REGINA – SGI has announced it has applied for its first rate increases since 2014.
The provincial insurer has confirmed in a news release that it has submitted a two-year proposal to the Saskatchewan Rate Review Panel, for rate increases of 3.75 per cent in June 2026 and 2027.
The rate changes would take effect at those times. The June increase is to be implemented on an interim basis, but is still subject to the rate review process.
Should SGI get approval for the increases with rate rebalancing, the 2026 rate change would mean as follows, according to their news release :
- Rate increases for about 98 per cent of Saskatchewan vehicles with an annual average increase of $38,
- decreases for about one per cent of Saskatchewan vehicles with an average annual reduction of $8 and,
- no rate change for the remaining vehicles.
The rate change would depend on the type of vehicle the customer would own. Rate rebalancing would be based on such factors as the number of claims and the average cost of claims for each class of vehicle, including damage, injury and liability costs.
SGI is citing inflation pressure from rising vehicle damage claims costs as the reason driving the increase. They point to average costs for damage claims having increased 25 per cent, from $4,880 per claim in 2019-20 to $6,101 per claim in 2024-25.
“Inflation and advanced technology in newer vehicles have caused a sharp rise in the cost of vehicle repairs, and the Auto Fund is no longer taking in enough revenue to cover the cost of claims,” said Penny McCune, President and CEO of SGI, in a statement. “The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven’t been enough to cover costs in recent years.”
SGi also states that while the Rate Stabilization Reserve has allowed SGI to keep rates stable as claim costs have risen, that is not considered a long-term solution.
“SGI hasn’t had a general rate increase in over 10 years. With the sharp jump in auto damage costs, it’s not possible to keep rates flat,” said McCune. “Recognizing the financial pressures Saskatchewan residents are also facing, SGI is proposing two modest increases over two years.”
SGI says their rate proposal will be available on the SRRP’s website at www.saskratereview.ca. Comments can be provided to SRRP through their website or Facebook account, by calling toll-free 1-877-368-7075, or emailing feedback@saskratereview.ca.
