How this Alberta brokerage has thrived for three generations

How this Alberta brokerage has thrived for three generations | Insurance Business Canada

Industry insights

How this Alberta brokerage has thrived for three generations

Putting people first is part of its secret sauce

Industry insights

By
David Saric

This article was produced in partnership with Intact Insurance

David Saric, of Insurance Business, sat down with Ty McDonald, president of Boreal Insurance Group and Farid Virji, vice president, business development, Alberta, at Intact Insurance, to discuss how this family-run brokerage has thrived over three generations and why relationship-building is integral to its business.

As the third- generation president of the family-owned and operated brokerage Boreal Insurance Group, Ty McDonald (pictured top) is keen on evolving the business and being respectful of relationship-oriented roots built over almost eight decades.

Farming accounts have remained the brokerage’s “bread and butter” since its launch in 1946, and the industry is currently facing emerging challenges that require creative solutions.

“There’s climate change, cyber risk, data digitization and an influx of new farming technologies,” McDonald said.

Agricultural insurance needs may be changing, but one thing has remained consistent with each successive owner at Boreal – a dedication to helping the policyholder navigate whatever market complexities exist.

“We still have clients who first signed a policy back with my grandfather in 1946,” McDonald noted.

“It just goes to show that building great relationships can lead to retention while also opening up opportunities for new clients looking for similar service.”

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Staying relevant as the industry changes

While many brokerages are being purchased by larger national brokerages in a tide of mergers and acquisitions (M&A), staying independent and true to its roots has helped Boreal thrive.

“At the end of the day, you can either complain about the environment that you’re in or you can look for the opportunities that it creates,” McDonald said.

For Boreal, M&A activity has resulted in an influx of clients who would rather not deal with call centres or out-of-town commutes and want an attentive broker who understands their individual risks.

McDonald and his team focus on customers who prefer a closer bond with their brokers, since this has been the company’s secret sauce throughout successive generations.

“There is a need and a consumer desire for the relationships that we offer,” he said.

Based out of Innisfail, the brokerage maintains a strong presence in the rural community where it got its start. Plus, its people-first philosophy has allowed Boreal to attract clients from throughout the province, according to Farid Virji (pictured below), Intact vice president, business development, Alberta.

“Since Ty has taken on the business, he has been able to reach out to his contacts and the Alberta-wide network that he had built before taking on Boreal, and leverage them to grow the brokerage,” Virji said.

Partnering with the right carriers

Policyholders in rural areas rely heavily on their brokers to address their needs. Boreal’s economy of scale may be lower than its peers, but its customer-first focus and learnings passed down through generations keep it on the right track.

“In larger communities, you have lots of companies build out infrastructure – we don’t have that,” McDonald said.

“Therefore, we have to be more on top of things in order to keep the business moving and clients happy.”

Working with carriers like Intact, which are willing to show flexibility and that can reallocate resources when needed, has proven critical to Boreal’s ability to provide the level of care that it has prided itself on for decades.

“It’s important to have direct access to a carrier that is willing to field my concerns and complaints and help me come up with resolutions for our clients,” McDonald said.

Virji echoed this sentiment, stating that keeping in constant communication with a broker partner like Boreal is the key to mutual success.

“Understanding each other’s business strategies, how that can change throughout the course of a year and how we can leverage each other is crucial,” he said.

What the future holds

For the foreseeable future, McDonald looks forward to being at the helm of Boreal and expanding and refining its operations.

“I don’t plan on leaving anytime soon,” he said.

McDonald plans to pursue organic growth aggressively over the next five-to-10-years, and broadening referral opportunities from existing clients.

As for succession plans, McDonald said, “We’re not trying to reinvent the wheel here.”

What is most important is that whoever has the chance to take over the business, whether that is a member of the McDonald family or not, does not lose sight of what makes Boreal stand out.

“We will continue to address the expectations of consumers, find that niche and try to outperform our competitors, all while keeping our clients and carrier partners close to us,” McDonald said.

Intact Insurance is Canada’s largest home, auto and business insurance company, the choice of more than four million consumers. Its coast-to-coast presence and its strong relationship with insurance brokers mean the company can provide the outstanding service, comfort and continuity customers deserve. Intact Insurance is a member company of Intact Financial Corporation (TSX: IFC), the largest provider of property and casualty insurance in Canada and a leading provider of specialty insurance in North America.