2022 Chairperson’s Report

85th Annual General Meeting

Once again, year end results are demonstrating how the financial strength of the Company has and continues to evolve.  Historical Gross Premiums Written has continued to increase from less than 1% in 2016 to 14.2% in 2021.  The increase in new business is attributed to the availability of a competitive auto product through United General with combined discount rates, increase of property sales in South West Nova Scotia due to people moving from Ontario and West of Canada to the Maritime Provinces, good loss experience, insured to value increases, and rate increases.  Current rebuilding costs have significantly increased as a result of high demand and low supply of many building materials and for this reason the Board has approved an inflation rate increase of 7% for 2022.

Claims results for 2021 shows a frequency of 54 claims, compared to 71 in 2020 and 2021 had a lower claim severity with 2 Excess of Loss Claims compared to 3 in 2020.

In 2021 we recorded $157,522 in gains on sale of investments compared to $17,681 in 2020 which provided a significant increase to investment income this year.

Renovations at the Tusket branch office were completed in September of 2021.  The expanded office has significantly improved the working environment now that it incorporates a kitchenette, a washroom and an additional office space.

In 2022 clients will be able to make credit card payments through the Clare Mutual website.  This will be done with the objective to decrease customer calls and provide a more efficient, direct means of making payments.

The COMPASS inspection software NOMAD is now fully operational and being used in the field.  In 2022 the expectations is to use the data collected to create a more automated follow up on recommendations and start proactive communications to clients in regards to oil tank and roofing replacement.

The broker management system, Applied/Epic was implemented in 2021 and is now being used by all CSR’s to process broker applications.  Any new insurance data is being automatically uploaded to the system and some documents are electronically filed by staff.  The broker book of business is close to being paperless.  All communications, including e-mails, are recorded or saved directly in Applied.

In 2022 the objective is to make use of more Applied functions which will provide a portal from which clients can log into and access their policy information.  At one point the plan is to send renewals using the system.

Clare Mutual has been growing steadily over the past few years and is currently in a transitional phase to prepare for the next level of growth. First and foremost there is a good opportunity to increase the broker portfolio which is risk free income.  In order to maintain sales at current levels, risk management is essential to ensure that bad loss experience does not follow, therefore an efficient loss prevention program is essential.  The objective is to highlight the protection provided to clients against loss of life and/or property and deter from the idea that the Company is protecting its assets by preventing claims.

I am grateful for the team of staff and Directors that worked together to bring the Company to another level of financial stability and also have the flexibility to be responsive during times that bring never ending change.  All continue to appreciate the respect, and professional working atmosphere at Clare Mutual.  This is evident in how we conduct business; support our clients and one another.  All team members work well together, are well educated and have an interest in doing what is best for the Company and seeing it succeed, this contributes highly to the successes of this company.

Henry Thibodeau - Clare Mutual Insurance - ChairmanHenry Thibodeau

Chairman of the Board of Directors
April 5, 2022