Mission StatementVision StatementGoalsThe History

Size, Financial Strength, ControlPhilosophyThe StaffUniqueness and Future

Broker Compensation and FinancingPrivacy Policy

MISSION STATEMENT

Insurance professionals dedicated to providing quality insurance solutions, service, and security to Saskatchewan people.

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VISION STATEMENT

To be the Insurer of choice by providing customized, professional, and innovative insurance solutions, with a personal touch, to the people and businesses of the Prairies.

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GOALS:

People: To build and maintain an organization of people who have the vitality, strength, capacity, diversity and versatility to carry out its purpose.

Financial Security and Stability: To build and maintain an appropriate profit and surplus.

Policyholders: To make appropriate insurance coverages available and then provide consistent quality service.

Corporate Image: To develop, maintain and project a positive, well respected corporate image.

Facilities: To plan and provide for appropriate buildings, transportation and equipment for the ongoing needs of the company.

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THE HISTORY

Mennonites are an ethnic/religious group that originated at the time of the Reformation in Holland and Switzerland. They started to immigrate to Canada in the late 1800's. A group of them settled in the Saskatchewan Valley (between the two branches of the Saskatchewan River, north of Saskatoon).

Mennonites have always had a strong program of mutual aid. Before the turn of the century, a mutual aid society, including fire insurance, was started from a church-affiliated base. Provision was also made for the social needs of the people when there was sickness or death within the group, and for the well-being of the widows and orphans.

These needs were at first met through a separate arm of this early mutual aid society. This arm eventually grew into Mennonite Trust Limited, which is now a  separate entity also with its head office in Waldheim.

In 1917, the fire insurance arm was incorporated under Saskatchewan laws and began to provide insurance to the larger community under the name "Mennonite Mutual Fire Insurance Company". However, it was not until the 1970's, when the company amalgamated with Prairie Mennonite Fire Insurance, located in Swift Current, that rapid expansion took place. Independent agents were given contracts and insurance was offered to the general public. In 1980 a new modern office building was constructed in Waldheim.

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SIZE, FINANCIAL STRENGTH, CONTROL 

MMFI has insurance for: 

• Home owners
• Tenants
• Mobile Home Owners
• Farmers
• Church property
• Commercial property
• Auto

A full range of coverage is available for each of the above. Insurance products are now being provided through approximately 100 independent brokers to more than 12,000 policy holders.

As of 2009 the company had written premium volume of 12.3 million.

Reinsurance adequately protects for large losses or in the event of a catastrophe.

MMFI, being a mutual company, is subject to the Provincial Insurance Act and meets the requirements applicable to a mutual insurance company. It is owned by its policy holders, who elect a board of directors from the membership at an annual meeting. The six-member board meets every other month to direct the affairs of the company, which are carried out by the Chief Executive Officer and a staff of 27.

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PHILOSOPHY

MMFI is dedicated to providing top quality insurance services to its clients. Adequate coverage is encouraged. Rates are constantly reviewed to ensure that they are fair and equitable. Risk consultations are provided to help prevent losses. At the time of loss, a concerted effort is made to provide an empathic service and equitable claims settlements.

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THE STAFF

A fully trained underwriting, claims, risk consulting, and clerical staff is willing and able to respond quickly to provide a full service to the insuring public. Members of the staff are from the local area and most are long-time employees of the company.

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UNIQUENESS AND FUTURE

The company is based in a small town, but its staff and directors are familiar with the needs of all the people it serves. Its size and financial strength allow it to respond quickly to changes in insurance needs and, at the same time, through adequate reserves, reinsurance and a dedicated staff, maintain its integrity of purpose. MMFI has proven that, with proficient management and staff, assisted by up-to-date technology, it is fully able to compete with larger city-based insurance companies and, in some areas, it is capable of providing superior service and value.

We are at your service.

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BROKER COMPENSATION AND FINANCING

Our Relationships with Insurance Brokers and Agents Compensation explained:

The following information is provided in keeping with our ongoing practices of full disclosure and transparency:

Mennonite Mutual Fire Insurance products are available from insurance brokers and captive agents.  Consumers are generally aware of the difference between buying through an insurance broker who represents several companies, and purchasing through a captive agent who represents only one company.  We also believe that consumers get the best deal in terms of coverage and price—and the most satisfactory experience over the long term—when an insurance broker or agent is advising them.

Our broker and captive agent agreements require that your broker or agent and Mennonite Mutual Fire Insurance exercise the utmost diligence, honesty and good faith in performing their duties, in properly and promptly servicing policies, and in our communications and dealings with policyholders.

We compensate our brokers and agents in two ways:  Firstly, we pay them a fixed percentage of the premium you pay.  This varies by type of business, as shown in the table below.  Secondly, we have an annual bonus commission program which recognizes brokers for helping us to write profitable business; allowing us to remain well-capitalized to pay claims and to keep our premiums competitive.  We have the technical understanding and statistical evidence to know the premium that should be charged for certain types of business and we set prices to compete for that business.  Contingent commission bonus rewards those brokers and agents who understand our market expertise and whose insurance portfolio is made up of the kind of business we seek to write.

Neither Mennonite Mutual Fire Insurance nor the broker or agent knows which policy will have a claim, so the objective is to have sufficient policies without claims to pay the claims of the rest.

Mennonite Mutual Fire Insurance’s bonus commission is payable after the end of a year and it is based on the profitability of the broker’s or agent’s total portfolio of business averaged over three years.  The additional bonus paid to our brokers or agents ranges from 7% to 5% of the commission earned in the applicable year depending on the loss ratio of the broker or agent.

Mennonite Mutual Fire Insurance’s priorities are to meet obligations to our policyholders in addition to ensuring full entitlement to the coverage contracted when there is a claim. Our responsibility to policyholders extends to prudent management of future costs so that pricing is stable and reasonable.  This is enabling us to meet our commitment to our policyholders.  Insuring cars, homes and businesses that we price accurately, is fundamental to meeting these commitments.

We do not provide loans of support to any brokers or agents.

For Mennonite Mutual Fire Insurance building the relationship with a broker or agent is a key to providing timely, efficient service to our policyholders.

Our technical and risk management support of brokers and agents allows them to continue to be successful in providing you with expert advice and excellent service.

Broker/Agent Commission Bonus Plan

An additional bonus commission is paid to our broker or agent under predetermined minimum volume of written premium when their loss ratio is 50% or less based on earned premiums and losses for the last three years.

Bonus commissions are awarded as follows:

• 3-year loss ratio under 30% - bonus of 7% of commission earned
• 3-year loss ratio of 30-39% - bonus of 6% of commission earned
• 3-year loss ratio of 40-50% - bonus of 5% of commission earned

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THE MENNONITE MUTUAL FIRE INSURANCE COMPANY OF SASKATCHEWAN PRIVACY CODE

Protecting the confidentiality of your personal information has always been an important part of the way we do business. To ensure that we protect your privacy, MMFI has recently adopted the Insurance Bureau of Canada Model Personal Information Code. This Code sets out how and why we collect and use personal information about our policyholders. It also explains limited circumstances under which we may need or be required to disclose it.

"Personal information" means information that identifies you as a specific individual. It does not include the sort of general information that could be found in a business directory or a telephone book.

Effective January 1, 2004, the Government of Canada will implement the last phase of the Personal Information Protection and Electronic Act (PIPEDA). This federal statute applies to both the insurance companies and many other industry sectors.

This legislation establishes rules and principles for the use and disclosure of personal information based on the ten privacy principles developed by the Canadian Standards Association. These principles recognize that we live in an era when commercial information is exchanged and circulated by electronic means. It balances the individual's right to privacy in their personal information with the reasonable need of organizations to collect, use or disclose personal information.

Under the new legislation, an organization may collect, use or disclose personal information only for limited purposes that a reasonable person would consider to be appropriate in the circumstances.

The PIPEDA requires us to provide the same safeguards for your privacy that we have always provided on a voluntary basis. Our Privacy Code sets out these principles in simple terms. It explains how we ensure that your privacy and the confidentiality of your personal information are protected.

The Ten Privacy Principles

MMFI's Code of Business Conduct & Practice is based on the following ten principles of privacy accountability.

Principle #1: Our Accountability for the Collection, Use or Disclosure of Personal Information

As a policyholder or customer of MMFI, you have a right to expect that your insurer is accountable for the personal information it collects and uses. "Policyholders" and "customers" mean our current and former insured's, applicants for insurance and claimants under one of our policies.

We are responsible for maintaining and protecting your personal information while it is under our control. This includes any personal information that may need to be disclosed to third parties for processing or other administrative functions.

To help ensure the confidentiality of your personal information, we have established policies and procedures to ensure that we comply with the PIPEDA. We have designed a privacy officer who is responsible for our company's compliance with the ten privacy principles by the Canadian Standards Association.

If you have any questions or inquiries about how your personal information is stored, or when it may need to be disclosed to others, our privacy officer is there to assist and explain our policies to you.

Principle #2: Identifying Our Purpose for the Collection, Use or Disclosure of Personal Information

Before or when we collect information about you, we will explain how we intend to use it. MMFI collects personal information only for the following purposes:

• to provide ongoing customer service to our policyholder;
• to help us understand our customer's needs better;
• to develop, enhance, market or provide insurance products and services;
• to enable us to underwrite your policy of insurance and set a fair premium;
• to provide us with the information that we need to adjust a claim in a fair and expeditious way;
• to meet our legal and regulatory requirements under the Insurance Act and other statutes.

Unless we are required by law, MMFI will not use or disclose any personal information that has been collected without documenting the new purpose and obtaining your consent. If you have any questions about these purposes, our privacy officer will be pleased to explain them to you.

Principle #3: Obtaining Your Consent for the Collection, Use or Disclosure of Personal Information

MMFI will make a reasonable effort to make sure that our policyholders understand and consent to how their personal information will be used by the Company.

We will obtain your consent if we need to use your information for any other purpose and before collecting information from third parties such as other insurers and insurance service companies.

In certain circumstances, however, personal information may need to be collected, used or disclosed without the knowledge and consent of the individual. For example, legal, medical, or security reasons may make it impossible or impractical to seek consent.

The PIPEDA recognizes that when information is being collected for the detection and prevention of fraud or for law enforcement, seeking the consent of an individual may defeat the purpose of collecting the information. Seeking consent may also be impossible or inappropriate when the individual is a minor, seriously ill, or mentally incapacitated.

In obtaining your consent, we will always use reasonable efforts to ensure that you are advised of the identified purposes for which any personal information collected will be used or disclosed.

Principle #4: Limiting Our Collection of Personal Information

We will always limit the collection of personal information to that which is necessary for the identified purposes. Typically, this is information that is required to enable us to underwrite your policy of insurance and charge a fair premium. We may need to collect personal information from other sources including credit bureaus.

Under certain circumstances we need to collect information to assist us in adjusting or investigating a claim. This may involve the use of licensed and regulated independent insurance adjusters or investigators. We will always collect personal information by fair and lawful means.

Principle #5: Limiting the Use, Disclosure and Retention of Personal Information

Personal information will not be used or disclosed for purposes other than for which it was collected, except with your consent or as permitted or required by law. Your personal information will be retained only as long as it is necessary to fulfill those purposes.

MMFI may disclose a customer's personal information to the following organizations:

• Another insurance company for the reasonable provision of insurance services. This may include another insurance company that is subscribing to the risk insured under our policy.
• Another person or corporation as part of conducting business. This may include a reinsurance company, subject to that corporation agreeing to manage personal information in accordance with these privacy principles;
• A person or corporation that is involved in supplying us with claims support services. This may include a licensed independent insurance claims adjuster or investigator, or a fire or forensic expert or engineer.
• A medical or rehabilitation specialist or assessment clinic that is providing an opinion to us pursuant to our rights and obligations under the Insurance Act.
• A company or an individual employed by MMFI to perform data processing, accounting, actuarial or statistical functions on our behalf;
• A person or corporation involved in the development, enhancement, marketing or provision of our insurance products and services. This may include an insurance broker or agent.
• An agent used by MMFI to evaluate your creditworthiness or to collect an outstanding account. This may include credit grantors and reporting agencies;
• A public authority or agent of a public authority, if the information is required to comply with a provincial or federal statute or regulation.
• A law enforcement agency, where our policyholder consents to such disclosure or disclosure is required by law or emergency.

MMFI does not provide or sell its customer lists to any outside company for use in marketing or solicitation. Only employees with a business "need to know", or those whose duties require it, are granted access to personal information about our policyholders.

We keep personal information only as long as it remains necessary or relevant for the identified purposes or as required by law. Personal information that is no longer necessary or relevant for the identified purposes or required to be retained by law is destroyed, erased or made anonymous.

Principle #6: Keeping Your Personal Information Accurate

MMFI makes every effort to ensure that personal information about its policyholders is as accurate, complete, and up-to-date as is necessary for the purposes for which it was collected.

This may require contact with your insurance broker to confirm or update personal information required for underwriting purposes. In addition, the Insurance Act and the terms and conditions of your policy of insurance may require you to notify us of material changes to your personal information. If you have any questions about the accuracy and completeness of the personal information that we have collected or retained, please do not hesitate to contact our privacy officer. If you need to update some aspect of your personal information, please contact your insurance broker or agent directly.

Principle #7: Safeguarding Your Personal Information

MMFI takes steps to protect personal information with security safeguards appropriate to the sensitivity of the information.

Specifically, we have stringent security measures in place to protect personal information against such risks as loss or theft, computer hackers, unauthorized access, disclosure, copying, use, modification or destruction.

MMFI protects your personal information regardless of the format in which it is held. We also protect personal information we disclose to third parties by contractual agreements stipulating the confidentiality of the information and the purposes for which it is to be used.

All our employees with access to personal information are required as a condition of their employment to respect the confidentiality of personal information.

Principle #8: Openness Concerning our Privacy Practices

MMFI pursues a policy of openness about the procedures it uses to manage personal information. We will make specific information about our policies and practices relating to the management of their personal information available to policyholders upon request.

We ensure openness by providing you with the following information:

• the title and address of the privacy officer accountable for our compliance with the policy;
• the name of the individual to whom inquiries or complaints can be forwarded;
• the means of gaining access to personal information held by our company; and
• a description of the type of personal information held by the MMFI, including a general account of its use.

MMFI makes information available to help our policyholders exercise informed choices regarding the use of their personal information.

Principle #9: Policyholder Access to Personal Information

MMFI informs its policyholders of the existence, use, and disclosure of their personal information upon request and provides access to that information. Our customers are able to challenge or correct the accuracy and completeness of their personal information and have it amended when appropriate.

When a request is made in writing, we will inform you in a timely fashion, of the existence, use, and disclosure of your personal information and you will be given access to that information. In order to safeguard your personal information, we may require you to provide sufficient identification information to permit us to authorize access to your file.

In certain exceptional situations, we may not be able to provide you with access to all of the personal information we hold. Exceptions may include information that is prohibitively costly to provide, information that contains references to other individuals, information that cannot be disclosed for legal, security or commercial proprietary reasons, information that is subject to solicitor-client or litigation privilege, or, in certain circumstances, information of a medical nature. If this is the case, the MMFI will provide the reasons for denying access upon request.

Policyholders can obtain information or seek access to their individual files by contacting our designed privacy officer at the address described below.

Principle #10: Challenging Compliance

A policyholder has the right to challenge MMFI's compliance with the above principles by contacting the privacy officer accountable for our compliance with the policy.

MMFI maintains strict procedures for addressing and responding to all inquiries or complaints from its customers about its handling of personal information. We inform our customers about our privacy practices as well as availability of complaint procedures, if necessary.

Our privacy officer will investigate all complaints concerning compliance with the privacy policy. If a complaint is found to be justified, we will take appropriate measures to resolve the complaint including the amendment of our policies and procedures.

In exceptional circumstances, the privacy officer accountable for compliance with our privacy policy may seek external legal advice where appropriate before providing a final response to individual complaints.

For Further Information

For more information, please contact our privacy officer directly through our Websites or by calling the Toll-free number.

If you make an inquiry or lodge a complaint, and are not satisfied with the outcome of that, you may challenge that outcome by writing a letter to our Chief Executive Officer, requesting reconsideration. If your concern remains unresolved to your satisfaction, you may address your concerns to the:

    Financial Services Commission
    6th Floor, 1919 Saskatchewan Drive
    Regina Saskatchewan
    S4P 3V7

Copyright 2003, Canadian Association of Mutual Insurance Company (CAMIC) Association canadienne des compagnies d'assurance mutuelles (ACCAM)

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