Insurtech Report, Capgemini and Efma, 2019
www.insurancebusiness.ca
06-07_Stats-SUBBED.indd 7
7
13/11/2019 2:40:25 AM
UPFRONT
HEAD TO HEAD
Is insurtech a business imperative for brokers? Do brokers need to jump on the insurtech bandwagon or risk being left behind?
Stephen Billyard
President Billyard Insurance Group “Absolutely yes. And no. Insurance brokerages must innovate or die. Broker technology is falling woefully short of meeting the expectations of clients and brokers alike. Brokerages that don’t invest now will be leapfrogged over. However, insurance brokering today remains a people-focused business. The majority of client acquisition still comes from referrals, and the most desirable clients are those seeking an advicebased conversation. As brokers chase the millennial who wants to do business on her smartphone, we can’t ignore that most assets worth insuring still belong to the more mature demographic, and it will remain that way for the next decade.”
Shirley Chisholm
Christine Maligec
Vice-president Marsh Canada
President RIMS, Northern Alberta chapter
“Insurtech is transformative innovation to shape the insurance industry. Insurance intermediaries, much like insurers, will have no choice but to embrace this transformation. Brokers must respond to the consumer demand for ‘sooner, faster, better and quicker’ service more efficiently and effectively. Insurtech is the necessary revolutionary tool to augment the process on certain product lines. There is no ‘one size fits all’ approach, and we expect that insurtech will continue to evolve alongside emerging and innovative products and consumer demand to maximize efficiency and efficacy. Additionally, these technologies are expected to lower costs to the brokerage.”
“Technology is rapidly evolving, yet some aspects of the insurance industry haven’t seemed to budge an inch. It seems that in the Amazon age, our industry has maintained its feel from the Code of Hammurabi – the first documented principles of insurance and liability, which were rules literally chiseled into stone. It seems the user experience could use a bit of work. Think about the last time you bought something online: How easy was that experience? Insurtech can help remove friction points for the customer, make interacting with brokers and insurers much easier, and allow risk professionals to make better risk-informed decisions.”
THE NEW GOLD RUSH Globally, insurtech investment set a record of US$4.2 billion for the year in 2018; by the first half of 2019, investment in the sector was already US$3 billion, according to international M&A advisor Hampleton Partners. “In this high-growth sector, we have seen more VC funding being funnelled into larger and higher-valuation deals that have already shown success,” said Hampleton Partners founder Miro Parizek. “Emerging technologies offer solutions to underserved markets, enhance business models or create new markets altogether. For example, insurtechs are taking advantage of global trends in smart home device tech to shift towards proactive risk management for homeowners, rather than reactive risk assessment, in this new disruptive business model.”
8
www.insurancebusiness.ca
08-09_H2H-SUBBED.indd 8
13/11/2019 2:51:01 AM
This is Karen. Karen is listening to the purr of her new tractor... being driven into the barn wall.
Not a good time for Karen to dig deep into her farm’s insurance policy. Here at The Commonwell Mutual Insurance Group, we’ve developed online quizzes for people to test their Insurance IQ. Karen could have taken the farm quiz, then one of you - our trusted local brokers - could have chatted through any holes before the walls came down.
Call your Commonwell business development representative to get involved: 1-855-436-5883 Curious about your own Insurance IQ? Take a quiz: thecommonwell.ca/farm www.insurancebusiness.ca
08-09_H2H-SUBBED.indd 9
9
13/11/2019 2:50:56 AM
UPFRONT
NEWS ANALYSIS
Change comes to Lloyd’s In the midst of the many challenges that have plagued the London market, will a new modernization strategy at Lloyd’s help to revitalize the global center of insurance?
LONG REGARDED as the centre of the world’s insurance market, London has been hit with its fair share of challenges in recent years. From customers turning to local and emerging markets for insurance and reinsurance solutions, to a looming talent gap that has hit insurance companies in many parts of the world, experts have been warning about the threats to London’s position as the go-to global market for specialty commercial insurance for several years. “What people are concerned about is the fact that firstly, the share of the global insurance market that comes to London is declining,” says Jamie Althorp, managing director for Accenture Financial Services
Low interest rates have also become the new normal, which is impacting insurance business in many regions, but certainly in London, where insurers can’t make the same returns on investments as they once did. Yet in spite of these and other challenges, the market continues to have a lot going for it. “London is still a very vibrant insurance market, and that will remain for the time to come because it’s got that reputation, and ultimately, insurance is about trust,” Althorp says. “You have to trust that the organization you’re insuring with is going to be able to pay in the event of a claim, and London and Lloyd’s provide that trust. Most importantly, you’ve got a critical mass of talent here
“London is still a very vibrant insurance market, and that will remain for the time to come” Jamie Althorp, Accenture Financial Services and leader of the company’s London markets and specialty practice. “The global insurance market is growing quicker than the London insurance market, and that would therefore suggest that there’s a high proportion of insurance that is being written outside of London.”
10
– brokers, underwriters, lawyers and various experts that you need to make a market work. The concern is that those things will erode over time.” The focus on cutting costs hasn’t made brokers’ jobs any easier. There’s been a lot of emphasis on trying to reduce costs
within insurance organizations as they strive for efficiency, and that’s been the case for brokers and underwriters as well. The pace of mergers and acquisitions is likewise putting pressure on everyone in the global insurance value chain. According to Clyde & Co.’s Insurance Growth Report, the first half of 2019 saw 222 completed M&A deals worldwide, up from 196 in the second half of 2018. That represents a 13% increase in the volume of transactions – the highest since the first half of 2015. This challenging environment has taken its toll on Lloyd’s, but it’s responding to the obstacles head-on. In the midst of a tough year during which it reported a pre-tax loss of £1 billion for 2018 and made headlines for a boys’ club culture punctuated by harassment, Lloyd’s unveiled what it called “a bold new strategy” aimed at transforming the centuries-old exchange’s future. The Future
www.insurancebusiness.ca
10-11_News Analysis-SUBBED.indd 10
13/11/2019 2:52:41 AM
LLOYD’S GWP BY REGION Over the past decade, the share of North American gross written premium at Lloyd’s has increased (from 45% in 2009 to 51% today), while the proportion coming from the UK and Europe has shrunk from a combined 36% in 2009 to a total of 27% today. 60%
50%
40%
30%
20%
10%
0%
51%
7%
US and Rest of the Canada Americas
14% UK
13%
11%
4%
Rest of Central Rest Europe Asia and of the Asia-Pacific world Source: Aon/Lloyd’s
at Lloyd’s initiative brings to the table six key ideas that will guide the company’s response to the challenges it’s facing, as well as help the market capitalize on opportunities and deliver value to customers.
tion, next-generation claims services, and an ecosystem of services that lend market participants a hand in developing new business and providing high-quality services to their clientele.
“[Lloyd’s is] being very collaborative in a way that previous iterations of modernization work … hadn’t been” Christopher Croft, LIIBA The proposed ideas, which are now being rolled out, include a platform for complex risk that enables digital placement, flexible capital that can access diverse risks on the platform, the launch of the Lloyd’s Risk Exchange for the placement of less complex risks, the Syndicate-in-a-Box solu-
“Implicit in [this strategy] is that they’re being very collaborative in a way that previous iterations of modernization work at Lloyd’s hadn’t been,” says Christopher Croft, chief executive of the London & International Insurance Brokers’ Association [LIIBA]. “There’s broker
representation on the global advisory board, and at the lower level, we have a lot of our practitioners plugged into the relevant workstreams who are providing feedback, but are also crucially seeing things change as a result of that feedback on occasion – so it’s not just a PR exercise.” And while implementing the sweeping changes won’t be easy, Croft believes the market is on the right track to patching its profitability gaps, along with addressing other issues. “Actually doing it will be a challenge,” he says. “It’s a market without a great reputation for implementing change programs, so regardless of what you might think about the individual workstreams, there’s a big job to do. The sooner they can start demonstrating some delivery momentum, the better, because that’s where those who wish to be skeptical will concentrate their skepticism.”
www.insurancebusiness.ca
10-11_News Analysis-SUBBED.indd 11
11
13/11/2019 2:52:47 AM
UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
BrokerLink
Jamber Insurance Services, Routh Chovaz Insurance Brokers
Jamber and Routh Chovaz offer a variety of insurance solutions to customers in Calgary and the GTA, respectively
CFC Underwriting
Solis Security
Its acquisition of the cyber incident response provider will boost CFC’s cyber response capabilities
Hub International
PDF Financial Group
Toronto-based PDF is an independent brokerage that provides consulting and outsourcing services for employee benefit programs
Nassau Financial Group
Foresters Financial Holding Company, Foresters Life Insurance and Annuity Company
This marks the final stage of Foresters' offloading of its North American asset management business
Navacord
Waypoint Insurance
Waypoint is a BC-based independent brokerage that has served the Vancouver Island community for more than 100 years
a
Duuo unveils on-demand products
Duuo has launched two new on-demand products that were built on Slice Labs’ Insurance Cloud Services platform: event insurance and rent-my-stuff insurance. The former protects event hosts with up to $5 million in event liability, which covers bodily injury and property damage. Prices start as low as $6 per event, and liquor liability can be added for non-sporting events. Duuo’s rent-my-stuff insurance, meanwhile, reduces the risk of renting out personal belongings on peer-to-peer platforms, making such transactions easier by removing reliance on the renter to secure insurance.
Waypoint takes Navacord past the $1 billion mark
Commercial insurance brokerage Navacord has officially surpassed the $1 billion premium threshold after adding Vancouver Island-based Waypoint Insurance Services to its growing family of firms. Waypoint is one of the largest independent insurance brokerages in BC and currently has 15 offices on Vancouver Island, two in North Vancouver and one in Surrey. The announcement marks Navacord’s ninth partnership deal in 2019 and its sixth in Western Canada. Navacord executive chairman T. Marshall Sadd described surpassing $1 billion in premium as a “momentous achievement for Navacord,” adding that “our vision to build the great Canadian brokerage started in 2014, and we are realizing this vision with outstanding broker partners like Waypoint.”
12
QBE North America enhances its cyber solution
QBE North America has introduced an enhanced cyber solution that helps protect customers from evolving cyber threats. The new product includes coverage for cyber liability, media liability for digital and electronic publications, data breach notification costs, asset rectification costs, regulatory defence and penalty costs, public relations fees, forensics, business interruption, and extortion and credit monitoring. It also features easy-to-read policy language, first- and third-party insurance clauses, and fewer exclusions. It can cover risks up to $10 million across a variety of business classes.
www.insurancebusiness.ca
12-13_Intelligence-SUBBED.indd 12
13/11/2019 3:13:41 AM
PEOPLE SSQ Insurance covers pharmacogenetic testing
SSQ Insurance has added coverage for pharmacogenetic testing as an option in its group insurance offerings. Pharmacogenetic tests help analyze how an individual’s DNA will react to a prescription drug, which makes it easier for attending physicians to identify the most appropriate drug. The new pharmacogenetic tests clause can be added to a health insurance policy at the policyholder’s request, in accordance with a reimbursement maximum of their choice. Testing must be prescribed by a physician and carried out in an authorized Canadian lab to be eligible for the coverage.
Chubb updates its cyber claims tool
Chubb has upgraded its proprietary Chubb Cyber Index to provide even more insight into cyber threats. The Cyber Index initially offered global claims and policy data, but thanks to the update, it can now provide cost analysis on incident responses, as well as insights on cyber insurance limits and deductibles. According to Chubb executive vice-president and cyber unit head Michael Tanenbaum, the integration of the company’s global capabilities and the new features will give users of the Cyber Index insight into the “tangible ramifications” of a digital attack.
Beazley launches cyber risk management suite
Beazley has rolled out a suite of cyber risk management services for international cyber policyholders. Designed to help mitigate the risk of a breach, the resources include pre-breach and risk management services selected and managed by Beazley’s in-house Beazley Breach Response Services team.“Our BBR Services team is on the front line assisting our policyholders with incidents each day,” said Raf Sanchez, international BBR services manager. “We recognize that helping them to prevent these incidents in the first place is a critical benefit to their organizations.”
NAME
LEAVING
JOINING
NEW POSITION
Nicolas Burnet
Zurich Insurance
PartnerRe
Executive vice-president and chief financial officer
Ariel Couto
N/A
Brokerslink
Americas regional manager
Denise Gaeta
iv3
LowestRates.ca
Head of property & casualty insurance
Peter Giger
Swiss Financial Market Supervisory Authority
Zurich Insurance
Chief risk officer
Gérald Harlin
N/A
AXA Investment Managers
Executive chairman
Barbara Haynes
DAS Canada
ARAG Services Corporation
Senior advisor
Rachel Turk
N/A
Beazley
Head of corporate development
Simon Wilson
N/A
Markel Corporation
Managing director, national markets division
LowestRates.ca gets new head of P&C
LowestRates.ca has appointed Denise Gaeta to the role of head of property & casualty insurance. Gaeta has 17 years of experience in the insurance industry, including stints in broking, underwriting, loss control, risk management and recruitment. Gaeta most recently served as the national president of iv3 for nearly four years. “I developed a lot of relationships and contacts within the industry at a higher level [from] working with predominantly carriers, MGAs and then some large brokerages as well,” she said. “Essentially, what LowestRates.ca is trying to do is help primarily brokerages – and direct writers – grow through carrier relationships ... I bring something different to the leadership team with my background.”
ARAG Canada expands leadership team
ARAG Services Corporation, the Toronto-based subsidiary of ARAG Group, has named Barbara Haynes as senior advisor. In her new role, Haynes will support ARAG’s Canadian leadership team, offering strategic advice on business development and helping to position the company as an innovative and successful partner for legal protection in the Canadian market. Boasting nearly 40 years of insurance experience, Haynes was previously the founding president and CEO of DAS Canada, where she was instrumental in setting up the Canadian legal expense insurance business. She most recently served as an independent director in the insurance industry.
www.insurancebusiness.ca
12-13_Intelligence-SUBBED.indd 13
13
13/11/2019 3:13:45 AM
UPFRONT
TECHNOLOGY UPDATE NEWS BRIEFS Munich Re launches automated underwriting tool
Munich Re Automation Solutions has launched Allfinanz Spark, an automated underwriting solution for the global mid-tier insurance market that helps companies explore valuable new opportunities and enhance their customer experience. Companies can input their own sources of data and analytics, such as predictive modelling and machine-learning algorithms, into the SaaS platform. “By offering auto-underwriting and analytics on a SaaS model, we are removing many of the upfront costs and implementation barriers to entry that mid-tier firms face,” said Munich Re Automation Solutions EVP Declan O’Neill.
Software developer Indio Technologies debuts in Canada
US-based P&C insurance management software developer Indio Technologies has expanded to the Canadian market. Indio offers a white-label workflow management platform that streamlines the insurance application process via smart forms, shortening the process while reducing the amount of paperwork that gets passed back and forth. Over the past two years, Indio’s platform has supported more than 350 insurance brokerages in the US. The company has created a PIPEDA-compliant infrastructure for Canadian brokers.
Brokerslink teams up with Swiss Re for new platform
Brokerslink has partnered with Swiss Re Corporate Solutions to develop a dedicated international insurance program management platform, which will enable broker partners and affiliates to “manage and deliver structured and
14
compliant international and crossborder programs” from a single online platform. “This strategic collaboration will provide our brokers with a cuttingedge solution that directly enhances their competitive advantage and appetite to service all their cross-border and multinational insurance programs to their clients,” said Brokerslink chairman José Manuel Fonseca.
CSIO provides eSlips marketing material to members
The Centre for Study of Insurance Operations [CSIO] has begun providing its members with consumer-facing marketing resources that showcase eSlips and electronic proof of insurance. The marketing material can be used by CSIO members to educate their customers on the benefits of electronic proof of insurance. The resources, which include promotional and how-to videos, links to the My Proof of Insurance website, and visual materials, are available to download on CSIO’s website and can be used on members’ own websites, social media channels and customer communications.
Swiss Re enables catastrophe notifications via online portal
Swiss Re Corporate Solutions has enhanced its online portal, Pulse, with a new function that delivers real-time natural catastrophe event notifications to clients. Powered by EigenRisk, the new notification function ensures each customer on the Pulse platform has the information they need at the right time. “Automated event alerts give the estimated impact for each customer within minutes of it occurring … this feature bridges technology, data and risk knowledge to add to our customers’ peace of mind,” said Swiss Re Corporate Solutions’ Stefan Wunderlich.
The problem with blanket insurtech investment Widespread investment ignores one facet of technology that insurers should pay more attention to It’s safe to say that insurtechs now have the attention of major insurance companies across the globe. Total worldwide funding in insurtech for 2019 has already surpassed the total for 2018, according to Willis Towers Watson’s latest report on the sector, and in Q3 2019, investment topped US$1.2 billion for the fifth consecutive quarter. But while it might be tempting for insurers to make broad investments across different emerging technologies in the hopes that one of them makes it big, one expert believes it’s wiser to focus on insurtechs that deal in one thing: data. “In insurance, data is fundamental to what we do in terms of assessing risk and pricing,” says Sean Ringsted, executive vice-president, chief digital officer and chief risk officer at Chubb, “and there’s been an awful lot that’s gone on with regards to data, particularly as it applies to commercial insurance.” Ringsted believes technological innovations centred around data could be especially useful for the small business insurance segment, which has traditionally been underserved by insurers. “You have a growing number of small businesses, and if you think about an entrepreneur or a startup, they don’t have much time, cash flow is important, and they want to be able to buy that policy and get it
www.insurancebusiness.ca
14-15_Tech Update-SUBBED.indd 14
13/11/2019 3:15:02 AM
wrapped up quickly,” he says. “That is really driving a lot of the innovations and advancements around the use of data.” Apart from investing in data, insurance companies should also focus on simplifying the customer experience, Ringsted says. Innovative data technology can help in this area by reducing the questions that need to be asked of customers to produce a quote.
“In insurance, data is fundamental to what we do in terms of assessing risk and pricing” Equally important is “being able to explain in plain English the type of coverages that you should have from a regulatory point of view,” Ringsted says. He points to cyber insurance as an example, noting that most small businesses are probably unaware of their risk or underinsured when it comes to cyber. Catering to small businesses’ cyber needs with an easy-to-understand insurance package will drive innovation in that space, he says. “I think having a very clear understanding of your customer base and their needs and then making sure that, as an organization, you are organized around those needs with technology [is important],” he says. “I think it starts there, and then you can figure out how you deliver that, whether that’s an internal model or using insurtech.”
Q&A
Sean Widdess Vice-president of strategic partnerships LOWESTRATES.CA
Years in the industry 4 Career highlight Prior to leading the sales team at LowestRates.ca, Widdess helped grow one of Canada’s largest mortgage broker networks to $14 billion in annual loan volume
Rate comparison: a conduit for leads What does LowestRates.ca bring to the insurance market? We’re the marketing conduit that helps brokers and direct writers grow their business and market share. Consumers are already used to comparing flights and hotels online, and we believe financial products like insurance are the next major growth space. Canadians are hungry for more insurance options, and they’re increasingly feeling comfortable getting such products online. LowestRates.ca currently generates more insurance leads for broker and bank partners than any other company in Canada, and as a marketing channel, leads from LowestRates.ca have the lowest cost per acquisition. We have saved Canadians almost $1 billion in interest and fees to date.
How can brokers take advantage of your platform? Insurance brokers these days are getting advice like, ‘You can do your own marketing or your own SEO.’ But doing this successfully is a big task. It involves hiring writers, designers and SEO specialists. It’s not easy, and most brokers will fail trying to grow their business this way, because there’s a lot of competition, and it’s not what insurance experts are great at. That’s where we come in. We’re at the top of Google’s search results for insurance terms. Consumers come to our website to compare all the brokers and insurance companies in the country. We believe we’re the best solution for any insurance broker looking to grow their customer base.
What insurance products are most suitable for rate comparison websites? All of them, because what we do doesn’t replace the experience of actually speaking to a broker and getting advice. Some people think rate comparison websites want to get rid of the human experience entirely, and that’s not true. We compare companies on our website so consumers can quickly and easily see pricing, and then they want to go and talk to a human being to answer any questions they may have. We also always talk about getting the right coverages, not just the cheapest. Some people might think because our name is LowestRates.ca, that’s all we care about – the lowest rates. But that’s not true. We encourage consumers to get the right coverages for their unique needs. What we can do is quickly show what the cheapest options are for that coverage.
What’s the future of insurance rate comparison in Canada? Explosive growth – and not just on the consumer side, but on the broker side as well. So far in 2019, we’ve passed more than half a million qualified Canadian consumers on to insurance companies, and that trend continues to grow. We believe rate comparison companies like ours will become a key pillar for brokers who want to grow their market share. Our potential market is essentially the entire Canadian population. People want to use sites like ours because they’re very convenient.
www.insurancebusiness.ca
14-15_Tech Update-SUBBED.indd 15
15
13/11/2019 3:15:04 AM
UPFRONT
MGA UPDATE
Federal cybersecurity initiative to help SMEs Ridge Canada’s Greg Markell explains how a new program can help small businesses avoid penalties
fine is not going to move the needle a lick as it relates to privacy or cyber for mid- to large-cap enterprises,” he says. “That’s a signal to small businesses that says, ‘Hey, get your house in order and start taking this seriously,’ because a Facebook or a Google or any of the FAANGs aren’t going to bat an eyelash at $100,000. “The federal government [with this pilot] is coming out and saying, ‘We recognize [the fines are] punitive, and maybe we should be doing something to support them,’ which I think is essential,” he adds.
“The $100,000 fine is not going to move the needle a lick … for midto large-cap enterprises”
The federal government recently announced a new voluntary certification program and talent development pilot called CyberSecure Canada, which one expert in the cyber insurance space believes is an effort to help small business shoulder their responsibilities under Canada’s Digital Privacy Act. “This has been a major issue for quite some time now, and we saw that via how they structured the potential fines and penalties as they
NEWS BRIEFS
relate to mandatory notification in the Digital Privacy Act that came into effect November 1 of last year,” says Greg Markell, president and CEO of cyber-focused MGA Ridge Canada. Markell notes that under the Digital Privacy Act, failing to notify the privacy commissioner could get a business slapped with a fine of up to $100,000 – a hefty penalty that hurts smaller organizations more than larger ones. “When you look at it that way, the $100,000
Ontario regulator says it won’t license MGAs
The CEO of Ontario’s new Financial Services Regulatory Authority [FSRA] recently shut down claims that the regulator plans to introduce licensing requirements for MGAs. Speaking at an Insurance Institute of Ontario event in Toronto in October, FSRA CEO Mark White said the regulator does not have the authority to license MGAs, but that it does plan to take a closer look at how MGAs interact with the public during the sales process as part of its sales conduct initiatives.
16
For its part, Ridge Canada has observed that more SMEs are considering cyber insurance, and brokers are helping spread awareness. “Our broker partners are getting better at communicating the actual exposures and what the policies do all the way down to small business,” Markell says. He adds that MGAs have a role to play in ensuring that brokers have access to the right insurance solutions to cover SMEs and their cyber exposures. “I think a lot of it has to do with who you have helping in claims scenarios,” he says. “We pride ourselves on using Canadian vendors, and we pride ourselves on using the best of the best, and we think that goes a long way.”
BMS Group names managing director for Lions Gate
BMS Group has appointed Rod Spurrell as managing director for Lions Gate Underwriting, the specialist MGA launched in 2015 by BMS Canada Risk Services. According to BMS, Spurrell’s appointment will contribute significantly to the company’s expansion into Central and Eastern Canada. Spurrell specializes in environmental impairment liability, excess and umbrella, architects’ and engineers’ E&O, and medical malpractice, and most recently served as VP of underwriting at Markel Canada.
www.insurancebusiness.ca
16-17_MGA update-SUBBED.indd 16
13/11/2019 6:02:43 AM
Q&A
Grant Kimball President ANGUS-MILLER INSURANCE
Years in the industry 40 Fast fact This year, Kimball is celebrating his 40-year anniversary working at Angus Miller, which itself is celebrating its 100th year in business
Serving Atlantic Canada, rain or shine What differentiates Angus Miller in the insurance marketplace?
How has Hurricane Dorian impacted the Atlantic Canada insurance market?
Angus Miller is a managing general agent located in Saint John, New Brunswick. We’ve been serving Maritime brokers since 1919, and this is our 100th anniversary. As the largest independently owned and operated MGA in the Maritimes, our long-standing relationships with our brokers give us unique insight into their needs, both from a coverage standpoint and the unique service requirements of the Maritimes. Our underwriting team has a combined 125 years of experience helping local brokers and their clients.
Hurricane Dorian had a large impact on the Maritimes, not only because of the wind and rain, but it was also a huge test for insurers and claims third-party administrators to assist those insureds who suffered damage. The sheer magnitude of the event was such that all the Atlantic provinces were impacted. This stretched everyone’s resources to the limit. We are now over six weeks past the event, and the general perception is that our industry would be given a very good grade on how it handled this extraordinary event. Although there is still much to be done to close every claim, there have been no real negative reports of slow response or lack of coverage. It’s times like this that our industry has a chance to show what our value proposition is all about.
What risks are unique to Atlantic Canada? Given the demographics of Atlantic Canada, there’s a tendency to have commercial insureds who have multiple seasonal aspects to their business. This presents a challenge in understanding exactly what coverage the insured needs and also finding adequate terms for that coverage. Angus Miller’s local knowledge helps us understand these risks and assist our brokers in obtaining adequate coverage and terms.
What are some unique growth opportunities in the Atlantic Canada market? One area of opportunity developing here in the Maritimes is healthcare and associated services. Halifax is becoming an incubator for medical advancements, as well as healthcare-associated development. This is creating a need for coverages ranging from E&O and D&O to medical malpractice, along with very specialized liability coverages.
ENCON Group rebrands as Victor Canada
ENCON Group, the Canadian MGA unit of global managing general underwriter Victor Insurance Holdings, has undergone a rebrand and is now operating under the name Victor Canada. Formed more than 50 years ago, the newly named Victor Canada has more than 250 employees at locations in Ottawa, Mississauga, and Edmonton. The MGA works with independent brokers across the country, providing a range of products and programs in professional liability, property, casualty, and group and retiree benefits.
H.W. Kaufman acquires Node International
How can brokers help their clients create a disaster preparedness plan? Most of the losses we saw occurred from either water damage or wind damage with trees falling on buildings or vehicles. Some helpful tips to prevent a loss are to make sure all drains around your house are clear of leaves and other debris. Also, have branches trimmed from trees if they are close to power lines or overhang your house or vehicle, and try to proactively have your trees trimmed of weak or rotten branches. It’s also a good idea to have a couple days’ provision of water and food in case the power goes out. Flashlights should be checked every six months to make sure they have strong batteries.
H.W. Kaufman Group has acquired Node International, an MGA dedicated to digital, cyber and technologyrelated insurance and reinsurance solutions. Founded in 2017, Node boasts a digital application process that can turn around accurate cyber liability quotes in minutes. The MGA also has the capability to provide 24/7 monitoring and cyber attack risk mitigation. Node will join Kaufman Group’s global network of companies in London, and CEO Neil Gurnhill will continue to lead the company within the Kaufman network.
Aon’s Maven Underwriters pulls out of the market
Aon has announced that its legal professional indemnity-focused MGA, Maven Underwriters, is withdrawing from the market. The company reached out to customers in a letter, offering to pass their applications to another broker, The Professional Indemnity Company, to arrange cover. Aon also revealed that a number of Lloyd’s capacity providers that had previously supported Maven Underwriters have withdrawn their capacity as part of the Lloyd’s decile 10 profitability review.
www.insurancebusiness.ca
16-17_MGA update-SUBBED.indd 17
17
13/11/2019 6:02:49 AM
UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email insurancebusiness@kmimedia.ca
Front and centre Adopting centralized decisioning will allow insurers to meet disruption head-on, writes Kevin Deveau DIGITAL DISRUPTION is continuing to redefine the insurance industry, impacting all stages of the customer life cycle across all functional areas, including claims, underwriting and reinsurance. Carriers that don’t stay a step ahead of industry shifts could find themselves dangerously exposed to new competitive threats, such as individualized policies. Insurance is not ‘one size fits all’ anymore. As in every other industry, consumers are looking for customized products that suit their situation. It’s time that carriers took each policyholder’s unique situation into account when assessing which coverages and policies to offer. To get to this point, however, insurance companies need to start by treating their decisions and strategies as assets to be directed at this goal. To avoid falling behind the times, centralized decisioning must be embraced as a new paradigm that benefits the industry. Centralized decisioning creates a collaborative and transparent view into all decisioning elements across the enterprise that can be tailored to each stakeholder’s unique requirements. This results in tangible, measurable and valuable business strategies that leverage carriers’ past IT and decisioning investments while allowing for the latest innovations in communications, analytics and optimization. The all-inclusive use of decision assets (rules, analytic models, strategies, etc.) from across an organization creates a force multiplying effect with profound business implications. This gives leaders the ability to create decisioning strategies that are consistent, transparent and expandable. Insurance companies use many different
18
systems – underwriting, pricing, paying claims, billing – each of which has an important function. These systems, however, don’t always use the same standards of decisioning, are often outdated and don’t always communicate with one another properly. Transactional decisions are housed in virtual silos that limit the ability of those in different areas to manage and use the information strategically. Centralizing the decision-making assets allows all decisions about policyholders to be
More and more insurance companies are trying to add sophisticated analytic models to their existing processing systems, but the old systems are often not capable of incorporating them and running them efficiently. Centralizing decisioning can help with this. A single repository for analytic models allows for a more structured way to deploy, manage, monitor, document and update models. Programs that provide this service, such as FICO’s Decision Management platform, enable internal and external data sources to be continuously transformed into useful, actionable and measurable strategies to drive business forward and improve the customer experience. Rather than waiting for the next wave of disruption to hit, savvy carriers are looking to a centralized decisioning platform to maintain a competitive advantage. By proactively pursuing a strategy of true data-driven customercentricity, insurance carriers can better customize their products and services and offer pre-tested, high-precision solutions targeting the right markets and customer segments. Centralized decisioning not only simpli-
“Centralizing the decision-making assets allows all decisions about policyholders to be connected and makes for a more complete relationship with the policyholder” connected and makes for a more complete relationship with the policyholder. This increases opportunities to provide better service or suggest policy modifications. It also offers business users outside of IT more control over the decision-making process, as the interface to change decision assets can be standardized and simplified. Knowledge of coding within individual systems would no longer be a requirement, allowing business users to better manage company goals and freeing the IT department to focus on other priorities. Analytics software and machine learning will enable insurance organizations to help settle claims, mitigate fraud, communicate with policyholders and underwrite risk.
fies the process for the insurer, it also helps the policyholder. Housing all the decisioning assets in one place speeds up the process while allowing the insurer a 360-degree view of the policyholder. Policyholders could receive quicker responses and benefit from savings on plans that are designed specifically for them. In light of the latest advancements in data analytics and systems management, it’s time for a 360-degree solution that allows policies to become about the policyholder. Kevin Deveau is the North American insurance practice lead at FICO and the VP and managing director of FICO Canada. His team is responsible for growing FICO’s insurance market share and strengthening relationships with clients.
www.insurancebusiness.ca
18-19_Opinion-SUBBED.indd 18
13/11/2019 3:16:55 AM
We click.
The future is digital. Let’s explore it together. Find out more about our specialty insurance and surety solutions.
Trisura Guarantee Insurance Company is a Canadian owned and operated Property and Casualty insurance company specializing in niche insurance and surety products. We are a proud supporter of the Insurance Brokers Association of Canada. www.trisura.com
a step above
18-19_Opinion-SUBBED.indd 19
13/11/2019 3:16:56 AM
PEOPLE
INDUSTRY ICON
LEADING IN THE LIMELIGHT Allianz Global Corporate & Specialty’s Lauren Bailey has taken a national entertainment division and expanded it into a global brand, all while keeping up with the rapid evolution of show business IN MOVIES, characters often take a leap of faith that propels them down an unexpected path. Lauren Bailey, global head of entertainment for Allianz Global Corporate & Specialty [AGCS], is no stranger to this narrative, having taken several leaps of faith during the course of her career, which eventually led her to a leadership position within AGCS’ entertainment insurance unit. Bailey began her insurance career as an underwriting trainee in personal lines and went on to climb the ranks of the industry. “I’ve never been afraid of taking on a challenge,” she says. “A lot of times, I think people question whether they’re ready for something new and whether they have the skill set to do it. Even if I had some reservations, I convinced myself to just go for it. At the time, there were some tremendous people who helped me – who really supported my career, who presented me with a lot of those opportunities and probably did a little bit of convincing – but ultimately, I took the fork in the road.” By 2009, Bailey was the head of Fireman’s Fund Insurance Company’s entertainment division, which was a leading insurer in Hollywood. There, she built relationships and expertise around the entertainment business as she moved on from personal lines. In 2015, the Allianz Group integrated
20
Fireman’s Fund, which it had acquired in the early 1990s, with AGCS. One of the responsibilities Bailey took on during this time was building the predominantly US-based entertainment division into a global force. She explains that it was critical to source experts with entertainment expertise who could work in various markets around the world alongside the existing AGCS team to support the
of entertainment risk – and there’s a myriad of responsibilities that come with that.”
Lights, camera, insurance The entertainment business has seen a lot of changes since the film industry was born in the late 19th century. For insurers like AGCS, keeping up with emerging risks and exposures, as well as the many ways that media can
“A lot of times, I think people question whether they’re ready for something new and whether they have the skill set to do it. Even if I had some reservations, I convinced myself to just go for it” introduction of a new line of business in those markets with their local expertise. “I don’t know how often something like that comes along, but for us [at] Fireman’s Fund Entertainment, that was really a unique opportunity,” Bailey says. “We were integrating into a new organization with new key relationships, and those relationships exist all over the world – not just in the home office in Munich, but anywhere there’s a concentration
be consumed today, is a challenge – one that Bailey is excited to tackle. From motorsports to motion pictures and major festivals, each type of production has unique features that need to be accounted for in the underwriting process. “In that regard, it’s always challenging,” she says. “A lot of what we do is evaluating new exposures and new risks because while there may be similarities to the last picture or event that was insured, each one is unique.”
www.insurancebusiness.ca
20-23_Industry Icon-SUBBED.indd 20
13/11/2019 3:31:18 AM
PROFILE Name: Lauren Bailey Title: Global head of entertainment Company: Allianz Global Corporate & Specialty Based in: Los Angeles Career highlight: Leading the integration of Fireman’s Fund Entertainment with AGCS and expanding the division globally
www.insurancebusiness.ca
20-23_Industry Icon-SUBBED.indd 21
21
13/11/2019 3:31:25 AM
PEOPLE
INDUSTRY ICON
And there’s the fact that the range of content for viewers to choose from has exploded over the past decade, which means there’s a lot more variety within productions as well. “We’ve had to, in many ways, evolve how we think about the risk and how we’re designing insurance products to keep up because there are so many productions going on at once, the size of productions [varies] in terms of the budgets, and they’re very elaborate in terms of their sets, costuming or even stunts,” Bailey says. “The business has evolved and changed, and we have to keep up with that.” When it comes to live events, the AGCS team has just as many exposures to think about, from unpredictable weather to the
“You might have a client who’s creating a new area within their business, and they come to us asking, ‘Is this something you’d be interested in working with us to insure?’” Bailey says. “We’re supporting the evolution of these businesses so that they feel like we’re their partner in that. One of the things I think is tremendous is that we have relationships, not just with brokers, but also with the risk management teams within these large clients, and I value that because it’s a very collaborative approach and helps to ensure that what we design is something they need.” The needs of insureds are also driving AGCS to think about new tech offerings that will help deliver products and services faster.
“What we are involved in tends to be a source of pride for the organization because employees really relate to the business” safety of the audience and every individual taking part in the production. This has led to an intensified focus on safety. “We’ve actually taken a more active role around safety,” Bailey says, “not just because of the financial implications of what could happen if something goes wrong, but ultimately we want to help protect the well-being of everyone who’s involved. That carries across clients as well – they’re focused on safety since they want to protect their workers and they want to protect their patrons.”
Coming up next While AGCS’ scope in entertainment is fairly wide, there’s always opportunity for further growth. Motorsports, for example, has been a relatively new addition to the company’s global portfolio, and Bailey’s team plans to grow into other sports-related areas. More broadly, however, clients are helping AGCS identify new opportunities.
22
“If we’re thinking about how we’re responding to customers and their experience with us, we have to be able to do it quickly and efficiently and accurately to meet their demands,” Bailey says. Looking ahead, she hopes to further ingrain the AGCS entertainment brand as a leader in major markets around the world. “We want to show that we can do this business and we can do it better than anyone else,” Bailey says. “What we are involved in tends to be a source of pride for the organization because employees really relate to the business. They’re fans of the movies we insure or of a motorsports team, or they went to a festival that we insured or they saw one of our artists on tour. That brand awareness and involvement is really special, and all of our priorities ultimately are [centered around] how can we achieve that and how we can do it in a way so that we are contributing positively to the overall organization.”
AGCS BY THE NUMBERS
2006
Year Allianz Global Corporate & Specialty was launched by the Allianz Group
34
Number of countries where AGCS operates
200
Number of countries within the combined Allianz and partner network
4,400+
Number of people AGCS employs across the world
€8.2 billion
Gross premium generated by AGCS globally in 2018
www.insurancebusiness.ca
20-23_Industry Icon-SUBBED.indd 22
13/11/2019 3:31:26 AM
YOUR SPECIALTY MGA PAL thanks our valued Brokers!
HOSPITALITY PROGRAMS Host Liquor & Special Event Liability Weddinguard Server Liability Performer Liability Event Planners Caterer Liability Exhibitor/Vendor & Kiosk Liability
CONTINGENCY PROGRAMS Event Cancellation/Non-appearance Prize Indemnity - Hole in One
UNIQUE PROPERTY COVERAGES
30
CELEBRATING
YEARS!!
NEW PAL’s Collectables Program Contents in Storage ATM, VLT & Vending Machines Miscellaneous Property Automatic Rates and Instant Policy Issuance available for most PAL products online!
www.palcanada.com 20-23_Industry Icon-SUBBED.indd 23
www.insurancebusiness.ca
23
13/11/2019 3:31:30 AM
SPECIAL REPORT
TOP INSURANCE WORKPLACES
2019
PRESENTED BY
C
A
N
A
D
A
TOP INSURANCE WORKPLACES
For the first time ever, IBC gathered responses from thousands of insurance professionals across the nation to discover the industry’s best places to work THERE ARE countless factors that separate a good workplace from a great one. In today’s world of once unheard-of perks (on-site massage therapists and napping pods, anyone?), it’s becoming more and more common to see companies in all sectors offering something beyond competitive salaries and expected benefits to stand out from the competition and retain top talent. To find out which companies in the insurance industry are considered exceptional by their employees, Insurance Business Canada asked thousands of insurance professionals to rank their employers’ performance in regard to compensation and benefits, diversity, employee development, culture and those illustrious ‘extras’ – and share which of their employers’ initiatives have been most effective and attractive. After sifting through their feedback and crunching the numbers, IBC narrowed the list down to 26 companies that achieved the distinction of Top Insurance Workplace for 2019. The following pages outline what the industry’s best-rated employers are doing differently and reveal the inaugural class of IBC Top Insurance Workplaces.
24
METHODOLOGY To be considered a Top Insurance Workplace, organizations were invited to fill out an employer form to provide details on their various offerings and practices. Employees from nominated companies were then asked to fill out an anonymous form evaluating their workplace on a number of metrics, including benefits, compensation, culture, employee development and diversity. To be considered, each company had to reach a minimum number of employee responses based on overall size. Organizations that achieved at least an 80% average satisfaction rating from employees were named a Top Insurance Workplace.
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 24
13/11/2019 3:30:04 AM
COMPENSATION, BENEFITS AND INCENTIVES While base salary is always a key factor in the decision to accept a job, more often than not, it’s the benefits that make the job desirable. In addition to standard benefits like life insurance, retirement plans, and long-term care and disability plans, the majority of Top Insurance Workplaces also offer 15 or more paid vacation days per year (some even go so far as providing unlimited time off), wellness programs and several other less tangible but just as impactful benefits. Supplementing those perks are monetary incentives. Many Top Insurance Workplaces have developed creative bonus programs to keep employees motivated and recruit top talent. From performance-based bonuses and service recognition gifts to short- and long-term pensionable bonuses, employees at Top Insurance Workplaces are often rewarded for their loyalty, service and hard work. Profit sharing, new-business bonuses, President’s Challenge bonuses and all-inclusive international trips for employees are a few of the other ways Top Insurance Workplaces reward their team members. Combined with a competitive salary, these incentives are among the top reasons employees love where they work.
When do employees become eligible for benefits? 35%
Does your organization offer an employee equity program?
Yes
IMMEDIATELY
No
Fewer than 99 employees 30 DAYS AFTER HIRE
60 DAYS AFTER HIRE
100 to 499 employees 57%
42%
500+ employees 4%
Yes (unpaid)
Fewer than 99 employees 0%
61%
39%
Fewer than 99 employees
78%
22%
100 to 499 employees 0%
100 to 499 employees
71%
29%
500+ employees
100%
14%
86%
500+ employees
0%
0%
100%
0%
WHAT EMPLOYEES HAD TO SAY
“The company has a competitive benefits package and recently added counsellors in addition to psychologists under its program, which was a huge bonus for a number of our staff.” “Having benchmarked against other firms, our healthcare benefits meet or exceed the industry. We also have third-party organizations come into our offices to conduct confidential health assessments as part of our wellness program.”
43%
90 DAYS AFTER HIRE
Does your organization offer an employee retirement plan?
Yes (paid) No
33%
15%
67%
4%
Does your organization offer sabbaticals?
100%
OTHER
0%
“The unlimited time off policy allows for work flexibility and independence.”
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 25
25
13/11/2019 3:30:05 AM
SPECIAL REPORT
TOP INSURANCE WORKPLACES How many paid days off do employees receive annually? 4%
11%
6 to 10
11 to 15
15+
Unlimited
77%
8%
WHAT TOP WORKPLACES ARE DOING DIFFERENTLY “The company truly invests in its people and supports employees to have a healthy work-life balance. The fast-paced environment makes it so employees to come to work every day to face new challenges that make their job more interesting and challenging.”
DIVERSITY
More than just a buzzword, diversity is a key issue being addressed by Top Insurance Workplaces. Companies highlighted leadership development courses for minority staff and pointed to in-house groups centred around, for example, women or LGBTQ+ employees. Reverse mentoring, actively recruiting older workers and accommodations for physical challenges also played roles in making the workplace welcoming and supportive. The gender and minority gap in executive-level positions still leaves room for plenty of improvement – only 44% of women and just over 10% of minorities at Top Insurance Workplaces hold C-level jobs. But in the general workforce, the numbers are more encouraging: Of all the employees at Top Insurance Workplaces, 63% are female, and 18.5% of the employees at the 20 workplaces that track such data identified as minorities. The age range of employees is also something Top Insurance Workplaces are paying close attention to. Many companies value the wisdom and experience of older team members and tap into it via mentorship programs and workshops on intergenerational communication. Other employers offer reduced workweeks for those transitioning into retirement or accommodations for employees caring for aging family members. On the other end of the spectrum, many employers have programs designed to give younger employees the training and skills necessary for a rewarding and successful career in insurance.
“They provide excellent PTO at the beginning of employment (26 days). Providing the employees with the autonomy and letting them decide how to use PTO is greatly appreciated.”
What percentage of employees are male versus female?
What’s the gender breakdown at the executive level?
37% 63% What percentage of employees identify as a racial or ethnic minority, LGBTQ, or a person with disability? 20%
11%
Fewer than 99 employees 100 to 499 employees
56% 44%
What’s the proportion of minorities at the executive level?
Fewer than 99 employees 12% 100 to 499 employees 18%
WHAT TOP WORKPLACES ARE DOING DIFFERENTLY “We are a diverse workplace with 50% female representation and 60% of women at mid-manager level. We have three employee resource groups: Women & Allies, Young Professionals and Out North (LGBTQ).”
26
“The culture is inclusive, welcoming and accepting. It’s a safe environment to collaborate, share ideas with management and execute on plans. We enjoy celebrating our successes.”
“We actively work with our local Employment Ontario offices to support hiring those not presently employed. We have actively participated in the Youth Job Connection program to offer hands-on experience in entry-level roles.”
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 26
13/11/2019 3:30:10 AM
2019
PRESENTED BY
C
What percentage of employees are millennials? Fewer than 99 employees 54%
100 to 499 employees 36%
A
N
A
D
A
WHAT EMPLOYEES HAD TO SAY
“My organization is doing a great job at promoting young professionals and assuring them that their voice is being heard at the table.”
500+ employees 38%
What’s the proportion of millennials at the executive level? Fewer than 99 employees 37%
100 to 499 employees 8%
500+ employees 5%
“I am proud of my company’s efforts to employ people of all backgrounds, creeds, cultures and life choices.” “We have employees from pretty much every ethnicity and all levels of physical ability. Management makes sure to accommodate physical challenges to the best of its ability and encourages diversity, inclusion and respect.”
The World Federation of Insurance Intermediaries
Thanks to Lloyd’s Canada, we’re connected to the world.
On behalf of the 38,000 Canadian insurance brokers that IBAC represents, thank you to Lloyd’s Canada for supporting our membership and participation in the World Federation of Insurance Intermediaries (WFii). Because being part of something global, matters.
www.insurancebusiness.ca
CLIENT:
IBAC
JOB #: 24-34_Top Insurance Workplaces 2019-SUBBED.indd 27 19_IB_1131_WFiiLloyds_2019SponsorshipAd_HP_InsuranceBusinessCanada
27
TRIM:
7.25"w X 5"h
COLOURS:
C M Y K
LIVE:
7”w X 4.75”h
PUBLICATION:
13/11/2019 3:30:15 AM Canadian Underwriter
SPECIAL REPORT
TOP INSURANCE WORKPLACES
EMPLOYEE DEVELOPMENT An open-arms approach to supporting employees’ growth and development was a common thread throughout this year’s Top Insurance Workplaces. “If the education will benefit them in their role with us, we are open to paying for this and promoting this,” one employer said – and several even pay for education that isn’t directly related to insurance, if it will benefit their employees. The majority of Top Insurance Workplaces strive to implement development programs that go beyond what their competitors are doing. One brings in entrepreneurs and experts for bi-monthly TED Talk-style experiences. Another recently hired a team trainer “with the intent to further invest in our staff and have a greater focus on our culture and our overall work environment.” A key area of focus for all 26 Top Insurance Workplaces is a strong mentorship program. Approaches range from biweekly 90-minute meetings to biannual manager training sessions designed to help them develop skills in management, supervision, coaching and mentorship. The Top Insurance Workplaces also offer more traditional development incentives, including tuition reimbursement, bonuses for completing certifications, technology training sessions, and strong internship and co-op programs – all triedand-true ways of ensuring employees’ needs are met and the company continues to thrive.
WHAT EMPLOYEES HAD TO SAY
“The company spends a lot of time on young professionals in order to help us with career development. I have a few mentors throughout the organization and feel very supported.”
WHAT TOP WORKPLACES ARE DOING DIFFERENTLY “Education is highly encouraged for each team member, whether it is working toward their CAIB or CIP designations or other relevant certification programs, courses, webinars or conferences. We also encourage in-house training for our team members to share or increase their knowledge.” “As part of our annual performance process, colleagues create a development plan. We have a development library of ideas organized by competency. We also provide lunch-and-learn sessions and encourage colleagues to do two cross-functional development activities each year to learn about other departments and build relationships.” “Employee educational reimbursements are available for staff looking to return to school for certificates, diplomas or degrees based on the requirements of their job. Professional membership fees are further covered. We have identified internal subject-matter experts to support both formal and informal training opportunities for staff on the job.”
Does your organization offer education programs and opportunities outside of what’s required industry-wide?
How often does your organization conduct employee performance reviews? Never
Fewer than 99 employees
Once a year
89%
0%
11%
19%
Twice a year
100-499 employees
“The company reimburses your school tuition. They give you great opportunities to advance your career and support you, in addition to having great work-life balance.” “The company has generously funded 100% of the education toward my designation degree and is very open to my pursuing any other positionspecific professional development programs as they come up.”
100%
19%
0%
Quarterly 46%
500+ employees
100%
How often does your organization conduct company-wide employee meetings? Weekly Monthly Quarterly
Other
0%
16%
11.5%
4%
11.5%
8% 19%
Biannually Annually Other
46% 28
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 28
13/11/2019 3:30:19 AM
2019
PRESENTED BY
C
A
N
A
D
A
2019
TOP INSURANCE WORKPLACE PRESENTED BY
C
A
N
A
D
A
ROZON INSURANCE BROKERS HEADQUARTERS: LANCASTER, ON YEAR FOUNDED: 1968
Beginning in 1968 when the late Lloyd Rozon purchased MacCallum Insurance Brokers of Martintown, Rozon Insurance Brokers has grown over the years from a one-man operation based out of the kitchen of Rozon’s home to a business that employs more than 40 individuals. After five years of running Rozon Insurance Brokers out of their kitchen in Williamstown, Ontario, Lloyd and his wife, Wendy, moved the operation to the basement of a larger home on Johnson Road, just north of Williamstown. The business continued to expand, and today it is run by Lloyd and Wendy’s son, Todd, who credits his work ethic and commitment to the business to his
parents and the years he spent watching them work as he grew up. “My goal is to provide the same high standards of service and professional insurance expertise as they did,” he says. Rozon Insurance Brokers has clients all over Ontario, but its main customer base is in the eastern part of the province. In addition to the Lancaster office, Rozon also has a location in Cornwall. Whether a client needs home, auto, business, farm or cottage insurance, the experienced and bilingual team members at Rozon Insurance Brokers are dedicated to finding the best market for their insurance needs. The offices are equipped with stateof-the-art technology, and the staff keeps current with the insurance market through continual professional development programs – all of which supports the firm’s commitment to providing high standards of service. In addition to its exemplary customer
service, Rozon Insurance Brokers is a proud contributor to its local communities. The many organizations the company has sponsored and donated to over the years include Cornwall Community Hospital, Glengarry Memorial Hospital, Cornwall Hospice, Maxville Highland Games, Williamstown Fair, United Way, Beyond 21 and the Children’s Treatment Centre, along with various cancer fundraising events, local sports sponsorships and high school bursaries. Many employees have been with Rozon for several years and have glowing things to say about the company. “Work is a place I enjoy going to in the morning – I am able to lose myself in my work,” one employee says. “It is satisfying and challenging, and I feel valued for what I do in the organization. I am on the downside of my career, and I know that when it comes time to retire, it will be with reluctance.”
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 29
29
13/11/2019 3:30:32 AM
SPECIAL REPORT
TOP INSURANCE WORKPLACES
CULTURE Fostering teamwork and growth. Creating and engaging in open dialogue. Inviting team members to challenge organizational initiatives. Providing timely and constructive feedback. These are all measures taken by Top Insurance Workplaces and highlighted by employees as reasons why their employer’s culture bests that of other companies. Company culture is largely an intangible attribute, but when it’s done well, it’s noticed – and appreciated, as demonstrated by the average 91% retention rate at the 22 Top Insurance Workplaces that track this data. Dozens of employees identified such elements as creating a “warm and welcoming environment,” being “safe and inclusive,” maintaining a healthy work-life balance and encouraging accountability as important when it comes to fostering a desirable workplace culture. Team-building events and social outings, potluck lunches and birthday celebrations, and generous flexibility in office hours and working from home also factor into the equation. This year’s Top Insurance Workplaces also put a high priority on charitable giving and supporting their local communities. Several organizations offer their employees paid days off to volunteer at a charity of their choice, and almost all of them sponsor some sort of
WHAT TOP WORKPLACES ARE DOING DIFFERENTLY “We have wireless headsets for all of our employees so they can move around while they are servicing our clients on the phone. We have recently renovated our employee lounge and game room for our employees to take time to relax or de-stress. We also implement different initiatives throughout the year with a focus on wellness, including yoga nights, health awareness months and bringing in a company to show quick ways to relax and stretch at workstations throughout the day.” “We offer a wellness program that focuses on three pillars of health: physical, mental and financial. This year, in partnership with Sun Life, we’re offering free, ongoing monthly webinars geared toward helping employees reach their financial goals and achieve financial wellness. Our employees are eligible for a corporate discount on fitness memberships and are encouraged to stay active by starting a recreational sports team with colleagues; we cover the registration costs.” “If it’s important to an employee, it’s important to us. We recognize that employees have personal lives and completely support staff in taking time away from the office for family activities and commitments (i.e. attendance at a child’s event, assisting elders with care, etc.). Our culture is one of trust and accountability, and this is reflected through our commitment to work-life balance.”
30
charitable outing or event and/or scholarship for college students. To further ensure their employees’ overall health, many Top Insurance Workplaces provide on-site gyms, vouchers for local fitness clubs, counsellors, yoga classes, monthly massages, health screenings and other similar programs. “We are constantly reviewing our employee offering to ensure we are best in class,” one employer said. “We look to innovative programs that allow our staff to thrive and prosper.” This mindset of continuously listening and responding to employees’ needs is a hallmark of all of this year’s Top Insurance Workplaces.
What’s your employee retention rate?
Fewer than 99 employees
90% 100 to 499 employees
92% 500+ employees
90% Does your organization offer wellness programs or incentives?
Yes
No
Fewer than 99 employees
83%
17%
100 to 499 employees
86%
14%
500+ employees
100%
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 30
13/11/2019 3:30:31 AM
2019
2019
PRESENTED BY
PRESENTED BY
C
A
N
A
D
A
C
A
N
A
D
A
2019
TOP INSURANCE WORKPLACE PRESENTED BY
C
A
N
A
D
A
RED RIVER MUTUAL INSURANCE HEADQUARTERS: ALTONA, MB YEAR FOUNDED: 1875
Red River Mutual Insurance is on a mission to secure everyone’s right to feel safe and protected and know that someone is looking out for them – and the company has been dutifully working to satisfy this goal since it was founded 144 years ago. With nearly 65,000 policyholders with businesses, farms and homes from Thunder Bay to the Rockies, Red River Mutual is committed to providing competitive insurance products that meet the changing needs of Canadians. “We know that it’s the people we protect that matter most,” the company says. “That’s why we’ve strived to be a positive force in the lives of our customers and their communities since 1875.” Red River Mutual has more than 120 employees, all of whom receive a full array of benefits, including flexible work options, up to six weeks of vacation, and a robust performance and profit-sharing incentive. At more than 100 years old, Red River Mutual stays up to date with industry trends and is currently transitioning to a completely paperless work model to do its part to help the environment. Employees also appreciate the professional development programs provided to them. “I’m given the opportunity to expand my knowledge in the areas I’m looking to grow my role,” one employee says. “It’s a rare thing to feel this supported in my professional development as a younger employee.”
Does your organization offer any flexible work options?
100%
Fewer than 99 employees
100%
100-499 employees
100%
500+ employees
Yes
No
www.insurancebusiness.ca
31
www.insurancebusiness.ca
31
SPECIAL REPORT
TOP INSURANCE WORKPLACES WHAT EMPLOYEES HAD TO SAY
“My organization is succeeding in creating a warm and welcoming environment of self-motivated and independent employees. Feedback is frequent and helpful, and accountability is encouraged in the workplace through daily task meetings and biweekly review meetings.” “The company literally walks the talk. They care about us – enough to compensate us fairly and support us in work-life balance at every stage of life. The culture is healthy, supportive, collaborative and engaging. We are led by a powerhouse CEO who leads by example and supports and celebrates our accomplishments.”
“Nobody leaves here because it’s such an amazing culture. We are always growing and innovating. You are as involved as you want to be.” “My organization has done a great job with employee culture. We have flexibility with start/end times, working from home and flex days off, and our new dress code means we can wear jeans every day. Our office is also great at continuing to engage staff. When an employee expresses they want to take on more, we ensure this is done.” “The flexibility at work is amazing – working from home, modified hours, flexible days off.”
2019
TOP INSURANCE WORKPLACE PRESENTED BY
C
A
N
A
D
A
AIG CANADA HEADQUARTERS: TORONTO, ON YEAR FOUNDED: 1966
For more than 50 years, AIG Canada has been an industry leader, insuring some of the largest and most iconic projects
and organizations in Canada. From its launch in 1966, AIG has made strides to stay relevant and forward-thinking, and has been committed to Canadian business and culture every step of the way. Today, the company has 385 employees, the majority of whom identify as female, including on the executive level. AIG is dedicated to
“As a young professional, there are so many opportunities to meet with executives, participate in programs and further develop education and knowledge. AIG truly invests in its people ...”
32
the needs of all of its employees, from recent college graduates to those nearing the end of their careers, and offers competitive benefits to attract and retain top talent, including more than 15 days of paid vacation, disability benefits and life insurance, discounted gym memberships, long-service awards and long-term incentive plans, and much more. “AIG Canada is an amazing place to work,” one employee says. “Especially as a young professional, there are so many opportunities to meet with executives, participate in programs and further develop education and knowledge. AIG truly invests in its people and supports employees to have a healthy work-life balance.”
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 32
13/11/2019 3:30:43 AM
TOP INSURANCE WORKPLACES 2019
2019
The following companies achieved an average satisfaction rating of 80% or greater from their employees
PRESENTED BY
C
A
N
A
D
A
500+ EMPLOYEES NORTHBRIDGE FINANCIAL CORPORATION Headquarters: Toronto, ON Year founded: 2003
86.2%
Score:
100-499 EMPLOYEES APOLLO INSURANCE SOLUTIONS Headquarters: Vancouver, BC Year founded: 2018
Score:
92.8%
THE COMMONWELL MUTUAL INSURANCE GROUP Headquarters: Lindsay, ON Year founded: 2014 (mutual originated in the 1800s)
TRISURA GUARANTEE INSURANCE COMPANY Headquarters: Toronto, ON Year founded: 2006
Score:
86%
Headquarters: Altona, MB Year founded: 1875
Score:
83.9%
ARCHWAY INSURANCE Score:
91.3%
AXIS INSURANCE GROUP Headquarters: Vancouver, BC Year founded: 1928; merged brokerages in 2016
Headquarters: Mississauga, ON Year founded: 1955
RED RIVER MUTUAL INSURANCE
92.1%
Score:
UNICA INSURANCE
Headquarters: Amherst, NS Year founded: 1985
Score:
83.1%
AIG CANADA Score:
90.8%
Headquarters: Toronto, ON Year founded: 1966
Score:
81%
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 33
33
13/11/2019 3:30:47 AM
SPECIAL REPORT
TOP INSURANCE WORKPLACES 2019
FEWER THAN 99 EMPLOYEES LEIBEL INSURANCE GROUP Headquarters: Edmonton, AB Year founded: 1981
Score:
94.6%
BMS CANADA RISK SERVICES Headquarters: Ottawa, ON Year founded: 2013
92.8%
Score:
LATITUDE FINANCIAL SERVICES Headquarters: Kelowna, BC Year founded: 2013
Score:
91.7%
TRILLIUM MUTUAL INSURANCE COMPANY Headquarters: Listowel, ON Year founded: 2004, when Formosa Mutual Score: (founded 1880) and Elma Mutual (founded 1884) amalgamated
91.7%
Score:
90.7%
OVC ASSURANCE Headquarters: Sainte-Julie, QC Year founded: 2015
Score:
89.5%
Score:
89.2%
MY INSURANCE BROKER CORP. Headquarters: Richmond Hill, ON Year founded: 2008
Score:
87.7%
34
86.2%
Headquarters: Pickering, ON Year founded: 1981
Score:
85%
PEACE COUNTRY INSURANCE BROKERS Headquarters: Grande Prairie, AB Year founded: 1978
Score:
85%
DULIBAN INSURANCE BROKERS Score:
83.2%
Score:
82.7%
MIG INSURANCE
ZEHR INSURANCE BROKERS Headquarters: New Hamburg, ON Year founded: 1954
Score:
82.4%
SPECIAL RISK INSURANCE MANAGERS Headquarters: Langley, BC Year founded: 1994
Score:
81.6%
ROZON INSURANCE BROKERS
INSURANCE INSIGHT Headquarters: Oakville, ON Year founded: 2009
Score:
THE INSURANCE MARKET
Headquarters: Portage la Prairie, MB Year founded: 1995
GILLONS INSURANCE BROKERS Headquarters: Fort Frances, ON Year founded: 1924
Headquarters: Kemptville, ON Year founded: 1892
Headquarters: Pelham, ON Year founded: 1976
ZENSURANCE Headquarters: Toronto, ON Year founded: 2016
GRENVILLE MUTUAL INSURANCE COMPANY
Score:
87.4%
Headquarters: Lancaster, ON Year founded: 1968
Score:
80.1%
www.insurancebusiness.ca
24-34_Top Insurance Workplaces 2019-SUBBED.indd 34
13/11/2019 3:30:52 AM
ADVERTORIAL
A new partnership born with brokers in mind Life just became a little easier for insurance professionals INNOVATION, SPEED and efficiency – those are the three key elements insurance brokers will benefit from after Commonwell Mutual Insurance Group completed what it described as a “fundamental shift” in its approach by forming a partnership with Guidewire. The deal sees Commonwell introduce the industry-leading technology platform to modernize its infrastructure and deliver an improved experience for members/policyholders and brokers alike. It’s a move that Jennifer Baziuk, vice-president of transformation and strategic delivery at the firm, describes as “strategic.” “We invested time not only in assessing the platform, but identifying and prioritizing the capabilities and drivers that we wanted to enable through the platform to achieve our strategic vision,” she tells Insurance Business Canada. “Guidewire stood out as the clear winner in this regard not only because of the platform, but their commitment to ongoing research and development in the P&C
industry in Canada and the US. We believe they will solve the things we know today and continue to be a partner as we look to solve for the future and the next generation of insurance.” The deal came after a massive undertaking that saw the insurer enter into a partnership with Deloitte Canada to leverage its InsurCloud accelerator as a key driver to reduce risk, costs and increase speed to market. It then seconded key resources from across its business operations – including underwriting, finance, claims, product development and data – to support development, testing and stabilization, and then finally instilled a strong governance model with executive sponsors from all functions of the organization. Change management was also a key focus. “In our program, we dedicated a single workstream focused on change readiness,” Baziuk explains. “The scope of this workstream included the development of the processes, tools and techniques needed to
manage the people side of change and achieve our intended business results.” Those results have massive benefits for brokers. Baziuk explains that they will be able to enjoy “real-time uploads using Commonwell Connect straight from their BMS. This allows for faster processing of policies via immediate binding and issuance from their BMS. Brokers will also have access to real-time BMS downloads and eDocs,” she says. “In addition, Commonwell’s real-time quoting provides brokers with an accurate, ready-to-bind quote, reducing price discrepancies common in the industry.” However, Commonwell is refusing to rest on its laurels with this latest batch of innovation, understanding that if you’re not going forward in the industry, you’re going backwards. With that in mind, it already has its eyes on the next stages of innovation. “With our enhanced Information Technology DevOps model and partnership with Deloitte InsurCloud, we plan to continuously evolve and enhance our platform in an effort to stay current and responsive to the fast-paced changing industry,” Baziuk says. “Our next big endeavour will focus on enhancing our data, analytics and insights capabilities, leveraging the foundational components deployed as part of our core system insurance platform: Guidewire InsuranceSuite, Datahub and InfoCentre. We are committed to making investments in technology, data and our people to provide exceptional member value in the communities we serve as the leading mutual insurance provider.” For brokers, it’s a case of jumping on the bandwagon now – because this exciting partnership is just the start of Commonwell’s journey of delivering state-of-the-art benefits that can keep them ahead of the pack.
www.insurancebusiness.ca
35_Commonwell-SUBBED.indd 35
35
13/11/2019 3:36:42 AM
INSURANCE BUSINESS CANADA AWARDS 2O19 FINALISTS
It was another year of stellar nominations for the Insurance Business Canada Awards, the industry standard for recognizing excellence in the insurance profession and celebrating those at the forefront of best practice and leadership. Now, another top-notch selection of finalists is waiting to see who wins in 21 prestigious categories. They represent the teams, leaders and rising stars who stood head and shoulders above the rest with their dedication and hard work over the past year. With competition fiercer than ever, simply making the list of finalists is a massive achievement. The winners will be revealed at the Insurance Business Canada Awards gala at the Liberty Grand in Toronto on November 28, where comedic TV personality Jessi Cruickshank will return as host, alongside great live music from Devah Quartet and Ascension Groove Band. Insurance Business Canada and publisher Key Media would like to thank all those who submitted nominations this year, as well as our sponsors, who have helped make the Insurance Business Canada Awards the leading independent awards event for the insurance profession.
For table bookings and event details, visit ibawards.ca or email us at events@keymedia.com Special thanks to our sponsors
RED CARPET SPONSOR
36
CHAMPAGNE SPONSOR
PHOTO BOOTH SPONSOR
CHARITY SPONSOR
PUBLICATION
ORGANIZER
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 36
13/11/2019 3:51:29 AM
THE TRAVELERS CANADA AWARD FOR
BROKERAGE OF THE YEAR (FEWER THAN 10 STAFF)
THE DSB CLAIMS AWARD FOR
BROKERAGE OF THE YEAR (10 STAFF OR MORE)
THE BURNS & WILCOX CANADA AWARD FOR
BIG BROKERAGE OF THE YEAR
yy Alteri Insurance Brokers
yy Armour Insurance Brokers
yy Archway Insurance
yy Apex Surety & Insurance
yy Avant Insurance Brokers
yy Billyard Insurance Group
yy Canopy Insurance Services
yy Bryson Insurance
yy BrokerLink
yy Cheep Insurance
yy Gillons Insurance
yy HUB Ontario
yy Diamond Insurance Group
yy Groupe Ostiguy Gendron
yy Navacord
yy Fuse Insurance
yy Hubbard Insurance Group
yy Rogers Insurance
yy KASE Insurance
yy Leibel Insurance Group
yy Surex Insurance-Burlington
yy Locke Insurance Brokers
yy Mitchell & Whale
yy Westland Insurance Group
yy MYCOR Insurance Solutions
yy Morison Insurance Brokers
yy Smith Agencies
yy Oracle RMS
yy Wells Insurance Services
yy Sharp Insurance yy The Storm Insurance Group yy Zehr Insurance Brokers
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 37
37
13/11/2019 3:51:34 AM
INSURANCE BUSINESS CANADA AWARDS 2O19 FINALISTS THE CANSURE AWARD FOR
INSURANCE BROKER OF THE YEAR
THE LOWESTRATES.CA AWARD FOR
CEO OF THE YEAR
WOMAN OF DISTINCTION
yy Calvin Lim
yy Cameron Copeland
yy Alice Keung
yy Hailey Taskey
yy Chad Leibel
yy Anna McCrindell
yy Jason Peterson
yy Colin Simpson
yy Jacinta Whyte
yy Jurenda Landry (Jacobs)
yy David A. Crozier
yy Jennifer Savage
yy Kevin Stedman
yy Jeff McCann
yy Jo-Anne MacDonald
yy Joe Dietrich
yy Jodie Kaufman Davis
yy John Ferraro
yy Laurel Cutting
yy Lynn Oldfield
yy Marlene Morrison Nicholls
yy Mark Woodall
yy Monica Woldring
yy Rowan Saunders
yy Silvy Wright
yy Tina Osen
yy Sukhdeep Kang
UW Insure Brokers
Lloyd Sadd Insurance Brokers Surex
KASE Insurance
Jones DesLauriers Insurance Management
yy Matthew Ablakan Millennial’s Choice Insurance
yy Rupinder Hayer Armour Insurance Brokers
yy Simar Sidhu Diamond Insurance Group
yy Terence Cairns
Bell Davidson Insurance Brokers, a Wilson M. Beck Company
Cansure
Leibel Insurance Group
Insurance Brokers Association of Ontario Markel
APOLLO Exhange
Trillium Mutual Insurance Company Oracle RMS
AIG Canada
Special Risk Insurance Managers Economical insurance
HUB International Canada
AWARD SPONSOR
38
THE STEAMATIC CANADA AWARD FOR
AWARD SPONSOR
Economical Insurance Travelers Canada
Ecclesiastical Insurance
Cambrian Insurance Brokers ARAG Services Corporation Burns & Wilcox Canada Johnson Insurance
Stewart Morrison Insurance InsureLine Brokers
Northbridge Financial Armour Insurance Brokers
AWARD SPONSOR
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 38
13/11/2019 3:51:47 AM
THE DKI CANADA AWARD FOR
P&C INSURER OF THE YEAR
THE ADVOCIS AWARD FOR
THE WINMAR AWARD FOR
LIFE & HEALTH INSURER OF THE YEAR
EXCELLENCE IN CLAIMS SERVICE
THE ARMOUR INSURANCE AWARD FOR
MGA OF THE YEAR
yy Allianz Global Corporate & Specialty
yy Canada Protection Plan
yy Crawford & Company (Canada)
yy ABEX Affiliated Brokers Exchange
yy Empire Life
yy CAA Insurance Company
yy DSB Claims
yy APRIL Canada
yy Industrial Alliance yy Manulife Canada
yy Louis Meier Insurance Brokers
yy Burns & Wilcox Canada
yy Sun Life
yy PLT Consultants
yy Cansure
yy The Great-West Life Assurance Company
yy TD Insurance
yy CHES Special Risk
yy CNA Canada yy Intact Insurance yy Liberty Mutual Canada
yy ENCON Group yy PAL Insurance Brokers Canada
yy Trisura Guarantee Insurance Company
yy Ridge Canada
yy Unica Insurance
yy Signature Risk Partners yy Special Risk Insurance Managers
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 39
39
13/11/2019 3:51:51 AM
INSURANCE BUSINESS CANADA AWARDS 2O19 FINALISTS THE IV3 SOLUTIONS AWARD FOR
EXCELLENCE IN RISK MANAGEMENT yy AUMA yy Dragados Canada yy Eddy Solutions yy The Governors of the University of Alberta – Office of Risk Management Insurance & Risk Assessment Team yy Travelers Canada
THE PAL INSURANCE BROKERS AWARD FOR
YOUNG GUN OF THE YEAR
THE EMPIRE LIFE AWARD FOR
LIFE & HEALTH ADVISOR OF THE YEAR
yy Adam Thomson
yy Chris Karram
yy Aun Japanwala
yy Giorgio Follegati
Toole Peet & Co.
Lyon & Butler Insurance Brokers
yy Cole Leitch
Avant Insurance Brokers
yy Katie Kernick
Morison Insurance Brokers
yy Luke Prominski
Billyard Insurance Group – Hamilton
yy Matt Cassidy
Excel Group: Beyond Insurance
yy Maxime Poulin
Groupe Ostiguy Gendron
THE FIRST INSURANCE FUNDING OF CANADA AWARD FOR
LIFETIME ACHIEVEMENT IN THE INSURANCE INDUSTRY
yy Tariq Ba’Aqeel
This is the highest honour at the Insurance Business Canada Awards. This award recognizes an individual who has made outstanding contributions to the industry throughout their career. This award will acknowledge an industry icon with an established history of distinguished service to the insurance profession and who has exhibited leadership and provided inspiration to others while putting the interests of the industry at the top of their priorities, as evidenced by their accomplishments.
yy Trevor Parry
There are no finalists for this category. The recipient will be revealed during the awards gala.
Safebridge Financial Group Benchmark Benefit Solutions
yy Joshua Krenus Alteri Insurance
yy Lyle MacDougall Bakerview Financial Solutions
yy Ryan Riffel
Knight Archer Insurance Experior Financial Group TRP Strategy Group/ Raymond James
yy Miranda Hirte
Pearson Dunn Insurance
yy Stanislav Kojokin KASE Insurance
yy Steve Kurtz
Sutherland Insurance
yy Tiffany Reider Reider Insurance
AWARD SPONSOR
40
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 40
13/11/2019 3:51:55 AM
THE CNA CANADA AWARD FOR
EXCELLENCE IN PHILANTHROPY & COMMUNITY SERVICE yy Duliban Insurance Brokers
THE VERSATURE AWARD FOR
DIGITAL INNOVATOR OF THE YEAR yy APOLLO Exchange yy benefitsConnect
yy Ecclesiastical Insurance
yy Canada Protection Plan
yy Economical insurance
yy GTI Broker Group
yy Millennial’s Choice Insurance
yy InsureToday yy LowestRates.ca
THE INSURANCE BUSINESS CANADA READERS’ CHOICE AWARD FOR
BEST ADVERTISING CAMPAIGN
THE INSURANCE BUSINESS CANADA READERS’ CHOICE AWARD FOR
BEST SERVICE PROVIDER
yy Allianz Global Assistance
yy Applied Systems
yy Allianz Global Corporate & Specialty
yy FIRST Insurance Funding of Canada
“YOLO” travel insurance
The Allianz Explorer Series
yy Aviva Canada
yy DSB Claims
yy Goose Digital yy iv3 Solutions
“Ovation”
yy LowestRates.ca
yy Morison Insurance Brokers
yy MIG Insurance Group
yy Cansure
yy MRD Training & Consulting
yy Oracle RMS
yy Surex Insurance – Burlington
yy Economical Insurance
yy ProNavigator
yy The Storm Insurance Group
yy Morison Insurance
yy Trisura Guarantee Insurance Company yy TuGo
yy UW Insure yy Workplace Safety & Insurance Board
“CansureTech”
“Insurance Can Be Better” “#LifeAtMorison”
yy TuGo
2019 brand campaign
yy Zensurance
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
AWARD SPONSOR
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 41
41
13/11/2019 3:52:00 AM
INSURANCE BUSINESS CANADA AWARDS 2O19 FINALISTS THE AWARD FOR
INSURANCE INDUSTRY EMPLOYER OF CHOICE
THE AWARD FOR THE AWARD FOR
UNDERWRITER OF THE YEAR
BUSINESS DEVELOPMENT MANAGER OF THE YEAR
yy CNA Canada
yy Faical Cheblaoui
yy Alan Spruin
yy FIRST Insurance Funding of Canada
yy Gabriel Morneau
yy Ayal Alalouf
yy Jason Court
yy Jill Fratpietro
yy Kelli Hunt
yy Lindsay Donelson
yy Mashood Ali
yy Louise Sanna
yy Nadine Dodeman
yy Paul Mittertreiner
yy Rick Feeney
yy Paul Stannard
yy Sean Sousa
yy Scott Moffatt
yy Nacora Insurance Brokers yy Oracle RMS yy Signature Risk Partners yy The Storm Insurance Group yy Trisura Guarantee Insurance Company yy Wawanesa Mutual Insurance Company yy Zehr Insurance Brokers
CNA Canada
CHES Special Risk Intact Insurance
Next Wave Insurance Canada Totten Insurance Group
Trisura Guarantee Insurance Company Special Risk Insurance Managers Aviva Canada
RSA Canada
Canada Protection Plan Canada Life
FirstOnSite Restoration Travelers Canada
Arch Insurance Group SGI Canada
The EDGE Benefits
yy Tyson Peel Burns & Wilcox Canada
42
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 42
13/11/2019 3:52:04 AM
The winners of the 2019 Insurance Business Canada Awards will be selected by our judging panel of independent experts:
Peter Braid CEO, Insurance Brokers Association of Canada
Greg Pollock President and CEO, Advocis
Vinita Jajware President, Toronto Insurance Women’s Association
Grant Wainikka CEO, Insurance Brokers Association of Manitoba
Brendan Wycks Co-executive director, Canadian Association of Financial Institutions in Insurance
Derek Lothian CEO, Insurance Brokers Association of Saskatchewan
Katie Walmsley President, Portfolio Management Association of Canada
Carla Blackmore Vice-president, Insurance Consulting Group
Celebrate excellence among 550 insurance professionals at the stellar Insurance Business Canada Awards gala on November 28 at the Liberty Grand in Toronto.
Reserve your table today at www.ibawards.ca or contact us at events@keymedia.com.
www.insurancebusiness.ca
36-43_IBCA Finalist emag-SUBBED.indd 43
43
13/11/2019 3:52:14 AM
SPECIAL PROMOTIONAL FEATURE
CORPORATE RISK
Corporate risk solutions Aviva Canada’s Phillip Best tells IBC how the insurer’s new Global Corporate and Specialty team can help businesses with increased risk exposure succeed in a competitive marketplace IN LIGHT of the growing number of large businesses in Canada, the appetite for corporate risk solutions is heating up. Since Aviva Canada formally launched its Global Corporate and Specialty [GCS] team in September, the interest in corporate risk solutions has already been substantial – Aviva has seen a 30% rise in demand versus last year. “I’ve seen a huge increase in this requirement,” says Phillip Best, VP of underwriting and corporate risks for the GCS team at Aviva. “Given the size and capacity of some of those clients, they need quite extensive coverage, so the demand is going up more and more.” Aviva’s GCS team offers custom insurance solutions and dedicated services to large Canadian corporate and commercial companies doing business in Canada and the US. These clients have a minimum premium of $1 million per account and range from manufacturing businesses to logistics and transportation companies. Underwriters on Aviva’s GCS team are dedicated to providing specialized service within property, casualty and commercial auto business lines. Each team has the in-depth knowledge and experience needed
44
www.insurancebusiness.ca
44-45_Aviva-SUBBED.indd 44
13/11/2019 3:37:58 AM
to provide innovative, account-led coverage solutions to meet the exact needs of each client. This includes offering extensive coverage and preparing creative deal structures that help manage operational costs for clients and contribute to reducing the overall cost of risk transfer, thus helping the client succeed in a competitive marketplace. Brokers are an essential part of the equation, and they must ensure that risk control is in place when dealing with clients with increased risk exposure. Aviva is committed to working with brokers to ensure they have the tools they need. “As much as we like to talk to clients, we need brokers to make our client relationships work,” Best says. Client relationship managers work alongside clients, brokers, technical underwriters, risk consultants and claims service managers to combine their collective knowledge and insights. Bringing together a holistic view of the account enables the team to deliver focused and carefully tailored insurance solutions for each client’s business by protecting their assets, balance sheet and people. “Our client relationship managers ensure that everything runs smoothly,” Best explains. “They coordinate all of us and make up the team of underwriters, risk consultants and claims representatives ahead of time so there can be no confusion on the part of the clients. Together, we look for solutions to underwrite the risk and put prevention measures in place. When a claim occurs, the client knows who to contact, and the client relationship manager holds all of that together for large corporate clients.” Aviva’s GCS team offers an extensive range of protection in a variety of spaces:
Property damage and business interruption products Aviva offers $250 million on an all-risks basis, including protection for flood and
earthquake. Aviva even has the ability to participate in primary, excess of loss or fullvalue policies.
Protection against third-party casualty claims exposure Aviva offers liability products to most trades and operations, together with an extensive range of coverages, including the capacity to provide clients with up to $50 million in limits, tailored deal structures and the ability to participate on primary, umbrella, excess of loss and worldwide territory coverage.
Commercial auto Liability coverage up to $10 million is available to meet business needs and existing obli-
and claims management services. “One of the biggest challenges in corporate risk is operating or dealing with entities that own operations in the US,” Best says. “If it’s not handled correctly or you don’t have the right partner in the US, it can cause compliance and coverage issues.” Making use of expertise from its US partner enables Aviva to support the needs of Canadian-domiciled clients with exposures south of the border. This gives clients the comfort of knowing that their policies are compliant with US state legislation while having the convenience of a master policy arranged in Canada that fills in any gaps in coverage. Brokers benefit from a streamlined process; they simply need to connect
“As much as we like to talk to clients, we need brokers to make our client relationships work” Phillip Best, Aviva Canada gations to clients. Aviva provides coverage to a wide range of Canadian companies through conventional and unconventional options, including captive arrangements and large deductible and reimbursement arrangements. Eligible vehicles include private passenger fleets, long-haul trucking, construction and service utility vehicles.
Cross-border services To meet demand from Canadian parent companies with US locations, Aviva’s GCS team has expanded into the underserved cross-border market, partnering with a leading US insurance carrier. By building US partnerships, Aviva is now in a position to facilitate cross-border capabilities in all 50 states, with services such as commercial and specialty insurance coverage, policy issuance,
to Aviva’s cross-border desk, which will facilitate coverage for the US portion of the account through a US insurance carrier. Best anticipates that demand for corporate risk business will continue to grow, so the GCS team is expanding in a carefully controlled way by monitoring demand and hiring new staff accordingly. “We haven’t fully expanded our appetite to all our brokers yet,” he says. “The fact that corporate risks are looking at million-dollar premiums per account helps to quantify the accounts ahead of time, so when we’re looking at the geographic reach of customers that are multi-provincial or have a national scope or US exposure, we can identify those customers and plan well ahead of time to make sure we have the right people in place to handle those risks.”
www.insurancebusiness.ca 45
44-45_Aviva-SUBBED.indd 45
13/11/2019 3:38:01 AM
YOUR
PARTNERSHIP.
OUR GRATITUDE. 46-47_IBAC ad.indd 46
13/11/2019 3:38:55 AM
2019 IBAC
Full Partners
Participants: Northbridge, Pafco and Lloyd’s Canada The 38,000 insurance brokers represented by the Insurance Brokers Association of Canada work to serve the best interests of millions of Canadians. Thank you to the insurance companies who partner with us to deliver security and peace of mind to so many.
46-47_IBAC ad.indd 47
13/11/2019 3:38:59 AM
PEOPLE
CAREER PATH
NEVER SAY NEVER
His willingness to never take ‘no’ for an answer has served Stanislav Kojokin well When he was 14, Kojokin’s parents immigrated to Canada from Israel, where they had lived since immigrating from his native Ukraine when Kojokin was 8. Witnessing the sacrifices his family made led him to appreciate the opportunities he had. “Seeing my parents’ accomplishments through the risks they took made me realize that nothing is impossible, and that allowed me to take on risks and challenges myself.”
2001
COMES TO CANADA
2008 FINDS INSURANCE While studying accounting at Ryerson University, Kojokin took a part-time job as a sales advisor at a call centre, where he discovered insurance and a passion for customer service. It was also at Ryerson that he met Arian Ebrahimi, who later became his business partner at Kase Insurance. “I fell in love with the insurance industry from day one.”
2010 LEARNS THE ROPES Kojokin’s trainee position at Lyon & Butler Insurance Group propelled his career considerably, thanks in part to a key mentor. “I was very lucky to have worked at Lyon & Butler. I met one of my first mentors there, who taught me everything about the commercial insurance business. It was the opportunity of a lifetime.”
2019 BUILDS A DREAM TEAM Kojokin realized early on that building an award-winning insurance brokerage is impossible without the right team. He began recruiting team members who have a passion for helping clients protect their businesses and says that mindset is why 2019 has been a significant year for growth and overall customer service improvements within the business. “Kase Insurance would never have been able to grow as fast if it wasn’t for our team.”
48
2004 BECOMES A LIFEGUARD As a teenager, Kojokin set his sights on becoming a lifeguard, but one small thing was missing – he didn’t know how to swim. But he persevered, despite failing the lifeguarding course the first five times.
“What I learned from this was that you only fail if you quit. When I set myself a task, I need to complete it. Failure only happens when you give up” 2010 OPENS ANOTHER DOOR When Kojokin was rejected from an underwriting job, it moved him toward the field that ultimately led to his success in insurance. “In applied for an underwriter position and, after four interviews, found out that I didn’t get the role. I was devastated, but it allowed me to take an opportunity as an insurance broker that I would have missed out on. That job turned out to be a key moment in my career.”
2016 STARTS KASE INSURANCE After several years of working as a broker, Kojokin realized his passion lay in helping new brokers win accounts and become specialists themselves. He also saw a need for a brokerage that catered solely to businesses, so together with Ebrahimi, he founded Kase Insurance. “The only thing I love more than selling insurance is to mentor other young brokers on how to build and manage their book of business.”
www.insurancebusiness.ca
48-49_Career Path-SUBBED.indd 48
13/11/2019 3:40:32 AM
Insurr
PEOPLE
CAREER PATH
CYBER COVERAGE ON THE CUTTING EDGE Cyber security is tremendously important in today’s world. Your clients can rely on Wynward’s CyberVault™ for cutting-edge protection against cyber threats. Covering Canadian Businesses With industry-leading coverage, CyberVault™ is tailor-made to meet the cyber security needs of small to medium-sized Canadian businesses. Wynward’s partnership with a global expert ensures CyberVault™ will help your clients successfully navigate and recover from a cyber breach.
Your clients can rely on CyberVault™ to provide: • Third party information security and privacy liability • Regulatory defence and penalties • Website media and content liability • Payment Card Industry fines • Ransomware/Cyber extortion • First party data protection • First party business interruption
• Legal services • Computer expert services • Public relations and crisis management expenses • Notification, call centre and credit monitoring services • Foreign notifications
For more information on CyberVault™, or our full set of coverage offerings, please visit wynward.com.
wynward.com | 800-665-3351
facebook.com/wynward
www.insurancebusiness.ca 49
linkedin.com/company/wynward
PEOPLE
BROKER INSIGHT
The next frontier for cannabis Kevin Lea, president of Fuse Insurance, tells IBC how the cannabis insurance market has developed so far and what’s ahead for the segment
IBC: How have you seen the insurance market for cannabis risks evolve since recreational use was legalized? Kevin Lea: The market for cannabis insurance in Canada has been slowly evolving since legalization. We’ve seen the continued strength of the MGAs and other wholesalers generally dominating the sector, similar to the way it was prior to legalization. We’ve seen as well that with the growth in cannabis companies – in the grow operations and retailers, as well as auxiliary businesses supporting the industry – and there has been a significant increase in the total amount of premium written to cover the industry. We have seen a slight softening in attitudes towards the cannabis industry from the traditional large insurers within Canada. However, that has not translated to them actually offering any sort of insurance coverage within the sector. This, I believe, is most strongly being influenced by the general hard-market conditions for commercial property and commercial liability insurance that exist industry-wide. With that in mind, it’s tough for underwriting managers at large insurers to be dipping their toes into a new industry when they’re already pulling back on so many other ones.
IBC: What other challenges still exist in this marketplace?
50
KL: There are challenges that we’re seeing that are perhaps more cannabis-inherent, including the desire of some Canadian companies to work on cross-border operations, which can be a very tricky insurance challenge to navigate. We also see continued difficulty in placing more specialist coverages, especially D&O insurance and product recall insurance. This is definitely negatively influenced by recent well-publicized claims, such as the CannTrust regulatory scandal and their various D&O challenges, as well as other, more minor product recalls that have happened over the past couple years. With those types of instances having relatively significant claim impacts on insurance companies, that has put some hesitation into the market for writing more specialist lines. One of the continuing challenges that’s going to be a major issue in the cannabis sector over the next 12 to 18 months is the insurance and health issues surrounding vaping products. Vaping is one of the more popular ways
of consuming cannabis in markets in the US where it is already legalized. However, counterfeit and low-quality vaping products are causing significant injury to a number of people, as detailed heavily in headlines across North America. With additional scrutiny in place on vaping products, there’s going to be a significant burden on both cannabis companies and their insurers to make sure that any vaping-related products being put in the marketplace are thoroughly tested in order to prevent any harm to consumers.
IBC: How have brokers had to navigate cannabis regulations across developing regulatory frameworks in various provinces? KL: Certainly, the regulatory frameworks within each province have had a major impact on the market. On the retail front, the continued changes in some provinces, especially Ontario, [have led to] hesitation and confusion.
ABOUT FUSE INSURANCE Fuse Insurance was one of the first fully online commercial insurance brokerages in Canada and the first based in Western Canada. Fuse allows clients to quote, buy and manage their insurance programs completely online, leading to more transparency and allowing for instant policy changes and document generation. Fuse was recently selected as a finalist for Brokerage of the Year (Fewer Than 10 Staff) for the 2019 Insurance Business Canada Awards.
www.insurancebusiness.ca
50-51_Broker Insight-SUBBED.indd 50
13/11/2019 3:42:09 AM
FAST FACTS: THE CANNABIS INDUSTRY
The global cannabis market is worth an estimated US$100 billion
On October 17, 2019, Canada legalized the sale of so-called ‘cannabis derivatives,’ including edibles, beverages, vapes and topicals
“The global hard market in commercial lines has much more of an impact on the cannabis industry than the cannabis industry has on the insurance business” As the provinces have begun to settle down and find a way to streamline operations, things do seem to be getting better. We’ve seen significant success in Alberta on the retail side, and we’re seeing BC starting to come along nicely with private retail as well. It’s pretty clearly shown that the privatized retail model has delivered significant benefits to each province, with Alberta, for example, having the highest per-capita spending on legal cannabis products of any province in Canada. This shows that in all likelihood, the distribution network in Alberta – which has around 300 privatized stores – is better at reducing the black-market purchases of cannabis compared to more online-driven frameworks or areas with fewer stores, like most of the other provinces.
IBC: Now that the second round of legalization has happened, what are your predictions for how the insurance market will develop? KL: In the grand scheme of things, the global hard market in commercial lines has much more of an impact on the cannabis industry than the cannabis industry has on the insurance business. We need the insurance marketplace to begin to soften to encourage firms and underwriters to seek premium in new lines, which will hopefully push them into the cannabis industry. That being said, I do still expect insurers to be more willing to look at lower-risk cannabis operations, such as retail stores, and that will allow the wholesalers and MGAs to continue their focus on the growing
The products impacted by the latest round of legalization will reach consumers who might have been reluctant to use traditional cannabis consumption methods
The edibles market is estimated to be worth at least $1.6 billion a year in Canada; cannabisinfused beverages are worth another $529 million Source: Deloitte
and processing operations. I also expect that by virtue of having these products readily available in the legal marketplace, it will further drive consumers away from black-market and online sources of cannabis, which will increase overall revenues within the cannabis industry. This will therefore increase overall investment and insurance premiums in the business, which should further attract insurance companies into the sector.
www.insurancebusiness.ca
50-51_Broker Insight-SUBBED.indd 51
51
13/11/2019 3:42:18 AM
SPECIAL PROMOTIONAL FEATURE
BRANDING
ENCON rebrands as Victor ENCON has officially rebranded as Victor to build on its strength in the Canadian marketplace AFTER MUCH anticipation, Canadian insurance leader ENCON rebranded as Victor Canada on October 21, giving the 55-year-old organization a solid platform from which to build its new modern brand, global capabilities and resources. The announcement follows the larger global unification and rebrand of parent organization The Schinnerer Group to Victor Insurance Holdings in 2018. Victor Insurance Holdings is the largest MGU in the world, with operations in the US, Canada, Italy, the UK, the Netherlands, Australia and Germany. “Rebranding as Victor is a milestone for our company,” says David Cook, president of Victor Canada. “We’re celebrating both our accomplishments and our new beginnings, recognizing that this development marks an important step in our future growth as an MGA/MGU. Operating under a unified, global Victor brand enables us to build upon our considerable strength in the Canadian marketplace through strategic product and digital enhancements.” The name Victor was chosen to reflect the company’s evolution and growing worldwide footprint, while remaining in touch with the organization’s roots. Victor’s leaders felt the name is in keeping with today’s digital era while also being easy for brokers and clients to remember and pronounce. Although the company’s name might be different, Victor stresses that its culture and values will remain unchanged. It will continue to offer the unique products that brokers and
52
their clients have come to rely on; however, they can now also benefit from the multinational breadth of the global Victor operating companies. “Given our global reach, we are now in a position to create new products by sharing the best ideas from all geographical regions of the company,” Cook says. Under the new brand, Victor is poised to change the speciality insurance game and create the insurance enterprise of the future by leveraging four core principles:
As an MGA, Victor Canada is focused on working with independent brokers and advisors and a large pool of A-rated carriers to offer a unique range of products and programs across Canada in three core business areas:
Underwriting: Combining extensive underwriting experience with modern data and analytics capabilities.
Group benefits: Victor offers customized life and health insurance coverage solutions to suit any size organization in Canada.
Technology: Providing cloud-based solutions that enable agents and brokers to quote, bind and issue insurance policies in real time, all in one place.
Retiree benefits: Tailored plans address the needs of people over 50 to give them the coverage they need, including health, dental, life and travel insurance.
Distribution: Enabling a network of more than 25,000 insurance agents and brokers worldwide. In Canada alone, there are approximately 8,400 brokers for property and liability insurance, 1,400 advisors for group and retiree benefits, and 1,900 human resources professionals who share product information for retiree benefits.
Among its many products, Victor Canada recently launched V Squared (V2) and V Plus (V+), two advanced technology platforms designed to streamline the insurance-buying process for brokers and individual clients. “Our client focus, expertise and our unwavering commitment to service excellence will continue to define us,” Cook says. “We’re ready for our next chapter of success.” Victor Canada has locations in Ottawa, Mississauga and Edmonton, and its products are distributed through a network of licensed brokers and plan advisors across Canada. Visit victorinsurance.ca for more information.
Capital: Collaborating with leading insurance carriers and alternative capital providers to give organizations available capacity, consistent underwriting appetite, stable pricing, innovative products and customized risk transfer solutions.
Property and liability insurance: Thousands of professionals and organizations choose Victor for professional liability and construction insurance. Clients benefit from an extensive network of legal counsel and experts specializing in loss prevention and defence.
www.insurancebusiness.ca
52-53_Encon-SUBBED.indd 52
13/11/2019 6:25:56 AM
We changed our name. Now we’re changing the game. ENCON is now Victor. 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 continue to support you with the strength of one of the world’s largest managing general underwriters.
UNDERWRITING
TECHNOLOGY
DISTRIBUTION
CAPITAL
victorinsurance.ca
52-53_Encon-SUBBED.indd 53
13/11/2019 5:54:35 AM
ADVERTORIAL
Insurance: the land of job opportunity One firm can tell you what employers are looking for and how to reach them effectively INSURANCE PROFESSIONALS have arguably never had it better. In stark contrast to the doom-and-gloom headlines of the past that told us AI would steal jobs, today the insurance industry is awash with new possibilities as tech and innovation create opportunities. What’s more is that AI, IOT and sophisticated analytics have cut out the manual, repetitive nature of previous roles, allowing insurance professionals to thrive and focus on what they do best. “Focus on relationships and personal skills is at an all-time high,” Katie Ellwood of DGA Careers tells Insurance Business Canada. “People who are able to think outside the box and voice ideas are the ones that employers want.” Insurtech has brought about a change in thinking in the industry. It’s brought in product innovation, new approaches to the customer experience and a focus on being versatile. There is also now an increased emphasis on “personalities that are ambitious and vibrant,” says Ellwood. “Clients are asking for expertise and soft skills.” “They are really open-minded as far as experience and taking personal lines employees and training them in commercial lines,” adds Kim Ehman, also of DGA Careers. “But they want us to find people with emotional intelligence and a positive attitude.” New skills have come to the foreground, too. Forget a broker or an underwriter who can just ‘crunch the numbers’ and welcome in a new form of insurance professional who is modern, forward-thinking and even social media savvy. It’s something that’s being seen throughout the Canadian insurance jobs land-
54
scape – from coast to coast. “The one shift I’ve noticed is that insurance professionals have a hybrid role,” says Rose Skaricic of DGA Careers. “Roles and responsibilities have expanded, and employers often have an open mind about candidate background.” “In Toronto, there may be more resistance if you don’t have an ideal profile. But our long-term clients are often willing to look at transferable skills more than they once did,” adds Maurice Reichberg, also of DGA Careers. “The best performers with great track records, people skills and tremendous initiative are getting opportunities much earlier in their careers.” With this change in approach, the onus is increasingly on the candidate to make themselves stand out – and that starts with emphasizing the right skill set on your CV. “Keep it relevant to the position you apply for,” says Reichberg. “Customize it to the job and highlight the strengths they are looking for. Keep it focused, and if you’re working with an agency like DGA, we will advise you on edits.”
“What I always remind my candidates of is that they need to give the person receiving the resume a ‘power punch’ of who you are,” adds Jennifer Duff, also of DGA Careers. “It’s not just your experience, it’s about highlighting ‘you’ and what your achievements have been – anything that makes you stand out.” New opportunities will come your way if you keep a pulse on the insurance job market – and this can be much easier to do if you develop a relationship with an insurance recruitment specialist agency like DGA. As Martine Coutu from DGA Montreal adds: “La demande pour des employés qualifiés n’a jamais été aussi forte au Québec. Chez DGA, on court-circuite votre candidature directement au gestionnaire employeur. C’est un peu comme du match making!” “We can expose insurance professionals to opportunities they had no idea were out there,” adds Ellwood, “and deal with difficult topics like salary, as we can show you your real worth in the marketplace. The key is to never close the door to entertaining or considering new opportunities.”
www.insurancebusiness.ca
54_DGA-SUBBED.indd 54
13/11/2019 3:53:13 AM
PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email insurancebusiness@kmimedia.ca
The largest audience Blake has ever played for was at his u ncle’s me morial service, which he estimates at least 300 people attended
TICKLING THE IVORIES For broker Kenneth Blake, weekends are all about making beautiful music WHEN KENNETH BLAKE’S parents noticed that their 7-year-old son was mesmerized by the movements of the organist’s fingers at their church services and entranced by the sounds that emerged from the instrument, they took a considerable leap of faith by purchasing an organ and signing Blake up for lessons with a classically trained instructor. “I used to hate Thursdays because that was the day I had my lesson, but it became part of my structure,” says Blake, a Calgary-based insurance broker. “A few years later, the church organist left, and I found myself roped into playing the organ at church at age 10.” In the decades since, playing organ and piano for his church has become a cornerstone of Blake’s life, one that offers respite from his day-to-day responsibilities in insurance. “It’s good catharsis for work,” he says. “I deal with a lot of difficulties, so playing in church is like therapy for me.”
8
Number of songs Blake plays in a typical church service
5
Number of congregations Blake has played for
6
Instruments Blake plays (piano, organ, trumpet, guitar, bass and organ)
www.insurancebusiness.ca
55
FEATURES
EXPERT ADVICE
Thriving in a hard market THE WRITING is on the wall: We have entered another hard market in Canada. This means that we’re in the midst of falling investment returns, global large-loss events, increased frequency and severity of claims, and a tough regulatory environment. As a result, we’re seeing less competition among carriers, reduced capacity and lower limits, more stringent underwriting criteria, and, most important to the end customer, higher insurance premiums. Your clients likely have questions – and rightly so. “The hard market is industry-wide and affects insurers, brokers and policyholders,” says Sal Bagazzoli, president of Acumen Insurance Group and an RSA broker partner. “On the broker front, this is particularly true when explaining market conditions to our customers.” Having been a broker since 1975, Bagazzoli has seen his fair share of hard market cycles and has some advice on how brokers can help their customers during these tough times.
customers. As brokers, we have that agency.” RSA has committed to helping brokers through the hard market via constant communication with its broker network, particularly when it comes to illustrating the underlying factors and how brokers can prepare their customers for what’s to come. “Webinars hosted by RSA have been incredibly beneficial to both myself and my staff when it comes to understanding the hard market, what makes this one different from previous
ones and how we can explain it to our customers,” Bagazzoli says. “Brokers benefit when insurers take a vested interest in keeping us informed so that we can get ahead of those tough conversations.” RSA has also provided tip sheets for brokers and sheets they can share with their customers.
The broker as a trusted advisor “This is when your role as a trusted advisor really gets put to the test,” Bagazzoli says. “During hard-market cycles, brokers must invest the time necessary to become as familiar as possible with market conditions and be as informed as possible to really show their value. My main piece of advice to other brokers is that time, effort and energy spent is ultimately an investment in the customer.” To learn more about how RSA can help you and your customers navigate the hard market, visit rsabroker.ca/hardmarket.
Preparing your customers for the hard market It’s no surprise that customers are often taken aback by drastic premium increases that aren’t in line with inflation. “As our brokerage has seen many hard markets, we tend to see similar types of reactions every time,” Bagazzoli says. “That’s why we do our best to explain to customers exactly why premiums are going up, describe the market conditions and quell any concerns they may have.” Brokers should be spending more time on renewals and new business during hard-market cycles, he adds. “Since we’re aware of what’s coming down the pipe, we should be leveraging our roles as brokers to temper the market and find the most competitive rates for our
56
www.insurancebusiness.ca
56-IBC_Expert Advice-SUBBED.indd 56
13/11/2019 3:56:20 AM
14280
There’s a faster way to submit a claim. With RSA Claims Point,™ submitting claims online is quicker and easier than ever, with a streamlined process, clear questions and claim numbers assigned immediately.
Get your claim started right away. Check out RSA Claims Point™ today at rsabroker.ca/claimspoint
* Currently accepting claims for home, personal auto and individually rated commercial auto. © 2019 Royal & Sun Alliance Insurance Company of Canada. All rights reserved. RSA, RSA & Design, RSA Claims Point, and related words and logos are trademarks and the property of RSA Insurance Group plc, licensed for use by Royal & Sun Alliance Insurance Company of Canada. RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada.
14280_RSA-CORP-Ads_IB-Canada_FP_FA.indd 1 56-IBC_Expert Advice-SUBBED.indd 57
2019-09-10 1:42 PM 13/11/2019 3:56:25 AM
GLOBAL CORPORATE SPECIALTY
Aviva Global Corporate & Specialty Together, we make a world of difference At Aviva, we pride ourselves on the insurance and risk management solutions that we offer to help our clients protect what’s important to them. Aviva’s Global Corporate & Specialty division provides our brokers and large corporate and commercial clients with innovative and flexible solutions. Our specialists work to understand not just the detailed nature of the risk, but the true makeup of the client’s business – its values, people and vision for the future. Working together, we design tailor-made solutions that exceed expectations and make all the difference - demonstrating a client-centered approach at every interaction that reflects the needs of the business. Our industry-focused expertise, combined with an emphasis on close broker and client relationships is the result of a unique service proposition with prevention and innovation at its heart.
aviva.ca/gcs
This advertisement provides an overview of Aviva’s Global Corporate & Specialty (GCS) proposition. For exact terms, definitions, limitations and extensions, please refer to the policy. GCS policies are underwritten by Aviva Insurance Company of Canada. Risk Management and Claims services are provided by Aviva Canada Inc. and a network of external partners.
CS-19-7083_CL-GCS Brand Integration-Trade Advertising-IBC FP.indd 1 00_OFC Spine OBC-SUBBED.indd 3
2019-09-12 9:40 AM 13/11/2019 3:46:54 AM