Stem the flow: Reversing economic leakage from Indigenous communities

By Geoff Kirbyson for Manitoba Inc. Magazine


Nathan Ballantyne would like to challenge Indigenous leaders across the country to reverse economic leakage from their communities. The CEO of the TIPI Group of Companies, a Winnipeg-based conglomerate with subsidiaries in insurance, human resource management and reconciliation training, says his challenge represents a more than billion-dollar opportunity.


Economic leakage occurs when money earned inside a community or jurisdiction flows to outside service providers. It’s impossible to calculate the extent of leakage from all First Nations across the country but Ballantyne says in the insurance industry alone, “millions and millions” of dollars in fees and commissions are paid out to non-Indigenous providers.


“Indigenous communities suffer the worst economic leakage in the country. We’re making a small dent in that to change the story, but we have a long way to go,” he says.


Ballantyne believes the average Canadian thinks First Nations receive billions of dollars in federal funding, but they can’t understand why their communities aren’t more prosperous. While there’s no denying the initial capital flows, he says money in First Nations doesn’t circulate in the same way as it does elsewhere in Canada.


In non-First Nations communities, money changing hands between consumers, businesses and service providers circulates three to five times before it goes elsewhere, he says.


“Typically, a dollar comes in (to First Nations) and 90 cents flows directly to outside businesses, including consultants and lawyers. It doesn’t circulate. There isn’t the same infrastructure. If the average Canadian community sees a dollar circulate two to three times, it’s a fraction of that in Indigenous communities,” he says. “The way to change that is have those dollars change hands more times within the community. That’s a guiding principle of why our company exists.”


Indeed, preventing economic leakage is one of TIPI’s primary focuses and permeates virtually everything the company does through its value chain.


“When we do business with suppliers, we look at who we’re using to buy our jackets and our swag. We want to use Indigenous companies and people. That’s the core of who we are,” he says.


On the company’s group insurance and group pension business, TIPI has moved further up its value chain. In the traditional model, a broker would ask large insurance providers for quotes. TIPI has taken steps to become its own middleman, collecting premiums and paying insurers.


“That gives us more power and control to be able to challenge the status quo,” he says.


One problem that Ballantyne sees in the Indigenous economy is the notion that each business should be community owned. That’s not how things work in the greater Canadian economy, where most successful businesses were started by entrepreneurs. He believes the Indigenous economy should be a mix of both.


Employees at community-owned enterprises don’t have the same incentives to provide exemplary services as their entrepreneurial brethren, he says.


“If the City of Winnipeg owned a gas station, would employees care if the pumps were full and could gas up their customers? It’s different when you’re an entrepreneur. You’d say, ‘I’m going to make damn sure there’s gas and we ensure every customer’s windows are clean. We haven’t got that right yet,” he says.


TIPI is constantly on the lookout to do things differently than they’ve been done traditionally and that’s contributing to less leakage.


“We’re insuring communities’ land claims with the federal government. If they’ve got an unsettled land claim, it’s expensive to hire researchers and lawyers to fight the government. We’ve built a new insurance model that will insure those costs and give the community access to a line of credit and access to capital. That’s all instead of paying a non-Indigenous law firm millions of dollars,” he says.


Perhaps the quickest way Indigenous businesses can start to reduce economic leakage is simply to be aware of their landlord. Ballantyne says TIPI does its best to ensure its subsidiaries hang up their shingle in urban reserves. For example, its head office is located in the Indigenous-owned Peguis Business Centre on Portage Avenue.


TIPI’s shareholders ensure that its millions of dollars in profits stay in its communities for as long as possible.


“The story is changing. Ten or 15 years ago, it was tough to find an Indigenous marketing firm or an Indigenous law firm. Today, there are a ton of bright, educated Indigenous people across the country who are waiting to be engaged to build their businesses and be successful,” he says.


December 23, 2024
The innovative wholesale pension plan model is central to TIPI’s strategy, which optimizes financial savings through low investment management fees, leveraging its Indigenous identity. This unique approach fosters savings and champions independence within the framework of a collaborative plan design, offering its clients the best of both worlds. TIPI’s group insurance plans are dedicated to empowering its First Nations clients with industry-specific knowledge, fueling proactive conversations, and inspiring healthier lifestyles within communities. The company offers the TIPI Care Plan, which distributes different benefit lines across multiple insurance carriers as part of its commitment to personalized services. The TIPI Care Plan exemplifies personalized service by offering comprehensive benefits across multiple insurance carriers, ensuring affordability by offering the lowest possible rates per benefit line, and addressing critical health challenges, including substance management and the national doctor shortage. It has partnered with a program based in British Columbia to offer clients substance management services virtually, removing barriers and stigma associated with seeking help. TIPI provides access to healthcare providers with top-notch care, and members can access these services discreetly from their homes or during their lunch breaks in the office. In 2020, TIPI Group of Companies embarked on a strategic expansion, signifying its commitment to addressing the complexities of human resources by acquiring Legacy Bowes, a renowned HR consulting firm. This acquisition marked a milestone in TIPI’s journey toward enhancing its service offerings and underlining its dedication to meeting its clients’ evolving HR needs. Understanding the pivotal role of human resources in organizational success, TIPI introduced Legacy Bowes’ HR-On-Call service to clients on the TIPI Care Plan. This initiative provides plan administrators indispensable guidance, ensuring that clients receive the tailored support necessary to navigate the intricacies of human resource management effectively. Illustrating its commitment to talent’s professional growth and development, TIPI provides access to Legacy Bowes’ meticulously developed leadership and development training programs alongside executive search and recruitment services designed to nurture talent and promote organizational growth. Among these initiatives, its training division proudly offers a ‘Lateral Violence to Lateral Kindness’ program and Truth2Action: Reconciliation for Business, a truth and reconciliation awareness program, overseen by dedicated vice presidents. Beyond pension and benefits, TIPI operates another line of business in the property and casualty division, prioritizing Indigenous employment. This division extends comprehensive services from property coverage and community asset protection to commercial liability and Directors & Officers insurance. This positions TIPI as a distinguished brokerage that helps its clients manage risks and protect their most valuable assets. Recognizing the power of data, TIPI implemented its own CRM program to collect valuable data such as resolved claims, outstanding claims, and any complaints received. This data collection is essential to better-serving clients. TIPI believes in the power of teamwork when it comes to serving its clients. Its team members come from diverse insurance backgrounds, providing prompt and knowledgeable client assistance. 100 percent of TIPI’s pension and benefits team of nine brokers identify as First Nation, reflecting its dedication to supporting and providing opportunities to Indigenous professionals. TIPI’s personal care for its clients and plan members cannot be overstated. In one instance, the company assisted a member who had tragically passed away in an accident. During this challenging time, TIPI personally helped facilitate the accidental death claims and pension claims processes. This involved the timely completion of claim forms, liaising with the medical examiner’s office to submit the necessary information to the carrier, and advising the client on managing the funds received. Additionally, the company guided the widow in handling the remaining pension assets. TIPI’s pension and benefits division is a testament to its expansive reach. By prioritizing the empowerment of its members and fostering strong relationships with First Nation partners, TIPI expands its presence across the country and champions a more inclusive and informed approach to retirement planning and benefits management. This article was original published in the Top Benefits Administration Services Providers in Canada 2024 by Manage HR Magazine.
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