Print Page   |   Contact Us   |   Sign In   |   Sign Up
Young's Stuff
Blog Home All Blogs

Fort McMurray: How Can We Help?

Posted By Thom Young, May 10, 2016

Fort McMurray: How Can We Help?

Despite a host of issues to discuss, my focus in this column is on the Fort McMurray catastrophe. The scale of the tragedy and scope of the disruption is just becoming known. As I write, the current estimates are that over 1600 “structures” have been lost to date and several hundred more are in imminent risk saved only by the whim of the winds and the valiant efforts of the fire fighters and volunteers doing all they can. By the time you read this column, our industry response to this historical disruption to the people that we serve will be well underway. The media has conveyed the confusion and the concern in this mass scramble to evacuate a community of more than 80,000 people and the reality of people navigating their vehicles with their families and whatever possessions they could grab through the conflagration of a forest engulfed in flames. One client of ours reported that the windows of his car were, at one point in his journey to escape, too hot to touch on the inside. Another told the story of his family seeing the flames lapping at the back of their home as they were going out the front door. By some form of providence, no lives were lost directly from the fire, the sad tragedy of a traffic accident taking two young lives notwithstanding. I cannot recall such a successful movement of that many people in so short a period of time and over geographical distances of such proportions. Floods cause evacuations with a much lesser sense of urgency than feeling the heat of a fire on your back while running away. This truly amazing story has only just begun.

Our insurers have sent many notices about the systems in place to deal with the clients who are out of their homes with little or no documentation and very confused about what to do now. While they can find help in many places, getting the information out to these people is the problem. The magazine Canadian Insurance Broker has put out a guide for brokers that is very comprehensive and is being updated regularly.

If people don’t know who they are insured with, they can be referred to the Insurance Bureau of Canada, whose coordinated name and address searches with their members can identify claimants’ policy information to get the claimants in touch with their company’s claims centres. The process is tedious though and the frustration level high, so be patient with these people if you are trying to help them.

I had an interesting discussion with a broker the other day who was of the opinion that assisting an insured who is not a client with the claims process on behalf of the insurer is somehow an infraction under the Insurance Act. Nothing could be further from the truth, and you’re adding to the frustration these people are experiencing if you tell them that you can’t help them. Pushing them back on their broker is futile as well. I know of one brokerage firm an office of three agents that has 3500 clients in Fort McMurray. The office has been evacuated, and no one can get in to restore operations until the evacuation orders are lifted. The three brokers working there have all lost their homes and will be dealing with their personal priorities for a while. If you get a call from people looking for help with their claim, please provide them with information and advice.

  • Get them in front of the right people to initiate their claim.
  • Tell them to keep good records of their expenses.
  • Advise them as you would your own clients on beginning to prepare the lists of belongings lost.
  • Advise them on the time they have to get their claim started.
  • Most importantly, comfort them with assurances that you would give your own clients.

Of course, you will need to qualify the advice because you haven’t seen their policy, but you can provide general advise. You know what’s covered under a homeowners policy, and the statutes are absolute no matter who the insurer is. These people are desperate for words of comfort, and we can give it to them without creating an estoppel. Do what you can to help!

Replacing Alberta Official Documents

People who have been evacuated from Ft. McMurray and are in need of replacement documents—from auto registrations to driver’s licenses and birth certificates—can obtain these at most registry agents offices free of charge. The government has waived the fees for these people and most registry offices have waived them as well. People who are starting to rebuild their lives can be directed to a registry office to get this task underway.

In Closing

I am busy with a number of things focusing on the Ft. McMurray event and am cutting my essay short for this issue. Much more is to come on this story. After the tragedy of Slave Lake, much dialogue surrounded what could and should have been done to prevent what occurred there from happening again. All of our communities situated in the boreal forests of Canada must take note and begin to implement mitigation and suppression efforts to protect against wildfires. That discussion is for another day. Today, we focus on helping our fellow Albertans get through this.

The opinions expressed in this blog are not necessarily those of IBAA.
Comment on this post below or email Thom Young privately. Thom also encourages suggestions for topics.

 

Tags:  catastrophic risk  customer service  evacuation  Fort McMurray  IBC  Insurance Bureau of Canada  mitigation  wildfire 

Share |
PermalinkComments (0)
 

IBAA Convention, RIP David Bowie, Uber Regulation and Coverage, IBC’s 2016 Top-Ten Consumer Tips, Financial Scams, Blog Notices

Posted By Thom Young, January 19, 2016
I can’t believe we’re on the second issue of the new year already. I’d be reminding people to write 2016 on their cheques a few years ago, but I don’t know many people who use cheques anymore. I think I’ve written two in the past year, and remembering what date to put on them doesn’t seem to be much of an issue anymore. The times do continue to change, don’t they?

I received a notice the other day for the IBAA 2016 convention on May 15–18 at the Fairmont Banff Springs. This will be a fabulous opportunity for you and your key people to network with insurance brokers, insurance industry partners, and regulators—and even to meet me in person! Outside of all the partying, you can attend insurance education sessions, welcome IBAA's incoming president Julia Marshall, get involved at IBAA's Annual General Meeting, and connect with the Insurance Brokers Association of Canada and IBAA board members and staff. Where else do you get the chance to meet with some of the best minds (did I mention that I’d be there) in the industry? I’m sure someone has a record somewhere of how many of these I’ve attended, and I know others who’ve attended nearly twice as many as I have.

The price of attending this annual event is a bargain from my perspective, especially if you get your application is in before the end of this month so you’re eligible for the “early bird” discount of $100 on the whole convention package. The early bird savings ends at the end of this month, so get your registration in now! You can do it online by clicking here.

An Ode to Excellence—the Passing of a Musical Legend or the Making of One?

The past week recorded a sad note with the news of the death of David Bowie at the rather young age of 69. Cancer took this very talented fellow from us too early in my view. Although a number of people I know have no idea who he was, his influence on the world we live in was extraordinary. I think the first time I heard the word androgynous it was in the context of Bowie’s rather outlandish stage presence in wildly coloured outfits, crazy makeup, and even crazier hairdos that left many wondering about his gender. All this was at a time when the pluralistic perspective that many of us share today was just in its infancy. Still, the music he produced transcended the outlandish projections he used to sell it. He was one of the pioneers of music videos at a time when technology didn’t lend itself to easy sharing, and his absolute excellence as a musician and performing artist identified him as leader in his field. He did very well as an actor as well.

Artistic talent doesn’t always translate to genius, but most artists have exceptional abilities beyond those we see in their art. Bowie was one of those people. In the latter half of the 1990s when the music industry was suffering the effects of advances in technology that brought about devaluation of musical works, Bowie bundled his work into a bond asset (Bowie bonds) that allowed him to value his work for a period of time and to raise the money in the bond market for an effective return. Subscriptions to Bowie bonds were taken up mostly by the insurance business. The rate of return was very good and, unlike the majority of derivatives put together at that time with mortgages and leases, proved to hold its value to redemption. Bowie proved to be an astute financial manager as well as a talented performer.

I recall a very warm evening in September 1983 when I attended a Bowie concert at Winnipeg Stadium. Part of the Serious Moonlight tour, the concert was the largest ever held in Winnipeg with over 40,000 people in attendance. I can’t say that at the time I was a huge fan, but I had an appreciation for a number of his tunes. The promoter of the venue in Winnipeg was a client of ours at the bank I worked at, and the future mayor of Winnipeg offered front-row tickets that were gratefully accepted by several serious looking bankers. I thought I looked a little out of place and actually felt a little old, but the show remains one of the very best I’ve ever attended. The music was perfect and the stage antics outstanding! RIP Ziggy!

More about Uber

It seems you can’t go a week or more without hearing something about Uber in the mail and in the industry press. The files I keep with ideas for these blog articles have so much discussion about ride sharing that I’m having trouble keeping the notes in one place. The first item of interest is the effect of “surge” pricing in the Uber application that made headlines in Edmonton and elsewhere. The price you pay for a ride with Uber seems to operate on a kind of sliding scale. The more the demand, the higher the price. This pricing is fair according to Uber because it encourages a competitive response from participating drivers (they can make more money) and the increased pricing is very well disclosed to customers with text alerts and notices as the increases are determined. Great for Uber and their drivers, but no so much for the consumer.

Responsibly arranging for transportation after celebrating on New Year’s eve saw one fellow watch his $150 car ride turn into a nearly $1200 charge to his credit card. While Uber is standing by its story that the price is fair, that view is not likely shared by the fellow caught in this bind or by the regulator or members of the public who demand protection from these kinds of scams. As I’ve written before, the reason the livery business is so highly regulated is the graft and abuse it attracts. Even with modern technology notices in place, this business seems to need a high degree of regulation to ensure that the public isn’t getting screwed. I’m sure Uber would disagree.

Reasons for regulation to ensure fair play in a marketplace abound, and Uber or any other kind of public service is not exempt from them. An interesting article in the Globe and Mail makes a good case for regulation, focusing particularly on the exploitation of the drivers.

On the other hand, the old rule of supply and demand has brought about a responsible reaction to this new exposure that our customers participating in a ride-sharing program have presented to our industry. Aviva has taken the initiative to introduce an endorsement providing a reasonably priced endorsement to an automobile policy to allow for the occasional use of an insured vehicle for these purposes. I expect soon that competitive pressure will bring other companies to the marketplace, and the matter of uninsured drivers will, for the most part, be removed from this discussion. I note as well that a number of companies are verifying their underwriting confirmations with their clients during renewal and putting them on formal notice that they are not covered when using their vehicles in ride-sharing programs. These efforts should go a long way to deflate the “No one told me” defence that we’ve seen when insurers decline to participate in any losses involving a ride-sharing scheme.

Doubtless, I’ll be visiting this topic once again in the coming weeks.

Insurance Bureau of Canada Top-10 Consumer Tips for 2016

Pass these tips on to your clients. They’re definitely good talking points to initiate a review of coverage with your clients. While they may seem like just common sense, any adjuster will tell you that common sense isn’t very common!

IBC's Top-10 Tips for a Safe New Year
  1. Review your insurance policy to ensure that you have adequate coverage.
  2. Shop around to find the right policy for your own unique situation.
  3. To prevent possible slips and falls, keep your walkways and front stairs clear of snow and ice.
  4. Create or review your family emergency plan.
  5. Update your home inventory list by adding new items, including gifts received over the holidays. Note the approximate value of the items, including makes, models, serial numbers, and any other identifying marks.
  6. If necessary, hire an appraiser to determine the value of works of art or jewelry to avoid a possible claims misunderstanding.
  7. Take photos or a video of your home's contents.
  8. Keep your home inventory list, and photos or video of your home's contents, in a safety deposit box, a fireproof safe, or in another secure location away from your home.
  9. If you are renting, ensure you have tenant's insurance. A landlord's policy will not typically cover your personal belongings or liability.
  10. If you have questions, speak to your insurance representative.
For further information, contact IBC's Consumer Information Centre at 1-844-2ASK-IBC.

I used to offer to keep my clients photos and inventory lists in their files. Now a days it’s even simpler to add this stuff digitally to the client records so that their own records are backed up with yours—just another simple thing to help your clients.

Be Careful Out There, People

While we often take for granted our own security in today’s interconnected world, scams continue to circulate because they work. Every day someone is caught up in one of them. I receive between 40 and 60 email messages daily, and just about every day I get a notice that my personal information has expired at one bank or another or that my PayPal account is in need of an update. I bank online and know that my bank will never email me to ask for an update. All real bank communications are done on a secure link when I sign in. Even with those, I may call the source directly to confirm the process. I’m cautious because I follow a discipline learned from experience that not all things are as they seem to appear, particularly when communicating with people you can’t confirm by remembrance. Ensure you talk with your clients and staff about these scams so that people are wary and aware. I had a message the other day that Revenue Canada had issued an arrest warrant for me and I’d better call the given number right away or there’d be big trouble. Sometimes these things are amusing. Still, it’s annoying to know that people get caught up in them.

If it looks too good to be true, it probably is. The advance-fee scam is a version of “I’ll send you a cheque, you deposit it, and then send me a small fee to cover my costs of doing you this favour.” Sometimes they mail you a cheque that looks real enough but, if you deposit it, the cheque will be returned as phony. Of course, the fee you sent will be long gone by the time you find out. Currently, FSCO has sent a warning that “Allstate winners” in Ontario are being sent phony cheques from “Allstate.” No doubt, this scam will make its way here. Catching the perpetrators is difficult, and the scammers multiply like flies. Take one down and two more pop up. Be careful, and let your clients know that their insurance companies will not likely ask for a fee if they send them a cheque.

In Closing

I’m wondering how many are enjoying this new hyperlink delivery system for this column. I don’t seem to be getting the feedback on controversial subjects that I did before. Am I boring you, or has everyone had too much to do over the holidays? I suspect the more likely case is that people don’t know that they need to subscribe to receive notices that a new blog was posted. Please go to the Your Network page on www.ibaa.ca. Follow the links through to the Young’s Stuff blog. Make sure you've logged into the IBAA website so the system knows who is subscribing. At the top left of the page, click “Manage Subscriptions.”

Young's Stuff subscription

If you have some ideas or thoughts on topics you’d like to see covered here just comment on the blog or drop me an email anytime.

The opinions expressed in this blog are not necessarily those of IBAA.
Comment on this post below or email Thom Young privately. Thom also encourages suggestions for topics.

 

Tags:  bonds  David Bowie  finance  financial scams  fraud  IBAA convention  IBC  Insurance Bureau of Canada  IT  livery business  regulation risk management  ride sharing  safety tips  taxi regulations  Uber  Young's Stuff subscription 

Share |
PermalinkComments (1)
 
more IBAA Courses and Events

2017-09-27
Diversity & Culture in the Workplace

2017-10-02 » 2017-10-06
Licensing Level 1 Immersion - Edmonton

Featured Members

Membership Software Powered by YourMembership  ::  Legal