After it mailed out rebate cheques, Saskatchewan Government Insurance (SGI) submitted a new proposal for what it calls a “revenue-neutral rate rebalancing.”
In its proposal, filed with the Saskatchewan Rate Review Panel, SGI is looking to adjust rates so that each vehicle group pays a “sufficient” amount to cover the cost of insurance claims for their respective group.
SGI said in a release that the proposal would lead to rate decreases for about 52% of Saskatchewan vehicles with an average annual reduction of $102. Meanwhile, the insurer also proposed rate increases for about 48% of vehicles, with an average annual increase of $96.
The remaining 1% of vehicles will see no change to their rates under SGI’s proposal.
Once approved, the rate changes would take effect next year, January 21, 2022.
SGI also said that rate increases will be capped to reduce rate shock. There will be a maximum cap of $150 per year for an annual premium under $1,000, and a cap of 15% for premiums over $1,000/year.
"SGI is confident that the premiums currently being collected are enough to offer all of our customers coverage in the event of a collision; by rebalancing rates so some vehicle types pay more and others pay less, we can move closer towards rate fairness,” said SGI president and CEO Andrew Cartmell in a statement.
Cartmell added that SGI is committed to “ensuring fairness in rates between vehicle types,” while ensuring that Saskatchewan’s basic auto insurance rates are among the lowest in Canada.
The chief executive also explained how the insurer has managed to avoid rate increases.
“In recent years, we have seen expenses for repairing more intricate and complicated car systems increase,” Cartmell said. “Despite that, we have been able to avoid significant increases in premiums due to a reduction in collisions, injuries and fatalities on Saskatchewan roads, thanks in part to stronger traffic laws, increased enforcement and effective awareness campaigns.”
