SGI has submitted a proposal to the Saskatchewan Rate Review Panel (SRRP) for rate rebalancing. SGI is also proposing a net increase of 3.7 per cent for Saskatchewan Auto Fund rates.
Rebalancing helps promote fairness in rating and takes into account the number of collisions and their severity, including damage, injury and liability costs for each vehicle make and model. With the proposed rate increase and rebalancing, roughly half of Saskatchewan vehicle owners would see an increase to their rates, on average $7.00 a month. All other vehicle owners would see a decrease to their rates, averaging $5.00 a month, or no change.
SGI is requesting the rate increase to ensure it's financially positioned to cover all of its operating expenses and claim obligations.
"We're seeing rising injury claim costs, specifically for income replacement benefits due to increased wages in Saskatchewan," said SGI President and CEO Andrew Cartmell. "We also anticipate declining investment income from lower bond yields, essentially meaning we need to take in more money now to ensure we are able to pay all our customers' claims later. Finally, there's a trend in rising autobody repair costs, both for parts and labour."
Cartmell emphasized that SGI is still focused on keeping rates as low as possible.
"Over the last 14 years, the Saskatchewan Consumer Price Index has increased by 37 per cent, while the Auto Fund's rates increased only six per cent over the same period," said Cartmell.
Proposed rates for all vehicles can be found on SGI's website at www.sgi.sk.ca. If approved, the rate changes would be effective August 4, 2012.
The full rate proposal is available on SRRP's website at www.saskratereview.ca. Comments on the rate proposal can be provided to SRRP through its website, or by calling toll free 1-877-368-7075 or emailing [email protected].
