IBAWR Bulletin January 2014 - Insurance Brokers Association of

January, 2014 Edition
BULLETIN
INSURANCE BROKERS ASSOCIATION OF WATERLOO REGION
(I.B.A.W.R.)
Established 1931
The Bulletin
Mark Your Calendar
January 9, 2014
IBAWR Meeting
February 6, 2014
IBAWR Meeting
March 13, 2014
IBAWR Meeting
April 3, 2014
IBAWR Meeting
May 1, 2014
IBAWR Meeting
Editor’s Report
Happy New Year to all! I hope that everyone had an prosperous 2013
and is looking forward to continued excellence in 2014.
As is customary when starting something new, New Year brings with it a
time for reflection over what’s come before. Looking back, 2013 had its
share of insurance-related topics, with (just to name a few):
Development of Usage Based Insurance solutions
Alberta flooding, furthering discussion on the relationship
between insurance solutions and natural disasters
and, of course, the Proposed Ontario auto premium reduction
With so many interesting and involving discussions around the future of
our industry, it’s exciting to look ahead at the possibilities of 2014.
Stay tuned!
Russ Philpott, BA(Hons), CAIB
Bulletin Editor
admin@ibawr.ca
Like us on Facebook!
www.facebook.com/IBAWR
- RP
IN THIS ISSUE…
The Bulletin .................................................................................................................................................................... 3
President’s Report ......................................................................................................................................................... 5
House & Program Report............................................................................................................................................... 6
Public Relations & Communications Report ................................................................................................................. 8
Industry News .............................................................................................................................................................. 10
Ontario Auto Reduction - Speaking Points ................................................................................................................. 12
Board of Directors ....................................................................................................................................................... 14
Join Us for January, 2014 Meeting: ............................................................................................................................. 15
Membership Report .................................................................................................................................................... 16
Education Report ......................................................................................................................................................... 18
Our Board is Growing! ................................................................................................................................................. 19
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President’s Report
In November I attended the Insurance Institute –
Conestoga Chapter Annual Speakers luncheon at
Waterloo Inn. One point stuck with me and was
again addressed in one of the recent insurance
industry publications: “Customers will still pay for
value but you need to be able to deliver it.”
Mary Riberdy, RIBO
President
Happy New Year!
I hope everyone enjoyed the holidays with family
and friends.
Thank you to everyone that came
out to our Christmas dinner. The
Mitten Tree was a huge success
once again - thanks to your
donations! Your generosity has
helped many in our community
that would have otherwise felt
winter’s cold grip.
What gives brokers a
competitive edge over the
direct writers? Personal
contact, advice, someone to
help during a claim.
I would also like to thank everyone that participated
in the 8th Annual Insurance Industry Food Drive. A
special thanks goes out to Randy Higgins of Paul
Davis Systems for his assistance in distributing the
boxes and posters and picking up the food. Thanks
also to Bob Foster of Winmar and Pat Pearl from
Cowan Insurance for your help in picking up the food
and delivering to the Food Bank of Waterloo Region.
The IBAWR participated in the OIAA Chili Challenge
again this year at Golf’s Steakhouse on Nov 28th.
Chefs Scott Heaman and Chad Murdoch cooked up a
wicked chili.
Looking forward, please mark your calenders for
Friday April 4, 2014. We are pleased to bring you
the 3rd Annual Local Insurance Associations
Charity Bonspiel . Details to follow.
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Sounds like an obvious statement but then I thought
a little more and asked myself, do we as brokers
deliver value to our customers? Of course we all like
to think we provide our customers with great service
and value each and every day, would your customers
agree? Have you asked your customers what they
value about you – their broker? What gives brokers
a competitive edge over the direct writers? Personal
contact, advice, someone to help during a claim.
Likely, all of the aforementioned
and more. I sincerely believe our
customers are better served by a
broker over an agent or direct
writer, our actions on behalf of our
customers can convey this value.
We work, live, shop, dine and play
in the communities our customers
call home. When the St. Jacob’s
market building was lost as a result of fire on labour
day, there was a sadness and sense of loss
experienced by many of us. We have been to the
market with family and friends. It truly is very much
a part of our lives. It is the sense of community that
connects us with our customers and carries far
beyond insurance.
Let us ensure we deliver the value our customers
have come to rely on.
Respectfully submitted,
Mary Riberdy, RIBO
House & Program Report
Kristin prefers to think of her role as a client liaison,
capable of leveraging the services provided by
FirstOnSite to make her clients’ lives a little easier.
Outside of work Kristin is a wife and mother of one, a
kickboxing instructor, shoe aficionado and reluctant
fitness enthusiast. She spends free time playing
Legos, building forts, reading, cooking and
participating in a weekly laundry marathon.
Scott Heaman, CAIB
Vice President, Director of House & Program
Thank you to everyone who came out to the
December meeting and brought hats and mittens for
our Mitten Tree. We had an excellent turnout. A
quick reminder that our meeting is on January 9th,
the second Thursday of the month.
Those who have met Kristin will agree that her
energy and enthusiasm are contagious. Her industry
experience and formal education in Sociology and
Human Resources lead her to the topic of Hoarding,
and her passion for this topic is evident in her
presentation. Participants will learn techniques for
effectively managing a loss where the home or
business owner is a hoarder as well as gain greater
insight into this condition.
In January our speaker is Kristin McCutcheon, a
National Account Manager at FirstOnSite. She will be
doing a presentation on hoarding and the unique
challenges and risk that it can pose.
Kristin began her career in Insurance Restoration in
2001 and, by chance, began working for Woodhouse
Contracting during a local catastrophe. After
finishing her schooling at the University of Waterloo,
Kristin chose to return to the excitement of
emergency restoration and progressed through the
ranks – currently working as the Business
Development Manager at FirstOnSite Restoration.
KRISTIN MCCUTCHEON
Respectfully submitted,
Scott Heaman, CAIB
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Public Relations &
Communications Report
Chad Murdoch, RIBO
Public Relations & Communications
Sorry for the delay… I got decked in the halls! (Oh wait that was already last month!) I suppose if you are reading
this than you have successfully survived another holiday season!
Now that all the food, presents and merrymaking is behind us and the New Year is upon us, I’ve decided it to be
worth looking at some of the things that we as Brokers will have to adjust to.
Starting in 2014, certain companies will begin to identify on the insured’s copy of their homeowners policy the
amount of premium associated with each peril. My initial reaction was to think that this is a good thing; people
should know exactly what they are paying for. People say they want more transparency from their insurance
company, and showing people exactly what they are paying for is a good way to be transparent.
However, after I thought it over some more I couldn’t help but think of the difficulties that might arise from this. If
I were to put myself in the mindset of a consumer, and I see a price beside a peril that I don’t think will ever
happen to me, I might be inclined to ask to have that particular coverage removed to save myself some money. I
see this transparency as being somewhat of a double edged sword, as we will have to explain that each peril is
built into the package and can’t be changed even with the individual premium breakdown. With many of the
consumers in the marketplace being very price driven in their quest for insurance, I believe this will be a scenario
where many a conversation will be had.
There will also inevitably be the questions asking how the insurance company decided the amount to charge for
each peril, or how it was decided that your home might not qualify for sewer back up coverage because of the
postal code (even when the house is at the top of the hill). So how are we as brokers going to handle this going
forward? I believe education will be the best strategy. As brokers we already know the importance of education (at
least eight hours every year), but we can’t forget the importance of educating our clients to help them understand
the product they are buying… and why they shouldn’t delete wind coverage just to save X amount of premium all
because they think “it will never happen to me!”
The bottom line is: insurance companies are the manufacturer of a product and we are the sales force selling said
product. We have to be prepared when the manufacturers decide to make changes…because you know what they
say: Change is Inevitable! (except from a vending machine of course!).
Respectfully submitted,
Chad Murdoch, RIBO
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Industry News
- Powered by Canadian Underwriter.ca
ONTARIO AUDITOR GENERAL ISSUES WARNING OVER UNFUNDED LIABILITY FOR
AUTO INSURANCE CLAIMS FUND
Ontario's motor vehicle accident claims fund (MVACF) has an unfunded liability, no action has been taken since 2011 to address
that liability and provincial officials estimate MVACF can only meet its financial obligations through the 2020-21 fiscal year,
suggests the fall report of the Ontario Auditor General, released this week.
"The Fund's actuarial report shows that the unfunded liability was about $99 million as of March 31, 2013, or about $10 million
less than at March 31, 2011," according to Auditor General Bonnie Lysyk's report, released Tuesday.
The MVACF, considered the “payer of last resort,” provides compensation or statutory accident benefits to injured persons who
either have no recourse to auto insurance or who are involved in accidents with uninsured or unidentified drivers. The fund
also, where legally permissible, recovers funds from the drivers or owners of money paid out on their behalf. It earns a fee of
$15 from every driver upon issuance or renewal of their licence.
In her 2013 fall report, the Auditor General noted that the consulting actuary for the Financial Services Commission of Ontario
(FSCO) "recently estimated" that MVACF "will have sufficient funds to meet its financial obligations through to the 2020/21
fiscal year."
In 2011, then-Auditor General Jim McCarter had recommended that FSCO "establish a strategy and timetable for eliminating
the Fund's growing unfunded liability over a reasonable time period and seek government approval to implement this plan."
The purpose of that recommendation, according to the 2011 report, was to ensure MVACF "is sustainable over the long term
and able to meet its future financial obligations."
The 2013 fall report included a follow-up section on some of the recommendations from the 2011 report - including a section
on auto insurance.
"Many of the recommendations in our 2011 Annual Report were either substantially or partially implemented, although
additional work remains to be done in several areas, where we will continue to monitor progress," according to this year's fall
report.
For example, FSCO advised the Office of the Auditor General that "no changes had been made to address the unfunded liability"
of MVACF since 2011.
"FSCO continues to formally monitor the status of the Fund, and ongoing Ontario automobile insurance reforms have had a
positive impact on the Fund's unfunded liability," the Auditor General noted. "The updated cash-flow analysis was completed in
fall 2013, following a recent legal decision that will affect the collectability of accounts receivable owed by bankrupt debtors."
That was an apparent reference to an April 12 ruling by the Ontario Superior Court of Justice, against the Minister of Finance, in
a case where FSCO had tried to collect money from - and threatened to suspend the licence of - an uninsured driver who had
gone through the federal bankruptcy process.
Sandra Clarke had been driving uninsured in 1989 when she got into an accident that injured her passenger, who got paid from
MVACF. Clarke had started making payments to MVACF but had also made a consumer proposal under the federal Bankruptcy
and Insolvency Act. She had listed MVACF has a creditor but MVACF had not filed a proof of claim.
"The federal BIA takes precedence over the provincial legislation," Mr. Justice Robert Goldstein wrote in his April 12 decision,
adding the Ontario Motor Vehicle Claims Act is in conflict with the federal bankruptcy law "and is inoperative to the extent of
the inconsistency." The federal Superintendent of Bankruptcy had intervener status in Clarke's case and argued there is a
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conflict between provincial law and the federal bankruptcy law, which stipulates that claims against people making consumer
proposals are released upon discharge.
In her fall 2013 report, the Auditor General noted MVACF "had $109 million less in assets as of March 31, 2011, than it needed
to satisfy the estimated lifetime costs of all claims currently in the system," and that this shortfall "was expected to triple" by
the 2021/22 fiscal year.
"FSCO noted that any changes to funding would require amendments to regulations and to the existing Motor Vehicle Accident
Claims Fund fee on issue or renewal of an Ontario driver's licence, which are the responsibilities of the Ministry of Finance and
the Ministry of Transportation."
The 2013 report also noted that in 2011, the Auditor General had recommended that FSCO "monitor ongoing compliance with
the interim Minor Injury Guideline, expedite the work to develop evidence-based treatment protocols for minor injuries, and
identify and address any lack of clarity in its definitions of injuries."
In 2010, the province had put a $3,500 cap on auto accident benefits payments for injuries falling under the MIG, which can
include, among other things, sprains, strains, whiplash associated disorders, contusions, abrasions and lacerations.
"In July 2012, FSCO retained the consulting services of medical and scientific experts who have been working to develop an
evidence-based treatment protocol for the most common injuries from motor-vehicle accidents," the Auditor General noted in
her 2013 fall report. "The treatment protocol, if approved by government, could be incorporated into a Superintendent's
Guideline and used by insurers and health-care providers when treating minor injuries resulting from automobile accidents. The
protocol will help to reduce disputes in the auto insurance system and ensure motor-vehicle-accident victims receive effective,
scientifically proven treatment."
DAILY NEWS Dec 12, 2013
INDEPENDENT BROKER RESOURCES INC. LAUNCHES NATIONAL INSURANCE JOB
BOARD
The Independent Broker Resources Inc. (IBRI), a wholly owned subsidiary of the Insurance Brokers Association of Ontario
(IBAO), has launched an online job board to help current job seekers begin or build on their existing careers.
Career Centre is a one-stop shop for job seekers and for insurance brokers and insurance-related companies to post job
opportunities across the country, notes a statement from IBAO.
Job seekers can browse and apply for career opportunities at no cost, those in the insurance industry can post job opportunities
at a low cost and IBAO members will receive a posting discount.
“A niche job board provides a solid career pipeline for today’s top insurance talent, matching those looking to hire with those
looking for the right opportunity to achieve their career goals,” IBRI CEO Colin Simpson says in the statement.
“Innovation in the insurance industry is headed in an exciting direction,” Simpson suggests. With the job board, “we are
providing our industry with the necessary tools to be successful in building the skill sets required to lead us in to the future.”
Career Centre can be accessed at: www.myinsurancejobs.ca
DAILY NEWS Dec 9, 2013
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Ontario Auto Reduction Speaking Points
Courtesy of IBAO
On August 23, 2013, you received an email from the IBAO regarding the Ontario Government's targeted
15% decrease on auto insurance. That email can be viewed here.
It is likely that your customers will have questions about this reduction and expect savings on their auto
policy. The IBAO has prepared some speaking notes to help you manage their expectations.
Q. When will I be getting my 15% reduction in my auto premium?
A. Despite what you’ve heard in the news, the promised rate reductions are not instant and are going
to take time. The government has set a target to reduce rates on average by 15% over two years
ending August 2015;
-
8% BY AUGUST 2014 AND;
ANOTHER 7% BY AUGUST 2015.
This means not everyone is guaranteed to see a 15% reduction as it will depend on a number of factors:
1. YOUR INSURER – COMPANIES THAT CAN DEMONSTRATE THEY CAN’T PROVIDE THE REDUCTION DON’T HAVE TO;
2. WHERE YOU LIVE – INSURERS PRICE BY TERRITORY CLAIM EXPERIENCE AND CAN JUSTIFY DIFFERENT RATES DEPENDING
ON WHERE YOU LIVE;
3. YOUR INDIVIDUAL CHARACTERISTICS – IT’S AN AVERAGE SO SOME MAY GET HIGHER REDUCTIONS WHILE OTHERS WILL
GET LOWER REDUCTIONS
-
THE RATE REDUCTIONS, PARTICULARLY IN THE SECOND YEAR WILL DEPEND ON HOW SUCCESSFUL THE
GOVERNMENT IS IN REDUCING THE COST OF FRAUD, MOSTLY IN HEALTH CLAIMS;
THE GOVERNMENT IS WORKING ON THE LICENSING OF HEALTH CARE CLINICS AND REGULATING THE TOWING
INDUSTRY BUT THIS WILL TAKE TIME;
AS A VOTER, YOU SHOULD ENCOURAGE YOUR POLITICIANS TO TRY AND FIX THE FRAUD PROBLEM AS QUICKLY AS
POSSIBLE, BECAUSE THE FASTER FRAUD CAN BE COMBATED, THE FASTER PREMIUMS CAN BE LOWERED - BUT IT
CAN’T BE DONE OVERNIGHT. IT WILL TAKE TIME.
If you require any additional information or support, please email Randy Carroll (rcarrol@ibao.on.ca) or
call 800.268.8845
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Board of Directors
Mary Riberdy
President
Lackner McLennan Insurance Ltd.
+1(519) 579-3330
mriberdy@lmicanada.com
president@ibawr.ca
Scott Heaman
Vice President, Director of House and Program
Advocate Insurance Group
+1(519) 650-5565
sheaman@advocateinsurancegroup.ca
Tam Good
Education
Donovan Insurance Brokers Inc.
+1(519) 886-3150
tgood@donovaninsurance.com
Danny Marceau
Secretary/Treasurer/YBC
OTIP/RAEO Insurance Brokers Inc.
+1(519) 888-9683
dmarceau@otip.com
Peter Musselman
Sergeant at Arms
Donovan Insurance Brokers Inc.
+1(519) 886-3150
pmusselman@donovaninsurance.com
Dianne Monteiro
Executive Secretary
Donovan Insurance Brokers
+1(519) 886-3150
ExecutiveSecretary@ibawr.ca
Pat Pearl
Member at Large
Cowan Insurance Group Ltd.
+1(519) 578-6030
pat.pearl@cowangroup.ca
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Melissa Snyder
Past President
Lackner McLennan Insurance Ltd.
+1(519) 579-3330
msnyder@lmicanada.com
Jessica Bevenborn
Membership & Membership
Development
KW Insurance Brokers
+1(519) 744-4190
jbevenborn@kwbroker.ca
Russ Philpott
Bulletin Editor
Staebler Insurance
+1(519) 743-5228
admin@ibawr.ca
Chad Murdoch
Public Relations & Communications
Advocate Insurance Group
+1(519) 650-5565
cmurdoch@advocateinsurancegroup.ca
Sharon Carlisle
Member at Large
Josslin Insurance Brokers Ltd.
+1(519) 893-7008
sharonc@josslin.com
IBAWR
72 Regina Street North
Waterloo, ON N2J 3A5
FIND US ON FACEBOOK!
www.facebook.com/IBAWR
Join Us for January, 2014 Meeting:
Date: January 9, 2014
Place: Golf’s Steak House
598 Lancaster Street
Kitchener, Ontario
Time: 5:30pm – Closed Members Meeting
6:00pm – Open Doors to Industry Friends
RSVP: ExecutiveSecretary@ibawr.ca
Bring a Donation for our Mitten Tree!
PLEASE NOTE:
All those planning to attend must reserve IN ADVANCE
Contact Dianne Monteiro for more information
IBAO Mission Statement
th
Please RSVP by 5:00 pm on Tuesday, January 7 , 2014.
"To be the advocate for the independent
Insurance Broker driving collaboration
between members, consumers and other
stakeholders resulting in innovative solutions
for the betterment of the industry. "
IBAO represents our members' interests to
government ministries and regulatory bodies,
as well as to insurance industry commissions
and associations. These bodies recognize us as
the authoritative voice of Ontario's
independent brokers.
IBAWR represents the interests of
independent brokers in the Waterloo Region.
15
Your Best Insurance
is an
Insurance Broker
www.myinsuranceshopper.com
Membership Report
At the December 2013 meeting, the following brokers were introduced:



KEITH ROUTLIFFE AND KRYSTINA LEIDIG FROM PIONEER INSURANCE BROKERS LTD.
DONNA GILBERT FROM STAEBLER INSURANCE LTD.
DEBBIE MACDONALD, MEGAN ROOD AND SUSAN CROTEAU FROM JOSSLIN INSURANCE BROKERS LTD.
If there are brokers in your office who have neither received their Bipper pin, nor been introduced, please let
either myself or Dianne Monteiro know.
We hope to see all our existing members and our new members at the next meeting.
Respectfully Submitted,
Jessica Bevenborn
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Education Report
IBAO School of Insurance – Upcoming Events
Upcoming Courses
BASIC BROKER ORIENTATION DAY – TORONTO
January 13, 2014 - 9:00 a.m. to 4:00 p.m.
BASIC BROKER LICENSING COURSE – TORONTO
January 20, 2014 to January 24, 2014 & January 27, 2014 to January 31, 2014 - 8:30 a.m. to 4:30 p.m.
REGISTER ONLINE IBAO.COM
CAIB WINTER SESSION STARTS JANUARY 2014
***At times a smaller venue is required for CAIB Exams. If your office can accommodate a
Proctor and 2 to 3 students in a quiet environment, please contact Tam Good***
Respectively submitted
Tam Good
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Our Board is Growing!
We are looking for new members to come out and Support our IBAWR!!
If you are interested, or know someone who has fresh ideas as well as a passion
for our industry and making a difference, please contact one of our board
members.
Don’t miss out on this opportunity to support your local Insurance Brokers
Association!
**See our Board of Directors for
complete contact information
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