Compared to Quebec, Alberta and Ontario, British Columbia’s confirmed cases of coronavirus have remained relatively low. The province remains in Phase 2 of its reopening strategy, during which time restaurants and personal service establishments have started opening their doors to patrons, with hotels, resorts and parks following suit in June.
As for the insurance industry in the province, the pandemic has thrown one line of business for a loop and that’s the government run auto through the Insurance Corporation of British Columbia (ICBC). Historically, the process of purchasing auto insurance in BC has been very retail-oriented, with customers only being able to buy coverage if they went into a broker’s office, showed their ID, filled out paperwork, and received a decal for their licence plate. Then, COVID-19 arrived and upended this insurance buying process.
“When we made the decision to close our doors to the public, that was a huge thing and we were anxious for ICBC to change their licensing rules, and figure out a way to do insurance over the phone and by email,” explained Laura Bolster (pictured above), president and COO at Megson FitzPatrick.
By mid-March, ICBC had enabled transactions such as auto insurance renewals to be conducted online to avoid in-person contact due to the pandemic. That fast reaction meant brokerages like Megson FitzPatrick could continue to serve their clients from home or the office without the need for clients to make an in-person visit.
“It was a pretty big workaround that we had to [implement], but we did it quite successfully and it’s been working well,” said Bolster. “About 90% of the auto transactions could be done this way and over the last couple of months, we’ve had nothing but great feedback from our clients because they don’t have to come to the office – they can call in, do everything over the phone, online or via email and then we mail them all of their documentation.”
In fact, one silver lining from the health crisis is that the demand for ICBC to continue offering online and phone services will likely persist as insureds will want to keep accessing these options. Bolster says that brokers are waiting to hear ICBC’s decision on this front and whether this will be sustainable over the long-term, but she noted, “We’re optimistic and the brokers’ association is working really closely with ICBC to let them know that consumers want more options.”
In contrast, on the home and commercial insurance side, clients could always be serviced using other methods of communication, though Megson FitzPatrick brokers visiting insureds in person to conduct a more thorough review of their operations was put to a stop over the past few months.
Key questions coming from commercial clients during this time have often focused on business interruption (BI) coverage. Luke Mills (pictured below), commercial account executive, risk advisor and partner at Megson FitzPatrick, explained that many clients are aware that insurance companies are generally taking the position that a typical BI policy does not include coverage for pandemics, but they may need to confirm that they have not been indemnified by insurance as part of an application for government support. However, it is important to evaluate each client’s specific situation carefully as every insurance program is different, he added.
Businesses have likewise been interested in managing their premiums over the short-term, especially those in the hospitality and tourism industries, which have been impacted severely and have had little to no revenue coming in over recent months.
“We’ve also had lots of questions around liability, with people wondering, ‘if we reopen and somebody alleges that they contracted COVID-19 at my business, am I covered by my general liability policy?’” said Mills. “My feeling is there’s going to be litigation, probably for years to come, around the pandemic. We’ve seen a couple of cases already launched in Canada, and we’ve seen a lot more in the States and in Europe because this is truly unprecedented, so I think it’s going to take the industry a while to navigate it.”
Besides advocating for clients during this crisis, the Megson FitzPatrick broking team has been working with local associations, such as those in the construction/development and hospitality industries, to guide them towards appropriate insurance resources and provide crucial guidance. WorkSafe BC and Public Health have also made available many resources for companies looking for guidance in creating a safe environment for customers and staff as they reopen.
“They have done a good job with helping employers understand what their obligations are, so we might just supplement some of that government information that’s available with specific resources that we’ve either created ourselves or in partnership with our larger broker group,” said Mills. “Some of the insurance companies have also been quite good about developing and sharing resources to help guide companies through this changing environment.”
