The Ontario Broker - Volume 23, Issue 3 - 18

Cover Story
SASKATCHEWAN
Derek Lothian, President & CEO
Insurance Brokers Association of Saskatchewan (IBAS)
Unique Challenges
The dynamics of the Saskatchewan marketplace are
fundamentally different than any other province or territory in
Canada. We're one of the North American jurisdictions with a
Crown-owned insurance company that participates in segments of
the P&C sector other than auto. This, coupled with the distribution
of public auto coverage primarily through brokerages, has resulted
in some distinct benefits and some unique challenges.
Perhaps the most prominent impact has been the concentration
of premiums. While there are roughly 100 carriers that write
property insurance in Saskatchewan, in 2021, the top three wrote
57% of the entire market. By comparison, the top three insurers
in Alberta wrote less than 27% of the property market that same
year. Given our relative size, that has dissuaded some insurance
companies that are prominent elsewhere in Canada to deploy
capital here, which in turn has limited insurer options particularly
for small, independent brokerages-of which there are many.
IBAS's membership still encompasses 160 unique brokerage
businesses operating in more than 250 different communities
across the province.
Licensing
With a government-owned auto insurance system, there are
nuances to both personal and commercial brokering. That's why
all new brokers in Saskatchewan must complete the educational
requirements to hold a Restricted Auto licence. Within IBAS, this
consists of either the Auto Part I (Basic) course or the SGI New
Issuer Training program, the IBAS Auto Part 2 (Extension) course,
and a bylaws exam. There are also many economically important
industries and risks here that aren't easily placed with traditional
insurers.
We try to treat members of our sister associations like we treat
our own members-and we're pleased to be a concierge for
advice, introductions to council and other educational resources.
So if this is on a broker's radar, feel free to reach out to any of our
staff. Because of how contextually and case-by-case our regulator
tends to view out-of-province credentials, however, we encourage
brokers to reach out directly to the General Insurance Council of
Saskatchewan.
Provincial Roundup
Pending Regulatory Changes
We continue to monitor efforts by the Canadian Insurance
Services Regulatory Organizations (CISRO) to explore the
harmonization of licensing requirements for the P&C insurance
industry. Although IBAS has been supportive of the project as a
means of reducing red tape for interprovincial brokerages, we have
become concerned by what appears to be growing fragmentation
amongst provincial regulators.
Some of that misalignment was evident through the pandemic
when CISRO issued an edict around best terms pricing that was
ultimately adopted by only a few regulators. IBAS has been one
of most vocal organizations in Canada on this file. While we
understand and resonate with why regulators have eyed phasing
out the practice on the composition of subscription policies,
there would be major unintended consequences if not done
slowly, carefully and through the unique lens of the Saskatchewan
marketplace. We've been successful advocating that message and
don't believe there's any imminent action in this province, but it's
something we keep our eye on.
18
Fun Fact: Saskatchewan has
produced more NHLers per capita
than any other province.
Underrated Landmark: The
world-class Remai Art Gallery in
Saskatoon-named a global, can'tmiss
place to see by The New York
Times.
Pop Culture: The music of Colter
Wall, son of former Premier
Brad Wall and one of the best
songwriters to come out of Canada
in the last 25 years-just ask his
most famous fan, Jason Mamoa.
The Ontario Broker
The Ontario Broker - Volume 23, Issue 3

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