May 16, 2003 by Canadian Underwriter
The Saskatchewan government has opened the door for that province’s credit unions to own or invest in insurance agencies and brokerages.
Credit Union Central of Saskatchewan is applauding the changes to “The Credit Union Regulations, 1999”.
“We are very pleased about this regulatory change,” says Sid Bildfell, CEO of Credit Union Central of Saskatchewan. “It means that credit unions will be able to add insurance to the range of services they offer so that members can better protect their financial security.”
He adds that the change “levels the playing field” between credit unions and other financial institutions offering insurance.
Credit unions, which are locally owned and operated, will have to decide if and how they want to take advantage of the new regulations.
“Our government’s response to the changing environment of financial services is to provide the legal framework that will let community-based credit unions compete effectively,” Saskatchewan Justice Minister Eric Cline says. “Our future is wide-open because this government is providing an environment for rural economic development in Saskatchewan.”
He notes that the changes do not allow credit unions to sell insurance at their branches, but to own brokerages, just as banks are allowed to under federal legislation.