Clare Mutual Insurance Company

Chairperson’s Report

The 80th Annual Meeting of the Clare Mutual Insurance Company

The year 2016 was by far the best year the Company has had, the best year prior to this was 2006, with net earnings after tax of 310,000 compared to 650,000 in 2016.  Clare Mutual had one excess of loss claim in 2016 totaling 145,500 compared to three excess of loss claims for 2015 totaling 907,000.  In all these cases we received reinsurance recoveries from Farm Mutual Reinsurance Plan to lessen the financial impact.

The implementation of the new policy management system or COMPASS, introduced discounts to existing policyholders in addition to increased deductible options for lower rates.  This resulted in premium changes which resulted in a lower than normal annual Gross Premium written of .15% in 2016 compared to 3.13% in 2015.  In addition, a challenge remains with competition faced with combined auto/property offered by other insurers.  The Company continues to search for additional markets including auto and even pleasure boat markets for example, which would likely increase the number of policies written and retention due to better bundling rates.  In conjunction with the development of COMPASS, a revised underwriting manual was implemented in July 2016. Also our efforts are and will be directed towards creating a more positive image for the Loss Prevention Service.  In 2017 the inspection software system will be integrated within COMPASS, permitting a better follow up and communication of inspection requirements.  We will be able to use data from COMPASS to generate statistical reporting to Farm Mutual Reinsurance Plan and for our own use.  Management, staff and Board of Directors view changes as an opportunity to review existing operating practices and revise them to better meet the operational needs of today.  The transitions to date have been challenging but successful.

Our Mission Statement, which is found in your Annual General Report reads, “with a team of dedicated professionals committed to successfully offer high quality service at competitive prices, consistent with maintaining steady growth, financial stability and fair settlement of claims.”  I believe that we are on track with our mission statement and thank you to all the professionals that work for the Company, for showing interest and enthusiasm on the COMPASS project and other daily tasks and thank you to the Board of Directors and all the work done by committee members.

Henry Thibodeau

Chairman of the Board of Directors
April 4th, 2017