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Fraternal Benefit Societies in the
21st Century
 Once
upon a time...
It has been four years since I was appointed
President and CEO of Teachers Life and I thought I'd
take this opportunity to reflect on the organization
as well as the larger world of fraternal benefit
societies. The history of Teachers Life
parallels many other fraternals both here in Canada
and south of the border in the U.S.
I have had the opportunity to get to know a little
more about the fraternal movement, past and present,
during my time at Teachers Life. In addition
to my duties here I am currently the President of
the Canadian Fraternal Association (CFA). The
CRA represents domestic companies and foreign
fraternals and has an associate membership status
with the National Fraternal Congress of America
(Teachers Life is one of only two Canadian
fraternals with associate member status).
In addition I am also fortunate to serve on the
Board of the Life Insurers Council out of Atlanta,
an association dedicated to helping out small to
medium size insurers including fraternals.
The fraternal movement is clearly at a cross roads
as organizations try to maintain relevance in a
rapidly changing society. If we go back to the
origins of fraternal societies in Canada they really
began in the late 1800's and were born out the
need/desire to support various groups of people with
a common bond. Many of the fraternals
were based on ethic or religious association and
others by employment. Many fraternals saw
growth until the middle of the twentieth century
when they entered a period of membership decline and
the actual disappearance of a number of societies.
Changing demographics and a rapidly changing society
have challenged remaining fraternal organizations.
There may be a number of reasons for the decline but
it is not unlike the changes that have happened in
the commercial insurance world with consolidation or
organizations and the disappearance of others.
A Reality Check...
In the 1800's the dream of the burgeoning
organizations was to provide comfort in times of
need, and contribute to the overall collective good
of the community. These days, while the focus
remains on the members, fraternal benefit societies
are really insurance companies and are in a market
oriented environment. Income to support
membership is driven by insurance. The move to
be more market driven has been a struggle for some
organizations. In an increasingly regulatory
world of insurance it is not enough just to do good
works. The good works must be supported by
good management and be more market oriented.
The stark reality for organizations to remain
healthy and vibrant is that they must find that
balance between their desire to do 'good works' and
remain competitive in a regulated market place.
Not just a fairy tale...
We are fortunate at Teachers Life that key decisions
made in the last 20 years of our 70 year history
have put us in an advantageous position. Good
corporate governance by the board of directors and a
dedicated staff has put in place practices that, I
believe, meet that balance of being a fraternal
within a competitive market place. Our
fraternal benefits programs range from scholarships,
bursaries and rebates to charitable donations to a
number of causes.
In addition, our staff is involved in fund raising
activities that support the Ontario Literacy
Coalition. The fraternal message is still at
the core of what we do.
Our financial position has never been stronger even
given the recent economic crisis. Information
about our most recent fiscal year end will be
available to members in a number of weeks but I can
tell you that we have surpassed the $50 million mark
in assets and our surplus has exceeded $10 million.
These are not just symbolic milestones; they
represent a strong, safe and secure foundation for
our members. It allows the organization to
grow and consequently strengthens our fraternal
goals, and good works, and our ability to compete in
the market.
Not just a dream...
All fraternal benefit societies must continue to
find innovative and efficient ways to do business to
remain competitive while offering great service and
products. At Teachers Life we are continually
trying to reinvent ourselves to remain relevant and
we have to remind ourselves that the cost of not
investing in change may be the demise of that dream
of our founders over 70 years ago.
-Doug Baker
President & CEO, Teachers Life
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