2023 CLIA Annual Report – Message From the CEO
The 2023 CLIA Annual Report can now be found on the CLIA website. The following message is from Dave Jackson, CEO.
Looking back on 2023, I can certainly say it was another busy year. Amidst the hustle and bustle, there were several standout moments worth sharing with you.
The Board continued their journey in 2023 becoming more strategic in their governing approach. The Board’s focus again this year was on identifying emerging issues (risks) that required attention or mitigation strategies and ensuring that CLIA has appropriate policies in-place and that they are up to date. This strategic approach helps to ensure that CLIA is in a strong position to manage risks and continue providing value to Subscribers.
I would like to thank the Board for their exceptional support and collaboration this year.
This was again a busy year for the CLIA Committees. There are four Committees made up of Board members and Insurance Directors. CLIA’s network of Committees is a fundamental way of keeping Subscribers aware of the activities of CLIA and utilizing the members expertise to move initiatives forward within CLIA.
Special thanks to all the Committee members for the time that you devote to working on CLIA Committees.
Throughout 2023, we remained committed to ensuring the satisfaction of our Subscribers. I'm delighted to share the results of our recent Subscriber satisfaction survey, which yielded overwhelmingly positive responses. The majority of respondents expressed either satisfaction or high satisfaction with CLIA's programs. The survey results also emphasized that the quality of Subscriber experiences with both the CLIA Board and staff either meets or exceeds their expectations. As always, I want you to know that Subscriber satisfaction will continue to be at the heart of what we do.
In 2023, CLIA welcomed Melanie Hodges Neufeld, Policy and Communications Advisor to our team. Melanie's arrival has been a very positive addition to CLIA, amplifying our ability to craft effective communications and advance loss prevention strategies tailored to the needs of our Subscribers. Her expertise has empowered us to stay ahead of the curve, identifying and tackling emerging issues. If you haven't had the chance yet, we invite you to explore and share our newly launched CLIA blog with your fellow members—it's a testament to our commitment of keeping you informed and connected.
CLIA and its Subscribers embarked on a significant initiative in 2023 to revamp the Claims Manager System. This important project is all about ensuring that Subscribers are on a secure and well-supported technology platform. Not only will this enhance security, but it will also streamline how information is shared with the CLIA head office, paving the way for greater efficiencies. The project is expected to complete in 2024.
You'll notice some substantial changes in how our 2023 financial statements are reported compared to previous years. It's the result of an intense three-year journey culminating in our successful transition to International Financial Reporting Standard 17, an accounting standard that transformed how we are required to report on insurance contracts. With the adoption of IFRS 17, we saw a one-time boost in our financial surplus, mainly due to adjustments in how we value claims liabilities. I'm grateful to each member of our team whose hard work and dedication made this transition a success.
With finance on the mind, I am happy to report the overall CLIA operating budget finished the 2023 fiscal year just under budget. The Board approved budget for 2023 was $2,580,500 and the actual spend was $2,419,993 an underspend of $160,507. The main reason for the under-spend was the deferral of $120,000 in depreciation costs for the Claims Manager System into 2024, coinciding with the expected readiness of the system for use. Despite the under-spend, CLIA is noticing inflationary cost pressures mainly in travel expenditures (e.g., flights, hotels, meals, etc.) Looking forward, the 2024 board approved budget is increasing by 4.5% mainly to account for inflationary price increases.
An important aspect of my job managing the investment of Subscribers' funds. The CLIA investment portfolio yielded returns of 4.92% in 2023. These positive returns were driven by improved bond values due to favorable economic indicators and signs of slowing inflation, alongside robust performance in equity markets, particularly in technology stocks buoyed by artificial intelligence trends. Despite aiming to surpass investment benchmarks, CLIA's investment manager fell short, trailing benchmarks in 2023 and on a since inception basis. CLIA engaged a third-party investment expert for a comprehensive review, revealing that, despite the underperformance, the investment managers are generally meeting objectives. CLIA remains vigilant in monitoring investment manager performance closely.
CLIA’s financial position remains strong. CLIA’s Minimum Capital Test (MCT), improved from 335% in 2022 to 341% in 2022, which is above targeted levels. The MCT is the industry standard measurement for capital adequacy.
In closing, I would be remis if I didn’t take a moment to recognize and thank our outgoing Board Chair and Board Member, Allan Fineblit, who’s calm demeaner and firm hand has held the rudder steady for the last four years as CLIA’s Board Chair. Allan joined the CLIA Board in July of 2015, and his nine (9) year term will end on June 20, 2024.
I look forward to continuing to build relationships with both the Subscribers and the CLIA Board. Our goal has always been to ensure that we provide the appropriate amount of communication to Subscribers on the major activities of the office throughout the year.