SASKATOON, Sask. — Saskatchewan Government Insurance’s decision to limit its rate increase to 3.75 per cent this year is intended to balance affordability with the long-term sustainability of the Crown insurer’s Auto Fund. Still, it acknowledges the fund remains under pressure from rising claims costs.
SGI will move forward with a 3.75 per cent overall Auto Fund rate increase, with rate rebalancing, effective June 1, 2027, following recommendations from the Saskatchewan Rate Review Panel. The government has also formally approved the 3.75 per cent increase for 2026, confirming the increase that took effect on June 1, 2026.
The Auto Fund remains under significant pressure, with record claims again this summer. The panel's report acknowledged the significant financial challenges facing the Saskatchewan Auto Fund, including rising claims costs and inflation. It recognized the need for action to support the Auto Fund's long-term sustainability.
Minister responsible for SGI Jeremy Harrison, in a news conference on Friday, Sept. 4, at the Saskatoon Cabinet Office, said the province considered the financial position of SGI’s Auto Fund, which was designed to be self-sustaining, before rejecting a recommendation that would have resulted in a roughly 10 per cent increase this year.
“We have really worked hard to find the right balance between affordability and sustainability, and that is reflected in the two-year rate program,” said Harrison, who added that the Auto Fund operates on a break-even basis over time, with premiums collected intended to cover claims paid out.
He said fluctuations between revenues and claims are managed through the fund’s rate stabilization reserve, which reached more than $1.2 billion during the COVID-19 period before declining in subsequent years, largely due to higher vehicle repair costs.
Harrison pointed to the growing amount of technology packed into modern vehicles, saying the average repair cost has risen from about $5,000 in 2020 to nearly $8,000 today, an increase of almost 50 per cent over six years.
“The challenge has been balancing out over time that premium and claims side. It really has been very, very significant,” Harrison said, adding that higher repair costs have contributed to the pressure on the rate stabilization reserve.
The Rate Review Panel supported a 3.75 per cent increase for the first year of a proposed two-year program but also recommended a 6.5 per cent capital margin requirement on top of that increase, which Harrison said would have pushed the total increase to about 10 per cent.
Harrison confirmed the government would proceed with 3.75 per cent this year and 3.75 per cent next year, acknowledging that avoiding the larger increase now could create pressure to take a bigger step later if the Auto Fund’s financial position deteriorates.
He said the government will closely monitor the rate stabilization reserve. At the same time, SGI is working on ways to increase revenue, identify efficiencies and pursue non-rate options to strengthen the fund while ensuring the Auto Fund is sustainable in the long term.
“We are going to be looking at non-rate options as well. And we are going to be looking at efficiencies in the company. We are going to continue to keep a very, very close eye on the rate stabilization,” said Harrison, who added that the government is committed to keeping insurance rates affordable in the province.
Transparency and accountability
Highways and SGI shadow minister Darcy Warrington called for greater transparency and accountability from the provincial government over its decision to proceed with a 3.75 per cent SGI rate increase in 2027, as Saskatchewan families are already struggling.
Warrington, the Saskatchewan NDP’s Saskatoon-Stonebridge MLA, said residents are already grappling with the high costs of groceries, gasoline, power and other household expenses, saying the government should have listened to the SRRP’s recommendation against the increase in 2027.
He questioned why the government could not examine SGI’s budget more closely to identify potential savings before asking drivers to pay more, adding that Opposition members have repeatedly sought information to determine where savings could be found but often received heavily redacted documents.
“The people of Saskatchewan deserve answers. They deserve transparency and accountability. When we ask for documents, whether it’s for schools, whether it’s for SaskPower, we’re consistently shown darkened documents with no answers,” said Warrington.
He said the increase will affect drivers who have followed the rules and maintained strong driving records, arguing that the government should consider adjustments that would not require higher rates. He said the Rate Review Panel’s recommendations should be taken seriously rather than dismissed.
“Licensing, registration, those sorts of things — people that are following all the rules and have excellent driving records — they’re going to be affected by this. And you don’t think that’s right,” said Warrington, who also raised concerns about SGI’s broader financial position.
He noted that the SRRP expressed concerns about the Crown corporation and questioned whether the proposed increases will be sufficient to address its financial challenges, since residents have invested in SGI for generations and deserve an explanation of the government’s plan before paying more.
“This isn’t a one-off. We need to take a closer look at that accountability and transparency,” Warrington said, pointing to financial pressures at SaskPower and other Crown corporations.
