Political Power Brokers

George Hodgson, the incoming CEO of the Insurance Brokers Association of Alberta (IBAA), has witnessed a turning tide when it comes to Canada’s political landscape and the business environment in general. He plans to use his experience in politics and community service to help steer Alberta’s broker channel through the changes.

Hodgson was born and raised on a small farm north of Edmonton. Roughly 30 years ago, he felt the pull of Edmonton’s bright lights and has made the city his home ever since. He and his wife Irene have raised four sons: James, William, John and Joseph.

Hodgson completed a Bachelor of Commerce degree at the University of Alberta. He also holds a Certified Fraud Examiners designation.

Hodgson started his career working for a large accounting firm, and subsequently handled the financial reporting for a medium-sized building supplies company. Prior to joining IBAA, he spent 13 years at the Canada Revenue Agency as a forensic accountant and a fraud investigator.

The Move to Insurance

Looking at his résumé, moving to the IBAA doesn’t necessarily seem like an obvious transition on his career path. Hodgson indicates his extra-curricular activities helped steer him towards the independent broker channel.

“I don’t have an insurance background, but I have been very involved with a number of non-profit organizations,” he says. “I also have a passion for politics and have been a political organizer in Alberta for more than 25 years – mainly at the federal and provincial levels and, to a lesser extent, at the municipal level.

“I tell everyone I answered an ad that I almost dismissed, and the IBAA interviewed someone whose résumé they nearly tossed out,” he jokes.

The IBAA hired Hodgson roughly one year ago to handle the association’s government relations. At the same time, the IBAA’s then-CEO Harold Baker was working on a succession plan, since his (second) retirement loomed on the horizon.

The fit has been fantastic, Hodgson says. “I thoroughly enjoy the organization that I work for,” he says. “I enjoy all of the people. It’s a very dynamic group. I’ve learned that insurance is a very dynamic field. Every day is a new day that brings new opportunities and new challenges.”

Hodgson has a great deal of experience and expertise working through complex tax law, in addition to honed investigation skills. Even so, he says his largest adjustment has been to grasp the overall complexity of the insurance field.

“The learning curve here was incredibly steep,” he says. “I tell everyone that I was worried about falling off of the curve for the first two months. Now I can feel that I have my feet on the ground, but there’s still a lot more to learn. I think if we did this interview 10 years from now, I would probably tell you I’m still learning new things about this industry.”

The seasoned politico also had to learn the IBAA’s grassroots approach to government relations. “A lot of organizations have a government relations or public affairs expert, and that person is the major contact person with the politicians and the government,” he says. “In this case, the lobbying effort is done by the brokers in each community, in the federal and provincial constituencies.

“This approach makes it a very powerful lobby force, both nationally and provincially. Within the IBAA, the government relations officer, which for the past year has been me, quarterbacks the lobby efforts. But this is not necessarily the person who is front-and-centre. That is somewhat unique.”

Building relationships

As Hodgson prepares to take on the role of CEO, effective July 1, a new federal government is settling in as well. For the first time in five years, Canada has a majority government. While some suggest this new status creates stability, it also allows the governing Conservative party free rein to enact its agenda at a much quicker pace than if they had a minority government standing.

“While the general population may view [this] as [a situation] of increased stability, from our point of view, it’s viewed as something new,” Hodgson says. “We have to ensure that the brokers’ issues and the brokers themselves remain at the forefront of the politicians’ minds. It’s a little different thing to manage.”

Hodgson notes the opposition party is new. In addition, a large number of new MPs will be entering the House of Commons. This means brokers have a lot of new relationships to build.

“It’s my philosophy, and the philosophy of IBAA, that we need to build the relationship before we talk about our issues,” Hodgson says. “You do that through community involvement.”

For example, IBAA sponsored Victims Services in Alberta, an organization held in high regard by both brokers and politicians. On the basis of these types of initiatives, politicians will see brokers doing things that benefit their communities, laying a foundation of respect on which to build a relationship.

“Quite frankly if every time you go to your local politician with a problem, a complaint or an issue, then they may get tired of hearing from you,” Hodgson says. “If we establish that relationship first, then, when we do come to them with our issues, it is much easier to get them to listen to us and to consider our issues, even if they don’t agree with us.”

The Bank Act review, scheduled for completion in April 2012, heightens the need for those relationships, he adds.

Prior to the May 2, 2011 federal election, all federal parties agreed with Finance Minister Jim Flaherty’s proposal to restrict banks’ ability to market or sell insurance from their banking Web sites, essentially equating the Web sites with branches. “We need to make sure that remains the case,” says Hodgson.

On the provincial front, the New West Partnership Trade Agreement, an agreement between the Alberta, British Columbia and Saskatchewan governments, remains a key issue. Previously the agreement was between Alberta and B.C. only, and known as the Trade, Investment and Labour Mobility Agreement (TILMA). When Saskatchewan entered the fold, it was expanded to the NWPTA.

Regarding the NWPTA, the key issue for Alberta brokers is the fact that in B.C. and Saskatchewan, credit unions are able to sell insurance from their branches, whereas it’s prohibited in Alberta.

“We would like it to stay that way,” says Hodgson. “We need to ensure that there is a level playing field and that things stay the way they are in that respect. We support free trade, as long as it is fair trade. “We believe that credit unions retailing insurance through their branches is not in the best interest of consumers.”