InnFocus Fall 2022

y Mike Macleod, Director of Member and Business Development
Many of our members will cite property and liability insurance as the reason
for belonging to the BCHA. Not coincidentally, insurance matters have
played a significant role in the support our organization provides to our
members. Over the years, this has included offering members a variety
of insurance programs that provide the advantage of a group purchase,
as well as policies tailored to the unique needs of our sector. This work
has also been supported by a variety of advocacy efforts that includes
furthering the interests of our members with insurance companies and all
levels of government.
Recently, however, the industry has been faced with the most
adverse insurance market conditions in decades. These conditions
have led to unacceptable insurance premium increases during
the worst economic conditions
brought on by the COVID-19
The industry has been faced with
the most adverse insurance market
conditions in decades.
pandemic. Furthermore, many
properties previously included in
our BCHA Hospitality Insurance
Program (HIP) were not even
offered insurance. It is important
to note that these conditions were
experienced across the country and experienced both inside our program
as well as externally.
Faced with these market conditions, earlier this year, the BCHA, along
with our provincial partners in HIP, commissioned a third-party study into
our program and several months ago they provided their conclusions. The
overarching theme was that BCHA along with its business partners had
several good options to deliver better value within its insurance program.
Not surprisingly, the recommendation outlined that taking better control
over insurance matters and exploring self-directed models was the most
important step. While the independent study may have yielded predictable
results, it only scratched the surface on the work that was ahead of us.
The partner associations in BC, Alberta, Saskatchewan, Manitoba,
and Ontario decided on a five-step course of action in order to facilitate
real change. The first step was to truly understand the needs of the hotel
sector. We did this through a variety of surveys and in-person engagement
sessions. The second step was to inform and educate members on
the root causes of the issue, while outlining initial recommendations for
possible solutions; this was accomplished by delivering the findings of
the research project and gaining the support of plan members and
non-plan members.
The next step is to leverage the strength of hundreds of hotels across
Canada. We have engaged businesses of all types and requested
their policy information and support so that we can complete a robust
feasibility study. The final steps are putting forth the best solution for
our members—following the outcomes of our engagement process,
research, and conversations—to support accommodators as a trusted
advisor. After a decision on the best model to move forward with, we
will seek to ensure we move forward with the right level of investment
and map out a long-term strategy to provide a sustainable, predictable,
and affordable insurance program.
We are close to announcing
a final recommendation and
solution. Our members can be
assured that the attentiveness and
due diligence to this issue is in your
best interest and will be beneficial.
All members of the sector will
be eligible to participate in this
plan and may even seek to become business partners. Ultimately,
the reason for this work is in response to what we’ve heard from
members. We recognize the important role insurance plays for each
of you, how crucial it is to have certainty on insurance premiums, and
most importantly, to take back control in the currently unreasonable
insurance market.
Advertisers
BCHA
IBC
BC Hospitality Foundation 29
Coldstream
FRESCo Building Efficiency/
FortisBC
IFC
BC
RHB Enterprises 13
Samsung Electronics Canada 16,17
Telus
IBC
Tex-Pro Western Ltd 4
Western Financial 14
Group Insurance Solutions
World Web Technology 7
30 InnFocus