Author Archives: IBAO

  1. Ontario Brokers Come Together at Largest Insurance Convention in Canada

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    (Toronto, Ontario) The Insurance Brokers Association of Ontario (IBAO) is hosting its 97th Annual Convention October 25–26th in Ottawa. The biggest issue of discussion at its Members’ Meeting is the future definition of IBAO membership, specifically a critical vote to determine the membership definition and associated bylaw and governance structure modifications to support any agreed upon change.

    “It’s essential that members use their voice and vote on this critical topic,” said IBAO CEO Colin Simpson. “We need input regarding potential changes to how we define our membership and the governance framework through which members will ensure their voice is heard. As an association we need to develop a target membership definition that will best serve brokers in the industry now and in the future.”

    This year condensed to a 2-day event, the IBAO Convention features both a broker focus and an insurer focus.

    “We wanted to be even more efficient with this year’s agenda,” said IBAO President Traci Boland. “The first day is centered on brokers and the second day features the insurer side. There’s a deliberate emphasis on industry collaboration and the need to better align on all fronts – technology, regulation, broker advocacy. Convention’s the perfect time to examine new ways of delivering an enhanced customer experience, whether that’s directly through brokerage processes or through insurer partner products and procedures.”

    Every year the IBAO hosts a CEO Panel featuring its insurer sponsors. Due to last year’s success, this year will follow a similar format where CEOs will address attendee questions based on real-time feedback. The panel will be facilitated by former journalist and returning moderator Jim Harris. At this time, Economical Insurance, Gore Mutual, Intact Insurance and RSA Canada have confirmed their participation.

    “We greatly value our insurance partners,” said IBAO CEO Colin Simpson. “We want to provide a platform for our members to ask first-hand about the decisions they’re making and the directions they’re choosing to take. We’re all in the midst of planning the future of our businesses – it’s important to align with partners who have brokers at the forefront of their distribution strategies, who add value to the broker network.”

    Other key Convention highlights include:

    * Keynote John Herdman – Coach of the Canadian Women’s Soccer Team, on how to run a high-performing team
    * BIP Talks – 5 half-hour presentations from experts in and outside the industry including Google Canada Head of Marketing Fab Dolan, Networking Strategist Derek Coburn, BMO Business Finance Expert Colin Clahane, CW Group Partner Eric Walker, Auto Insurance Adviser David Marshall, Insurance Bureau of Canada CEO Don Forgeron and hand-selected technology vendors ProNavigator, Rocket Referrals and Eddy Home
    * The IBAO Awards of Excellence Gala honouring Brokerage, Young Broker, Affiliate and Innovator of the Year, featuring comedian James Cunningham and Toronto-based band Electric Blonde
    * Insurer Town Halls with Economical Insurance, Gore Mutual, Intact Insurance, the Guarantee, RSA Canada, Travelers Canada and Wawanesa Insurance
    * The largest insurance industry tradeshow in the country featuring over 125 industry partners

    “Any broker considering the future of their business, implementing technological improvements to meet consumer expectations, wanting to attract millennials or generally looking for inspiration, networking opportunities or education should attend this year’s Convention,” says Boland. “I personally invite you to join the IBAO this October as we celebrate Canada 150 and our 97th year hosting this incredible event.”

    The IBAO Convention takes place October 25–26th at the Shaw Centre and Westin Hotel in Ottawa. Register at events.ibao.org/convention.

  2. Own Your Brokerage? Know How to Value your Asset

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    How has valuation played out in the broker channel? How will it in the future?

    At our upcoming BIP Talks at this year’s Convention, we’ll be joined by BMO‘s Director of Business Finance Colin Clahane and CW Group Partner Eric Walker in The Broker Valuation Trap. Here we ask our presenters for the inside scoop.

     

    TELL US A LITTLE BIT ABOUT YOURSELF AND YOUR EXPERIENCE WORKING ON BROKERAGE VALUATION.

    Colin: By way of introduction, I’m a Bank of Montreal (BMO) National Director within the corporate bank headquartered out of the First Canadian Place Tower in Toronto. My background extends across several primary banking pillars inclusive of investment banking, sell side equity research, strategic planning, corporate finance (M&A) and large corp. debt lending. Most pertinent to this discussion, I also helped spearhead the broker loan and investment portfolio for a major Canadian P&C insurance carrier for over 4 years.

    I represent the bank’s primary insurance specialist, having closed numerous deals in the Property & Casualty space over the past six years. I work closely with our National Industry Programs Team to set direction and provide value-added product offerings for brokers that support each stage of the brokerage lifecycle. I’ve been with BMO for close to 2 years.

    Given my expansive network in the insurance space, my contact base is national in scope. From an academic perspective, I completed the McGill MBA program and have earned my Chartered Financial Analyst (CFA) designation – both of which delve extensively into valuation methodologies.

    Eric: I started my career in the Small Business Advisory Group at Ernst & Young in 1980 and continued in this practice area from 1988 to present as a founder of Cookson Walker, now CW Partners. I have a number of designations including my Chartered Professional Accountant (CPA), Chartered Business Valuator (CBV), Corporate Finance (CF) and Certified Fraud Examiner (CFE). Since the 1980s I’ve provided financial consulting services including business valuations and divestiture advice to insurance brokers across Canada. CW Partners has advised brokers in over 40 transactions over the past three years.

     

    WHY IS IT IMPORTANT FOR BROKERS TO HEAR YOUR BIP TALK?

    Colin: The merits of the presentation entail an open dialogue around valuation from the optics of both the buyer and seller. We’ll delve into concepts to get your brokerage “sale-ready” along with raising certain pitfalls for buyers.

    Eric: For most insurance brokers, their brokerage is the most significant asset to their overall net worth. Understanding what makes this asset valuable is crucial.

     

    IS THERE A SENSE OF URGENCY BEHIND YOUR MESSAGE? IF YES, WHY?

    Colin: The consolidation tsunami industry-wide is not likely to cease anytime soon. With multiples more heated than ever and transactions being undertaken at new precedent price ranges, brokers need to be equipped with a proper methodology to transact.

    Eric: I think the topic of brokerage valuation is always interesting as this sector has always been active. What gives the subject a little more urgency now are historically high prices, and the fact the baby boomer generation has now reached the ages of 50 to 69 years old.

     

    We look forward to hearing more October 25th in Ottawa. Register for Convention prior to September 22nd to take advantage of early bird pricing.

     

     

  3. Brokers Own Majority of Market Share Across Most Major Categories

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    Market share and ranking information for every line of business across all provinces was recently released by MSA Research in their 2017 Market Share Report. The report included a breakdown of distribution type: broker writers vs agency and direct writers. In most major categories, insurers distributing through insurance brokers hold the majority of market share; this is particularly true in the Commercial Lines space.

    However, market share trends year over year reflect a slow decline in market share in most major categories, specifically with respect to Personal Lines. While the value proposition of using an insurance broker may seem like an obvious choice, there’s still work to be done to adapt our service model to respond to evolving consumer needs and expectations. As your association we understand these trends and have created a strategic plan that focuses on technology, consumer awareness and insurance company advocacy. We’re confident that combined, these objectives will lead to growth in market share from the insurance broker channel in Ontario.

    Click here for market share stats.

  4. Top 10 Reasons to Attend #IBAO17

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    1. We’ve been planning it all year. Literally from the Monday following last year’s Convention we were back at the table discussing what worked and how we could up the inspiration and engagement at this year’s event. We listened to your feedback, chatted with our sponsors and have created a more effective, more valuable event.

    2. We’re in Ottawa for Canada 150. And we intend to celebrate with true Canadiana woven throughout all aspects of the event. The city’s seen some impressive developments and is hosting once-in-a-lifetime experiences in light of the occasion and we plan on taking full advantage once the weekend hits – this year beginning on Friday.

    3. That’s right! We’ve shortened this 97th Annual Convention to 2 jam-packed days. No more Friday morning education sessions or town halls; the schedule’s been rejigged to start your weekend early. We’ve always wanted to end with a bang on Hospitality Night – this year we’re doing it.

    4. Keynote John Herdman, Head Coach of the Canadian Women’s Soccer Team who won bronze at the 2012 and 2016 Olympics and gold at the 2011 Pan Am Games. Find out what high performance culture looks like, how you can implement learnings from a high performance team and leverage your role as a leader to inspire trust, confidence and success within your brokerage.

    5. BIP Talks – Ted Talk inspired presentations from experts inside and outside the industry. Hear from Google Canada Head of Marketing Fab Dolan, Networking Strategist Derek Coburn, BMO Business Finance Expert Colin Clahane and Auto Insurance Adviser David Marshall in these half-hour presentations that will impact your business.

    6. Our app is back. Remember last year’s app? It was Facebook on steroids. This year’s going to be crazier.

    7. Insurer Town Halls. These were a hit last year but took place on dreaded Friday morning. This year we’ve created a full insurer lineup starting with our CEO Panel – a similar take on last year’s success with former journalist Jim Harris putting CEOs in the hot seat, Insurer Town Halls in the afternoon (hot seat #2) and beloved Hospitality Night wrapping this event the way it should be. FYI we’ve heard things are Canadian themed this year.

    8. Our tradeshow, bigger than ever before with 125+ exhibitors.

    9. Electric Blonde. Traci Boland. Come on.

      

    10. Everyone’s going to be there. See you October 25–26 at the Shaw Centre in Ottawa for Canada 150!

     

  5. Insurance Brokers Across Ontario Respond to Changing Consumer Needs

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    (Toronto, Ontario) The Insurance Brokers Association of Ontario (IBAO) shared an important message in their recent webcast Electronic Communication with Customers: Horizons for Brokers.

    “This isn’t just about the automation of liability cards,” said IBAO CEO Colin Simpson. “We’re at a tipping point. Brokers’ response to this change in the marketplace will lay the foundation for the future development of consumer service in Ontario.”

    In their April budget, the Ontario Government announced the introduction of electronic liability cards and discounts if consumers choose to receive documentation electronically:

    Distributing documents electronically, including proof of insurance and other documents such as policy renewals will enhance consumer convenience and result in savings for insurance companies. To ensure these savings are passed along to the consumer, the government will require that insurers offer a discount to policyholders who choose to receive documents electronically.

    Although the introduction of electronic liability cards is currently expected toward the end of this fall, full details have yet to be disclosed.

    Said Simpson: “Consumer interests are the foundation of every Ontario broker’s business. Our members are proactively responding to changing consumer needs by ensuring their businesses are ready to support both of these initiatives.”

    Earlier this year, the IBAO set up a Technology Committee, a group of leading brokers within the technology space with a mandate to enhance a broker’s ability to respond to changing consumer needs through effective development and use of technology within Ontario. The initial step was an industry position paper Electronic Communication with the Ontario Consumer to provide guidance in the marketplace. It was issued in May with the full support of all insurance broker associations across the country.

    Mid-July, the IBAO hosted a webcast for brokers and industry partners outlining existing technology solutions and implementation steps. Additional training sessions have been scheduled with vendors to ensure brokers have the most up-to-date information on how to prepare their businesses for the coming market changes.

    The IBAO continues to work with multiple insurance partners to ensure full collaboration across the industry.

    “It’s imperative we’re all working toward the same goal,” said Simpson. “We must ensure brokers have what they need to service consumers electronically. Although there are only a few months for brokers to adapt their business models, there’s wide support across the industry to ensure it’s done efficiently and effectively. We’ll continue to work with all stakeholders, government officials, insurers, technology vendors and in particular our members to ensure we create a clear roadmap on how we as an industry can and should work together to ensure consumer needs are taken care of.”

    Recently, IBAO member Josslin Insurance launched a new BMS-integrated client app providing access to coverage details, proof of insurance and the ability to chat with a broker, request changes and report claims.

    “Engaging clients how they want to be engaged and providing them with more meaningful experiences is what Josslin’s all about,” said Josslin Insurance Partner Scott Wagler. “It was only a matter of time before electronic proof of insurance was legalised. Now that there’s incentive built in for consumers, it’s crucial we adapt our brokerage business models to provide this service and continually think of other ways to enhance our businesses.”

    Adds Simpson: “Electronic proof of communication and document delivery is only the beginning.”

    Recording of Electronic Communication with Customers: Horizons for Brokers Webcast: https://events.ibao.org/education/e-learning/
    Info Sheets: Vendor Table + Vendor Handouts

  6. IBAO & Intact Partner to Deliver Information to Customers Electronically

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    (Toronto, Ontario) The Insurance Brokers Association of Ontario (IBAO) is fully committed to working with its broker network and industry partners to find solutions that deliver information more efficiently to customers in the way they want to receive it.

    IBAO and Intact Insurance Company (Intact) have created a working group between Intact and IBAO’s Technology Committee to explore ways for brokers to integrate Intact’s new Client Centre with their existing systems such as a BMS or other online gateways. This newly-formed group will also consider scenarios based on future digital developments.

    “This collaborative initiative with Intact demonstrates how we can all Come Together in the marketplace to further consumer interests as well as benefit the broker network,” said IBAO President, Traci Boland. “We are very pleased to be working with Intact at this pivotal point in time in our industry.”

    “Client Centre can be accessed directly from a brokerage website via a connection provided by Intact so that brokers remain the central point of contact for their customers,” said Debbie Coull-Cicchini, Senior Vice President, Intact Insurance, Ontario Division. “We strive to make things easier for brokers and their customers; this working group will explore additional ways to support the broker network in its efforts to increase service options and elevate customer service levels within our industry.”

    In light of the recent Government of Ontario budget announcing a discount for customers who choose to have their policy documents delivered electronically, pressure to provide service options is on the rise. Full details have yet to be disclosed, however the introduction of electronic liability cards expected in 2017 will be the first major launch of broad, electronic communication to Ontario consumers.

    There is industry-wide agreement that we must evolve our collective technology infrastructure as we face inevitable competition from within and outside the industry.

    INTACT’S CLIENT CENTRE
    Intact will soon launch Client Centre, an online solution that provides brokers and their customers with secure, 24/7 access to policy documents, billing statements and real-time claims status updates. Brokers will be able to offer customers a choice to use Client Centre – a new, paperless way to access their insurance information conveniently. In addition, brokers will benefit via the ability to:

    * Co-brand Client Centre with their brokerage logo
    * See what customers see
    * Save time by reducing administrative touch points and focus on providing value-added services

    “The IBAO and Intact commit to ensuring that our joint capabilities are fully leveraged to enhance the broker/consumer value proposition,” said Boland. “More details on how Intact’s initiative will support our members’ relationship with their customer base will follow once the working group is underway. There is still much to do to assist our members in responding to evolving market conditions and the IBAO’s Technology Committee is working on projects with several other industry stakeholders. We will develop an action plan that includes a comprehensive road map of all of these industry initiatives which we look forward to sharing with members in early July. This collaboration with Intact is the first of many such initiatives.”

     

  7. IBAO Issues Position Paper on Electronic Communication with the Ontario Consumer

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    (Toronto, Ontario) Yesterday, the Insurance Brokers Association of Ontario (IBAO) released a position paper in light of the Ontario Government’s 2017 Budget, specifically “that insurers offer a discount to policyholders who choose to receive documents electronically,” a requirement the government’s putting forth to ensure any savings are passed along to the consumer. Titled Electronic Communication with the Ontario Consumer, the paper outlines how insurance industry stakeholders can work with the broker channel to ensure their consumer value proposition is upheld.

    “Insurance companies across Ontario are launching or have launched consumer service portals and mobile applications to provide their policyholders access to information electronically, including proof of insurance,” said IBAO President Traci Boland. “While we applaud these initiatives, we must ensure that the primary vehicle for electronic communication with consumers is provided by insurance brokers.”

    “If accessed directly by consumers, insurance company solutions will lead to multiple avenues for individual consumer communication,” said IBAO CEO Colin Simpson. “Creating multiple access points for a single consumer to obtain electronic communications, including e-documents, could be detrimental to the Ontario consumer. Not only will it cause confusion if consumers have different company policies and avenues to access them, it’ll create a fragmented consumer experience and ultimately dilute the broker-consumer value proposition and collective broker brand.”

    The position paper outlines the importance of the broker channel driving the digital experience with Ontario consumers: insurance company platforms must allow brokers the option of providing electronic documents through a broker-chosen solution – a component that’s imperative in providing consistent service models to consumers.

    “We’re dedicated to finding solutions that efficiently deliver customer information the way customers want to receive it,” said Simpson. “We’re having many positive conversations with our insurance company partners on their consumer service strategies. More information will become available as we progress in these joint efforts.”

    The position paper was created by IBAO’s Technology Committee – a group of technology-driven brokers across the province, and has full support by insurance broker associations across Canada.

    POSITION PAPER: ELECTRONIC COMMUNICATION WITH THE ONTARIO CONSUMER

     

  8. 2017 Young Brokers Conference – Brains on Fire

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    How much information can you absorb in a day? In four hours? For the 120+ young brokers in attendance at this year’s Young Brokers Conference in Niagara Falls, the answer is a lot.

    Kicking off the event June 7th was our Opening Night Party sponsored by Travelers Canada. Kudos to Travelers for sponsoring this event since the conference’s inception thirteen years ago. With the theme of brain power in full force, the 30+ Travelers reps and 120+ conference participants participated in a pub-style trivia night. Who would have thought information on insects and the Periodic Table would be so handy? And how did this group know about The Honeymooners?

    Content and context was in abundance Thursday morning. Kicking things off was insight from event sponsor Kanetix on consumer marketing tactics and mastering the digital sphere. Candidly sharing benchmarks, wins/losses and tripwires to look out for, Andrew Lo and Kelly Emery articulated the ways consumers like to be engaged, with data to prove it. Did you know website visitors who are retargeted with ads are 70% more likely to convert into customers?

    Recognizing office inefficiencies was the role of CSIO, also a key sponsor of this year’s event. Understanding the cost that these inefficiencies bring to any workplace, paired with the cost/benefit of implementing new technologies lit off lightbulbs throughout the room. A simple implementation of EDocs could lead to interesting cost savings – all the more money to spend on fun marketing projects. Using CSIO’s EDocs Saving Calculator, some of the teams calculated $11,500 in potential savings.

    A relatable presenter and young broker himself, Adam Mitchell (IBAO’s Innovator of the Year) explained how to calculate growth targets. Some simple math paired with examples from his brokerage was invaluable as young brokers pondered what business decisions they’d make over the course of the conference. Sharing a comprehensive chart of lead sources relative to conversion rates was eye opening. Sometimes the biggest lead sources don’t lead to the biggest bang to your bottom line. Big thanks to Adam who not only presented content but stuck around to offer advice and direction.

    Gore Mutual – a staunch supporter of young brokers and the IBAO – brought it home on the topic of retention. Most brokerages have excellent retention rates but Gore encouraged brokers to ensure clients see the love. Make them more than just customers – make them your biggest fan. We’ve heard the stats before, but have you really assessed their impact? It costs 7x more to acquire a new customer than to retain an existing one; 9 out of 10 shoppers switch to the competition after a bad customer experience.

    The T-R Group’s Tony Pilon, our HR Affinity Partner, discussed how to build teams and structure roles to best meet business strategies. We were grateful for the tips – the infamous “Betty” from our case study generated quite the discussion throughout the course of the conference.

    Teams of 20 gathered in their strategy rooms to develop a plan. Their goal: increase their brokerage PIF count using the data provided in the case and the lessons learned from the morning’s presentations. Oh to be a fly on the wall.

    Five presentations delivered Friday morning using five different approaches with infinite number crunching, spreadsheets and strategic discussions… but only one winner. Congratulations to Team Purple for bringing home the $5,000 cash prize from Trillium Mutual.

    Special thank you to our sponsors, our judges and all our young brokers. See you next year!