SGI has submitted a plan for a revenue natural insurance rate rebalancing, which will see some peoples’ insurance go up annually, while others will go down.
The proposal, submitted to the Saskatchewan Rate Review Panel, would create a net-zero balance and move closer to each vehicle group paying a sufficient amount to cover the cost of insurance claims for that group, SGI says.
To break it down on consumer levels, this would mean 52 per cent of consumers would see a decrease in their insurance costs, averaging out to about $102 a year per customer. The other 48 per cent would see an increase of around $96 per year. A small, less than one per cent group, would see no change.
To prevent rate shock if a premium is increased, there will be a cap of a maximum of $150 per year for an annual premium under $1,000 and a cap of 15% for premiums over $1,000 a year.
SGI CEO Andrew Cartmell says the current amount of money being collected is enough to cover the ever-changing costs of car repair, but this move is a step towards rate fairness for all drivers insured with them.
He adds they’ve been able to avoid major increases due to a reduction in collisions, injuries and fatalities on Saskatchewan roads through increased enforcement and awareness campaigns.
SGI also notes that this is about fairness long term, as conditions that created the $285 million in rebates from excess capital in its Auto Fund, such as more investment returns and lower collisions with fewer accidents during COVID-19, cannot be expected every year.
They add that the Auto Fund is self-sustaining, and does not pay dividends to, nor receive money from, the government.
The SSRP will now seek public feedback, which can be provided by reaching out to the SSRP on social media, their website, email, at a public hearing being held or by calling 1-877-368-7075.
If approved, the rate changes would take effect on January 21, 2022. They can all be read on SGI’s website.