SGI Canada had its second best year on record in 2005, posting a consolidated profit of more than $35 million, despite record storm costs of over $28 million in Saskatchewan. SGI Canada is the competitive arm of SGI, Saskatchewan's provincial insurance corporation. It sells property and casualty insurance in Saskatchewan, Manitoba, Ontario and the Maritimes, and will begin selling insurance products in Alberta this year.

"SGI Canada continued to expand its presence beyond Saskatchewan's borders," Minister Responsible for SGI Glenn Hagel said. "Forty-five per cent of the company's underwriting profit came from the business written in other provinces, despite the fact that 84% of our premiums are written in Saskatchewan. Each of SGI Canada's out of province operations were profitable in 2005 and continue to spread SGI's insurance risk, earn profits and create jobs in Saskatchewan."

Looking toward the future, SGI Canada plans to write $50 million in premium income over the next five years from the Alberta market alone. "In 2006, SGI will give back $45 million to 520,000 customers through an 8% rebate on the insurance premiums they paid for 2005 coverage. SGI customers will continue to enjoy the lowest auto insurance rates in Canada, with 2006 marking the sixth year in a row with no general increase to rates."

(see headlines)

Associations representing Saskatchewan collision repair shops and the province's government insurer, SGI, have reached a new agreement which sets terms for collision repairs performed in 2006 and 2007. The deal sets different hourly rates for body work, refinish, and frame repairs. The body rate for accredited facilities is $53.92 for '06 and $55.54 for '07. Non-accredited shops receive $35.35 for both years.

The refinish rate is slightly higher at $54.57 and $56.21, while the frame repair hours are paid at $55.94 and $57.62 for 2007.

The agreement also specifies that repairers will be paid a teardown allowance of either 2.5 hours (for jobs in excess of $3000) or 1 hour when SGI requests a "Report Cost" or "Guaranteed Estimate."

As well, the use of CAPA-approved aftermarket body repair parts is extended to newer vehicles under the new agreement. For 2006, vehicles six model years and older are eligible, and in 2007 vehicles 5 model years and older will be eligible.

Representatives from Saskatchewan's government insurance body, SGI, joined the rovince's auto and collision repair professionals at the Fall Conference of the Saskatchewan association of Automotive Repairers (SAAR) on Sept. 16 and 17 in Saskatoon.

John Scissons, executive director of SAAR, reports that senior SGI personnel made themselves available to address concerns, queries and issues pertaining to their understanding of repair industry procedures, guidelines and policies currently under review with SAAR.

Scissons says, "It appears the hostilities and negative attitudes of March 8, 2004 have tempered somewhat, as the tone of the meeting was quite professional and encouraging. Both parties continue to repair the breach resulting from the paint material rollback by SGI."

The two-day conference began with a director's breakfast and meeting to discuss the challenges of the collision repair industry in Saskatchewan. Following a welcome from the mayor of Saskatoon, Jennifer Steeves, executive director of Canadian Automotive Repair and Service (CARS) Council, provided an update of CARS activities, projects and plans for the industry.

Tracey Blouin, Canadian field manager for I-CAR, shared I-CAR's vision, needs and training plans for the industry.

Evening activities included a classic car show and Beatles tribute band.

ISOCYANATES POSE HAZARDS TO AUTOBODY TECHNICIANS

If you are suffering from coughing, chest tightness, fever and fatigue, it may not be a cold. It could be a reaction to highly reactive chemicals found in the hardener of two-part paints and primers called isocyanates.

Gerry Silbernagel, body shop specialist, and James Ferstl, safety specialist, of Ackland Grainger delved into this issue during a safety seminar at the Saskatchewan Association of Automotive Repairers' annual spring conference in Moose Jaw.

Once a worker has been exposed, further contact with isocyanates will cause asthma-like reactions. Direct skin contact may cause rashes, blistering and reddening of the skin. Exposure to the eyes can cause irritation and temporary blurred vision and may even damage the cornea.

That's why all spraying of isocyanate paints must be done in a commercial or engineered paint booth or one that is acceptable to the local fire authority, said Silbernagel. The painter must also wear an air-supplied respirator.

Although primers contain less isocyanate than paints, they must be applied in a paint booth unless there is a separate shop area, which meets Saskatchewan Labour standards. Paint mixing areas must have sufficient ventilation to prevent the build-up of airborne solvent.

An air-supplied respirator is not necessary; however, a face shield should be worn if there is a risk of splashing paint in the eyes. A cartridge-type respirator with organic vapour cartridges can be worn to reduce the amount of paint solvent breathed, and gloves should be worn to prevent skin contact.

"While cleaning spray guns by passing solvent through the gun under pressure, air supplied respirators must be worn since unreacted isocyanate may be released into the work environment. Workers must also wear air-supplied respirators when spraying paints and primers containing isocyanates. Other types of respirators do not provide adequate protection for workers spraying isocyanate paints and primers," Silbernagel said.

Air supplied respirators must be approved by the National Institute for Occupational Safety and Health, the U.S. agency responsible for conducting research and making recommendations for the prevention of work-related disease and injury.

Breathing air for the painter's air-supplied respirator must be clean. A non-oil type electrical compressor specifically designed for providing breathing air is the best choice. Compressed shop air may be used if filters are provided to remove water, oil and the breakdown products of oil.

The compressor must be kept in good repair. The compressor must not be overheated because it will cause carbon monoxide to be produced. Only clear air can be used to feed the compressor. The source of the air must be distant from vehicle exhaust to avoid unacceptable carbon monoxide levels in the air breathed by the painter.

"The breathing air must be supplied to respirators with tight-fitting face pieces at a rate of at least 115 litres per minute (four cubic feet per minute), and of at least 170 litres per minute (six cfm) to respirators with loose fitting face pieces," said Silbernagel.

"The air supply rate should not exceed 425 litres per minute (15 cfm)." The airline feeding the spray gun may be split to also feed the supplied air respirator as long as the air is filtered and supplied at the prescribed flow rate.

Full coveralls and synthetic rubber of PVC gloves are also required when spraying isocyanate paints and primers.

By Pat Rediger. This story originally appeared in the Spring 2002 issue of Collision Quarterly magazine

5/22/2002

Rating agency A.M. Best has assigned an initial financial strength rating of A- (excellent) to Saskatchewan¹s public insurer, Saskatchewan Government Insurance Canada (SGI Canada). A rating of B+ (very good) has also been given to SGI Canada Insurance Services Ltd. and The Insurance Company of Prince Edward Island, of which SGI is the majority owner. The rating of Ontario-based Coachman Insurance Company, purchased by SGI last summer, has been upgraded to B+ (very good).
The rating is based on SGI¹s "dominant market position" as the province¹s public insurer, writing mandatory auto coverage as well as optional personal and commercial policies. It also reflects the company¹s "consistently favorable operating performance", and the support of Saskatchewan¹s Crown Investment Corporation, parent of the government insurer.
"SGI Canada has demonstrated consistent profitability, disciplined underwriting and effective claims management," states an A.M. Best release. "Its strong position in Saskatchewan provides SGI Canada with significant pricing flexibility."
The rating also refers to the economies of scale afforded SGI by "the synergies between the Auto Fund (mandatory auto insurance product) and the competitive activities of the company".
Offsetting the rating are challenges faced by SGI in operating these out-of-province subsidiaries. "While A.M. Best views SGI Canada's efforts to diversify its business favorably, the subsidiaries are, at present, small and operate in difficult markets," the release states.
"The ratings for the three subsidiaries reflect the disparity that exists between SGI Canada's strength in its home province and the very difficult market conditions and adverse operating results that challenge the subsidiaries in Ontario and Prince Edward Island." At the same time, those ratings also take into account the support provided by SGI Canada to its subsidiary operations in terms of capital, investment management, reinsurance buying power, systems and management.

Courtesy of canadianunderwriter.ca

Saskatchewan's public insurer says it will offer a discount to drivers with good track records, and punish those with driving offenses, starting in July of this year.
Saskatchewan Government Insurance (SGI) says the discount program will total about $16 million in discounts in its first year. Set to launch in July to follow the passage of the amended Automobile Insurance Act, the program should apply to about 2 out of 3 vehicle owners in the province, or 350,000 people. The discount will reach a limit of 7% for each driver.
A rating scale will be used, on which drivers will be graded based on their driving record since 1995. So far, SGI reports that an estimated 55% of drivers will receive discounts of 5% or more.
The program also includes fines for drivers with at-fault accidents, certain traffic convictions and traffic-related Criminal Code convictions, such as impaired driving. While drivers will not be fined based on past offenses, they will also not receive any discount when the program takes effect. New fines will be charged in place of driver's license surcharges, and will be charged immediately.
"For a number of years, SGI customers have been asking for a discount on vehicle insurance, and we're happy to be in a financial position to allow us to provide those discounts now," says Crown Investments Corporation Minister Maynard Sonntag.
That is because last year the public insurer was able to erase its "auto fund" deficit. At one time, the deficit in the "rate stabilization reserve" had reached $127.9, but last year an $18.8 million surplus was achieved.(courtesy of Canadian Underwriter)

AUTOBODY ASSOCIATION PROMOTES ITSELF

This past May, the Saskatoon Auto Body Association (SABA) participated in a tri-province career fair hosting over 3000 First Nations student from Alberta, Saskatchewan and Manitoba.

The career fair was held at the local Saskatoon Exhibition Trade and Conference Center. Over 100 trades and professions had show booths to promote their particular occupation ranging from hair styling to the police service.

Howard Crittenden, president of SABA, organized a number of shops from the city to provide volunteers to man the auto body booth each day. The local Saskatchewan Government Insurance salvage division donated a wrecked 1990 Ford Tempo to be used in the display. The car was set up as if on a frame machine, all gauged and measured. Several of the panels were removed so the students could see the inner workings of the car.

This action is directly in response to concerns that the industry is not doing enough to promote itself. Crittenden stated that "the industry has so much to offer young people, they can actually earn while they learn." SABA plans to make the car display available to the provincial autobody association (SAAR) to be used in other cities throughout Saskatchewan.

December 2001

Proposed changes in Saskatchewan's auto insurance system recognize that provincial consumers want more choice and a reward program for safe driving, says Larry Fogg, president of Saskatchewan General Insurance.

Consumer feedback earlier this year prompted the changes, which include the choice between no-fault and tort products, improved no-fault injury insurance and a safe driving reward program.

By the end of next year, drivers will be able to opt out of the current no-fault Personal Injury Protection Plan and purchase a tort policy that SGI calls "alternative injury coverage". This option includes less extensive injury benefits but the ability to sue for pain and suffering, subject to a $5000 deductible, where there is an at-fault party. Premiums for both no-fault and tort coverage will initially be the same, but Fogg says that could change after SGI examines the claims experience.

"It really depends on how many people opt-out of no-fault", he says " If it's 40 per cent, we should have good claims data after one year. If it's five per cent, it will take longer to adjust rates. SGI recently announced increased medical and rehabilitation benefits to $5 million and increased permanent impairment benefits to $175,000.

A reward program for safe drivers will also come into effect July 1, with 90% of drivers eligible for discounts. (courtesy Canadian Insurance)