IBAS

More than 100 brokers, underwriters, adjusters, and other industry stakeholders converged on Saskatoon this past Thursday, April 12, for the first-ever Saskatchewan Summit of Young Insurance Professionals.

The full-day event featured two panel discussions, as well as presentations from: IBAC Board President Scott Treasure; Tyler Willox, the youngest chairperson in Regina & District Chamber of Commerce history; global social media influencer Michaela Alexis; Prairie Proud Founder Cole Thorpe; and Jaqueline Gallagher, vice president of Saskatchewan and B.C. with the David Aplin Group.

Attendees also raised more than $1,240 through the event’s 50/50 draw — the proceeds from which will go to support the victims and their families of the Humboldt Broncos tragedy.

As you know, in the 2017-18 budget, the Government of Saskatchewan removed a longstanding exemption to the application of the Provincial Sales Tax (PST) on insurance premiums, which came into effect on August 1, 2017.

During the Saskatchewan Party leadership campaign that followed, however, then-candidate and now-Premier Scott Moe vowed to reverse the repeal on life, health, and certain agricultural coverages, retroactive to the time of enforcement.

The team at IBAS has been working closely alongside Ministry of Finance officials over the past several weeks to finalize the details with respect to what specific policies will be subject to PST going forward and how the reimbursement process will be facilitated.

This past Friday, in response to these consultations, the Province released three important documents:

• Information Bulletin: Information for Vendors of Insurance Contracts;
• Information Notice: PST Insurance Exemptions; and
• Information Notice: PST Refunds on Insurance Premiums.

While IBAS highly recommends all brokers and brokerage offices take the necessary time to review these documents in detail, there are a few key highlights to note:

• The PST no longer applies to insurance premiums for the following types of insurance contracts: Individual and group life insurance; individual and group health, disability, accident, and sickness insurance; as well as crop and livestock insurance, hail insurance, and margin/income insurance.
• When an insurance contract or policy includes both taxable and tax-exempt coverages, the value of the taxable and tax-exempt components must be listed and identified separately in the insurance contract with PST applied to the taxable portions. If these amounts are not shown separately in the contract or on the invoices issued pursuant to that contract, with tax applied to the taxable portions, PST applies to the total premium charged to the customer.
• PST collected on any tax-exempt policies must be refunded or credited to customers’ accounts by June 30, 2018. The party that collected and remitted the PST is responsible for calculating and processing the refund payable. That party must then submit a claim for reimbursement to the Ministry of Finance. Again, please note there is no credit or refund of PST paid on insurance policies that include both taxable and tax-exempt coverages when the taxable and tax-exempt coverage values are not listed and identified separately in the contract of insurance.

If you have any questions related to this matter, please contact the appropriate Ministry of Finance official outlined in the accompanying documents. Alternatively, if you have additional questions or feedback, please don’t hesitate to reach out to directly to IBAS CEO Derek Lothian at (306) 380-3765 or derek.lothian@ibas.ca.

SGI CANADA recently announced it has joined the Toronto Insurance Conference’s (TIC) project on real-time data integration between insurers and brokers.

This proof-of-concept, announced in January and entitled The D/X Initiative, focuses on communicating claims information for both commercial and personal lines clients. It follows the nationally-endorsed Insurance Brokers’ Association of Canada Data Exchange (D/X) principles, which use established industry data standards and no surplus middleware or data translation layer.

“Our claims software is different from that of the other insurers involved in this project,” says Dawn Bloom, executive vice-president and chief digital and information officer at SGI CANADA. “We plan to demonstrate how communication can be seamless and interoperable, regardless of the system, if the D/X principles are followed.”

These principles are essential to deriving maximum time, accuracy, and cost saving advantages from already-existing technology, for the benefit of all industry stakeholders, including insurers, brokers, and, most importantly, customers.

More details about The D/X Initiative can be found at www.ticonf.com.

On March 13, the Insurance Brokers’ of Saskatchewan and Saskatchewan Young Brokers Network (YBN) boards of directors converged on Regina for the first-ever Insurance Broker Day at the Legislature — a full day of advocacy and policy discussions that featured meetings with: Six cabinet ministers, including the deputy premier; the leader of the official opposition; senior representatives from the premier’s office and Ministry of Finance; one caucus policy committee; and, several sitting MLAs.

Delegates had the opportunity to communicate the importance of the broker channel, and share thoughts on key files related to the taxation of insurance, forthcoming changes to The Insurance Act and regulations, strengthening consumer protections, as well as overland flooding and wildfires.

Members of the YBN were also formally introduced in the Legislature prior to question period.