Saskatchewan brokers wait in limbo

Market Watch continued from page 38.

The Insurance Brokers Association of Saskatchewan (IBAS) is in a “wait-and-see mode”, says president Keith Wilson, after the association’s recent conference in Saskatoon. The province’s brokers are still carefully watching the credit unions, who have expressed an interest in retailing insurance, while keeping tabs on the progress of the province’s review of its public insurance program.

During the bank debate, says Wilson, Saskatchewan credit unions asked to be on par with banks, no doubt believing banks would be permitted to retail insurance. Now that the banks are out — at least temporarily — the credit unions, governed provincially, could seek entry on their own. “Right now, our concern is that they just may try,” cautions Wilson.

The Insurance Act review is schedule for some time in the coming year and the re-examination of public insurance will be a top priority. The association has formed a committee to establish consensus on this issue among provincial brokers. “The province is split on where we should be going,” Wilson says. Direct writers have made no headway in the province — Saskatchewan Government Insurance dominates the market — but if the province follows Alberta and Ontario and privatizes insurance, new battles begin, he adds.