www.claimscanada.ca
February/March 2015
Official Journal of the Canadian Indeépendent Adjusters’ Association
THE CAT ISSUE
What has changed – and what remains the same – for claims professionals in catastrophe management
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Contents FEBRUARY / MARCH 2015 • VOLUME 9 • NUMBER
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Cover Feature 12 The Cat Issue Emergent trends in catastrophe management involve the use of location intelligence, satellite imagery and even early experiments with drones. However, the 48th annual joint CICMA/CIAA conference held in Toronto February 3 showed that catastrophes often extend to more than “just the weather.” And when it comes to dealing with CATS, attendees learned that the core fundamentals of adjusting haven’t really changed. BY CRAIG HARRIS
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Spotlight 20 AB Adjusting, Diversified Trevor Cortese has a passion for and niche in helping injured people get appropriate compensation. That hasn’t stopped his London, Ontario-based firm, TC Insurance Adjusters Ltd., from spreading its wings. BY CRAIG HARRIS
Education Forum 30 Condo Coverage – Assessing the Scene Two examples of situations where an owner might end up out-of-pocket because they didn’t understand the nature of their coverage.
News Features 22 Adapting to Extreme Rainfall The Institute of Catastrophic Loss Reduction celebrates leadership amongst cities in its latest publication.
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BY SOPHIE GUILBAULT
24 Top Ten A review of the then most important insurance coverage cases of 2014. BY CHRIS DUNN AND JOSIAH MACQUARRIE
28 Water – The Structural Enemy An exploration of the sources and causes of property damage claims. BY RANDY HENDERSON
Departments 4 First Notice 32 On The Scene
Columns
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10 President’s Message 30 Education Forum
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• first notice FN CRU Group acquires Maltman CRU Group Inc. announced January 28 it has acquired the shares of Toronto-based insurance claims services firm Maltman Group International. “The partners of Maltman, Tom Dorey, Craig Walker, Randy Ffrench and John Breese will be integral to the continued success of the business,” stated Markham, Ont.based CRU Group (whose operations include independent claims adjusting firm Catastrophe Response Unit Inc.) in a press release. Maltman’s services include loss adjusting and claims administration in specialty lines, directors’ and officers liability, professional liability, and errors and omissions. Maltman Group was founded in 1949 by Fred Maltman. “The Maltman’s team going forward will be lead by CRU Group Executive Carol Jardine with the strong support of the Maltman partners and team,” CRU stated. Jardine has previously served as senior vice president of claims services at TD Insurance, and president and chief operating officer of both Canadian Northern Shield Insurance Company in British Columbia and CUMIS General Insurance Company. l
TD Insurance opens one-stop shop for auto claims TD Insurance announced January 28 that it is teaming up with its preferred vendors and will open a “one-stop solution” for auto claims and collision repairs in early February. “TD Insurance auto insurance customers will be able to complete all the steps of an auto collision repair process - file a claim, drop off their vehicle, get their vehicle appraised, repaired, and if needed, rent a car - all at one location,” the insurer said. “In addition, they will only need to deal with one contact throughout the claims process - the TD Insurance adjuster onsite assigned to the claim.” The first TD Insurance site to start offering this initiative will be in Calgary, Alberta at CARSTAR Calgary Chinook. “Not only does this initiative allow us to deliver critic TD Insurance’s single source solution to offer auto insurance customers greater convenience TD Insurance auto insurance customers will be able to perform all the steps of an auto collision repair process at one convenient location,” stated Craig Richardson, Vice President at TD Insurance. “Customers will also enjoy greater flexibility in dropping off and picking up their vehicles,” TD Insurance states. “The site will extend its opening hours on Mondays to Fridays from 8 a.m. to 8 p.m., and operate on Saturdays from 9 a.m. to 4 p.m.” l
ICBC estimates 10% of claims have “fraud or exaggeration” The Insurance Corporation of British Columbia announced January 29 its investigation units last year advanced more than 100 fraud-related charges to crown attorneys, noting that DNA evidence was used to prove an ICBC customer prohibited from driving was actually behind the wheel at the time of an accident, while another customer with only basic auto coverage was caught trying to buy optional additional coverage after a collision. “In 2014, ICBC’s two special investigation units advanced 131 charges to Crown counsel against 100 defendants, maintaining our average conviction rate of approximately 90 per cent per year,” ICBC noted. “While it’s difficult to accurately calculate the extent of fraudulent activities, ICBC estimates 10 to 15 per cent of insurance claims contain an element of fraud or exaggeration, consistent with industry estimates.” One customer “who was prohibited from driving claimed his vehicle had been stolen at the time it was involved in a three-vehicle crash,” ICBC stated. “Forensic testing of residue on the vehicle’s driver-side airbag revealed a DNA match to the customer and proved he was in fact the driver at the time of the crash.” That customer was fined $1,000 after being found guilty of providing a false statement relating to an ICBC. The customer was also ordered to pay ICBC “more than $18,000 in claims costs and total loss payments paid out for the other two vehicles involved in the crash.” l 4
Claims Canada
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• first notice FN Ontario lawyer challenges dispute resolution system
Driverless cars could yield $65 billion: Conference Board
A Toronto-based personal injury lawyer is challenging, on constitutional grounds, an amendment to Ontario’s Insurance Act that changes the dispute resolution for auto insurance claims. Currently, when there is a dispute over an auto insurance claim, both the insurer and claimant can apply for mediation with the Financial Services Commission of Ontario. If after mediation there are still issues in dispute, the claimant may either apply for arbitration with FSCO or launch a lawsuit. This will change once an amendment - moving the dispute resolution system to Ministry of the Attorney General’s Licence Appeal Tribunal - takes effect. The Insurance Act will now prohibit parties from bringing such proceedings into court, “other than an appeal from a decision of the Licence Appeal Tribunal or an application for judicial review.” That restriction violates both the section of the 1982 Charter of Rights and Freedoms guaranteeing equal protection under the law regardless of disability, and a section of the 1867 Constitution Act stipulating the appointment of judges, personal injury lawyer Joseph Campisi contended January 26 in a court challenge. The Insurance Act amendment was in Bill 15, an omnibus bill that was passed into law last November. Section 280 (1) - which has yet to come into force - will allow insured persons and insurers to apply to the Licence Appeal Tribunal in order to resolve disputes “in respect of an insured person’s entitlement to statutory accident benefits or in respect of the amount of statutory accident benefits to which an insured person is entitled.” The restriction on court proceedings “has a disproportionate impact on the physically and mentally disabled, due to the magnitude of entitlement of benefits and the potential magnitude of disputes that arise” in claims under Ontario’s Statutory Accident Benefits Schedule (SABS), wrote Campisi in an application filed Jan. 26 with the Ontario Superior Court of Justice in Toronto. l
Automated vehicles - or self-driving cars - could be on Canadian roads between 2020 and 2025, with the economic benefits being more than $65 billion per year, says a new report from the Conference Board of Canada. That benefit could be seen through collision avoidance, fuel cost savings and avoiding congestion, according to the report, completed in collaboration with the Van Horne Institute and the Canadian Automated Vehicles Centre of Excellence. “The potential scope for impacts of automated vehicles on Canada is profound,” Vijay Gill, director of policy research at the Conference Board of Canada, noted in a statement on the report. “Self-driving cars could free up driving time, significantly reduce the number of car accidents, minimize road congestion and reduce the amount of fuel that we consume,” Gill said.“However, these new vehicles will pose some economic and social challenges including possible job-displacement and required employment retraining.” Of the 2,000 annual road fatalities in Canada (based on 2011 figures), 1,600 could be prevented through automated vehicle use, the Conference Board suggests. Overall, economic benefit can be broken down as: • Fewer collisions - $37.4 billion • Saving drivers’ time - $20 billion • Fuel cost savings - $2.6 billion • Reduced traffic congestion - $5 billion “Jobs and trades will change as direct and indirect employment displacement may occur in transport, truck and courier services, taxi and bus drivers, auto insurance, driving instructors and parking attendance,” the Conference Board noted. “On the positive side, there will be new business opportunities for the auto and technological industries related to the design and manufacture of sensors, software, etc. for AVs.” l
Ontario court rules against auto glass firm An Ontario court recently dismissed a breach-of-contract lawsuit against The Co-operators General Insurance Company, filed by Resq Auto Glass Inc., over repairs to windshields of vehicles insured by The Co-operators. Court records indicate that between February 2012 to July 2014, repairs were done to windshields of 1,844 vehicles and that The Co-operators authorized repairs at $50 per repair. In 109 cases, Resq Auto Glass billed The Co-operators $50 for the repair and in the other cases, The Co-operators was billed $100. The Co-operators paid $50 per repair and Resq went to court seeking an extra $50 each, on the repairs for which it billed $100. The total damages Resq Auto Glass sought was $208,359.57. “The plaintiff contends that it ought to be paid at the rate of $100 because that is the ‘market’ rate for windshield repairs in the industry,” wrote Madam Justice Wailan Low, of the Ontario Superior Court of Justice, in her ruling Feb. 11. Justice Low dis6
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missed Resq Auto Glass’s motion for summary judgment and granted The Co-operators’ motion for summary dismissal. “In contrast to companies operating auto glass replacement and repair businesses out of brick and mortar locations which get business from car owners who approach them, the plaintiff does not operate out of a fixed location,” Justice Low wrote. “The plaintiff’s business with automobile owners is initiated through independent contractors who find cars with one or more windshield chips, identify the owners, ascertain the owners’ insurers, and place calls to the insurers to facilitate authorization by the insurers to the plaintiff to do the repair.” The Co-operators sent documents to Resq authorizing the repairs for $50, with a notice reading: “The Co-operators will not pay more then (sic) the amounts that are stated on this quotations. If modifications are needed please call us for authorization.” l www.claimscanada.ca
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• first notice FN Permanent fixes needed to Ontario auto: IBC Progress on the Ontario insurance product will continue to stall out without changes to clarify injury definitions and to enhance transparency in the tort system, both of which are fuelling higher costs and hampering efforts to achieve government-mandated rate reductions, speakers suggested during P&C Crystal Ball 2015 January 22 in Toronto. Barbara Taylor, director of policy, Ontario for the Insurance Bureau of Canada (IBC), said that changes outlined in Bill 15 are a good start and should help control some costs. Even so, a familiar problem – rising accident benefit (AB) and bodily injury (BI) costs – represents a clear signal that additional reforms are needed to the auto insurance product and the system, Taylor told attendees of the conference, organized by CW Group. Data from the General Insurance Statistical Agency shows total claims costs per vehicle increased almost 12% between 2012 and 2013, she reported. Claims cost per vehicle, except for Com-
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www.claimscanada.ca Produced by the publishers of Canadian Underwriter magazine
A bi-monthly magazine (6x per year), Claims Canada is published by NEWCOM Business Media Inc. is located at: 80 Valleybrook Drive, Toronto, ON, M3B 2S9. Claims Canada magazine is the Official Publication of the Canadian Independent Adjusters’ Association [CIAA] and through its editorial content and circulation brings together the ‘entire property & casualty insurance claims market nationally’ with information and insight into the profession, business and people of insurance claims and loss adjusting. All key claims process stakeholders are reached as part of our readership community – including: both CIAA member and non-member independent claims adjusting firms; insurance and reinsurance company executive, claims management
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prehensive, was up in 2013, the most problematic of which are AB (up 10.5% from 2012) and BI (up 19% since 2011). Taylor argued that rising costs in AB and BI demonstrate those in the “car accident business” – such as personal injury lawyers and med-rehab providers – are working around the latest reforms to find new ways to maximize pay-outs. In response, IBC proposes that the provincial government adopt changes to bring much needed scrutiny, transparency and fairness to the tort system. “We are asking the government to require personal injury lawyers and paralegals who represent auto insurance claimants to submit to the Superintendent all information about their fees – including contingency fee arrangements, disbursements, court awarded and settled costs, and referral arrangements,” she announced. The Superintendent would then review the information, assess the impact on auto insurance costs, and issue an annual report, she said. l
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Mike Wells Account Manager • (416) 510-5122 mike@canadianunderwriter.ca
and claims adjusting personnel; corporate risk managers and loss control professionals; insurance brokers; insurance law firms; forensic engineers and accountants; appraisal, restoration, rehabilitation and collision repair professionals; Insurance Institute chapters; insurance associations, regulators and related claims market recipients. The contents of this publication may not be reproduced or transmitted in any form, either in part or in full, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent.
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CIAA REGIONAL PRESIDENTS 2014 – 2015 NEWFOUNDLAND & LABRADOR TBA
NOVA SCOTIA E. Grant King, BA, B.Ed., CIP Crawford & Company (Canada) Inc. 120 – 237 Brownlow Avenue Dartmouth, NS B3B 2C7 Phone: (902) 468-7787 Fax: (902) 468-5822 E-mail: Grant.King@crawco.ca
NEW BRUNSWICK & PRINCE EDWARD ISLAND Luc Aucoin, BBA, FCIP Plant Hope Adjusters Ltd. 85 Englehart Street Dieppe, NB E1A 8K2 Phone: (506) 853-8500 Fax: (506) 853-8501 E-mail: laucoin@planthope.com
QUEBEC/AESIQ Denis Duchesne Cunningham Lindsey Canada Claims Services Ltd. 1250 rue Guy, bureau 1000 Montreal, QC H3H 2T4 Phone: (514) 938-5400 Fax: (514) 938-5445 E-mail: dduchesne@cl-na.com
ONTARIO Dorothy Lowry, FCIP Crawford & Company (Canada) Inc. 11 - 431 Bayview Drive Barrie, ON L4N 8Y2 Phone: (705) 728-5597 Fax: (705) 728-2167 E-mail: Dorothy.Lowry@crawco.ca
MANITOBA Craig Shanks, BA, CIP Network Adjusters Ltd. 64 Regent Cres. Brandon, MB R7B 2W9 Phone: (204) 725-7436 Fax: (204) 725-7437 E-mail: craig.shanks@mymts.net
SASKATCHEWAN Cheryl Hanson Crawford & Company (Canada) Inc. 210 – 227 Primrose Drive Saskatoon, SK S7K 5E4 Phone: (306) 931-1999 Fax: (306) 931-2212 E-mail: Cheryl.Hanson@crawco.ca
WESTERN M. Doreen Lennon, CIP Townsend & Leedham Adjusters Ltd. 200, 4245 - 97 Street Edmonton, AB T6E 5Y7 Phone: (780) 463-7776 Fax: (780) 462-1280 E-mail: dlennon@tladjusters.com
PACIFIC TBA
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National Standing Committees 2014-2015 ADVISORY Gary Ellis, BBA, FCIP, RF, FCLA, FCIAA, FIFAA AMG Claims Inc. 535 North River Road, Unit 3 Charlottetown, PE C1E 1J6 Phone: (902) 628-9091 Fax: (902) 628-9093 E-mail: gary.ellis@amgclaims.ca Marie C. Gallagher, FCIP, CRM Kernaghan Adjusters Limited 602 – 1 St. Paul Street St. Catharines, ON L2R 7L3 Phone: (905) 499-0018 Fax: (905) 538-7981 E-mail: mgallagher@kernaghan.com
John Jones, BA Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: jjones@cl-na.com Craig J. Walker, CIP, FCIAA, FIFAA Maltman Group International 3550 Victoria Park Ave., Suite 301 Toronto, ON M2H 2N5 Phone: (416) 492-4411 Fax: (416) 492-5657 E-mail: cwalker@maltmans.com
COMMUNICATIONS Richard Swierczynski, BA, CIP AZ Claims Services Inc. 1500 Upper Middle Rd., Unit #3, P.O. Box 76041 Oakville, ON L6M 3G3 Phone: (905) 825-0027 Fax: (905) 825-5543 E-mail: richard@azclaims.ca John D. Seyler, CIP Integrated Insurance Resources 5080 Timberlea Blvd., Suite 214 Mississauga, ON L4W 4M2 Phone: (905) 238-4985 Fax: (905) 238-2735 E-mail: jseyler@integrated-ins.ca
FINANCE John D. Seyler, CIP Integrated Insurance Resources 5080 Timberlea Blvd., Suite 214 Mississauga, ON L4W 4M2 Phone: (905) 238-4985 Fax: (905) 238-2735 E-mail: jseyler@integrated-ins.ca Albert Poon, CIP Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: apoon@cl-na.com
Fred R. Plant, AIIC Plant Hope Adjusters Ltd. 85 Englehart Street Dieppe, NB E1A 8K2 Phone: (506) 853-8500 Fax: (506) 853-8501 E-mail: fplant@planthope.com
IBC: LIAISON, LEGISLATIVE & FORMS Paul Hancock, B.Sc., CIP Crawford & Company (Canada) Inc. 300 – 123 Front Street West Toronto, ON M5J 2M2 Phone: (416) 867-1188 Fax: (416) 867-1925 E-mail: Paul.Hancock@crawco.ca
CONSTITUTION & RULES John Jones, BA Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: jjones@cl-na.com
LICENSING J. Miles O. Barber, B.Comm. (Hons.), FCIP, CRM Network Adjusters Ltd. 67 Folkestone Blvd. Winnipeg, MB R3P 0B4 Phone: (204) 897-5793 Fax: (204) 897-5797 E-mail: mbarber@mts.net
Bob Grouchy, BA, FCIP, CRM Allianz Global 1600 – 130 Adelaide Street West Toronto, ON M5H 3P5 Phone: (416) 915-4247 Fax: (416) 849-4555 E-mail: bob.grouchy@agr.allianz.ca
CONVENTION Krystine Wolochatiuk Cunningham Lindsey Canada Claims Services Ltd. 74 Cedar Pointe Drive, Suite 1001 Barrie, ON L4N 5R7 Phone: (705) 728-8398 Fax: (705) 734-0559 E-mail: kwolochatiuk@cl-na.com
MEMBERSHIP & QUALIFICATIONS Georgiana Chen, CIP ProFormance Group Insurance Solutions Inc. 1101 Kingston Rd., Suite 280 Pickering, ON L1V 1B5 Phone: (877) 539-3111 Fax: (905) 554-3776 E-mail: gchen@proadjusting.ca
Tim Guernsey RSA Canada 18 York Street, Suite 800 Toronto, ON M5J 2T8 Phone: (416) 366-7511 Fax: (416) 367-9869 E-mail: tim.guernsey@rsagroup.ca
DESIGNATION Paul W. Greening, CLA, FCIAA Greening Aviation Claims Inc. 26C Palliser Park, Box 190 Riverhurst, SK S0H 3P0 Phone: (306) 353-2000 Fax: (306) 353-2200 E-mail: pgreening@sasktel.net
NOMINATING Marie C. Gallagher, FCIP, CRM Kernaghan Adjusters Limited 602 – 1 St. Paul Street St. Catharines, ON L2R 7L3 Phone: (905) 499-0018 Fax: (905) 538-7981 E-mail: mgallagher@kernaghan.com
Albert Poon, CIP Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: apoon@cl-na.com
Paul Hicks, FCIP, CRM TD Insurance 2161 Yonge Street, 4th Floor Toronto, ON M4S 3A6 Phone: (416) 486-2507 Fax: (416) 545-6022 E-mail: Paul.Hicks@tdinsurance.com
E. Brian Gough, FCIP, CLA, FCIAA Marsh Adjustment Limited 1550 Bedford Highway, Suite 711 Bedford, NS B4A 1E6 Phone: (902) 469-3537 Fax: (902) 469-2396 E-mail: ebgough@marshadj.com
Albert Poon, CIP Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: apoon@cl-na.com
Gary Ellis, BBA, FCIP, RF, FCLA, FCIAA, FIFAA AMG Claims Inc. 535 North River Road, Unit 3 Charlottetown, PE C1E 1J6 Phone: (902) 628-9091 Fax: (902) 628-9093 E-mail: gary.ellis@amgclaims.ca
Peter Hohman Insurance Institute of Canada 18 King Street East, 6th Floor Toronto, ON M5C 1C4 Phone: 416-362-8586 Fax: 416-362-1126 E-mail: phohman@insuranceinstitute.ca
Monica Kuzyk, FCIP, CRM Curo Claims Services 125 Northfield Dr. W., P.O. Box 218 Waterloo, ON N2J 3Z9 Phone: (866) 952-2876 Fax: (519) 888-9704 E-mail: mkuzyk@curocanada.com
Justin MacGregor Highgate Insurance Brokers Inc. 151 Rose Glen Rd. Port Hope, ON L1A 3V6 Phone: (905) 885-1551 E-mail: justinmacgregor@highgateinsurance.com
EDITORIAL Mary Charman, CIP Crawford & Company (Canada) Inc. 1 – 120 Mulock Dr. Newmarket, ON L3Y 7C5 Phone: (905) 898-0008 Fax: (905) 898-1705 E-mail: Mary.Charman@crawco.ca
Marie C. Gallagher, FCIP, CRM Kernaghan Adjusters Limited 602 – 1 St. Paul Street St. Catharines, ON L2R 7L3 Phone: (905) 499-0018 Fax: (905) 538-7981 E-mail: mgallagher@kernaghan.com
Mark Weir Intact Financial Corporation 700 University Avenue, 13th Floor Toronto, ON M5G 0A1 Phone: (416) 341-1464 Fax: (416) 217-0562 E-mail: mark.weir@intact.net
John M. Sharoun, FCIP, FCIAA, CRM Crawford & Company (Canada) Inc. 300 – 123 Front Street West Toronto, ON M5J 2M2 Phone: (416) 867-1188 Fax: (416) 867-1925 E-mail: John.Sharoun@crawco.ca
PRIVACY James B. Eso, CIP, CIOP Crawford & Company (Canada) Inc. 539 Riverbend Drive Kitchener, ON N2K 3S3 Phone: (519) 578-5540 Fax: (519) 578-2868 E-mail: Jim.Eso@crawco.ca
Patricia M. Battle Canadian Independent Adjusters’ Association/L’Association Canadienne des Experts Indépendants Centennial Centre, 5401 Eglinton Ave. West, Suite 100 Etobicoke, ON M9C 5K6 Phone: (416) 621-6222 Toll Free: 1-877-255-5589 Fax: (416) 621-7776 E-mail: pbattle@ciaa-adjusters.ca
Alex Walker, CIP Royal & Sun Alliance 2225 Erin Mills Parkway, Suite 1000 Mississauga, ON L5K 2S9 Phone: (905) 412-1397 Fax: (905) 403-2328 E-mail: Alex.Walker@rsagroup.ca
EDUCATION Gary Ellis, BBA, FCIP, RF, FCLA, FCIAA, FIFAA AMG Claims Inc. 535 North River Road, Unit 3 Charlottetown, PE C1E 1J6 Phone: (902) 628-9091 Fax: (902) 628-9093 E-mail: gary.ellis@amgclaims.ca
Keith P. Edwards, FCILA, CLA, FUEDI-ELAE CIAA Honorary Life Member c/o CIAA National Office 5401 Eglinton Ave. W., Suite 100 Etobicoke, ON M9C 5K6 Phone: (416) 621-6222 Fax: (416) 621-7776 E-mail: info@ciaa-adjusters.ca
EMERGENCY MEASURES Richard Van Horne Action Investigations Inc. 2 Catelina Court Dartmouth, NS B2X 3G9 Phone: (902) 462-1222 Fax: (902) 462-3688 E-mail: richardvanhorne@actioninvestigations.ca
PROFESSIONAL PRACTICES Marie C. Gallagher, FCIP, CRM Kernaghan Adjusters Limited 602 – 1 St. Paul Street St. Catharines, ON L2R 7L3 Phone: (905) 499-0018 Fax: (905) 538-7981 E-mail: mgallagher@kernaghan.com
James B. Eso, CIP, CIOP Crawford & Company (Canada) Inc. 539 Riverbend Drive Kitchener, ON N2K 3S3 Phone: (519) 578-5540 Fax: (519) 578-2868 E-mail: Jim.Eso@crawco.ca John Jones, BA Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: jjones@cl-na.com Craig J. Walker, CIP, FCIAA, FIFAA Maltman Group International 3550 Victoria Park Ave., Suite 301 Toronto, ON M2H 2N5 Phone: (416) 492-4411 Fax: (416) 492-5657 E-mail: cwalker@maltmans.com CIAA NATIONAL INSURANCE INDUSTRY ADVISORY BOARD Patti M. Kernaghan, FCIP, CRM Kernaghan Adjusters Limited 300 - 1575 West Georgia Street Vancouver, BC V6G 2V3 Phone: 1-800-387-5677 Fax: 1-800-387-5644 E-mail: pkernaghan@kernaghan.com
James B. Eso, CIP, CIOP Crawford & Company (Canada) Inc. 539 Riverbend Drive Kitchener, ON N2K 3S3 Phone: (519) 578-5540 Fax: (519) 578-2868 E-mail: Jim.Eso@crawco.ca
Sasha Alexander University of Guelph Alexander Hall 50 Stone Road East Guelph, ON N1G 2W2 Phone: (519) 824-4120 Fax: (519) 824-0364 E-mail: sasha@uoguelph.ca Jo-Ann Eccleston, CIP Aviva Canada Inc. 2206 Eglinton Ave. East Toronto, ON M1L 4S8 Phone: (416) 689-3328 Fax: 1-866-805-8585 E-mail: jo-ann_eccleston@avivacanada.com
CAREER RECRUITMENT PLANNING Richard Swierczynski, BA, CIP AZ Claims Services Inc. 1500 Upper Middle Rd., Unit #3, P.O. Box 76041 Oakville, ON L6M 3G3 Phone: (905) 825-0027 Fax: (905) 825-5543 E-mail: richard@azclaims.ca
Robert V. Pearson, CLA, FCIAA CIAA Honorary Life Member c/o CIAA National Office 5401 Eglinton Ave. W., Suite 100 Etobicoke, ON M9C 5K6 Phone: (416) 621-6222 Fax: (416) 621-7776 E-mail: info@ciaa-adjusters.ca
February/March 2015
James B. Eso, CIP, CIOP Crawford & Company (Canada) Inc. 539 Riverbend Drive Kitchener, ON N2K 3S3 Phone: (519) 578-5540 Fax: (519) 578-2868 E-mail: Jim.Eso@crawco.ca Craig J. Walker, CIP, FCIAA, FIFAA Maltman Group International 3550 Victoria Park Ave., Suite 301 Toronto, ON M2H 2N5 Phone: (416) 492-4411 Fax: (416) 492-5657 E-mail: cwalker@maltmans.com
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Message from the President La Plume du Président ALBERT POON
The start of a New Year marks a fresh beginning – and so it is for our national association. In early February, the CIAA membership concluded our mid-year meeting with the affirmation of our strategic plan. This will guide our activities and efforts for the remainder of 2015 and over the next three years. Our strategic plan is not necessarily novel or earth shattering, but rather picks up on some key strands in the continuity of leadership set by past CIAA presidents. The main areas of focus will be greater brand awareness for our association, increased membership, partnerships with other industry organizations to enhance member value and promotion of continuing education and professional development. We have seen, and will continue to see, practical examples of this strategic plan in action. For instance, CIAA announced earlier this year our partnership with Verisk Analytics and PCS Canada to provide comprehensive loss information and resources for catastrophe events. This collaboration will benefit both organizations. Another example of thought leadership was the recently held 48th annual CICMA/CIAA Ontario Chapters’ annual joint conference at the Metro Toronto Convention Centre February 3. Not only was it a great opportunity to network and see some friendly faces, the conference also featured top-notch speakers who explored the issue of catastrophe management (also the theme of this Claims Canada magazine). Hats off to the many volunteers who helped to organize this well-attended gathering of insurance claims professionals and industry representatives. We will continue to see more examples of partnership and professional development in the months and years ahead for CIAA. Whether it is continuing education opportunities across the provinces or the building 10 Claims Canada
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Le début d’une nouvelle année est synonyme d’un nouveau départ, et cela est le cas pour notre association nationale. Au début du mois de février, les membres de l’ACEI ont conclu notre réunion de mi-année en présentant notre plan stratégique. Cela permettra d’orienter nos activités et nos efforts pendant le reste de l’année 2015, ainsi qu’au cours des trois prochaines années. Notre plan stratégique n’est pas particulièrement novateur ni révolutionnaire : il repose plutôt sur des éléments clés permettant d’assurer la continuité du leadership adopté par les présidents antérieurs de l’ACEI. Nous nous concentrerons principalement sur l’amélioration de la notoriété de la marque de notre association, l’augmentation des adhésions, l’établissement de partenariats avec d’autres organisations du secteur dans le but d’améliorer la valeur pour nos membres, ainsi que sur la promotion de la formation et du perfectionnement professionnel continus. Nous avons observé et continuerons d’observer des exemples de mise en œuvre de ce plan stratégique. Par exemple, l’ACEI a annoncé plus tôt cette année l’établissement d’un partenariat avec Verisk Analytics et PCS Canada, qui fournira des renseignements complets sur les sinistres et les ressources requises lorsque survient une catastrophe. Ce partenariat bénéficiera aux deux organisations. Un autre exemple de leadership éclairé récemment observé est la 48e conférence conjointe annuelle de l’ACDSA et de l’ACEI de la section de l’Ontario, qui s’est tenue le 3 février au Palais des congrès du Grand Toronto. Cet événement a été une excellente occasion de faire du réseautage et de rencontrer des personnes amicales, mais également d’entendre des conférenciers de premier plan, qui ont abordé la question de la gestion des catastrophes (sujet également abordé dans le présent magazine de Claims Canada). Félicitations aux nombreux bénévoles qui ont participé à l’organisation de ce populaire rassemblement de spécialistes des sinistres et de représentants du secteur de l’assurance. En ce qui concerne l’ACEI, nous continuerons d’observer d’autres exemples de partenariat et de perfectionnement professionnel au cours des mois et des années à venir. Qu’il s’agisse de possibilités de formation continue dans toutes les provinces ou du développement de nouwww.claimscanada.ca
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of new bridges to existing industry organizations, we will be active in promoting the role and visibility of our association. These efforts are a critical part of breathing life into our strategic plan. However, we also need to be flexible in our approach. The property and casualty insurance market is evolving and we will certainly see more change in the years ahead. That change may come in the form of increased consolidation, revamped insurance company claims handling strategies, new service initiatives or continued cost pressures on claims departments and their partners. Our strategic plan is only as good as the commitment, dedication and creative efforts of our national executive leadership – and the input of our members. As always, if you have thoughts or ideas about how we can add value to our association, feel free to contact me. I would like to end by quoting Carol Kreiling, Vice President, Swiss Re and one of the presenters at the CICMA/CIAA conference. She was speaking about the topic of cyber risk, but I think her final message also applies broadly to our association:
velles relations avec les organisations existantes du secteur, nous nous engageons à faire la promotion du rôle de notre association et d’en assurer la notoriété. Ces efforts sont essentiels à l’exécution de notre plan stratégique. Toutefois, nous devons également faire preuve de souplesse dans notre approche. Le marché de l’assurance de dommages évolue; par conséquent, nous devrons certainement faire face à d’autres changements au cours des années à venir. Parmi ces changements, notons une consolidation augmentée, des stratégies de traitement des sinistres améliorées pour les sociétés d’assurance, de nouvelles initiatives de service ou une pression continue sur les coûts pour les services de traitement des sinistres et leurs partenaires. La réussite de notre plan stratégique repose sur l’engagement, le dévouement et la créativité de nos dirigeants nationaux, ainsi que sur l’apport de nos membres. N’hésitez pas à communiquer avec moi pour me faire part de vos suggestions sur la façon dont nous pouvons ajouter de la valeur à notre association. Pour terminer, j’aimerais citer Carol Kreiling, vice-présidente de Swiss Re et présentatrice à la conférence de l’ACDSA et de l’ACEI. Lorsqu’elle a abordé le sujet des risques que représentent les cyberattaques, elle a conclu sa présentation en livrant un message qui s’applique également à notre association en général, soit
“We’re smarter together.” n
« Ensemble, nous travaillons plus intelligemment ». n
NATIONAL EXECUTIVE 2014 - 2015 PRESIDENT Albert Poon, CIP Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: apoon@cl-na.com 1ST VICE-PRESIDENT Gary Ellis, BBA, FCIP, RF, FCLA, FCIAA, FIFAA AMG Claims Inc. 535 North River Road, Unit 3 Charlottetown, PE C1E 1J6 Phone: (902) 628-9091 Fax: (902) 628-9093 E-mail: gary.ellis@amgclaims.ca SECRETARY Monica Kuzyk, FCIP, CRM Curo Claims Services 125 Northfield Dr. W., P.O. Box 218 Waterloo, ON N2J 3Z9 Phone: (866) 952-2876 Fax: (519) 888-9704 E-mail: mkuzyk@curocanada.com
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TREASURER John D. Seyler, CIP Integrated Insurance Resources 5080 Timberlea Blvd., Suite 214 Mississauga, ON L4W 4M2 Phone: (905) 238-4985 Fax: (905) 238-2735 E-mail: jseyler@integrated-ins.ca PAST-PRESIDENT Marie C. Gallagher, FCIP, CRM Kernaghan Adjusters Limited 602 – 1 St. Paul Street St. Catharines, ON L2R 7L3 Phone: (905) 499-0018 Fax: (905) 538-7981 E-mail: mgallagher@kernaghan.com EXECUTIVE DIRECTOR Patricia M. Battle Canadian Independent Adjusters’ Association/ L’Association Canadienne des Experts Indépendants Centennial Centre, 5401 Eglinton Avenue West, Suite 100 Etobicoke, ON M9C 5K6 Phone: (416) 621-6222 Toll Free: 1-877-255-5589 Fax: (416) 621-7776 E-mail: pbattle@ciaa-adjusters.ca
DIRECTOR James B. Eso, CIP, CIOP Crawford & Company (Canada) Inc. 539 Riverbend Drive Kitchener, ON N2K 3S3 Phone: (519) 578-5540 Fax: (519) 578-2868 E-mail: Jim.Eso@crawco.ca DIRECTOR John Jones, BA Cunningham Lindsey Canada Claims Services Ltd. 1102 – 50 Burnhamthorpe Rd. W. Mississauga, ON L5B 3C2 Phone: (905) 896-8181 Fax: (905) 896-3485 E-mail: jjones@cl-na.com DIRECTOR Craig J. Walker, CIP, FCIAA, FIFAA Maltman Group International 3550 Victoria Park Ave., Suite 301 Toronto, ON M2H 2N5 Phone: (416) 492-4411 Fax: (416) 492-5657 E-mail: cwalker@maltmans.com
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CS
• cover story
CAT ISSUE
THE
BY CRAIG HARRIS
I
nformation is the new currency of catastrophe management – how to get it, verify it and respond to it. Whether the matter at hand is realtime weather data related to a progressing windstorm, location intelligence to verify concentration of risk through geocoding or automated online tools to coordinate dispatching of claims adjusters to affected areas, technology and data are playing increasing roles in how the property and casualty insurance industry responds to natural or man-made disasters. There are many examples of changing approaches to catastrophe management. In early January, the Canadian Independent Adjusters’ Association announced a strategic alliance with Verisk Analytics that will provide comprehensive resources and services to independent adjusters. CIAA members will re-
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ceive access to PCS Canada catastrophe loss information, which will help firms plan for catastrophe events, allocate resources more effectively and reduce cycle time, ultimately contributing to lower loss adjustment expense. In addition, CIAA will use its relationships to provide post-event insights to PCS for use in Canadian catastrophe bulletins, as well as photos, videos, and commentary from adjusters at the event site. PCS team members will also participate in “ride-alongs” to help enhance on-the-ground damage assessments and other important business insights for the Canadian insurance industry. Several other instances of new or enhanced technology are emerging in catastrophe management. One of the main buzzwords today is ”location intelligence.” This is defined by one provider
“as the capacity to organize and understand complex data through the use of geographic relationships.” Location intelligence is often combined with risk analysis and predictive models in what software firms call “geospatial analytics.”
Location Intelligence The process of “geocoding” an address assigns a unique latitude and longitude to a physical location. It can pinpoint the location down to the building rooftop level. It can also show the proximity of a property’s distance to any identifiable hazards. Several companies, including DMTI Spatial, Esri, Pitney Bowes/MapInfo and Geospatial Networks, have ramped up their location intelligence offerings to insurance companies and claims professionals to provide a more detailed view of risk. These can also greatly aid in the
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Emergent trends in catastrophe management involve the use of location intelligence, satellite imagery and even early experiments with drones. The goal for insurance companies is to gather highly specific information to efficiently dispatch adjusters to target areas hit by natural disasters. However, the 48th annual joint CICMA/CIAA conference held in Toronto February 3 showed that catastrophes often extend to more than “just the weather.” And when it comes to dealing with CATs, attendees learned that the core fundamentals of adjusting haven’t really changed.
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catastrophe planning process, both in pre-risk identification and in claims adjusting. “Predictive analytics models are developed for risk management to help determine tolerance capacity within specific geographic areas, as well as catastrophe planning and Probable Maximum Loss analyses based on different types of events—and based on real-time peril information, like the track of an onrushing hurricane, tropical storm, tornado or severe thunderstorm, according to Pitney Bowes Software white paper – You Can See Clearly Now: How a Single View of Risk Drives Competitive Advantage.
and optimally plan for catastrophic events by precisely determining areas (and insured properties) likely to suffer losses,” notes the Pitney Bowes white paper. “They can better manage the aftermath of those events, helping them get ‘boots on the ground’ to allocate claimsunit resources, prioritize claims, get adjusters to the site of damaged properties as fast as possible, set up triage units, or route customers to the closest possible branch office or auto repair facility.” “Catastrophe management is one of the prime areas in which insurers at the business level can put location intelligence to practical use,” according to Pitney Bowes. “The insurance industry has
This aerial view can give insurers and their claims partners an edge in estimating damage in specific areas, allowing them to focus on regions hit hardest by catastrophes, according to experts. In the case of flood and water damage, for example, an insurance company can map the addresses of insured structures and overlay floodplain boundaries to identify all structures within the area at risk. With this information, the insurer can calculate the total financial impact on reserves from a potentially catastrophic flood. “A national file of flood-hazard maps for Canada will allow you to understand the risk associated with one address or your entire portfolio,” notes Steve Sigal, vice president, product management for DMTI Spatial. Geospatial analytics and location intelligence can also aid in the claims handling process. “Claims personnel can expedite adjustment and claims processes 14 Claims Canada
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taken sharp notice of the rising trend in costly natural disaster events in Canada and its accumulation of risk in key geographical areas. This is especially true for water damage, severe rainfall events and potential earthquake exposures. Without question, implementing bestin-class catastrophe management for natural disasters has become one of the most critical strategic business drivers for the property and casualty industry.”
Satellite Imagery Another key technology development in CAT management is the use of satellite imagery. According to an April 2014 publication of Lloyd’s Market News, “using satellite information to better understand
and monitor natural catastrophes has gained pace in the insurance industry in recent years. “It cited SCOR chief executive Denis Kessler, who predicted that by 2020 the reinsurance industry would be widely utilizing satellite loss assessments. Indeed, several companies already use satellite imagery in catastrophe loss management. Swiss Re employs a software system called CatNet that combines natural hazard information with Google Maps and satellite imagery, allowing clients to assess the extent of a disaster soon after it occurs. “The CatNet functions and data facilitate a professional overview and assessment of natural hazard exposure for any location worldwide,” Swiss Re states in its product description. “This makes CatNet a valuable tool in preparing local, regional and cross-regional risk profiles.” In another example, Guy Carpenter recently launched a new satellite-based service, GC CAT-VIEW, which aims to provide initial loss estimates of catastrophe events using satellite imagery and other data sources. Some of the reinsurance broker’s clients with exposure to the 2014 UK floods used the service for initial insured loss estimates for that CAT event. This aerial view can give insurers and their claims partners an edge in estimating damage in specific areas, allowing them to focus on regions hit hardest by catastrophes, according to experts. “Insurance organizations that are able to view property damage from the air, and know the precise location of insured property, will be able to commence adjustment processes and plan for onthe-ground response when this is possible,” notes Karen Pauli, a research director with CEB TowerGroup Insurance. “Most importantly, these insurers will be able to more accurately execute vital customer service and communicate with policyholders from a position of knowledge. Due to the overwhelming burden of uncertainty, these actions will propel an insurer up the ladder of consumer ‘best choices for insurance.’”
Drones in Insurance? “From the air” could extend to the use of commercial unmanned aerial units, or “drones.” Several analysts and research firms have studied the potential usage of drones in insurance CAT scenarios, particularly in situations where adjusters face challenges entering an area due to physical dangers. www.claimscanada.ca
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A study by research firm Cognizant estimated that about tion, banking, retail, telecommunications, according to Kreil40,000 drones are expected to be in use in 2015, 70,000 by 2016 ing. “A data breach could affect all these interconnected netand 105,000 by 2017. The insurance implications for claims han- works,” she said. “One of the focuses that we have to think about dling is intriguing, according to the paper, Drones: The Insur- is the entire cyber safety infrastructure within corporations and ance Industry’s Next Game-Changer? governments.” “Given the increasing number of catastrophes, the limited Cyber Safety Infrastructure availability of claims adjusters and the high number of claims, In particular, Kreiling focused on the oil and gas sector as a insurers face some tough challenges when it comes to managvulnerable target of cyber attacks. “If you look at the oil industry ing the customer experience and settling claims in a timely and the energy sector, a cyber attack against them could be abmanner,” Cognizant stated in the paper. solutely catastrophic.” Statistics show “40 “Drones can help overcome this problem per cent of the cyber attacks against the by accelerating claims adjudication. … United States infrastructure is targeted at These devices can quickly locate insured the energy sector and projections are that locations using built-in GPS locators, by 2018, the costs of those kinds of data evaluate the ground situation through breaches is going to reach US$1.87 bilsensors, take high-resolution photographs lion,” Kreiling noted. and send information back to adjusters for She cited the August 2012 Shamoon preparing estimates — all within a comvirus attack against Saudi Aramco – Saudi pressed timeframe.” Arabia’s national petroleum and natural Swiss Re also published a paper on gas company – she told attendees that althe topic entitled Insurance and the Rise though the incident did not receive a lot of of Drones. After noting that the annual press coverage, hackers destroyed 85% of spending on commercial and military the hardware on 30,000 computers at the drones is expected to reach $11.6 billion company. by 2023, the reinsurer observed that catas“Could you imagine what would have trophe response represents a big potential happened had that attack been more widemarket for unmanned aerial vehicles. spread and had it totally devastated the “After a natural catastrophe, a drone company?” Kreiling asked. “It wouldn’t could reach a remote scene much faster just impacted and destroyed a comthan a claims adjuster,” Swiss Re stated. A study by research firm have pany. It could have had severe devastating “In addition, drones could be deployed to effects on the country of Saudi Arabia.” Cognizant estimated areas unreachable by claims adjusters, for “Devastating” is also a word used to example, in a flood zone. Besides the speed that about 40,000 drones describe the flooding in southern Alberta of deploying resources to insureds, the cost are expected to be in in June 2013 – to date, Canada’s costliest savings to insurers could be significant.” natural disaster. With roughly $5 billion use in 2015, The Role of Claims Professionals in estimated costs for recovery and reTechnology is not the only element of 70,000 by 2016 and building, Alberta’s assistant deputy minchange when it comes to catastrophic risk. ister of financial sector regulation and 105,000 by 2017. Catastrophe management and the role of policy Mark Prefontaine, who spoke at the claims professionals was the theme of this conference via Skype, said the province is year’s CICMA/CIAA joint conference held February 3 in Toron- still dealing with claims today, particularly in the hard hit area to. Speakers examined a range of issues – from the broadened of High River. view of what is considered a “catastrophe” to the issues still prevailing from the floods in southern Alberta to the evolving role Flooding and Customer Communication The flooding in Calgary and other parts of southern Alberta was of the independent adjuster in handling disaster claims. Master of Ceremonies Brian Maltman provided context exacerbated by two issues – confusion amongst consumers about water damage coverage in homeowner insurance policies and the about the changing nature of “CAT” claim events. “Remember when catastrophes used to refer to earthquakes? inconsistency of claims decisions by various insurance companies, No longer,” said Maltman. “Water is the new fire. Flood events according to Prefontaine. “There was, and still is, a lack of knowledge from consumers in the rivers, in the cities and in the Prairies have taken over and are increasing in frequency. We have seen hailstorms, wildfires about what policies did and did not cover,” he said. “The comthreatening entire towns and now the risk of cyber losses on a plexity of the insurance policy does not lend itself to being user friendly.” catastrophic scale.” When it comes to cyber risk, speaker Carol Kreiling, a vice Prefontaine also noted that terminology such as “direct or president with Swiss Re, called 2014 the “year of the cyber at- indirect causation” and differing insurer interpretations meant tack. There was a 48 per cent increase in data breaches last year,” that “in the same neigbourhood, the same block, some homeshe noted. Kreiling said that the level of sophistication of cy- owners would have coverage (for flood damage), others would ber attacks have increased dramatically with the involvement of not… This raised a lot of questions and led to challenges for sevstate-sponsored or state-affiliated hacking and organized crime. eral insurers on social media.” “This is a global issue with global exposure; no one is safe.” Many of the issues associated with customer communicaThis exposure extends to the infrastructure in industrialized tion could worsen with the more recent trend of insurance economies, including energy, food and water supply, transporta- company revisions to personal property insurance wordings, 16 Claims Canada
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deductibles and sub-limits, according to Prefontaine. “What we’re seeing is greater transparency and additional segmentation by cover,” he said. “So no longer are we seeing policies that have a particular policy limit with all perils covered under that policy limit and one deductible.” Prefontaine noted that consumer confusion “will be magnified . . . so that if we do get an additional – and I’m relying on the word ‘if ’ – but if we do get additional losses of any degree of magnitude that affects a larger area, we’re go-
ing to have further checker-boarding in terms of coverage.” He explained that he understands the “competitive reasons” why these changes in policy terms and conditions are being made, but also stated that these “will present challenges for government, challenges for insurers and challenges for those that are managing and adjusting claims.” “I do think some additional collaboration between governments, policymakers, regulators and industry should lead us down the path of an increased level of
If you’re in Manitoba, this is considered an automobile. Surprised? ARC isn’t.
Your customer has a list of the vehicles that are covered by your fleet policy. You have a list of the vehicles that are covered by ARC Group Canada is a national that policy. network of independent law firms, And your lists aren’t theintimately same. each connected to their local market. When the one vehicle that is involved in Insurance risk appear management an accident is the one thatand doesn’t on experts. Regionalnext? strength. both lists, do you know what happens National scope. ARC does. That is the ARC Group.
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understanding of what, in fact, coverage people do have, for what losses, in what scenarios, so that when there are claims, people can more easily understand the process and decisions that are being made,” Prefontaine remarked at the conference.
Transferable Skills
The issues surrounding the Alberta flooding underline a recurrent challenge for adjusters and claims professionals – how to communicate efficiently and appropriately with customers in a time of stress. “Every time we encounter a CAT loss, our skills in adjusting, handling and managing claims are tested because they are needed so urgently and so many times Surprised? over,” Maltman notedARC in hisisn’t. introduction of Carl Van. “We need transferable skills, we need to understand the new types of losses and we need to be able to learn experiences.” ARC from Groupour Canada is a national network ofCarl independent law firms, Van, president and CEO of the Ineach intimately connected to ternational Insurance Institute and an intheir local market. surance training professional, discussed Insurance and riskofmanagement the impact CAT losses on customer experts. Regional strength. service. “I can tell you from a training National scope. standpoint, it is usually a disaster,” Van the ARC said.That “Weishave to beGroup. thinking process and training people how to respond during Go to AskARC.com CAT losses.” Van noted that there is frequently a breakdown in several aspects of customer service during the stress of a multi-claim event, including areas such as:
If you’re in Manitoba, this is considered an automobile.
• communication • empathy • patience and understanding • interpersonal skills • vendor management • meeting expectations • professionalism. The claims professional on the front lines of dealing with CAT losses is often the independent adjuster. They have the Insurance and risk management experts. Regional strength. National scope. Go to AskARC.com skills, expertise and experience to handle the outcome from a natural or man-made disaster, according to Maltman. “We know that CAT losses draw on the skills that we already have, but they also The ARC Legal Reporter strain resources severely,” he noted in his Winter Issue – Article #1 introduction of Glenn Gibson. “What are A National Network of Independent Law Firms the skills that are transferable to new situations that we will face?” When is a medical examination considered a second examination under Rule 36 of the New Brunswick Rules of Court? Glenn Gibson, a veteran adjuster with Crawford and Company (Canada) The ARC Legal Reporter Inc. and current president and COO of Blyth v. Crowther and Kelly Reported Case: Winter IssueCitation: – Article #1 2009 NBCA 80 the Hamilton Tiger-Cats football club, When both the plaintiff’s physical and mental condition are in issue in an action, and At Issue: helped to explain the attributes that adthe plaintiff undergoes a physical examination, will a subsequent application for a psychiatric examination be considered an application for justers a second will medical have to rely on to handle ARC Group Canada is a national network of independent law firms, each intimately connected to their local market.
ependent Law Firms
examination?
dical examination considered a second examination Should medical examinations that are ordered as part of the discovery process be as ‘independent’ medical examinations? Rule 36 of the New 18 Brunswick Rules of Court? Claims Canada February/March 2015 characterized Court of Appeal of New Brunswick The Court: ARC_Fleet ad_1/2 page.indd 1
Judgment Rendered: Factual Summary:
www.claimscanada.ca
October 13, 2009 (Reasons delivered November 2015-02-14 26, 2009) 1:05 PM The plaintiff suffered injuries in a motor vehicle accident and commenced an action seeking damages. Both the plaintiff’s physical state and mental state were in issue in the action. The plaintiff submitted to a physical examination by the defendant’s expert, but subsequently refused to submit to a psychiatric examination.
Blyth v. Crowther and Kelly 009 NBCA 80 When both the plaintiff’s physical and mental condition are in issue in an action, and The adefendant made a motion requesting an order that the plaintiff submit to the he plaintiff undergoes a physical examination, will a subsequent application for psychiatric examination. The motions judge granted the order. The plaintiff appealed, sychiatric examination be considered p12-19 COVER STORY.indd an 18 application for a second medical
arguing that because the examination was a second medical examination, the motions
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CATS in the years ahead. “What skills get developed by adjusters either through daily claims or handling catastrophic losses?” Gibson asked attendees. He listed several traits common to adjusters, including calmness, empathy and respect, ability to handle stress, logical thinking, leadership, communication, process-driven approach, experience and openness. He noted that these attributes helped him cope with the stressful and ambitious construction of the Hamilton Tiger- Cats’ new stadium, which opened September 1, 2014. Gibson also referenced many recent “catastrophic” natural and man-made events, including the earthquake and tsunami in Japan, Hurricane Sandy, the Deepwater Horizon oil spill and the Boston Marathon bombing. Closer to home, Gibson pointed to the Slave Lake wildfire, the flooding in 2013 and the Elliott Lake shopping mall collapse, as well as terrorist attacks, data breaches and class action lawsuits.
Insurance Underpins CATs “Insurance is underpinning virtually every one of these events,” Gibson says. “When it comes to the massive amount of damage, bodily injury losses, commercial buildings and other property, it’s clear that insurance sits at the foundation of these events. It helps rebuild businesses, houses and lives.”
Several traits common to adjusters, include: • calmness, • empathy and respect • ability to handle stress • logical thinking • leadership • communication • process-driven approach • experience • openness
5
For claims adjusters on the front lines of this rebuilding process, Gibson cited many of the priorities and skills they have developed that are rarely recognized outside the insurance profession. Capabilities such as scenario planning, triage/prioritization, quick development of action plans, matching the right people with the right task, establishing command and control centre and taking care of staff are unique to adjusters who have handled catastrophic losses. Gibson also noted that Reader’s Digest’s annual top five survey of careers in Canada typically features emergency workers, physicians, fire services and related professions. “Guess what?” he asked. “Insurance adjusting is not in the top five. All of those professions are there at the front end of a catastrophic event. They are not there for the next 12 months and are not helping to rebuild someone’s life. We are there for the whole shot; we don’ take care of someone for 12 or 24 hours. We are there on the ride from beginning to end. We do a really good job and it is not recognized by a lot of people.” www.claimscanada.ca
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• spotlight S
AB Adjusting, Diversified Trevor Cortese has a passion for and niche in helping injured people get appropriate compensation. That hasn’t, however, stopped his London, Ontario-based firm, TC Insurance Adjusters Ltd., from spreading its wings. BY CRAIG HARRIS
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TC Insurance Adjusters has two offices in London and Exeter, serving all of southwestern Ontario. There are five adjusters at the firm including Cortese – Amanda Vojin (who has been with the firm since 2008), Anthony Edwards, Donna Marry and Peter Maurer. Three administrative assistants provide crucial customer service support. Cortese’s expertise is in accident benefits claims. He says he brings a personalized, intuitive approach to personal injury losses.
challenge “isOur to understand
our clients’ needs, know what the requirements are and maintain those relationships on an ongoing basis.
“
T
revor Cortese vividly remembers an insurance presentation he attended when he first started in the insurance business with Zurich Canada in the early 1990s. “I’ll never forget the instructor saying that by mid-2000, the independent adjuster would be extinct and there would be three of four massive insurance companies operating in Canada,” he recalls. “Sure, there have been purchases and acquisitions. But I always feel there will be that smaller niche for adjusting with the personable touch that clients appreciate. That is the strength of our firm.” Cortese, president and owner of TC Insurance Adjusters, has not just witnessed the M&A activity in property and casualty insurance; he has been an active part of it. After learning the ropes as an accident benefits adjuster with Zurich Canada, he moved to Underwriters Adjustment Bureau Ltd. in a small London office in 2001. UAB was bought by CGI Group Inc. in November 2002 (later to become part of SCM Adjusters). In 2003, Cortese was contacted by Dennis Schembri of Mississauga-based Vanler Insurance Adjusters, who wanted to set up a London office. He jumped at the opportunity and worked for Vanler until 2007, when it was purchased by then-McLarens Canada (later to become Granite Claims Solutions and, more recently, SCM Insurance Services). “I had already worked for a large company and I wanted to continue at a smaller firm,” Cortese says. “So I made the next natural move, which was to set up and incorporate TC Insurance Adjusters in 2007. I have watched the consolidation in this industry; in fact, I have lived it. Now the only way I can control it is to be my own boss.”
“I am a sensitive person first and I look at the situation with an empathetic perspective,” he explains. “But I am also an insurance professional and I have to carry out my line of business and responsibilities as well. I do it as personably as possible. I give my time and energy to the people I deal with, and I am able to explain the insurance part to them as clearly as possible.” “I bring an element of calm to the situation and I have got a lot of positive feedback from brokers, insurers about my dealings with people,” Cortese points out. “That is what has helped me in my business; my clients know me, they know how I interact with people and my approach to
business. There are times when you have to make insurance decisions and deny things; don’t get me wrong. But if you handle it in a professional way, the outcome can be positive or at least well understood by all parties.” That steady approach has worked well for TC Insurance Adjusters, particularly in the early start-up years of the business from 2007-2010. Demand for qualified, skilled independent AB adjusters was at one of its highest peaks. And insurers valued the expertise that Cortese brought to the table. “I can sit in front of a person and get a feel for them within the first 20 minutes,” he says. “There is that element that you will never get away from in handling claims. While you can’ t confirm or deny a claim based on feelings, you can certainly dig deeper and that is something a computer program simply cannot do.” When the Ontario government introduced major changes to the auto insurance system in 2010, things changed. In particular, reforms to the Statutory Accident Benefits Schedule meant lower statutory accident benefits, with the option for consumers to “buy up” to previous levels (few have done so). It also meant a higher portion of claims brought in-house by insurance companies. “This created a massive concern, although I believe it is the right thing that happened for insurers and the industry in that there are fewer frivolous losses and expenses,“ Cortese observes. “When the legislation changed, it affected our business.” In response, Cortese diversified the business. “We can do more than just adjust AB claims; we can do bodily injury claims, which are similar but also have a more detailed investigative side that requires insight into the law and liability of acciwww.claimscanada.ca
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dents,” he notes. “We do slip and fall claims for our clients; we can also work for third party administrators, instead of just insurance companies.” In a major move, TC Insurance Adjusters purchased Grand Bend-based PRM Claims Services in 2013, an adjusting firm headed by Peter Maurer that specializes in agricultural, livestock, property and liability losses. “That has been an important part of our diversification strategy,” Cortese explains. “Before we bought PRM, we did advertise that we did property claims, but we were a bit typecast. Now, we are getting more and more property referrals; we are an all-lines adjuster.” Another key aspect of TC Insurance Adjusters is its work on file reviews and audits for insurance companies. “I find examples where they pay for things that they shouldn’t have,” Cortese says. “So there is value that my clients are wiling to pay for in terms of my AB experience and the experience of all of our adjusters here. We look at what is paid www.claimscanada.ca
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or whether a claim could be settled more quickly. It may result in a closed file for me and less income, but in the bigger picture, we can help our clients with things that are not pure loss adjusting.” This kind of adaptability defines the life of an independent adjuster, according to Cortese. ”When things slow down, you market yourself in other ways,” he says. “So you meet new people, you keep your portfolio of contacts out there, you network. That is how you have to get through the revenue cycles. You can also fill the time by pursuing continuing education.” Another crucial component of life as a smaller independent firm is being part of the local community and giving back. TC Insurance Adjusters participates in a scholarship program with London’s Fanshawe College. Each year, it contributes a portion of proceeds from claims to fund a bursary for the highest graduate in the Insurance Institute program. “We wanted to pay it forward and give back something to the community related to insurance,” Cortese says. “We have done
if for two years now, and we plan to keep on doing it in the future.” As for the future of independent firms like TC Insurance Adjusters, Cortese is optimistic that there will continue to be a demand for the niche, relationship-based business. “Every insurance company has a different policy, different procedures, different protocols,” he says. “Our challenge is to understand our clients’ needs, know what the requirements are and maintain those relationships on an ongoing basis. We keep in touch, we know their priorities and their business strategies.” Cortese says there is no guarantee that those relationships will continue or stay the same. But the proven ability of independent adjusting firms to adapt to new developments is something that will guide the viability of the profession in the years ahead. “Our lines of work may change, we will have to adapt to different types of claims and to technology,” Cortese concludes. “We will have to be flexible and diversified. But, from my perspective, I still see that niche sticking around for a long time.” February/March 2015
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Adapting to Extreme Rainfall
The Institute for Catastrophic Loss Reduction celebrates leadership amongst Canadian cities in its latest publication. BY SOPHIE GUILBAULT
C
limatic extremes, including extreme rainfall events, have become more frequent in the second half of the 20th century, causing major flooding events in several parts of the globe. These events represent a major threat to Canadian municipalities with several reported cases of basement flooding in recent years in cities across the country. Water damage represents the main cause of damage to Canadian homes, costing more than $2 billion annually, much of it being from basement flooding. Considering that this number has been rising for more than 25 years and that severe rainfall events will increase in frequency and severity under our changing climate, there is now an urgent need for Canadians to adapt. Best practices to protect homes from basement flooding have been thoroughly studied by the Institute for Catastrophic Loss Reduction (ICLR), a world-class disaster risk reduction research institute affiliated with Western University. Actions such as the installation of a backwater valve and sump pump system, disconnecting downspouts and ensuring proper lot grading to direct water away from a home’s foundation can all contribute to a reduced risk of basement flooding. Mitigating the impact of severe rainfall events requires a comprehensive plan to rehabilitate and improve municipal infrastructure, as well as actions to involve property owners with waste and stormwater management. In December 2014, ICLR published a book entitled Cities adapt to extreme rainfall: Celebrating local leadership. The publication highlights the efforts of 20 Canadian cities that developed creative
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approaches to reduce the risk of loss from severe rain events. Several case studies presented in the book showcase how municipal governments have been influencing private homeowners’ behaviours. For example, Quebec City utilized persistent communication with homeowners located in a flood vulnerable neighbourhood until all the targeted downspouts were disconnected. Other communities, such as Moncton, Saskatoon and Winnipeg developed an incentive program to encourage property owners to install a backwater valve. London and Victoria focused their efforts on evaluating the potential of specific actions to reduce the risk of basement flooding in order to develop adequate adaptation measures. While most municipalities presented in the book became eager to implement adaptation and mitigation programs following extreme rainfall events, some communities like Collingwood, which mandated the installation of backwater valves in new homes, have been proactive in increasing their urban flooding resiliency before large losses happened. Canadian municipalities have been struggling with aging infrastructure that is often unable to cope with increased stresses and loads. Across the country, several waste and stormwater systems are approaching the end of their service life and the costs associated with their rehabilitation can be extremely high. Considering that Canadian cities are responsible for the construction and maintenance of their stormwater management infrastructure, Kitchener and Waterloo recently established a sustainable stormwater funding system. In order to do so, the
two cities first launched a detailed review of their funding models for stormwater infrastructure, which brought multiple concerns to their attention. Faced with increasing maintenance costs and a growing urbanization happening under climate change, Kitchener and Waterloo started rethinking their approach to stormwater management. Their reflection resulted in the development of a funding mechanism that would provide revenue for infrastructure while giving property owners a more direct awareness of the quality of their infrastructure system and its impact on the environment. More specifically, the cities decided to replace their tax-based funding model with a user pay approach. Through this transition, Kitchener and Waterloo ensured that users would pay for stormwater services in a way that reflected their use of these services. In order to establish the new fees that would be paid by property owners, the cities calculated the area of impervious surfaces around properties. They then established a tiered funding structure in which smaller properties with less impervious areas pay significantly less money than a large non-residential property with significant impervious surfaces. For example, the smaller properties in Kitchener could pay as little as $47 a year for their stormwater fee compared to $23,000 for larger non-residential properties. In order to complement the user-pay approach, both Kitchener and Waterloo implemented a stormwater credit program in which property owners that implement onsite stormwater controls to reduce runoff from impervious areas are rewarded by a lower stormwater fee. The user pay ap-
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APPOINTMENT proach and stormwater credit programs developed by the two cities has proven to be sustainable on multiple levels. While it encourages property owners to adopt sustainable behaviours, it can also fund the rehabilitation and construction of new stormwater infrastructure. Several Canadian municipalities have also been tackling issues related to inflow and infiltration. This phenomenon associated with sewer backup happens when excessive amounts of rainwater inflow and groundwater infiltration enter the sewer system. Excessive inflow can be the result of improper connections between roof drain leaders, foundation drains and drainage catch basins while infiltration is mostly associated with cracks and loose joints in sewer lateral connections. In British Columbia, several municipalities have developed programs to rehabilitate sewer connections affected by this issue. For example, the City of Surrey decided to be proactive and took actions to address long-term problems that could emerge from poor sewer lateral connections. Confronting problems related to private sewer laterals can be challenging for local governments because these connections are located on the private property side. However, ensuring that these connections are well maintained can help avoid damages that could occur elsewhere in the community in the future. In Surrey, the assessment of sewer laterals has been included in the building permit management process. This means that sewer lateral inspections have to be conducted in the event of major renovation work on the property. More precisely, if the sanitary sewer lateral has been in place for more than 30 years, an automatic replacement is required when a property owner submits an application for a building permit with construction value greater than $100,000 or when a parcel of land is being redeveloped. When a sewer lateral is less than 30 years old, a video inspection of the service connection must be completed. The mandatory sewer connection replacement program developed by the City of Surrey provides a simple way to address an issue that could significantly grow in importance over time. The installation of backwater valves and sump pump systems can significantly reduce the risk of basement flooding from
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sewer backup. Over the past years, several Canadian municipalities have implemented by-laws and incentive systems to encourage property owners to install these devices. For example, the City of Ottawa introduced a by-law requiring the installation of a backwater valve on all new sanitary and storm sewer connections for both residential and commercial properties. Moncton created a pilot program to educate homeowners about backwater valves, weeping tiles and sump pumps and provided financial incentives for homeowners to encourage the installation of backwater valves. In addition to the rebates provided for the installation of backwater valves, Moncton City Council launched a program that was directed at homeowners who had been denied sewer backup coverage by their insurance provider. Under this program, homeowners who were ineligible for insurance coverage for sewer backup damage qualified for the installation of a backwater valve at no cost. The different case studies presented in Cities adapt to extreme rainfall: Celebrating local leadership highlight the creativity of local leaders in their efforts to build flood resiliency within their communities. In order to build a successful adaptation strategy, local governments should develop good communication strategies, emphasize the importance of local actions, and promote the involvement of private homeowners in adaptation measures. While damage to homes caused by extreme rainfall events has been increasing over the last decades, it is important to remember that sewer backup and basement flooding is preventable. The 20 cities selected by ICLR are among many other Canadian municipalities that have been proactive in developing adaptive programs to mitigate the impacts of severe rainfall events. The local actions presented in the book all have the potential to be replicated in other municipalities and will hopefully speak to other community leaders in the future. Sophie Guilbault, M.Arch, M.Sc., is research coordinator for the Institute for Catastrophic Loss Reduction. The book Cities adapt to extreme rainfall: Celebrating local leadership can be downloaded on ICLR’s website under the link: http://iclr.org/citiesadaptrain.html
Paula Thomas Claude Blouin and Jamie Dunn, Partners at Blouin, Dunn LLP, are extremely pleased to announce that Paula Thomas has joined the firm as an associate. Paula earned an Honours Bachelor of Arts degree in History, English and Spanish from the University of Toronto in 1991, following which she spent a year teaching in Japan. After working for a number of years in marketing and recruitment, Paula decided to pursue a career in law and earned a certificate in Introductory and Advanced Interpersonal Mediation from St. Stephen’s Community House in 2004. Paula obtained her LL.B in 2006 from Osgoode Hall Law School and was called to the Bar in 2007. Paula articled and served as an associate lawyer at a full services law firm with a focus on charity and not-for-profit law. She then worked for several years at a well-known Toronto insurance defence firm before joining Blouin Dunn in 2015. Paula has extensive litigation experience having appeared at all levels of court in Ontario as well as many successful appearances before the Animal Care Review Board. Her practice primarily focuses on insurance defence litigation, particularly in personal injury claims and occupiers’ liability disputes. Paula’s practice also involves municipal liability, sports, recreation and resort liability, property damage, Charter and other issues related to police liability. Paula is a member in good standing of the Law Society of Upper Canada and a member of the Canadian and Ontario Bar Association and The Advocates’ Society. Paula’s contact information is: pthomas@blouindunn.com (416) 365-7888 ext. 127 Blouin Dunn is one of Ontario’s leading insurance defence firms whose members have been providing quality legal support to the insurance community for over 30 years. We offer services in Ontario to property and casualty insurers throughout North America, at all levels of experience, at appropriate and competitive rates.
www.blouindunn.com February/March 2015
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Insurance Decisions
A review of the ten most important insurance coverage cases of 2014. BY CHRIS DUNN AND JOSIAH MACQUARRIE
Another year, another top ten. We have burned the midnight oil and scoured the various judicial districts of our vast country in order to identify that most elusive of creatures – the insurance coverage case. Things were quiet at the Supreme Court of Canada this year, though the court did release its decision in Sattva Capital Corp. v. Creston Moly Corp., which raised the bar for those seeking appellate review of a judge’s interpretation of a contract. This decision is already having a significant impact on coverage appeals, making it more difficult for both insurers and insureds who lose at first instance to have that decision overturned. Kozel v. The Personal Insurance Company (February 19, 2014, ONCA) Auto insurance/relief from forfeiture
judge held that Ms. Kozel had acted with due diligence in failing to renew her licence. The Personal successfully appealed. While the Court of Appeal disagreed that there had been due diligence, the court found coverage by granting relief from forfeiture. As Mrs. Kozel’s breach occurred prior to the loss, relief from forfeiture under the Insurance Act was unavailable. Instead, the Court looked to the general relief from forfeiture provision in s. 98 of the Courts of Justice Act, holding that this provision could be applied in the insurance context, and that relief could be granted for any pre-loss breach of the insured. The factors to consider when exercising this discretion were 1) the conduct of the insured 2) the gravity of the breach, and 3) the disparity between the value of the property forfeited and the damage caused by the breach. Applying this test to Mrs. Kozel’s case, the court found that 1) her breach was unintentional, 2) the gravity of the breach was minor as it did not impair Mrs. Kozel’s ability to operate a motor vehicle, and 3) there was a significant disparity between the breach and the forfeiture.
Kozel has dramatic implications, as it has greatly expanded a court’s ability to grant relief from forfeiture for an insured’s pre-loss conduct, a remedy previously unavailable based on the Schmitz v. Lombard General Supreme Court of Canada’s decision Insurance Company of Canada (February 4, 2014, ONCA) in Elance Steel. Auto Insurance/Limitation Mrs. Kozel had autoperiod in OPCF 44R mobile coverage with The Personal. She uninSchmitz was involved tentionally failed to rein an auto accident and EXPIRED new her driver’s license sued Lombard for underupon expiry. When she insured coverage. Lombard had an accident four months took the position that the later, her insurer denied coverage. At claim was out of time befirst instance, Mrs. Kozel was suc- cause Schmitz brought it outside the cessful in challenging the denial. The 12 month limitation period set out in 24 Claims Canada
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s. 17 of the OPCF 44R. Schmitz argued the 2 year limitation period set out in s. 4 of the Limitations Act. On a motion to determine the issue, the Court applied its decision in Markel Insurance Co. of Canada v. ING Insurance Co. of Canada, and that decision’s holding that an insured does not suffer a loss until after the insured seeks indemnity for an underinsured claim, and the claim is denied. Accordingly, the limitation period had not expired. The immediate impact of this decision is that there may effectively be no limitation period for underinsured motorist claims in Ontario. Coburn v. Zorkin Insurance Brokers Inc. (February 26, 2014, BCCA) Homeowner’s Policy/vacancy The insurer denied coverage for a property loss as the house had been “vacant” for more than 30 days. The insured argued that he regularly visited the property to perform renovations during those 30 days. The policy defined vacancy as “[t] he occupant(s) has/have moved out with no intent to return or the dwelling does not contain furnishings or household equipment sufficient to make it habitable.” The B.C. Court of Appeal upheld the denial, holding that the insured’s regular attendance was immaterial — the property became vacant once the tenant left. The definition of vacancy was to be read disjunctively, such that if the property was vacant where the occupant had moved out with no intention to return or the dwelling did not contain furnishings or household equipment sufficient to make it habitable, it was “vacant”. www.claimscanada.ca
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Hants Realty Ltd. v. Travelers Guarantee Co. of Canada (June 25, 2014, NSCA) E&O Policy/Definition of “Claim” Hants Realty sold a house, and the purchaser experienced problems getting running water to the property. The purchaser made a complaint to the Nova Scotia Real Estate Commission. Hants did not report the complaint to its errors and omissions carrier. When the realtor was sued several years later, the insurer took the position that the complaint to the commission constituted a “Claim” under the errors and omissions policy that ought to have been reported. “Claim” was defined as a “written demand for damages or non monetary relief… against an Insured for a Wrongful Act committed by the Insured.” The realtor sued and the insurer’s denial position was upheld. The Nova Scotia Court of Appeal held that substance, rather than form, was the determining factor. Though the initial claim was made to a commission which had no jurisdiction to award monetary damages, the insured was aware from the complaint itself that the purchaser would pursue a claim for damages. Precision Plating Ltd. v. Axa Pacific Insurance Company (April 8, 2014, BCSC) CGL Policy/Pollution Exclusion Precision Plating was sued by a third party after a fire at its premises triggered the building’s sprinklers, resulting in an overflow of dangerous chemicals. Precision’s CGL carrier denied coverage, relying on the policy’s pollution exclusion. Precision successfully sued for coverage. The B.C. Supreme Court acknowledged that the definition of pollution in the policy included chemicals, soot and smoke. However, as damage from fire was clearly covered under the policy, and further, as virtually all damage from fire could fall within the definition of pollution, the insurwww.claimscanada.ca
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er’s position ran contrary to the reasonable expectations of the parties.
11 marijuana plants at their home for medicinal use. The pot had a value of $50,000. When the plants were stolen, TD agreed to pay the $1,000 per plant limit for “landscaping”, but denied that the plants qualified for the increased limit available for “personal property” as they were not “usual to the ownership or maintenance of a dwelling.” Both the motions judge and the Ontario Divisional Court sided with TD’s position. While the plants were usual
Stewart v. TD General Insurance Company (March 4, 2014, Ont. Div. Ct) Homeowner’s Policy/Marijuana Plants Is marijuana covered under a homeowner’s insurance policy? According to the Ontario Divisional Court, the answer is no. The insureds legally kept
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to the insured’s dwelling, they were not usual to an average dwelling, as less than one third of one percent of Canadians were authorized to grow medical marijuana. O’Byrne v. Farmers’ Mutual Insurance Co. (July 11, 2014, ONCA) “All-risks” Policy/Pollution Exclusion A residential tenant put a piece of cardboard into his furnace to bypass the thermostat. The furnace failed while the tenant was away, and an oil leak caused damage to commercial tenants on the lower levels. The insurer denied coverage on the basis of the pollution and the mechanical breakdown exclusions in the policy. The court rejected the application of the pollution exclusion, as the plain wording of that exclusion required that another operative exclusion be engaged in order to trigger it. The court also held that the loss was not caused by “mechanical breakdown,” as the loss was not the result of an internal problem or defect in the furnace, which was the intended target of the exclusion, but instead, was caused by human intervention. Acciona Infrastructure Canada Inc. v. Allianz Global Risks US Insurance Company (August 19, 2014, BCSC) Builder’s Risk/Faulty Workmanship Exclusion Acciona represents the first time that a court has interpreted the faulty design/workmanship exclusion in the context of a builder’s risk policy. The project at issue was a large hospital. Problems arose with the project, including widespread cracking once the concrete set. It was determined that, during construction, the formwork and reshoring for the concrete was improperly performed. The insured, Acciona, incurred $14 million in additional repairs, which it submitted to Allianz for coverage under the builder’s risk policy on the basis that the cracking in the concrete qualified 26 Claims Canada
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as “damage” which was not excluded. Allianz denied the claim, taking the position that the loss fell within the exclusion for “faulty workmanship or design.” In considering the exclusion, the court drew a distinction between the faulty workmanship (the improper formwork and reshoring) and the resulting damage (the cracked concrete). While the exclusion applied to the cost of correcting the improper formwork and reshoring, the cost to repair the cracked concrete was resultant damage, which was not excluded. The court also rejected the insurer’s position that the damage had to be “accidental” in order to trigger coverage, rejecting the long understood principle of fortuity which lies at the heart of insurance coverage. Willoughby v. Pilot Insurance Company (January 7, 2014, ONSC) Homeowner’s Policy/Determination of “Replacement Cost” The insureds’ home was destroyed by fire. The homeowner’s coverage with Pilot included a “Guaranteed Replacement Cost” endorsement. While the endorsement made no reference to the replacement occurring at the same location, other provisions of the policy required the house to be rebuilt at the same location in order to be eligible for replacement cost. The insureds elected to purchase a new home in another location rather than rebuild their home. They then sought the Guaranteed Replacement Cost coverage from Pilot. Pilot’s position was that the claim was limited to actual cash value (ACV). Pilot’s position was upheld. In reading the contract as a whole, the clear intention of the policy was to provide coverage for replacement of the home in the same location. While the insured could elect
to relocate, the amount payable in that case would be limited to ACV. The intent of the replacement cost coverage, including the “Guaranteed Replacement Cost” endorsement, was to a make up the shortfall between the basic coverage and actual replacement cost, provided that the home was rebuilt in the same location as the original. Intact Insurance Company v. Virdi (April 14, 2014, ONSC) CGL Policy/Description of insured business limiting coverage Harjit Virdi owned two unrelated companies, Multilamps and American Industrial Machines Inc. (“AIM”). Multilamps was an importer and manufacturer of lampshades, while AIM sold heavy machinery. The two shared some common warehouse space, but only Multilamps had insurance — a CGL policy with Intact. A claim was made by a party that was injured at the warehouse while using a forklift to transport lathes used in AIM’s business. AIM sought coverage under the Multilamps policy. Intact denied coverage to AIM, arguing that the injury arose out of AIM’s business, which it did not insure. Multilamps argued that the incident arose on property of which Multilamps was an occupier, and as such, the Multilamps policy provided liability coverage for “occupiers.” The court upheld the denial. The allegations did not arise out of Multilamps’ business operations, but rather, out of the business operations of an unrelated company. Chris Dunn is a partner and Josiah MacQuarrie is an associate with Dutton Brock LLP. Both specialize in insurance litigation. Dutton Brock LLP is a member of Canadian Defence Lawyers (CDL), the only national organization representing the interests of civil defence lawyers. It offers broad opportunities to unite the defence bar over common issues, as well as providing accredited continuing legal education. www.claimscanada.ca
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Water The Structural Enemy
An exploration of the sources and causes of property damage claims. BY RANDY HENDERSON
Water damage claims related to structures and building contents are not limited to catastrophic weather events, but are an ongoing source of property loss claims. Generally, losses can be divided into external and internal sources.
External Sources This type of damage arises because water has been able to penetrate the building envelope over time or as a result of a shortterm catastrophic event such as a torrential downpour. What is the building envelope? The physical components of the building envelope include the; • Foundation system (below grade); • Exterior wall system (above grade), including doors & windows; • Roof system
Foundation System Breaches Sewer Back-Up The source of water infiltration in this type of claim is usually rather obvious but the cause might not be. A sewer back-up is often triggered by a heavy rain. In cases where a backflow valve has been installed, damage can still occur in the case of failure of the valve due to improper installation or manufacturing defect. For sump pump failures, a cause investigation includes looking at the installation, power source for the pump, and volume specifications.
Foundation Leakage Causes of water infiltration through the foundation are often the result of improperly installed or degraded weeping tile systems and grading or landscaping that channels water toward the perimeter of a house rather than away from it. In 28 Claims Canada
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some cases, intrusions into the foundation structure such as the installation of a deck or the roots from trees that have been planted too close to the home allow moisture penetration. A heavy rain or spring thaw are not the only sources of water in foundation leakage claims. Additional sources can include leaking in-ground pools, above-ground pools that burst and faulty exterior piping. Window wells that have been installed without their own drainage system or where a lack of maintenance has allowed the drainage to become blocked can cause water to leak through the basement windows.
Water Infiltration Through Exterior Walls The exterior cladding system’s purpose is to maintain a dry and stable interior space above grade. Systems are designed so that if moisture gets behind the facing such as the layer of bricks, it can be removed from the system by air circulation and drainage or weeping holes. While penetration from wind-driven rain is the most likely type of breach, a breach can be caused in conjunction with a faulty roof system or through an activity as innocent as watering a lawn or garden where the sprinkler is soaking the external wall as well as the grass. Symptoms of a cladding system failure include; • damage to the floor at the base of a wall such as water stains or cupping of hardwood floors; • damage to interior window framing such as wood rot; • damage to wall or ceiling finish including bubbling paint or stains; • mould. Typical causes of water infiltration include: • cavity wall drainage system blocked or lacking weep holes; • open Joints in wall system; www.claimscanada.ca
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• breached Integrity of air barrier system ; • improperly installed flashing at window and wall terminations; • window caulking – missing or deteriorated.
Roofing Systems
of water in the fixture or the break occurs where water is under pressure. A failure can arise from impact to the fixture such as dropping something heavy into a toilet bowl or sink. It can happen as a result of wear and tear as happens with rubber and plastic washers and bushings or can be the result of incorrect installation of the fixture or product defect.
The purpose of the roofing system is much the same as the exterior wall system; preventing penetration of the building envelope by weather elements. Roofing systems take an incred- Appliances ible beating from a combination of wind, rain, snow, ice and Modern residences contain appliances such as refrigerators, the sun. The materials employed in the system are of prime water coolers, water heaters, boilers, dishwashers and clothes importance but as with all structural systems, the installation washers that can be the source of water damage claims. As with of the materials is equally important and in roofing systems, fixtures, failure of these items can arise from one or a combiventilation is a critical component. Renation of: sudden impact to the appliance, gardless of how well the roofing system incorrect installation including restricting has been installed, over time, weather will proper flow or not securing hoses, incorcause parts of the system to break down. rect use of the appliance, or a manufacturPoor flashing around vents, poor seals ing defect. around skylights, missing shingles or othMechanical (piping & plumbing) er roofing material can all allow water to Systems penetrate the structure. Homes have a remarkably complex Symptoms of a possible roofing system network of pipes and valves to transport failure include: water throughout the structure and ul• staining to ceiling finish (pot lights, ceiltimately to the sewer system. These neting, wall); works can fail as a result of weather con• direct water entry during a rain event; ditions, improper installation, damage • condensation forming in attics causing during renovations or a lack of maintewater damage; nance over time. Winter weather condi• ice damming conditions. tions are a common source of failure. In In Canada, it is common to see ice a quest to save money, homeowners may damming conditions which create a buildlower or turn off heating systems when up of ice and snow at the overhang. This they are on vacation and in unique cases is often caused by a combination of facsuch as the ice storms in southern Ontors such as lack of adequate ventilation tario in December of 2013, power can in the attic including soffit ventilation be interrupted leaving a home without As with fixtures, that is blocked by insulation and heat loss its heating source. If the temperature through inadequate insulation or sealing failure of these items inside the house drops enough, water of access points such as the entry to the in pipes can freeze and burst the pipes. can arise from one or a attic. Melt water enters the attic area and When the home warms up, the ice melts follows the path of least resistance, ultimcombination of: sudden and water leaks through cracks in the ately damaging ceilings, walls and floor pipes causing damage. Wild temperaimpact to the appliance, finishes. ture f luctuations cause stress on joints incorrect installation which can, over time, cause a failure. Internal Sources including restricting As more homeowners finish their baseAs with damage from external sources, ments, the network of pipes becomes damage from internal sources can be sudproper flow or not hidden, thus making discovery and den or occur over time. When water damage securing hoses, incorrect cause analysis more difficult and costoriginates from an internal source, it is usulier than ever. use of the appliance, or a ally a result of damage, improper installation, improper use or lack of maintenance, Summary manufacturing defect. but can also be caused by poor product deStructural water damage can lead to sign. Internal sources can be categorized as large and complex claims. When it does, a follows: proper investigation of how and why the damage was caused can • fixtures (toilets, showers, fountains and taps or faucets); speed resolution of the claim. If the cause of the damage arose • appliances (fridges, dish & clothes washers, water heaters, from renovation or landscaping work performed by a third-party hot tubs and aquariums); or from a manufacturing defect, subrogation may be an option. • mechanical systems (piping & plumbing); • condensation. Randy Henderson, B. Tech, MBA, is responsible for client Fixtures management at Arcon Forensic Engineers and regularly particiFailure of fixtures (faucets, taps, toilets, sinks, showers, pates in fire, structural and mechanical investigations as a keen fountains) can be dramatic where there is a substantial volume observer. www.claimscanada.ca
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EF
• education forum
A SERIES OF ARTICLES PROVIDED BY THE INSURANCE INSTITUTE OF CANADA
Condo
Coverage Assessing the Scene
I
n the last issue of Claims Canada, we looked at the coverage categories in a typical condo owner’s property policy. In this issue, we run through two examples of situations where an owner might end up out-of-pocket because they didn’t understand the nature of their coverage. In the first of our two sample situations, a unit owner’s action causes damage to the owner’s own unit, to an adjoining unit, and to the condo common elements. In the second situation, a condo building suffers major damage that affects multiple unit owners. Although both scenarios have been simplified to focus on selected coverage issues, they illustrate the interrelationship between the unit owner’s insurance coverage and the condo corporation’s coverage. They also reinforce the importance, for adjusters, of carefully reviewing all applicable in-force policies at the time of a claim in order to evaluate coverages and possible liabilities.
Example 1: Unit owner causes damage Mr. A owns a unit in a multi-storey condo building. He has lived there five years and is the second owner of the unit. One morning, just before he leaves for work, he starts the dishwasher. When he comes home that night, he finds large fans outside his unit and notices the carpet in front of his door is soggy. Inside, his hardwood flooring is warped from water and there are puddles in the kitchen near the base of the broken dishwasher. He then sees a note on the counter from 30 Claims Canada
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the property management company saying they had entered the unit and shut the water off, but only after his neighbour downstairs heard dripping. Mr. A contacts his broker to explain what happened and to get help determining whether or not to make a claim against his all-risks policy. Mr. A has a $1,000 deductible. Unusually, he does not have loss assessment coverage. His broker explains that damage to his unit would be covered under his policy, subject to the $1,000 deductible. She also mentions that he would likely be on the hook for any damage to the hallway and the unit below him. He is surprised by this, because he assumed the condo corporation’s policy would cover those areas. Though Mr. A has lived in the building for years, he has never been to an annual general meeting and has never even noticed the certificate of insurance that is included in the AGM package. Mr. A speaks with the property manager, who confirms that the condo corporation will charge him for either the cost of the repairs or the corporation’s deductible, whichever is less. The property manager assures him that the corporation’s deductible is “only $5,000”, so that would be the most he would be expected to pay. The property manager’s action during the leak helped limit the damage. But it costs the corporation $1,600 to rent the dryers, clean the hall carpeting, and repair and repaint the ceiling and wall in the unit below Mr. A. As for the damage to Mr. A’s unit, the total cost for replacing the hardwood in the hall and the base-
board in the hall and kitchen comes to $1,400. When all is said and done, Mr. A has to pay $1,600 to the corporation for the repairs to the other unit and the hallway because he does not have loss assessment coverage. But his insurance does cover $400 of the cost of repairing his unit ($1,400 less the $1,000 deductible). Again, this scenario has been simplified for illustrative purposes. In practice, a typical condo owner’s policy would include some level of loss assessment coverage. However, the policy might include provisions that reduce the limit of this coverage in specific circumstances, such as for water damage claims.
Example 2: Severe damage to building Mr. and Mrs. B own a unit in a loftstyle condo in a converted factory. They have a single-limit all-risks policy with personal property coverage of $75,000, improvements and betterments coverage of up to $75,000, additional living expenses of $30,000, unit additional protection of $180,000, and property loss assessment of $180,000. While Mr. and Mrs. A are away on a three-week vacation, a fire in a nearby vacant warehouse spreads to their building and causes extensive damage to the electrical and mechanical systems. After the fire is put out, the city fire marshal determines that it would be unsafe for residents to return until repairs are made. The city’s emergency assistance team puts the residents up in hotels for the first few nights and advises them to www.claimscanada.ca
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contact their insurers. Two weeks after the fire, the property manager notifies unit owners that it will likely be 10 months before the building will be habitable again. Mr. and Mrs. B learn about all this on their return from vacation. They phone their broker immediately and then start looking for an apartment. They are surprised to discover that there are not many listings for furnished rentals and that they start at $2,400/month plus utilities. Given the severe nature of the damage cause to their unit and the entire building, Mr. & Mrs. B will be making a claim for the replacement cost of their personal property as well as for betterments and additional living expenses. Depending on the condo corporation’s coverage, they might even have to make a claim for unit additional protection. In making their personal property claim, Mr. & Mrs. B will need to meet the usual requirement of demonstrating what they had. If they have up-todate documentation and photos of their contents, and if that information was stored someplace safe from the fire, this step should be fairly straightforward. The condo insurance will cover finishings up to the standard unit, and then
Mr. & Mrs. B’s policy will cover betterments. If they rent an apartment for $2,400 and pay an additional $150/month for utilities, their $30,000 of additional living
Both scenarios reinforce the importance, for adjusters, of carefully reviewing all applicable in-force policies at the time of a claim in order to evaluate coverages and possible liabilities. expenses will cover them for just over 11 months. The property manager estimates it may take 10 months for the work to be done; but if that timetable is optimistic,
Mr. & Mrs. B may run short of coverage for their living expenses. One other issue that they may be concerned about if they read their policy is the possibility that their additional living expenses might be limited in duration – for example, if the insurer considers this to be a situation where a civil authority has prohibited access to the building or the unit. Such a provision is generally meant to apply in mass emergency situations, though, not to cases where a fire marshal considers a building unsafe. Depending on the extent of the damage to the building and the extent of the condo corporation’s insurance, Mr. & Mrs. B should be made aware of these potential concerns and of how their coverage for unit additional protection might apply. This article is based on excerpts from ADVANTAGE Monthly, a series of topical papers on emerging trends and issues provided to members of the Chartered Insurance Professionals’ (CIP) Society. The CIP Society is the professional organization representing more than 15,000 graduates of the Insurance Institute’s Fellow Chartered Insurance Professional (FCIP) and Chartered Insurance Professional (CIP) programs.
SERVING THE INSURANCE INDUSTRY FOR OVER 50 YEARS OUR TEAM PAUL A. MELANÇON LOUIS P. BRIEN RUTH VEILLEUX JULIA DE ROSE MEÏSSA N’GARANE
BERTRAND PAIEMENT HÉLÈNE B. TESSIER ANTOINE MELANÇON SELENA LU
FRANCIS C. MEAGHER FRANÇOIS HACHÉ DANIEL RADULESCU PETER MORAITIS
1250 René-Lévesque Blvd. West, Suite 1400, Montreal, Quebec H3B 5E9 Telephone: 514 925-6300 Facsimile: 514 925-9001 info@lrmm.com www.lrmm.com
www.claimscanada.ca
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• on the scene OTS IN MEMORIAM merous industry organizations including CIAA National It is with heavy hearts, the Canadian Independent President, 1987 – 88. He received the prestigious Adjusters’ Association (CIAA) announces the passing of Honourary Life Member distinction in G. Fred Plant, CLA, FCIAA on December recognition of his tireless efforts in fur23, 2014. A true giant in the P&C industry, thering the objectives of the association Fred began his eminent insurance adjuston behalf of the Independent Adjusting ing career with Underwriters Adjustment fraternity and the industry at large. The Bureau before founding Plant Adjustment Canadian Insurance Claims Managers’ Bureau in Moncton in 1960, becoming the Association New Brunswick Chapter’s largest firm of its kind in the Maritimes. annual “Top Fellow” award was renamed His great leadership and commitment to “The Fred Plant Sr.” award in 2008 in recthe industry served as a shining example ognition of the substantial contributions to all who had the privilege of working with he made to the insurance industry over him. As a professional loss adjuster he was the course of his 45 years as an indepenan inspiration to his peers earning their redent loss adjuster. spect and admiration through his selfless G. Fred Plant Please join us in a moment of reflection willingness to help others and share his to honour the memories and influence of this fine gentleknowledge and expertise. man to our Industry and the many people touched personFred’s passion and dedication to his profession was evident through his active participation with nu- ally and professionally by his wonderful legacy. l
The Canadian Independent Adjusters’ Association and Property Claim Services (PCS), part of Verisk Analytics, have partnered to allow CIAA members access to catastrophe loss information. All CIAA members will have access to PCS Canada’s cat loss information, which is says “will help independent adjusting firms plan for catastrophe events, allocate resources more effectively, and reduce cycle time, ultimately contributing to lower loss adjustment expense.” The two organizations will also partner on conference participation and “thought leadership programs,” according to PCS (see cover article on Catastrophe Management). l
The Brian D. Taylor Professional Award is presented yearly by Plant Hope Adjusters Ltd. to the Top CIP student in New Brunswick. The award is named after the late Brian D. Taylor whose focus on continuing education and professionalism was an inspiration to many during his distinguished career, which was cut far too short by liver disease in 2004. Here, Kimberly Robichaud of Wawanesa Mutual Insurance Company receives the 2014 award from Fred Plant, President of Plant Hope Adjusters Ltd. l In conjunction with its 10th anniversary in Canada, CRDN (Certified Restoration Drycleaning Network) has announced that it has surpassed 18,000 families it has assisted across Canada. “We are very proud and honored to have been trusted to help so many families in their time of need,” said Wayne Wudyka, CRDN’s founder and CEO. “When a disaster strikes a home, whether a fire, flood or other damage, basic needs become a priority—food, shelter and clothing—and that’s where CRDN comes into the story.” l
Representatives from insurers, CIAA, lawyers and brokers attended an informative professional development session – “The ABC”s of Fire” presented by CIAA Nova Scotia with Contrast Engineering on December 11, 2014 in Dartmouth NS. From left are Carol Messervey, Past Pres. CIAA NS, Grant King, Pres. CIAA NS, Wayne Chapdelaine, Contrast Engineering, Grant Rhyno, Contrast Engineering , Ken MacLeod, Director CIAA NS, Mike Connolly, 1st VP, CIAA NS. l 32 Claims Canada
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Arcon Forensic Engineers is celebrating 50 years of service to the insurance, legal and corporate markets. Arcon provides un-biased origin and cause investigations related to property loss and personal injury claims for insurance and legal clients. It covers losses ranging from mechanical failures to collision reconstructions, fire and explosions to structural damage assessments, biomechanical analysis of injuries and malfunctions. l www.claimscanada.ca
15-02-26 11:01 AM
Canadian Independent Adjusters’ Association
Ontario Chapter Presents
MAXIMIZING YOUR SUBROGATION POTENTIAL Priority & Loss Transfer Issues in SABS Presented by Chris Blom, Miller Thomson
Trends in Subrogation Presented by Lee Samis & Neil Colville-Reeves, Samis and Company
Spoliation of Evidence regarding black box data Presented by Sam Kodsi, Kodsi Engineering
Friday, April 24th, 2015 from 9:00 am - 1:00 pm Sheraton Toronto Airport Hotel & Conference Centre 801 Dixon Road, Toronto Ontario Breakfast and Registration open at 8:30AM
This event is proudly sponsored by: H&A Forensic Accounting Inc Intrepid Investigations Makos Health Associates Rapid City Transportation Pre-registration required Space is limited CIAA MEMBERS – NO CHARGE : SEND COMPLETED REGISTRATION FORM VIA EMAIL TO kelly.stevens@crawco.ca OR FAX TO (905) 568-7830 NON-CIAA MEMBERS – $75 FEE: SEND COMPLETED FORM WITH CHEQUE (Payable TO CIAA Ontario Region) TO: Kelly Stevens, Crawford & Company 301-110 Matheson Blvd W, Mississauga ON L5R 4G7
CIAA SEMINAR2015.indd 1
NAME:_____________________________________________________ COMPANY:_________________________________________________ ADDRESS:__________________________________________________ CITY:____________________________ POSTAL CODE:_______________ EMAIL:____________________________________________________ PHONE: (_________)_________________________________________ FAX: (_________)____________________________________________
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• on the scene OTS
Nancy Costa
Spencer Bailey
Kelly Stevens
Michael McLeod
Deborah Mannisto
Pat Van Bakel, president and chief executive officer, Crawford & Company (Canada) Inc., announced in mid-January the appointment of Nancy Costa to the position of national account executive. In other company, news, Crawford & Company (Canada) Inc. also announced the addition and promotion of several key personnel in the Ontario Region: Spencer Bailey, CIP – Property & Casualty Supervisor, Toronto West. Kelly Stevens, Hons BA, CIP, CRM – Branch Manager, Toronto West; Michael McLeod, CIP – Branch Manager, Waterloo and Owen Sound; Deborah Mannisto, CIP – Branch Manager, Thunder Bay. l
CIAA New Members — February 2015 CORPORATE MEMBERSHIP Insurance Consulting and Mediation Services Ltd.
St. John’s, NL
INDIVIDUAL MEMBERSHIP
Bruce Martin
Laurie Walker
John Jones
Cunningham Lindsey recently announced the appointment of three employees to the leadership team: Bruce Martin, Vice President, Account Management; Laurie Walker, Senior Vice President, inTrust TPA. Operations; John Jones, Vice President, Business Development. l WINMAR Franchise Corp recently appointed Sean Hobson to the role of VP National Programs. l Kernaghan Adjusters announced the opening of its newest Branch in St. Catharines, Ontario on February 1, 2015 and the addition of distinguished insurance professional, Marie Gallagher, as new Branch Manager. l
Crawford & Company (Canada) Inc. Phyda Kim, CIP, CRM Marci Abousawan Wanina Adelubi Nick Beaton Farida Bodalbhai Michelle Miller Tyler Murphy Joanne Nathan Richard Barnsdall Blake Knebel Geoffrey Spencer Graham Carstairs Kevin Buchholz Adam Rochon Lovleen Dhingra Domenic Ielasi
St. John’s, NL
Level 3
Insurance Consulting and Mediation Services Ltd.
Marie Gallagher
Gary Baird
Tammie Norn, CEO of ProFormance Group Insurance Solutions Inc. welcomed Graeme Fielding to the ProFormance team in the capacity of Sr. Control Adjuster in its TPA Division. l
S. John’s, NL
Level 3
Kernaghan Adjusters Limited Meghan Berube
Winnipeg, MB
Level 2
SCS Insurance Adjusters Ltd. Diane Savor
Thunder Bay, ON
Level 1
DKI Canada recently announced the addition of Helferty’s Disaster Restoration to the organization. Helferty’s Disaster Restoration has provided property restoration services in the Renfrew County and surrounding areas since 1968. l
Graeme Fielding
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Level 2 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 1 Level 3 Level 1 Level 1 Level 1 Level 1
Cunningham Lindsey Canada Claims Services Ltd. Pansy Pardy
34 Claims Canada
London, ON Mississauga, ON Mississauga, ON Mississauga, ON Mississauga, ON Mississauga, ON Mississauga, ON Mississauga, ON Toronto, ON Waterloo, ON Waterloo, ON Calgary, AB Saskatoon, SK Mississauga, ON Mississauga, ON Waterloo, ON
February/March 2015
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A.R.S. held an Open House reception and 15 Year Anniversary Party at its head office in North York, Ontario on November 20, 2014. Guests joining in the milestone celebration included clients, assessors, staff and friends.l
The Ontario Pond of the Honorable Order of the Blue Goose hosted its annual holiday party, “Eat, Drink and be Merry,” at the Storys Building in the heart of downtown Toronto’s Entertainment District on December 16, 2014. Almost 100 ganders and guests enjoyed an elegant evening in this historic venue. Cocktails and hors d’oeuvres preceded a fabulous dinner and all proceeds were in support of Spinal Cord Ontario. l
www.claimscanada.ca
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• on the scene OTS Puroclean Canada held its 2014 Canadian Conference on December 4-6, 2014 at the Hilton Hotel in Niagara Falls, Ontario. More than 200 attendees gathered for the annual event, including Puroclean’s Canadian network of owners/ operators, suppliers and customers from across the country. l
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APPOINTMENT
The Ontario Chapter of the Risk & Insurance Management Society (ORIMS) held its Christmas Luncheon on December 11, 2014 at the Westin Harbour Castle in Toronto. With more than 700 people in attendance, ORIMS continued with the spirit of giving by raising funds for The Daily Bread Food Bank. In all, $10,000 and more than 200 pounds of food was collected to help the food bank in its fight to eliminate hunger in and around Toronto. l Chris Schmidt DKI Canada Ltd announces a new leadership appointment that will further its development and expansion. Ken Tucker, Chief Executive Officer, DKI Canada Ltd. announces today the appointment of Chris Schmidt to the position of Chief Operating Officer. DKI Canada will continue to utilize his experience and analytical skills to manage development and contribute to a team that will lead the company in its current market growth phase. Schmidt has 13 years of industry experience having previously worked for a large insurer and Canadian IA firm. Schmidt joined DKI Canada in 2012 as the Director of Central Region, overseeing Ontario and Quebec. His strong background and industry knowledge accelerated his growth within DKI Canada Ltd. as he has progressed through various senior level positions, most recently serving as Vice President of DKI Canada Ltd. As COO, Chris will continue to report to CEO, Ken Tucker. Ken Tucker stated, “I am pleased and excited to announce the promotion of Chris Schmidt to the position of COO. Chris has been a driving force in the resurgence of the DKI brand in Canada in his previous position as Vice President of Marketing & Business Development. Chris has worked closely with the management team to accomplish many of the organizations goals and we look forward to continue this process in 2015.�
serving Canada since 1992 www.claimscanada.ca
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• on the scene OTS With more than 250 in attendance, McCague Borlack LLP hosted its 20th Annual “Christmas in January” party at The Design Exchange in Toronto on January 15. McCague Borlack LLP is the Ontario affiliated firm of the Canadian Litigation Counsel (CLC). As such, CLC members and The Harmonie Group, together with clients and guests from all facets of the insurance industry across Canada, embraced the mid-January event to get together, look to the year ahead and discuss the latest industry news and developments l
The Insurance Institute of Ontario held its 116th Annual Convocation & Awards Night on January 22 at the Metro Toronto Convention Centre. Pat Van Bakel, president of the Insurance Institute of Ontario, served as MC. T. Neil Morrison, chair of the Insurance Institute of Canada, addressed the more than 400 Chartered Insurance Professional (CIP) and Fellow Chartered Insurance Professional (FCIP) graduates. The keynote speaker was Drew Dudley, founder and chief catalyst of Nuance Leadership Inc.l
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The Rebuild Specialists
TriMatrix Construction Inc. was established with the goal of providing a superior level of service and customer satisfaction. With over 30 years of experience in the Construction Industry, we are builders who understand every aspect of the construction process, provide full service to all restoration contractors and we continue to set the industry standard by delivering single-source accountability. Inspired by Design. Driven by Quality.
Rebuilding Peace of Mind™ www.trimatrix.ca • 1-888-856-5156 TriMatrix Feb 2015 2.indd 1
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Stay focused on the big picture
While we manage the details
Partner with Crawford and streamline your business with our full suite of services catered to risk managers Crawford Risk Management Services (RMS) offers a range of services that meet the specific needs of the risk management community. Our services include: • Third Party Administration/ Program Management
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Contact us at info@crawco.ca for more information on RMS or any of our services.
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