THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0
REPORT File No. 100.69 To: Tom Kadla, Chief Administrative Officer From: Jeremy Sundin, Director of Finance Date: December 7, 2015 Subject: Casualty & Property Insurance
RECOMMENDATION That Council authorize staff to proceed to renew the Village of Lumby casualty and property insurance policy for 2016 with its incumbent broker, Capri Insurance Services Ltd.
BACKGROUND The Village of Lumby requires casualty (crime, board members accident, conflict of interest) and property insurance (equipment breakdown and buildings, contents and equipment – including mobile equipment). For the last 16 years Capri Insurance Services Ltd. (Capri) has been the broker that the Village has worked with to obtain these insurance policies. On January 1, 2015 the Municipal Insurance Association of British Columbia (MIA) who is the provider of the Village’s liability insurance, announced that it would begin offering casualty and property insurance services. The MIA has also expressed interest in quoting the Village of Lumby for its casualty and property policies, and so during the year Village staff provided the MIA with the information necessary for them to generate a quotation. In November 2015 both Capri and MIA provided their quotes to the Village.
DISCUSSION & ANALYSIS The same schedule of assets and values was provided to both brokers, and as expected the policies / coverage (limits) and deductibles provided by both brokers are the same or similar. A few noted differences are as follows:
MIA requires a three (3) year commitment; Capri makes no reference to any commitment; MIA does not include conflict of interest coverage; Capri’s policy covers legal fees to $100,000 per claim for conflict of interest coverage; MIA does not include the accidental death of a spouse while travelling on business; Capri policy includes this coverage.
There have also been no recent casualty or property claims to enable current staff to rate the experience with the incumbent.
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
The premiums are approximately $500 apart, with MIA being the lower quotation. However with a three (3) year commitment it is unclear whether MIA would increase its premiums at greater rate than Capri would over that term.
Considering the above information the decision may be more philosophical that financial. Capri is a for- profit entity, established in this field of insurance, with whom the Village has been dealing with for 16 years. See Appendix 1 – Capri Insurance Services Value Proposition.
The MIA however is member owned and not-for-profit, which the Village has been dealing with for many, many years with respect to its liability insurance policy. See Appendix 2 – Municipal Insurance Association Value Proposition.
The reason staff recommends renewing with Capri for 2016 (future renews may not have the same recommendation) would be to allow staff to gather input from those communities who have switched to the MIA (2015 was the first year they entered the market to offer these insurance products/services). Information such as claims experience, premium rate changes and other pertinent information may be useful to better understand the implications of any change in provider. Staff is prepared to request another quotation from MIA for the Village’s 2017 renewal so Council can have the opportunity to assess the situation again.
BUDGET & COST IMPACTS The impact on the financial plan (budget) from either decision is negligible. The MIA’s year 1 quotation is approximately $500 less than the quote from Capri, which is a relatively negligible in reference to the Village’s overall budget.
CONCLUSION The incumbent has provided good customer service over the last 16 year for which they have been the Village’s casualty and property insurance broker. The policies, premiums and deductibles proposed by both the MIA and Capri are similar to the point where there is little to distinguish them apart. As such Council may want to consider other factors. It is the recommendation of staff that Council direct staff to renew the 2016 casualty and property policy renewals with Capri Insurance Services Ltd. Staff would then go through the information gathering and quotation process for 2017 to again assess whether it would be more advantageous to switch or remain with the current broker.
Respectfully submitted,
Jeremy Sundin Director of Finance
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Appendix 1 – Capri Insurance Services Value Proposition
Value Proposition for Insurance Broker Services Public Entity Division
Prepared By: Paula Garrecht, CIP, CAIB 100-1500 Hardy Street, Kelowna, BC V1Y 8H2 Toll Free: 1- 800-670-1877 Direct: 250-869-3804
Email: [email protected]
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
The Capri Advantage
Since 1975 we have become one of the largest insurance brokers in Western Canada serving our 100,000 clients with over 280 staff in 11 offices. Our company is licensed in British Columbia, Alberta, the Yukon and Northwest Territories, with annual sales in excess of $250 million. We have grown substantially over the past 40 years because we have stayed in tune and responded to the need for service and convenience.
We handle commercial insurance - so do lots of others. Our big advantage is quality service and specialized knowledge.
INTEGRITY. We conduct business with integrity and Values honesty. This permeates our entire corporate culture, and as far as we are concerned, the only way to do COMMITTED. As an independently owned insurance business. brokerage, we are committed to providing our clients with quality service and specialized knowledge. We believe our success over the past 40 years is directly related to our commitment to client service, convenience and innovation.
ADVOCATES. Our team includes adjusters and a mediator that work on your behalf when a loss occurs. Our claims department is geared to respond by handling claims with efficiency and sensitivity 24 hours a day.
PROFESSIONAL. We invest in continuing education for our staff and our clients as a means of delivering the best available risk management, financial and insurance services to our clients.
RESPONSIBLE. We invest in technology to reduce the overhead for insurers and ourselves, which enables us to reward our clients with competitive products while maintaining a high level of personalized service.
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report Locations
KELOWNA LAKE
COUNTRY
VERNON
WEST KELOWNA
PENTICTON
KAMLOOPS
PRINCE GEORGE (Carson Insurance Brokers Ltd)
AURORA, ONTARIO (Intercity Insurance Services)
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Additional Services
GROUP WEALTH MORTGAGE BENEFITS MANAGEMENT BROKERING
Our group benefits division arranges Our wealth management division We provide mortgage brokering life, disability and dental insurance provides individual and corporate services with specialists in for individuals, groups and other clients with a complex spectrum of Kamloops, Penticton, Kelowna, related financial services, including personal and corporate financial Vernon, West Kelowna and pension plans. Additional options planning services. This includes Vancouver Island. We have access include critical illness, medical retirement investments, income tax, to all the major banks and literally reimbursement, and health care mutual funds, GIC’s, RRSP’s, hundreds of other lenders and we will spending accounts, as well as a RRIF’s, pensions, and estate find the best products and services to variety of alternate benefit solutions. planning. suit your needs.
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Property Coverage includes: Replacement Cost No Co-Insurance clause No Margin Clause No Same-Site requirement for rebuilding Blanket Limit of insurance is provided for any one loss. Not limited to the amount shown on Statement of Values for each location. No appraisals required for Blanket coverage Covers all property owned by the Insured, whether or not we are aware of it. Property that is specifically excluded is listed and identified as such. Full policy limits for property in Transit and Off-premises. Bylaws and Debris Removal included to the policy limit. Program minimizes potential for underinsured and/or uninsured losses Liability Coverage includes: o Limits up to $25,000,000 readily available o Limit is per occurrence, no annual aggregate limit o Wrongful Dismissal (legal expense) included o No exclusion for sexual, physical or mental abuse o No exclusion for Water Ingress/Building Envelope claims o Errors & Omissions/Directors & Officers Liability combined form o E&O includes full policy limit for administration of Employee Benefit Program o Broad Definition of Insured: includes Officers, Employees and Volunteers Environmental Liability available: o No engineering reports for landfill sites and underground tanks o Broad coverage, not restricted to Sudden & Accidental incidents o No restrictive reporting requirements o Claims-made coverage o Limits up to $5,000,000 readily available Crime Coverage includes: o Commercial Blanket Bond (Employee Dishonesty) $1,000,000 Limit o Money Orders, Counterfeit Money and Depositors’ Forgery included o Money and Securities – Blanket any Location $200,000 o Computer Fraud or Funds Transfer Fraud $200,000 o Audit Expense $200,000 o No deductible applies under the crime insurance Equipment Breakdown o Includes electronic equipment o Includes production machinery o Only one deductible applies if loss is covered by Property & Equipment Breakdown o High Property Damage limits
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Accident Insurance available: o for Mayor, Council and Board Members while acting within the scope of their duties, including all travel required. o Covers up to age of 80 Policy coverages are considered “The Industry Best” Program is available exclusively through Capri Insurance Detailed insurance report accompanies quotations and renewals Value-added risk management services are included at no cost, including: o Liability Hazard Assessment o Building Valuations o Seminars and Staff Training o Contractual review o Publications, Bulletins, on-line access to Risk Management Centre of Excellence o Claims Management and Claims Advocacy
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
CAPRI ADDITIONAL VALUE
We specialize in Public Sector and Municipal Insurance. We understand the Public Sector. We follow trends and developments and customize our coverage and service to provide you with the best in our industry. Your account servicing team will be led by Paula Garrecht and supported by administration, claims staff and a backup account representative. Prompt, detailed, effective responses to all requests for information. Detailed premium breakdown provided with all invoices for your departmental allocation. We will collaborate with you every step of the way. We have on staff our very own Claims Advocate and Mediator to ensure that you get the best possible service and settlement in the event of a claim. We provide contract risk management (reviewing your contracts and providing advice on insurance or risk management solutions). We provide a full range of Construction Insurance Services and work closely with you and your construction advisors to ensure that the municipality’s interests are properly protected. We can provide Excess Automobile Liability to supplement the limits you currently carry with ICBC. We can provide full Environmental Impairment Liability, including landfills, salt storage and fuel storage tanks. Exclusive access to the Frank Cowan Company municipal program, including their Risk Management Centre of Excellence (on-line risk management resource library). Risk inspections and valuation reports on all insurable buildings and structures are provided by the Frank Cowan Company at no additional cost to you.
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report CURRENT LIST OF MUNICIPAL CLIENTS
City of Armstrong City of Enderby City of Fort St. John City of Kelowna City of Nelson City of Penticton City of Quesnel City of Rossland City of Salmon Arm City of Terrace City of Vernon City of West Kelowna District of Clearwater District of Houston District of Invermere District of Lake Country District of Logan Lake District of New Hazelton District of Port Edward District of Stewart District of Summerland District of Taylor District of Wells District of Coldstream Regional District of Central Okanagan Regional District of North Okanagan Regional District of Okanagan Similkameen Regional District of Bulkley-Nechako Town of Oliver Town of Osoyoos Town of Smithers Village of Clinton Village of Fruitvale Village of Hazelton Village of Kaslo Village of Keremeos Village of Lumby Village of Midway Village of Montrose Village of Nakusp Village of Radium Hot Springs Village of Valemount
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Our Team
Paula Garrecht, CIP, CAIB
Commercial Lines Producer
Paula is a Partner of Capri Insurance and a Broker specializing in Municipal and Construction insurance. She has 36 years experience in the industry, including 15 years as Capri’s Claims Manager, and the past 9 years as Team Leader of our Public Entity Division. Paula is a member of the Government Finance Officers Association of BC, the Water Supply Association of BC, and the Southern Interior Construction Association. Her clients include all levels of Local Government, Contractors, Developers, Stratas, Real Estate Owners, Marinas, Not for Profits and various service industries.
Lorelei Widmann
Assistant to Paula Garrecht Lorelei has recently returned to Capri Insurance from Calgary AB. She brings with her 12 years of Commercial and Personal Lines experience. She is a Canadian Accredited Insurance Broker (CAIB) and is currently working on obtaining her Chartered Insurance Professional (CIP) designation.
THE CORPORATION OF THE VILLAGE OF LUMBY 1775 GLENCAIRD STREET LUMBY, B.C. V0E 2G0 Casualty & Property Insurance Report
Karen Harris Assistant to Paula Garrecht Karen is a returning employee who has 21 years of Insurance experience, both as a broker and an underwriter. She is a Canadian Accredited Insurance Broker (CAIB) and Chartered Insurance Professional (CIP). Karen works closely with Paula and Lorelei as a Commercial Lines assistant.
Robin Durrant
Chairman
Robin started his insurance career in 1965 with Eagle Star Group in Ipswich, England and transferred to Vancouver, BC in 1967. He represented Eagle Star in Vancouver, Edmonton, Toronto, and London, Ontario in marketing underwriting and loss prevention. Robin joined Capri Insurance in 1976 and obtained his Canadian Certified Insurance Broker Designation in 1984. Former President and Chief Executive Officer, Robin is now the Chairman of Capri and provides leadership and stewardship to the rest of our team.
Mike Churko Claims Advocate Mike joined our Claims Team in 2010 as a specialist to expedite claims on behalf of our clients. He has been in the insurance claims field since 1977. His experience includes various positions, including Claims Manager, with ICBC. He has been an independent Licensed General Adjuster since 2007 and has education and experience in conflict resolution and civil mediation.
Trish Anderson Director of Commercial Marketing Trish has been a part of our Commercial Marketing Division since 2001. She has been successful in the placement of a wide variety of commercial accounts including construction, manufacturing and real estate. She has also been instrumental in developing and placing national and provincial programs on behalf of Capri. Trish has been a licensed insurance broker since 1996, is a partner in Capri, and serves on various boards in the industry
Appendix 2 – Municipal Insurance Association Value Proposition
EXPERIENCE AND QUALIFICATIONS
The MIABC was established on November 26, 1987 as a liability insurance reciprocal with over 140 founding members. We are currently 170 members strong and insure 90% of the local governments in the Province of British Columbia, representing just over half the population. We insure the smallest villages and towns, as well as large cities and Regional Districts throughout British Columbia.
The MIABC is owned and operated by local government and our mandate is to:
• Deliver broad coverage; • Maintain stable rates; and • Provide risk management services and education to our members.
What brought us together over 25 years ago continues to bind us today. The fundamentals of an insurance reciprocal, or pool, remain the same and they are the reason for our success.
Periodically members have requested that the MIABC offer property insurance, as well as other related coverage, to its members. Although these requests were given careful consideration, the MIABC decided to focus its resources on establishing its liability insurance program and building up the financial strength necessary to minimize the need for expensive reinsurance. Over the past 25 years, the MIABC has met these goals and the MIABC is now ready to attend to its members’ other insurance requirements. After extensive consultation with our members, it was apparent that there was significant support for the expansion of the MIABC’s insurance offerings. Expanding our insurance offerings not only meets our members’ needs, but comes at a time when the commercial marketplace is showing signs that it will not provide the stability and breadth of coverage that B.C.’s local governments require, including the following:
• The adoption of global regulatory changes by Canadian regulators is expected to restrict the capacity of Canadian insurers to provide the levels of coverage required, particularly for natural catastrophe risks such as earthquakes. Some insurers have already declined to renew this type of coverage in B.C.; and
• Many local government risks (such as terrorism, cyber risk, and civil disobedience) and property (such as subterranean linear infrastructure) are simply not covered at a reasonable cost, if such coverage is available at all.
The MIABC, through its financial strength and established relationships with global reinsurers, is in a position to address these issues. The MIABC’s pooled business model has been shown to deliver stability, cost efficiency, and unique coverages to its members. As a result, the MIABC membership voted unanimously to amend the Reciprocal Insurance Exchange Agreement to permit the MIABC to develop new insurance products and offer them to its members.
Each proposed product will be placed before the membership for approval, prior to being offered to members. Individual members have the option to accept or decline any particular product ultimately offered to the membership as a whole. Separate pools will be established for each new product, insulating members who do not buy that product from the risks associated with it.
METHODOLOGY AND APPROACH
The MIABC is proposing an alternative solution to meet the Village of Lumby’s need for general insurance and risk management services. The MIABC is offering a well-structured, competitive property insurance program, with superior coverage, financial security, and high quality brokerage services. The MIABC has met these objectives for our liability insurance risk pool, in which the Village of Lumby has been a valued member since 1989. The MIABC is now creating a property insurance risk pool and we invite the Village of Lumby to be a member. Since the launch of the program in October 2014, 31 members have joined the property insurance pool.
A risk pool is a group of organizations that contract with each other to spread the risks and losses inherent in their activities. The pooling effect in practice allows the smallest member to have access to the same resources usually available only to the largest members.
Over 25 years ago a liability insurance crisis brought local governments together to create the MIABC. Since then we have developed expertise in the municipal liability insurance area, with 170 loyal members and a very stable program. The fundamentals of a risk pool remain the same and are the basis of our success. The pooling effect works best when its risks are: • Analogous – similar/alike; • Diversified – spread of risk; and • Uncorrelated – unrelated/unconnected.
Risk pooling works so well that 85% of 100,000 public entities in North America obtain some form of coverage from a risk pool, amounting to $13 to $17 billion in annual premium. Over 500 pools provide coverage for liability, property, auto, worker’s compensation, and various specialty lines.
BENEFITS OF POOLING:
Finances: Members value cost stability and predictability. Insurance is cyclical and very volatile, however, a pool smooths out the ups and downs. This is possible because of member commitment, capital adequacy, and cost allocation. Since the MIABC is not-for-profit, surplus funds find their way back to the member in the form of dividends, premium reductions, and growth of members’ equity. Capital fosters stability and financial returns reinforce long-term commitment.
Pooling also allows us to be less reliant on the insurance market and the volatility that comes with it. It provides us access to reinsurance at a lower cost, gives us the ability to direct investments, and allows us to control claims handling, which is our most significant expense.
Coverage: A primary objective of pooling is to provide members with the coverage they need - pool members decide on the coverage. Risks emerge and evolve and so must coverage even where there is no market to provide it. Our liability coverage and limits are the same for all members. We are constantly expanding our coverage as our members’ needs evolve.
Collegiality: Members are not in competition with each other, and as such, they are very open to sharing experience and information. A pool encourages members to liaise with their peers to discuss common problems and possible solutions, and it also encourages consideration of joint initiatives and pooling of resources.
Risk Management Services: All pools focus on risk management services – sector specific knowledge and experience applied for the benefit of all members.
The MIABC is confident that its property insurance program will benefit from the pooling effect and participating members will enjoy the same benefits they have received from our liability program. The MIABC has a strong mandate from the membership to broaden its insurance offerings. The MIABC is a trusted partner that can be relied upon to provide quality coverage at fair and stable pricing.
THE INSURANCE POLICY
The MIABC has crafted a Property Insurance Agreement that has incorporated some of the best features from the many property insurance policies that we have reviewed. The MIABC’s policy provides: • Blanket coverage for property of every description with no co-insurance requirement; • Coverage for business interruption and loss of income or rents; and • Crime coverage.
These coverages form the basis of the property insurance pool and the policy wording was unanimously approved by our membership at the September 2014 Annual General Meeting. The MIABC’s Property Insurance Agreement provides property extensions and special limits of coverage that are competitive and, in some cases, more generous than commercial policies and loss settlement conditions that are broad and flexible. The coverage provided under the Property Insurance Agreement is insured by the MIABC in a stand- alone pool. In order to provide our members with the convenience of one-stop shopping, the MIABC has incorporated a brokerage arm called Civic Risk Insurance Solutions Inc. (CRIS) and entered into a partnership with Beacon Underwriting and HUB International to obtain any ancillary, excess or specialty coverages that our members require. All lines of coverage will be bundled together and branded as the MIABC property insurance program. The excess, ancillary, and specialty coverages sourced by Beacon Underwriting, who has binding authority agreements with Lloyds’s underwriters and domestic insurers. The insurers that Beacon Underwriting work with are all “A” rated carriers (A.M. Best, Standard & Poors). In addition to risk placement, Beacon Underwriting also provides us with the ability to create insurance products that are developed to meet the evolving needs of our members. The group purchase of the coverages provides us with efficiency in the purchase process that will benefit the membership. Coverage will be placed with the insurer offering the most favourable rates and terms for our members. The MIABC will be the main contact with our members and premiums will be collected by the MIABC. Claims that are covered by the Property Insurance Agreement will be managed by the MIABC Claims Department and all other claims will be reported to the MIABC and handled by external specialists
The MIABC has established long-term partnerships with the largest and most reputable reinsurers in the world. We have over a dozen reinsurers on our liability program including Munich Re, Everest Re, Hannover Re, SCOR Re, and ACE, to name a few. The MIABC property insurance program is supported by Munich Re, Hannover Re, Everest Re, Swiss Re and CCR.
The insurance industry has undergone several mergers and acquisitions and is now dominated by a handful of major insurers. This contraction has resulted in few choices for consumers, and even fewer choices for local government.
The insurance business is cyclical in nature and the market “softens” and “hardens” for various reasons. Market conditions are influenced by many factors, including world economic conditions, local and worldwide catastrophes, tighter government regulation, insurance company profitability, reinsurance capacity, climate change, and developing trends or risks.
With the exception of certain aggregate issues (i.e. earthquake, wind, flood in various parts of the world) the insurance market is very competitive and rating is “soft”. There is an excess of capacity in the market, which is beneficial to purchasers. Municipalities benefit from this situation to a greater degree than many classes of business as they are viewed to be very desirable by insurers. Municipalities are financially stable, their assets are typically well maintained and up-graded regularly, they are not motivated by profit, they hire professionally trained staff to administer their affairs, and they understand the importance of risk management.
At this time, there is competition in the marketplace for municipal business, however, the MIABC’s venture into the property insurance business will provide an alternative for our members, both in choice and means, in which to obtain insurance coverage.
PRICING
The MIABC is the insurer for the core property insurance coverage and the participating members would be owners of the property insurance risk pool. The MIABC does not have an hourly charge for additional services. Other than the premium quoted, many additional services, including property inspections and appraisals, are included in the premium.
Excess, ancillary and specialty coverages will be sourced by our broker partners, Beacon Underwriting and HUB International at rates favorable to our members.
VALUE ADDED
Risk pooling has many benefits and provides the MIABC with a competitive advantage over traditional property and casualty insurers. The Village of Lumby has received $16,548 in dividends from the MIABC liability insurance program since 2006 and has received $2,850 in risk management grants since 2011. In addition, the Village of Lumby has $3,799 available for new risk management initiatives approved by the MIABC. The MIABC will strive to provide similar benefits to members of the property insurance pool. The MIABC offers a full suite of services to our members which include:
• Property appraisals performed by RMS; • User Group Liability insurance; • Risk management information and education available to all members (scholarships, newsletters, seminars, and workshops); • Recommendations on enhancement to existing coverage and new insurance products; • Accessible and responsive communication with all MIABC departments via telephone and e-mail support; • Claims data analysis to identify trends; • Member Services including liability & property inspections, loss control, risk management services (contract reviews, data mining, policy review) and education; • Policy development for provision of services and legal defense; • Member visits; • Grants to encourage risk management initiatives that lower risk; • Site inspections; • Risk management conferences that bring our members together; • Claims management by experienced liability and property examiners; • Assistance in resolving disputes with insurers as our primary responsibility is to act in the best interests of our members; • Coverage review and explanations; • Member Advisory Groups – member engagement pertaining to MIABC operations and coverage; • Presentations, seminars, workshops, and member visits; • Customized production of brochures; • In-house Legal Department; • Casual Legal Advice; and • Dispute resolution process between the MIABC and member which is outlined in the MIABC Reciprocal Insurance Exchange Agreement (Article 15.0 Dispute Resolution). The objective is to resolve any dispute without acrimony and as efficiently and cost effectively as possible.
RISK MANAGEMENT SERVICES
Risk management has been one of the pillars of the MIABC since the very beginning. Our mission is to contribute to the financial security of our local government members by assisting them to identify and minimize risks, prevent and manage losses, and maximize opportunities for the provision of local government services. The MIABC sends out quarterly newsletters to provide information regarding legal decisions, risk management initiatives and services, new products and services and various claims management issues. The “Ask Ann Slanders” portion of the newsletter invites all members to submit any questions they have regarding risk management issues. The MIABC’s annual two-day Risk Management Conference gives members the forum to discuss risk management subjects with their peers and MIABC staff. The conference provides education and information of various risk management issues that our members face on a regular basis. In addition to this conference, members can request for the Member Services Department to host a regional risk management workshop in their community to provide risk management education to local government staff in that region. These workshops provide information that has a practical focus and fosters discussion, idea sharing and relationship building between members.
In addition to these services, the MIABC also provides the following risk management services to our members: • Telephone and email support; • Brochure service; • Claims data analysis to identify trends; • Policy development for provision of services and legal defense; • Risk Management Grant Program to encourage risk management initiatives that lower risk; • Risk Management Scholarship Program; • Online risk management library available through the MIABC website; • Closed-claim file review; • Site inspections performed by RMS; and • Casual legal advice.
The MIABC is one of only two Canadian members of the Association of Government Risk Pools (AGRiP), which represents over 200 public entity risk and benefits pools and is the recognized authority for public entity risk pooling in North America. The MIABC has been recognized by AGRiP as an industry leader in risk pool management and received AGRiP’s Advisory Standards Recognition in 2011 and 2014.
CLAIMS MANAGEMENT SERVICES
The MIABC Claims Department works closely with its members to resolve claims. The MIABC Claims Department is comprised of four experienced claims examiners, including one that was specifically hired for her property insurance expertise. Designations held by various members of the department include the Canadian Risk Management (CRM), Chartered Insurance Professional (CIP) and Fellow Chartered Insurance Professional (FCIP).
When a claim is reported, the MIABC Director of Claims and Legal Services will review the claim and assign it to one of the claims examiners for handling. The examiner will send an e-mail to the designated contact to confirm receipt and to identify the adjuster or legal counsel assigned, if any.
When a claim is presented to the MIABC, the first step is to investigate. This is accomplished by asking our members questions or requesting internal reports regarding the claim. If the claim is potentially serious, complex, or involves multiple parties, we assign an independent adjuster to conduct the investigation. It may be necessary to obtain statements from the member’s staff or independent witnesses, as well as reports from the police or fire department, and expert’s reports in serious claims. The purpose of the investigation is to obtain the facts surrounding the claim and to quantify the loss or damage. A thorough and accurate investigation is necessary in order to determine liability exposure, and to substantiate the injury or property damage. A complete investigation also helps discourage fraudulent or inflated claims.
Once the necessary information has been obtained and reviewed, we evaluate the liability exposure on the part of our insured. Our decision is based on experience and our knowledge of the current law. If litigation has been commenced, we request our legal counsel’s opinion.
If a claim is denied, the claimant or their representatives (adjuster, lawyer) is sent a denial letter with a brief description of our investigation and conclusion. A copy of the denial letter is also sent to our member. If we feel there is liability exposure, we or our representative will try to negotiate a reasonable settlement and obtain the necessary releases.
If the denial of the claim results in litigation, the MIABC retains legal counsel on behalf of the member and manages the litigation. We use both in-house and outside counsel to defend our members. Most of our small claims matters are defended by our in-house counsel. We are very proactive in the litigation process and continuously look for opportunities to resolve the claim.
The MIABC’s claims management philosophy is very simple:
• If the municipality is liable, we negotiate and settle the claim quickly and fairly; • If the municipality is not liable, we deny the claim and defend the matter vigorously; • If the municipality faces some liability exposure, we negotiate a settlement for our portion and seek contribution from other responsible parties; and • The MIABC does not pay “nuisance claims”, nor do we pay for “economic or financial” reasons. However, we are prepared to compromise if there is “potential” liability exposure
Every three months, the MIABC sends each member a list of all open claims. These lists provide members with reserve information and an invitation to contact the MIABC for updates and information.
Following the conclusion of a claim, Service Evaluation Forms are sent to our members to give them the opportunity to provide the MIABC feedback on the handling on their claims. The MIABC’s CEO personally responds to any concerns raised by our members.
MEMBER RELATIONS
The MIABC considers communication with our members an essential part of our service offering. Communication is a two way street and the MIABC is happy to accommodate the level of communication the member requires. MIABC staff are always available to answer questions from our membership. If members require face-to-face meetings, the MIABC staff will arrange for a member visit as soon as possible.
YOUR TEAM Given the nature of the MIABC’s business, all staff members who provide service to the Village of Lumby have extensive municipal knowledge and expertise. The MIABC has a highly skilled staff of 21 that will be used to provide a wide range of services to the Village of Lumby. Members of the Claims and Legal Services Department, Insurance Department, and Member Services Department have all worked very closely with the Village of Lumby for the past 26 years to provide exceptional risk management, claims handling, and legal services.
Sherman Chow, Director of Insurance, and Marina Sen, Insurance Services Coordinator, will be the main contacts for the Village of Lumby and will work closely with the Village to ensure that all insurance needs are met. The following chart shows the staffing lines and authority for the personnel that serve MIABC members:
Tom Barnes was appointed the Chief Executive Officer and General Counsel in 2005. Tom spent more than ten years at one of British Columbia’s leading insurance law firms. His practice focused on the field of civil litigation concentrating primarily in the defence of municipalities and construction design consultants. In 1991 Tom founded Barnes Craig & Associates, a liability adjusting, claims management and litigation management consulting firm. In that role, he provided many local governments with advice on litigation services. Upon leaving Barnes Craig & Associates, and until his appointment with the MIABC, Tom practiced as a partner at the Vancouver firm of Barnes, Twining & Short. His practice concentrated on the field of insurance litigation. Areas of expertise included municipal liability, professional negligence and insurance coverage advice. Tom Barnes, The MIABC appointed Tom as its Claims Advisor in 1988 and he sat on Chief Executive Officer & its Claims Committee for many years. His advice to municipal clients General Counsel covered policy development, bylaw drafting and the tendering of legal services. In addition to his position as Claims Advisor, Tom performed a number of roles for the MIABC – which included acting as its corporate solicitor, investigating claims as an adjuster, directing claims as a contract claims manager, providing litigation management consulting services, and representing MIABC members as defence counsel. Tom is perhaps best known to MIABC members for his work on the Building Bylaw Project, the largest risk management initiative ever undertaken by the MIABC. The Core Building Bylaw Provisions, which were the Project’s result, have been, or are being, adopted by 90% of the MIABC’s members, as well as many other local governments. Tom is the Vice President of the Association of Governmental Risk Pools (AGRiP), a U.S. – based organization of more than 200 risk pools. Tom graduated from the University of British Columbia in 1978 with a degree in law and was called to the British Columbia bar in 1979.
Sherman Chow is the Director of Insurance. He is responsible for developing and managing insurance products for MIABC members. In this role, Sherman works with members to ensure they have access to the insurance tools, education and programs they need. Sherman has over 25 years of experience in the insurance industry. After more than seven years as a claims examiner for a general property and casualty insurer, Sherman joined the MIABC as a Claims Examiner in 1994. In 2000, he took over the role of Claims Manager, where he remained until his appointment as Director of Insurance this year. Sherman has a Bachelor of Arts degree from the University of British Columbia. He is also a Chartered Insurance Professional (CIP) and holds the Canadian Risk Management (CRM) designation and a Level 1 General Insurance Salesperson Broker’s License. Sherman Chow Director of Insurance
Marina Sen was appointed to the new position of Insurance Services Co- ordinator in April 2014. Reporting to the Director of Insurance, Marina plays a key role in assisting the Director of Insurance in the development and implementation of the property insurance program. In addition, Marina communicates with members, ensuring that they receive timely and accurate responses to their insurance related inquiries.
A six-year employee of the MIABC, Marina started her career in the Legal Department as a legal assistant. In this role, she became familiar with MIABC members by assisting with their legal claims. Marina is a graduate of the Capilano University Legal Administrative Assistant Program where she also obtained paralegal education before moving into the role of Insurance Services Co-ordinator. Marina currently holds a General Insurance Agent Level 2 License and is currently Marina Sen, pursuing her Canadian Accredited Insurance Broker (CAIB) and Canadian Insurance Services Risk Management (CRM) designations. Co-ordinator
Harry Geddes joined the MIABC has a consultant in the fall of 2014. He has over 30 years of experience in the insurance industry, and has been employed with the MIABC’S broker partner, HUB International, since it’s foundation in 1998 and is the Past Director of Compliance.
Harry has insured a vast cross-section of businesses including municipalities. Prior to joining HUB International, Harry’s insurance experience was with the insurance carrier Travelers Canada, now St-Paul Travelers.
In addition to his daily responsibilities, Harry has also devoted much of his life to education, including a graduate degree from the University of British Columbia (UBC). He has obtained his Associate of the Insurance Institute of Canada (AIIC) designation, and is a Canadian Certified Insurance Broker (CCIB) which is the highest designation awarded by the Insurance Harry Geddes, Brokers Association of Canada. Consultant, HUB International Ltd. Harry has also given back to the insurance community and the community at large as Past President of the Insurance Brokers Association of BC, and Past Chair of the Insurance Council of BC.
Lindsay Nilsson is the Director of Claims & Legal Services. In this role she is responsible for overseeing the MIABC’s Claims and Legal Departments. A lawyer by training, Lindsay began her career in private practice as an associate at a leading insurance defence firm.
Lindsay joined the MIABC’s Legal Department in 2005, where she was responsible for defending claims against members. In 2011, Lindsay was appointed Risk Management Coordinator and took on the responsibility for managing the Risk Management Department while continuing to handle a legal case load.
In her role as Director of Claims & Legal Services, Lindsay monitors the handling and defence of all claims for the MIABC. Lindsay is a graduate of Lindsay E.W. Nilsson, the University of British Columbia (Bachelor of Arts) and Queen’s Director of Claims & Legal University (LLB). Services
Megan Chorlton is the Director of Member Services. She is responsible for overseeing the provision of risk management services, the Casual Legal Advice Program, the MIABC's publications and other member service initiatives.
Megan was called to the bar in 2007 and worked for a prominent insurance defence firm for six years prior to working for the MIABC as a staff lawyer. Specializing in municipal defence litigation, her practice primarily involved representing the 170+ municipalities and regional districts that are members of the MIABC.
Megan graduated from the Faculty of Law at the University of Alberta in 2005. Following law school, Megan clerked for the Alberta Court of Megan Chorlton, Queen's Bench and the Alberta Court of Appeal. Prior to her legal career, Director of Member Megan was a teacher with a B.Ed. from McGill University and a M.Ed. from Services the University of Alberta.
Susan Ackerman is the Risk Management Advisor. Susan started working in the insurance industry in 1989. Over her many years in the industry, she has worked at various insurance companies in claims departments as a senior claims examiner, where she specialized in large property losses.
Susan joined the MIABC as a claims examiner in 2011. In 2012, she moved to the Member Services Department where she is able to utilize her years of claims experience to help MIABC members formulate solid risk management strategies. Susan has her Chartered Insurance Professional (CIP) designation and holds the Canadian Risk Management (CRM) designation.
Susan Ackerman Risk Management Advisor