Saskatchewan public insurer forms committee to review motorcycle rate issue

Saskatchewan General Insurance, the province’s public auto insurer, is forming a formal Motorcycle Review Committee (MRC) to look at motorcycle insurance rates, after facing backlash on proposed increases.

The MRC will be made up of motorcycle drivers, dealers, safety training providers, health care professionals and insurance brokers, SGI said. The group will meet in May and an independent facilitator will lead the discussions.

“We welcome this opportunity to work with the motorcycle community and all affected stakeholders in finding effective solutions to the issues with motorcycle safety, rating and insurance coverage,” Andrew Cartmell, president and CEO of SGI said in a statement. “While rates are about dollars and cents, the biggest issue at hand is saving lives and preventing injuries.”

The initial MRC meetings will be used to create a document that will be shared with the public in June to gather more input. Based on feedback, SGI will then provide recommendations to the government by this fall, it said in its statement.

Read more: Decision on motorcycle premiums looming in Saskatchewan

In February, SGI had submitted a rate change proposal to the Saskatchewan Rate Review Panel, which would have meant increases to motorcycle insurance rates would not be capped.

The government, however, then directed SGI to amend the proposal to cap such increases at 15% and consult with stakeholders on the issue. 

SGI had said that as a group, motorcycle rates are significantly lower than what’s required to cover their claims costs, and that injury claims costs for the “recreational” vehicles were excessive.

If approved, the proposed rate changes would take effect Aug. 1.

Ideas and suggestions regarding motorcycle safety programming, rating structure and injury benefit levels can continue to be submitted to motorcycles@sgi.sk.ca. Feedback on SGI’s current rate proposal, including comments on proposed increases for motorcycle rates, should be directed to the Saskatchewan Rate Review Panel.