Правительство Саскачевана одобрило повышение страховых тарифов на 3,75%, но отложило второе увеличение

The Saskatchewan Rate Review Panel is recommending the provincial government confirm a 3.75 per cent increase to Saskatchewan Auto Fund rates that took effect June 1, while holding off on approving a second increase proposed for next year. The Saskatchewan Auto Fund, administered by SGI, had applied for a two-year rate program that called for overall increases of 3.75 per cent on June 1, 2026, and another 3.75 per cent on June 1, 2027. The first increase was implemented on an interim basis while the panel completed its review. For the average customer, the 2026 increase is expected to amount to about $38 more per year, or roughly $3 per month, although the actual impact will vary depending on vehicle class and other rating factors. Panel says increase is necessary After reviewing the application, public input, updated financial information and a report from independent technical consultants, the panel concluded the 2026-27 increase is necessary and justified. It pointed to higher damage claim costs, inflation, more complex vehicle repairs, rising vehicle values, weather-related losses and increased operating expenses. The panel also said premium revenue has not kept pace with projected claims costs and expenses. According to the panel, the Auto Fund's financial position has weakened significantly since its last full rate application in 2021. The Rate Stabilization Reserve, intended to protect customers from sudden rate increases during periods of volatility, has declined as costs have outpaced premium revenue. The panel also said the Auto Fund's Minimum Capital Test is forecast to fall below both its approved policy target and its internal minimum without corrective action. Related Stories: - Most Saskatchewan vehicle owners will see higher SGI rates - SGI seeks two-year Auto Fund rate increase, review set by Saskatchewan Rate Review Panel Second increase not recommended yet While the panel supports confirming the current increase, it is not recommending approval of the proposed 3.75 per cent increase for June 1, 2027, at this time. Instead, it wants the Auto Fund to submit a new application for 2027-28 with updated public evidence. That application should include a new financial forecast, capital adequacy analysis, consultation results, non-rate actions and a capital restoration plan. The panel said that additional review would give ratepayers and decision-makers a clearer picture of whether another increase is required. More changes recommended The panel also issued a series of recommendations aimed at improving the Auto Fund's long-term financial stability and transparency. Among them, it wants the Auto Fund to adopt a capital margin of at least 6.5 per cent immediately and work toward the current forecast target of 9.2 per cent. It is also calling for a multi-year plan to restore the Rate Stabilization Reserve to its 125 per cent Minimum Capital Test policy target. Other recommendations include using a variable rate cap of up to 15 per cent for vehicle classes with higher indicated rate requirements, reviewing the Safe Driver Recognition program and requiring annual financial and rate adequacy reviews even when no rate change is being sought. The panel also wants future applications to show whether projected savings from SGI's Corporate Transformation project have been realized. Affordability weighed against financial stability The panel acknowledged that higher vehicle insurance rates are an affordability concern for Saskatchewan residents. However, it said keeping rates too low could create greater financial pressure later and lead to larger increases in the future. The panel said its recommendations are intended to balance the immediate impact on customers with the need to ensure the Auto Fund remains financially sustainable. Cabinet will make the final decision on whether to implement the panel's recommendations.