Saskatchewan’s Rate Review Panel has issued its report and recommendations for the rate increase proposed by SGI.
The panel recommends that the interim overall rate increase of 3.75 effective June 1, 2026, be confirmed. The Panel says there is evidence that the rate increase is necessary, warranted and reasonable based on higher damage claims costs, driven by inflation, rising vehicle values, and the technical complexity of modern vehicles. As well, administration and operating costs have increased over the past several years while at the same time, premium revenue has not kept pace with these cost pressures and is now below the cost of insurance claims.
However, the panel did not approve the proposed rate increase of 3.75 per cent which was slated to go into effect June 1st next year and instructed that there needed to be an updated application for proposed rate increases for 2027-28 and 2028-29.
In its report the Panel also rebuked the government for implementing rate increase before the Panels review and final report was issued. It noted that such an action threatens the governance process and from the view of the public cast doubts on the effectiveness and usefulness in having a Panel report to the Minister.
A statement was issued by Jeremy Harrison, Minister responsible for Saskatchewan Government Insurance:
The Panel confirmed that financial pressures on the Auto Fund are real and require attention, but it also highlighted the importance of affordability. We will take the time to review the report and ensure any future decisions strike the right balance between protecting ratepayers and maintaining a strong, sustainable Auto Fund.
