SGI to acquire 15% of online broker tech firm with $3 million stake
Published: April 26, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
Saskatchewan Government Insurance (SGI) has confirmed it is close to acquiring part of Alberta-based Nuera Insurance. The public basic auto coverage monopoly company of Saskatchewan will take a $3 million stake of the company.
Through the deal, the government insurance provider will receive 15% of the Nuera Insurance business. The company says it will leverage the online brokers to help enhance its own technology solutions.
“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.”
SGI’s involvement in Nuera was initially thought to be a loan that would help the company develop its technology. However, Nuera wanted the loan to be converted into an equity purchse, to which SGI agreed.
Cartmell says Nuera has taken a rare path for brokers, who typically do not create their own software solutions. Because of this, the tech could be licensed and sold to other brokers across Canada.
“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.
SGI says the deal is expected to be wrapped by the end of this month.