Rate review panel recommends approval of SGI's 3.75% rate hike

Rate review panel recommends approval of SGI's 3.75% rate hike

Rate hike came into effect in June

The province's rate review panel has recommended Saskatchewan confirm an interim 3.75 per cent rate hike for Saskatchewan Government Insurance (SGI).

The decision comes after months of public feedback and reports were submitted to the panel in response to a referral by the provincial government.

The seven-person panel ultimately concluded that SGI's request was "necessary, justifiable and [a] step in the right direction for 2026-27."

The panel said the costs of the Saskatchewan Auto Fund, operated by SGI, have increased significantly as the result of higher damage claims, inflation, more complex vehicle repairs and higher expenses.

Sask. government rejects NDP call for special session on proposed SaskPower, SGI rates

At the same time, revenue has not kept pace with projected claim costs and expenses, the panel concluded.

Jeremy Harrison, the minister responsible for SGI, welcomed the decision in a statement on Friday.

"The panel confirmed that financial pressures on the auto fund are real and require attention, but it also highlighted the importance of affordability," he said.

The 3.75 per cent hike went into effect in June.

The hike worked out to an average annual increase for customers of approximately $38, or about $3 per month.

Before June, SGI had not increased its rates since 2014.

Although SGI applied for a second 3.75 per cent rate hike for June 1, 2027, the panel said it was not recommending its approval at this time.

Instead, it wants SGI to submit a new application that should be supported by "complete public evidence including a financial forecast, capital adequacy analysis, consultation outcomes, non-rate actions, and a capital restoration plan."

SGI hikes some deductibles by 35%, increases fee for electric vehicles

The Official Opposition said it's happy the panel did not recommend next year's hike.

Darcy Warrington, the Saskatchewan NDP's SGI critic, said it will provide the province's consumers with a "much-needed break" as people struggle with the cost of living.

"We are demanding that Jeremy Harrison commit publicly today to following the recommendations of the panel and not imposing the second SGI rate hike," Warrington said in a statement.

Harrison said the government will take time to review the report and "ensure any future decisions strike the right balance" between affordability and a strong SGI.

Alexander Quon is the provincial affairs reporter for CBC Saskatchewan. He has been a reporter with CBC Saskatchewan since 2021 and is happy to be working in his hometown of Regina after half a decade in Atlantic Canada. He has previously worked with the CBC News investigative unit in Nova Scotia and Global News in Halifax. Alexander specializes in freedom of information requests and data reporting. He can be reached at: alexander.quon@cbc.ca.