the tradeshow become a get connected · 2018. 4. 4. · april - may 2011 cdn publication mail...

Cdn Publication Mail Registration 40018149April - May 2011

GetConnectedIBAA ConventionJasper, May 15-18, 2011

Igniting InnovationConnect to The Next Big Thingat the convention keynote

Connect to CustomersThrough Social Media

ALBE ARTRTTHE

The TradeshowBecome a

Savvy Visitor

What’s Happening?

Convention Agenda

Page 46

Mardene Watson

One of the great things about being president of the IBAA is that I have the opportunity to attend our national association meetings and sister association conventions. At these events I get a provincial and national perspective of what is happening in our business community across Canada. I can say with confidence that we are not facing business altering issues from regulators and government that our sister associations are addressing such as auto reform in Ontario, the cap challenges in Nova Scotia and contract renewals for provinces with government insurance. That said, we will have some government issues to deal with in the next few years. On the federal front we have the upcoming review of the Bank Act. The process has already started for the scheduled review to take place in 2012. Both our national association, IBAC, and the IBAA have been busy working with regulators and MPs to ensure our concerns are heard and addressed in the review process. Our political

officer George Hodgson has an article in this issue of The Alberta Broker that deals directly with this issue and the need for member involvement. Please take the time to read his article (page 8) and remember the association is only as good as our members’ commitment to work with us on our lobbying efforts. This past year has been a busy one for the IBAA executive and board of directors. We have struck a number of commit-tees to support our strategic plan: the member benefits com-mittee to research and bring forward value-added benefits; a committee to review our policy and positions; the “feel good program” committee to search for a partnership with a charity or organization that is community-based and province-wide; as well as a newly formed commercial lines committee. These committees are made up of board members and volunteers from our industry. Some of our board members were unable to finish their terms; however, several members were willing to step forward to fill the void. Leaving the board were Tom Reid, Maranda Varley and Carol Peterson. During their time they were excel-lent representatives of our membership, and I appreciatedtheir help and support. It is also very much appreciated that Harold Baker came back to help the organization in a time of transition. His pas-sion for our industry is evident by his hard work and commit-ment. I would like to take a moment to recognize the contribu-tion of John McInnis to the brokerage community. John had recently returned to the IBAA board as the local council representative for Peace River. This was the second time he

Message from the President

continued on page 4

Publisher and Editor Annette HubickPrinting McCallum Printing GroupDesign and Layout Ron LeckeltAdvertising Michele Schuldhaus 780.448.2890 [email protected]

The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not nessisarily be those of the assosiation and its members.

Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Assosiation of Alberta’s magazine - The Alberta Broker (date).”Please send a copy to the publisher.

Published six times annually by:

9249-48 Street Edmonton, Alberta T6B 2R9T: 780.448.0936 • F: 780.465.6201E: [email protected]

The Alberta Broker is the official publication of the

President Mardene WatsonChief Executive Officer Harold Baker

3010 Calgary Trail, Edmonton, AB T6J 6V4T: 780.424.3320 •1.800.318.0197F: 780.424.7418 • www.ibaa.ca

TH EALBE RTA

April - May 2011

10

IN THIS ISSUE

The Alberta Broker April - May 2011 3

Feature Story:Igniting Innovation

Message from the PresidentMessage from the EditorConnecting to CustomersThrough Social MediaThe AdvocateJeremy Gutsche Q & ANorthern ExposureIBC InsightThe Lost Art of Face-to-Face CommunicationLegal-Ease

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The Tax ManPYIB PerspectiveBecome a Savvy VisitorThe Banker’s BoxCommercial BreakChinook Country ReportKnow E&OFocus on EducationThe Superintendent2011 IBAA ConventionAgenda

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Annette Hubick

Message from the Editor

stepped up to participate on our board. In between his IBAA board terms, John also sat on the General Insurance Council. John was committed to the brokerage community, a valued leader and a friend to many; he will be missed by all. This is what I know for sure, the IBAA is an association that truly believes in its mission “to preserve and strengthen the insurance broker.” We provide quality education to uphold professionalism; we are politically active to ensure the contin-ued viability of the insurance broker; we support our commu-nities; and have developed a brand that is easily recognized by

the consumer. The extremely motivated board of directors has helped make this happen along with the IBAA office staff. They are vocal, passionate, and eager; and are dedicated to the brokerage community. Until I became involved with the as-sociation, I didn’t realize the effort that the board, volunteers and staff put forward in support of the associations goals. Please continue to volunteer your time to ensure the on-going success of this organization; it is our responsibility as a professional community.

4 The Alberta Broker April - May 2011

Message from the President continued from page 3

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Telephone: (780) 442-2240Toll Free Telephone: 1-866-328-1314

Fax: (780) 428-8143Toll Free Fax: 1-866-428-8143

CommercialWholesale

BROKER FOR BROKERS

Property • CGL (Incl. Truckers)Cargo • COC • Umbrella/Excess

Fine Arts • Product RecallCross Border • Stand Alone Crime

Auto Physical Damage (Incl. Logging)Special Events • CEF • Aviation

High Value Homes

Please visit our website atauroraunderwriting.com

Notice anything different? No, I didn’t get a new hairstyle or glasses (although both are overdue). What I did get, or rather you got, is a magazine with a makeover. We hope you like The Alberta Broker’s new look. Our goal was “simple”: create a magazine that visually engages read-ers, enticing you to spend more of your precious time delving into the content, thereby delivering even greater value to our advertisers. Did we hit the mark (she asks with fingers crossed)? I look forward to your feedback. Connect with me at the convention in Jasper or send an email to [email protected]. “Send me an email.” Remember when that seemed like amazing new wizardry that overhauled the way we communi-cated with friends, colleagues, suppliers and customers. Now there’s Facebook, Twitter, vlogs, blogs … a plethora of mediums to deliver messages. But can these tools be used profitably for busi-ness purposes, specifically yours? That’s the question that Karen Rutherford intends to answer at her IBAA conven-tion seminar. Read more about it on page 6. So, what’s next? Rather than wait around for someone else to tell you (or do it first), the convention keynote speaker Jeremy Gutsche will challenge

you to ignite your spirit of innovation, to be a trendsetter or at the very least, capitalize on the trends. The founder of Trendhunter.com (200 million hits and counting), Gutsche has made a career, and a fortune, of predicting the Next Big Thing. Read more about it on page 10. On the other end of the tech-cool spectrum, communications expert Stacey Hanke makes her case for face-to-face communication and offers eight steps to communicating with impact (page 18). That’s kind of what the convention’s social activities and trade show are all about, aren’t they? Mak-ing and strengthening connections by being together in person. Speaking of the tradeshow, look for tips on how to make the most of your time visiting the booths (page 32). Yes, the IBAA convention offers thought provoking speakers, network-ing with industry colleagues, entertain-ment, the opportunity to elect your association’s leaders and most impor-tantly, Moose Milk. All wrapped up in the spectacular package that is the breathtaking Jasper Park Lodge setting. For an at-a-glance rundown of what’s happening when at the convention, turn to page 46.

I’m looking forward to connecting with you.


By Annette Hubick “The question many brokers have isn’t should I be involved in social media, but how do I make it work for me,” says Karen Rutherford of Cookson Walker Consulting and IBAA convention seminar presenter of Should Brokers Be Pursuing Clients Through Fa-cebook? “Facebook is littered with corporate pages that nobody visits and nobody ‘likes.’ Then there are the brokers who avoid social media because it’s uncontrollable. But, if you embrace it, and understand it, it can be amazing.” Rutherford contends that one of the key mistakes that brokers make is that they attempt to create their Facebook page themselves. Her advice? “Give it to the youngest person in the office. Set the criteria, like don’t swear, don’t promise what we can’t deliver; then get out of their way.” A successful insurance broker for 23 years prior to becoming a consul-tant, Rutherford admits that she was pushed onto the whole social media bandwagon. She had started research-ing the subject with the goal to show how ridiculous and ineffective social media would be for business, “But along the way, I discovered it to be amazingly powerful.” In the interactive session, Ruther-ford plans to show attendees the useful and the useless. Participants will build a social media advertising campaign and launch it during the session. Brokers will get answers to the fol-lowing questions:• Is there an ROI for insurance brokers who invest in social media?

Connecting to Customers Through Social Media

• What is the demographic profile of social media users?• How important is the language you use?• Are brokers making money on Face- book? How do they do it?

• Are all applications legal?• How much time will it take to be successful?• Is there a liability exposure you need to assess?• Do you need to use optimization tools?• What is the best hook to have your Facebook campaign work?• Can blogging make you popular with your clients?

Like all forms of advertising and marketing, brokers first need to be clear on two things. Who is my audi-ence? What do I want them to do? “Understanding the demographic mix in your brokerage is critical before you start your social media campaign,” advises Rutherford. “Who do you have now and who do you want?” She points to Facebook as an exam-ple. Everyone knows the biggest user group in Canada is under the age of 36. But there is also a growing number of grandparents becoming Facebook literate so they can stay connected to their grandchildren. “The IBAA convention seminar will look at how messaging these clear groups can result in actual sales. The session will also tell you the way to attract thousands of potential new clients by using certain Facebook techniques that will amaze you with the results and the insignifi-

“The session will also tell youthe way to attract

thousands of potentialnew clients.”

cant costs,” promises Rutherford. Have the recent world events convinced you that Twitter is capable of more than updates on celebrity’s lives? “Twitter offers something that most brokers have yet to capitalize on,” says Rutherford. “We will look at both Twitter and VLogs as a way to deliver meaningful risk management tips to personal lines and commercial lines clients on a regular basis, but in a way that clients will find helpful, not intrusive.” The world of business is busy build-ing LinkedIn contacts. Once everyone has found a job, then what else can it do for you? Rutherford contends that surveys are under utilized in Canada as a way of discovering what your clients really want from you. Can you use LinkedIn to create the perfect pack-age of value-added services and service standards that would make you stand out in the crowd? Learn how at the IBAA convention. Brokers are familiar with the statis-tics about how many times they need to interact with their clients, in add-ition to the invoicing experience; however, few brokers have found the way to do this in an efficient and ef-fective way. Karen Rutherford intends to demonstrate how social media can do just that. Something to tweet about, indeed.

Catch Karen Rutherford’s seminar start-ing at 8:45 a.m. on Tuesday, May 17th.

What is Social Media? Social media are media for social interaction, using highly accessible and scalable communication techniques. Social media is the use of web-based and mobile technologies to turn com-munication into interactive dialogue. Andreas Kaplan and Michael Haenlein also define social media as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-

generated content.” Businesses also refer to social media as consumer-generated media (CGM). A common thread run-ning through all definitions of social me-dia is a blending of technology and social interaction for the co-creation of value.

Source: WikipediaSocial media includes:• Facebook • Twitter • LinkedIn• mySpace • YouTube• Tagged and 180 more unique groups


Karen Rutherford


The Advocate George Hodgson

A federalelection isimminent!Or not.Depending onwhich politicalprognosticator you believe, we could have an election this spring, this fall or next year– who knows? It’s a great time to voice your con-cerns to our members of parliament, candidates and political parties. With over 30,000 brokers countrywide, we represent every community in Canada. The public policy affecting you and other brokers will be shaped by these candidates, and you have the opportu-nity to influence the process.

The CurrentFederal Political Landscape We are currently two and one half years into the third consecutive minor-ity government since 2004. With no one party in majority, nor a coalition being formed, the ground is fertile for grassroots advocacy.

Minority governments enhance the role for the opposition to shape public policy and determine the government’s

ongoing survival. In the current con-figuration, the government needs the support of one of the opposition parties to pass legislation.

Two pieces of legislation must pass for a government to survive: the speech from the throne and the budget. The 2011 budget was tabled on March 22nd and, at time of writing, the outcome is unknown. If the government can-not pass the budget, an election will be called for May or June of this year.

Approximately twenty political parties are currently eligible to field candidates in 308 constituencies across the country. In Alberta four are likely to have candidates in most or all of our 28 constituencies: The Conservative Party of Canada, The Liberal Party of Canada, The New Democratic Party and the Green Party of Canada.

Influencing Public Policy Practically speaking, the Canadian political system requires three ingredi-ents to sustain it: policy, organization (volunteers) and money. While public policy can be influenced in many ways, communication from the perspective of consumer interest most effectively grabs the attention of politicians.

Policy Common policies are the reason political parties exist. Visit the party websites to obtain contact and back-ground information on local candidates as well as policy and platform informa-tion.

Remember, some political campaigns release their platform on a specific date while others do so in stages throughout the campaign.

What role will you play in the federal election?


Use this information about candi-dates’ policy positions and platforms to communicate brokers’ concerns to the candidates. Find areas where concerns might agree, dovetail or even contradict. Try to connect with the candidate’s hot topics. Write letters to incumbent MPs and/or candidates. Make appointments to see them. These are effective means by which we can inform politicians of our issues. Members can find details on the issues important to insurance brokers in the MP-Senator Advocacy Kit on IBAA’s website in the federal section under government relations (login required).

Organization Political organizations thrive on volunteers and numerous roles are avail-able. Between elections we can exert continuous influence on the political process by participating on constituency association boards. Election campaigns afford the greatest opportunity to volunteer. People are required to man-age campaigns, raise funds, keep books, knock on doors, etc. For those up to it, door knocking with the candidate gets the most exposure to the campaign and to the public at large.

Money Fundraising is a critical component of all political campaigns. Successful cam-paigns often out-spend their opponents. Exercise care here as Elections Canada restricts how much money individuals can donate.

Corporations cannot donate any money to federal parties. Individuals are permitted to donate to two pools: the federal party and the Electoral Districts Association (constituency associations). In a calendar year, individuals can donate $1,100 to particular registered party. In addition, they can donate $1,100 to a registered federal party at the constituency level. Individuals can also donate $1,100 to independent can-didates for a particular election who are not candidates of a registered party.

GEORGE HODGSONExecutive Officer,

[email protected]

All of these methods are effective ways of getting our message to the federal politicians. The most important way to register your opinion, however, is to get out on election day and vote for the candidate that best represents your interests!


Long before Twitter, Facebook, and the currentfinancial crisis, Einstein proposed three rules of work:

• “Out of clutter, find simplicity.” • “From discord, find harmony.” • “In the middle of difficulty lies opportunity.”

These rules are truer than ever before. We haveencountered increasing media clutter (you could say I’m one of the causes of this!), organizational discord, and financial difficulty – in short, we are in an era of chaos.

The common reaction is to fear these conditions,but just as Einstein’s rules profess, difficulty can spark extraordinary ideas.

– Excerpted from Exploiting Chaos:150 Ways to Spark Innovation During Times of Change

IgnitingInnovation

Times of change and uncertainty can spark the greatest opportunities for innovation. Many multi-billion dollar corporations such as Hewlett-Packard, Disney, and Microsoft were started during periods of economic recession.

Jeremy Gutsche, North America’s most sought after authority on trend hunting, will be the keynote speaker at the 2011 IBAA convention. Based on his book, his keynote entitled Exploiting Chaos: 150 Ways to Spark Innovation During

Times of Change will show you how to gain an edge in business by harness-ing the creativity that will help your company survive and flourish in any economic climate. With a respected understanding of exploiting what’s cool and predicting future trends, Gutsche shows how to create a culture of innovation in your company, maximize the exposure of your marketing message and think big while acting small. In what promises to be a fascinating and valuable talk, Guts-che will detail how to stimulate creativ-ity and unlock the powerful strategies of trend-hunting to help your business thrive in these uncertain times. “In these times consumers still buy things, but they change the definition of what it is they need,” he says. Gutsche describes himself as “enthu-siastic, creative and social. My friends would describe me as hyperactive, short attention spanned and easily distracted.” A “cowboy entrepreneur at heart,” Guts-che grew up riding dirt bikes and ski racing just outside Calgary. The son of a psychotherapist and a venture capitalists and the younger brother of an art histo-rian, Gutsche figures he ended up some-where in the middle of the three. “After all, I really like new ventures, meeting new people and artistic creativity.”

JeremyGutschekeynote aims to helpbrokersconnect to THE NEXTBIG THING


At 28, as one of Capital One’s young-est Business Directors, Gutsche led his team to grow a billion dollar portfolio of market-leading products. At the same time, Gutsche developed and founded TrendHunter.com as a place where people could exchange busi-ness ideas with the hope that he would discover one that he could develop himself. In the end, the exchange itself became the idea. Attracting more than 200 million views, TrendHunter.com is the #1 trend-spotting site in the world – the largest, most influential, most updated collection of cutting-edge ideas available anywhere. (It attracts roughly fifteen times more page views than its competitors). Jeremy Gutsche, relentlessly tracks and finds The Next Big Thing – that valuable but elusive commodity – for a global audience that generates millions of views a month. Gutsche is a creative, globe-roaming individual with a broad appeal that stretches from The Economist, which uses him as a source, to MTV, which places him at “the forefront of cool.” With phenomenal speed, Gutsche has grown Trendhunter into a trusted showcase for “what’s next” in marketing, design, technology and other categories. The site’s been featured or cited in over 40,000 articles, and Gutsche has ap-peared everywhere from Entertainment Tonight to the BBC. He’s also sought out by leading companies to speak on cool-hunting, innovation, marketing strategies, and The Next Big Thing and its relevance to their business. In bold, interactive keynotes, he delivers a blend of viral new trends, strategic frame-works and a contagious enthusiasm for innovation. He possesses a unique per-spective on innovation in the business context, and draws on his background in both corporate strategy and Web 2.0 to provide audiences with inspiration and tools to generate ideas, stimulate creativity and unlock potential. IBAA president Mardene Watson recently saw Gutsche’s presentation for herself. “I was amazed at how much I didn’t know—the world is changing fast and we need to find ways to keep up.”

– Compiled by Annette Hubick


How do you define cool? Cool hunting isn’t the search for what’s popular. Cool hunting is the search for what’s NOT popular – yet. Once something becomes mainstream, its novelty and appeal is lost. Cool is unique, cutting edge and viral. Because cool is viral, marketers and product designers seek to attain it.

What is your secret touncovering trends? I like to hunt for Clusters of Inspira-tion. This might have you wondering why the Trend Hunter guy uses a word like ‘cluster’ instead of ‘trend’? Quite simply, the word ‘trends’ is too broad. It can refer to next fall’s fashionable colour, or macro-trends like the green movement, female buyers, consolida-tion, outsourcing, Web 2.0 and aging boomers. These trends are somewhat useful, but too generic to enable breakthrough thinking. Clustering is the art of identifying insights that are meaningful to your customer. To create clusters, you’ll need to collect your ob-servations from trend hunting and filter through the noise.

What do you enjoy most about Trend Hunter? I’ve always been insatiably curious and obsessed with innovation. I am an entrepreneur at heart, although I spent years hunting for a business idea. In fact, I created Trend Hunter as a place where people could share business ideas, and I was hoping along the way that I would find my own idea…

Fortunately, Trend Hunter grew into the business idea itself. For this, I have been truly lucky because I feel like I am working on a hobby. To me Trend Hunter is an obsession and a passion, but most certainly not a job. I am passionate about our Trend Hunter community and I get really excited every time someone sends an email that we helped them to get inspired.

What inspires or excites you? Creativity. Ambition. Randomness. The NEXT BIG THING.

– Source: TrendHunter.com

Jeremy Gutsche

Q&A

What is unique that’s not in your bio? I love interacting with people, brain-storming new ideas and thrill seeking. On the latter, I’m up for anything. So far I’ve been swimming with sharks, racing baja rally cars, jumping from planes, skiing off cliffs, bobsledding and motorcycle racing. Also, I have a short attention span. Also, I forget the ques-tion. What?

What’s your favoriteaccomplishment? Everything about TrendHunter.com, and I’m most proud of the way that we have helped to connect a community of inspirational people.


Who? What? Where? Chris Lewis

Northern

Convention time is now sneaking

upon us, and it sounds like it is going to be another fantastic event. Unfortu-nately for me, I will be unable to attend this year as the fiancé decided to book our wedding the same weekend as the IBAA convention begins. No matter how hard I suggested to change the date (which was obviously not a smart question) or even suggest I skip the gift opening (which almost led to no wed-ding) nothing could be done. So I truly hope everyone has a great time without me there and please keep me posted on any of the events that oc-cur during the weekend’s festivities.

What’s new? A major broker acquisition was made by Desjardins Financial Group in which they agreed to make an all-cash offer of $4.15 per share for a transaction value of $443 million to purchase Western

Financial Group (WFG). This transac-tion is expected to close in the second quarter of 2011.

WFG also purchased Berwyn Insur-ance. Ray Semeniuk has decided not to stay on board and the office has been shut down and moved over to the Grim-shaw office. Poor Ken and Danielle McKenzie of WFG Grimshaw; they’re going to have their hands full!

Portage Mutual Insurance Company also moved offices. The new office is located in the West Chambers building at 310, 12220 Stony Plain Road in Ed-monton. The new office is conveniently located across from the old Molson brewery. Unfortunately for them, it is no longer in operation!

Who? What? Where? When? Major news in the Peace Hills world as Jamie Hotte, vice president of

underwriting and marketing, decided to leave Peace Hills. After 25 years with the company, Jamie chose to take on an opportunity with Johnson Inc. We truly wish Jamie the best in his future endeavors and he will be sadly missed around the office.

Quigley Hunt Group Insurance Servicesproudly celebrates its 100th year in Alberta.

Home Insurance Company(now Axa Insurance)

placed its first contractin Alberta with

Quigley Hunt Group in 1911.

Take advantage of 100years of experience. Yourcompany could flourish in

Quigley Hunt Group’s brokerage.

Call Patti or Fred to talk aboutyour future together.

Patti Hunt, President Fred Hunt, CEO Box 68, Priddis, Alberta T0L 1W0Telephone: 403-931-0048

Fax: 403-931-1078

Left to right: Jan Folk, Orange Dog; from TW Insurance: Chris Floyd, president; Kim Heykants, branch manager; Laurie Bauer, account manager

CHRIS LEWIS

Business Dev. Advisor,Peace Hills Insurance

[email protected]

Portage Mutual also filled a regional claims manager role. Val Ray, CIP, joined Portage effective November 1, 2010.

TW Insurance has committed to sup-porting the international dog rescue missions of local entrepreneur and

philanthropist, Jan Folk. On Friday,February 11, Mr. Chris Floyd, president of TW Insurance, presented the broker-age’s $5,000 donation to Ms. Folk’s Orange Dog Freedom Flight, which arrived that day with 60 homeless dogs from California.

The Edmonton Insurance Association had another very successful fun money casino night on Thursday, March 3. With roughly 50 people in attendance, the event is always a ton of fun. Kudos to Tracy Fata and the whole EIA board for doing such great work in this orga-nization.

On a sad note On January 2, 2011, the insurance in-dustry lost a colleague, broker and most importantly, friend in John McInnes. John McInnes (JB Insurance) passed away in hospital after his difficult battle with leukemia. We wish all his family and friends the best during this very difficult time.



As another spring season begins, Canadians love to talk about how the days are getting longer and anticipate the coming warmer temperatures. But often with the brighter days and ris-ing mercury, comes a season of severe weather. We don’t need to think back very far for examples of nature’s unrelent-ing force. Powerful hailstorms and windstorms hit Calgary and southern Alberta last summer, resulting in $500 million in insured damage. And the rest of the country has not escaped the wrath of Mother Nature. From forest fires in B.C. to flooding in south eastern Alberta near Medicine Hat and on into Saskatchewan and Manitoba to hur-ricanes in Atlantic Canada, Canadians from coast to coast have experienced the impact of severe weather. What does this mean for our industry? While we can’t stop these storms and fires from happening, we can encourage communities, businesses and individual Canadians to adapt the way they live and build to minimize the impact of storms and fires. As primary bearers of the risk associated with increasingly severe weather, insurers know that if we don’t encourage adaptation to the new weather reality, we will lose. One of the major issues associated with increasingly severe weather is water – there’s too much of it, and no place for it to go. Today, water is the leading cause of property damage in Canada. Losses related to water damage cost Canadian insurers and policyhold-ers at least $1.3 billion every year. Insurance Bureau of Canada (IBC) has been a leader in developing new ways to help communities and consum-ers prevent water-related losses. One

example is the world’s first and only municipal risk assessment tool to help municipalities identify sanitary and storm sewer infrastructure weaknesses and allocate funds where the risks are greatest. This ground-breaking tool will also provide unprecedented data for the industry to help insurers better under-stand and underwrite the types of risks they face.

Many communities across the country have also taken it upon themselves to do something about preventing water-related losses. In fact, in 2010 IBC recognized some of these communi-ties, in partnership with the Federation of Canadian Municipalities, with the Watershed Awards. The entries received from communities across the country were remarkable examples of what can be done at the local level to reduce the risk of damage caused by severe weather. Edmonton was the winner of the national Watershed Award for dem-onstrating ingenuity in creating a very cost-effective flood control system that doubles as a school playing field in normal circumstances. This innova-tive solution uses the playing field to

IBC Insight Doug Noble

Preparing for the Impact:Alberta’s severeweather on its way


provide stormwater management and flood control when there is extreme rainfall. It is one of a number of projects implemented by the city in response to an extreme rainfall event in 2004 that flooded over 4,000 basements through-out the city, resulting in $171 million in insurance claims. IBC will continue to encourage municipalities across the country to implement innovative techniques of their own to reduce the risks associated with increasingly severe weather. Individual homeowners, too, have a role to play. Our industry regularly provides practical advice to consumers about how to protect their properties from damage from severe weather, because by being proactive, consumers can avoid having to make a claim in the first place. IBC has developed a number of fun and educational resources to teach con-sumers how to prepare their homes for severe weather. The online Rain Cycle exhibit, for example, shows homeown-ers how changing the grading around their homes or adding sewer backup valves can help keep their basements dry during intense rainstorms. You can find the Rain Cycle and many other resources on ibc.ca under the Be Smart. Be Safe tab. To help Albertans withstand extreme weather events, IBC will continue to research ways to make homes and buildings more resilient to water as well as to fire and extreme wind. In the meantime, next time someone mentions the longer, warmer days ahead, perhaps it’s an opportunity to remind him of some simple things he can do to make sure his property is protected.

DOUG NOBLEVice-president, Alberta

& the North, Insurance Bureau of Canada

dnoble@ibc .ca


by Stacey Hanke

Communicating meaningfully is be-coming more difficult than ever before. While technology has created an ever increasing number of ways to com-municate rapidly over great distances, many people are now so well insulated and protected by these devices we use that we are losing the skills and abilities of communicating in the most influen-tial way – face to face. There’s a real danger to the mainte-nance and perpetuation of meaningful communications and personal and professional relationships. If you become overly dependent on email or text mes-sages, you focus on the object, but not the person. Tweets, text messages, email and Facebook posts all transmit words over distances so they can be received with-out presence of the sender. The human element and context is absent. It’s a one-sided blast –Take that! Click! You cannot communicate mean-ingfully with 140 spaces. These messages are typically short, sequential, controlled and directed. There’s no instantaneous interaction or connection that allows the other person to understand the tone, inflec-tion or emotion that is carried with the words. The sender cannot express or effectively project the elements of trust, confidence, credibility, warmth, empathy, and concern that are crucial to developing and building a personal relationship. The recipient cannot per-ceive these elements either.

That failure to convey the feelings that accompany the words so people build trust, credibility and understand-ing can have a phenomenal impact on business and success. Meaningful communications that carry these powerful and important characteristics can only be achieved in face-to-face interactions. Communicating with impact and achieving influence with people is not only about what you say – it’s also how you say it. You have influence on others because you see their face, observe and experience their emotion, and actively listen and engage their interest and support and build relationships. You know it’s probably time for a

face-to-face conversation when:• You no longer really understand what is important to your listener. • You think they have become bored or are losing interest in you or your message. • You feel they are no longer listening and do not understand you. There are also certain topics of conversation where face-to-face communication will absolutely be the best way to achieve clarity and understanding

The Lost Artof Face-to-FaceCommunication

continued on page 20


needed for mutual success and beneficial action.• Negotiating salaries, vacations, termination.• Resolving a dispute, a challenge or a conflict between two or more people or organizations.• Seeking clarification after written communication has failed. Face-to-face communication is a very crucial skill. It requires you to focus. You have to be able to be comfortable in the presence of other people for more than a few minutes. Communicating with impact and influence face-to-face also requires dis-cipline, determination and self-control. Begin with the following eight crucial steps.

1. Make your moments together count. Everyone has the right to speak. Listen before you speak. Earn the right to be heard. Think about what you want to say before you say it. Make every communication moment worth you and

your listener’s time. Every word counts. Think before you speak. Tailor what you say to meet your listener’s needs.

2. Pay attention by listening for the unspoken emotions. Concentrate on the speaker closely. Focus intently on his face. Do not let your eyes dart away and drift off, since that signals you are no longer paying attention. Do not interrupt. Wait to speak only when the person has finished what he wants to say. Hear her words and read her face so that you gain maximum understanding of the why behind her words.

3. Honour the other person’s space and time. Prepare ahead of time. Match the message to the opportunity. Get to the point quickly. Don’t frustrate your listener by taking too long to get the key message across. Don’t ramble and clutter your message with unneces-sary points. Ask for the right action. Be clear and be specific. Watch the time. Don’t take 20 minutes when you only

asked for ten. Show you know how to respect the other person.

4. Prepare for your face-to-face meet-ing ahead of time. K.N.O.W. your listener.K What does your listener know about your topic?N What does your listener need to know to take the action you want taken in the time frame you have for this conversation?O What is your listener’s opinion about your topic?W Who is your listener? What additional information do you know about your listener to help you customize your message? Tailor your agenda and message to achieve the understanding you need and to influence your listener to act on what you have to say.

5. Watch your body language. Avoid non-verbal abuse. Every movement you

The Lost Art continued from page 18

continued on page 22

• Your listener interrupts you. Stop. Break the flow. Earn their attention. Get back on track.

8. Ask for feedback. Face-to-face communications is a two way street. Balanced feedback allows people to be relaxed and comfortable. However, when people start feeling comfortable they also may become lazy and lose their professionalism. Don’t forget who you are and what you are doing. Main-tain your self-control. Ask for specific feedback about the points you raised, the manner in which you presented, the way you responded. Ask for bal-anced feedback about how to improve and immediately begin applying this feedback. Technology-driven communicationwill improve if you first focus on improving the most important method first – face-to-face communication.


STACEY HANKEOwner, 1st Impression Consulting www.1stimpressionconsulting.com

make counts. Control your facial ex-pressions. Don’t smile, snicker, roll your eyes or look sideways. Your behavior and non-verbal cues are as important as the words you say. Don’t fidget, act ner-vous, express fear, or allow your posture to convey uncertainty, insincerity, lack of caring, arrogance, overconfidence, dismay or criticism.

6. Be sincere and authentic. Speak in your authentic voice. Be sincere, be genuine and allow others to see the real you.

7. Maintain the power of the floor. Be interesting. If you see the signs that you are no longer the center of attention:• Your listener begins working on their Blackberry, iPad, IPhone, etc.• Your listener starts nodding off.• Your listener begins to have side conversations.

The Lost Art continued from page 20

Stacy Hanke is a sought after speaker on the topic of communication skills and the co-author of “Yes You Can! Everything You Need from A-Z to Influence Others to Take Action.”


Legal-Ease Shelley L. Miller and Terry J. Williams

A previous article reported on a trial judge’s decision in a case between an Ontario insurance broker specializ-ing in campgrounds and trailers and an insurer. That decision was subsequently appealed by the insurer. The background facts were that in 2003-2004, the bro-ker, M.B. Kouri Insurance Brokers Ltd. (“Kouri”), looked after insurance cover-age for approximately 175 campground operators. In late 2002 or early 2003, Kouri became concerned about secur-ing continued coverage for its clients and approached R.L. Gougeon Limited (“Gougeon”) to assist it. Gougeon had some experience in campgrounds and had an underwriting broker agreement with Ecclesiastical Insurance. Kouri and Gougeon subsequently agreed that Kouri would act as a sub-broker to Gougeon and that Gougeon would be the insurer’s principal broker. Kouri did not have the authority to bind Ecclesiastical to coverage but Gougeon, as the principal broker, did have binding authority. Kouri would deal with potential insureds, handle the applications and forward them to Gou-geon. Gougeon would decide whether to accept the risks on Ecclesiastical’s behalf. Kouri was authorized by Gou-geon to issue policies in Ecclesiastical’s name following Gougeon’s decisions to issue coverage. Kouri was to invoice

and collect the premiums which were to be forwarded, within thirty days, to Gougeon after deduction of Kouri’s commissions. Gougeon would then forward the premiums to Ecclesiastical after deducting its share of the com-missions. It was further agreed that the 2003-2004 coverage would be arranged so that all policies would have a com-mon expiry date of May 31, 2004. In the months before the common coverage expiry date of May 31, 2004, Kouri began to make inquiries through Gougeon as to whether Ecclesiastical would renew coverage for the camp-ground program. However, Ecclesiasti-cal provided no response. The trial judge held that Ecclesiastical was aware that Kouri’s economic financial survival depended upon a timely renewal or the placement of insurance with another carrier and was aware of the extent to which Kouri’s clients relied on Kouri as their long-term insurance broker. The trial judge observed that the decision to have all policies terminate on the same date amplified the need to deal with renewals on a timely basis. Not having received any response from Ecclesiastical about the renewal of coverage for the campground program, on May 10, 2004, Kouri unilaterally decided to mail a letter, an invoice and a certificate of insurance to the insureds without authority from or

notice to Gougeon or Ecclesiastical. Kouri testified that he did this because “our backs were against the wall.” On May 17, 2004, Ecclesiastical’s under-writer emailed Gougeon stating, “I just haven’t gotten through all of this yet … Please consider this notice of a 30-day extension on the campground policies.” Gougeon forwarded this email to Kouri stating, “The extension is not what we want or need but will have to deal with for now. This does not mean that we are renewing for the year as is for premium, but only an extension for one month.” A few days before the end of June, 2004, and not having received confir-mation of Ecclesiastical’s renewal of the program, Kouri was able to conclude coverage with Grain Insurance and Guarantee Company for the period from July 1, 2004, for a twelve-month term. All of the funds which Kouri had received as premiums from the insureds pursuant to the May 10, 2004, invoices were then applied to the Grain premi-ums, even though Grain went on the risk only after the expiration of Eccle-siastical’s coverage extension to June 30, 2004. On July 7, 2004, Gougeon received a letter from Kouri dated June 30, 2004, advising that not having received confirmation of any renewal terms Kouri had placed all of its camp-ground business with another insurer. Subsequently, Ecclesiastical, through Gougeon, sought premium payments for the month of June 2004. Kouri took the position that Ecclesiastical had provided the 30-day extension of insur-ance coverage on a goodwill basis and commenced an action against Ecclesi-astical for a declaration that it was not liable to pay Ecclesiastical or Gougeon any premiums for the 30-day extension. Ecclesiastical counterclaimed for the premiums for the insurance extension during the month of June 2004.

A Matterof Entitlement

Court of Appeal overturnstrial decision in favour of

broker specializing incampground insurance.


Ecclesiastical argued that Kouri was a trustee for it with respect to any premiums collected for the month of June. However, the trial judge found that neither Ecclesiastical nor Gougeon had authorized Kouri to collect those premiums. The trial judge further found that Ecclesiastical had continued cover-age by way of an extension without any obligation on the insureds to pay premiums. Therefore, the trial judge found that Ecclesiastical did not have any beneficial interest in the premiums.Ecclesiastical appealed. The Ontario Court of Appeal found that section 402 of the Ontario Insurance Act clearly applied – it states that an agent or broker who receives money from the insured as a premium for a contract of insurance shall be deemed to hold such premium in trust for the insurer. The Ontario Court of Appeal held that from the point of view of its cli-ents, Kouri had ostensible authority to create binding contracts of insurance on behalf of Ecclesiastical. Kouri received money as premium payments for con-tracts of insurance with Ecclesiastical, but instead of holding that money in trust and paying it over to Ecclesiasti-cal, it paid the money to Grain. The Ontario Court of Appeal concluded that Ecclesiastical was entitled to the premiums for the period that it pro-vided coverage. The Ontario Court of Appeal rejected Kouri’s argument, successful at trial, that it “had absolutely no choice but to deliver renewal notices in light of the approaching common expiry date of May 31, 2004.” Ecclesiastical’s posi-tion throughout the months preced-ing the expiry date was that it had not yet decided whether it would renew the coverage. Ecclesiastical never gave Kouri any indication that it would renew the coverage. The Ontario Court of Appeal stated that Ecclesiastical’s dilatoriness, while arguably irresponsi-ble, was not illegal or wrongful conduct. Ecclesiastical, Gougeon and Kouri were all corporate entities pursuing their own commercial interests, as they were

entitled to. Kouri was free to arrange insurance with another carrier at any time it considered it inadvisable to wait for a response from Ecclesiastical. In

the result, the Ontario Court of Appeal allowed the appeal and granted Ecclesi-astical’s counterclaim.

[email protected]

SHELLEY L. MILLER and TERRY J. WILLIAMSare lawyers with

Fraser Milner Casgrain LLP and practice in theprofessional liability insurance area.

[email protected]


Do you use more than one corpora-tion (or other entities such as trusts or partnerships) for business purposes? Do you use management fees to bill central management expenses to these enti-ties or to bill other entities for services performed? If you do, not only must the fees you charge be reasonable, but it is critical that you can prove the fees are truly management fees with the proper documentation should a Canada Revenue Agency (CRA) auditor ask for details of the fees charged. In a recent Tax Court of Canada case, Les Entreprises Rejéan Goyette Inc., the judge disallowed the deduction of management fees because the taxpayer was unable to prove the fees were true management fees. In this case, an individual was the sole shareholder of a holding company with two wholly-owned subsidiaries (let’s refer to them as X Co and Y Co) whose inter-cor-porate management fees were at issue. X Co was a corporation that operated a residential housing construction business. Y Co was in the business of purchasing land for urban development and for preparing the lots for X Co. Y Co paid for the usual development costs of the land, while X Co paid for any “out of the ordinary” development work.X Co paid inter-corporate management fees to Y Co, which offset non-capital losses of Y Co for the taxation years in question. However, the deduction of the fees was disallowed. The planning itself was not unacceptable had the fees in fact been true management fees, but this is where the case was lost for X Co. There was no agreement in place for the provision of management services or the payment of management fees by X Co to Y Co nor were there any corporate resolutions authorizing such services or payments. The only evidence in respect of the fees given to the courts was two invoices, which showed only

the total amount of the fees and the pe-riod to which they related (each covered an entire year). There was no informa-tion regarding the services provided such as the nature of the services, the hours of service or who provided the services. X Co argued that the fees were relat-ed to “out of the ordinary” development work including the supervision of this work and were management services to be charged by Y Co. However, this explanation was inconsistent with the financial records of Y Co. In addition, similar fees were not charged by other land development corporations that operated within the corporate group.In the end, the court concluded thatY Co was not in the business of provid-ing management services and the fees were paid as a “tax planning scheme”

put in place to make use of the non-capital losses of Y Co. This case serves as a reminder that where inter-corporate management fees are used, there must be a legal obligation to pay management fees and proper documentation is criti-cal. The amount charged must also be reasonable when compared to the work performed. The CRA will generally be looking for the following as evidence of true management fees: General corporate information:• The names of shareholders as well as the number of shares held by each.

The Tax Man Bob McColl

Do You Have Documentation for Your Management Fees?


A listing of management fees paid, including:• Names of recipients and their business/social insurance number,• The amount paid and the date of payment,• Whether the amount was paid by cheque or documented by journal entry, and• The relationship between the corporation and the recipients. Details of the services provided, including:• A description of the work performed,• The amount of time spent, and• Details on how often the services were provided. The CRA will also likely want to see a copy of the contract of services be-tween the parties. Although you would generally have used the above informa-tion when you set the amount of your management fees, you should keep the information available in case the CRA requests it (rather than having to track

it down later). It is also important to resist the urge to charge a reasonable fee based on general information and estimates. The CRA will be looking for specific proof of how your management fees were determined. You should consider retain-ing back-up copies of time records of the employees performing the work and a detailed description of the work performed for the other company. The important point to keep in mind here is that otherwise reasonable fees could be denied if there is insufficient documen-tation to back up the fee charged.

You should consult with your professional advisor regarding management fees.

BOB McCOLL, CAPartner

BDO Canada [email protected]


PYIB Perspective Braden Bosch

Every year, the education-packed, fun filled PYIB convention gets bigger and better and this year has a lot of new and exciting events that will be sure to please all attendants. So why attend the PYIB convention in Edmonton on September 16-17, 2011? What’s in it for me? And why would my boss spend the money to send me? These are great questions and below are the reasons and value our participants get from the convention.

Networking The insurance industry is a very small world as we all know. It’s very impor-tant to get out and network with your fellow brokers and company reps and for the “under 40” set, there is no better place than a PYIB convention. At our 2010 convention we had 19 insurance company trade show booths and a total of 57 company reps attend the trade show and entertainment night. The company reps ranged from personal lines and commercial lines underwriters to marketing and claims reps. The ma-jority of the companies send their front line underwriting staff which provides you with an opportunity to meet the underwriters you deal with on a daily basis and put a face to the name and voice. By the end of the evening, you have made new friends and formed a stronger relationship with your under-writers, which is sure to help you out with your day-to-day dealings when you get back to the office. With brokers attending from all over the province, from large offices to small offices and from two months to ten years experience, the opportunity to network and find out other brokers challenges, what’s working for them, etc… is another great benefit of attend-ing. You will make some great friends

and when you have a large trucking ac-count you are quoting for the first time, you will be able to call your new friend who specializes in trucking to give you some tips and advice to help you close the account.

Education The education portion of the conven-tion is certainly the most important aspect of the event. Over the years, we have had amazing speakers such as Jennie Moshous (AXA Pacific Insur-ance), Dianne Brickner (Peace Hills Insurance) and Scott Tannas (Western Financial Group). Education session topics have included “What Drives Young Insurance Professionals,” tech-nology and change, political issues and many more. We’ve also featured ses-

sions designed to motivate and inspire young brokers to achieve success. Note: all convention education sessions are accredited. We try to choose topics that we know would benefit young brokers and help you with your day-to-day roles and advance in your careers.

Giving back to industry A lot of the participants in our con-vention are individuals who want to get involved with the PYIB and give back to the industry that’s given so much to them. Your participation level can include helping out with setup and takedown, working the registration desk, etc. By helping out and getting involved, you are able to interact and learn from the board and executive and their experiences in the industry and with the PYIB. We host several events throughout the year so if anyone wants to get involved just contact me and I’ll point you in the right direction.

The PYIB ConventionWhat’s in it for you? (and your boss)


[email protected]

BRADEN BOSCHPresident,

Professional YoungInsurance Brokers

Great entertainment And last but not least, the entertain-ment leaves everyone going away from the convention with a smile. We’ve had everything from a hypnotist to a stand-up comedian and dueling pianos. The entertainment portion of the eve-ning creates a comfortable atmosphere for everyone to let loose, have some fun and interact with their industry peers.

Hope to see you at the upcoming con-vention. We love to get feedback from our members so if you have any ideas, concerns, suggestions etc., please email or call us anytime.


by Richard E. Ensmen

ENTER the trade show area at the IBAA convention and look around.You’ll see booth upon booth – a dozen of them, 57 to be exact. It’s easy to spend your time meandering through the exhibit halls, chatting with friends and colleagues, and only occasionally interjecting some purposeful business with an exhibitor when you happen upon a booth of particular interest to you. But there’s another alternative. You can parlay your limited time in the ex-hibit hall (Sunday, May 15th only from 4:00 to 9:00 pm) into a genuine learn-ing and networking experience. With a little attention to planning, you can get a tremendous return on the time you spend there. Here’s how:

• Plan your stops. Pick up a map of the exhibit area before you begin browsing. Then identify a selection of booths that might offer especially useful informa-tion.

• Divvy up the work. If you’re attend-ing the convention with a colleague and you have a lot of booths to visit, split the booths up between the two of you, either by interest area or physical location.

• Stay in shape. Don’t kid yourself: spending a few hours in an exhibit hall can be a grueling experience. Whenever possible, wear loose-fitting clothing and, above all, comfortable shoes. Or take a lesson from veteran exhibitors, who often wear padding inside their shoes. Sample lightly from the food stations; avoid being weighed down by a heavy meal.

The Convention Trade Show

Become a Savvy Visitor

• Know when to browse. Take the tempo of the trade show. When exhibit traffic is light, make your high-priority, business-oriented visits. You’ll be able to spend more time with exhibitors this way. When traffic is heavier, you can browse through your lower-priority booths more casually.

• Set goals. Decide what you want out of each exhibit even before you start making the rounds. (Take a look at the exhibitor booth directory on page 33.) Do you want help with a thorny service problem? Want to learn about a new market? Want to save money? Want to increase efficiency? Keep these goals in mind as you visit each booth. You might even want to develop a list of stock questions to ask each exhibitor you visit.

• Understand the goals of exhibitors. They vary. Some exhibitors want to foster an image or impart positioning statements. Others may want to build prospect lists. Others may want to gath-er qualified leads. And the list could

go on and on. You can often discern an exhibitor’s purpose with a quick glance or a brief conversation. Ask yourself: is the exhibitor’s goal compatible with yours? If not, don’t spend excessive time there.

• Stick to your agenda. Approach each booth with your agenda in mind. Stop, look around, introduce yourself and then move directly to the business at hand.

• Look for the quick message. When you approach a booth, look and listen for the “quick message” – the exhibitor’s key points. The signs, posters or demon-strations around the booth often display this message at a glance.

• Overlook the clutter and hype. Trade show exhibits are designed to whet your appetite for what’s being offered there – and that’s good. But don’t spend so much time around the signs, the giveaways and the show-and-tell dem-onstrations that you neglect what you’re really after.

• Ask for help. Pose questions and problems – perhaps from a ready-made list – to exhibitors. Specifically, ask for help with problems you’re having on the job. They frequently can offer you valuable solutions, insights and recom-mendations.

• Ask for high-value materials. What relevant brochures, magazine reprints and case studies can exhibitors give you? If an exhibitor doesn’t have what you’re looking for, ask him to place your name on a follow-up list.

• Learn about the competition. Chat with the exhibitors about the competi-


tion. You might discover clues about their recent successes and problems.

• Let them sell you. When you visit a busy trade show booth, you often have the opportunity to see the representa-tives of various firms in action—giving information, answering questions, attempting sales, managing the booth—in short, juggling a myriad of duties. It’s a great time to test the capabilities of exhibitors, the quality of their products and their ability to serve you.

• Kick the tires. Participate in dem-onstrations. Try your hand at surveys, exercises or evaluations offered by exhibitors. Do you have a product or service suggestion for an exhibitor? Don’t hesitate to throw in your two cents before you leave.

• Offer advice. Have you used an exhibitor’s products in the past? If so,

2011 IBAA Convention Trade Show Sunday, May 15, 4 to 9 p.m.Exhibitor Directory

BEAUVERT BALLROOMBooth Exhibitor1 CanAm Insurance2 FirstOnSite Restoration3 Canada Worldwide Underwriting Agencies4 PAL Insurance Brokers5 Underwriting Analysis & Support Services 6 The Mutual Fire Insurance Co. of BC7 Travel Insurance Coordinators8 Swiss Re9 Sports & Fitness Insurance Canada10 Servicemaster 11 Brovada Technologies12 Jevco Insurance Company13 Guardian Risk Managers14 Creechurch Int’l Underwriters15 Lydale Construction16 Totten Insurance Group17 Monarch Insurance Brokers18 Powersoft Development Corp. 19 Aurora Underwriting Services20 Belfor (Canada) Inc.21 Compu-Quote22 South Western Group23 Policy Works Inc.24 & 25 The Economical Insurance Group26 Autoglas Maintenance Inc.27 & 28 Specs29 K & K Insurance Group30 Keal Technology31 Premiere Insurance Underwriting Services32 Custom Software Solutions33 & 40 Insurance Bureau of Canada34 & 39 Onside Restoration35 - 38 SCM Insurance Services41 BMO Bank of Montreal42 Encon Group Inc.

MARY SCHAEFFER BALLROOMBooth Exhibitor43 Paul Davis Systems Canada44 IFS Financial Services45 Portage La Prairie Mutual Insurance46 Cookson Walker Consulting47 Winmar Property Restoration48 Carstar Automotive Canada49 Pembridge Insurance50 CSIO51 DAS Canada52 Specialty Vehicle Appraisal Institute of Alberta53 Enableit54 First General Services55 SCN-NBS 56 Disaster Kleenup Canada57 Beacon Underwriting 58 Tritech Financial Systems59 General Insurance Ombudservice60 The Guarantee Company61 Elliott Special Risks62 Morgex Hole-in-One63 Applied Systems Canada64 Discount Car & Truck Rental

can you offer examples of effective and ineffective performance? Offer your insights. Exhibitors take these sugges-tions very seriously, and often forward them to their home offices.

• Become a customer. If you’re pretty sure you’re going to be doing business with an exhibitor, give her whatever information she needs to begin a suc-cessful sales relationship right then and there.

• Evaluate. Make a brief handwritten note after you leave each exhibit. Jot down the key points you’ve learned, product problems you’ve encountered, or issues you’d like to raise in a return conversation with the exhibitor.

• Organize information. Carry a portfolio or bag with pockets so that you can sort and file printed material as you receive it. If you indiscriminately

dump everything handed to you in an oversized bag, chances are that most of the material will eventually land in a junk pile.

• Talk to other visitors. You can often learn about their needs and problems, and pick up valuable tips from them. Better yet, you can build new profes-sional acquaintances that can make your job easier over time.

• Look for benefits. Yes, you can get free promotional items and refresh-ments in the convention hall. But look, too, for benefits of lasting value: technical literature, case studies, prod-uct samples. Unlike the giveaways that bring momentary pleasure, items that influence your profitability offer lasting value—long after you return home.


It is not everyday that you likely find yourself comparing payment proces-sors. But given that increasingly your clients are likely looking for choice in how they pay their premiums, choosing the right payment provider warrants spending some time. The right provider will fit both your clients’ and broker-age’s needs for customer satisfaction and helps to enhance the success of your brokerage. Not all payment processors are cre-ated equal. A payment service that offers the lowest price may not always be the best fit for you and your clients. Brokerages ought to figure out what level of service, support, equipment and pricing structure is best for your busi-ness. Evaluating these options is the most important criteria when research-ing and deciding on the alternatives. From a transactional frequency perspective, the utilization of a broker-age’s Point of Sale (POS) technology is expected to be lower in comparison to that of other retailers. With many of your customers already on direct bill, you will be catering to a limited number of clients and circumstances. On that same note, given substantial processing cost differences, the majority of pay-ments that a brokerage would experi-ence are debit transactions as opposed to credit. One important consideration is if there are any restrictions on the fees and pricing in the payment service offering. Many providers have a tiered pricing schedule and require a mini-mum amount of transactions to qualify for a lower rate. Always read the con-tract in detail as areas of concern may include teaser rates and early termina-tion fees that can amount to thousands of dollars (most companies require a two to three year commitment). Look for payment processors that offer an option to leasing or purchasing

of the POS terminals. In some cases, the outright purchase of the equipment maybe a cheaper option to signing a leasing contract with the service provider. Be careful of unfavourable leasing terms that will charge extra fees and taxes when buying out the equip-ment at the end of the lease. Always do your due diligence and determine if the provider has the integrity, experience and technology capabilities to support you and your clients’ requirements. One way to do this is to ask to speak with some of their existing customers in your industry for a recap of their experiences. To summarize, brokerages need to take into consideration several salient points in the selection of a pay processor:• pricing and contract agreements to suit your business needs• availability of service and support terms versus utilization rate of the POS • ownership versus leasing or rental of the POS terminal to reduce overall cost of service• time it takes to transfer funds from the sales transaction to your account The above provides only some brief insights and criteria in making an edu-cated selection on the different services available on the market today. Taking the time to compare providers in the marketplace carefully can help save you time and cost in the future. With the right solutions, your clients’ will ap-preciate the convenience and flexibility that you have provided them.

JOHN KNOTEKNational Manager,

Insurance Broker ServicesBMO Bank of [email protected]

Banker’s Box John Knotek

Choosing aPayment Processor


I recently received a call from a lawyer, requesting my help as an expert witness for a commercial policyholder. A family run business in a small town had sustained a serious fire. There were questions about coverage. I was intrigued. Questions about coverage for a fire? Without breaking any confidences, I will share some details: A covered loss (the multi-million dol-lar kind that makes the 6 o’clock news) was paid at about 10 cents on the dollar. My conclusion, after reading through the policy and the applicable evidence, was that the broker had never seen the risk (despite being the holding broker for over four years), the insurer didn’t connect the dots of information they had received, and the policyholder made a decision to switch brokers and insur-ers solely because they were promised significant cost reductions. The annual premiums for this policy-holder were hundreds of thousands of dollars. Commissions received by the broker were substantial. The lead insurer on the property subscription policy failed to clarify the nature of the risk, did not thoroughly comprehend the contents of an inspection report that it

ordered, did not modify the policy to remove exclusions that were critical for this business, while the policyholder did not read his policy documents (which arrived with the adjuster at the loss, three months after the renewal date). I now face the rather unpleasant task of having to write a report and poten-tially attend legal proceedings, wherein, I will likely have to provide the court with a rather negative opinion regarding the competency of the brokerage firm and the insurers.

What can we learn from this?1. Brokers MUST understand their clients’ risks. It’s not good enough to do things on the phone or via email – you need to SEE the risk. You need to understand your client’s business, or you will overlook essential coverage features.2. While policyholders should read their policies, brokers should do a “run-through” with the commercial client, touching on the key coverage features and exclusions, to make sure there are no “show-stopping” mistakes.

3. The “one-size-fits-most” of standard insurer wordings is exactly that. No two commercial clients are exactly the same, and a standard wording may be fine, as long as it is modified to suit the client’s needs.4. Brokers must not overestimate their own expertise. There have been a number of times in my career when I’ve said, “I am not qualified to do that work” because it was beyond my scope of expertise. Just because you are licensed to sell commercial insurance products does not mean that you are an expert for every possible client that may approach you.5. Brokers who aggressively promise cheaper insurance without understanding the full range of their client’s risks expose themselves to significant liability. The reason an insurance program may be costly is that the insurer needs to collect a premium commensurate with the risk it has assumed. High premiums are the beacon denoting higher risk.6. Brokers need to understand the limi- tations of the policy. In this case, the client believed that he had a blanket property insurance limit, but the insurer thought that a separate sub-limit applied to each location. The broker did not seem to understand the difference between the two concepts.

Commercial Break Karen MacWilliam

The Difference BetweenPrice and VALUE

Joint Venture Opportunity –Fort McMurray Insurance Broker

Owner of two registry agent offices in FortMcMurray is seeking an insurance industry joint venture partner to open an insurance brokerbusiness in conjunction with its motor vehicleand licensing registry businesses.

Registry owner has existing office space,equipment, furniture, access to staff & staffhousing, as well as start-up capital.

Seeking an experienced insurance operatingpartner who has experience in the broker industry and is certified to provide broker services.

Operating partner to manage and operate the insurance office on a day to day basis.

Interested parties may contact:Scott Mather at [email protected] (780) 757-9866.


7. When taking on new business from another broker, there is no shortcut regarding information gathering. Brokers need to start with a clean slate and gather underwriting information for themselves, rather than relying upon information already gathered by others and assuming that it’s accurate.8. While I am probably preaching to those already “converted,” as an industry, we must demand more prompt issuance of policy documents. Policyholders cannot possibly analyze their current cover-

age when documents arrive months after the expiry date. The lawyers handling this file were aghast when I told them that late delivery of policy documents was the rule, rather than the exception.9. Brokers should be candid with clients about which insurers have a reputa- tion for being confrontational with claims. We know that there is a difference between price and value, but many brokers and their clients refuse to differentiate among insurers based on service rather than price.

10. When a loss takes a nasty turn, brokers should self-analyze to learn lessons. Did you do your best job? What could you do better? Do other files have the same potential problems? A problem is an opportunity to do an overhaul and enhance quality. Unfortunately, the first part of this story ends badly. This policyholder couldn’t survive the delay during the slow march to litigation. A long-running business, which acted prudently and bought insurance, is in receivership and dozens of employees have lost their jobs. I will not relish any time in court.

[email protected]

KAREN MacWILLIAMis a insurance and risk

management consultant

Who? What? Where? Darrell Verbonac

We’ll start off with best wishes to Bill and Jackie Krywolt of Western Finan-cial Group’s (WFG) Coleman office who are retiring after many years in the insurance business. They were in the WFG fold the past few years and ran Vet’s Insurance for many years before that. Congrats go to Donna Adams on being appointed the new manager in Coleman. Donna is moving down from WFG’s Turner Valley office to take over from Bill and Jackie.

Out in Hanna, new to the WFG office is Jessica Taylor, while over in Drumheller, new to Centre Street Insurance is Amy Barnes, who was with the local Cooperators office. Joining the staff at Airdrie Insurance is PadminiJagasia who was with A-WIN Insur-ance’s Westwinds Drive NE office.

On the A-WIN front, Harcharan Parhar closed his Westwinds Drive NE operation and sold his book to another A-WIN broker, Jessie Singh, who is located on Westwinds Crescent NE. In addition, Ken Williamson moved into A-WIN’s head office on Bonaventure Drive SE, while new to the staff there is Jan Mitchell.

In other shifts, Betty Easson moved over to BFL Canada from Marsh, Chris Kovalik started with Bell David-son Insurance, and Greg Mudry joined Toole Peet, having previously been with Rogers Insurance. Wedding bells rang (last September but I just heard about it now) for Jason Stallard of Hub International when he tied the knot with Amber Mader.

New locations• Finning Canada opened a Calgary insurance office, up at 67th Street and 11th Avenue NE, which is being run by David Lee.• Costen and Associates opened a second Calgary office at 31st Avenue and 26th Street NE, staffed by Amjad Nazir.• Rigby Insurance moved into new premises located at 4610 MacLeod Trail SW after being in the beltline area for many years. • CPIX Ltd. and Energy Insurance Group moved to 350 - 7 Avenue SW.

On the acquisition front, Desjardins Group acquired Western Financial Group with the closing expected at the end of March 2011. This involves all of WFG’s operations throughout Western Canada, including insurance, financial services and banking.

Andy Hall left GCAN, joining CNA Financial Corporation as a vice president in its Seattle office, while Dan Nakonechny returns to the west after being with RSA in Toronto as the new CNA branch manager in Calgary.

Also joining CNA from GCAN’s local office is Bruce Mosher, while another one leaving GCAN was Jeff Danburger who went over to Zurich. At Intact, Susan Stubbs has made the move from personal lines underwriting into the company’s marketing side.

Concours Collision has joined CSN Collision and Glass and changed its name to Concours Collision Centres – CSN; Ken Friesen remains president of the local firm.

The Risky Rocks Insurance Curl-ing league held its annual bonspiel out in Canmore on January 22nd, and the winning team was comprised of John Towler, Cliff McNeil and Ron Murphy.

I do want to make mention of the passing of two long-time industry people. Dick Carmichael, who retired a few years ago after a long career with General Accident and Prudential, died in late December while on a trip to Winnipeg. John McInnes, of JB Insur-ance in Grande Prairie, passed away in early January after a battle with cancer.

darrell.verbonac@axa-pacific .ca

DARRELL VERBONACMarketing Manager,

Calgary BranchAxa Pacific Insurance



While new business is always wel-come and commercial customers can generate significant revenues, this com-bination is ripe with opportunities to make mistakes. Twenty-eight percent of the errors and omissions (E&O) claims reported to Westport Insurance Com-pany, a provider of professional liability coverage to insurance brokers all across Canada, involve business placed for new clients and 39% of claims reported by those same brokers involve commercial lines policies. The following situation demonstrates how easily things can go wrong. A couple of months ago, Bob, the owner of Bob’s Manufacturing, a mid-sized business in town called your firm. You first met Bob about a year ago at a chamber of commerce meeting and since then you have been subtly hinting that your brokerage is very interested in doing business with his company. Finally, he seemed agreeable to at least talking with you about his company’s insurance needs and you made an ap-pointment for the following week. Bob came to your office with a stack of papers, files, policies and note pads under each arm. He apologized for the mess as he laid everything on your desk. “This is a very busy time of year for me, and I don’t have much time to talk,” Bob explained. “I think my current liability and property policies are fine, but my premiums are too high. I want you to get me a quote to duplicate the coverage I have in place. Hopefully, you can save me some money, OK? I’m sorry I don’t have more time, but I need to get back to the office. Call me with any questions.” While you were thrilled at the pros-pect of adding Bob’s Manufacturing to your list of clients, you were a little intimidated by the disorganized stack of papers on your desk. “When and how will I ever have time to go through all of this?” you asked

yourself. “Where do I begin?” Your answers could very likely determine whether you and your firm will face a professional liability claim. Your staff was overwhelmed with a combination of year-end deadlines and the typical rush of a busy and success-ful brokerage. You assigned Polly, your most experienced and diligent em-ployee, to review Bob’s prior insurance policies and file materials. She began by making careful notes about the cover-age forms and endorsements, includ-ing additional insured endorsements. Unfortunately Polly was interrupted several times to assist co-workers with other projects. When she sent a request to bind coverage to Acme Insurance, she did not realize that the request did

not list three additional insureds, which had been recently added to Bob’s cur-rent liability policy. Acme quoted a lower premium and your firm bound coverage. Acme issued the policy and sent it to Bob’s Manu-facturing with a copy to your office. Bob placed the policy in his file cabinet without looking at it. Polly placed the policy on her desk fully intending to review it for accuracy. Unfortunately, the Bob’s Manufacturing policy became part of an ever-growing stack of poli-cies on her desk needing attention and she never got around to reviewing the document. As luck would have it, Bob’s Manu-facturing had a liability loss soon after the new policy was placed. While the

Know E&O Brian Snyder

Brokers Beware: The newcommercial customer

carrier acknowledged that Bob’s Manu-facturing was covered, it denied cover-age for a third party, which had been an additional insured on Bob’s prior liabil-ity policy. Stunned by the denial, you reviewed the prior and current liability policies and quickly determined that your brokerage failed to list this ad-ditional insured on the request to bind coverage. Before you had time to report this situation to your E&O carrier, Bob stormed into your office holding the carrier’s denial in his fist. Placing polices for a new commercial customer can be a daunting task. There is much information to be gathered and customers may not want to take the time to sit down with you to review all the information that you need to fully assess their insurance needs and place the appropriate coverage. Instead, you may need to begin the process by wad-ing through the customer’s papers. In such cases, it is imperative to organize and review in detail all the documents you receive. If the customer provides you with a current policy it is critical to review the wording carefully, includ-ing all endorsements so that you have a firm grasp on the coverage that is in place. In addition, you need to follow up with the client to fill in any gaps in the information. Finally, make use of every opportunity to confirm that your request for cover-age is complete and accurate. Double check the application and request that your customer confirm the information is correct by signing the application. Carefully review any initial binder as well as the final policy wordings. The last opportunity to catch any mistake comes when you receive the policy. It is critical to review the wordings in detail to confirm that the forms, endorse-ments and even the list of additional insureds are complete and correct. The final version of the policy often contains different terms from those requested in an application. The broker that catches these mistakes before it is too late is in the best position to avoid an E&O claim.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any par-ticular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be

considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice.


BRIAN SNYDERAssistant Vice President

of Claims and Liabilities Swiss Re

www.swissre.com

As this 2010-11 education year begins to wind down, I’m struck by changes spearheaded by customer service. In this piece, I examine how over the last year IBAA’s courses and educational prac-tices have related to the 2011 conven-tion’s theme: “The Connected Office.”

Investigate In February 2011, we asked for your feedback on seminar content and meth-ods. At the point of writing this report, preliminary results show strong support for email notification of upcoming courses. We plan to continue sending IBAA E-News bi-weekly, IBAA Edu-cation monthly, and one-offs for any urgent notifications. If you have trouble receiving these emailed newsletters, ensure you add IBAA to your email safe list and/or contact me ([email protected]). Preference was shown first for email registrations and second for website registrations. Our emailed newsletters link to IBAA’s website for registration. We hope that, as we move forward, registration through our new website will become more reliable (apologies: our old domain became corrupted) and more convenient than attaching a printable registration form to an email. The completely automated and secure

method of registration through our new website will ensure timely process. Half-day seminars were the most desired, followed by seminars or lunch ‘n’ learn at a brokerage and time of your choice, full-day seminars and webinars.

Respond IBAA anticipated the support for in-house training and other means to make courses accessible throughout Alberta. One of our new courses was a discussion group for Licensing Level 2 in Grande Prairie led by Matt Zakresky (B.Com., CAIB). We aim to fit our courses to your needs and schedules. Contact IBAA ([email protected]) if you are interested in immersion, discus-sion groups or seminars for any courses. If interest demands, we are committed to deliver. In an effort to increase CAIB enrol-ment in Calgary, Joy Turchanski is looking at options such as increasing the number of immersion courses. She plans to contact brokers in the Calgary local council for their input. For April and June, we have added Calgary lunch ‘n’ learn sessions, which previously ran only in Edmonton. We continue to run the E&O seminar (re-quired for the discount from Westport/Swiss Re) in several locations twice a year. The webinars we have recently added to the curriculum have proven popular, so we plan to expand the number and topics. These courses bridge the detail and personal contact of in-class learn-ing with online flexibility for location. To encourage independent brokerage engagement, we offer group discounts to those interested in registering a number of participants who will use one computer terminal (one IP address

and one login). If you have suggestions for webinar topics that you would like to see, please contact Crystal Cadieux at [email protected]. In March, IBAA and PYIB jointly sponsored two seminars in Edmonton, Calgary and Lethbridge to ensure we offered topics appealing to younger brokers. The courses demonstrate the commitment of the PYIB education committee.

Entice Speaking of hot topics, the Social Media and Web Strategy seminar in Calgary, Edmonton and Red Deer was very well received. Gord Enders said, “This was a very valuable seminar. It opens your eyes to the whole social me-dia movement and the need to be using it as a business tool. The next seminar we need is a how to—how to set up your social networking sites, a practical hands-on working session.” Thanks, Gord. That comment gives us further direction too. Sharon Johnson and Ca-leb Maksymchuk both emphasized the clear ideas from the seminar that could be integrated simply. On a more personal note, IBAA operations manager Lori Bartlett, executive officer George Hodgson and president Mardene Watson delivered information about IBAA education, including a demo of the VOLT videos, in a tour of the local councils. The education year is not yet over. In addition to the ongoing self-study and online courses, IBAA will be offer-ing several courses this spring. Take a look at our calendar and schedule your professional development plan.

ELLEN QUIGLEYCommunication

Co-ordinator,IBAA

[email protected]

Focus on Education Ellen Quigley

In the Driver’s Seat:How Members Drive

IBAA Education



SEMINARS

E&O Loss Control3.0 CE credits

April 4, EdmontonApril 5, Red DeerApril 6, Calgary

April 7, Medicine Hat

Commercial General Liability: Fusing Growth and Retention

Strategies 3.0 CE creditsApril 4, EdmontonApril 5, Red DeerApril 6, Calgary

April 7, Medicine Hat

Commercial Lines Hazards and Controls 3.5 CE credits

April 12, EdmontonApril 14, Calgary

Manufacturing: ProductsLiability and Quality Control

Programs 3.5 CE creditsApril 12, Calgary

April 14, Edmonton

Lunch ‘n’ Learn:Fidelity Crime 1.5 CE credits

April 20, EdmontonApril 21, Calgary

Lunch ‘n’ Learn:Dealing with Complex Issues -

Technology 1.5 CE creditsJune 7, Edmonton

June 8, Calgary

WebinarResidential Building

Construction and Insurance-to- Value Concerns 2.0 CE credits

June 9

LICENSING

Level 1April 4-9, Calgary

May 2-7, EdmontonMay 30-June 4, Calgary

Level 2April 18-20, Calgary

May 25-27, EdmontonJune 13-15, Calgary

IBAA Education Spring Calendar


Since 2002, I have had the pleasureof meeting many members of the Insurance Brokers Association of Alberta (IBAA). IBAA members are great people who go out of their way to ensure that their friends, neighbours and community are taken care of and protected. What I appreciate about the IBAA isthe consistent, straightforward and respectful advice and insight that helps government make balanced and informed decisions. Over my time as Superintendent of Insurance, the insur-ance industry faced a series of chal-lenges and opportunities, especially the significant reform of the auto insurance system, which was implemented in 2004. Agents and brokers made signifi-cant contributions through honest hard work, and I recognize that there were economic implications for you. This effort contributed to a stable insurance system that is now amongst the best in Canada, and has regained the confi-dence of Albertans. The auto insurance system has achieved the principles of: • available, accessible insurance products;

• affordable insurance products; • a competitive industry; • sustainability; and,• fairness in the system. I would like to take this opportunity to commend, again, the IBAA for continuing to improve customer service and transparency within the insurance industry. This is critically important work to ensure the continued success of a healthy market in which consumers are informed, empowered and satisfied. As I leave this position to take on new responsibilities, I am encouraged that the members of the IBAA will continue to be leaders within the insur-ance industry and will continue to voice the concerns of their customers and their members. I hope you do.

Thank you for the opportunity to work with you.

Parting WordsIBAA past presidents share their

thoughts on Dennis Gartner Dennis is a good friend of the Alberta insurance broker. He would always listen to what brokers had to say, and valued our opinion and input. I could not imagine what it would have been like to go through auto reform without Dennis’s support for the Al-berta broker. Best wishes and thank you.

– John Rigby, 2001-02

It was a great pleasure to have worked with Dennis as we went through auto reform back in 2004. Dennis had a tough job in satisfying Government and Albertans’ interests and also the industry’s wishes. Throughout the whole time we worked together, Dennis was forthright in what he needed to ac-complish but yet was willing to listen to reason and good business practices, which left a sound and stable industry. Best wishes to Dennis in the coming years!

– Mark Zemp, 2003-04

I was president for the 2004/2005 year and probably caused the most sleep-less nights Dennis had in his tenure as the Superintendent of Insurance. 2004 was the year brokers were introduced to changes to rating of insurance premiums in our province now known as grid. Although at the time it was a tumultuous item, Dennis handled the IBAA and our members with the utmost sincere determination to minimize the hurdles that were produced by the changes.

– Jim Harris, 2004-05

When dealing with Dennis there was no BS; he always called a “spade” a “shovel”. Thanks Dennis!

– Ralph Zutter, 2006-07

Dennis was a fair man, who wanted what was best for all Albertans. He was a good listener. He treated the association with great respect. I was fortunate to have been able to work with him.

– Ken Dueck, 2008-09

Dennis has always been accessible and easy to talk to. He has dealt respectfully with us and in turn has earned ours. We wish him well in his future endeavors.

– Mardene Watson, 2010-11

DENNIS GARTNERSuperintendent

of Insurance,Government of Canada

[email protected]

The Superintendent Dennis Gartner

A Fond Farewell

the tradeshow become a get connected · 2018. 4. 4. · april - may 2011 cdn publication mail...

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