Sheila Bautz, Special to the Herald
On June 23, the Saskatchewan Government Insurance (SGI) agency released its 2024-25 Annual Report.
The SGI report detailed a fiscal year demonstrating a continual commitment to community safety, Indigenous focused funding and customer service along with resilience, innovation and strategic investments for Saskatchewan residents. SGI is a subsidiary Crown of the Crown Investments Corporation (CIC) of Saskatchewan.
“In the 2024-25 fiscal year, over $1 million was allocated to 123 sponsorships, emphasizing safety, security and diversity. Among these initiatives were major sponsorships aimed at fostering meaningful partnerships with Indigenous communities and organizations, and advancing the goals of Truth and Reconciliation in Saskatchewan,” stated Jeremy Harrison in the report, the Saskatchewan Minister Responsible for SGI. “A $31,000 partnership with Wanuskewin Heritage Park allowed for free admission every Sunday in August 2024, significantly increasing attendance and offering all visitors the opportunity to explore the rich history and culture of early plains First Nations.”
The provincial SGI agency was founded in 1944 and officially entered the insurance business the next year. At that time, the Government of Saskatchewan passed The Saskatchewan Government Insurance Act, which created the provincial Crown corporation. Since its inception, SGI’s mandate is to provide comprehensive, affordable insurance protection.
In 1980, legislative changes were made to The Saskatchewan Government Insurance Act, 1980, and The Automobile Accident Insurance Act. A distinction was made between SGI and SGI CANADA, which specified that SGI’s Auto Fund is a financially self-sustaining agency operating under a continual financial break-even basis system.
“In 2024-25, SGI faced economic pressures, caused by rising claim costs, inflation, higher vehicle repair costs and extreme weather,” said Minister Harrison. “Despite this, SGI’s strategic investment approach delivered affordable auto insurance rates and an $18.0 million dividend to support our government’s investments in services and infrastructure that benefit Saskatchewan families, communities and businesses.”
The Saskatchewan Government Insurance (SGI) is responsible for offering driver’s licenses, vehicle registrations, auto claims, salvage, and property and casualty insurance. The national SGI CANADA is the competitive side of the corporation and the trade name of the insurance division for the provincial SGI. SGI CANADA offers insurance services and products to five Canadian provinces through independent insurance brokers.
The trade name SGI CANADA operates in Saskatchewan, Alberta, British Columbia, Manitoba and Ontario. In Ontario, the insurance corporation operates as Coachman Insurance Company. SGI CANADA provides extension auto insurance, personal property insurance, business property insurance, farm insurance and property claims.
When it comes to insuring vehicles at the provincial SGI, insurance rates vary depending on the make, model and year of a vehicle. The costs are adjusted utilizing two methods in an effort to balance fairness and charge the correct rate of insurance coverage based on the type of vehicle venturing out on the road. Annually, SGI will adjust rates based on the Canadian Loss Experience Automobile Rating (CLEAR) system. As a result, SGI vehicle licensing will experience an adjustment on the rates as required with a full rate program.
“In 2022, the Government of Saskatchewan approved a significant investment to replace SGI CANADA’s core Information Technology systems,” said Minister Harrison in the report. “This past fiscal year, that investment came to fruition with the successful implementation of SGI CANADA’s new Guidewire platform for policy handling, billing and claims. The new technology will enhance customer and broker services and improve operational efficiencies for the long-term.”
In 2024-25, the SGI Auto Fund reported $1.170 billion in total net claims with $1.127 billion in gross premium written. Another $181.1 million worth of discounts to customers were issued through the Safe Driver Recognition (SDR) and Business Recognition programs. SGI also experienced $257.7 million in investment earnings.
During the fiscal year, the provincial Auto Fund continued to provide customers with the the lowest auto insurance rates, on average, in Canada. SGI’s Provincial Traffic Safety Fund grant program also awarded $2.9 million in grants to 137 Saskatchewan community projects for road safety improvements. There is $726.9 million in the Rate Stabilization Reserve, after experiencing a reduction of $198.0 million.
A Rate Stabilization Reserve assists with ensuring adequate fiscal resources are available during times that a rate increase is required. The increase is not implemented due to the stabilization occurring from the insurance rate reserve financial flow. For instance, additional insurance earnings due to the existing insurance rates are placed into or held in reserve for future access when required.
SGI CANADA also reported solid financial performance. The national insurance agency achieved a net income of $43.2 million with a return dividend of $18.0 million for the people in the province of Saskatchewan. This result is due to the provincial insurance corporation offering competitive property and casualty insurance products through SGI CANADA and its subsidiaries. The various insurance products were sold through a network of independent insurance brokers.
“SGI CANADA also proudly supported the First Nations University of Canada Spring Celebration Powwow, and the 150th anniversary of Treaty 4 in Fort Qu’Appelle,” stated Minister Harrison. “Additionally, SGI CANADA’s successful partnership with Contractor Connection leveraged a $30,000 donation to the Saskatchewan Indian Institute of Technologies (SIIT).”
SGI CANADA headquarters are located in Regina, Saskatchewan. The corporation has over 2,000 employees and works with a network in excess of 320 independent insurance brokers in over 1,800 locations in Saskatchewan, British Columbia, Alberta, Manitoba and Ontario. The operation network is a vital component of Canadian diversity in entrepreneurship.
In 2015, the province of British Columbia officially entered the SGI CANADA insurance market. Prior to that in 2006, Alberta entered as a branch for the national insurance broker. The province of Manitoba was the first province to become an extension of the SGI CANADA branches in 1993. The province of Ontario joined forces in 2001 and by 2017, Ontario entered the insurance market as SGI CANADA. SGI CANADA has been rated by brokers as a Five-Star Carrier in Insurance Business Canada Magazine’s 2023 survey.
“Looking ahead, SGI CANADA announced a two-year financial commitment of $750,000 to partner with IBAS on the launch of the Indigenous Broker Workforce Program,” said Minister Harrison. “This innovative initiative aims to recruit, onboard and train Indigenous insurance professionals in Saskatchewan, promoting greater First Nations, Métis and Inuit representation within the insurance industry. Each year, 12 brokerages will be eligible for up to $25,000 in funding, supporting recruitment, wage assistance and educational costs.”
Additional SGI CANADA highlights reported for the fiscal year in 2024-25 are multi-faceted. The corporation reports $1.425 billion in gross premium written. In the context of insurance lingo, gross premium is defined as result of the total amount charged for a premium by an insurance company to provide coverage for customers, who are the policyholders. The premium written includes multiple aspects of expenses and actual insurance protection, and profits, associated with the coverage provided. The expenses include administration costs, regulatory fees, commission and an established margin for profits.
SGI CANADA also grew 3.8 per cent in all provinces in addition to $132.9 million in investment earnings and $97.3 million in net catastrophe claim losses.
“SGI CANADA remains dedicated to its core values of integrity, caring, innovation and passion,” stated Minister Harrison. “These values are reflected in the company’s strong customer service, community support and many partnerships.”
SGI CANADA has now embarked on a multi-year, $2.0 million commitment to the Regina YWCA to assist with funding the healing lodge at the new kikaskihtânaw Centre for Women and Families.
