Saskatchewan Government Insurance

Created in 1945, Saskatchewan Government Insurance (SGI) is a provincial Crown corporation that has evolved over the years into two distinct operations.

The Saskatchewan Auto Fund is the province’s compulsory auto insurance program, operating the driver’s licensing and vehicle registration system. The Auto Fund is financially self-sustaining, operating on a break-even basis over time. It does not receive money from, nor pay dividends to, the government.

SGI CANADA sells property and casualty insurance on properties such as homes, farms, businesses and extra auto in seven Canadian provinces. It operates as SGI CANADA in Saskatchewan, SGI CANADA Insurance Services Ltd. in Manitoba and Alberta, the Coachman Insurance Company in Ontario and as a major partner in the Insurance Company of Prince Edward Island in Nova Scotia, New Brunswick and Prince Edward Island.

History

SGI Head Office in downtown Regina, Saskatchewan, Canada

SGI was created by the first avowedly socialist government in North America elected in 1944, the Co-operative Commonwealth Federation (later renamed New Democratic Party). Under Premier Tommy Douglas, the government began to involve itself in many sectors of the economy, including insurance. The rationale was put forth that Saskatchewan residents were being taken advantage of by companies owned outside the province who set rates too high. Also, at least 90 per cent of the insurance in the province was written by companies established in Eastern Canada^[1].

Thus the institution of a publicly-owned insurance company was justified by the government on both philosophical and economic grounds.

Working out of the Saskatchewan Legislative Building, Michael Allore, SGI’s first president, sold the first policy – Fire Policy Number 1 – to Minister O.W. Valleau on May 1st, 1945 and appointed the first broker, Oscar Sawby of Maple Creek, on May 17th.

By the end of 1945, SGI had 60 employees and a small network of private, independent insurance brokers located across the province selling insurance on behalf of the corporation.

Corporate governance

SGI and SGI CANADA are governed by The Saskatchewan Government Insurance Act, 1980, and The Automobile Accident Insurance Act, and are subject to the provisions of The Crown Corporations Act, 1993, which gives the Crown Investments Corporation of Saskatchewan (CIC), the holding company for Saskatchewan’s commercial Crown corporations, the broad authority to set the direction of the Corporation.

Where required by legislation or policy directive, SGI submits performance management and investment decisions for review and approval by CIC and the provincial cabinet. Through its Chair, who is an outside director, the SGI Board of Directors is accountable to the Minister Responsible for SGI. The Minister functions as a link between the Corporation and CIC and cabinet, as well as the provincial legislature.

Board of Directors

SGI’s Board of Directors is responsible for setting direction, monitoring and reporting achievement, and analyzing, evaluating and taking corrective action for the corporation. The Board is responsible for the stewardship of the corporation in general terms. In meeting this responsibility, the Board works with management to develop and approve the corporation’s strategic plan, operating goals, annual budget and business plans. It participates in identifying business risk and overseeing the implementation of appropriate systems to achieve a balance between the risks incurred and potential returns.

SGI’s Board of Directors is appointed by the Lieutenant Governor in Council. The Board consists of ten external directors and one director appointed as representative of the Canadian Office and Professional Employee's (COPE) union. Both the Chair and Vice-Chair of the Board are external directors.

Structure and functions

SGI employs approximately 1,700 people and works with a network of almost 300 independent insurance brokers and about 450 motor licence issuers in Saskatchewan, as well as numerous brokers in Alberta, Manitoba, Ontario, Prince Edward Island, New Brunswick and Nova Scotia.

SGI's head office is in downtown Regina, Saskatchewan. The corporation also operates 20 claims centres in 13 Saskatchewan communities and has a branch office in Winnipeg.

In addition, SGI operates five Salvage branch offices across Saskatchewan that recycle and sell used vehicles, auto parts and general items.

External links

• Saskatchewan Government Insurance
• SGI CANADA
• Insurance Company of Prince Edward Island
• Coachman Insurance Company
• COPE Local 397
• Crown Investments Corporation of Saskatchewan (CIC)

References

1. ^ Clark, D.; Dyck, J. (1995). "Introduction". Celebrating our 50th Year: A History of Saskatchewan Government Insurance: 6. 

Donate to Wikimedia