Passion Player Paul Brandt IBAA Convention Keynote Speaker

Client claims he would have purchased coverage if only his broker had told him. What happened next? Page 24

2015 Convention Guide Page 33

April - May 2015 Cdn Publication Mail Registration 40018149

Annette Hubick Message from the Editor

“How to Fail Passionately”— As always, there’s a lot to see, do and politicians. Get the facts in “IBC Insight” that’s the name of Paul Brandt’s learn at the IBAA convention—for a on page 40. keynote address at the upcoming preview, turn to the convention guide We welcome a new columnist to the IBAA convention in Lake (page 33). Serendipitously, in IBAA’s Alberta Broker team. Sara Hart, a partner Louise. When I first read that, I thought, director of PD and communications at Dentons LLP, is the new writing How exactly does one approach failure with Diana Dai’s column, you’ll find advice partner of Shelley Miller for our highly the passionate fervour usually reserved for on “Getting the Most Value Out of Your popular “Legal Ease” column. Have you more positive pursuits? So I asked the Convention” (page 52). ever had a client claim that he would Canadian country music legend just that, There’s nothing like the spectre of have purchased coverage if you had only and a whole lot more, during our inter- elections to shine the spotlight on the told him about it? That’s the type of view for this issue’s cover story—one IBAA’s “raison d’être”: political advocacy. case that Hart and Miller write about in of the most pleasant hours I’ve spent, I IBAA’s CEO George Hodgson gives “Woulda. Coulda. Shoulda.” (page 24). must say. Although there aren’t a lot of the lay of the land and offers advice on I always look forward to the IBAA country tunes on my playlist, I have how brokers can exercise their influence convention as it is a great opportunity for certainly become a fan of Brandt, the on the political scene in“The Advocate” me to gather feedback from readers and man and the brand. (And, I danced (page 16). It is timely, then, that the to uncover hot topics that sow the seeds more than one two-step to My Heart Insurance Bureau of Canada has released for future articles. Please seek me out and Has A History back in the day.) He the results of the INSURECONOMY share your wisdom with me, or at least a exudes authenticity, humility and a strong report, which illustrates the impact of good joke. If you aren’t going to be at the confidence of who he is and his purpose. insurance brokers and their industry convention, my inbox is always open at You can learn more about him in partners on Alberta’s economy—always [email protected]. “Passion Player” on page 8. good info to have when talking with

April - May 2015 IN THIS ISSUE The Alberta Broker is the official publication of the

3010 Calgary Trail, 3 Message from the Editor 30 Commercial Break Edmonton, AB T6J 6V4 T: 780.424.3320 •1.800.318.0197 The “T” Word F: 780.424.7418 • www.ibaa.ca 4 Message from the President President Gord Cowan 33 2015 IBAA Convention Guide Chief Executive Officer George Hodgson 6 Passion Player Published six times annually by: Paul Brandt 40 IBC Insight IBAA Convention Keynote Speaker Deep Impact: Why the Alberta Economy Needs Our Industry 16 The Advocate 9249-48 Street Edmonton, Alberta T6B 2R9 ELECTIONS 44 Brokers Boost Hockey T: 780.448.0936 • F: 780.465.6201 How Distant is the Horizon Equipment Safety E: [email protected] 18 Chinook Country Report 48 I Don’t Seem to Fit in at Work Publisher and Editor Annette Hubick Printing McCallum Printing Group How to build better relationships Design and Layout Ron Leckelt 20 Member Services with co-workers Advertising Michele Schuldhaus 780.448.2890 [email protected] Save Time. Save Money.

The Alberta Broker welcomes articles about the insurance industry 52 Professional Development and its people. Letters to the Editor are welcome.The opinions and 22 PYIB Perspective Get the Most VALUE viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members. 24 Legal-Ease Out of the Convention Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers 54 IBAA Courses Association of Alberta’s magazine - The Alberta Broker (date).” Please send a copy to the publisher.

The Alberta Broker April - May 2015 3 Gord Cowan Message from the President

To start off my last note to the membership, I As for my new role as past president, I will meet this new want to thank the people who work full time on challenge with the same enthusiasm as I felt taking on the behalf of insurance brokers. The staff at IBAA role of president. While I look forward to my final year is a dedicated group of people. The effort they put with the IBAA board, the last seven years have been a great forth to make the office run smoothly is amazing. It’s been learning experience. I have met men and women from across a pleasure to work with our CEO George Hodgson. Those the country who share the same goal: to promote the broker of us who have worked closely with him have been able to channel. When I reflect on what has taken place over those learn volumes. George and I spent much time crisscrossing seven years, I am convinced we have to look to the younger the country together this year. I am amazed at his stamina, tech-savvy brokers to meet the challenges that the future dedication and consistent ability to provide sound advice to broker-channel model will face. That model will change everyone he is in contact with, greatly, with online technology including me. As I move to The catch phrase playing a much bigger role. the past president’s role, I am For over 90 years, the insur- confident that the leadership over the next few years ance broker government-relations George brings to the table will effort has successfully kept the see IBAA continue to grow may well be banking industry from retailing and prosper. P&C insurance at the point of I would be remiss if I did not ‘disintermediation’ granting credit. While this is one thank Scott Treasure and Gord of the most successful efforts of Enders for their continued efforts —that is, the removal of, its kind in Canadian history, we with both IBAA and IBAC. cannot become complacent as the Brokers in Alberta and across or the decreased need for, banks will continue in their efforts Canada benefit greatly from to make insurance a commodity their efforts. These gentlemen the intermediary, that can be purchased without the are leaders who have success- otherwise known as help of an intermediary and at fully raised the bar for all who the point of granting credit. These follow in their footsteps. the broker. efforts will continue to create the The incoming president need for IBAA and IBAC’s joint Robyn Young is a powerhouse federal and provincial advocacy. of talent. She will provide the expertise and leadership The banking and credit-union advocacy portfolios are not, IBAA will need as our industry moves into a new era and however, our only focus moving forward. As technology faces new challenges. Robyn has an extensive insurance moves along at breakneck speeds, interest rates continue to background and a keen skill that allows her to identify and remain low and our company partners continue to look at adapt to the changes within the industry. I cannot help but ways to maximize profitability, the catch phrase over the be excited to see Robyn and George team up to provide next few years may well be “disintermediation”—that is, solutions to what are certain to be challenging times ahead. the removal of, or the decreased need for, the intermediary, IBAA’s current vice president Julia Marshall shows great otherwise known as the broker. ability. The VP role is often a trial by fire and Julia has risen Some of our most stalwart market partners are openly to the occasion. She has excelled in every task and committee exploring disintermediation for the simple reason that they on which she has been asked to serve. continued on page 6 4 The Alberta Broker April - May 2015 continued from page 4 side. We must start now. I have called That, for me, is a wrap. I will turn this are concerned that the broker channel on the young brokers in the past and deal over to Robyn with the utmost is falling behind, resulting in a market- again call on them to become a major confidence the broker channel within share loss to the direct writers. The fact player in the solution to this paramount Alberta and beyond are in good hands that some of our most trusted partners challenge faced by brokers across the and will continue to grow and prosper. also own and operate a direct arm within country. I have little doubt that they A special thanks to all the members of the Canadian marketplace adds to the will rise up to meet that challenge and IBAA. I am humbled in your presence challenge. We need to redouble our succeed in their combined efforts to and thank you for the opportunity to efforts and collectively start intensive prevent further deterioration in market serve such a respected and passionate marketing campaigns to recapture share. group of professionals. market share from our direct competitors, rather than merely exchanging polices among brokers. If the broker channel is STAND OUT to survive and remain vibrant, we can with Alberta’s brokers no longer simply allow the market share by advertising in to be taken by online direct writers. While competition in the market- place must be maintained, the need for a sustained marketing strategy that pools the resources of brokers Call Michele nationwide is essential. Our strength Schuldaus at: is in numbers, and it will take us all T: 780.448.2890 to reverse the trend of market share E: [email protected] being lost to the online directs. In my opinion, the tech-savvy young brokers are the ones who will spearhead this marketing strategy. Time is not on our

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Over 85 Service Locations Across Canada www.winmar.ca Passion Player Paul Brandt IBAA Convention Keynote Speaker

By Annette Hubick

8 The Alberta Broker April - May 2015 “I look at passions a bit like horses. They are beautiful and powerful and even graceful, but without direction, they don’t get a lot done that moves the needle and means a whole lot.”

The Alberta Broker April - May 2015 9 continued from page 9 “I have found that it is is at the times when I have taken that risk that there is the greatest reward. Paul Brandt has received the most at the times when I have The question for me, and I think awards of any male Canadian Country taken that risk that there in life for most people, is that it isn’t Music artist in history. He rocketed to is the greatest reward.” a matter of whether or not you are Nashville music star status at the age going to fail from time-to-time. It is of 24, released 12 albums, launched when. And once failure happens, it neighbours doing the helping have his own record label and established a is what we do with that failure that suffered loss themselves. For example, charitable foundation—and he did it is important. I fought for years with after the Slave Lake fires, Brandt did all with a passionate commitment to feelings of disappointment as sort of a a benefit concert, raising a significant who he is and his purpose. perceived failure. When my ties to the amount of money. Since the town Born in Calgary and raised in Airdrie, major record label that I was signed to was receiving significant assistance the Alberta boy enjoyed singing and were severed, it really challenged my from the insurance industry and the writing country music from an early own view of my identity. But through government, Brandt approached the age. However, logic dictated that the process, I kind of refocused my town leaders to donate a portion of a “real career” was in order and so goals and redefined success. I think in his event’s proceeds to the victims Brandt, fueled by his other passion the largest part because of my faith, I of the Haiti earthquake. “They loved of helping others, became a pediatric started to understand that my failures the idea,” recalls Brandt. “It kind of nurse, with a goal of later becoming can actually be really great teachers in becomes this redemptive thing of, a doctor. However fate had other life. And the idea that failing doesn’t ‘Yeah, I have been through something ideas. During his college years, Brandt define me as a failure, started to horrible but I am going to use it for started entering and winning talent become real to me. The most successful something good.’ It puts power back competitions. He caught the attention people in history fail often but their in the hands of the people who have of label executives, and at age 21, failures don’t define them. Brandt was signed to a seven-album gone through these tough things.” The deal with Warner/Reprise Records foundation ended up building a brand AH: Has your passion changed Nashville. new soccer field and playground, as over the years? well as finishing the building of a Brandt exploded onto the scene PB: I don’t really think of it as change church that had been destroyed in with his first single, “My Heart Has a as much as an evolution … there have the earthquake. In Slave Lake, the History”—the first time a Canadian been some changes and I look at them remainder of the money was used to male country artist had reached the as more of a refinement. I think help rebuild the public library that had top 10 of the Billboard country songs passions often play into the things burned down. chart in the United States since Hank that we love and the things that we do A storyteller by nature and by Snow did in 1974. Fast forward four well or that we are gifted at. Finding profession, Brandt has also added years and as many albums later, Brandt the main focus in your activities and “professional speaker” to his resume walked away from the Nashville music passions is the key to having a focused and will be bringing his unique brand machine when it became very apparent and effective and purposeful life. that the requirements of achieving of inspiration and insight to the 2015 success as an artist with the label didn’t IBAA convention as its keynote line up with who he was as a person. speaker. He shared his stories with me AH: How would you define In 2001, he successfully negotiated and his views on passion, risk and yes, your passion at this stage in his release from his record label even insurance. Read on. your life? contract and, along with his wife Liz, PB: AH: You’ve entitled your I think for me it is about using formed an independent label, Brand-T presentation, “How to fail my gifts and my abilities to really play records. Each of the five albums he has passionately.” What do you out and live out my faith and really released under Brand-T has earned mean by “failing passionately?” serve God and other people. That is “album of the year” accolades from the thing that drives everything for me. PB: I think that my whole life has industry associations. … I think you go from this position seemed like a sort of battle inside of In 2010, he and Liz, whom he of finding success to looking for me between playing it safe and taking married in 1997, established the significance, in what you are doing. risks. And I think a lot of the risks I’ve Build it Forward Foundation, which I find for myself now, when I get on taken in the music business—it’s kind focusses on creating opportunities for stage, I know that however many of a high stakes game—have been neighbours to help neighbours with a thousands of tickets we sold on that unique twist in that often the calculated ones. I have found that it continued on page 12 10 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 11 continued from page 10 “I think you go from the unexpected and beautiful journey for show went to helping out our me. It has just been amazing. I don’t foundation or our partner foundation position of finding success feel like I abandoned my plans though. or charity. And when I sang that song, to looking for significance That driving force that I was talking a little girl was freed from human in what you are doing.” about, that passion and the driving trafficking or someone who didn’t have force behind my medical goals were to a home had one built for them. You use my life to help people. And while know, it gives it a drive and a purpose me. I had no idea how it was going to I haven’t been in medicine for a long to all of it and starts to really focus it. turn out. But I had a feeling that I was time, I feel that I have still been able going to regret it if I didn’t give it at to achieve that goal in a lot of different AH: You were originally on least a bit of time and try it. I still find ways through music. a path for a medical career. it hard to believe 20 plus years later AH: Why did you want to Why decide to take a risk on a that people actually let me do what I leave the label? music career instead? do. I am kind of pinching myself and PB: PB: I was 23; life happened and I wondering when they are going to I think that there is this moment followed. I was working at the Alberta figure out I am not the guy. where it all kind of, it sort of was the Children’s Hospital as an RN with straw that broke the camel’s back. It an eye toward getting my bachelor AH: Right. What was the was kind of where I went, “Ok, that of science and then working my way worst that could happen? is why this isn’t working.” (There was) through medical school. I’d been PB: Honestly, I think there was this this one particular song that they entering talent contests and singing little theme playing in the back of really wanted me to record and they music for family and friends during my brain that was saying, “You will thought it would be a huge hit. And it that time—partly as a hobby and be down there for a month and then was a really great song, a well written partly just to see how far I could push you will be back at work again.” But song, but it just so happened that I it. When Nashville called I just said I thought I would give it a shot, and didn’t agree with the message. And yes, I didn’t know where it would take it has been the most unlikely and I remember them asking me, “What

12 The Alberta Broker April - May 2015 is more important: What you believe came in. We literally went from selling I always appreciate it or your career?” I am really glad they 500,000 records (in the U.S.) to selling asked that question, because it made 18,000 records … I remember talking when that broker me stand up and make that decision. to the head of the record company at has empathy and there are I don’t think they had to be mutually that time and saying, “What is your exclusive—my beliefs can be really digital plan? What are you going to timely responses ... and they important and they can flow through do?” And he looked at me and he give me that authentic, into and direct my career. But they laughed and said, “Ah. It’s a passing wanted me to make a choice between fad; it’s like the CB radio.” transparent, the two. The whole industry got stuck in that up-front information. And the same thing happened right way of thinking and they didn’t have after Liz and I were married. I wanted a clue what would happen with it all. to take a week off and go on a honey- We were the first major industry to be AH: The insurance business moon to celebrate the fact that we impacted by the Internet in that way. has undergone similar were married, and they had an event So for me to get off the label at that “digitization” challenges with they wanted me to attend. And it was time to become an independent artist the advent of online insurance the same question: What is more and to take advantage of that transition commerce. How did you adapt important, your marriage or your in the music industry, the timing to this change in your career? And I thought, “Wow. This couldn’t have been better. Of course, industry? isn’t a position I really want to be in.” I didn’t know any of that. I could not PB: I think that maintaining a Liz and I started to take a step back have known that it was going to work presence today in the online world and look at it … and we decided that out as well as it did. requires teachability. You have to be it made a lot of sense for us to ask to Going from selling a million records quick. You have to be really fleetfooted get out of the record deal. to then on my next project only selling and you have to have a willingness about 40,000, at first I thought, “Man, AH: What was it like being an to outsource. You have to have a trusting I am sunk. There is no way I can make artist, with other people and risk-taking outlook. And I think a living doing this.” But then I realized looking after things, to I would add that authenticity and that because of the business structure suddenly becoming a transparency are key. I think for that and the way all of the dollars lined businessman? situation in the insurance business, up, I actually made more money than it’s about transparency. “Yeah, you can PB: I don’t think I have ever been so selling one million with a major label. get this for 25 bucks. But then you are at peace and so terrified at the same So, what’s not to love here? I get to be only getting 25 bucks worth. And we time. … It really felt like a freefall but myself and make a living doing what I just want to be your friend. We just it felt like it was the right thing to do. love. So, it was an amazing story from want to help you.” So those tenets: the We went from having about a hundred a business standpoint. continued on page 14 people working on my music and marketing and promotion and artistry to just me and my wife Liz, an agent and a business manager. I am really thankful that I get to be in a position now where I can maintain creative control and say what I say and do what I want to do with the music.

AH: It’s turned out well for you. PB: I think a lot of people look at those decisions that I made at that time specifically within the music industry and they go, “Wow. That was genius. That was such a great business move.” Because at the same time that all of these things were happening with the label, the digitization of music was happening and the MP3 The Alberta Broker April - May 2015 13 AH: Tell me about your continued from page 13 masks. It wasn’t about individualism experiences with the flood and “Look at me.” It was about a last year? Were you impacted teachability, the authenticity, the whole team of anonymous people personally? quickness and willingness to out- jumping in and doing something PB: source, are true regardless of what The flood didn’t directly touch our because it was the right thing to do. I industry you are in. That has to be the home physically, but I think everyone loved being a part of that. It was a lot approach on the internet. in Alberta was impacted in a huge way. of fun. You never want to see these difficult AH: Who buys the insurance things happen. But man, it was amazing AH: How do you define your in the house and what do you to see what came of it. When it came brand? look for in a provider? down to it, all of us stopped being PB: The Paul Brandt brand has PB: I do; but I pretty much run from different towns or cities and become known as the premier provider everything past her. I think for me we were all just simply Albertans. I of family friendly country music in when it comes down to it, I want to am really proud of the character and Canada. It reflects traditional family see a great product and I want to see spirit that we find in this province. It values, western heritage and faith in something that makes sense for me was not a great thing to have to go God. and my needs. But I always appreciate through, obviously. But it was amazing I believe there is nothing more it when that broker has empathy to see how people stepped up to help valuable than brand. Brand enables a and there are timely responses that each other out. business to be successful financially or have been quick and they give me measured by any other metric. And I AH: Did you get in there that authentic, transparent, upfront think it has to always be valued over yourself and swing the information. It is always great to know that low hanging fruit, the quick hammers? that when you need that service that dollar. The brand has to be the thing PB: you paid for, it is waiting and ready Absolutely. It was really rewarding that guides all of it. when you need it. Those are the things and it was really a lot of fun in High I think I have come to value. River because everyone was in suits and

14 The Alberta Broker April - May 2015

The Advocate George Hodgson

The Current Federal This year, Albertans could Political Landscape see two elections as early as this spring. We are currently four years into Canada’s 41st Parliament with the Many speculate that the provincial next election scheduled to occur on Progressive Conservative Government The Current Provincial the fixed election date of October may call an election sometime in April Political Landscape 19, 2015. The Conservative Party in or May. A number of signals support We are currently three years into Canada currently holds a comfortable this view: parties are hurrying to Alberta’s 28th legislature, with the majority of more than 160 members nominate riding candidates and those next election scheduled to occur of Parliament, with the opposition that do not have leaders at this time between March 1 and May 31, 2016. parties, independents and vacancies are moving up the dates of their However, with the shaky Alberta making up the rest of the 308 seats. In leadership elections. economy and a new premier, an the next election, the number of seats A second, and perhaps less likely, election is very likely a year earlier will increase from 308 to 338 due to scenario has the federal Conservatives than scheduled. redistribution. also calling an election for this spring. The Progressive Conservative Party Currently, 17 federal political Currently, less evidence points to a currently holds an overwhelming parties are registered in Canada, many spring 2015 federal election than to majority in the 87-seat legislature. of which will field only a handful of provincial one. In any case, we need to Nine political parties are currently candidates across the country. Most get involved now in the political registered in Alberta, with four of ridings will have five or six candidates, process, whether we’re facing a month them represented in the legislature. although some will have considerably or a year until the next election. In all likelihood, at least six of those more. That could mean up to 2000 With over 30,000 brokers country parties will be represented in every candidates for the 338 positions! wide and over 5000 of those in constituency in the next election with Alberta, the broker community is the odd independent running in a few Influencing Public Policy represented in every federal and ridings. In all, over 500 candidates will Practically speaking, the Canada provincial constituency, indeed in every likely be vying for the 87 seats! political system requires three community big and small across this ingredients to sustain it: policy, province and country. organization (volunteers) and money. 16 The Alberta Broker April - May 2015 POLICY. Common policies are the much money individuals and other our support. Whether a particular reason political parties exist. Visit the entities can donate. party forms the government or not, party websites to obtain contact and Corporations, unions and any entity it makes a significant contribution to background information on local other than individuals cannot donate good government. candidates as well as policy and any money to federal parties. Strict Remember, too, that public polling, platform information. Remember, limits are imposed on individual the kind that pundits use to predict some political campaigns release their donations. To obtain information on elections, has not been overly accurate platform on a specific date while donation limits, go to the Elections in the last few election cycles. Recent others do so in stages throughout the Canada website at www.elections.ca elections in British Columbia, Quebec, campaign. and search for “contribution limits” or New Brunswick and even to a certain Once informed about the candidates’ look under the “political participants” extent Ontario produced very different policy positions and platforms, we icon. results on election day than the almost- need to communicate our concerns to Politicians will pay certain result they were predicted to the candidates. Writing letters to the produce. Since winners are almost incumbent MP or MLA and/or more attention to impossible to predict with any great candidate as well as making appointments true altruism than deal of certainty, choose the party or to see them are effective means by to self-interest. candidate that you feel best represents which we can inform politicians of our your ideals. Regardless of whether that issues. Contribution limits to provincial candidate or party wins, you will have What are our issues? We need to parties in Alberta, while restricted, made a positive contribution. be careful with how we frame them. are much less so than in the federal All of these methods are effective Politicians will pay more attention if arena. Donations of up to $30,000 to ways of getting our message to our we communicate from the perspective a political party during an election are elected representatives. The most of consumers who represent the largest possible. To obtain information on important way to register your voting segment. Moreover, politicians donation limits to provincial parties opinion, however, is to get out on will pay more attention to true and candidates, go to “political entities” election day and vote for the candidate altruism than to self-interest. in the Elections Alberta website at that you think will best represent you! elections.ab.ca. ORGANIZATION. Political organizations thrive on volunteers and Choosing which Political Party or Candidate to Support GEORGE HODGSON numerous roles are available. Between CEO, IBAA elections, we can exert continuous Remember that all major political [email protected] influence on the political process by parties, federal and provincial, have participating on constituency association some compelling, positive reasons for boards. Election campaigns afford the greatest opportunity to volunteer as people are Premium Financing required to manage campaigns, raise Personal and Commercial Lines funds, keep books, knock on doors and more. For those up to it, door knocking with the candidate gets the most exposure to the campaign and to the public at large. Candidates remember those who door knocked with them as www.ifs-financing.com the shared experiences can often create interesting and vivid memories. • Superior technology • Easy quoting and contract generation • Exceptional customer service MONEY. Fundraising is a critical • Flexible rate and various plans available component of all political campaigns. • Full service provider Successful campaigns often out-spend BRENDA BRELIS their opponents. Here, one must be Business Development Manager, Serving Canadian brokers for Western Canada careful as Elections Canada and more than 35 years! [email protected] Elections Alberta both restrict how Toll Free: 1-877-389-9009

The Alberta Broker April - May 2015 17 Who? What? Where? Darrell Verbonac

BROKER NEWS Sherwood Park, and Asad Malik moved and director of national sales Gord Long-time industry veteran Harry from Lucas & Wright Insurance to Mansfield. The other new brokerage is Mason retired, selling his Canyon Capital Insurance in Edmonton. a Lundgren & Young Insurance office Insurance Brokers operation to Other people news in Edmonton located at 909-7th Avenue SW, which Westland Insurance out of British includes Chris Huebner being is being run by Margaret Aprao. Columbia. Staff member Gurinder Rai appointed president of Lloyd Sadd Congratulations go to Crista Costen and the Canyon files were moved into Insurance and Christian Metivier of Costen & Associates on the arrival of the Westland-owned Palliser Insurance joining Bulger Insurance. her third son, Lochlan Clarke Keating, office, and Susie Moody left the Stephanie McDougall is the new who was born January 21, 2015. insurance business to embark on a HUB International branch manager for career in photography. Edson and Hinton, having previously In another acquisition, David been in a similar role with WFG. Waldron of Braeside Insurance There are two new brokerages in Cal- purchased Marlec Agencies Ltd. up in gary, including InsurMy Ltd., which is Olds; Joy Jenkins will continue to run a subsidiary of Godfrey Morrow Insur- the office. ance. InsurMy will be operating in both Back to Westland Insurance, Alberta and Ontario, offering all lines Caroline Gould is the new vice insurance but also a telematics offering president of Alberta operations, having with time-based insurance. Heading up Best wishes go to Ron Poole of WFG most recently been on the executive of InsurMy is president Hugh McTavish in High River and Ralph Zutter of Western Financial Group (WFG). Also joining the fold at Westland is Heather Gauthier, who was with Economical Insurance. In staffing moves around Calgary … • Mary Deiter moved from CRS Merrill Insurance to Godfrey Morrow Insurance. • Kristie Adams moved from Jardine Lloyd Thompson to Renfrew Insurance. • Keegan Wilmot moved from Palliser Insurance to Rogers Insurance—also new at Rogers is Sue Diocee. Down in Brooks, Michael Hollinda left WFG and opened up a new operation under the banner of Forefront Insurance Inc., which is part of the Excel Insurance Group. A couple of people have left Calgary to move “up north.” Barbara Wade moved from Sun Valley McKenzie Alberta Executive Panel Insurance to Tailor Made Insurance in 18 The Alberta Broker April - May 2015 Competition Insurance in Edmonton received national awards: Kari Thomson who retired after many years in the of RSA Insurance was the top FCIP business. graduate in the risk management major, and Helene Klassen was the top FCIP COMPANY NEWS graduate—continuing education At Intact Insurance, Jordan Froese certificate. Six issues transferred from Edmonton to Calgary, annually DARRELL VERBONAC, taking on the role of business development FCIP, CRM ONLY consultant, and Ty McDonald was Regional Business $ 00 appointed as commercial auto manager. Development Manager 45 +GST At Wawanesa, Angela Brown returned Intact Insurance Company to the company side from Riverstone [email protected] Email: [email protected] Insurance in Cochrane, joining Wawanesa’s commercial lines department as a supervisor. Up in Edmonton, Gene Paulsen took over as president and CEO of Peace Hills Insurance, and Brian Gallimore joined the insurer as its northern Alberta commercial lines manager. Bill Doig is new at Intact, taking over as commercial lines director. Best wishes go to Diane Brickner who has retired as the president and CEO of Peace Hills after 33 years with the company. Diane was an original employee of the company and rose up the ranks to the top position, replacing Bill Holt in 1990. Also retiring in Calgary were Conrad Heninger of Sovereign General Insurance and Shari Komm of Intact Insurance. The Alberta Insurance Council appointed Anthonet Maramieri as its new chief operating officer. She is based out of its Calgary office. In sad news, Alf Savage, the former Chairman of the Alberta Auto Rate Insurance Board passed away in late January at the age of 84.

Institute Convocation The Insurance Institute of Southern Alberta held its annual convocation in late November at the Stampede Ground’s BMO Centre. Institute general manager Caroline Logan and her staff celebrated the graduation of six general insurance essentials graduates, 60 chartered insurance professional graduates and 20 fellow chartered insurance professional (FCIP) graduates. There were two local members who

The Alberta Broker April - May 2015 19 Member Services Janis Losie SAVE TIME. SAVE MONEY. Introducing the Sage Business Booster Kit

AVAILABLE NOW... Damage Control Pro I mentioned in my last article that we were introducing or refreshing our line- Aquatrip products for prevention of ACC Energy up of vendors for our broker members. water damage claims—added-value On February 19 and 20, 2015, we held Discounted commercial and residential product to market directly to your cli- events in Edmonton and Calgary electricity rates for members and their ents. This product can detect a water leak introducing our latest additions to the staff. ACC currently has a successful anywhere in the system and automati- Broker Booster Kit. We invited the partnership with the chambers of cally shut off water to the dwelling. Very principals from all of our broker commerce in Alberta. cost effective—the most expensive members across the province. In the end, model is $500 vs. the $1800–$2200 AKABroker we had 11 brokers from Edmonton and quoted for other products on the market. Flat-rate website development with 24 brokers from Calgary accept our EasyClaims invitation. online quoting ability ($2250). Despite the low numbers, the events Online claims aid to enable brokers BDO were a huge success. Brokers had the to initiate auto appraisals and property opportunity to spend time with each One hour free accounting consulta- estimates with approved vendors when vendor and learn about their offerings. tion the client first reports the claim. The vendors walked away with lots of on a topic of your choice—available for First Insurance Funding brokers wanting to take advantage of your accounting needs. Premium financing, broker cash-flow their products and services, while the BMO management, succession planning and brokers left with tools that will help acquisition financing. them boost their business—internally Start-up and acquisition financing, and externally. plus discounted bank rates. groupSource So, here is the complete lineup of BlueButler Discounted group benefits for brokers vendors participating in our Booster Kit. and their staff. If you would like to know more, many Telephone productivity and recording of these folks will be at our convention software integrated with most phone IBAC Tech Website May 3–6. Those of you who weren’t able and BMS systems. Gives member brokers access to to attend our launches in February will streamlined technology and an online CSIO be able to find out what you missed. community for discussion and updates. As always, you can contact me as well Access to eSignatures and eDocs DAS Canada for further details either at 780.414.9045 technology and ongoing insurance or at [email protected]. technology development. Discounted rates on legal expense insurance. 20 The Alberta Broker April - May 2015 I-Clarify OneBrand Partner MYNMAX Home evaluation software based on Bipper-branded promotional items at Procurement services for brokers and actual recent claims rebuilding costs. a reduced rate for IBAA members. staff—access to over 75 categories of Obtain an evaluation in 3–5 minutes! items from business machines to tires Sharp Mobile App for the office or home. Take advantage InsuranceWorks Give your clients mobile access to their of the pooled buying power of 400,000 Discounted employment ads, access policies, pink cards, claims reporting, other businesses and individuals. to online resumes of job-seekers for one GPS locating and scene photo uploads. low rate. CanTelematics Westport/Swiss Re Provide your commercial transportation McLean’s Marketing Robust E&O program with the best clients with up-to-the-minute 24/7 Discounted broker-branded pink card protection available—competitive rates, tracking of their fleets for any number of holders. We haven’t found anyone who stability and outstanding claims service important elements—from hours on the can match McLean’s price. from one of the world’s leading providers road to speed, stops, braking and GPS of E&O insurance. location. Moneris COMING SOON … Discounted payment machines and payment rates. PaySavvy Payroll Nirix Discounted complete payroll services Move your business into the cloud including remittances, reconciliations JANIS LOSIE and never have to purchase servers or and T-4 issuance Co-ordinator of computers again. Reduce IT costs and Member Services, IBAA have access from anywhere you can find [email protected] the Internet.

The Alberta Broker April - May 2015 21 PYIB Perspective Jonathan Brown Excellence Now is the Time in customer Now is the Time service– this is one of the main messages that most of us are telling our clients when toto BeBe thethe we need to explain why they should choose us as their broker. But are we really providing this to them? What Best Broker does it mean to the customer when Best Broker they deal with us? Are they really getting exceptional service from us that they would not be getting with a call YouYou CanCan Be!Be! center direct writer? What is excellence in customer service, really? Some would say that it is the ability to access multiple markets to get the best rates and coverage; others would say it is the personalized service that we offer or the claims assistance that some brokers provide. These are all great responses, but in my opinion, the reality is that they are all just part of the comprehensive customer experience and that they should be second nature when dealing with any client. Today, possibly more than ever in the past 20 years, this may be the concept that will drive our business if we want to move forward. In the reality of the Alberta market- place of today, with lower oil prices and the resulting economic impact that this may have, many clients will be looking to lower their costs for the coverage and services that we provide. They may be willing to move their coverage for a small reduction in price without knowing the coverage that they are getting and the benefits and detriments of such a move. This offers opportunity for both great positive gains and losses based on how we handle ourselves as brokers. With many clients shopping for better rates, we have the opportunity to give them insight into what they truly need for coverage, and what they

2220 The Alberta Broker April - May 2015 are paying for and why. We have the attention to detail will often be the by providing each and every one of our ability to take back large numbers of ones with the ability to grow in a lower clients with an exceptional customer our clients from the direct writers, and economy, and those who fail at this experience. all we have to do is be able to fit the may see many of their customers leave coverage to their needs and provide an for perceived savings through another exceptional experience to them. broker or direct writer. This experience begins with knowing I hope that we are able to turn a JONATHAN BROWN, what we are talking about when we perceived negative economy into a CAIB recommend coverage and will require positive, with the opportunity to regain [email protected] that we take the time to learn our our customers from the direct writers, available markets and their best application. Start with our own clients, reviewing their coverage prior to renewal to make sure that we are providing the best coverage and taking advantage of all that is available for discounts. Often we are reluctant to remarket a policy, but, if needed, this could be a very valuable tool to retain the business in our offices. It shows clients that we are looking for the very best coverage and premium for them. In my experience, clients who believe that you are looking out for their best interests and are making them a priority very rarely shop for other coverage, because, let’s face it, who really likes insurance shopping? Taking this approach further, I have often found that insurance agents and even underwriters do not really under- stand the auto insurance grid and how to properly calculate it, which can often result in better rates for some of those drivers in higher-risk categories. Making sure that we are properly educated in how to use the grid is essential to quoting coverage accurately. On the personal property side of things, being able to fully explain coverage and the need for it, in a way our clients can understand, is essential to them seeing the value in it. Without this understanding, many of these customers will be making their decisions based only on premium. While these recommendations may all seem like simple things that should be second nature to us all, our attention, or lack thereof, to these simple details may be what defines our brokerages as successful or not. Those with the best The Alberta Broker April - May 2015 23 Legal-Ease Shelley L. Miller and Sara Hart WOULDA, COULDA, SHOULDA Court Rules on Optional Benefits Claim

The Plaintiff, Nicola Zefferino replacement benefits of $1000 per week. Three issues were addressed by the (“Nicola”) resides with his wife, Sabina To enhance efficiency and to ensure Ontario Superior Court as follows: Zefferino (“Sabina”) in the province proper file handling, Meloche’s sales 1. Did Meloche owe Nicola/Sabina a of Ontario. On May 27, 2005, Nicola representatives used a standard script duty of care in the sale of an automobile was involved in a motor vehicle accident, when speaking to potential customers. insurance policy? resulting in personal injuries such The conversations were recorded and 2. Did Meloche breach the applicable that he could no longer be gainfully produced in the litigation. The evidence standard of care by failing to properly employed. confirmed telephone conversations by offer optional income replacement Nicola was insured by the defendant both Nicola and Sabina with Meloche benefits to Nicola and Sabina? insurer, Meloche Monnex Insurance in relation to the initial policy in 2003 3. Would Nicola/Sabina likely have Company (“Meloche”) since September and with regard to a vehicle change to purchased the optional benefits if they 2003. Sabina purchased the policy the policy in 2004. In both conversations, were properly offered by Meloche and from Meloche through a business optional benefits were refused by if so, what amount of benefits would promotion offered to employees of TD Sabina. Nicola and Sabina also then they likely have purchased? Bank where she worked. Nicola and received a certificate of automobile The court first noted pursuant to the Sabina chose to insure with Meloche insurance which outlined the coverage House of Lords’ decision in Hedley due to its competitive pricing. purchased and showed various optional Byrne & Co. v. Heller Partners Ltd., [1964] A.C. 465 (H.L.) that a duty of Following his accident, Nicola was accident benefits, all of which were care can be owed by insurance agents entitled to, and received, the statutory listed as not having been purchased. who are in the business of providing minimum income replacement benefit Pursuant to legislative changes which insurance information and advice of $400 per week. Nicola brought an occurred in Ontario in November 2003, to customers. The court then noted application for summary judgment it became mandatory for all insurers/ that the Supreme Court of Canada in against Meloche [Nicola Zefferino v. brokers to offer optional income Fletcher v. Manitoba Public Insurance Meloche Monnex Insurance Company, replacement benefits. The requirement Co., 1990 CanLII 59 (S.C.C.) at page 2012 ONSC 154, appealed and to provide optional benefits is set out 11, also held that insurance providers affirmed at 2013 ONCA 127] in Part VIII of the Ontario Statutory owe a duty of care to their customers (“Zefferino”) alleging that it failed to Accident Benefits Schedule – Accidents if: “(i) such customers rely on the offer him optional income replacement on or after November 1, 1996 under s. information, (ii) their reliance is benefits coverage, which if it had been 27(1) and (2). reasonable, and (iii) [the provider] offered, Nicola claimed he would have In this particular instance, Meloche knew or ought to have known that purchased. Had he purchased the did not engage either Nicola or Sabina they would rely on the information.” optional income replacement benefits, in detailed discussion of the income re- Applying the principles from these his income at the time of the accident placement benefits or the potential for authorities, the court held that would have qualified him for income securing optional benefit coverage. continued on page 26 24 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 25 continued from page 24 as to whether they wanted the optional any damages to Nicola, Nicola’s claim coverage or not. for summary judgment was dismissed Meloche owed Nicola and Sabina a Despite finding that Meloche owed a with costs. duty of care. duty of care to the plaintiff and that it An appeal of the decision was dismissed There was more debate about whether had breached its duty of care, the court on the basis that nothing in the facts at Meloche had breached the duty of held that based on the evidence, Nicola/ bar altered the normal burden of proof care. Nicola relied on the mandatory Sabina would not have purchased in a negligence action, which remains nature of Meloche’s requirement to of- optional benefits coverage even had throughout with the plaintiff. fer optional benefits. He also relied on it been properly explained. Based on In summary, although Nicola did the consumer protection purpose of the Nicola/Sabina’s history, they had never suffer a loss of income because he had mandatory offer. purchased anything other than basic not purchased the optional income Meloche argued that the conduct of insurance coverage. Their choice in replacement coverage, there was no its sales representatives in offeringthe securing insurance was always based on evidence that even had the optional optional benefits without detailed inquiry price. Furthermore, Nicola chose not to benefits been properly offered he into the customer’s circumstances and call any evidence from Sabina, who would have paid the increased without providing a quote as to the purchased the insurance and accordingly premiums and purchased the cover- additional costs of the optional coverage was consistent with industry standards. an adverse inference was drawn. Given age. Meloche’s actions did not result in In support of this contention, Meloche that Meloche’s actions did not cause Nicola’s income loss. had its own employees give evidence. No independent expert evidence in relation to standard of care was called SHELLEY L. MILLER, Q.C. and SARA HART by either side. The lower court held are lawyers with that there was a failure by Meloche to Dentons Canada LLP and practice in the offer the optional benefits coverage in a professional liability insurance area. meaningful way, so that Nicole/Sabina [email protected] [email protected] could have made an informed decision

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Email to meet me in Lake Louise! 26 The Alberta Broker April - Maym 2015

28 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 29 Commercial Break Karen MacWilliam The “T” Word

lanes falling from the sky that we can’t find. Planes shot down ‘accidentally’ some-P where over Crimea. A shooting on Parliament Hill. Political cartoonists shot dead in their offices in Paris. Hostages shot in a Sydney café. A bombing near the finish line of a marathon. These events are seemingly random and unrelated, until Anderson Cooper shows up, CNN creates a theme song, and Peter Mansbridge tells us, “here’s what we know right now…”

The consequences of each of these events are insurable, however, the premature or inappropriate use of the word “terrorism” can have shock- ing consequences from an insurance perspective.

Here’s the issue:

In Canada, the standard IBC definition of “terrorism” is: instilling fear in the “… an ideologically motivated unlawful public or a section of act or acts, including but not limited the public.” to the use of violence or force or threat of violence or force, committed by or on We all nod and say to behalf of any group(s), organization(s) ourselves, “Yup, got it.” or government(s) for the purpose of To which, I respond, influencing any government and/or “Wait a minute.” 30 The Alberta Broker April - May 2015 Does an (hypothetical) organized opinion, this type of loss would be different insurers, with different limits group of angry citizens, who want excluded by that wording because it and deductibles. bans to genetically modified crops, allows the insurer to determine whether marching on the legislature in something is a terrorist act. Following the Boston Marathon Edmonton, demanding action from bombings and the shooting on Premier Prentice and threatening What needs to happen is that the Parliament Hill, I watched and damage to government property definition should be amended to listened carefully. No “T-word” came qualify as a terrorist organization? include a requirement for a terrorist from President Obama or Prime Let’s see … Ideology? Check— act to be DECLARED by a presiding Minister Harper. In the case of the passionate about banning genetically government official to make it so. In Boston bombings, news pundits modified food. some cases, it would mean that the criticized the president for not terrorist-caused loss is excluded. In immediately labelling the bombing a Threat of violence? Check. other cases, it would mean that different “terrorist” attack. insurers will pay. Group or individual intending I think that the president was well to influence government? Check, We still don’t know what happened briefed, and in part wanted to preserve that’s why they’re at the legislature. to Flight MH370. One year later, insurance coverage for businesses on most of us have moved on. Insurers Boylston Street that sustained massive Instilling fear in the public? Check. haven’t, because without debris, we damage and business interruption. They want to make sure people are don’t know how and why the plane That way, the peril is fire, explosion scared of perceived Franken-foods. came down and whether it was a result or malicious damage, and people get of terrorism. If it was a mechanical coverage. As soon as a government If they caused any damage, I am problem, aircraft hull and machinery official uses the “T-Word,” insurance doubtful that an insurer would invoke insurers pay. If it was brought down as continued on page 32 the terrorism exclusion. But, in my a result of a terrorist act, it’s potentially

The Alberta Broker April - May 2015 31 continued from page 31 vandalism and malicious damage” to coverage gets murky. many policies, particularly where the So, what does this mean for you as insured was a government entity. brokers? Watch the news with fresh eyes f your client is a target, investigate and ears. Though terrifying, not all terrorism coverage. Examples despicable acts by deranged people are Six issues Iinclude: religious institutions, govern- terrorism. annually ment entities, large utilities, oil and gas ONLY producers and anyone whose business KAREN MacWILLIAM $ 00 has previously been the target of activ- is an insurance and risk 45 +GST ist demonstrations. management consultant [email protected] Email: [email protected] Get a quote, even if your client doesn’t ask. If coverage isn’t taken, document your file.

The Terrorism Risk Insurance Act (TRIA) has been extended in the U.S. until 2020, so U.S.-based risks have access to coverage, reinsured by the U.S. federal government.

heck the definition of “terrorism.” In my opinion, the standard IBC approvedC definition may inadvertently exclude any damage to government property caused by others as a terrorist act.

Some insurers will modify the exclusion, but you have to ask. I have one wording that I have used that begins by defining terrorism as: “… any deliberate, unlawful act that is declared by any authorized governmental officer to be or to involve terrorism, terrorist activity or acts of terrorism…”

It also contains other defining criteria.

sk your client about mortgages and loans. There is a wide variationA variation in the ininsured the insured perils required by different lenders. In my experience, mortgage lenders in the U.S. and Western Europe are often requiring terrorism coverage for large risks.

larify the intent of the terrorist exclusion with the insurer by givingC them examples if you and your client have concerns. I have added the words “terrorism shall not mean 32 The Alberta Broker April - May 2015 2015 IBAA CONVENTION GUIDE

May 3-6, 2015 Chateau Lake Louise

The Alberta Broker April - May 2015 33 2015 IBAA Convention – The SPEAKERS

Keynote: How to Fail Passionately and Win Most people agree: attitude is key to achieving goals in life—a winning attitude, positive thinking, that magnetic personality, great people skills, being influential and persuasive. All of these attitudes and attributes are important to success, but they are not enough.

Join Paul Brandt, Canada’s Most Awarded Male Country Artist in history, on a trip through the music industry, around the world and to other “great opportunities brilliantly disguised as impossible situations” as he discusses brand, business focus and the definition of success. He might even sing a little too.

Reduce Cost, Engage Customers, and Grow Your Brokerage with Technology In today’s evolving environment, brokers must continue to explore and implement more efficient and cost-effective ways of doing business with their customers and insurer partners. Channels such as email, mobile web, instant messaging, and social media are now in active use for conducting insurance business. More than ever, brokers will need to integrate the latest in workflow, communication, and marketing technology to meet the changing demands of a tech-savvy customer. Presented by CSIO’s Sarina Visram, manager, member relations and communications and Hans Gantzkow, senior architect you’ll find out of how CSIO technology solutions and services can help your brokerage not only enhance customer experiences and aid in retention but also ensure you are doing so in the most efficient and productive manner. The Customer Experience Lake Louise Photography Make perceptions change from PRICE to VALUE! Walk and Talk Your customers will actually “feel” a specific way after you Everyone can use a few tips have spoken to them or processed a transaction on their on how to capture better behalf. The feeling they get from your interactions and your images or look their level of service is proven to be what makes them stay with best in photos. us and, more importantly, what motivates them to refer new Join professional customers to your organization. Sean Mulcair photographer Join to learn some of the simple and Sean Allen effective ways you can improve your clients’ experience and for two hours ultimately improve your bottom line! of tips and Positive Programming for Optimal Performance tricks. Whether you want to Stress, fear, and negativity block performance and lead to mental and physical make better use health problems. It’s time to release the power in the minds of everyone in your of your iPhone organization to be more productive and ultimately increase camera, improve your your bottom line. Sure, but how do you do that? grasp of the different Laughter, for starters. Lots of laughter. Wayne Lee modes on your DSLR or learn ’s unique combination of mind power some secrets to looking your best in techniques and exclusive “Set Your GPS for Success” theme front of the camera, there will be will remind you that you have the power and ability to something for you on this photo walk. manage your stress, activate your imaginations and All you need to bring is yourself and surpass any goals. your camera (smartphone camera, iPad, Wayne will be pulling double-duty during the film camera, DSLR, whatever you’ve convention—in addition to his entertaining workshop, got that captures images will work) Wayne will be the MC for all sessions and the president’s dinner and gala. Make sure to dress to be outdoors for about an hour.

34 The Alberta Broker April - May 2015

2015 IBAA Convention – The SCHEDULE

PHOTOGRAPHY TIPS Sunday, May 3 WALK and TALK GOLF TOURNAMENT 2:00 – 4:00 p.m. PEACE HILLS PARTY Golden Golf & Country Club with Sean Allen 8:00 p.m. – Midnight 10:30 a.m. Bus departs for golf course Hotel main lobby Victoria Ballroom 1:30 p.m. Shotgun Start

Monday, May 4 BREAKFAST BUFFET LUNCH PRESIDENT’S MASQUERADE 7:30 – 9:00 a.m. 11:30 a.m. – 12:30 p.m. DINNER & GALA Mt. Temple Ballroom Mt. Temple Ballroom 7:00 – 10:00 p.m. Mt. Temple Ballroom KEYNOTE: How AGM MC: Wayne Lee to Fail Passionately, 12:45 – 4:00 p.m. Illusionist: Sheldon Casavant 9:00 – 10:00 a.m. Plain of Six/Saddleback Paul Brandt Mt. Temple Ballroom PHOTOS 4:00 – 7:00 p.m. Alpine Room Reduce Cost, Engage PRESIDENT’S CHAMPAGNE Customers, and RECEPTION Grow Your 6:00 – 7:00 p.m. Brokerage with Heritage Hall Technology 10:30 – 11:30 a.m. Sarina Visram and Hans Gantzkow, CSIO Mt. Temple Ballroom

Tuesday, May 5 BREAKFAST BUFFET 7:30 – 9:00 a.m. Mt. Temple Ballroom

8:00 – 8:45 a.m. BMO Education Session Mt. Temple Ballroom TRADE SHOW Make Perceptions Prize draws throughout show – Change from must be present to win! PRICE to VALUE! Positive Programing for Mt. Temple Ballroom 9:15 – 10:45 a.m. Ultimate Performance 6:00 – 10:00 p.m. Sean Mulcair, 11:15 a.m. – 12:45 p.m. Gradient Solutions Wayne Lee HOSPITALITY NIGHT Victoria Ballroom Victoria Ballroom Victoria Ballroom

Wednesday, May 6 BREAKFAST BUFFET 7:30 – 9:00 a.m. Mt. Temple Ballroom 36 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 37 2015 IBAA Convention – The EVENTS

Trade Show This is a one-stop-shop of organizations who serve insurance brokers and their clients. Make the most of this opportunity to find out what’s new in their world and to let them know how they can help you in yours. Collect trivia at each booth for your entry to win great prizes. Speaking of prizes, there will be many prize draws throughout the trade show … you must be present to win. Hospitality Night Whoever said this industry wasn’t all fun and games, surely hasn’t attended hospitality night. Connect with industry partners and peers in a relaxed, social, fun, game-playing atmosphere. The evening will be topped off with a dance Peace Hills Party hosted by PYIB featuring its own “brokers by day - DJs Catch up with old friends and make new ones at what is by night” Barry Haggis and Caleb Maksymchuk. the official, unofficial kickoff to the IBAA convention. AGM Attend the IBAA annual general meeting and find out what issues are impacting brokers in Alberta and across the country. Be an active participant in voting for your IBAA leaders and on association business. President-elect Robyn Young will officially assume her new role.

President’s Gala Masquerade Golf Tournament

Don your Break out the plaid and enjoy a round of “friendly masks and competition” at the Golden Golf and Country Club. embrace the Transportation is provided between the Chateau power of and the golf course, departing mystery at at 10:30 a.m. this grand affair; however, don’t hide your appreciation and support of your newly minted IBAA president Robyn Young. MC’d by Wayne Lee, the evening will culminate with a mind-bending, inter- active and fun experience with illusionist Sheldon Casavant. Bring your own mask or borrow one from IBAA.

38 The Alberta Broker April - May 2015 2015 IBAA Convention – The EXHIBITORS

BOOTH # BOOTH #

66 AGENCY REVOLUTION 59 IFS FINANCIAL SERVICES 10 APPLIED SYSTEMS CANADA 44 & 45 INSURANCE BUREAU OF CANADA 7 APRIL CANADA 58 K & K INSURANCE GROUP CANADA 36 AURORA UNDERWRITING SERVICES 6 KEAL TECHNOLOGY 13 AUTOGLAS MAINTENANCE 60 LONGDOWN EIC RISK CONSULTING 69 AVIVA CANADA 62 NATIONAL BROKERAGE SERVICES 24 BMO BANK OF MONTREAL 18 NAUTIMAX 51 BELFOR PROPERTY RESTORATION 67 NIRIX 38 BlueC 802 19 OPTA INFORMATION INTELLIGENCE 31 BROVADA TECHNOLOGIES 3 PAL INSURANCE BROKERS CANADA 14 BURNS & WILCOX CANADA 12 PAUL DAVIS SYSTEMS CANADA 49 CANADIAN HAIL REPAIR 25 PEACE HILLS INSURANCE 1 CAN-SURE /BEACON UNDERWRITING 15 PEAK INSTALLATIONS 11 CHUBB INSURANCE COMPANY OF CANADA 32 PEMBRIDGE INSURANCE COMPANY 46 CHUTTER UNDERWRITING SERVICES 34 POLICY WORKS 50 CREECHURCH INTERNATIONAL UNDERWRITERS 42 POWERSOFT DEVELOPMENT 4 CRYSTAL GLASS 43 PREMIER MARINE INSURANCE MANAGERS GROUP 39 CSIO 37 PUROCLEAN CANADA 26 CSN COLLISION CENTRES 70 PYIB 61 CUNNINGHAM LINDSEY CANADA 64 RAINBOW INTERNATIONAL 40 CUSTOM SOFTWARE SOLUTIONS 47 SERVICEMASTER OF CANADA 71 DAMAGE CONTROL PRO 9 SGI CANADA INSURANCE SERVICES 55 DAS CANADA 52 SHARP 41 DKI CANADA 20 SOUTH WESTERN GROUP 5 ECHELON GENERAL INSURANCE 68 SPECIAL RISK INSURANCE MANAGERS 21 ECONOMICAL INSURANCE 48 SPECS 53 ENCON GROUP 22 SPORTS & FITNESS INSURANCE CANADA 57 ENTERPRISE HOLDINGS 17 SUM INSURANCE 33 FIRST INSURANCE FUNDING OF CANADA 8 SWISS RE CORPORATE SOLUTIONS 56 FRANK COWAN COMPANY 30 THE GUARANTEE 63 GEM INC./ EUROSHIELD 27 TOTTEN INSURANCE GROUP 23 GENERAL INSURANCE OMBUDSERVICE 16 TRAVELERS CANADA 54 GUARDIAN RISK MANAGERS 28 WAWANESA MUTUAL INSURANCE 2 HAGERTY COLLECTOR CAR INSURANCE 35 WINMAR PROPERTY RESTORATION SPECIALISTS 72 IBAA PD 29 ZYWAVE

The Alberta Broker April - May 2015 39 IBC Insight Bill Adams Deep Impact Why the Alberta Economy Needs Our Industry

40 The Alberta Broker April - May 2015 The strong contribution that companies, but we’re characterized by industry need to know—information brokers make to communities is well small, local businesses all across this that Alberta consumers, business leaders known, as is the role they play in province. Keep these numbers in mind and decision-makers need to hear providing service and protection the next time you hear someone talking from us, especially now. to their customers. But what about about insurance as a large, faceless, brokers’ contribution to the broader impersonal industry. Bringing Growth and Good Alberta economy? News to a Lagging Economy What’s Made in Alberta With the recently released report Stays in Alberta These are difficult times for our INSURECONOMY, commissioned province’s economy. Declining global by Insurance Bureau of Canada, we The INSURECONOMY report oil prices are taking their toll, leading have a much better sense of this also indicates that for the P&C Albertans to once again ask if our broader contribution of brokers and insurance industry, the money made in fortunes are too tied to natural of the insurance industry in general. Alberta stays in Alberta. resources. This report, which is a summary of For every dollar of premium collected It’s a good time to point out that work done by the Conference Board by P&C insurers in our province, 80 insurance is a stable industry that of Canada and Jupia Consultants, cents is spent within the province, makes an important contribution looks at the entire insurance industry’s either directly through operating and has a large economic footprint. economic contribution to the province. costs such as payroll and facilities, or Beyond that, we are an industry with It’s a very good news story, not just indirectly through claims payouts to growth potential and an industry that, for our industry, but for the province businesses such as body shops, law as part of the broader financial services of Alberta, particularly during the firms and medical practitioners. sector, can help boost our economy in current difficult economic times. It’s a Compare this to so much of the good times and in bad times. story everyone who works in Alberta’s other purchasing that consumers do— When interviewed for the property and casualty (P&C) insurance TVs, clothes, going to the movies. INSURECONOMY report, nine should be very proud and vocal about. Most of the money from those and out of ten P&C insurance companies other similar purchases leaves the and eight out of ten insurance brokers An Industry That Is Local province to fuel economic activity rated the business environment in and Far-Reaching elsewhere. Alberta as good or excellent. Similarly, 86% of brokers and 75% of insurers Let’s start by seeing how much you The Large Economic Footprint rated business prospects as good or already know about the insurance of the Broad Insurance Sector excellent. Six insurers said they planned industry in Alberta: to expand their employment in the What percentage of insurance Looking more broadly now, here’s next one to three years. businesses in Alberta has fewer than another question: 10 employees? Including life/health and P&C, The Direct and Indirect The answer is more than 75% (97% how many insurance businesses are Impact of P&C Insurance on have fewer than 50). there in the province? the Economy Here’s another one: There are more than 1900, and they Which municipality in the province employ more than 17,500 Albertans. The INSURECONOMY report has the highest per capita insurance About 9200 of these jobs are with shows that Alberta’s P&C insurance industry employment? insurers themselves, and the remaining industry makes a strong direct and Are you thinking Edmonton? Not 8300 are in agencies, brokerages and indirect economic contribution to the quite—it’s second. Calgary? No, it’s other insurance-related businesses. province. eighth. And we’re growing. The total number The Conference Board of Canada The correct answer is High River. The of insurance industry businesses in estimated that P&C insurers generated rest of the top nine are Lethbridge, Alberta rose by nearly 22% between 2004 11,600 jobs across Alberta, which Lloydminster, Lacombe, Okotoks, and 2013. And the rate of insurance includes both direct and related Strathmore and Medicine Hat. industry employment rose 17% during supply- chain employment. In addition, The bottom line is that our industry the same period. insurance brokerages, agencies and has at least one insurance business in There’s much more great information related services provided employment each of 145 Alberta communities. in the INSURECONOMY report, for another 11,700 people. We’re an industry with some large information that the employees of the continued on page 42 The Alberta Broker April - May 2015 41 continued from page 41 decision-makers at a reception or your BILL ADAMS P&C insurance jobs are good, well- kids’ friends who are just entering Vice President, paying ones, with an average annual the workforce and trying to choose a Western & Pacific, salary of nearly $62,000. Average career path. Insurance Bureau of Canada wages for the insurance industry in the It’s information Albertans need to province rose by 45% from 2004 to hear, now more than ever. 2012. Our industry’s contribution to GDP is also very strong. In 2012, the P&C insurance industry in Alberta contributed $757 million to real GDP. Also significant is our economic multiplier or our ripple effect. The economic multiplier for our industry is 2.3, which means that including the direct, indirect and induced impacts, $1.74 billion in provincial GDP was attributed to P&C insurers in 2012. Insurance brokerages, agencies and related services generated another $1.52 billion worth of GDP, for a total annual industry GDP impact of $3.26 billion in Alberta.

Our Collective Challenge

The INSURECONOMY report also discusses a few challenges facing our industry. Here’s one I’d like to highlight: “The industry doesn’t do a good enough job promoting itself as offering good career opportunities. Nor does it spend enough time focusing on the important role of the industry among the general public.” This report gives us the opportunity to correct this problem, with information we can use to talk about our industry’s role in Alberta’s economy. So I encourage you to read the INSURECONOMY report. And I encourage you to use it when you talk about our industry. It’s available at www.insureconomy.ca. Take a few nuggets of information, whichever ones resonate for you, and add them to your bank of knowledge. Have them at your disposal when you’re talking to people about the work that you do—whether you’re talking to friends over dinner, 42 The Alberta Broker April - May 2015

The Western Hockey League has launched the Hockey Equipment Brokers Boost Safety Manual made possible by the sponsorship of insurance brokers’ association members in western Hockey Equipment Canada. “The Insurance Brokers Association of Alberta (IBAA) and its members Safety are proud to sponsor a program that helps keep Canada’s hockey playing children safe from injury as they enjoy By Trudy Lancelyn our country’s most popular sport,” says George Hodgson, IBAA CEO. The program consists of a series of videos, in which Steve “Hilty” Hildeb- rand, assistant general manager of the Saskatoon Blades, demonstrates the proper fit of hockey gear. A manual in downloadable PDF format accompanies the videos. The materials are freely available for anyone to use. They can be accessed at www.whl.ca and at the website for the sponsorship: www.bestinsurance. ca. They are easy to follow for anyone interested in learning more on their own, or they can be used by a coach or manager as training aids for an equip- ment clinic for a group. Brokers can promote safety and risk management by passing these resources on to parents and coaches in their communities. Hildebrand was trainer and equipment manager for about 20 years prior to taking the assistant GM job. “When the league approached me, I jumped at the opportunity. With two kids of “Having a my own [who appear in the video], I know how important it is to have the conversation right fit for every kid. There are many with your injuries that can be prevented with equipment that fits properly. brokerage clients “Take helmets. They’re such an about hockey important piece of equipment. We equipment safety only have one head.” is a great gateway continued on page 46 to other risk-management topics.”

44 The Alberta Broker April - May 2015 continued from page 44

Wearing a helmet is mandatory for everyone who plays registered hockey. When worn properly, a helmet certifiedby the CSA Group can help to protect against serious head injuries. Hockey helmets are intended to help reduce the risk of serious injury to your skull and brain. No matter the level of play, kids play hockey to have fun and getting hurt is not fun. All too often injuries could have been prevented with proper fitted equipment. Medical professionals studying childhood injuries agree that the solution is not to take kids out of sports. It’s important to keep kids active, whether in organized leagues or in informal play, but kids also need instruction in the proper fit of equipment for any sport. Hockey’s evolution can be seen in its equipment. Back in the days of the “original six” NHL teams, helmets were unheard-of and the pros seemed to accept their is sometimes sacrificed in favor of a In an Environics survey in 2012, missing teeth and facial scars as badges good price. a strong majority totally (46%) or of honour. As pro hockey expanded, “Equipment is such an individual somewhat (38%) agreed that hockey and amateur hockey increased in popu- thing,” Hildebrand says. “Some kids is a key part of what it means to be larity, parents were looking for improve- aren’t particular about their equipment; Canadian—a sentiment that is ments to protective equipment others are. Some parents will trending upward. for their kids. In the 1960s the Amateur automatically buy the most expensive, Two-thirds of the adult population Hockey Association of the United assuming that it will be the most of Canada follows the game, with one- States and the Canadian Amateur comfortable, and that’s not always the quarter (24%) saying they consider Hockey Association established rules case. Others get hung up on how themselves to be “huge fans” and requiring helmets and the NHL expensive hockey can be and go looking additional 42% saying that they watch followed in the 1980s with regulation for deals. There are some good second- hockey on TV occasionally. mandating helmets. hand shops and the best-fitting and There are a half million players Today’s players—pro and amateur— most comfortable equipment doesn’t enrolled in Hockey Canada teams and are bigger and faster than those of 40 have to be the most expensive. Some many more who play informally. The years ago. Body protection has evolved parents will go into sport shops and WHL sees the Hockey Equipment to meet the demands of the sport and leave it to the sales staff to guide them; Safety Manual as an informative that doesn’t guarantee that they’ll end it has become more specialized with a document for new and developing up with the right fit either. Parents variety of protective equipment options players. Hildebrand hopes to see the should educate themselves so that they geared to the level of play in a variety of WHL Hockey Equipment Safety can assess what salespeople and their price brackets. videos and manual get used widely own kids are telling them.” This is particularly challenging for by as many coaches and parents as amateurs who have to buy their own Having a conversation with your possible. “They’d be great for a team- equipment and for parents whose kids brokerage clients about hockey equipment building pizza night with coaches, quickly outgrow it. Younger players safety is a great gateway to other risk- players and parents all viewing them often use equipment that has been management topics. together at the beginning of a season,” handed down or bought from consign- For most Canadians, hockey is much he says. ment stores or used equipment retailers more than just a sport, it’s part of our to reduce costs. Proper fit of equipment national identity. 46 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 47 Influence With Ease Jeff Mowatt I Don’t Seem to

Fit in at Work How to build better relationships with co-workers

48 The Alberta Broker April - May 2015 Occasionally when I’m interviewing idea how competent or inept you are. a client’s employees in preparation for Better to say ‘no’ upfront or tell them a seminar, someone will confide that exactly (realistically) when it will be while they enjoy dealing with external done, than to give a vague commitment. customers, the real stress is dealing Of course the challenge is once you with their internal customers: their make that promise you need to keep co-workers. With the various friendships it—no matter what it costs you. In and cliques that naturally spring-up in workplaces where some people dodge the workplace, some employees may tasks, the simple act of keeping your have a hard time fitting-in. Ironically, promises will earn your coworkers’ trying to fit-in is the last thing they trust and respect. should do. If you or a colleague have Here’s a tip if the person making ever felt like you just aren’t connecting unrealistic demands happens to be with the people you work with, here your boss (or bosses). Once a week are five tips for building better send them a written overview of your workplace relationships. projects and priorities for the coming week. Pro-actively ask them for input 1. Change your expectations for anything you should re-prioritize. Odds are, you may have a few co-workers who are so different from you in their attitude, upbringing or “ Why fit in value system that if you didn’t work with them, you wouldn’t choose to when you were have anything to do with them. Perhaps born to they feel the same way about you. So, stand out?” trying to win them over as friends is likely going to be interpreted as disingenuous and therefore will be – Dr. Seuss futile. Instead, think of your relationship goal not as trying to become their buddy; but, instead, to become their trusted adviser for your area of expertise. 3. Be a positive influence Consider the relationship between To help create a constructive medical specialists and patients. As atmosphere, frame your commitments patients, we don’t expect cardiologists positively. For example, rather than to phone just to chat about movies. saying to a co-worker, “I won’t be able We may only interact with them once to send it to you until tomorrow,” or twice, then never again. Yet we feel instead say, “You’ll receive it within 24 a strong bond because we see them as hours.” The positive wording makes trusted advisers. At work, your day will you sound less like a whiner and more be easier if you expend less energy like a problem solver. trying to become best friends with Speaking of whining—don’t. Generally, your colleagues and focus more on people at work are just being polite satisfying their needs as a trusted when they ask, “How are you?” They adviser. don’t really want to hear about your aches or lamentations about traffic. 2. Manage their expectations Nor do they want to hear jibes about One thing sure to frustrate and other departments, customers or your alienate coworkers is to be wishy-washy employer. If you have a concern with a about delivering on your commitments. person at work, talk with that person Saying “I’ll try” or “I’ll do my best” is essentially revealing that you have no continued on page 50 The Alberta Broker April - May 2015 49 continued from page 49 directly. Keep it positive and professional.

4. Don’t be a martyr In today’s workplace, no one cares if you arrive earlier or stay later than your colleagues. What really matters is if you get your work done and make a significant contribution. Once you’ve done that for the day, go home and focus on your relationships with your own friends and family.

5. Attend the picnic Anytime management spends money to finance a company social event, their goal is to improve morale and cohesiveness. So, if your employer stages a non-work get-together a couple of times a year, be sure to show-up. You don’t have to stay to the end. Just circulate and ask a few people about their families and life outside of work. Keep it pleasant and positive and then go home. Bottom line—you have no control over whether certain people at work are going to like you. Some may not because your name reminds them of a kid they disliked back in grade school. Fortunately, you do have control over the things you say and do, which will gain their trust and—even if grudging —respect. That’s life as a grown-up. Cut yourself some slack, do your job, then go home to family and friends who love you.

Jeff Mowatt is a customer service For more tips, training tools or to strategist, award-winning speaker and inquire about engaging Jeff for your team bestselling author. visit www.JeffMowatt.com

50 The Alberta Broker April - May 2015

Professional Development Diana Dai

As many of you are aware, IBAA is Convention is filled with stimuli and bringing you the next and information. What is worth greatest convention at the consideration when you return to breathtakingly beautiful work? You won’t remember it Lake Louise in May. all, so try to summarize each The convention provides presentation and take away a great opportunity ONE central point. I could to learn, to connect be a tip that you can apply and to have fun. immediately to your What can you work or could be a do to get the Getting statement that most out of the elicits an ah-ha convention? moment relating Here are some the Most to a current tips I would challenge. After like to share the convention, from my past review your notes. experience and VALUE Separate what you’ve from the research learned into I did on the topic. Out of the knowledge or action items. These action Know the best way to items are crucial. Don’t let waste your company’s time Convention them sit for too long. Act on and money? Go to a conference them. Share any new knowledge without having any goals. you have gained from the convention —Brittany Leaning with your colleagues. Together, you might also consider ways these knowledge What is your purpose? items might be turned into action items. Now, you have decided to invest money and three days of your valuable It’s not what you know; time to be part of the convention, what it’s who you know do you want to get out of this convention? Convention is a fertile ground to make a. To learn? collected? Old relationships rekindled? connections and explore collaborations. b. To network? New ideas gained? New contacts/friends You can use our convention app to reach c. To be seen? made? Now you know what your ROI out to other attendees before you even d. To identify business opportunities? (return on investment) is. arrive. If you don’t know who to connect e. To have fun? with, the app has a list of attendees you f. All of the above? Learn. Digest. Summarize. can browse in order to help you plan. Act. Share. I came across an interesting article by We have a fantastic lineup of speakers Do you have an elevator introduction? Brittany Leaning “Conference Attendees: and entertainment, including keynote Prepare one if you don’t. In 30 seconds How to Get the Most Bang for Your speaker and Canada’s most awarded or less, you should articulate who you are Buck” where she distinguishes seven male country artist in history Paul in such a way that you capture the other different types of conference attendees: Brandt, hypnotist Wayne Lee and person’s attention. Most often, your learner, networker, content creator, job illusionist Sheldon Casavant. We also conversations with a new contact end seeker, salesperson, brainstormer and spy. have Gradient Solutions’ Sean Mulcair with a business-card exchange. What are Which category/categories do you fit? to share his insight on customer you going to do with the gazillion cards You can find a comprehensive checklist experience as well as CSIO’s Sarina you collect? Try separating them into for each category of conference attendees Visram and Hans Gantzkow to discuss three piles: in her blog. With your purpose(s) in how your brokerage can reduce cost, 1) follow-up business opportunities mind, set measureable objectives for engage customers and grow with 2) store for future possibilities yourself. The number of business cards technology. continued on page 54 52 The Alberta Broker April - May 2015

continued from page 52 April 11, 2015 to More classes IBAA Courses June 26, 2015 at ibaa.ca 3) discard—you didn’t want to say “no thanks” to them. CALGARY COURSES The first group is the most important, April 11, 18, 25, May 2 CAIB 2 Fast Track so write down the specifics. How did April 13 –17 Licensing Level 1 Immersion you meet? What triggered your interest? What is your intended action? April 23 (a.m.) Residential Building Construction: An Insurance Perspective April 23 (p.m.) COPE-ing with Commercial Building Construction Sometimes the greatest benefits are May 12 (a.m.) Business Interruption accidental. If the conversation during May 12 (p.m.) Condo Coverage: Corporation and Owner your trip to the refreshment table spells May 26–29 Licensing Level 2 Immersion opportunity, don’t feel pressured by the June 2 (a.m.) Old MacDonald Had a ..? Farm? The Farm That Is Not a Farm convention structure. The ultimate goal of June 2 (p.m.) Foundation of Comercial Liability the convention is to create professional June 22–26 Licensing Level 1 Immersion opportunities for all attendees. EDMONTON COURSES Make sure you seize that unexpected opportunity. Don’t leave all to chance April 11, 18, 25, May 2 CAIB 2 Fast Track though. According to Scott Belsky April 14 –17 Licensing Level 2 Immersion (“Five Tips for Making the Most of a April 21 (a.m.) Residential Building Construction: An Insurance Perspective Conference”), many frequent conference April 21 (p.m.) COPE-ing with Commercial Building Construction goers claim that their greatest conference May 11–15 Licensing Level 1 Immersion experiences happened during the May 21 (a.m.) Business Interruption “downtime.” Reach out to your contacts May 21 (p.m.) Condo Coverage: Corporation and Owner beforehand and propose grabbing an June 4 (a.m.) Old MacDonald Had a ..? Farm? The Farm That is Not a Farm early breakfast, lunch or drinks together June 4 (p.m.) Foundation of Comercial Liability during the conference. Encourage your contacts to invite 1–2 people that they June 16 –19 Licensing Level 2 Immersion deeply respect, thus broadening the RED DEER COURSES potential of the meeting. April 22 (a.m.) Residential Building Construction: An Insurance Perspective Know your ROI April 22 (p.m.) COPE-ing with Commercial Building Construction Effective As mentioned earlier, you need to set measureable objectives for yourself WEBINARS so you know the return on investment. April 14 Commercial Lines Account Renewal Processes These might be the business pursuits May 19 Business Interruption noted above, the ability to obtain about half of your yearly required CE credits May 21 Customer Service Tune Up or the opportunity to combine business June 9 Getting Started in Commercial Lines, Part 1 with pleasure at Lake Louise and the June 11 Getting Started in Commercial Lines, Part 2 Golden golf course. Come for the June 16 Getting Started in Commercial Lines, Part 3 business opportunities. Relax with the June 18 Getting Started in Commercial Lines, Part 4 beautiful surroundings. June 25 Errors & Omissions DESIGNATION EXAM

DIANA DAI May 20 Designation Exam Director of Professional Development, IBAA CAIB Online Discussion Group www.ibaa.ca [email protected] NEW: 54 The Alberta Broker April - May 2015 The Alberta Broker April - May 2015 55