SPRUNG SPRING HAS And so has the season for flood claims, political jockeying, and wide-eyed optimism
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SPRING HAS
SPRUNG
And so has the season for
flood claims, political jockeying,
and wide-eyed optimism
Publications mail agreement #43155015
www.ibas.ca
Volume 1, Issue 1 | May 2019
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INSURANCE BROKERS
ASSOCIATION OF SASKATCHEWAN
2631 – 28th Avenue, Suite 305
Regina SK S4S 6X3
Phone: 306-525-5900
www.ibas.ca
Derek Lothian
President & CEO
306-525-4075
derek.lothian@ibas.ca
2018-2019 BOARD OF DIRECTORS
IN THIS ISSUE
Dave Pettigrew (Chair)
Harvard Western Insurance
Get ready for The Insurance Act Jayne Gorrill (Vice Chair)
Hoffmann Kool Insurance
Well, it’s been a long time coming. But as of January 1, 2020, five years after
first being passed by policymakers, Saskatchewan’s insurance sector will be Peter Bennett (Secretary-Treasurer)
Saskatoon Insurance Agencies
officially governed by new legislation: The Insurance Act. We take a look at
what’s changing, what it means for your brokerage, and what you need to do to Tracy Archer
26 maintain compliance. Knight Archer Insurance
Sarah Edwards
Aberdeen Agencies
Extended Auto Advisory Committee releases recommendations
Only half of Saskatchewan drivers carry more than the $200,000 in minimum Chad Parenteau
W.W. Smith Insurance
third-party liability coverage that comes standard with licence plates,
leaving many individuals and families exposed to unnecessary financial Dave Reidy
risk. Now, after a year of consultation, research, and discussion, IBAS has Henderson Insurance
32 introduced a plan to bridge the gap.
Nicole Korpusik
Norquay Agencies
In the hot seat Jaycee Turtle (YBN Observer)
Lakeview Insurance
Every spring, the IBAS board of directors meets with executives from the
leading insurance companies operating in the province to learn more PUBLICATION CONTACTS
about their business strategies and discuss issues that matter to broker
For editorial inquiries:
members. In preparation for these meetings, we posed three questions to
Krista Clark
39 each company — and are sharing their responses with you. Editor
306-525-4078
krista.clark@ibas.ca
For advertising inquiries:
Regular Features 1-877-880-3392
ronda@rlmediaservices.ca
Published and designed by
8 In Camera with IBAS Board Chair Dave Pettigrew
Your priorities are our priorities RL Media Services
© Copyright 2019, RL Media Services.
12 Carrier’s Perspective All rights reserved. The contents of this
publication may not be reproduced by any
Doubling down on the broker channel means, in whole or in part, without prior
written consent of the publisher.
16 National Priorities
The devil is in the details Publications mail agreement
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20 CEO’s Notebook
Here’s (some of) what we’re working on
Return undeliverable Canadian copies
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4 SaskBroker Magazine | May 2019 publisher, its directors, officers, or employees.
2019 IBAS Community Leadership Award
Call for Nominations
I
nsurance brokers are woven into the very social and economic fabric of
Saskatchewan. They are the heartbeat of our communities, large and small
— champions for civic engagement, generous supporters of local causes,
and compassionate business leaders, who go the extra mile to provide their
neighbours with an unparalleled level of service and support. As an industry, it is
imperative we celebrate these positive impacts.
That’s why IBAS — in partnership with Saskatchewan Blue Cross — is launching
the Community Leadership Award. This award, to be presented for the first time at
the 2019 IBAS Convention Chair’s Banquet (Friday, October 18), will recognize the
outstanding contributions of one broker or brokerage that has went above and
beyond to make a difference in their respective community. These contributions may
be made through volunteerism, participation in or leadership of key local initiatives,
philanthropy, or other means of involvement.
Nominations close Friday, September 13, 2019. Self-nominations are encouraged.
Submit your nomination at www.ibas2019.ca/award.
Eligibility & Selection
• Eligible nominees include: Insurance brokers
(currently licensed or previously licensed for a
consecutive period of at least 20 years), brokerage
principals, or brokerage businesses operating in
Saskatchewan as of the date of nomination.
• Nominations must include a maximum 500-word
submission outlining the nominee’s relevant
community involvement and contributions (as well
as outcomes, if applicable), and a brief explanation of
why they should receive this award.
• The recipient shall be chosen by a three-person
panel consisting of: One former IBAS board chair (or
president), one representative from Saskatchewan
Blue Cross, and one non-industry representative to be
selected by IBAS management.
6 SaskBroker Magazine | May 2019
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In camera
with IBAS Board Chair Dave Pettigrew
Your priorities
are our priorities
By Dave Pettigrew, President & CEO, Harvard Western Insurance
S
pring is often regarded as a we accomplish that, however, is the by promoting insurance as a first-
time for renewal — a new year, million-dollar question, and the answer choice career pathway. This is the
with new resolutions and an must change with the realities of the pillar you will hopefully see the most
optimistic outlook on what lies marketplace. progress in over the coming year.
ahead. In many ways, it is the season for As an association, there are three From launching new CE courses to
improvement. fundamental things we do on behalf of rolling out the Saskatchewan Insurance
At IBAS, we’ve embraced spring our members. Workforce Development Coalition,
as an opportunity to sharpen our First off, we connect you to insight IBAS recognizes — and is responding
focus on how we provide value and and support, offering you access to the to — this call to action that was clearly
engage our members. The relaunch of information and resources you need articulated by members in our 2018
SaskBroker Magazine is emblematic of to make better business decisions. Broker Issues Survey.
that commitment — not in rebranding Strengthening this area was the And, third, we champion your
the same product, but in redefining the underlying reason for the overhaul of interests. Perhaps above all else, it is
product, the package, and the delivery this magazine. Adding new events, our role to be the unifying, trusted,
model altogether. such as the Broker Insights Roundtable and influential voice of Saskatchewan
The IBAS board has put a lot Series (which launched in February) insurance brokers with government,
of thought recently into why the and Saskatchewan Summit of Young regulators, carriers, consumers, and
organization does what it does. Why Insurance Professionals (the second other industry stakeholders. IBAS has
does IBAS exist? What are we here to annual iteration of which was held on taken this responsibility to heart, and
accomplish? And, do our members’ April 4), were also deliberate steps in that has been demonstrated in some
expectations align with our current that direction. The next phase is to of the exciting new initiatives that
priorities? evolve our member services portfolio have either recently happened or are
While there have been many beyond our E&O, Consumer Protection ongoing — the Extended Auto Advisory
variations to our ‘mission’ and ‘vision’ Fund, and broker website programs. Committee (Page 32), quarterly
over the years, the overarching purpose Secondly, we build the broker advocacy teleconferences, and
has, I think, remained largely the same: force. In other words: We work to Insurance Broker Day at the Legislature
Our mandate is to ensure Saskatchewan ensure you have access to the skilled (Page 24), to name a few.
brokers are recognized as the most labour necessary to compete and Keep in mind that, collectively,
trusted, knowledgeable, and consumer- grow — through education, ongoing these are lofty goals for any sized
focused distributors of insurance. How professional development, as well as organization, not to mention IBAS’s
“Our mandate is to ensure Saskatchewan brokers are recognized as the most trusted,
knowledgeable, and consumer-focused distributors of insurance. How we accomplish that,
however, is the million-dollar question, and the answer must change with the realities of
the marketplace.”
8 SaskBroker Magazine | May 2019
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“As an industry, we only grow when those around us grow.”
small staff. Under the leadership of of our ethos, it has really become files: Providing input to the new
our CEO Derek Lothian, the IBAS team ingrained in our identity and our Saskatchewan growth plan, workforce
has made incredible strides over the place in the overall economic and and skills development, federal
past year-and-a-half. But progress social picture of Saskatchewan. As an advocacy, and PST on construction
requires a sustained effort. So, as we industry, we only grow when those services. Stay tuned to future issues of
move forward, it is imperative members around us grow. SaskBroker Magazine for updates as the
continue to support the association That’s why, this past January, council rolls up its sleeves.
wherever possible. Join a committee. IBAS was proud to help found the Undertakings such as this illustrate
Consider allowing your name to stand Saskatchewan Business Council. Now how important collaboration will be to
for nomination to the IBAS board of comprised of more than 20 industry our future success — as a province and
directors. Indenture your employees in associations and business support as an association. We need you, and
IBAS training and events. Every little bit groups, this unique coalition has come your input, more now than ever before.
counts. together to promote the positive Member value starts with member
Finally, I wanted to take a quick contributions of Saskatchewan engagement.
moment to highlight an emerging businesses, and to proactively
‘fourth pillar’ IBAS has begun to advocate on common issues that Dave Pettigrew is the president and CEO
embrace: Business community enhance the competitiveness of the of Harvard Western Insurance and is
leadership. Although it has not province’s business climate. Initially, serving his first term as chair of the IBAS
historically fallen within the scope the council has identified four priority board of directors.
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CHESspecialrisk.ca E SoumissionsMontreal@CHESspecialrisk.caCarrier’s Perspective
Doubling down on
the broker channel
Wawanesa’s Carol Jardine chats with us
on technology, market trends, and the
benefits of being a mutual
By SaskBroker Magazine Staff
F
or our first iteration of Carrier’s rates to keep up with the rising cost of
Perspective, we sat down with claims.
Carol Jardine, president of Our customers are being impacted, “As a mutual insurer, we
Canadian P&C operations with and insurers and brokers are working take the long view. We
Wawanesa Insurance, to discuss her together to help Canadians better
company’s competitive position in understand why their premiums are look at decades — not
the Saskatchewan marketplace. Our going up. This includes educating fiscal quarters — and are
questions appear in blue, followed by customers on all the new insurance in this market for the next
Jardine’s responses in regular text. products that are available, as well as
what preventative actions they can take
100 years to provide the
What is your general perspective on the to protect their property from severe underwriting capacity our
Saskatchewan insurance market? weather events and reduce their risk of brokers need at a price
damage.
As a Western Canadian mutual that allows us to break
insurer founded in Manitoba, the
Prairies are part of our roots, and What is driving rate increases across even. We are committed
Saskatchewan is integral to who we are. Canada? to this, irrespective of
We have been building relationships While I can’t comment specifically other insurers who have
here with brokerages of every size on Saskatchewan auto insurance, as
and scale for generations. We are
left the province or may be
we do not compete with the province’s
committed to supporting the growth public insurer, nationwide, rates are contemplating retreating
of the Saskatchewan marketplace and being impacted due to the rising cost of from the Saskatchewan
continuing our strong partnerships with
independent brokers who share our
vehicle repair and injury recovery. market.”
The increased frequency of extreme
commitment to service and community. weather events is clearly impacting
When we look at Saskatchewan, we us all, too. Smaller and more frequent
see lots of opportunities — for us, and ensuring that our customers understand
severe weather contributed to $2
for our brokers. But, even so, there are the value of their insurance policies, and
billion of total catastrophes in Canada
challenges ahead for all of us. that the premium impact is minimized,
in 2018. Last year alone, summer
fair, and transparent. We don’t take
storms across the Prairies caused
Challenges such as? lightly the effect rising premiums have
more than $240 million in insured
damage. The conversation regarding on our policyholders and we’re working
Market conditions in the Canadian
industry have become more challenging climate adaptation and disaster risk hard to spend their premium dollars
of late. Brokers across the country management is at an all-time high. This carefully.
are telling us they are facing reduced is our new normal — not ‘one in 100- As a mutual insurer, we take the
underwriting capacity, and we know year events.’ long view. We look at decades — not
underwriters — including ours at The challenge we have as an insurer fiscal quarters — and are in this market
Wawanesa — are having to increase is to manage these rising costs while for the next 100 years to provide the
12 SaskBroker Magazine | May 2019Our Light
Our Light
is Always On
is Always On
WWW.LAKEVIEWINSURANCE.COM
WWW.LAKEVIEWINSURANCE.COM
PERSONAL & HOME | COMMERCIAL | AGRICULTURE | CHURCH & CHARITY
PERSONAL & HOME | COMMERCIAL | AGRICULTURE | CHURCH & CHARITY
679 Pembina
117 Centennial Drive N. Hwy. info@lakeviewwinnipeg.com
207 2nd Avenue 679 Pembina Hwy.
Martensville, SK S0K 2T0 Blaine Lake, SK S0J 0J0 Winnipeg, MB R3M 2L6
Winnipeg,
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info@lakeviewmartensville.com
R3M 2L6 Phone:
info@lakeviewblainelake.com
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Phone: (306) 931-2888 Phone: (306) 497-2695 Phone: 204-453-0106
Winnipeg, MB R3M 2L6 Phone: 204-453-0106underwriting capacity our brokers need province would find it hard to reach the more competitive and customer-
at a price that allows us to break even. scale required to justify the investment responsive, and if we can provide
We are committed to this, irrespective to do so. technology-enabled solutions to free up
of other insurers who have left the time for brokers to provide expert advice
province or may be contemplating Your broker strategy has recently gone to their clients, then everyone wins.
retreating from the Saskatchewan through significant change. Why? We believe that Canadians want and
market. We’ve doubled down on brokers. need independent, expert advice from
We’ve transferred our direct distribution brokers — especially those who have
Is there enough competition in the customers in Quebec to a group of embraced digital ways of interacting and
market today? independent insurance brokers and are are seeking a convenient experience.
Well, the government insurer in no longer selling any products direct to A huge part of our technology focus
Saskatchewan is our main competitor in consumers. Wawanesa is now the largest last year was introducing Guidewire
P&C and has a major role in influencing P&C insurer in Canada solely committed InsuranceSuite — an integrated policy
competition and choice — especially to and focused on the independent administration, rating, and billing
when SGI is the only government insurer broker channel. system — to Saskatchewan brokers.
in Canada that both competes in P&C Our research tells us that customers We also launched BluePass, our new
and supplies mandatory automobile want advice from professionals in broker entry portal. Next up will be BMS
insurance. It is not easy to compete their community that they trust. They integration, which will enable seamless
against a government insurer. They have may research insurance online, but, real-time policy transactions between us
access to every broker office and provide ultimately, they turn to an insurance and our brokers.
a system that brokers use as agents of broker for advice on the protection of
SGI every day. their greatest assets — their home, their What about product innovation for the
Let me, though, be clear: We are car, and their businesses. We believe that Saskatchewan market?
comfortable with competition. We brokerages who share our hometown That’s another key focus of our
operate in provinces with more than values and are prepared to invest in partnering strategy.
200 insurance companies competing their businesses to meet the service Our new commercial farm product
against us every day. And Wawanesa expectations of the modern insurance — Agricultural Select — launched last
is investing more than ever to be a consumer will survive and thrive. November. It is our first flexible and
stronger competitor. But here’s a caution comprehensive insurance product
for Saskatchewan brokers: Too much How important is technology in your built for large-scale grain, oilseed, and
reliance on any one insurer is not good Saskatchewan broker strategy? produce operations.
for you, or for your customers. Without It’s critical. We are increasing We have introduced a personal cyber
strategic support for other insurers, our investments in digital tools and policy that protects customers from the
Saskatchewan brokers risk becoming capabilities with the broker value fallout of cyber attack, cyber extortion,
agents, and insurers who would proposition in mind. Our view is if we online fraud, or data breach — it’s not
otherwise be interested in writing in the can help brokers ‘go digital’ and become just businesses that face these risks.
14 SaskBroker Magazine | May 2019We also recently launched a personal
umbrella policy to the Saskatchewan “But the biggest strategic issue that is changing our industry — in a
market and our brokers in this province.
very positive way — is rising customer expectations for value, service,
What other trends are shaping and corporate social responsibility. This requires us to work together to
Wawanesa’s strategy? modernize and significantly improve how customers view insurance and
Right now, our Canadian P&C the benefits we provide when they need us the most.”
business is deep into a transformation
process. Our evolution is about more
than a strong balance sheet and strong
relationships — although these are But the biggest strategic issue that decade. Transacting in a seamless way
core elements of our strategy. It’s about is changing our industry — in a very with customers, with correct quoting,
navigating the next 100 years as a positive way — is rising customer renewal, and billing information
mutual on the Prairies. expectations for value, service, and straight through to an insurer’s system,
We are becoming an innovative corporate social responsibility. This is already possible today.
insurance company, streamlining requires us to work together to Customers have simple questions at
and automating as much as we modernize and significantly improve odd hours, and they have clearly told
can to operate more efficiently and how customers view insurance and the us that they want 24/7 direct access to
effectively for our brokers and our benefits we provide when they need their information. Right now, it may be
policyholders. What’s exciting to see are us the most. As a mutual, we have no through a website and unique sign-on,
the partnerships we have created not shareholders demanding larger profits, but we’re moving quickly into different
only with some great insurtech startups so we are really able to hone in on the application programming interfaces
in our Innovation Lab and Outpost, needs of our policyholders, who are our (APIs) that will allow customers —
but also with the new breed of digital owners. through their brokers’ websites — to
brokers. These brokers are embracing look at their policy documents, check
technology and are using it to attract What do these changes and trends when their payment is due, or maybe
those consumers who live in our digital mean for brokers? search for the status of their claim.
world. Wawanesa continues to actively It means that, in the same way It truly is an exciting time for all of
explore and negotiate new partnerships insurers need to invest in technology, us. The insurance industry is rapidly
and engagement opportunities in this brokers need to adapt and invest as evolving — we are innovating, and
area. We have a digital distribution team well to meet the rising expectations brokers are, too. At Wawanesa, we are
focused on ensuring all our technology of customers. Brokers who have not working with brokers to transform our
supports broker integrations. This team yet done so must begin their own businesses together. Our partnership
also assists brokers with developing transformation and their own strategic has succeeded for more than 120 years,
their own digital strategy — we are here process to figure out how they can and we look forward to the next 100
to help. PAI magazine ad.pdf 3 2019-04-15 3:56survive
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www.ibas.ca 15National Priorities
The devil is
in the details
By Peter Braid, CEO, Insurance Brokers Association of Canada
T
he Insurance Brokers Association of Canada (IBAC) is Emergence of fintechs
a national organization that represents the collective
Last year, the Government of Canada also enacted changes
interests of 11 member associations — including
to give greater flexibility for financial institutions to undertake
IBAS — and their member brokers. IBAC advocates
fintech activities. Recognizing this could potentially have an
on behalf of insurance brokers and consumers, supports and
impact on insurance brokers and the industry as a whole, IBAC
elevates the broker profession, and promotes a vibrant and
sought to clarify the government’s intentions.
sustainable broker distribution channel.
Through meetings with Finance Minister Bill Morneau and
In this column going forward, I will be providing you an
senior officials, and an appearance at the House of Commons
update on some of the important files we’re advancing on your
Finance Committee, IBAC was able to convey brokers’ concerns
behalf.
and received assurances that the government understands
and is aligned with our position. The next step is the drafting
The Bank Act of fintech regulations, and — knowing that the devil is in the
Federal advocacy is IBAC’s raison d'être, and we continue to details — IBAC is watching closely to ensure these regulations
raise the bar. With a national voice that carries the weight of will reflect the historical separation between banking and
over 38,000 P&C insurance brokers, we are working to protect insurance.
consumers, enhance the image of the broker profession, and In January 2019, Finance Canada officials invited IBAC to
ensure a fair and competitive insurance marketplace. a meeting to review and discuss fintech issues from a broker
The centre of IBAC’s advocacy effort over the years has been perspective, prior to the drafting of the new regulations.
the ongoing battle to maintain the Bank Act provisions that They wanted to discuss the particular concerns of brokers
ensure the separation of the pillars of banking and insurance. and ensure the final regulations achieve the shared goal of
We are able to leverage our strong political relationships at maintaining the separation of banking and insurance. This was
a positive, significant, and unprecedented opportunity for IBAC,
both the grassroots and national levels to ensure this core
and a testament to the bridges that we have been building in
principle is maintained through successive Bank Act reviews
Ottawa.
and related matters.
At the meeting, departmental officials confirmed that,
In 2018, we intensified our advocacy on the Bank Act
based on expert analysis, the current blanket provisions in the
ahead of the statutory review due by March 2019. Our annual
Bank Act that prevent banks from sharing customer information
Parliament Hill Day in May 2018 focused on reinforcing and
either directly or indirectly will also apply to fintech entities
promoting our long-held position that banks should not sell
that banks may own or control. We will have the opportunity
insurance at the point of granting credit. This message of to review the draft regulations, expected this spring, to ensure
consumer protection resonated with all decision-makers, with that there are no unintended consequences or loopholes that
the result that the important blanket prohibitions in the Bank could impact brokers.
Act were upheld once again. The enabling legislation was That being said, we continue to have concerns regarding
passed in June 2018, and no further review of the Bank Act will the monitoring and enforcement of the blanket provisions in
occur until 2023. the legislation, and have suggested that a consumer education
This represents a significant victory for Canadian component and a clear consumer complaints process be
consumers, who will continue to have access to expert, established. This approach supports our advocacy with regards
impartial advice when purchasing insurance coverage. Thanks to both the Bank Act and consumer protection, and we will be
to all brokers who have participated in IBAC’s successful exploring this further with Finance Canada and the Financial
advocacy on this issue over the past few years. Consumer Agency of Canada (FCAC).
16 SaskBroker Magazine | May 2019Open banking: Threat or opportunity? somewhat unlikely (21 per cent) that their homes are at risk of
flooding. Many homeowners reported their insurance policy
Open banking is a new potential disruptor in the financial
would not cover overland flooding (27 per cent) and a further 34
services sector, allowing consumers to access their financial
per cent did not know if they would be covered.
information and share it with third-party financial services
Given their trusted relationships with clients, insurance
providers. The federal government is considering whether
brokers are well-positioned to help their clients understand their
Canada should implement an open banking system, and IBAC
individual risks, and advise them on the appropriate insurance
has contributed a written submission to the consultation
coverage required to protect their family’s property and financial
process.
security.
It is IBAC’s view that open banking could help to modernize
Canada’s financial systems, accelerate innovation in products IBAC is also doing its part as a responsible stakeholder with
and services, and provide benefits for small businesses. At the the launch of a national campaign in the spring to educate
same time, the principle of protecting consumers must remain Canadians about the risks of catastrophic events and the
paramount. As this issue moves forward, we will continue to importance of having the right coverage.
stand up for consumers and maintain a watchful eye on the
public policy details. Parliament Hill Day
Once again this year, on May 29, IBAC will converge on
Public awareness Parliament Hill for our annual advocacy day. Brokers from across
IBAC’s advocacy also includes serving as a respected voice on the country, including an enthusiastic delegation from IBAS,
insurance-related issues. always receive a warm welcome from parliamentarians, and we
One area of focus is the increasing risk of natural disasters are looking forward to advancing these important issues on
such as overland flooding, and the apparent disconnect in public behalf of brokers and consumers.
awareness despite repeated news reports of such catastrophic
events in communities across the country. Peter Braid is the CEO of the Insurance Brokers Association of
Last year, we commissioned a study that found that the Canada. Prior to assuming that role in 2017, he served as a Member
majority of Canadians believe it is unlikely (66 per cent) or of Parliament for Kitchener–Waterloo between 2008 and 2015.
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18 SaskBroker Magazine | May 2019CEO’s Notebook
Here’s (some of)
what we’re working on
By Derek Lothian, CEO, Insurance Brokers Association of Saskatchewan
T
hroughout my professional life, environment you’re operating within members, short updates on the business
I’ve always considered myself to is not only what fuels that curiosity, it’s climate, policy files, programs, and
be a ‘high-functioning’ introvert. paramount in our ability to deliver you initiatives driving our mandate forward.
Okay, okay — semi-functioning. value. There won’t be near enough pages to
The truth is that while I’ve made Two of the most common questions cover everything, but my hope is that
a living as a communicator, I’m not I hear while visiting brokerage principals it will give you at least a flavour for the
naturally that good at it. I grew up a shy are: What are you seeing out there right direction the organization is heading
kid and, despite learning to disguise now in the economy, and what is IBAS and the breadth of activity we’re
it with age, I’ve never been able to doing to address ‘X’? ‘X’ is generally a involved in on a daily basis.
completely shake the sense of anxiety wide range of industry-specific issues,
around new people. I often joke with from helping brokers embrace new Budget 2019
friends that taking public relations in technologies right down to shaping Every year, for the past eight
college was a therapeutic exercise for certain government policies. As it turns years, I have attended the unveiling
someone who didn’t really relate with out, they are also my favourite questions of a government budget, either
the public. to answer. provincially here in Regina or federally
The single trait, however, that I’m a big believer in continuous in Ottawa. And, I have to say, this year’s
has allowed me to transcend those improvement; and I will be the first to Saskatchewan budget may go down as
hurdles has been my curiosity. When admit that, as an association, we still one of the most boring on-record. What
I’m immersed in something, I need to have a long way to go to operate at the is usually a headline-laden affair could
understand how it works — what is high level of performance we feel is be summed up in less than 10 words:
influencing the mechanics and what achievable. That said, there are very few Return to balance, no new taxes, stay the
elements are controllable that can topics that arise in conversation where course.
impact the outcome. we have not at least begun to advance After two years of deficits, the
I think that’s why, through my a potential solution. Being able to share Saskatchewan Party tabled its plan to
first year-and-a-half as CEO of IBAS, our perspective and the work we are bring in a razor-thin surplus of $34.4
my favourite part of the job has been undertaking on your behalf is one of the million — hardly a lot of breathing
meeting directly with members — a most important responsibilities I have. room in a near-$15 billion budget.
bit paradoxical for an introvert, I know. Ultimately, that’s what this CEO’s And although I do think many of the
But understanding your challenges, the Notebook column is all about — a projections made within it are extremely
opportunities you’re pursuing, and the regular forum to provide you, as conservative, the numbers also
“Capital investment in the province is projected to drop 3.6 per cent in 2019, to $14.9 billion —
the lowest level since 2010. Manufacturing investment alone is expected to plummet 22 per cent.
Among major industries, only the resource and construction sectors are anticipating upticks in
capital spending, at 13 per cent and two per cent, respectively.”
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www.palcanada.comadmittedly do not consider the potential industries, only the resource and insurance sector with Saskatchewan’s
economic impact of the federal carbon construction sectors are anticipating burgeoning technology cluster.
tax, which came into force on April 1. upticks in capital spending, at 13 per
Expect Premier Moe and the cent and two per cent, respectively. Rural Brokerage Advisory
SaskParty caucus to do everything Given these pressures, and barring Committee
in their power to remain in the black any surprises, my best guess is that the More than 20 brokerage principals
leading up to an all-important election economic mood in Saskatchewan over took part in the first-ever teleconference
year budget in 2020. the next eight-or-so months will likely of the new IBAS Rural Brokerage
feel more subdued than the pundits will Advisory Committee, held on April 2.
Red flags try to tell us it is based on the statistics. Participants identified six areas
By almost every forecast, of focus for future exploration: The
Saskatchewan is poised to lead Saskatchewan Insurance availability of insurance markets for
Canadian provinces in growth through Workforce Development small and rural brokerages; education
2019 — coming in at either number one Coalition and support around technology
or number two on the list, between 1.7 Later this year, IBAS will be rolling adoption; recruiting and retaining
and 2.2 per cent. out the new Saskatchewan Insurance skilled staff; high-speed internet access;
Depending on the lens you’re Workforce Development Coalition. And, the urbanization of the customer base;
looking through, that could be either yes, we need to come up with a shorter and compensation levels on basic auto
good news or bad news. The good news name. coverage.
is that it appears to be a stabilization of The exact structure of this entity is A second teleconference will be held
growth after a few years of boom and still being hashed out; however, in short, in the coming months, followed by an
bust. On the downside, there is a very it will be a collective of independent, initial in-person meeting this fall. Please
real possibility that inflation will actually like-minded organizations (including contact me if you would like to join.
outpace the rate of growth, meaning the Saskatchewan Young Brokers
less money in the pockets of consumers Network, insurance carriers, training Autonomous vehicles
and businesses at the end of the day. A institutions, and other industry groups), Earlier this year, IBAS took part
handful of major variables could swing collaborating to promote insurance as a in a meeting alongside SGI and the
the pendulum to either side, including rewarding, modern, first-choice career Insurance Bureau of Canada to begin to
some market access uncertainties with pathway. The interest has already been explore the regulatory and insurance
our two largest trading partners, the U.S. encouraging. framework for autonomous vehicles in
and China (which, together, account for This work will aim to include Saskatchewan.
70 per cent of Saskatchewan exports). embedding insurance education In October, Nova Scotia announced it
Those big, flashing question marks into financial literacy programming, would become one of the first Canadian
are reflected in some of the first-quarter marketing efforts to modernize jurisdictions to make serious legislative
trends. For instance: Capital investment the perception of the insurance changes to accommodate self-driving
in the province is projected to drop 3.6 industry, forecasting the insurance vehicles, replacing its longstanding
per cent in 2019, to $14.9 billion — the industry’s workforce and skills Motor Vehicle Act with an updated Traffic
lowest level since 2010. Manufacturing demand, coordinating attendance at Safety Act.
investment alone is expected to Saskatchewan career fairs, and forging Watch for more on this in the coming
plummet 22 per cent. Among major stronger relations on behalf of the months.
22 SaskBroker Magazine | May 2019The taxation of insurance and its impact on coverage decisions, And one last thing…
IBAS commended the government for
During the second annual Insurance This is the first ‘relaunched’ issue of
upholding the principle of transparency
Broker Day at the Legislature on SaskBroker Magazine. The decision to
in the face of public pressure, choosing
March 5, IBAS took the opportunity go a new direction wasn’t just about
to repeal the PST exemption instead
to communicate to policymakers the coming up with a new logo or investing
of adjusting upward the Insurance
importance of maintaining transparency in a thicker stock of paper — it was
Premiums Tax.
when taxing insurance products. about fundamentally redefining what
Going forward, IBAS is prepared
No industry is likely to celebrate this publication is and why you want
to work alongside government in a
new taxes; but, where there is a public to read it. Our vision is for a modern,
proactive manner to analyze and better
financial necessity to collect them, it is thought-provoking resource you can’t
understand the impact that varying
important they are implemented with wait to open — that combines leading-
levels of taxation have on consumer
openness and fairness. edge insight and analysis with the latest
insurance decisions, and the subsequent
There are two ways the Province may IBAS information you need to make
personal, business, and public exposure
choose to collect tax on P&C insurance: sound business decisions.
to risk.
Through PST applied to premiums — This is a journey and it does not with
the exemption for which was removed our first issue. That said, I hope you’ll
CAIB update
in 2017 — or through the longstanding find as you flip through these pages
Insurance Premiums Tax. Few folks As you may have heard, IBAC is in that we’re on the right path. Let us know
outside the industry are aware the latter the process of updating the current what you’d like to see!
already exists, adding up to four per cent CAIB curriculum. This is more of a
onto coverages, as it is built into the cost ‘modernization’ than a ‘rewrite,’ and is Questions? Comments? I’d love to hear
of the premium and is not visible to the aimed at bringing terminology and from you directly! Call my direct line
consumer. course learnings more in-line with anytime at (306) 525-4075 or drop me an
While IBAS remains concerned about today’s realities. IBAC has set a tentative e-mail at derek.lothian@ibas.ca.
the eroding affordability of insurance goal of year-end for completion.
www.ibas.ca 23Events Spotlight
2019 Insurance Broker Day at the Legislature
held March 5
The second annual Insurance Broker Day
at
the Legislature was held Tuesday, March
5, in
Regina.
This is one of IBAS’s most important advo
cacy
initiatives of the year, featuring a full day
of
meetings with elected officials, top bureaucra
ts,
and regulatory executives.
The delegation — which consisted of the
IBAS
board of directors, as well as representatives
from
the Saskatchewan Young Brokers Network
and
Insurance Bureau of Canada — led discussion
s
with the Premier’s office, the Minister Resp
onsible
for SGI, the Minister of Government Relat
ions
(and Minister Responsible for PDAP), the
Minister
of Justice and Attorney General, the Cauc
us Policy
Committee on Crown and Central Agencies,
the Ministry of Finance, the General Insur
ance
Council of Saskatchewan, as well as the Offic
ial
Opposition.
d fo r th e se co nd an nu al S as ka tchewan
Capacity crow
m it of Y ou ng In su ra nc e Pr of es sionals
Sum
the Saskatchewan
For the second straight year,
Professionals was a smash
Summit of Young Insurance
wd of roughly 140 brokers,
hit, attracting a capacity cro
tives, adjusters, and other
insurance company representa
industry stakeholders.
and the Saskatchewan
Co-hosted by IBAS, the YBN,
al, the April 4 event
Pond of Blue Goose Internation
of spe akers, including
featured a best-in-class line-up
Preside & CEO Craig
nt
Saskatchewan Roughriders
sident, Clarity Coaching
Reynolds; Jolene Watson, pre
d EVP & COO Penny
& Development; SGI Auto Fun
nder Braden Bosch; Loren
McCune; Nuera Insurance Fou
cialty solutions with Intact
Gardiner, vice president of spe rance Bureau of Canada.
ce; as wel l as Cel yes te Pow er, vice president with the Insu lying Campaign. A special tha
nks to our Presenting
Insuran Red Cro ss Ima gin e No Bul
$1,000 for the Canadian Mutual Insurance, Red
The event also raised close to to our Eve nt Par tne rs: Inta ct Insurance, Saskatchewan
as
ce and SGI CANADA, as well
Partners: Wawanesa Insuran ction.
Services, and Lydale Constru
River Mutual, Midwest Claims
24 SaskBroker Magazine | May 2019UPCOMING EVENTS
Industry Networking
2019 IBAS Golf Tournament YBN Corporate Challenge 2019 IBAS Convention:
The New Frontier
June 18, 2019 September 13, 2019 October 17 – 18, 2019
The Legends Golf Club (Warman, SK) To Be Announced (Saskatoon, SK) Sheraton Cavalier Hotel (Saskatoon, SK)
The annual IBAS Golf Tournament Now in its third year, the Saddle up in Saskatoon! Join more
is a staple social event for broker Saskatchewan Young Brokers Network than 600 brokers and insurance
members and industry partners. Enjoy (YBN) Corporate Challenge is a fun, leaders for our marquis event of the
a great day on the links with friends one-day event to raise money for year. Presenters include Dragons’
and peers — register individually or a worthwhile local cause. Teams Den entrepreneur Manjit Minhas and
as a team by visiting www.ibas.ca. A representing brokerages, insurers, Abacus Data CEO David Coletto, with
complimentary shuttle service will and other industry partners compete roll-in-the-aisles entertainment from
be provided between the Sheraton for bragging rights and great prizes. renowned Canadian comic Steve
Cavalier Hotel in Saskatoon and the To date, more than $17,500 has been Patterson. Help make this our biggest
golf course (pre-registration required). raised for charity. and best convention yet — register
now for your chance at $1,000 in
www.ibas.ca/events www.ibas.ca/events early-bird cash!
www.ibas2019.ca
Professional Development
Webinar: Commercial Endorsements & Extensions CAIB Immersion Courses National Exam Date
May 22, 2019 CAIB 2: September 7 – 14 , 2019 December 4, 2019
Online Webinar Sandman Hotel (Regina, SK) IBAS Office (Regina, SK)
SGI Claims Centre (Saskatoon, SK)
The number of add-ons that can be supplemented onto CAIB 1: November 16 – 23, 2019
commercial insurance policies can seem overwhelming. Sandman Hotel (Regina, SK) Students can choose to write
In this webinar, you’ll look at the most commonly used Taught by long-time instructor Todd exams for the following courses:
commercial endorsements and floaters, including but Hochban, CAIB immersion courses Fundamentals of Insurance, Auto
not limited to: Building bylaws, stock spoilage, the are a weeklong experience where Part 1 (Basic), General Bylaws, as
exhibition floater, and the installation floater. Through students participate in intensive well as CAIB & CPIB paper exams.
this overview and related claims examples, you’ll gain an theoretical discussions and hands-on
excellent understanding of how the various coverages exercises. A final exam is held on the
should be applied. last day of each course.
To learn more or to register for IBAS educational opportunities, visit www.ibas.ca.
www.ibas.ca 25Get ready for The
Five years after being passed in the
Legislature, Saskatchewan’s new
Act is set to take effect in 2020
By Derek Lothian, CEO, Insurance Brokers Association of Saskatchewan
W
ell, it’s been a long time coming. But as of January Since then, IBAS has been working closely alongside the
1, 2020, Saskatchewan’s insurance sector will Financial & Consumer Affairs Authority (FCAA) as well as the
be officially governed by new legislation: The staff at the General Insurance Council of Saskatchewan (GICS) to
Insurance Act. clarify the rules and help ensure a smooth transition.
Originally passed by policymakers in 2015, the ‘new Act’
has had more than its share of false starts. Those of you who From 30,000 feet
attended the most recent IBAS AGM may recall implementation It’s fair to say the changes will impact the life insurance sector
was hard set for this past January. In November, however, far more dramatically than P&C companies. Nevertheless, there
IBAS — along with several other organizations — requested an are new parameters you as brokers and brokerage owners need
additional delay to allow for the finalization of still-outstanding to be aware of.
regulatory amendments, and to provide those affected by the To understand some quirks of the new Act, one must rewind
Act, including brokers, sufficient time to review the changes and to 2015 and consider the political environment leading up to
take any actions necessary to maintain compliance. As a result of that period. The New West Partnership Trade Agreement — which
those appeals, enactment was delayed by a full year. was originally signed by Saskatchewan, Alberta, and British
Columbia (followed by Manitoba in 2016) — was gaining
momentum under the banner of ‘regulatory harmonization,’
“It’s fair to say the changes will impact the life and aimed to better integrate the Western Canadian economy.
insurance sector far more dramatically than Then-Premier Brad Wall was at the center of this push. As a
result, several pieces of legislation under review at the time were
P&C companies. Nevertheless, there are new
examined through the lens of their counterparts in the other
parameters you as brokers and brokerage owners western provinces. For better or for worse, Saskatchewan ended
need to be aware of.” up ‘borrowing’ certain legislative elements to bring it closer in-
line with its neighbours.
26 SaskBroker Magazine | May 2019Insurance Act
The wording in The Insurance Act, it could be argued, is the Under this restriction, insurance providers and intermediaries
outcome of those imperfect realities. There are several instances cannot require customers to purchase one product or service to
throughout the text and resulting regulations that seem to receive the initial product or service they wanted to purchase.
be borne of noble intent, but that bring to bear seemingly This mirrors the longstanding provisions of the federal Bank
unnecessary consequences. There are other modifications that Act, which prevent financial institutions from offering loans
are straight-up improvements, and others that have a clear contingent on the purchase of insurance policies.
direction with which IBAS remains somewhat concerned. Unfortunately, despite being a significant step in the right
direction, this falls short of IBAS’s more rigid recommendation to
New definitions FCAA.
One of the most obvious changes is to the definition of The prohibition on tied selling does not necessarily prevent
property and casualty insurance. As of January 1, 2020, it will credit-granting agencies from selling insurance, or even
mean ‘any class of insurance other than life insurance.’ So, those
who currently carry an All Classes Other than Life licence will now
“Legislative modernization is never an easy
have a licence under the new name.
There is also a revised definition of general insurance, which journey, regardless of industry. In truth, it can
will essentially mean ‘any class of P&C insurance other than be quite painful — for those it governs and for
accident and sickness insurance.’ This encompasses crop hail those responsible for enforcing it. The key is open,
coverage.
proactive, and transparent dialogue, rooted in
Tied selling a rational understanding that we are all in this
IBAS is pleased the new Act will expressly prohibit the together.”
practice of tied selling.
www.ibas.ca 27requiring insurance — it simply precludes them from requiring may face with potentially overzealous enforcement. The IBAS
the consumer buys their insurance to receive the loan. The best board was advised by GICS staff that risk-based audits of both
example of this is when seeking financing on the purchase a proactive (random) and responsive (for example, due to
of a new vehicle or piece of farm equipment. The lender can consumer complaints or as a result of previous compliance
absolutely require the consumer to have insurance as a condition actions) nature are being considered. This process will be
of the financing, but the consumer must be able to obtain that developed and announced within the next year.
insurance from whomever they choose. IBAS will be working closely with GICS in the coming
This is a hollow protection, though, if the borrower is months to explore the possibility of creating resources to
unaware he or she has a choice. And, in some cases, high- help brokerages minimize their exposure to the risk of non-
pressure sales tactics can lead to a borrower purchasing compliance. Possibilities include the establishment of a best
additional insurance that he or she may already be covered for. practices guide or standards certification process not indifferent
It remains IBAS’s position that the lender should be required to the COR (short for Certificate of Recognition) safety certification
to inform the borrower that he or she has an explicit choice in widely used in industries like construction and manufacturing.
where to obtain compulsory coverage.
Fines
Licensing
The new Act will enable GICS to levy financial penalties of up
The new Act requires employees of an insurer to become to $25,000 for individuals and $50,000 for brokerages for non-
licensed if providing insurance advice, or if working jointly with compliance with the council bylaws — a significant increase over
advisors and clients. This includes sales representatives and today’s punitive powers.
some call center employees, who were largely exempt under the
‘old Act’ that is still in-force. Designated Representatives
The most substantive overhaul in the new Act revolves
Broker adjusting
around Designated Representatives, or DRs.
One of the more interesting changes allows brokers to adjust Let’s start with how DRs are appointed. As it stands today,
claims under $10,000 without an adjusters’ licence. an insurer ‘sponsors’ a brokerage for licence, and the brokerage
This can be done only when the policy was sold by the same delegates the appropriate DR. The new Act will indenture a
brokerage (you can’t adjust another brokerage’s policy), and different process, whereby the insurer will appoint the DR
you have the expressed permission of the carrier. Brokerages directly to council. This will — almost always — be at the
interested in pursuing this as a means of value-added customer recommendation of the brokerage; however, the communication
service are highly encouraged to speak with carriers well in of that appointment will now be directly between the sponsor
advance of January 1 to discuss how they will be navigating this and GICS.
new option.
Disclosures
To be called an insurance broker or insurance brokerage, you
must hold a valid licence and represent at least two different
markets (in any type of insurance line). If you do not meet this
requirement, you must refer to yourself as an agent or agency,
and you must disclose the insurer to the client or potential client.
Fees
GICS bylaws already require you to inform customers of any Krista McCann of 306 Adjusting
fees you charge over and above the premium, advising them Services in Saskatoon.
of the fee and the reason for charging it. Beginning in January,
consumers must also agree to these fees in writing before you
provide the service you are charging for.
Audit authorities
Under the new Act, GICS will have the authority to audit your
brokerage — and your brokerage’s individual licensees — for
compliance.
As part of its Insurance Broker Day at the Legislature on
March 5, IBAS expressed to GICS concerns around how audit
powers would be managed, and the risk that brokerages
28 SaskBroker Magazine | May 2019You can also read
