Saskatchewan Government Insurance - History

History

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. 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, the first president, sold the first policy – Fire Policy Number 1 – to Minister O. W. Valleau on May 1, 1945 and appointed its first broker, Oscar Sawby of Maple Creek, on May 17. 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.

The introduction of a state-run automobile insurance was controversial. For the first few years of its existence, other provinces refused to recognize SGI policies as legitimate. One result of such non-recognition was that SGI-insured drivers involved in an accident in Manitoba were either detained or required to post a bond because Manitoban authorities essentially considered them to be "uninsured" drivers.