Understanding Namix

Namix is a regulated and formally licensed self-insurance company, the first of its kind in Nunavut, providing property, liability and auto insurance for all members of the Nunavut Association of Municipalities.

Namix was created by NAM executives and brokerage firm Willis Canada, and become an officially licensed company last March. Its clients are NAM members, and its advisory board is comprised of NAM members. Therefore, Namix is owned and operated by its customers, namely the cities and hamlets across Nunavut.

Because Namix collects its premiums from the same “clients” who own and operate it, the money stays “in the family,” instead of being dished out to other independent insurance companies. Also, any profits incurred through the investment of that money remains in the “family bank account.”

Although Namix took over NAM’s insurance affairs April 1, not all cities and hamlets have signed on as clients. The majority of NAM members are in support of the program, but many others still have questions about whether the surplus available to cover claims is adequate.

In the opinion of Keith Peterson, chair of the NAM and mayor of Cambridge Bay, the proposed self-insurance program is “the only option.”

“We looked at other things but the reality is there are no other options,” Peterson said.

“We could have given a cheque April 1 to the insurance guys on Bay Street [in Toronto] and let them raise the deductible to between $1 and $3 million on property. The self-insurance is an opportunity to take control of it ourselves and keep the money.”

Peterson is also chair of Namix’s interim advisory board.