SGI proposes rate increase for auto customers

SGI has proposed a net increase of 3.7% for Saskatchewan Auto Fund rates.
If approved, the rate changes would take effect Aug. 4, 2012.
The public insurer submitted its proposal to the Saskatchewan Rate Review Panel for “rate rebalancing.” Rebalancing takes into account the number of collisions and their severity, including damage, injury and liability costs for each vehicle make and model, an SGI release says.
With the proposed rate increase and rebalancing, roughly half of Saskatchewan vehicle owners would see an increase to their rates (on average, a $7 per month). All other vehicle owners would see a decrease to their rates, averaging $5 a month, or no change.
“We’re seeing rising injury claim costs, specifically for income replacement benefits due to increased wages in Saskatchewan,” said Andrew Cartmell, SGI’s president and CEO.
“We also anticipate declining investment income from lower bond yields, essentially meaning we need to take in more money now to ensure we are able to pay all our customers’ claims later. Finally, there’s a trend in rising auto body repair costs for both parts and labour.”
Cartmell noted that over the past 14 years, the Saskatchewan Consumer Price Index has increased 37%, but the Auto Fund’s rates have only increased 6% over the same period.
The full rate proposal can be found at www.saskratereview.ca.