Paul and Mark Holman acquire controlling ownership of Holman Insurance Brokers Ltd.

It is with great pride that Paul Holman and Mark Holman have acquired the ownership interests of Frank Holman. Paul Holman will become President and Frank Holman will remain on in a consulting capacity.

Clients are well-served by our IT Infrastructure

At Holman Insurance Brokers Ltd. in Markham, Ontario, quality insurance service depends on a reliable IT infrastructure.

The brokerage’s 75 broker’s advise their varied roster of clients on a wide range of personal, business, and commercial insurance and financial matters. “We work hard to provide quick access to resources for our brokers, as we feel it is important to give our brokers a technological edge while working with clients to manage risks.”

By providing brokers with fast, omnipresent access to e-mail, voicemail, document management and a variety of business applications, our brokers can deliver the benefits of higher-quality products at lower costs to our clients.

The Omnipresent Brokerage

In 2005, Holman initiated a sweeping overhaul of an out of date computing environment. Working closely with their in-house IT Manager, the brokerage developed the Omnipresent IT Infrastructure around 12 state-of-the-industry servers including upgrades to 75 workstations and the integration of a new communications platform.

With updates to software such as e-mail, document management, networking tools, and upgrades to their web presence, Holman has provided their brokers with 24 hour access to applications through server-based computing software - Citrix Systems.

Upgrades were also made to their current software packages including Applied Systems Agency Manager with policy data management, Compu-Quote software, Apres System eTFile for document sorting and storage, and Policy Works designed for quoting and policy management for Commercial Business.

Also included in these upgrades, a state of the art Hubbell certified Datacenter computer facility with Gigabit Ethernet backbone and a network is maintained and backed up regularly.

Through the Mitel Communications Platform, brokers are provided with unified messaging, teleworker solutions for remote or home based brokers, contact centre with the capabilities to handle a large volume of in/out-bound communications and a speech server.

Affordable Connection

To keep the IT infrastructure in constant check, a considerable investment was required, ensuring the high level of reliability along with responsive support from the IT staff. This investment has included additional power supplies, backup air conditioning systems and backup power sources.

In a brokerage, we need to keep everything running at all times. Thanks to our IT Department’s expertise, we have a world-class infrastructure comparable to that of firms many times our size.

Ontario's New Dealer and Service Plates

The Ministry of Transportation is introducing a new licence plate for exclusive use by motor vehicle dealers. Starting December 1, 2004, the existing motor vehicle and trailer Dealer and Service Plates (yellow and black DLR series plates) will be phased out over a 26-month period (December 1, 2004 to February 1, 2007) and replaced with two distinct plates.

New Dealer Plate/Permit

Ontario motor vehicle dealers licensed under the Motor Vehicle Dealers Act are eligible for the new Dealer Plate/Permit. The new Dealer Plate/Permit is a single portable plate with the word "DEALER" on the left side and red alpha-numeric characters on a white background. It is for exclusive use by motor vehicle dealers only on motor vehicles owned as part of the dealer's inventory of vehicles for sale. It may be used for private use in Ontario or for purposes related to the sale of motor vehicles that are owned as part of the dealer's inventory of vehicles for sale.

Effective December 1, 2004, motor vehicle dealers can return their existing Dealer and Service Plates to any Driver and Vehicle Licence Issuing Office and purchase the new Dealer Plate/Permit for $30 each.

For new motor vehicle dealers, when purchasing the new Dealer Plate/Permit, you must provide the $30 fee and each of the following:

• The original dealer number certificate issued by the Ontario Motor Vehicle Industry Council (OMVIC)
• Your driver's licence or two pieces of identification

If you are an existing motor vehicle dealer and you have a valid Dealer Authorization Letter (DAL) on file at your local issuing office, the plate, permit and the $30 fee is required to purchase the new Dealer Plate/Permit. However, if you do not have a valid letter on file (i.e., it has expired), please follow the requirements of a new motor vehicle dealer.

The validation fee remains the same at $13 per month, and any validation remaining on existing plates can be transferred to the new Dealer Plate/Permit.

New Service Plate/Permit

Service providers, including anyone who repairs, customizes, modifies, manufactures or transports motor vehicles or trailers will continue to use the existing Dealer and Service Plate, which will be converted to the new Service Plate/Permit. The plate will remain unchanged but the permit will be modified to indicate the new service class of "SPR."

Effective December 1, 2004, service providers can convert their existing Dealer and Service Plates to the new Service Plates/Permits free of charge by presenting the permit to any Driver and Vehicle Licence Issuing Office. A new applicant for a Service Plate/Permit must present a letter on company letterhead, outlining the reasons why the plate is required. A trailer dealer must present a Class A garage licence.

A Service Plate may be used:

• on a trailer or motor vehicle other than a motorcycle or motor-assisted bicycle for purposes related to the repair, road testing, customization or modification of the vehicle, if the vehicle is in the possession of the person to whom the service plate is issued, or
• for the purpose of transporting the vehicle by a person engaged in the business of transporting vehicles, or
• for purposes related to the manufacturing or sale of a trailer, or
• for the purpose of towing the vehicle by a person engaged in the business of transporting vehicles, or
• to tow a vehicle to a location where its load will be removed or to an impound facility.

Private use of motor vehicles or trailers with a service plate is not permitted.

(information provided by Ministry of Transportation)

Company vice president Paul Holman knew the paper was more than an annoyance. It was becoming a competitive hindrance. ""In an insurance brokerage, just opening the mail creates a new wave of paper to be handled," he claims. That new wave of paper every day was becoming a formidable operational challenge." ...read more

Why are your Insurance Premiums Rising?

Addressing Rising Costs
We at Holman realize that times are tough and we understand your frustrations with rising insurance premiums. We also are aware that this is a sensitive issue, and as your source for commercial and personal insurance solutions, we feel it is our responsibility not to back away from this issue but to address it, and try to explain what factors are contributing to the recent price increases.

The Declining Canadian Dollar
The fact that the Canadian dollar continues to lose value against its US counterpart is no secret. As a result, more and more Canadian dollars have been needed to pay for each and every claim. Fluctuations in currency are an unavoidable reality, and compared with the US dollar, the Canadian dollar has lost approximately 23% of its value since 1995. This leaves Canadians, and their Insurance Companies, to pay the difference.

Years of Excessive Discounting
This is one reason for the increase in insurance costs that has not been given much public attention. Even before the cost increases that are being experienced throughout Canada today, tremendous competition had driven premiums to levels almost too low to even cover the cost of business. In recent years, many insurance companies have been losing money from their basic operations, primarily because insurance rates had essentially been too low. This does not seem to make a lot of sense, and would not be acceptable in most industries.

So why did large Insurance Companies continue to let it happen year after year?
The answer in fact is that in recent years Insurance Companies have been able to offset their operational losses with investment income. In other words, investment income has been used for subsidizing insurance costs. By relying on these investment returns, companies have aggressively pursued growth by "undercutting" each other, often losing sight of profitability.

So what does all this mean?
Today's economy revolves around a weak stock market and very low interest rates. As a result, Insurance Companies can no longer afford to subsidize premiums as they have in recent years. Therefor, the only way to compensate for this is to increase premiums, a measure that still leaves insurance companies generating far less profit than the industry average.

Rising Reinsurance Costs
The world is still recovering from the tragic events of September 11. The estimated US $60 Billion loss to date resulting from these events is more than triple the largest previous loss ever recorded by the insurance industry.

Many of the Canadian Insurance Companies that Holman Insurance Brokers Ltd., does business with did not have any claims as a result of September 11. They will however, suffer the effects along with the entire worldwide insurance industry. One of the effects is increased premiums.

So why do Canadian companies have to increase their insurance rates?
The answer is that insurance companies, as a result of the NYC attacks, now face significantly higher costs for reinsurance protection. Reinsurance companies protect Insurance companies the same way that your insurance company protects you. That is by building large reserves of money necessary to handle massive disasters such as earthquakes, hurricanes, and unfortunately enough, terrorist attacks.

On an average claim, 35% of the costs are paid by the Insurance Company while the other 65% is paid by the Reinsurance Company. The Reinsurance Companies now have to prepare for these types of events worldwide, and this results in our insurance premiums increasing along with yours.

Other Contributing Factors

Vehicle repair costs are increasing at an average of more that 10% annually. Medical and Rehabilitation costs are increasing at an average of 14% annually. Increases in the occurrence of fraud, last year alone $1.3 billion dollars went to fraudulent claims. Increases in theft, $45 of every policy pays for auto theft. Costs for providing health services to people injured in auto accidents have increased by 350% over the past 10 years! Ontario's auto insurance market (over 25% of the Canadian market) is having some of its worst results in history. The industry as a whole has failed to achieve an underwriting profit since 1978. Combined, the facts are that for every $100 you pay in insurance premiums, $110 is paid out in claims and expenses.

What Can You Do?
The first thing to do is to look beyond the initial frustration of rising costs. This is no doubt difficult but we both need to face this issue head on. Keep in mind that rates have been falling for a long time. Even with the recent increases, in many cases the rates are still below typical levels of 1995. Second of all, practicing safety is always important in keeping insurance costs down, and today it is absolutely vital. Whether you are insuring your car or your business, by practicing safe habits and reducing the risk of excessive claims, you can do your part to offset rising insurance costs.

What Can We Do?
Holman has been protecting people like you for more than 20 years and we are proud of our ability to deliver the most effective coverage at the lowest possible price. As a brokerage, we work in partnership with many leading Canadian Insurance companies to find the best coverage for your needs. By selecting only the best customers, who will not likely generate excessive claims, we can minimize the increases in your insurance premiums.

Along with our partners, we are working to reduce the occurrence of fraud by making you aware of the effects it has on your premium. Where possible, we can also offer discounts and benefits to our claims free customers.

We appreciate your trust in us, and our dedicated staff will continue to do everything we can to serve you better! If you have any questions about your insurance premium, or your insurance in general, please do not hesitate to call us.