Background

Representatives from the insurance industry, the voluntary sector and the Government of Alberta, began to meet in early 2004 to discuss growing concerns about the impact of rising insurance costs on many organizations in the voluntary sector in Alberta.

The initial meetings identified a number of issues related to property insurance, automobile insurance, commercial general liability insurance, sexual abuse coverage, Director and Officers’ policies and Errors & Omissions. The issues related to the different types of insurance vary but cost, the availability of coverage and limitations on coverage were the most common.

This dialogue was helpful in clarifying issues and enabling representatives of both the insurance industry and the voluntary sector to develop a better understanding of what drives changes in insurance rates and coverage, and why the changes that have occurred during the hard insurance market of the past few years have had such a dramatic impact on many organizations.

One of the early results of these meetings was a bulletin issued on November 23 by the Assistant Deputy Minister of Pensions, Insurance and Financial Institutions stating that the S.E.F. No. 6a endorsement is not required in situations where people use their vehicles for volunteer purposes and are reimbursed for mileage and expenses. Differing interpretations of this requirement had been identified as a problem, and this clarification had an immediate impact on affected organizations.

Formalization

In January, 2005, the group that had been meeting informally agreed to establish the Alberta Voluntary Sector Insurance Council. The purpose of the Council is to provide a mechanism for the voluntary sector, the insurance industry and the Government of Alberta to address insurance-related issues affecting the broad voluntary sector. In this context, the term “voluntary sector” will refer to those groups and organizations whose work is not-for-profit and governed by a board of volunteers. It does not include quasi-non-governmental groups (quangos) such as hospitals, and universities.

A planning meeting was held on April 26, 2005 at which the Terms of Reference were adopted and a work plan developed. The group meets regularly throughout the year.

Membership

The Council is chaired by Liz O’Neill, Executive Director of Big Brothers Big Sisters of Edmonton and Area, representing the voluntary sector, and Jim Rivait, Vice President of the Insurance Bureau of Canada is the Vice Chair. Other members of the Council include:

Voluntary Sector

• Edmonton Chamber of Voluntary Organizations
• Calgary Chamber of Voluntary Organizations
• Alberta Council of Women’s Shelters
• Volunteer Alberta
• Boys and Girls Clubs of Alberta
• South Regional Joint Planning Group

Insurance Industry

• Independent Insurance Brokers Association of Alberta
• Representatives of insurers and brokers

Government of Alberta

• Superintendent of Insurance
• Community Development
• Justice Representation from other departments as required.
• Other organizations will be invited to participate, depending on the specific issues being addressed.

Achievements

• Information sessions were held in Edmonton (July 12) and Calgary (September 12) to inform stakeholders about the Council and its plans. Reports from the sessions can be found on the ECVO (www.ecvo.ca) and CCVO (www.calgarycvo.org) websites.
• Connections were made with the Voluntary Sector Forum initiatives, including inviting Connie Berry of the VSF (www.vsf-fsbc.ca/eng/liability/index.cfm) to attend a meeting of the Council to provide updates.
• Connections were made with IBC at the national level, and Grant Kelly from Toronto was invited to attend a meeting to provide updates on IBC activities.
• A pilot training event was held in August with underwriters from Royal & SunAlliance, the ECVO and an MBA student working on insurance issues.
• Developed and delivered training on an Insurance Tool Kit for not-for-profits.

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