Benefits of the SUMAssure program, not available with traditional insurance carriers, include:
- SUMAssure is a non-profit company that is not subject to federal or provincial income taxes. We have seen a 24 percent return on equity in the first 3 years of operation.
- SUMAssure is owned by the 162 subscribing members who will share in the profits of the program as it grows.
- Transfer catastrophic losses to excess insurers while retaining premiums within the program – in the first 3 years, approximately 80 percent of the losses were transferred to excess carriers while 50 percent of the premiums remained in the program. This builds equity for the subscribing members.
In addition to the above benefits, the program was also designed to provide the following:
- Member Equity – As a member in the SUMAssure Reciprocal, you would have the opportunity to build equity inside the program. The percentage of equity per member will vary based on the size of the community, values insured and the insurance premiums that they pay.
- Risk Control Services: At no direct cost to SUMAssure's individual subscribers, SUMAssure has undertaken one of the largest risk management initiatives ever in the Province of Saskatchewan. During the 2013 calendar year, SUMAssure engaged professional risk control engineers to inspect and survey 125 facilities across the province. These locations are comprised of every facility on SUMAssure's total statement of values (presently over $1 billion) which had a value in excess of $2,000,000.
Under SUMAssure, every municipality has a stake in these surveys; not just the municipalities having their facilities being inspected. The information is compiled into a central database for a trend analysis purpose so that we may better direct our efforts to prevent losses. Information is categorized by municipality/facility type/severity/frequency, etc. so that all subscribers benefit from each survey. Access to centralized loss control information is possibly our biggest strength and we are getting better and more sophisticated all the time.
SUMAssure's philosophy is to try to prevent losses to property and the general public rather than to simply collect premiums and pay out claims. These types of risk management initiatives will be ongoing.
- Long term, stable and cost effective insurance coverage – The program has been designed to try and minimize rate instability typically found within regular insurance markets. After 4 years of operation, member’s rates are on average 6.7 percent lower than they were 4 years ago. As the program evolved, we were able to take a look at all members and have introduced rate capping based on Village grades and many communities have seen additional savings in their insurance rates on top of the average rate reductions indicated above.
- Broadest coverage available – As our program is designed for municipalities, we use customized wordings to ensure optimized coverage with fewer restrictions than traditional insurance. SUMAssure's mandate was to provide equal or better coverage than what was being offered in the traditional insurance marketplace. More important than what we do cover, is what we don't exclude. Your policy contains many exclusions and warranties that limit or eliminate coverage under surprising circumstances that we view as everyday operations of municipalities. SUMAssure only represents municipal entities and we, therefore, do not act surprised when a municipality acts like a municipality.