Book 4 - Appraisal Institute of Canada
Book 4 - Appraisal Institute of Canada Book 4 - Appraisal Institute of Canada
NominatingVolunteer skill setsmake committees effectiveSheila Young, AACI, FellowChair, Nominating CommitteeThe Nominating Committee is the leadershipdevelopment committee of theAppraisal Institute of Canada (AIC). Ithelps the Institute achieve its goals, and providesnetworking opportunities and personal developmentfor members.AIC is blessed with many great volunteers;people who give their time to help the profession.Volunteers do that through a variety ofactivities, often sitting on national AIC committees.The national committees have termsof reference which are approved by the Boardand which detail the number of members onthe committee and the length of time a volunteercan serve on the committee. The terms ofreference are in place to provide guidance to thecommittees.‘Volunteer Corner’ is on AIC’s website athttp://www.aicanada.ca/cmsPage.aspx?id=245This section of the website lets you know theknowledge and skills AIC committees require oftheir members, and tells you how to submit anexpression of interest. Some committees, likeInvestigating or Adjudicating, require expertappraisers from all sectors of the profession.Others, like Learning Advisory or Marketing andCommunications, are looking for experience incourse development or marketing a small business;skills that you may have developed outsideof your work as a valuation professional. There isa volunteer opportunity in AIC that fits your skillsand abilities and provides you with a chance tonetwork and grow.In the spring, the Nominating Committeereviews the expressions of interest submittedby members; matching volunteers to vacancies.The Nominating Committee asks the Board toapprove the volunteer selections at the JuneBoard meeting.New this year is the 360-degree evaluation.Committee members and committee chairs willbe asked to evaluate the effectiveness of theircommittee, to comment on their experiences,and to offer suggestions for improvement.By putting yourself at the forefront of theAIC’s advocacy, policy initiatives and other importantwork, you will open the door to invaluablenetworking opportunities while honing yourleadership, teamwork and communications skills.The advantages of active AIC participationare far reaching. You will not only be benefitingyourself, but also your firm and the profession inwhat amounts to a win-win-win arrangementfor everyone involved.Nominating CommitteeSheila Young, AACI, Fellow – ChairGrant Uba, AACIDan Jones, AACIRobert Tipple, AACI, FellowGeorge Semine, AACIGeorge Ward, AACITo contact this committee, emailnominating@aicanada.ca34Canadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au Canadaclick here to return to table 0f contents
InsuranceThe ProfessionalLiability Insurance ProgramIt is that time of year again when AppraisalInstitute of Canada (AIC) members receivetheir professional liability insurance invoicesfor the 2011 policy year. This usually raises a lotof questions from the membership about theinsurance program and how it is working.The AIC’s professional liability insurance providesmembers with protection against claimsresulting from any errors and omissions madein the rendering of professional services.As defined in the policy, professionalservices means real estate appraisal services,including opinions and/or counselling whichmembers are qualified and authorized by theInstitute to provide. This includes real propertyappraisals and related consulting servicesthat are defined within the Canadian UniformStandards of Professional Appraisal Practice.The insurance policy is provided byTravelers Guarantee Company of Canada andreinsured through First Professional LiabilityInsurance Company, a wholly owned subsidiaryof the Institute.The policy provides members with up to $2million per claim in the aggregate annually andhas an annual member aggregate claim limit of$20.5 million.Why mandatoryThe Institute’s professional liability insuranceprogram is mandatory for all active members. Themandatory nature of the program makes it costeffective and enables members to benefit fromeconomies of scale. Moreover, as a true memberinsurance program, it guarantees coverage for allmembers in good standing. No member in goodstanding can be denied insurance as is the case withother types of insurance programs. The programstrives to promote high quality practice standardsand implement effective claims prevention andmanagement strategies to keep insurance costs low.Costs and claimsInsurance premiums are actuarially determinedand reflect historical and forecast claims andother risk factors. In recent years, as a result ofthe downturn in the real estate market, both thenumber and severity of claims has increased substantially.The multi-year trend is shown belowand it has had a significant negative impact onthe insurance program, requiring an increase ininsurance premiums to the members.The increase for 2011 has been held to anaverage of about 10% for all member categories.It is important to note that, notwithstandingthis increase, the insurance levies in 2011 arelower than they were in both 2003 and 2004.Overall, the average annual increase across allmember categories has been 2.2%.For further information, please go to themembers’ section of the AIC website http://www.aicanada.ca/cmsPage.aspx?id=100$3,500Insurance Levies by Member Category$3,000$2,500$2,000$1,500$1,000$500$02003 2004 2005 2006 2007 2008 2009 2010 2011AACI CRA CANClaims and Severity by Year70605040$160,000$140,000$120,000$100,000*2010 Data incomplete $80,00030$60,000201002003 2004 2005 2006 2007 2008 2009 2010$40,000$20,000$0$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Average Claim Cost Number of ClaimsCost of Claims2003 2004 2005 2006 2007 2008 2009 2010We asked the insurance program’s actuary about the program’s performance:What has been the trend over the last seven years? Claim severity has increased significantly and that is the reason why premium increases have been necessaryHow have the claims been distributed by member class? Claims have increased across all member classes.How does the increased number of claims in our industry compare with other professions? The amount of claims in your industry is cyclical and highly correlatedwith the real estate market. Currently, your industry is hard hit by E&O claims.Can we expect the premiums to go up again in the next few years? This trend will continue, unless the real estate market has a sustained recovery.click here to return to table 0f contentsCanadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au Canada 35
- Page 3 and 4: CRAL2010$599 *The Appraiser’s Cho
- Page 5 and 6: Published by theVolume 54, Book 4,
- Page 7: “Our membership is aging and the
- Page 16: RAPPORT du Chef de la directionDeme
- Page 20 and 21: Member profileFrom appraiser to ass
- Page 22 and 23: Volunteer RecognitionCommitment and
- Page 24 and 25: InternationalProfessional Developme
- Page 26: Evolving the AIC brandThe Appraisal
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- Page 37 and 38: Peer ReviewThe future of peer revie
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- Page 41 and 42: AdjudicatingThe Standards revisited
- Page 43 and 44: Learning AdvisoryBy Larry Dybvig, A
- Page 46 and 47: Designations/Candidates/StudentsAIC
- Page 48 and 49: Annual ConferenceOF THE APPRAISAL I
- Page 50 and 51: Calendar of EventsAICBC2011 Annual
- Page 52: ACI365CompleteAppraisalOfficeManage
NominatingVolunteer skill setsmake committees effectiveSheila Young, AACI, FellowChair, Nominating CommitteeThe Nominating Committee is the leadershipdevelopment committee <strong>of</strong> the<strong>Appraisal</strong> <strong>Institute</strong> <strong>of</strong> <strong>Canada</strong> (AIC). Ithelps the <strong>Institute</strong> achieve its goals, and providesnetworking opportunities and personal developmentfor members.AIC is blessed with many great volunteers;people who give their time to help the pr<strong>of</strong>ession.Volunteers do that through a variety <strong>of</strong>activities, <strong>of</strong>ten sitting on national AIC committees.The national committees have terms<strong>of</strong> reference which are approved by the Boardand which detail the number <strong>of</strong> members onthe committee and the length <strong>of</strong> time a volunteercan serve on the committee. The terms <strong>of</strong>reference are in place to provide guidance to thecommittees.‘Volunteer Corner’ is on AIC’s website athttp://www.aicanada.ca/cmsPage.aspx?id=245This section <strong>of</strong> the website lets you know theknowledge and skills AIC committees require <strong>of</strong>their members, and tells you how to submit anexpression <strong>of</strong> interest. Some committees, likeInvestigating or Adjudicating, require expertappraisers from all sectors <strong>of</strong> the pr<strong>of</strong>ession.Others, like Learning Advisory or Marketing andCommunications, are looking for experience incourse development or marketing a small business;skills that you may have developed outside<strong>of</strong> your work as a valuation pr<strong>of</strong>essional. There isa volunteer opportunity in AIC that fits your skillsand abilities and provides you with a chance tonetwork and grow.In the spring, the Nominating Committeereviews the expressions <strong>of</strong> interest submittedby members; matching volunteers to vacancies.The Nominating Committee asks the Board toapprove the volunteer selections at the JuneBoard meeting.New this year is the 360-degree evaluation.Committee members and committee chairs willbe asked to evaluate the effectiveness <strong>of</strong> theircommittee, to comment on their experiences,and to <strong>of</strong>fer suggestions for improvement.By putting yourself at the forefront <strong>of</strong> theAIC’s advocacy, policy initiatives and other importantwork, you will open the door to invaluablenetworking opportunities while honing yourleadership, teamwork and communications skills.The advantages <strong>of</strong> active AIC participationare far reaching. You will not only be benefitingyourself, but also your firm and the pr<strong>of</strong>ession inwhat amounts to a win-win-win arrangementfor everyone involved.Nominating CommitteeSheila Young, AACI, Fellow – ChairGrant Uba, AACIDan Jones, AACIRobert Tipple, AACI, FellowGeorge Semine, AACIGeorge Ward, AACITo contact this committee, emailnominating@aicanada.ca34Canadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au <strong>Canada</strong>click here to return to table 0f contents
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