Public insurer applies for first rate increase since 2014

Saskatchewan Government Insurance (SGI) has applied for a two-year rate increase this year and next, its first such proposal since 2014.

The two-year proposal to the Saskatchewan Rate Review Panel (SRRP) includes rate increases of 3.75% in June 2026 and 2027, SGI says in a Jan. 2 press release. The June 2026 increase will be implemented on an interim basis, but will still be subject to the public rate review process.

“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,” says SGI president and CEO Penny McCune. “The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven’t been enough to cover costs in recent years.”

To move closer to claims costs, SGI proposes a “3.75% increase on each of June 1, 2026 and 2027, resulting in an average annual increase of $38 the first year.”

The public insurer notes that over the last 20 years, the Saskatchewan Consumer Price Index has increased 57.7%, while the Auto Fund’s rates, including capital amounts, increased by only 5%.

Motorcycles, urban taxis excluded

Rate increases would be capped to reduce the impact on vehicle owners. Motorcycles and urban taxis will be excluded from year one of the rate program while SGI consults with those groups to address industry-specific concerns, the release says. Media reports have pointed to concerns related to rates, safety and competition from rideshare companies.

If SGI receives approval for the increases with rate rebalancing, the 2026 rate change would mean:

• Rate increases for about 98% of Saskatchewan vehicles, with an annual average increase of $38
• Rate decreases for about 1% of Saskatchewan vehicles, with an average annual reduction of $8
• No rate change for the remaining vehicles.

Rate rebalancing considers the number of claims and average cost of claims, including damage, injury and liability costs, for each class of vehicle. This means each customer’s rate change would depend on the type of vehicle they own.

According to SGI, the average cost for vehicle damage claims has increased 25% from $4,880 per claim in 2019-20 to $6,101 per claim in 2024-25.

“The Rate Stabilization Reserve has allowed SGI to keep rates stable as claim costs have risen, but that’s not a long-term solution,” the public auto insurer says.

“SGI hasn’t had a general rate increase in over 10 years,” McCune adds. “With the sharp jump in auto damage costs, it’s not possible to keep rates flat. Recognizing the financial pressures Saskatchewan residents are also facing, SGI is proposing two modest increases over two years.”

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Despite the proposed increases, Saskatchewan drivers benefit from some of the lowest auto insurance rates in Canada, and this would continue to hold true even with the proposed rate increases, SGI says.

Proposed rates for all vehicles can be found on SGI’s website at https://sgi.sk.ca/2026-rates. Comments on the rate proposal can be provided to SRRP through its website or Facebook account, by calling toll-free 1-877-368-7075 or emailing feedback@saskratereview.ca.

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.