Clare Mutual Insurance Company

Chairperson’s Report

The 81st Annual Meeting of the Clare Mutual Insurance Company

At year end 2017 Gross Written Premiums have increased by approximately 1.65%. Historically for the last 10 years, since 2013, our gross premium written has seen a steady rise. 2012 was one of our worst years with a loss of $470,000 and 2016 the best with a gain of $650,000. Two house fires and one seasonal resident fire were managed in 2017 and most of our smaller claims were weather related. Significant rate and deductible changes were implemented during 2016/17. Now that the changes have run a full year, the normal premium increase of 3% inflation protection has been added to all policies for 2018. We hope to see successes with new technology for our inspection program, expanding our automobile markets, growth in new markets while continuing to maintain sound underwriting processes to achieve profitable results as we have seen in the last 5 years.

The loss of long time Agent Norman LeBlanc occurred in 2017, resulting in redirecting his portfolio to the office. The Clare office was reorganized to accommodate additional full and temporary staff. Also in 2017 the Company was still within the implementation of the Compass Policy Management System. This was an extremely busy time for the Clare office staff and demonstrated their teamwork and dedication to the success of the Company. Thank you to the staff for the productive work done. Implementation of Compass is completed with the entire portfolio entered and renewed in the system. Our emphasis this year will be to implement statistical and inspection data reporting. The integration of these two systems will provide the Company with a valuable risk management tool and pertinent details of risks insured.

The Company continued to search for an additional auto market. The possible introduction of additional auto markets will likely increase the number of policies written and retention due to better bundling rates. We continue to review options and communicate with other possible partners.

Also education is a priority for both employees and directors. Congratulations to all who have successfully completed courses in 2017. In 2018 the objective of Management and the Board of Directors is to gain further knowledge and education to improve the Company’s ability to identify, evaluate and manage potential risks. Efforts will be directed towards creating a more positive image for the Loss Prevention Service through more informative advertising that promotes the positive aspects of the Company’s loss prevention service. The objective is to highlight the protection provided to clients against loss of life and/or property and make it less intimidating.

Director Brenda Blinn retired in 2017 and was replaced by Director Dianne Blinn. In 2017 Direcor Maxine Boudreau passed due to her illness and was replaced by Director Lonnie McNeill. The Board and Committees, in addition to their usual duties, worked on seven (7) new policies and updated/reviewed three(3) of its existing policies. Thank you to all the Directors past and present who supported the Company.

Financial support through donations and advertising for various organizations that are important to the people within the communities the Clare Mutual does business in continued on an ongoing base. Additional efforts will be put into assuring that this financial support will be well advertised to promote that the Company is a leader in supporting its community.

Clare Mutual is federally licensed and is subject to the Nova Scotia Insurance Act and the Office of the Superintendent of Financial Institutions of Canada. Any business transaction has to be in compliance with regulatory and statutory requirements. O.S.F.I. can place restrictions on the Company’s operations if these fall below requirements. The Company manages the risks via underwriting, reinsurance strategy with F.M.R. and inspections of properties.

In July OSFI visited our offices for a more indebt review of Company operations. The recommendations resulting from this review were reasonable and demonstrated that the Board’s governance is satisfying the expectations of the regulators.

With the team of dedicated people that we have we are well positioned to face the challenges and opportunities that will arise in 2018.

Henry Thibodeau

Chairman of the Board of Directors
April 3, 2018