Good Morning

Simon Le PineLiving in BC I started my career as a professional climber, skier, and mountain biker.Last June my climbing partner finished the 7 summits on Everest, unfortunately I was unable to join him because I've been too busy.I certainly understand risk management in the outdoors. Groups separate in glacial crevasses and avalanche terrain but bunch up when kayaking in rough waters.

Professional Background

Early on I was involved in Search and Rescue.I was also an assistant raft guide in Squamish, BC.From there I moved to Whister to develop a new guided mountain bike program.Attended the Thompson Rivers University Adventure Guide Program.Insurance has now been my career for 8 years. 5 years as a front line insurance broker and now 3 years managing insurance companies.I have just recently completed the CRM professional designation.

Premiere opened for business in 1999.We started out insuring film, multimedia, and gaming.Premiere began insuring adventure tourism and climbing walls in 2008 based on my background and experience.In putting this presentation together, it occurred to me Premiere has over 200 years of combined insurance knowledge.The point I'm making is it's worth considering if your insurer understands the industry and organization they're insuring.A co-worker of mine has always said, it's easier to hire a horse person and teach them to insure horses or a raft guide and teach them to insure tourism. Insurance is easy, specialized industry knowledge is much more difficult.In February of this year it was announce that Premiere is now part of a much larger parent company called Everest Re, which is a global, publicly traded reinsurer.

In my experience, the best way to introduce insurance is to provide some key terms and definitions:Agent - An insurance sales person who represents a single insurance company and sells on their behalf.Broker - An insurance sales person who represents the client and presents their insurance to multiple companies to find the best coverage and premium.Intermediary/MGA – An insurance intermediary who negotiates coverage with Lloyd's of London and other carriers in niche areas, such as tourism, oil and gas, etc. where specialized knowledge is required.Wholesaler - An insurance intermediary who does not posses specialized knowledge but rather attempts to cover any & every risk presented to them.Insurance Company - A company with enough capital internally to cover losses on insurance policies they provide.Reinsurance Company - An insurance company for insurance companies when policies are too big for the insurance companies capital or if they are unwilling to accept the risk entirely themselves.Insurance Brokers Association - Every province has an association for insurance brokers to network, learn, maintain professionalism, etc.Insurance Council - Every province has an insurance council, which is overseen by the provincial government and is charge of protecting public interest, resolving disputes, etc.

Insurance Terminology

Risk Management Terminology

The same applies to risk management; understanding the basic concepts is the start to effectively managing exposure:Separation - The act of separating assets to prevent risk exposures.Duplication - The act of keeping backup working copies of assets to prevent risk exposures.Avoidance - The act of avoiding some business operations with unacceptably high risk.Diversification - The act of diversifying business operations to prevent losses.Reduction - Any act to reduce risks.Prevention - Any act to prevent risks.Retention - The act of consciously taking risks.Transfer - Transferring risk to an external third party.Frequency - What insurance companies look at when accessing risks. Severity – Something else insurance companies look at when accessing risks.

The Risk Management ProcessFormal approach:

– Identify assets/liabilities/exposures– Select management techniques– Implement management

techniques– Review effectiveness & cost of

techniques3 approaches:

– Prevent accidents from occurring.– Reduce the severity when an

accident does occur.– Pay for the losses after an

accident occurs.In school we often talked about perceived risk versus actual risk.Risk management planning contains the following sections:

– Risk management mission– Assets– Liabilities– Risk exposures– Checklists & tools– Appendix

Insurance Questions to ConsiderThe following are some questions to consider with regard to insurance & risk management:

– Are your participants/guests/clients insured? – Are the third party providers you work with

properly insured? How can you tell?– What do you do if a third party cannot provide

proper insurance?– Have you ever signed a contract with insurance

requirements or stipulations? Did you notify your insurance company? Do you know what a waiver of subrogation is and why it's important?

– What does the description of operations state on your insurance policy? Is it accurate?

– Does your website accurately reflect your business operations? Is there anything outdated on there? Is there anything that could prevent your getting getting insurance or cause your insurance premiums to increase?

– Other than your current insurer? How many companies are willing to insure your organization and what would you sacrifice (higher price or less coverage) taking their insurance?

Q & A

Contact & Notes

I'm always happy to help and encourage anyone to get in touch if they have any further questions and need more info.

You can contact me in the following ways:Email: slepine@premiereins.comConnect:

– Twitter: @high_camp– Facebook: simonguide– LinkedIn: simonlepine

Phone: 604-629-7104.

You can access the notes for this presentation by going to:http://AmorphousProjects.COM/blog/tmb.

Additional InformationExposures you may have but not realizeMethods to increase perceived risk while decreasing actual risk.How does an organization effectively transfer risk?Insurance should be your last resort in risk management.Why is it important to consider liabilities when looking at risk management and writing a plan?Why is a formal risk management approach better than informal?