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NUNAVUT/INUVIK - Nunavut Insurance is considering opening a branch in Inuvik.

Two representatives of the Winnipeg-based company, formed in 2002 to provide insurance for businesses and residents throughout Nunavut, recently attended the Inuvik Petroleum Show to gage the community's interest in their services.

Account executive Colin Matychuck, left, and chief operating officer Keith Jordan, of Nunavut Insurance, say the company is giving serious thought to opening a branch in Inuvik, which would be its first in the NWT. - Guy Quenneville/NNSL photo

"Inuvik is absolutely a location we'd like to consider in the future," said Keith Jordan, chief operating officer.

"Opportunity exists in the North. Not just in Nunavut, where we also have locations."

Pointing specifically to the mining as well as oil and gas industries, he added there's going to be more potential as commodity prices continue to surge.

The brokerage's first office opened in Rankin Inlet in 2003, and has grown into a great success, according to account executive Colin Matychuk, who also visited Inuvik.

"We do phenomenally well in Rankin Inlet," said Matychuk. "It's by far our strongest centre. Probably 40 per cent of our annual revenue comes from it."

A branch in Iqaluit followed last year.

But several visits to Inuvik confirmed that the hub of the Beaufort-Delta region was an ideal spot for expansion in the NWT, said Matychuk.

"Inuvik is good because, unlike Yellowknife, the market is not saturated," he said. "Yellowknife is served by, I believe, three or four local firms. So it's very hard to get a market share. Here there's nobody. It's all done by telephone."

Matychuk received a lot of positive feedback from Inuvik residents regarding the possibility of a branch.

"Everywhere I went, people seemed to always be mentioning that it would be great to have someone."

Stalled as it is, the long-gestating Mackenzie Gas Project is a major factor in the company's assessment of Inuvik's commercial viability, added Matychuk.

"The pipeline doesn't just benefit the oil and gas industry; it trickles down to everybody," he said.

"From our perspective, whenever there is infrastructure or construction involved, we reap fairly good benefits from it. You're required to have insurance to cover the project."

While the branch would provide services like auto insurance for individuals, it's the coverage for businesses that would make it potentially lucrative.

"In our industry, commercial business is the bread and butter," said Matychuk. "Auto insurance, to be completely honest, is a loss leader - you won't make money on it. If you're ever going to open a branch anywhere, unless you have the support of the commercial businesses of the community, you probably won't make a good go at it. They're the ones that pay big premium dollars."

James Firth, general manager of Mackenzie Valley Construction, confirmed there are no insurance companies actually located in Inuvik.

"It's nice to be able sit down with someone in their office," said Firth. "I think most people would feel so.

"That way, the provider really gets to know your business, by being in the community, and you know if you're getting the best deal or not."

When it comes to dealing with his insurance provider, he communicates via fax and e-mail - hardly a substitute for one-on-one service, he added.