Saskatchewan Government Insurance (SGI) is in the process of acquiring a $3 million stake in Alberta-based Nuera Insurance.
The government insurer is set to acquire 15% of Nuera Insurance; SGI hopes to develop its own technology by learning a thing or two from the online insurance broker.
“We were interested in that because of the technology that they were developing and the fact that we wanted to gain experience in working in an online environment with a broker,” SGI president Andrew Cartmell told CBC News. “And access to that technology and ownership of it, at least in part, might help our brokers here in Saskatchewan down the road or at least some day.”
Initially, SGI’s financial contribution was a loan to help Nuera develop technology. The insurer later acquiesced to Nuera’s request to convert the amount to equity.
Cartmell noted that while it is rare for brokers to develop purpose-built software, Nuera’s software could be licensed and sold to brokers in other provinces. SGI would then be able to offer it to brokers in Saskatchewan.
“It allows the consumer to basically enter a few questions and bind a policy immediately and that’s the part that’s unique in our world,” he added.
The deal is expected to close by the end of April.
