Who is SUMAssure?
We are a subscriber-owned, subscriber-governed insurance program designed for Saskatchewan urban municipalities. Developed by the Saskatchewan Urban Municipalities Association (SUMA), SUMAssure began operating as a reciprocal on October 1, 2009. We have since been dedicated to offering the best possible liability and property insurance at the most cost-effective prices for our subscribers. We are owned by participating municipalities, governed by our SUMAssure Management Board, and administered by Aon Reed Stenhouse.
What is an insurance reciprocal?
SUMAssure is Saskatchewan’s first ever born and raised insurance reciprocal. An insurance reciprocal is a subscriber-owned, subscriber-governed alternative to traditional insurance where subscribers agree to exchange contracts of insurance among themselves and thereby achieve the desired risk pooling. We operate similar to an insurance company in that we issue insurance policies, charge premiums, and pay claims. The major difference is that we are a non-profit company. What is not paid out in losses each year stays with our subscribers as equity. Most of our dollars stay in Saskatchewan and stay with our subscribers. Several other provinces have supported successful reciprocal programs since the 1980s.
What are the advantages of an insurance reciprocal?
There are many advantages to an insurance reciprocal. Some of the main advantages are:
- Ownership and control over your municipal insurance program (subscriber-governed)
- The ability to earn equity in the program
- Reduced rates and lower premiums
- Products and services tailored specifically to municipal risks
- Creative and pro-active solutions
- Protection from external insurance market fluctuations
- Faster and more efficient claims settlement
- Access to risk control education and management programs
- Shared knowledge and expertise
Why are we better?
We are the ONLY urban municipal subscriber-owned and governed insurance program in the province. We not only help subscribers plan and guide their municipality’s well-being, we are also a reciprocal offering – which invests back into the communities with profit sharing. Our valuable risk management services provide loss prevention education and operational tools at no additional cost to subscribers. Unlike other insurance providers, SUMAssure specializes in municipal liability and property insurance. This specialized knowledge results in best in class claims management. Our subscribers are owners who receive outstanding customer service because we listen and customize services that help us meet municipal objectives.
SUMAssure only represents our subscribers and protects only your interests. You will never find us seated on both sides of the table.
Why isn’t every urban municipality subscribing to SUMAssure?
Great question! Only SUMAssure can offer the benefits of ownership to urban municipalities and there is a reason why we continue to grow year after year. There is no reason why all of Saskatchewan urban municipalities can't join SUMAssure!
Shouldn’t our municipality support our local broker?
SUMAssure IS the local broker. Since we are owned and governed by our subscribers, it is impossible to be more local than SUMAssure.
What happens if there is a major catastrophe? Will there be a “cash call” on subscribers?
No, SUMAssure purchases excess insurance over and above the group’s self-insured loss retention (essentially a group deductible). Anything over and above that is transferred to an excess insurance provider.
This structure allows SUMAssure to transfer catastrophic losses to excess insurers while retaining premiums within the program. This structure not only works in theory but has proven itself in reality. Approximately 80 percent of SUMAssure’s losses were transferred to excess carriers while 50 percent of the premiums remained in the program. This builds even more equity for SUMAssure members.
Will it be difficult to switch insurance providers?
Not at all! Switching to SUMAssure is quick and simple. Contact one of the SUMAssure representatives and we’ll help you every step of the way.