Operating Highlights
As we provide support and gear up to the launch of PHINEX, operational priorities have temporarily shifted. That said, our Underwriting teams still completed a full Commercial Auto review, resulting in an overall average rate increase of 5.62% and several changes to our rating factors, and a Personal Property review, resulting in an average rate increase of 8.12% to our Homeowners, Condo, and Tenants packages. Noteworthy enhancements were also made to our Farm product, encompassing changes to our wordings, limits, and coverage.
Our Claims team remained busy as ever in the face of the previously mentioned weather events, inflation, vehicle thefts, policy growth and more. Thankfully, none of the weather events reached our CAT retention of $6M, and overall, our losses were less than our market share would indicate. One item that was efficiently handled was the increasing claims lifecycles we were witnessing, which our new Auto Claims Manager set as a priority, and we are now seeing those return to normal levels.
We remain steadfast in our commitment to having robust cyber security measures in place. This year, our IT team remediated all the 2022 Cyber Security Penetration Test findings and subsequently completed a 2023 Test. They also successfully rolled out a new Managed Detection Response solution, multi-factor authentication on our core infrastructure equipment and servers, and a new IT Auditing solution. While these efforts have directly resulted in an overall improvement to our cyber security capabilities, the journey will be ongoing as the cyber landscape and associated risks change almost daily. Further initiatives from other areas of our IT department included the implementation of a new asset management solution, an annual Disaster Recovery Test exercise, acquisition of new production printers, and optimization of internal processes and reporting, all while continuously supporting the PHINEX team.
Gearing Up: To PHINEX and Beyond
When we look at the year as a whole, it was our preparation for PHINEX that stands out as an obvious and ongoing theme. Gearing up for this monumental change to our core operating system has required some level of involvement from every department in addition to a dedicated project team. That team in question is comprised of 41+ Peace Hills staff and contractors, including the majority of our IT department, as well as an additional 70+ staff from our partners at EY. Together, they completed 11 development sprints (which involved over 130,000 hours), finishing off the year by reaching the penultimate milestone, “Development Complete”. This means that all initial development items were completed in preparation for remediating defects prior to System Integration Testing (SIT) in early 2024.
In many ways, PHINEX represents the future of Peace Hills. Having a new system will facilitate our projected growth, providing all areas of our business the ability to work more efficiently. For starters, PHINEX demonstrates a fundamental shift in our entire approach to technology. By simply no longer needing to develop a core system themselves, our IT department will be able to prioritize delivering new features, functions and capabilities to the business. The Guidewire Cloud platform will release three updates per year, allowing us to continually evaluate the way we use PHINEX to deliver value to our business partners and customers. Meanwhile, our Claims team will be able to build integrations with many of our vendor partners and expedite the claims process, and also have more opportunities to connect directly and more securely with our policyholders through a front-facing claims portal and SMS messaging. Similarly, the Accounting team will benefit from a superior policyholder experience with flexible billing methods and faster payment processing, in addition to simplified reporting and data analysis processes.
From an Underwriting perspective, numerous administrative tasks will be streamlined and automated, freeing up both our Corporate Underwriting and Branch Underwriting teams from repetitive functions. This will allow them to provide even better customer service than we are already known for with our Broker partners, from additional support and learning to full connectivity to all BMS (Broker Management System) and rating systems. Having a single point of truth for rating is poised to be one of the greatest benefits of PHINEX.
Our People; Our Driving Force
Our success is intrinsically tied to the exceptional individuals who make up our team. This year was heavily focused on ensuring we have the proper resources in place to support the development and upcoming launch of PHINEX, which will be a monumental change in our company. Notably, it is all happening during a time of exceptional growth; thus, it is more imperative than ever that we are hiring quality talent – while nurturing and retaining our existing talent – in sync with that growth. Nearly all of our departments welcomed new staff members throughout the year, and we even officially outgrew our office space in Vancouver, which will relocate in early 2024.
We have seen more changes to our leadership roles this year than ever before. The growth of our organization has brought with it a need for additional Directors and Managers. These newly developed roles included a Director of Business Integration, Director of Actuarial, Digital Director, three new Claims Managers (Auto Claims, Bodily Injury and Accident Benefits, and Corporate Claims) and an Administration and Office Manager. In addition, we welcomed new employees to support the business as we grow and transition to the new system; in total, 32 new positions were planned in 2023. I am continually impressed by the resilience of our organization and our ability to thrive in a changing atmosphere.
Our commitment to fostering a fun and engaging workplace culture was displayed through the abundance of in-person celebrations enjoyed by our staff. The annual Milestone Anniversary party, summer pancake breakfast, numerous holiday events and retirement festivities are just a few of the unique gatherings that make Peace Hills a great place to work. We also continued to conduct regular employee surveys. The surveys are designed to allow employees an anonymous forum to provide their thoughts and feedback on topics like effective management, empowered work environment, communication and overall happiness. The results have been instrumental in gauging the pulse of our workforce and gives us a tool to guide decision-making on matters that directly impact them.
Encouraging and facilitating learning and professional development is another vital component of our culture. This year, we forged partnerships with leadership training professionals to offer additional training for our managers and we also reimagined our orientation materials for new employees. These initiatives underscore our belief that the development of skills and learning new things is a perpetual journey that enriches the service we pass on to both our coworkers and our customers.
Engaging our broker partners in meaningful ways is also a core element of our success and ethos. In the spring we hosted another productive Broker Council event; a full day of discussion on our industry and company with brokers from each of our 4 regions. Conversations in years past have been the catalyst of many business decisions and thus the event has become an annual staple. We also continued our Hometown Turnaround campaign, where we partnered with 11 of our brokers to give out $100,000 to community projects across Western Canada in need of a financial boost. This initiative is synonymous with our mission statement of being a unique insurance company that truly cares, puts a shared positive spotlight on both us and the partnering brokerage, and perpetuates our efforts of nurturing broker relationships in a time when the broker network is changing at an alarming rate.
In summary, our people embody the heart and soul of Peace Hills Insurance. As we evolve, the investment in our people, our relationships and our communities remain the cornerstone of our success. We are a group of individuals who collectively thrive in the wake of change, a challenging market, and a shared vision of excellence.
As we wrap up 2023, it’s clear that our dedication and resilience continue to propel us forward, setting the stage and allowing us to be excited about the future. With our gears in motion, we are ready to take on new challenges, drive growth, and embrace the coming changes head-on.