Views (May 01, 2005)

The CIP Society shared its vision for the future of the insurance industry, hosting its first annual Symposium – “Emerging Issues in Insurance” April 26 at the Toronto Board of Trade. The line up for this full day symposium included: two dynamic keynote speakers, 17 seminar presenters – each expert in their chosen fields and an Industry Leadership panel. Nicholas Smith, President of Lloyd’s of Canada and Attorney In Fact, Lloyd’s Underwriters was the Symposium’s distinguished Breakfast Keynote Speaker and talked to Emerging Global Trends in Canada.

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Over 250 well wishers came out recently to Toronto’s Royal York Hotel for a “Roast and Toast” reception and dinner for IBAO CEO, Bob Carter – to celebrate Carter’s 45 years in the the insurance industry. The evening’s emcee was IBAO’s Randy Carroll and guests were entertained by an elite group of ‘roasters’: George Cooke; Steve Periard ; Ken Orr; Jeff Brandham; Iain Galbraith; and Chuck Byrne.

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Letter to the Editor

Dear Editor,

Felix Kloman should spend a day in my shoes. (see CU’s April 2005 issue, “Time for Solutions”)

As a broker in small town Ontario I spend my days negotiating with existing and new clients on what they pay my office for their protection. As a broker, unlike direct writers, I can try and offer clients lower premiums by offering choice of companies and product that best suits their needs and pocket book. Our office was established in 1898 and has survived on the commission system very well, while always keeping the client informed on how we are compensated. We would not have survived this long without the trust our clients hold in us. Mr. Kloman’s analogy of the police chief and the mob insults me to no end; to compare policy commissions with illegal activity is ludicrous. If the brokers in New York State were acting illegally then they must pay the piper big time. But, in Ontario there has yet to be any sign of inappropriate commission fixing. I for one think that changing our system of compensation to an hourly or negotiated fee opens a Pandora’s box, as the few less trustworthy in our business who cut fees just to write business will end up hurting the client in the end as they scramble to exist. Commissions are here to pay staff, utilities, support the local economy and local charities. I can’t see this continuing when brokers or agents cut fees to the bone just to write a piece of business. Consumers are smarter today than ever when it comes to their insurance and I do not hear a demand from them to change our commission system. They know we must be paid in a fair manner and they want good service for that fee. So Mr. Kloman I invite you to spend a day in my shoes talking with my clients, maybe you will change your mind on how we exist in this business that is forever under the microscope and media scrutiny.

Thank you,

Bill Steele, Partner

C.M.Steele Insurance Brokers Ltd

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Collision Solutions Network (CSN) welcomed the members of Collision Associates to its network as East Coast representatives. CSN now includes 34 collision repair shops in Ontario, New Brunswick and Nova Scotia. “We are striving to better serve our Insurance partners by expanding our coverage, and are doing so by obtaining members who are as concerned with customer care and quality repairs as the rest of our network,” says CSN president Lorenzo D’Alessandro (pictured seated, right).

The Honorable Order of the Blue Goose, Ontario Pond held its 5th annual version of the always popular Scotch Nosing. This year the “classic single malts” were enjoyed, including such favorites as Royal Lochnagar and Murray McDavid. And tasters were entertained by the musings of guest expert Ed Patrick of “The Companions of the Quaich”. Proceeds from the event, totaling more than $7,000, were donated to the Women in Insurance Cancer Crusade (WICC). Special thanks to sponsors Miller and Associates, ServiceMaster and Blakeney Henneberry Murphy.

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The Property Casualty Underwriters Club (PCUC) held its annual “Spring Thaw” cocktail reception at Toronto’s Courthouse Market Grille recently. The event brings together members and guests for an evening of socializing and prizes, and a chance to “shake the winter blues”.

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Shumka Craig and Moore Adjusters Canada has expanded into Newfoundland and Labrador with the acquisition of Provincial Adjusting Services (PAS). Not only will SCM Canada add the six offices of PAS, but it will also capitalize on the expertise of former PAS president Wayne Guy, who becomes provincial manager, with principals Barry Bugden and Anthony Elliott maintaining key roles. SCM Canada now has 53 offices coast to coast in Canada.

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Chubb Insurance Co. of Canada has launched a new commercial insurance package, “MasterKey”, aimed at covering a wide array of emerging risks. The program includes a “basket limit” which allows the insured to direct claims payments to where they are most needed from one or more of 12 policies after a loss. “”MasterKey(tm) offers coverages that are not traditionally offered in a commercial package. It streamlines the insurance transaction by offering a modular package that can be customized to meet the needs of each individual business,” says Fred Shurbaji, senior vice president of Chubb’s commercial division.