Human Capital Balancing Indigenous Culture And Creativity With Modern Workplaces

Transcription

1 19 th Annual AFOA National Conference Human Capital Balancing Indigenous Culture And Creativity With Modern Workplaces

2 Protecting Your Most Valuable Assets A risk management approach

3 Presentation Overview A. Introduction to Risk B. Risk Management Basics C. Group Insurance and Pension D. Property & Casualty Insurance as Risk Treatment

4 Presentation Overview E. Property & Casualty Insurance Coverage F. TIPI and G. Questions & Discussion

5 Objective Current state Increased knowledge Empowering engagement More confidence Practical understanding and application day to day

6 risk - the possibility of loss or injury: peril Merriam-Webster Dictionary

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8 risk risk People

9 Risk Management Process of minimizing or mitigating risk the identification, analysis, assessment, control and avoidance, minimization, or elimination of unacceptable risks Business Dictionary

10 Risk Management (RM) What are some of the new risks we need to be concerned about? What does RM look like in our communities and organizations? What are some the things we can do to address risk? Who is responsible for risk management?

11 The RM Process Identify risks Measure, control & monitor risks Assess & Analyze risks Treat risks

12 Risk Management (RM) Process Identify risks Hazard risk Operational risk Strategic risk Financial risk

13 Risk Management (RM) Process Assess & Analyze risks Source of risk Cause of risk Likelihood of risk Potential consequence

14 Risk Management (RM) Process Treat risks Avoid risk Modify likelihood and/or impact Transfer risk Retain the risk Exploit the risk

15 Risk Management (RM) Process Measure, control & monitor risks Ongoing process What has worked? What hasn t worked? What have we learned? What can we do differently?

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17 Quick Review Risk Avoidance No not the sticking your head in the sand and hope it goes away trick; simply deciding not expose oneself to the risk in the first place. (Walking not driving) Risk Reduction Take action to reduce the probability or severity of the risk. (Healthy lifestyle or no hazard activities)

18 Quick Review Risk Retention Risk is accepted and accept consequences if risk is realized. (Warranty) Risk Transfer Finding someone else to deal with consequences if something happens. (Insurance)

19 Quick Review People are at the core of risk management We can create bridges between culture and formal, technical tools to manage risk Customized approaches to manage risk effectively is key to success Policies and processes play an integral role in managing risk We manage risk everyday

20 Financial Protection through Group Insurance and Group Pension

21 Group Insurance and Pension Build wealth and economic self-sufficiency in our communities Meet the retirement income needs of community members in the most efficient manner possible Be assured Indigenous People participate in the very best pension & benefit plans available Working together, to obtain benefits through economies of scale for our client groups

22 Elements of Group Insurance Employee Life Insurance Dependent Life Insurance Accidental Death & Dismemberment (AD&D) Short-Term Disability Long-Term Disability Health Care including Vision Care & Prescription Drugs Dental Care

23 Eligibility Based on determination of # of months of continuous employment Coverage for employee + dependents

24 Dependents Your spouse, legal or common-law Your unmarried children or spouse s children under age 21* Cover for dependents 21 or over up to age 25 attending university or similar institution full-time

25 Elements of Group Insurance Employee Life Insurance Dependent Life Insurance Accidental Death & Dismemberment (AD&D) Short-Term Disability Long-Term Disability Health Care including Vision Care & Prescription Drugs Dental Care

26 Other items to consider: Employee Family Assistance Plan Best Doctors Support for Administrators TIPI Client Service Centre

27 Group Pension Employee is eligible to join after meeting eligibility requirement Employee & Employer equally contribute Funds are invested in a Registered Pension Plan After 2 years employment 100% is locked-in and vested At age 65 employee can continue to contribute BUT employer is not required to match. Contributions end at age 71.

28 Group Pension Contribution calculation: Salary x Contribution Rate = Employee Contribution Employer matches employee contribution dollar for dollar

29 TIPI Pension Plan We ve created a single, Institutional-type pension plan intended for every Indigenous organization in Canada. How have we done that? We ve used the same low-cost, Institutional-type pension models that millions of other Canadians have been enjoying for over 100 years.

30 Client Support Managing plan enrollment and plan termination Understanding unlocking Considerations for merging plans Considerations for transitioning corporate pension plans Tax-free income considerations related to retirement Early retirement considerations What is an IMF?

31 Other Institutional Plans

32 Investment Management Fee (IMF) IMF is the cost of running a pension plan. There are three parts; Investment Management, Custody, and Recordkeeping. Let s look at the difference between retail and wholesale IMFs and the impact on just one pension plan member

33 What are the effects of fees on a plan?

34 Allow Us To Introduce Our Friend Roberta Awina 35 years old $37,000 pension account balance Annual earnings $36,000 5% contribution; matched by employer

35 Quick Case Study Roberta works for an Indigenous organization. She s a member of the organization s pension plan. The retail price IMF in that plan is 1.92% The institutional-type priced IMF is 1.25%

36 Quick Case Study - Retail IMF Roberta s annual statement shows she earned a return of 6.08% on her individual plan. She really had a return of 8% because her IMF is 1.92%. After the 1.92% fee is taken out, her statement reads 6.08%. That s what she sees. (8% % = 6.08%)

37 Quick Case Study - Institutional IMF Roberta s annual statement shows she earned a return of 8% on her individual plan. It shows her IMF is 1.25% These are shown clearly for her to understand.

38 What does this all mean? Higher fees mean less of a retirement income. The lower the fee the more of a retirement income. Let s break it down

39 Results after 27 years $414,298 Retail $473,631 TIPI 35 years old with $37,000 pension account balance; making 5% contribution matched by employer. $36,000 annual earnings. +$59,333 Gain! 6.08% Rate of Return 6.75% Rate of Return 14.32% increase

40 What else can we see? $59,333 more for Roberta, but she s not alone $59,333 x 150 people = +$8,899,950 $59,333 x 2,500 people = +$148,332,500 $59,333 x 25,000 people = +$1,483,325,000 The TIPI Pension Plan can have significant positive financial impact for Indigenous people and organizations in Canada.

41 Other Retirement Pension Income Old Age Security (OAS) Guaranteed Income Supplement (GIS) Canada Pension Plan (CPP)

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43 Insurance as Risk Treatment Risk transfer Insurance transfers the potential financial consequences of certain specified events from the insured to the insurer Not all risk is insurable

44 Who does what? Broker Insurer Underwriter Adjuster Insured

45 Insurance Basics The insurance contract between Insured and Insurer 15 Statutory Conditions (Legislated) 1. Misrepresentation 2. Property of Others 3. Change of Interest 4. Material Change 5. Termination 6. Requirements after loss 7. Fraud 8. Who May Give Notice & Proof 9. Salvage 10. Entry, Control & Abandonment 11. Appraisal 12. When Loss Payable for 13. Replacement 14. Action 15. Notice

46 The Process Complete application Underwriter reviews risk Underwriter determines interest in risk or provides declination to quote Underwriter may return with questions to confirm details of the risk Quote for coverage

47 The Process (cont d) Broker presents quote Acceptance or decline quote Coverage bound Declaration page Policy documents

48 Things to note: Not all insurance contracts are created equal Insurance contract sets out responsibilities and requirements of all parties The information provided in the application is the foundation of the insurance contract Signed application indicates confirmation that information provided in the application is true Underwriting information forms part of the application for cover Ie, housing list, values, employee data, etc.

49 Property & Casualty Insurance Community Asset Program Property Residential & Commercial (Non-residential) Liability Nation Administration & Operations Commercial General Liability Employee Practices Liability Environmental Impairment Liability Management Liability Legal Expense

50 Property & Casualty Insurance Economic Development Property coverage available for various sectors of business Liability coverage available for various sectors of business Construction Cannabis Energy Hospitality

51 Property & Casualty Insurance Beyond issuance of stand-alone Insurance policies we work with our clients to build Risk Management (RM) capacity within their organizations: Access to added-value capacity building and risk assessment tools Client education & support To assist clients manage data and processes as a RM foundation To provide access to resources, tools & information to develop tools to manage risk Understanding principles of insurances, key areas of coverage, etc.

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53 TIPI and We provide our clients access to group benefits & pension and property & casualty insurance and risk management solutions that address the specific challenges of those we work with by accessing highly rated, respected, experienced and resourced Insurers. Our team provides sound professional advice throughout the various stages of engagement.

54 Our Values Trust Compassion Friendships Social Responsibility Professionalism

55 Indigenous Owned 6 First Nations Partners (O/A TIPI Insurance Partners) 44 First Nations Partners (O/A TIPI Insurance Partners) 8 First Nations Partners (O/A ) 3 First Nations Partners (O/A )

56 Together, we are stronger! In 2011, TIPI Insurance Partners established as an integrated brokerage offering both Property & Casualty (P&C) and Pension & Benefits (P&B) products and services in Manitoba, Saskatchewan and Northwestern Ontario. In 2017, TIPI acquired majority of IMI Brokerage, significantly expanding its reach across western Canada establishing TIPI-IMI Insurance Partners.

57 Total Community Coverage Benefits Protecting employees and their families Pension Protecting financial security for the next generation Community Members Property Protecting the community's physical assets Casualty (Liability) Protecting the community in the event of unforeseen accident

58 Our Team

59 Contact Us TIPI Insurance Partners National Head Office Suite Portage Ave Winnipeg, MB. R3G 0R Regional Head Office 110A Airport Drive Saskatoon, SK. S7K 6W