1. TIPI ACTIVITY SNAPSHOT

2. TIPI SUBMISSION ACTIVITY (JAN 1 – NOV 27, 2017)
BAND ASSET SUBMISSIONS
PREMIUMS QUOTED
Bound 40
$6,339,996
Quoted Not Bound 10
$1,861,934
Total 50
$8,201,930
ATC SUBMISSIONS 16
$681,872 $0

3. PREMIUM ACTIVITY
B&M
Property
Excess Property

4. PREMIUM ACTIVITY COC & Wrap Up under Band Program
COC & Wrap Up – Stand-alone

5. PREMIUM ACTIVTY

6. SUBMISSION COUNT BY GEOGRAPHICAL AREA

7. COMMUNITY PROGRAM STRUCTURES – OUR MARKETS
Lines of Coverage
Limits ($)
Insurer
Primary Property
$20,000,000
Allied World Assurance Company
$5,000,000
Certain underwriters at Lloyds of London
Excess Property
$15,000,000 xs $5,000,000
$30,000,000 xs $20,000,000
Berkshire Hathaway
Boiler and Machinery
$10,000,000
Aviva as represented by Risk Central
Crime
$100,000, $250,000, $500,000
Chubb Insurance
Commercial General Liability
Excess Liability
$5,000,000, $10,000,000
Environmental Impairment Liability
$2,000,000
Automobile
Umbrella Liability
$5,000,000; $10,000,000; $15,000,000
Directors and Officers
$5,000,000 (max limit)
Trinity Underwriting
Accidental Death and Dismemberment
$200,000
Chubb Life Insurance

8. HOW INSURANCE PREMIUMS ARE CALCULATED

9. No one likes paying insurance premiums, but insurance is a necessity.

10. UNDERWRITING CRITERIA
Insurance companies, like any other business, need to make a profit to stay in business. They use historical data to determine the chance of losses and charge premiums to cover them, factoring in a profit for the company. They use a set list of underwriting criteria including, evaluating the type of construction materials or building practices used, community safety and security, fire protection, condition of property, and whether any risks or hazards are present, to determine whether they’re prepared to insure a given community.

11. PROPERTY EXPOSURE THE FUS
Most licensed insurance companies in Canada require insurable property to be located in an area with a Fire Underwriters Survey (FUS) rating. FUS is the main premium rating used by insurance companies to determine premiums and/or if a property is insurable. Homes without access to adequate Fire Department protection (“Unprotected”) will always sustain more damage than those with access to quality fire response (“Protected”).

12. PROPERTY EXPOSURES – THE FUS
The FUS sets a fire grade to help insurers provide a rate on a particular property or geographical area.
Commercial fire grades are determined on a scale of 1–3:
FUS Category 1: Protected – the best grade, resulting in the lowest insurance premium
FUS Category 2: Semi-protected – mid-range, resulting in an average insurance premium
FUS Category 3: Unprotected – highest range, resulting in the highest insurance premium

13. UNDERWRITER’S PERSPECTIVE – PROPERTY
Geographic Location
Fire Protection
Located in a flood or earthquake zone?
Prone to tornados or large wind storms?
History of forest fires in area?
Is there a fire station in the community?
Reliable source of water for firefighting?
Operational fire truck?
Minimum of 1 full time firefighter on duty back by a minimum of 15 firefighters?
Do they have a reciprocal agreement with a municipality or city within 10 km?
Vacant Buildings
Photos of the community, especially if this is a new submission, helps the underwriter get a good look at what they are being asked to insure.

14. UNDERWRITER’S PERSPECTIVE - CRIME
Incoming cheques stamped “deposit only”?
Counter signature required?
Does the person who reconciles the bank accounts also sign cheques?
Does the person who reconciles the bank accounts also handle deposits?
Are there large quantities of money and security on the premises at any one time?
Is there a safe/vault?

15. UNDERWRITER’S PERSPECTIVE - LIABILITY
All legal entities should be noted on the application and advised if your are requesting to be included under the CGL or excluded (insured elsewhere).
Revenues need to be noted for the operations and brief description of operations for each entity that is requested to include.
Joint ventures are excluded unless the insured has controlling interest and is responsible for the operations subject to underwriter approval.
Certain operations are excluded such as commercial logging, commercial fishing, mining, oil & gas, commercial manufacturing, airports.
Are sub-contractors required to carry general liability insurance and does the insured request evidence of insurance?
Are written protocols in place for hiring practices, whether or not criminal record checks, child welfare checks are done on employees, and abuse protocols?

16. LIABILITY Sports and recreational facilities
Citizen and leisure service centres
Life safety and protection
Public works
Emergency medical services
Community development corporation
Housing corporation
Leased/owned commercial buildings
Water treatment and distribution
Wastewater treatment
Solid waste disposal
Volunteers, board, chief and council
Food banks
Long-term care facilities
Public housing
Building plan examination/inspection

17. TYPES OF COUNCIL-OWNED BUSINESSES
Forestry, Mining, Aquaculture, Farming, Gaming, Real Estate, Oil and Gas, Construction, Aviation, Marine, Fleet Automobile

18. UNDERWRITER’S PERSPECTIVE ON LOSSES
Are there frequency issues?
What is the cause of loss?
What measures has the insured put into place to prevent further losses?
Is arson an issue?
Have there been any flood, wind and/or hail losses, crime, break and enter, wrongful dismissal losses?

19. Underwriters use a simple loss ratio (losses divided by premiums) to gauge suitability for coverage. A high loss ratio (the amount of loss meets or exceeds the premium) is considered bad and a risk.

20. LOSS RATIO
Few underwriters will accept risk without requiring a very large deductible or self-insured retention. Unless remedial action is taken, the loss frequency will eventually spawn one or more severe claims. Insurers have acceptable loss ratios; loss that’s just short of producing an unprofitable account. Large losses can be avoided if a pattern of small, frequent losses is noticed and the underlying causes are addressed. A combination of financial incentives (or disincentives) and an investigation into the cause of the loss activity, could save the day.

21. LOSS RATIO
Loss history should be divided into ranges showing the total value of losses between $5,000 and $10,000, $10,000 and $20,000, and so on…
This reveals acceptable points between the deductible and the insurance.
For example, if the loss ratio drops to 70% when the deductible is significantly increased, and drops another 10% when the premium is moderately increased, the underwriter may have found a workable compromise.
A limited dividend or return-of-premium plan to reward the client for hitting the formula-driven 60% loss ratio goal may be added.

22. UNDERWRITER’S PERSPECTIVE – RISK MANAGEMENT
What improvements or steps do they take to prevent losses from occurring?
Do they notify the fire department when anyone is doing a controlled burn?
Are firebreaks created in areas close to forest?
Do they have a certified person inspect the wood stoves?
Do they ensure all commercial and residential buildings have smoke detectors and do they check them periodically to make sure they work?
Do they have security in place in areas that handle large amounts of money?
What is the attitude of community leaders towards risk management?

23. CRIME EXPOSURES – CONTROLLING FIDELITY LOSS
Fidelity losses result from:
Employee dishonesty
Robbery and burglary on insured premises
Mysterious disappearance or destruction of money and securities
Off-premises hold-up and robbery
Acceptance of counterfeit money and money orders
Cheque fraud
Physical controls include:
Alarms
Security patrols
Cameras
Fences
Safes or vaults

24. CRIME EXPOSURES – CONTROLLING FIDELITY LOSS
Procedures can be implemented to help reduce crime and improve community liability.
Define how to perform particular tasks, to make it difficult for persons to commit crimes or to make it easier to detect crime
Implement hiring and training practices that emphasize intolerance and prosecution of dishonesty and crimes
Encourage employees to report criminal activities or make suggestions for deterring crime
Employee participation in risk management of crime losses is integral.

25. HIRING PRACTICES
Develop concise, written policies on employment matters
Conduct training on sexual harassment
Follow a carefully documented procedure and exercise special care when handling terminations
Carefully document all employment- related actions
Conduct thorough, candid annual performance reviews
Promptly investigate all allegations of harassment or discrimination
Seek the advice of counsel before taking action
Screen and do background checks on all paid and volunteer staff with:
Position descriptions
Written applications
Interviews
Reference checks
Record checks

26. POTENTIAL DISCOUNTS Exceptional discount Credit Amount
Classified protection
10% - 20% on property
Housing maintenance program
Up to 25% on housing
Use of fire alarm monitoring
15% - 30% on property
Use of safes and deposit procedures
Up to 10% on crime
Use of employment manuals
Up to 20% on liability
Fleet management protocols
Up to 25% on fleet automobiles
Deductibles increased to $25,000+
15% on all property
No claims discount
10% overall

27. SUBMISSION INFORMATION REQUIRED FOR QUOTING
Prior to visiting the community for the submission information, it is good practice to:
Conduct a review of the community on the internet for any concerning news that may create a red flag
Review the insureds website if they have one
Review the financial statements found on the AANDC website
Complete the Band Asset Application
Complete all sections. If a section is not required note it as Not Applicable (N/A).
Signatures are not required for quoting, however a signed application is required within 15 days of binding

28. SUBMISSION INFORMATION REQUIRED FOR QUOTING
Loss information for the past 5 years
Make sure the loss information is up to date.
If a claim is past the 2-year limitation it is typically closed and there should be no amounts under reserves.
If they had losses, include a brief description of the loss and any work the insured has done to prevent further losses. Example: Residential Fire Loss. What was the cause of the fire? Was it arson? If so was the person(s) caught and charged?
Completed Property Statement of Values (SOV)
If there are vacant buildings, complete the vacancy questionnaire with an updated photo

29. SUBMISSION INFORMATION REQUIRED FOR QUOTING
Completed Auto Application and Auto Statement of Values including list of current drivers
HR Manual
Current Financial Statements
Photos (not required to quote but is required within 90 days of binding)

30. REVIEW OF THE FOLLOWING DOCUMENTS:
Band Asset Application
Property SOV
Vacancy Questionnaire
Auto & Driver SOV

31. QUOTING PROCESS AND TIMELINES
Initial process time:
Review the submission information within 24 hours of receipt
Prepare rating sheets
Review financials and web.
If no questions: it goes into markets for quoting.
Review of submission questions:
Review, send to markets or contact broker if needing further clarification. 
Note: Quoting time average is 1 week with the markets. If there are questions, the broker takes an average 2-5 days to reply back with the answers.

32. QUOTING PROCESS AND TIMELINES
Quotes:
Process quotes in Fusion and to broker
Binding Instructions:
Broker to advise what lines are to be bound and what have been declined.
Binding s to the markets, prepare policies, invoice. Policies sent to broker within 14 days.
Policies from markets:
Lloyds, Chubb Life and Trinity issue their own polices. Lloyds issues within 30 days, Chubb Life and Trinity within 20 days.

33. WHAT AIS DOES DIFFERENTLY

34. THE CHEAPEST OPTION ISN’T THE BEST OPTION
AIS’s comprehensive approach considers a full scope of assets and liabilities with a focus on risk management. We help clients understand the cost and type of coverage they will receive, so there won’t be any surprises later on.

35. LONG-TERM GROWTH
AIS is committed to developing and sustaining strong partnerships with our markets, brokers and communities. We are not looking to simply collect insurance premiums. We strive to ensure we are all working together for the betterment of each other – markets, brokers and insureds.
By helping our communities understand their risks and working together to find solutions to these risks is what makes us different from our competitors.
For these reasons, we have created:
Litigation Risk Management Services
Aboriginal Housing Protective Association
Aboriginal Emergency Response Services